Encore Capital Group (ECPG) Corporate presentation summary

Business overview and strategy

• Operates in the U.S. and Europe, purchasing and collecting charged-off consumer debt, with over 7,350 employees in 8 countries and more than 25 years in business.

• Returned $16B to the credit ecosystem through portfolio purchases and achieved ~$30B in collections since inception.

• Focuses on market segments with the highest risk-adjusted returns, innovation, and balance sheet strength.

• Main operating units are Midland Credit Management (U.S.) and Cabot Credit Management (Europe).

2025 financial performance

• Portfolio purchases reached $1.41B, up 4% from 2024, with U.S. purchases up 18%.

• Collections totaled $2.59B, a 20% increase year-over-year, with U.S. collections up 24% and European collections up 9%.

• Net income was $257M, up $396M from the prior year, and EPS rose to $10.91.

• ROIC improved to 13.7%, up 620bps, and leverage decreased to 2.4x.

• Repurchased 9% of shares outstanding for $89.5M.

Operational highlights

• U.S. portfolio supply remains robust due to high charge-off and delinquency rates, with revolving credit balances at $1.33T and charge-off rates at 4.17%.

• MCM achieved record portfolio purchases and collections, driven by technology deployment and digital enhancements.

• Cabot delivered solid performance, with collections up 9% but portfolio purchases lower due to prior year spot-market activity.