ECPG earnings analysis
What we found in ECPG's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Encore Capital Group saw impressive growth in Q1 2026 with revenue reaching $475.4 million, surpassing expectations of $447.4 million, and EPS reported at $3.86, well above the anticipated $2.88. This marks a significant year-over-year increase compared to just $1.93 in Q1 2025. The company has raised 2026 collections guidance to approximately $2.8 billion, driven by robust collection performance and operating efficiencies.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue Growth Exceeds Expectations
- Revenue for Q1 2026 reached $475.4 million, exceeding estimates by 6.3%.
- Significant EPS Increase
- Diluted EPS of $3.86 is a 99.5% increase compared to $1.93 in Q1 2025.
- Collections Guidance Raised
- Management raised 2026 collections guidance to approximately $2.8 billion.
- Strong Operating Cash Flows
- Net cash provided by operating activities improved to $82.3 million from $45.3 million.
- Improved Operating Margins
- Operating margin increased to 38.7%, up from 32.9% year-over-year.
- Decreased Interest Expense
- Interest expense rose only slightly to $73.1 million, reflecting a manageable debt profile.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Increased Operational Costs
- Total operating expenses increased by 10.6% to $291.4 million, driven majorly by legal collection costs.
- Market Dependence for Debt Purchases
- The reliance on a stable supply of debt portfolios amidst regulatory pressures could impact future growth.
- Foreign Currency Risk
- Fluctuations in foreign exchange rates may adversely affect profitability from operations abroad.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $3.86
- Gross margin
- 82.0%
- Operating margin
- 38.7%
- Segment
- Domestic (U.S.): $351.7M
- Segment
- International (UK): $88.5M
- Segment
- Other European countries: $33.4M
What they said about what is next.
Revenue guidance for 2026 remains unchanged at $1.4 to $1.5 billion, with EPS guidance raised to $13.00.
The filing reads better than the one before it.
What came before.
- 10-K · February 25, 2026
- Encore Capital reported a strong 2025 with total revenues of $1,768,802,000 (up 34.4% vs. $1,316,361,000 in 2024) driven by higher receivable portfolio balances and collection outperformance. Adjusted EBITDA rose to…
- 10-Q · August 6, 2025
- Encore Capital reported a strong Q2 2025: revenue of $442.122M (vs $355.285M in Q2 2024) and diluted EPS of $2.49 (vs $1.34). Operating income rose to $150.733M, implying an operating margin of ~34.1%, driven by higher…
- 10-Q · May 7, 2025
- Encore Capital reported a strong Q1 with revenue of $392,775,000 (up $64,389,000 vs Q1 2024) and diluted EPS of $1.93 (vs $0.95 in Q1 2024). Operating income rose to $129,343,000, yielding an operating margin of ~32.9%…
- 10-K · February 26, 2025
- Encore Capital reported full-year revenue of $1,316,361,000 in 2024, up 7.7% from $1,222,680,000 in 2023, driven by higher portfolio basis and debt purchasing revenue. The company generated Adjusted EBITDA of…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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