Financial Data and Key Metrics Changes - Portfolio purchases in Q3 2025 were $346 million, up 23% compared to Q3 2024 [4] - Collections increased 20% to a record $663 million [4] - Average receivable portfolios rose 16% to $4.2 billion [4] - Estimated remaining collections (ERC) increased 10% to a record $9.5 billion [4] - Earnings per share for Q3 were $3.17, up more than 150% compared to Q3 2024 [4] - Leverage improved to 2.5 times at the end of Q3, compared to 2.7 times a year ago [4][19] Business Line Data and Key Metrics Changes - Midland Credit Management (MCM) in the U.S. saw portfolio purchases of $261 million in Q3, a 13% increase year-over-year [12] - MCM collections reached a record $502 million, up 25% compared to Q3 last year [12] - Cabot Credit Management's portfolio purchases were $85 million, higher than historical trends, with collections of $160 million, up 8% year-over-year [15] Market Data and Key Metrics Changes - U.S. revolving credit remains near record levels, with elevated charge-off rates driving robust portfolio supply [10] - Annualized net charge-off volume in the U.S. was estimated at $55 billion, significantly higher than previous lows [11] - U.S. consumer credit delinquencies remain near multi-year highs, indicating favorable purchasing conditions [11] Company Strategy and Development Direction - The company employs a three-pillar strategy focusing on large markets, competitive advantages, and a strong balance sheet [8] - The focus remains on purchasing portfolios in the U.S. market, where 75% of capital was deployed in Q3 [9] - The company aims to maintain a strong balance sheet and flexible capital allocation, prioritizing portfolio purchases and share repurchases [22] Management's Comments on Operating Environment and Future Outlook - Management noted stable consumer behavior despite macroeconomic uncertainties, with no significant impact on payment plans [48] - The company expects to exceed its 2024 purchasing guidance of $1.35 billion, driven by strong market conditions [30][23] - Future cash efficiency margin is expected to be around 58% for 2025 [19] Other Important Information - The company repurchased $10 million of shares in Q3 and nearly $25 million in Q4, totaling approximately $60 million year-to-date [6] - An additional $300 million was authorized for share repurchases, reflecting confidence in future prospects [6][23] - Interest expense is expected to be approximately $295 million for 2025 [19] Q&A Session Summary Question: Insights on fourth-quarter portfolio purchases - Management confirmed that the U.S. market remains solid with no changes in forward flows, expecting to exceed the $1.35 billion guidance [30] Question: Comparison with peers on purchasing - Management indicated that if peers are deploying less, it creates opportunities for the company to increase returns [32] Question: Collections multiples for U.S. and U.K. core paper - Collections multiple for both U.S. and Cabot is 2.3, stable throughout the year [36] Question: Impact of new technologies on operations - Management highlighted that new technologies and digital enhancements are driving significant improvements in collections [41] Question: Sustainability of collections overperformance - Management expressed confidence in the sustainability of collections performance, driven by MCM's strong results [64] Question: Future acquisition opportunities - Management stated that while acquisition opportunities are considered, the bar is high, and current focus remains on portfolio purchases [68]