Encore Capital Group Inc.: Q3 FY2026 earnings call

What management said about Q3 FY2026, from the documents filed with the SEC on 4 November 2026: press release. Guidance figures: 3 raised. The quarter’s numbers.

Read the filing

Key takeaways

• Net income and EPS rose sharply: Net income was $124,013 thousand, or $5.57 diluted EPS, against $74,660 thousand and $3.17 a year earlier, up 66% and 76% respectively. Source
• Global collections reached a record: Global collections were a record $754 million, up 14%, and global portfolio purchases were $390 million, up 13% from $346 million a year earlier. Source
• MCM collections hit a record: MCM, the U.S. business, purchased $310 million of portfolios and delivered record collections of $589 million, up 17% from the prior-year quarter. Source
• Share repurchases continued: The company repurchased about $27 million of common stock in the third quarter, bringing nine-month 2026 repurchases to about $73 million. Source

“Encore delivered an exceptional third quarter, both financially and operationally, highlighted by strong portfolio purchasing and record global collections,”

Ashish Masih, President and Chief Executive Officer

Guidance

What changed from last quarter

• Guidance raised: Full-year portfolio purchase guidance raised to $1.50 billion-$1.55 billion from $1.4 billion-$1.5 billion. Source
• Guidance raised: Full-year collections guidance raised to $2.90 billion-$2.95 billion from $2.80 billion-$2.85 billion. Source
• Guidance raised: Full-year EPS guidance raised to $15.50-$16.00 from $13.00-$14.00. Source

Results and growth drivers

• Net income and EPS rose sharply: Net income was $124,013 thousand, or $5.57 diluted EPS, against $74,660 thousand and $3.17 a year earlier, up 66% and 76% respectively. Source
• Global collections reached a record: Global collections were a record $754 million, up 14%, and global portfolio purchases were $390 million, up 13% from $346 million a year earlier. Source
• Revenue grew faster than expenses: Total revenues rose 18% to $544,541 thousand, while operating expenses rose 9% to $313,936 thousand, leaving income from operations at $230,605 thousand against $173,178 thousand. Source
• Recoveries drove debt purchasing revenue: Changes in recoveries rose to $111,043 thousand from $63,636 thousand, within total debt purchasing revenue of $525,457 thousand. Source
• Adjusted EBITDA increased: Adjusted EBITDA, a non-GAAP measure, was $245,171 thousand against $184,756 thousand a year earlier; the company says it indicates cash collections in excess of operating expenses. Source

Segments and regions

• MCM collections hit a record: MCM, the U.S. business, purchased $310 million of portfolios and delivered record collections of $589 million, up 17% from the prior-year quarter. Source
• Technology credited for MCM results: Management attributes MCM collections to strong execution, continued portfolio purchasing, and the deployment of new technologies, enhanced digital capabilities and operational innovation. Source
• Cabot collections roughly flat: Cabot, the European business, bought $80 million of portfolios and collected $164 million, up 2% from the third quarter last year. Source

“Given the strength and momentum of our business, we are raising our full-year 2026 guidance.”

Ashish Masih, President and Chief Executive Officer

Demand and portfolio supply

• U.S. purchases up, Europe purchases down: The footnote shows U.S. purchases of $310.0 million against $261.1 million a year earlier, and Europe purchases of $79.7 million against $84.9 million. Source

Costs and interest expense

• Legal collection costs drove expense rise: Cost of legal collections rose to $100,400 thousand from $80,010 thousand, an increase of $20,390 thousand, the largest movement among the operating expense lines shown. Source
• Interest expense slightly lower: Interest expense was $72,299 thousand for the quarter, against $74,242 thousand a year earlier. Source

“As always, we remain committed to the critical role we play in the consumer credit ecosystem and to helping consumers restore their financial health”

Ashish Masih, President and Chief Executive Officer

Capital, cash and shareholder returns

• Share repurchases continued: The company repurchased about $27 million of common stock in the third quarter, bringing nine-month 2026 repurchases to about $73 million. Source
• Operating cash flow rose over nine months: Net cash provided by operating activities was $159,630 thousand for the nine months, against $136,388 thousand a year earlier. Source
• Borrowings increased in 2026: Borrowings were $4,237,800 thousand at September 30, 2026, up from $4,001,293 thousand at December 31, 2025. Source
• Debt extinguishment loss in nine months: The company reported a loss on extinguishment of debt of $30,533 thousand in the nine months ended September 30, 2026; the line shows no amount for the third quarter of either year. Source

Strategy and consumer role

• Consumer credit role restated: The CEO restated the company's commitment to its role in the consumer credit ecosystem and to helping consumers restore their financial health. Source

Coming up, as management said on 4 November 2026

• Form 10-Q reconciliation to follow: The reconciliation from collections applied to receivable portfolios, net, to collections applied to principal balance is to be found in the Form 10-Q for the period ended September 30, 2026. Source

Figures management reported

Other quarters

• Q2 FY2026 earnings call
• Q1 FY2026 earnings call
• Q4 FY2025 earnings call
• Q3 FY2025 results

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.