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]

Fourth Quarter 2024 Investor Presentation Encore Capital Group, Inc. February 26, 2025 Legal Disclaimers The statements in this presentation that are not historical facts, including, most importantly, those statements preceded by, or that include, the words "will," "may," "believe," "projects," "expects," "anticipates" or the negation thereof, or similar expressions, constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 (the "Reform Act"). These s ...

Financial Data and Key Metrics Changes - Encore Capital Group reported a record global portfolio purchase of $1.35 billion in 2024, a 26% increase compared to 2023 [20][21] - Global collections reached $2.16 billion, up 16% from the previous year, driven by higher portfolio purchases [22][24] - Cash generation increased by 20% year-over-year, reflecting strong operational performance [23] Business Line Data and Key Metrics Changes - Midland Credit Management (MCM) achieved portfolio purchases of $1 billion, a 23% increase compared to 2023, with collections growing by 20% [26][27] - Cabot Credit Management's collections increased by 8% to $588 million, with a significant deployment of $200 million in Q4 [34][35] - Cabot's portfolio purchases rose by 36% to $353 million, primarily due to opportunistic purchases in Q4 [35] Market Data and Key Metrics Changes - The U.S. market saw a rise in revolving credit and charge-off rates, creating favorable purchasing conditions for Encore [24][25] - In contrast, the UK market experienced slower growth in supply and low charge-offs, impacting Cabot's performance [29][30] Company Strategy and Development Direction - Encore's strategy focuses on market selection, emphasizing regions with high risk-adjusted returns and strong regulatory frameworks [18][19] - The company aims to maintain a strong balance sheet and leverage ratio, with plans to resume share repurchases in 2025 [14][45] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the U.S. market's favorable conditions for portfolio purchasing, expecting continued growth in collections and cash generation [24][25][48] - The restructuring actions taken at Cabot are believed to position the company for a more predictable performance trajectory moving forward [34][80] Other Important Information - The company reported a decline in its leverage ratio from 2.9% at the end of 2023 to 2.6% at the end of 2024, despite record portfolio purchases [14][41] - Significant non-cash charges related to goodwill and restructuring impacted reported financial results, but underlying business strength remains robust [39][43] Q&A Session Summary Question: Inquiry about Cabot's moves and confidence in resolving issues - Management acknowledged the challenging market environment in the UK and Europe but expressed confidence that the issues at Cabot are now behind them due to recent restructuring actions [51][56] Question: Cash efficiency and operating expenses for 2025 - Management indicated that cash efficiency margins have improved, with expectations for continued operational leverage as collections grow [63][72] Question: ERC reduction specifics - The ERC reduction at Cabot in Q4 totaled approximately $453 million, with significant impacts from older vintages and market exits [74][78] Question: Future purchasing mix between Cabot and MCM - Management expects MCM to continue to dominate purchasing in 2025, with Cabot's purchasing levels anticipated to decline from 2024 [100][101] Question: Comments on pricing in the U.S. market - Pricing remains stable, with strong returns expected to continue driving collections and cash generation [80][81] Question: Confidence in the new models driving purchasing decisions - Management expressed high confidence in the new models used for pricing and purchasing, noting that recent vintages have performed well [122][123]

Encore Capital Group (ECPG) Q4 2024 Earnings Call February 27, 2025 05:32 AM ET Company Participants Bruce Thomas - VP, Global Investor RelationsAshish Masih - President & Chief Executive OfficerJonathan Clark - EVP, CFO & TreasurerDavid Scharf - Managing DirectorMike Grondahl - Head of Equities & Director of ResearchJohn Rowan - Managing DirectorRobert Dodd - Director - Finance Conference Call Participants Mark Hughes - Analyst Operator Good day, everyone, and thank you for standing by. Welcome to the Enco ...