This quarterly report represents an earnings surprise of 55.65%. A quarter ago, it was expected that this provider of debt-management and recovery services would post earnings of $1.55 per share when it actually produced earnings of $1.50, delivering a surprise of -3.23%. Encore Capital Group (ECPG) came out with quarterly earnings of $1.93 per share, beating the Zacks Consensus Estimate of $1.24 per share. This compares to earnings of $0.95 per share a year ago. These figures are adjusted for non-recurring ...

Financial Performance - Encore's portfolio purchases increased by 24% to $368 million in Q1 2025[6] - Collections increased by 18% to $605 million in Q1 2025 compared to Q1 2024[6] - EPS increased by 103.2% to $1.93 in Q1 2025 compared to $0.95 in Q1 2024[6, 32] - Cash generation for the trailing twelve months increased by 23% for Q1 2025 compared to Q1 2024[17] - The company's leverage improved to 2.6x from 2.8x year-over-year[6] Segment Performance - MCM (U.S.) portfolio purchases increased by 34% to a record $316 million in Q1 2025 compared to Q1 2024[6, 25] - MCM (U.S.) collections increased by 23% to a record $454 million in Q1 2025 compared to Q1 2024[6, 25] - Cabot (Europe) collections increased by 7% to $150 million in Q1 2025 compared to Q1 2024[6, 29] - Cabot (Europe) portfolio purchases were $51 million in Q1 2025, in line with historical trends[6, 29] Market Dynamics and Guidance - The company expects interest expense in 2025 to be $285 million[41] - The company expects the effective tax rate in 2025 to be in the mid-20's %[41] - The company reiterates its full-year guidance, expecting portfolio purchases to exceed $1.35 billion and collections to increase by 11% to $2.4 billion[41]

Financial Data and Key Metrics Changes - Portfolio purchases in Q1 were $368 million, up 24% compared to Q1 2024, while collections reached $654 million, an 18% increase [6][13][14] - Earnings per share for Q1 was $1.93, reflecting a 103% increase year-over-year [6][31] - Leverage improved to 2.6 times, down from 2.8 times a year ago [7][32] - Operating expenses increased by 8% to $263 million, indicating significant operating leverage [29] Business Line Data and Key Metrics Changes - Midland Credit Management (MCM) in the U.S. achieved record portfolio purchases of $316 million, a 34% increase year-over-year, and collections of $454 million, up 23% [9][18] - Cabot Credit Management in Europe reported portfolio purchases of $51 million and collections of $150 million, a 7% increase compared to the previous year [19][20] Market Data and Key Metrics Changes - U.S. revolving credit remains near record levels, with the credit card charge-off rate at its highest in over ten years, driving robust portfolio supply [15][16] - Delinquency rates in the U.S. are near multi-year highs, indicating favorable purchasing conditions [15][17] Company Strategy and Development Direction - The company focuses on markets with strong regulatory frameworks and stable long-term returns, primarily in the U.S. and the U.K. [12][11] - The three-pillar strategy emphasizes market focus, operational efficiency, and compliance to enhance performance and shareholder value [11][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the favorable U.S. market conditions for 2025, anticipating continued growth in portfolio purchases and collections [36][66] - The company expects global portfolio purchasing in 2025 to exceed $1.35 billion, with collections projected to grow by 11% to $2.4 billion [36] Other Important Information - The company resumed share repurchases in Q1, purchasing $10 million worth of shares [8][34] - Interest expense increased by 30% to $69 million due to higher debt balances and interest rates [30] Q&A Session Summary Question: Was the collections performance at Cabot a function of updated forecasts or underlying improvements? - Management indicated it was a combination of improved operations and updated forecasts [42] Question: What is the expected collections multiple for U.S. and Cabot? - Both MCM and Cabot had a collections multiple of 2.3 for Q1 [43] Question: Are purchasing conditions in the U.S. stable? - Management noted that purchasing conditions remain favorable, with expectations for continued strong supply [46] Question: Any volatility in collectability during Q1? - Management reported stable consumer behavior and no significant issues during tax season [47] Question: What drives the cash overs and negative revisions to forecasted recoveries? - Management explained that cash overs and NPV changes are based on different vintages and are not always directly correlated [54] Question: How should changes in recoveries impact core EPS? - Management provided an estimate that the changes in recoveries could translate to about 73 cents impact on EPS [59] Question: Will the pace of buybacks continue throughout 2025? - Future buybacks will depend on financial conditions and performance, but the current pace is expected to continue [62] Question: What is attracting the U.S. market for purchases? - The U.S. market is favorable due to high lending, elevated charge-offs, and ample supply of portfolios [66]

Financial Data and Key Metrics Changes - Portfolio purchases in Q1 2025 were $368 million, up 24% compared to Q1 2024, while collections reached $654 million, an increase of 18% [6][13][14] - Earnings per share for Q1 2025 were $1.93, reflecting a 103% increase from $0.95 in Q1 2024 [6][29] - Leverage improved to 2.6 times, down from 2.8 times a year ago, and flat compared to Q4 2024 [7][31] - Cash generation for the trailing twelve months was up 23% compared to the same period last year [14] Business Line Data and Key Metrics Changes - Midland Credit Management (MCM) in the U.S. had record portfolio purchases of $316 million, a 34% increase year-over-year, and collections of $454 million, up 23% [8][17] - Cabot Credit Management in Europe reported portfolio purchases of $51 million, consistent with historical trends, and collections of $150 million, up 7% [8][18] Market Data and Key Metrics Changes - U.S. revolving credit remains near record levels, with the credit card charge-off rate at its highest in over ten years, indicating favorable purchasing conditions [15][17] - U.S. consumer credit card delinquencies are near multi-year highs, supporting expectations for strong portfolio sales by banks and credit card issuers in 2025 [15][16] Company Strategy and Development Direction - The company focuses on markets with strong regulatory frameworks and stable long-term returns, primarily in the U.S. and the U.K. [12] - The three-pillar strategy emphasizes market focus, operational efficiency, and compliance to enhance performance and shareholder value [11][32] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the favorable U.S. market conditions, anticipating continued growth in portfolio purchasing and collections in 2025 [34][35] - The company expects global portfolio purchasing in 2025 to exceed $1.35 billion, with global collections projected to grow by 11% to $2.4 billion [35] Other Important Information - The company resumed share repurchases in Q1 2025, purchasing $10 million worth of shares [7][33] - Interest expense increased by 30% to $69 million due to higher debt balances and interest rates [28] Q&A Session Summary Question: Was the collections performance at Cabot a function of updated forecasts or underlying improvements? - Management indicated it was a combination of both improved operations and updated forecasts [40][41] Question: What is the expected collections multiple for U.S. and Cabot? - Both MCM and Cabot had a collections multiple of 2.3 times for Q1 [42] Question: Are purchasing conditions in the U.S. stable? - Management confirmed that purchasing conditions remain favorable, with stable delinquency and charge-off rates [44][45] Question: Any volatility in collectability during Q1? - Management reported stable consumer behavior and no significant issues during tax season [46][47] Question: What drives cash overs and negative revisions to forecasted recoveries? - Management explained that cash overs and NPV changes are based on different vintages and are not always directly correlated [53][55] Question: How should the $21.5 million of changes in recoveries be viewed from a core EPS perspective? - Management indicated that this could translate to about 73 cents impact on EPS, but emphasized the strong collections performance [58][60] Question: Will the pace of buybacks continue throughout 2025? - Future buybacks will depend on financial conditions and market opportunities, but the company has resumed repurchases as planned [61][63] Question: What is attracting the U.S. market for purchases going forward? - Management noted ample supply and strong returns, with expectations for record purchasing in 2025 [67][68] Question: Any unusual mix between new payment plans and one-time payments during Q1? - Management confirmed that there were no unusual changes in payment types, with consistent performance across all channels [72][74] Question: How long before a newly acquired bank might start selling into the market? - Management suggested it would take time for any new seller to align strategies and begin selling, indicating a gradual process [76][77]

PART I – FINANCIAL INFORMATION [Item 1— Condensed Consolidated Financial Statements (Unaudited)](index=3&type=section&id=Item%201%E2%80%94%20Condensed%20Consolidated%20Financial%20Statements%20(Unaudited)) The unaudited condensed consolidated financial statements for Q1 2025 reflect significant growth in net income and total revenues, driven by increased debt purchasing and portfolio expansion [Condensed Consolidated Statements of Financial Condition](index=3&type=section&id=Condensed%20Consolidated%20Statements%20of%20Financial%20Condition) Total assets reached $4.97 billion, driven by increased receivable portfolios, while liabilities grew to $4.15 billion due to higher borrowings Condensed Consolidated Statements of Financial Condition (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Assets** | **$4,969,586** | **$4,789,729** | | Receivable portfolios, net | $3,952,531 | $3,776,369 | | Goodwill | $519,410 | $507,808 | | **Total Liabilities** | **$4,150,525** | **$4,022,398** | | Borrowings | $3,790,698 | $3,672,762 | | **Total Stockholders' Equity** | **$819,061** | **$767,331** | [Condensed Consolidated Statements of Income](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) Total revenues increased to $392.8 million, leading to a more than doubling of net income to $46.8 million for Q1 2025 Three Months Ended March 31, (in thousands, except per share amounts) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Total Revenues | $392,775 | $328,386 | | Total debt purchasing revenue | $366,682 | $303,443 | | Income from operations | $129,343 | $83,591 | | Net income | $46,796 | $23,239 | | Diluted EPS | $1.93 | $0.95 | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Operating activities generated $45.3 million, while investing activities used $100.3 million, resulting in a net decrease in cash and equivalents Cash Flow Summary for Three Months Ended March 31, (in thousands) | Activity | 2025 | 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $45,283 | $50,984 | | Net cash used in investing activities | ($100,278) | ($90,882) | | Net cash provided by financing activities | $40,337 | $55,790 | | **Net (decrease) increase in cash** | **($14,658)** | **$15,892** | | **Cash and cash equivalents, end of period** | **$187,117** | **$172,990** | - Purchases of receivable portfolios were a primary use of cash, totaling **$362.7 million** in Q1 2025, an increase from $291.4 million in Q1 2024[20](index=20&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Detailed notes cover accounting policies, business operations, share repurchases, receivable portfolios, borrowings, and confirm no new material legal proceedings - The company operates as an international specialty finance company, purchasing and managing portfolios of defaulted consumer receivables through its main subsidiaries, MCM in the U.S. and Cabot in Europe[22](index=22&type=chunk)[23](index=23&type=chunk) - During Q1 2025, the company repurchased **289,425 shares** of common stock for approximately **$10.0 million** under its share repurchase program[34](index=34&type=chunk) Change in Receivable Portfolios, Net (in thousands) | Description | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Beginning Balance | $3,776,369 | $3,468,432 | | Portfolio Purchases | $367,851 | $295,714 | | Collections Applied | ($259,589) | ($195,035) | | Changes in Recoveries | $21,464 | ($12,409) | | **Ending Balance** | **$3,952,531** | **$3,531,387** | Consolidated Borrowings (in thousands) | Category | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Global senior secured revolving credit facility | $916,409 | $865,365 | | Senior secured notes | $1,880,143 | $1,846,047 | | Convertible senior notes | $330,000 | $330,000 | | Other | $397,502 | $384,041 | | **Total (before debt costs)** | **$3,824,851** | **$3,710,018** | - As of March 31, 2025, the company had forward flow purchase agreements for nonperforming loans with an estimated minimum aggregate purchase price of approximately **$534.9 million**[106](index=106&type=chunk) [Item 2 – Management's Discussion and Analysis of Financial Condition and Results of Operations](index=24&type=section&id=Item%202%20%E2%80%93%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management highlights strong Q1 2025 performance driven by robust U.S. portfolio purchasing, increased collections, and revenue growth, while maintaining sufficient liquidity [Purchases and Collections](index=25&type=section&id=Purchases%20and%20Collections) Portfolio purchases rose to $367.9 million, primarily from U.S. market strength, driving an 18.4% increase in gross collections to $604.8 million - In the U.S., market supply for defaulted consumer receivables remains at a record level, with issuers predominantly selling fresh portfolios, leading to favorable pricing conditions for Encore[131](index=131&type=chunk) Purchases of Receivable Portfolios by Location (in thousands) | Location | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | MCM (United States) | $316,366 | $236,509 | | Cabot (Europe) | $51,485 | $59,205 | | **Total** | **$367,851** | **$295,714** | Total Collections by Geographic Area (in thousands) | Location | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | MCM (United States) | $454,025 | $369,478 | | Cabot (Europe) | $149,976 | $140,697 | | **Total** | **$604,807** | **$510,887** | [Results of Operations](index=27&type=section&id=Results%20of%20Operations) Total revenues surged 19.6% to $392.8 million, driven by debt purchasing and positive recovery changes, while operating income grew 54.7% Revenue Breakdown (in thousands) | Revenue Component | Q1 2025 | Q1 2024 | $ Change | | :--- | :--- | :--- | :--- | | Portfolio revenue | $345,218 | $315,852 | $29,366 | | Changes in recoveries | $21,464 | ($12,409) | $33,873 | | **Total debt purchasing revenue** | **$366,682** | **$303,443** | **$63,239** | | Servicing revenue | $22,547 | $20,379 | $2,168 | | **Total revenues** | **$392,775** | **$328,386** | **$64,389** | - Collections over-performed forecasts by approximately **$27.0 million** in Q1 2025, contributing significantly to the positive 'Changes in recoveries' revenue line item[149](index=149&type=chunk) Operating Expenses (in thousands) | Expense Component | Q1 2025 | Q1 2024 | % Change | | :--- | :--- | :--- | :--- | | Salaries and employee benefits | $105,932 | $104,184 | 1.7% | | Cost of legal collections | $68,013 | $58,721 | 15.8% | | General and administrative | $41,018 | $36,241 | 13.2% | | **Total operating expenses** | **$263,432** | **$244,795** | **7.6%** | - Interest expense increased by **$14.8 million (26.5%)** YoY, driven by a higher average debt balance (contributing **$6.7 million**) and rising interest rates (contributing **$8.6 million**)[166](index=166&type=chunk)[169](index=169&type=chunk) [Liquidity and Capital Resources](index=39&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains strong liquidity with **$378.6 million** available under its Global Senior Facility and repurchased **$10.0 million** in common stock during Q1 2025 - The company is in material compliance with all debt covenants and had **$378.6 million** of available capacity under its Global Senior Facility as of March 31, 2025[196](index=196&type=chunk) - Under its $300 million share repurchase program, the company bought back **289,425 shares** for approximately **$10.0 million** in Q1 2025. As of March 31, 2025, **$81.9 million** remained authorized for future repurchases[197](index=197&type=chunk) [Item 3 – Quantitative and Qualitative Disclosures About Market Risk](index=41&type=section&id=Item%203%20%E2%80%93%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) No material changes in market risk exposure, including foreign currency and interest rates, were reported as of March 31, 2025 - There were no material changes in the company's foreign currency or interest rate risk profiles during the first quarter of 2025[204](index=204&type=chunk)[205](index=205&type=chunk) [Item 4 – Controls and Procedures](index=41&type=section&id=Item%204%20%E2%80%93%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective, with no material changes to internal control over financial reporting - The CEO and CFO have concluded that the company's disclosure controls and procedures are effective as of the end of the reporting period[209](index=209&type=chunk) - No material changes were made to the internal control over financial reporting during the quarter ended March 31, 2025[210](index=210&type=chunk) PART II – OTHER INFORMATION [Item 1 – Legal Proceedings](index=42&type=section&id=Item%201%20%E2%80%93%20Legal%20Proceedings) No material developments or new legal proceedings were reported during the quarter, as detailed in the financial statements - There were no material developments in legal proceedings during the three months ended March 31, 2025[102](index=102&type=chunk)[213](index=213&type=chunk) [Item 1A – Risk Factors](index=42&type=section&id=Item%201A%20%E2%80%93%20Risk%20Factors) No material changes to the company's previously disclosed risk factors were reported for the quarter - No material changes to the company's risk factors were reported for the quarter[215](index=215&type=chunk) [Item 2 - Unregistered Sales of Equity Securities and Use of Proceeds](index=42&type=section&id=Item%202%20-%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company repurchased **289,425 shares** for **$10.0 million** in Q1 2025, with **$81.9 million** remaining under its share repurchase program Issuer Repurchases of Equity Securities (Q1 2025) | Period | Total Shares Purchased | Average Price Paid Per Share | Dollar Value Remaining in Program | | :--- | :--- | :--- | :--- | | Jan 2025 | 0 | N/A | $91,926,255 | | Feb 2025 | 7,636 | $36.41 | $91,648,258 | | Mar 2025 | 281,789 | $34.51 | $81,922,587 | | **Total** | **289,425** | **$34.56** | **$81,922,587** |

Exhibit 99.1 Encore Capital Group Announces First Quarter 2025 Financial Results SAN DIEGO, May 7, 2025 -- Encore Capital Group, Inc. (NASDAQ: ECPG), an international specialty finance company, today reported consolidated financial results for the first quarter ended March 31, 2025. (2) Represents the average of receivable portfolios for the quarter (receivable portfolios at the beginning and end of the quarter divided by 2). "Encore's 2025 is off to a strong start, which is reflected in every measure of ou ...

Core Insights - Encore Capital Group reported strong financial performance for Q1 2025, with significant increases in portfolio purchases and collections compared to the previous year [2][4] - The company anticipates exceeding $1.35 billion in global portfolio purchases for 2025 and expects collections to grow by 11% year-over-year to $2.4 billion [2][4] Financial Performance - Portfolio purchases in Q1 2025 reached $368 million, a 24% increase from $295.7 million in Q1 2024 [4] - Collections for the quarter totaled $605 million, up 18% from $510.9 million in the same period last year [4] - Earnings per share (EPS) for Q1 2025 were $1.93, reflecting a 103% increase from $0.95 in Q1 2024 [4][7] Business Segments - The U.S. MCM business achieved record portfolio purchases of $316 million, a 34% increase year-over-year, and collections of $454 million, up 23% [2][4] - The Cabot business in Europe reported portfolio purchases of $51 million and collections of $150 million, a 7% increase compared to the previous year [2][4] Operational Metrics - Average receivable portfolios increased by 10% to $3.86 billion from $3.50 billion year-over-year [4] - Estimated Remaining Collections (ERC) rose by 7% to $8.86 billion compared to $8.31 billion in Q1 2024 [4] Shareholder Actions - The company repurchased $10 million of its common stock during the first quarter [3]

Group 1 - Encore Capital Group, Inc. will release its financial results for Q1 2025 on May 7, 2025, after market close [1] - A conference call and slide presentation will be held on the same day at 2:00 p.m. Pacific / 5:00 p.m. Eastern time, featuring key executives discussing the results [1] - Members of the public can access the live webcast via Encore's Investor Relations page, and a replay will be available shortly after the call [2] Group 2 - Encore Capital Group is an international specialty finance company providing debt recovery solutions and related services for consumers [3] - The company purchases portfolios of consumer receivables from major banks, credit unions, and utility providers [3] - Encore operates with a Consumer Bill of Rights, offering industry-leading commitments to consumers [4]

SAN DIEGO, March 03, 2025 (GLOBE NEWSWIRE) -- Encore Capital Group, Inc. (Nasdaq:ECPG), an international specialty finance company, announced today that Encore management will be meeting with investors at the Raymond James 46th Annual Institutional Investors Conference on Tuesday, March 4, 2025. In addition, Ashish Masih, Encore’s President and Chief Executive Officer, will be making a presentation at the conference at 11:00am Eastern time on the same day. A link to the live webcast and a copy of the presen ...

Core Insights - Encore Capital Group, Inc. (ECPG) shares have dropped 21.9% following the release of its fourth-quarter 2024 results, raising investor concerns about declining debt-purchasing revenues [1] - Despite the revenue decline, rising collections and strong portfolio purchasing have partially mitigated the negative impact [1] Financial Performance - ECPG reported adjusted earnings per share (EPS) of $1.50, missing the Zacks Consensus Estimate by 3.2%, but showing a 20% year-over-year improvement [2] - Revenues decreased by 4.2% year over year to $265.6 million, falling short of the consensus estimate by 28.9% [2] - Total debt purchasing revenues fell 4.6% year over year to $240.9 million, while servicing revenues increased by 4.5% to $20.5 million, exceeding the consensus mark of $20 million [4] Collections and Purchases - Global collections grew by 21% year over year to $554.6 million, although this was below the consensus estimate of $585.5 million [5] - Portfolio purchases in the U.S. rose significantly, contributing to a total of $495.1 million, up from $292.5 million a year ago [6] Operating Expenses and Cash Flow - Total operating expenses decreased by 19% year over year to $399.8 million, attributed to lower collection agency commissions and goodwill impairment [5] - Cash efficiency margin improved to 53% from 51.2% a year ago [6] - Net cash provided by operating activities increased by 2.1% year over year to $156.2 million [8] Financial Position - As of December 31, 2024, total assets were $4.8 billion, up from $4.6 billion at the end of 2023 [8] - Cash and cash equivalents rose to $199.9 million, while borrowings increased to $3.67 billion from $3.32 billion at the end of 2023 [8] Full-Year Update and Guidance - For the full year 2024, revenues increased by 8% year over year, with collections and portfolio purchases rising by 16% and 26%, respectively [9] - Management anticipates portfolio purchasing to exceed $1.35 billion in 2025 and collections to grow by approximately 11% to $2.4 billion [10]