Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 ___________________________________________________________________________________ FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2022 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________to__________. COMMISSION FILE NUMBER: 000-2648 ...

Financial Data and Key Metrics Changes - In 2021, global collections reached a record $2.3 billion, up 9% compared to the prior year [36] - Revenues increased by 8% to $1.6 billion in 2021, with US revenues up 12% to $1.1 billion [37] - The leverage ratio improved to 1.9x by the end of 2021, down from 2.4x a year ago [29] Business Line Data and Key Metrics Changes - The MCM business in the US saw collections grow 7% to an all-time high of $1.6 billion [20] - Cabot's collections in Europe reached a record $645 million in 2021, up 16% compared to the prior year [36] - Portfolio purchases in Q4 totaled $183 million, up 44% compared to Q4 of 2020 [35] Market Data and Key Metrics Changes - Portfolio purchases globally were $665 million in 2021, slightly exceeding the previous year's total of $660 million [10] - The US and UK markets experienced lower supply due to fewer charge-offs, but indications of credit normalization are beginning to emerge [11][17] Company Strategy and Development Direction - The company focuses on a three-pillar strategy: market focus, enhancing competitive advantages, and maintaining a strong balance sheet [16][25][28] - The company plans to increase portfolio purchases in 2022 as credit card balances rise and lending normalizes [44] Management's Comments on Operating Environment and Future Outlook - Management noted that consumer behavior is starting to normalize, with rising credit card spending and expectations of increased charge-offs [67] - The company anticipates a continued normalization in the collections environment compared to the exceptional levels seen in 2021 [44] Other Important Information - The company repurchased approximately 23% of its outstanding shares for $390 million in 2021 [31] - The effective tax rate for Q4 was lower than normal at 11%, with expectations for 2022 to be in the low to mid-20s [35] Q&A Session Summary Question: Accounting question regarding recoveries line - Management acknowledged the challenges in forecasting due to unusual consumer behavior during the pandemic and indicated that forecasts are continuously adjusted based on the best available data [46][49] Question: Capital actions and returns - Management confirmed that they will continue to return capital to shareholders while maintaining a strong balance sheet and liquidity [52][54] Question: Normalization of collections - Management explained that they are adjusting forecasts based on the best estimates and that excess recoveries are being monitored closely [56] Question: Purchase environment and supply - Management expressed optimism about the purchase environment, noting that banks are reporting higher spending and charge-off volumes are expected to rise [66][67] Question: Operating expense structure - Management indicated that while the expense structure is largely in place, there will be some upward pressure on expenses as COVID-related savings normalize [69] Question: Pricing dynamics in the US and UK - Management clarified that the price increase is due to supply-demand dynamics rather than a change in the mix of portfolios [72][74] Question: Tax rate expectations - Management suggested that a tax rate in the mid to low 20s would be more appropriate going forward [76] Question: Interest expense and debt structure - Management provided details on the fixed versus floating rate debt, indicating that approximately 87% of their debt is fixed [78] Question: Third-party servicing as a strategic asset - Management highlighted the importance of servicing in their business model, particularly in Europe, and confirmed ongoing investments in this area [81][83]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 ___________________________________________________________________________________ FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2021 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to . COMMISSION FILE NUMBER: 000-26489 ENCORE CAPITAL GROUP, ...

Financial Data and Key Metrics Changes - In Q3 2021, collections were $567 million, up 5% compared to Q3 2020, with MCM collections growing 4% to $407 million [19][20] - Revenues increased to $413 million from $404 million in Q3 2020 [20] - The leverage ratio improved to 1.8x, down from 2.4x at the beginning of the year, and is now below the target range of 2x to 3x [7][17] Business Line Data and Key Metrics Changes - MCM's legal channel collections grew 22% compared to Q3 2020, reflecting the reopening of courts [19] - Cabot's collections in Europe increased by 10% to $155 million compared to Q3 2020, with year-to-date portfolio purchases totaling $197 million [14][19] - Portfolio purchases in Q3 were $168 million, nearly matching the $170 million from the same period last year [4][19] Market Data and Key Metrics Changes - The U.S. remains the largest market, with MCM delivering strong performance despite lower supply due to fewer charge-offs [12][19] - In Europe, collections performance is returning to normal levels, with a 10% increase in Q3 collections compared to the previous year [14] - The market is experiencing upward pressure on pricing due to low supply and increased competition [27][28] Company Strategy and Development Direction - The company is focused on maintaining a strong balance sheet and executing a disciplined capital allocation strategy, including a $300 million share repurchase plan [6][7] - A $300 million tender offer is being launched to return capital to shareholders, reflecting confidence in future performance [8][9] - The company aims to capitalize on future opportunities as charge-offs are expected to rise, positioning itself for increased portfolio purchases [10][46] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate uncertainties and execute its strategy effectively [22] - The company is prepared for the new CFPB rules, which will modernize consumer communications and enhance engagement [13][39] - Management believes the current market conditions indicate a potential bottom in purchase volumes, with expectations for increased charge-offs in the future [42][46] Other Important Information - The estimated remaining collections at the end of Q3 were $7.9 billion, down 7% from the previous year [20] - The company has $130 million of non-client cash on the balance sheet and $864 million in available capacity under its global RCF [20][21] - The company has a strong cash generation capability, with a 15% increase in cash generation over the past 12 months [15][16] Q&A Session Summary Question: Funding for the $300 million tender - Management indicated that the funding would likely be a mix of cash on hand and incremental borrowing, with $130 million in cash available [24] Question: European market supply and pricing - Management noted that supply is constrained in Europe, leading to upward pressure on pricing, but expects some increase in charge-offs in the future [27][28] Question: Impact of the sale of the Colombia and Peru business - Management confirmed that the loss from the sale would not impact future collections as those portfolios are no longer part of the business [31] Question: U.S. competition dynamics - Management described the U.S. market as stable, with traditional sellers still active, but noted that charge-offs are at a low point [32][33] Question: Insights on consumer savings and potential supply - Management acknowledged a decline in consumer savings and rising early-stage delinquencies, which could indicate a future increase in supply [49] Question: European market supply outlook - Management indicated that while the U.K. market tends to cycle quickly, Europe is starting to see banks address historic NPL levels, which may lead to increased supply [51]

Financial Performance - Total revenues for the three months ended September 30, 2021, were $412,624, an increase from $403,676 in the same period of 2020, representing a growth of 0.2%[9] - Net income attributable to Encore Capital Group, Inc. stockholders for the three months ended September 30, 2021, was $83,566, compared to $55,107 for the same period in 2020, reflecting a year-over-year increase of 51.7%[10] - Earnings per share attributable to Encore Capital Group, Inc. for the three months ended September 30, 2021, were $2.76 (basic) and $2.66 (diluted), compared to $1.74 (basic) and $1.72 (diluted) in the prior year[9] - Comprehensive income for the three months ended September 30, 2021, was $82,979, compared to $86,214 in the same period of 2020, reflecting a decrease of 3.0%[10] - Net income for the three months ended September 30, 2021, was $83,566, compared to $54,650 for the same period in 2020, representing a year-over-year increase of 52.7%[12][13] - Total revenues for the nine months ended September 30, 2021, reached $1.257 billion, up 12.4% from $1.119 billion in the same period of 2020[75] - The company reported a significant increase in collections from 2020 to 2021, with a rise of $65.91 million in changes in recoveries[106] Assets and Liabilities - Total assets decreased to $4,549,966 as of September 30, 2021, from $4,864,523 as of December 31, 2020, indicating a decline of 6.4%[6] - Borrowings as of September 30, 2021, were $2,796,224, down from $3,281,634 as of December 31, 2020, a reduction of 14.7%[6] - As of September 30, 2021, total equity reached $1,398,820, a decrease from $1,420,076 as of June 30, 2021[12] - The Company’s total liabilities included convertible notes and exchangeable notes with a balance of $583.5 million as of December 31, 2020, adjusted for the new accounting standard[28] - The carrying amount of investment in receivable portfolios was $3,083.3 million with an estimated fair value of $3,439.5 million as of September 30, 2021, compared to a carrying amount of $3,291.9 million and estimated fair value of $3,705.7 million as of December 31, 2020[39] Operating Expenses - Operating expenses for the three months ended September 30, 2021, totaled $245,977, a decrease from $261,221 in the same period of 2020, representing a decline of 5.8%[9] - The total cost of legal collections for the three months ended September 30, 2021, was $64,170, an increase of $3,787, or 6.3%, compared to $60,383 for the same period in 2020[1] - General and administrative expenses for the three months ended September 30, 2021, decreased by $17,640, or 33.0%, compared to the same period in 2020, primarily due to a $15.0 million charge related to a settlement recognized in 2020[1] - Total interest expense for the three months ended September 30, 2021, decreased by $12,100, or 22.8%, to $40,874 compared to $52,974 for the same period in 2020[1] Cash Flow - The company reported a net cash provided by operating activities of $211,990 for the nine months ended September 30, 2021, down from $249,982 in the same period of 2020[18] - Cash and cash equivalents at the end of the period were $158,243, down from $189,184 at the beginning of the period[18] - The company reported net cash used in financing activities of $564.7 million for the nine months ended September 30, 2021, compared to $267.9 million in 2020[151] Shareholder Actions - The company repurchased common stock totaling $88,119 during the nine months ended September 30, 2021[18] - The Company repurchased 854,002 shares for approximately $40.7 million during the three months ended September 30, 2021, and a total of 1,976,857 shares for approximately $88.1 million during the nine months ended September 30, 2021[31] Market and Economic Conditions - The company is actively monitoring the impact of COVID-19 on its business and financial recovery estimates[22] - The company has observed a decrease in supply in both the U.S. and Europe due to a decrease in charge-off rates as a result of the COVID-19 pandemic[84] - The company expects actual purchases under forward flow purchase agreements to be significantly greater than the estimated minimum aggregate purchase price[73] Revenue Sources - The total debt purchasing revenue for the three months ended September 30, 2021, was $382,138, compared to $372,940 in the same period of 2020, showing an increase of 2.0%[9] - Revenue from receivable portfolios includes the accretion of the discount on the negative allowance and changes in recoveries, which are based on actual cash collected versus expected cash recoveries[49] - The company reported recoveries above forecast of $77,064 thousand for the three months ended September 30, 2021, compared to $78,268 thousand for the same period in 2020[53] Future Outlook - The company plans to expand its market presence in Europe and other geographies, targeting a revenue increase of 10% annually[140] - A strategic acquisition is anticipated to enhance the company’s competitive edge in the market, with details to be disclosed in the upcoming quarters[140] - The company has set a performance guidance of $1.25 billion for the next fiscal year, aiming for continued growth[140]

Encore Capital Group, Inc. (NASDAQ:ECPG) Q2 2021 Earnings Conference Call August 5, 2021 5:30 PM ET Company Participants Bruce Thomas - VP, Global Investor Relations Ashish Masih - President and CEO Jonathan Clark - CFO Craig Buick - CEO of Cabot Credit Management Ryan Bell - President, Midland Credit Management, Inc. Conference Call Participants David Scharf - JMP Securities Mike Grondahl - Northland Capital Mark Hughes - Truist Securities Robert Dodd - Raymond James Operator Good day, and thank you for st ...

Financial Performance - Total revenues for the three months ended June 30, 2021, were $427,735, compared to $426,033 for the same period in 2020, reflecting a slight increase of 0.4%[8] - Net income for the three months ended June 30, 2021, was $96,787, down from $130,784 in the same period of 2020, representing a decrease of 26%[9] - Earnings per share attributable to Encore Capital Group, Inc. for the three months ended June 30, 2021, were $3.12 (basic) and $3.07 (diluted), compared to $4.15 (basic) and $4.13 (diluted) for the same period in 2020[8] - Comprehensive income for the three months ended June 30, 2021, was $102,287, compared to $131,948 for the same period in 2020, reflecting a decline of 22.6%[9] - Net income for the six months ended June 30, 2021, was $191,552, compared to $120,205 for the same period in 2020, representing a year-over-year increase of approximately 59.3%[17] - Total revenues for the six months ended June 30, 2021, were $844.572 million, compared to $715.114 million for the same period in 2020, indicating a growth of 18.1%[74] Assets and Liabilities - Total assets as of June 30, 2021, were $4,679,752, a decrease from $4,864,523 as of December 31, 2020, indicating a decline of approximately 3.8%[7] - Total liabilities as of June 30, 2021, were $3,325,402, down from $3,644,447 as of December 31, 2020, reflecting a reduction of about 8.8%[7] - Total equity as of June 30, 2021, was $1,354,350, an increase from $1,042,387 as of June 30, 2020, indicating a growth of approximately 30%[13] - The company’s accumulated earnings increased to $1,269,259 as of June 30, 2021, from $1,055,668 as of December 31, 2020, an increase of approximately 20.2%[7] Operating Expenses - Operating expenses for the three months ended June 30, 2021, totaled $253,448, compared to $206,341 for the same period in 2020, marking an increase of 22.8%[8] - The company reported stock-based compensation expense of $9,056 for the six months ended June 30, 2021, slightly down from $9,305 in the same period of 2020[17] - Total operating expenses for Q2 2021 were $253,448, up from $206,341 in Q2 2020, and for the six months ended June 30, 2021, they were $501,971 compared to $448,220 in the same period of 2020[132] Cash Flow - Net cash provided by operating activities of $148,965 for the six months ended June 30, 2021, down from $209,715 in the same period of 2020[17] - Cash and cash equivalents at the end of the period were $198,516, down from $293,800 at the end of June 30, 2020, reflecting a decrease of approximately 32.4%[17] - The company reported a net cash increase of $20,015 for the six months ended June 30, 2021, compared to an increase of $111,134 in the same period of 2020[17] Receivable Portfolios - The company’s investment in receivable portfolios, net, was $3,154,001 as of June 30, 2021, down from $3,291,918 as of December 31, 2020, a decrease of approximately 4.2%[7] - Revenue from receivable portfolios for the three months ended June 30, 2021, was $328.2 million, slightly down from $335.3 million in the same period of 2020, a decrease of approximately 2.1%[50] - The balance of the investment in receivable portfolios at the end of the period was $3.15 billion, a decrease from $3.20 billion in the previous year, reflecting a decline of approximately 1.5%[50] Debt and Interest Expense - The company incurred interest expense of $44,159 for the three months ended June 30, 2021, compared to $50,327 for the same period in 2020, showing a decrease of 12.5%[8] - Interest expense related to Convertible Notes and Exchangeable Notes was $3.972 million for the three months ended June 30, 2021, down from $8.894 million in the same period of 2020[61] - The Company recorded a loss on extinguishment of debt amounting to $9,300 for the six months ended June 30, 2021, with no such loss reported in the same period of 2020[17] Market Conditions and Strategic Outlook - The company continues to monitor the impact of COVID-19 on its business and has adjusted its estimates for expected recoveries accordingly[21] - The company has observed a decrease in supply in the U.S. and Europe due to lower charge-off rates as a result of the COVID-19 pandemic[85] - The company is closely monitoring the impacts of the COVID-19 pandemic on pricing and supply of portfolios to purchase across all markets[92] Share Repurchase - The Company repurchased 604,995 shares for approximately $27.0 million during the three months ended June 30, 2021, and 1,122,855 shares for approximately $47.4 million during the six months ended June 30, 2021[30] Foreign Currency and Derivatives - The Company entered into four cross-currency swap agreements with a total notional amount of €350.0 million (approximately $415.0 million) to manage foreign currency exchange risk[42] - The company experienced a favorable impact from foreign currency translation, particularly from a 11.2% weakening of the U.S. dollar against the British Pound during the three months ended June 30, 2021[101]

Financial Data and Key Metrics Changes - The first quarter of 2021 saw record collections of $606 million, a 15% increase compared to Q1 2020 [30] - Revenues increased by 44% to $417 million, up from $289 million in Q1 2020 [32] - GAAP net income for the quarter was nearly $30 million, translating to approximately $1 of incremental GAAP earnings per share [9] Business Line Data and Key Metrics Changes - MCM collections grew 16% to a record $436 million, with call center and digital collections increasing by 25% [31] - Cabot's collections in Europe reached $163 million, up 13% compared to Q1 last year [31] - The Estimated Remaining Collections (ERC) at the end of Q1 was $8.3 billion, down 2% year-over-year due to strong collections [33] Market Data and Key Metrics Changes - Portfolio purchases globally amounted to $170 million in Q1, despite a subdued supply impacting portfolio pricing [12] - In Europe, collections performance normalized with a 13% growth compared to Q1 last year, exceeding expectations by 8% [24] Company Strategy and Development Direction - The company focuses on purchasing non-performing loan portfolios at attractive cash-on-cash returns while maintaining compliance and cost efficiency [17] - The three-pillar strategy includes Market Focus, Operational Efficiency, and Balance Sheet Strengthening, which positions the company well for future opportunities [18][28] - The company has increased its share repurchase authorization from $50 million to a $300 million multi-year program [15] Management's Comments on Operating Environment and Future Outlook - Management noted strong operational and financial performance driven by increased consumer engagement and collections [7] - The company remains cautious about the sustainability of current consumer behaviors but is optimistic about future performance [9][50] - Management emphasized the importance of maintaining a strong balance sheet and financial flexibility to capitalize on future opportunities [35] Other Important Information - The company repaid $161 million of outstanding principal on convertible notes, reducing convertible debt by $250 million over the last 12 months [34] - The leverage ratio was reduced to 2.1 times, at the low end of the targeted range of 2 to 3 times [28] Q&A Session Summary Question: What percentage of collections is represented by digital now? - Management indicated that approximately 62% of collections are now coming from digital channels, up from less than 50% in previous years [41] Question: Are there any changes in the regulatory environment? - Management reported no significant changes at the federal level regarding CFPB rules, with a proposed delay in implementation [43] Question: How does the supply-demand environment look for portfolio purchases? - Management stated that sellers in the U.S. are still active in the market, with typical flow agreements remaining consistent [46] Question: Can you break out the performance versus ERC expectations? - U.S. performance was at 121% of ERC expectations, while Europe was at 108% [48] Question: What is the impact of share repurchases on EPS? - Management clarified that future repurchases are not included in run rate calculations, and capital allocation will prioritize portfolio purchases first [52]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 ___________________________________________________________________________________ FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2021 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________to__________. COMMISSION FILE NUMBER: 000-2648 ...

Encore Capital Group, Inc. (NASDAQ:ECPG) Q4 2020 Earnings Conference Call February 24, 2021 5:00 PM ET Company Participants Bruce Thomas - VP of IR Ashish Masih - President and CEO Jonathan Clark - EVP and CFO Ryan Bell - President Midland Credit Management Craig Buick - CEO of Cabot Credit Management Conference Call Participants Bob Napoli - William Blair David Scharf - JMP Securities Mark Hughes - Truist Mike Grondahl - Northland Securities Robert Dodd - Raymond James John Rowan - Janney Operator Ladies a ...