Financial Performance - Portfolio purchases increased by 32% to $367 million[7] - Collections increased by 20% to a record $655 million[7] - Estimated Remaining Collections (ERC) increased by 12% to a record $94 billion[7] - Earnings Per Share (EPS) increased from $134 in Q2 2024 to $249 in Q2 2025[7] - Cash generation increased by 23%[18] - The company updated its full-year guidance, projecting collections to increase by 155% to $25 billion[43] U.S. Market (MCM) - Portfolio purchases in the U.S. increased by 34% compared to Q2 2024, reaching $317 million[7, 26] - Collections in the U.S. increased by 24% compared to Q2 2024, reaching $490 million[7, 26] European Market (Cabot) - Collections in Europe increased by 10% compared to Q2 2024, reaching $164 million[7, 31] - Portfolio purchases in Europe were $50 million, in line with historical trends[7, 31] Liquidity and Debt - Available liquidity was $547 million, including $397 million in available Revolving Credit Facility (RCF) and $150 million in cash[38] - The company increased the size of its revolving credit facility by $190 million to $1485 billion and extended its maturity to 2029[38]

Core Insights - PRA Group reported a Q2 2025 GAAP EPS of $1.08, significantly exceeding the consensus estimate of $0.44, largely due to a nonrecurring gain from the sale of its Brazilian servicing affiliate [1][5] - Revenue for Q2 2025 reached $284.2 million, surpassing analyst expectations of $279.3 million, with net income attributable to PRA Group at $42.4 million, reflecting a year-over-year increase of 96.9% [1][2] Financial Performance - Total cash collections increased by 13.2% year-over-year to $536.3 million, with European collections rising by 18.5% to $185.7 million and Americas and Australia collections up by 14.4% to $301.7 million [6][2] - Portfolio income grew by 19.9% to $250.9 million, while adjusted EBITDA for the last twelve months reached $1.24 billion, up 16.4% [7][2] - Operating expenses rose by 3.9% to $202.6 million, primarily due to investments in call center offshoring and legal collection capacity [10] Business Strategy - PRA Group focuses on acquiring nonperforming loan portfolios at a discount and aims to recover debts through various collection channels, including digital tools and legal processes [3][4] - The company is adopting a more selective approach to portfolio purchases, targeting $1.2 billion for FY2025, down from $1.4 billion in FY2024 [8][11] - Management emphasizes the importance of collection efficiency and plans to align U.S. operations more closely with successful European practices [12][11] Future Outlook - The company maintains a cautious stance on new portfolio purchases, prioritizing quality and returns amid macroeconomic uncertainties [11][12] - Estimated Remaining Collections (ERC) reached a record $8.3 billion, providing visibility into future revenue potential [9]

Company Overview - Jefferson Capital, Inc. is a leading analytically driven purchaser and manager of charged-off and insolvency consumer accounts, with operations in the United States, Canada, the United Kingdom, and Latin America [3] - The company was founded in 2002 and has a growing client base that includes Fortune 500 creditors, banks, fintech origination platforms, telecommunications providers, credit card issuers, and auto finance companies [3] Financial Results Announcement - Jefferson Capital will release its financial results for the second quarter of 2025 after the market close on Thursday, August 14 [1] - A webcast to discuss the company's results will take place at 5:00 pm Eastern Time on the same day [1][2] Access to Information - The live webcast and archived replay can be accessed in the investor relations section of the company's website [2]

Core Insights - The Economic Freedom Study conducted by Encore Capital Group reveals a more optimistic outlook on personal finances among U.S. and U.K. adults compared to their national economies [1][2][3] - The study highlights the financial stressors faced by consumers and their attitudes towards debt collection, credit score awareness, and financial literacy [2][3] Group 1: Consumer Sentiment - A significant portion of U.S. adults (49%) have a negative outlook on the national economy, while a larger percentage of U.K. adults (67%) feel similarly [5] - "Being debt-free" is identified as the most important aspect of economic freedom by 27% of adults in both countries [5] - The survey indicates that U.S. adults are more aware of their credit scores (83%) compared to U.K. adults (51%) [5] Group 2: Financial Challenges and Solutions - Approximately 29% of U.S. adults and 19% of U.K. adults report having past-due debt, with younger and low-income adults being particularly affected [5] - The study shows an increase in the number of adults seeking help to repay past-due debt compared to the previous year [5] - About 24% of adults in both countries believe that receiving a discount on debt owed would be the most helpful in resolving their debt [4] Group 3: Company Approach and Initiatives - Encore Capital Group emphasizes its commitment to understanding consumer needs and providing tailored solutions to help them manage past-due debt [3][4] - The company has a Consumer Bill of Rights that outlines its commitment to suspend collection activities for consumers facing significant financial hardship [5] - Encore's Sensitive Support Team in the U.K. is dedicated to assisting consumers dealing with mental or physical health issues that impact their financial situation [6]

Core Viewpoint - PRA Group, Inc. is set to report its second quarter 2025 financial results on August 4, 2025, after market close, followed by a conference call and webcast [1] Company Overview - PRA Group, Inc. is a global leader in acquiring and collecting nonperforming loans, aiming to return capital to banks and other creditors to enhance financial services for consumers across the Americas, Europe, and Australia [4] - The company employs thousands of individuals worldwide and collaborates with customers to assist them in resolving their debt [4] Upcoming Financial Reports - The company plans to report its third quarter 2025 results after market close on November 3, 2025 [3]

Core Insights - PRA Group, Inc. has promoted Owen James to president of PRA Group Europe, succeeding Martin Sjolund [2][3] - James will oversee portfolio investments across Europe and lead operations in 15 markets, aiming to enhance profitability [1][4] - The European business has successfully invested over $3 billion in portfolios in the past seven years, becoming a key performance driver for the company [4][5] Leadership and Experience - Owen James has over 30 years of experience in financial services, including 13 years at PRA Group [5] - He has held various leadership roles within PRA Group's European business and previously worked at Intrum for over 15 years [5][6] - Martin Sjolund expressed confidence in James's ability to lead PRA Group Europe, highlighting his investment experience and operational expertise [6] Company Overview - PRA Group is a global leader in acquiring and collecting nonperforming loans, helping to return capital to banks and creditors [7] - The company operates in the Americas, Europe, and Australia, employing thousands of staff to assist customers in resolving debt [7]

Core Viewpoint - Momentum investing focuses on "buying high and selling higher," contrasting with traditional strategies of "buying low and selling high" [1] Group 1: Momentum Investing Strategy - Momentum investing can be risky as stocks may lose momentum if future growth does not justify high valuations [1] - A safer approach involves investing in bargain stocks that exhibit recent price momentum [2] Group 2: Encore Capital Group (ECPG) Analysis - ECPG has shown a four-week price change of 10.6%, indicating growing investor interest [3] - Over the past 12 weeks, ECPG's stock gained 10.4%, demonstrating its ability to deliver positive returns over a longer timeframe [4] - ECPG has a beta of 1.65, suggesting it moves 65% more than the market in either direction [4] - ECPG has a Momentum Score of B, indicating a favorable time to invest [5] - The stock has a Zacks Rank 2 (Buy) due to upward revisions in earnings estimates, which attract more investors [6] - ECPG is trading at a Price-to-Sales ratio of 0.64, suggesting it is undervalued at 64 cents for each dollar of sales [6] Group 3: Investment Opportunities - ECPG is highlighted as a strong candidate for investment, with potential for further price appreciation [7] - Other stocks that meet the 'Fast-Paced Momentum at a Bargain' criteria are also available for consideration [7] - Zacks offers over 45 Premium Screens to help identify winning stock picks based on various investing styles [8]

Core Insights - Encore Capital Group, Inc. (ECPG) shares have increased by 24.3% since the release of first-quarter 2025 results, driven by rising collections and strong portfolio purchasing, although higher expenses have partially offset these gains [1] Financial Performance - ECPG reported adjusted earnings per share (EPS) of $1.93 for Q1 2025, exceeding the Zacks Consensus Estimate by 55.7% and improving from $0.95 in the prior year [1] - Revenues increased by 19.6% year over year to $392.8 million, surpassing the consensus mark by 5.5% [2] - Total debt purchasing revenues rose by 20.8% year over year to $366.7 million, while servicing revenues increased by 10.6% to $22.5 million, beating the consensus estimate of $20 million [3] Collections and Expenses - Collections grew by 18% year over year to $604.8 million, exceeding the consensus estimate of $583.3 million, supported by strong portfolio purchasing and a stable collections environment [4] - Total operating expenses rose by 8% year over year to $263.4 million, driven by increased salaries, legal collection costs, and general administrative expenses [4] Interest and Net Income - Interest expenses increased by 26.5% year over year to $70.5 million, while net income surged by 101% year over year to $46.8 million [5] - Global portfolio purchases reached $367.9 million, up from $295.7 million a year ago, with $316.4 million deployed in the United States [5] Financial Position - As of March 31, 2025, total assets were $5 billion, up from $4.8 billion at the end of 2024, while cash and cash equivalents decreased to $187.1 million [5][6] - Borrowings increased to $3.8 billion from $3.7 billion, and total liabilities rose to $4.2 billion from $4 billion at the end of 2024 [6] - Total equity increased to $819.1 million from $767.3 million at the end of 2024 [6] Share Repurchase and Guidance - ECPG repurchased $10 million worth of shares in Q1 2025 [7] - Management expects portfolio purchasing to exceed $1.35 billion in 2025 and collections to grow by approximately 11% to $2.4 billion [8] Zacks Rank - ECPG currently holds a Zacks Rank 2 (Buy) [9]

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]