Encore Capital Group (ECPG) investor relations material

Executive summary

• Achieved record Q1 2026 collections of $718 million, up 19% year-over-year, and net income of $86.2 million, up 84%, driven by strong U.S. performance and operational efficiency.

• Earnings per share doubled to $3.86, with total revenues rising 21% to $475.4 million.

• U.S. segment (MCM) delivered record collections of $556 million, up 23% year-over-year; European segment (Cabot) saw collections rise 7% to $161 million.

• Performance was supported by robust portfolio supply and capital deployment in the U.S., while European deployment was constrained by competition.

• Continued investment in technology, digital payments, and operational enhancements supported results.

Financial highlights

• Portfolio purchases totaled $363 million globally, with $316 million in the U.S. and $47 million in Europe.

• Average receivable portfolios increased 14% to $4.4 billion.

• Operating expenses rose 11% to $291.4 million, below the growth in collections.

• Adjusted EBITDA reached $196.6 million, up from $140.5 million in Q1 2025.

• Cash efficiency margin improved to 60.9%, up from 58.3% last year.

Outlook and guidance

• Full-year 2026 guidance: portfolio purchases expected between $1.4 billion and $1.5 billion, collections to increase 8% to $2.8 billion, and EPS to rise 19% to $13.00.

• Interest expense and other income projected at $300 million; effective tax rate expected in the mid-20% range.

• Sufficient liquidity to fund operations for at least the next twelve months, with $791.3 million available under the Global Senior Facility.