Encore Capital Group(US:ECPG)2025-11-05 22:19Financial Performance - Total revenues for Q3 2025 reached $460.4 million, a 25.4% increase from $367.1 million in Q3 2024[12] - Net income for Q3 2025 was $74.7 million, compared to $30.6 million in Q3 2024, representing a 143.5% year-over-year growth[12] - Earnings per share (EPS) for Q3 2025 were $3.22 (basic) and $3.17 (diluted), up from $1.28 and $1.26 in Q3 2024, respectively[12] - Comprehensive income for Q3 2025 was $62.9 million, compared to $56.2 million in Q3 2024, indicating a 11.9% increase[15] - Operating income for the three months ended September 30, 2025, was $190.3 million, up 58.2% from $120.2 million in the same period of 2024[113][115] - Net income for the nine months ended September 30, 2025, was $180.177 million, compared to $86.063 million for the same period in 2024, representing an increase of 109.5%[21] - Total revenues for the nine months ended September 30, 2025, were $1.3 billion, a 23.2% increase from $1.1 billion in the same period of 2024[117][119] Assets and Liabilities - Total assets increased to $5.26 billion as of September 30, 2025, from $4.79 billion at the end of 2024, marking a 9.8% growth[9] - The company's total liabilities increased to $4.31 billion as of September 30, 2025, from $4.02 billion at the end of 2024, representing a 7.2% rise[9] - The company's receivable portfolios, net, rose to $4.27 billion, up 13.1% from $3.78 billion at the end of 2024[9] - The total borrowings as of September 30, 2025, were $3,933,858 thousand, up from $3,672,762 thousand as of December 31, 2024, indicating an increase of approximately 7.1%[69] - Total equity as of September 30, 2025, was $952.914 million, down from $1,048.105 million as of September 30, 2024, reflecting a decrease of 9.1%[17] Cash Flow and Operating Activities - Cash and cash equivalents at the end of the period were $172.488 million, a decrease from $247.353 million at the end of the same period in 2024, indicating a decline of 30.2%[21] - Net cash provided by operating activities for the nine months ended September 30, 2025, was $136.388 million, slightly up from $132.624 million in 2024, showing an increase of 2.9%[21] - Cash collections for the three months ended September 30, 2025, amounted to $663,018 thousand, an increase from $550,268 thousand in the same period of 2024, representing a growth of about 20.5%[65] - Collections applied to receivable portfolios, net, for the three months ended September 30, 2025, were $292,892 thousand, compared to $222,149 thousand in 2024, marking an increase of approximately 31.7%[65] Stock and Shareholder Activities - The company repurchased and retired common stock totaling $35.329 million during the nine months ended September 30, 2025[21] - The company repurchased 243,174 shares for approximately $10 million during the three months ended September 30, 2025, as part of a $300 million share repurchase program approved in May 2021[36] - The total weighted-average dilutive shares outstanding for the three months ended September 30, 2025, was 23.52 million, compared to 24.41 million in 2024, indicating a decrease of 3.6%[37] Expenses and Taxation - Operating expenses for Q3 2025 totaled $287.2 million, an increase of 10.0% compared to $261.0 million in Q3 2024[12] - The provision for income taxes for Q3 2025 was $25.2 million, compared to $10.1 million in Q3 2024, reflecting a higher taxable income[12] - The Company's effective tax rate for the three months ended September 30, 2025, was 25.2%, compared to 24.8% for the same period in 2024[10] Debt and Financing - The company issued $500.0 million in 6.625% Senior Secured Notes due April 2031, with interest payable semi-annually starting April 15, 2026[75] - The outstanding borrowings under the Cabot Securitisation Senior Facility were £255.0 million (approximately $342.9 million), with a weighted average interest rate of 7.29% for the three months ended September 30, 2025[88] - The U.S. Facility had outstanding borrowings of $352.5 million as of September 30, 2025, with a weighted average interest rate of 7.81% for the three months ended September 30, 2025[91] - The total principal balance of the Company's Convertible Notes was $330.0 million as of September 30, 2025, with interest rates of 3.250% and 4.000% for the 2025 and 2029 Convertible Notes, respectively[76] Other Comprehensive Income and Loss - Other comprehensive income for the nine months ended September 30, 2025, was $30.840 million, compared to $19.538 million in 2024, indicating an increase of 57.7%[21] - The balance of accumulated other comprehensive loss as of September 30, 2025, was $(131.290) million, compared to $(104.382) million as of September 30, 2024, reflecting an increase in loss of 25.8%[17] - The company expects to reclassify approximately $10.5 million of net derivative loss from other comprehensive income into earnings within the next 12 months[55] Receivable Portfolios - The fair value of receivable portfolios as of September 30, 2025, was estimated at $4.55 billion, an increase from $4.05 billion as of December 31, 2024[44] - The total face value of receivable portfolios as of September 30, 2025, was $2,767,966 thousand, compared to $2,170,385 thousand as of September 30, 2024, indicating an increase of approximately 27.5%[65] - The balance of receivable portfolios, net at the end of the period was $4,270,016 thousand, up from $3,719,260 thousand in the same period of 2024, indicating an increase of about 14.8%[63]