Encore Capital Group Announces Fourth Quarter and Full-Year 2025 Financial Results

Core Insights - Encore Capital Group demonstrated strong financial performance in 2025, achieving record levels in portfolio purchases and collections, with a net income of $257 million and earnings per share of $10.91 [2][5]. Financial Performance - For the full year 2025, portfolio purchases increased by 4% to $1.41 billion, with U.S. purchases reaching $1.17 billion, an 18% increase from 2024 [4][5]. - Average receivable portfolios rose by 12% to $4.07 billion compared to 2024 [4]. - Estimated Remaining Collections (ERC) grew by 14% to $9.68 billion [4]. - Total collections for 2025 were $2.59 billion, a 20% increase from the previous year [5]. - Revenues surged by 34% to $1.77 billion [4]. Fourth Quarter Highlights - In Q4 2025, portfolio purchases decreased by 34% to $327 million compared to Q4 2024 [7]. - Average receivable portfolios increased by 15% to $4.32 billion [7]. - Collections in Q4 were $670 million, up 21% from the same quarter in 2024 [7]. - Revenues for Q4 reached $474 million, a significant 78% increase year-over-year [7]. Share Repurchase - The company repurchased approximately 9% of its outstanding shares for $89.5 million in 2025 [3][5]. Future Outlook - Encore anticipates global portfolio purchases in 2026 to be between $1.4 billion and $1.5 billion, with expected global collections increasing by 5% to $2.7 billion [2]. - The company projects earnings per share to rise by 10% to $12.00 in 2026 [2].