ECPG

BankUnited, Inc. (BKU) came out with quarterly earnings of $1.03 per share, missing the Zacks Consensus Estimate of $1.05 per share. This compares to earnings of $0.95 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -1.91%. A quarter ago, it was expected that this company would post earnings of $1.02 per share when it actually produced earnings of $0.97, delivering a surprise of -4.9%. Over the last four quarters, the company has surpassed consensus EPS estimates just once. BankUnited, which belongs to the Zacks Banks - Major Regional industry, posted revenues of $280.44 million for the quarter ended September 2026, missing the Zacks Consensus Estimate by 4.16%. This compares to year-ago revenues of $275.68 million. The company has topped consensus revenue estimates just once over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. BankUnited shares have lost about 5.1% since the beginning of the year versus the S&P 500's gain of 12.7%. While BankUnited has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for BankUnited was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.15 on $300.36 million in revenues for the coming quarter and $3.99 on $1.15 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Banks - Major Regional is currently in the top 33% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the broader Zacks Finance sector, Encore Capital Group (ECPG), is yet to report results for the quarter ended September 2026. The results are expected to be released on November 4. This provider of debt-management and recovery services is expected to post quarterly earnings of $3.45 per share in its upcoming report, which represents a year-over-year change of +8.8%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Encore Capital Group's revenues are expected to be $473.54 million, up 2.9% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report BankUnited, Inc. (BKU) : Free Stock Analysis Report Encore Capital Group Inc (ECPG) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Over the past six months, Encore Capital Group has been a great trade, beating the S&P 500 by 16.3%. Its stock price has climbed to $95.89, representing a healthy 32.2% increase. This was partly due to its solid quarterly results, and the performance may have investors wondering how to approach the situation. Is now the time to buy Encore Capital Group, or should you be careful about including it in your portfolio? Check out our in-depth research report to see what our analysts have to say, it's free. Despite the momentum, we don't have much confidence in Encore Capital Group. Here are three reasons why ECPG doesn't excite us, plus one stock we'd rather own. Examining a company's long-term performance can provide clues about its quality. Any business can put up a good quarter or two, but the best consistently grow over the long haul. Over the last five years, Encore Capital Group grew its revenue at a sluggish 3.1% compounded annual growth rate. This fell short of our benchmark for the financials sector. Return on equity (ROE) measures how effectively financial firms generate profit from each dollar of shareholder equity — a critical funding source. High-ROE institutions typically compound shareholder wealth faster over time through retained earnings, share repurchases, and dividend payments. Over the last five years, Encore Capital Group has averaged an ROE of 7%, uninspiring for a company operating in a sector where the average shakes out around 10%. Encore Capital Group reported $182.9 million of cash and $4.18 billion of debt on its balance sheet in the most recent quarter. As investors in high-quality companies, we primarily focus on whether a company's profits can support its debt. With $745.5 million of EBITDA over the last 12 months, we view Encore Capital Group's 5.4× net-debt-to-EBITDA ratio as inadequate. The company's lacking profits relative to its borrowings give it little breathing room, raising red flags. Encore Capital Group isn't a terrible business, but it isn't one of our picks. With its shares outperforming the market lately, the stock trades at 1.7× forward P/B (or $95.89 per share). Beauty is in the eye of the beholder, but our analysis shows the upside isn't great compared to the potential downside. We're pretty confident there are more exciting stocks to buy at the moment. We'd recommend looking at a top digital advertising platform riding the creator economy. ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren't just high-quality businesses. Something is happening with them right now. Elite fundamentals meet near-term momentum — both boxes checked at the same time. Find out which stocks our AI platform is flagging this week. See this week's Strong Momentum stocks — FREE. Get Our Strong Momentum Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+271% between June 2020 and June 2025). Find your next big winner with StockStory today.

It has been about a month since the last earnings report for Encore Capital Group (ECPG). Shares have lost about 1% in that time frame, underperforming the S&P 500. Will the recent negative trend continue leading up to its next earnings release, or is Encore Capital Group due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts. Encore Capital’s second-quarter 2026 earnings per share of $2.81 missed the Zacks Consensus Estimate of $3.07. However, the bottom line increased 13% year over year. The reported quarter’s earnings included refinancing costs of $1 per share.Results primarily benefited from record global collections, strong U.S. execution, higher debt purchasing revenues and a robust balance sheet. However, an increase in expenses, along with lower servicing and other revenues, were the undermining factors.Net income increased 9% year over year to $64 million. Quarterly revenues of $491.9 million surpassed the Zacks Consensus Estimate of $462.1 million. The top line increased 11% from the prior-year quarter.Total debt purchasing revenues increased 13.1% from the prior-year quarter to $471.4 million. However, servicing revenues and other revenues declined 18.3% and 25%, respectively.Total operating expenses increased 4.7% from the prior-year quarter to $305 million. The rise was due to an increase in salaries and employee benefits costs, and cost of legal collections. Total global portfolio purchases were $443.8 million, up 20.9% year over year. The increase in portfolio purchases was driven by strong purchasing activity across both MCM and Cabot Credit Management businesses as market supply remained favorable and the company continued to deploy capital into attractive portfolios.MCM portfolio purchases were $372.3 million in the quarter, up 17.3%. This represented the company’s strongest U.S. purchasing quarter. Cabot posted portfolio purchases of $71.5 million, up 43.5% year over year.Global collections from purchased receivables increased 13% year over year to a record $737 million. MCM collections rose 16.6% to $571.9 million. The Cabot Credit Management collections were $164.3 million, up marginally from the prior-year quarter. As of June 30, 2026, Encore Capital had total assets worth $5.57 billion, up from $5.34 billion as of Dec. 31, 2025. The cash and cash equivalents balance was $182.9 million, up from $156.8 million at the end of 2025.Borrowings were $4.18 billion as of June 30, 2026, while stockholders’ equity was $1.08 billion. In the reported quarter, the company repurchased approximately $27 million in shares. Given the strong first-half results, management raised its global collections guidance. It now expects collections in 2026 to increase 8-10% year over year to $2.8-$2.85 billion. Earlier, the company anticipated growth of 8% to $2.8 billion.The company also raised its earnings outlook. It expects EPS to be $13-$14, even after absorbing $1 per share of refinancing costs incurred in the second quarter. Previously, earnings were projected to grow 19% to $13 per share.Encore Capital maintained its portfolio purchasing outlook of $1.4-$1.5 billion.Interest expenses and other income are projected to be $295 million.The effective tax rate is anticipated to be in the mid-20%. In the past month, investors have witnessed a upward trend in estimates revision. The consensus estimate has shifted 13.88% due to these changes. Currently, Encore Capital Group has a poor Growth Score of F, however its Momentum Score is doing a lot better with an A. Charting a somewhat similar path, the stock has a grade of B on the value side, putting it in the second quintile for value investors. Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Encore Capital Group has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Encore Capital Group Inc (ECPG) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

The end of the earnings season is always a good time to take a step back and see who shined (and who didn’t). Let’s take a look at how specialty finance stocks fared in Q2, starting with Encore Capital Group (NASDAQ:ECPG). Specialty finance companies provide targeted lending or financial services for specific industries or needs. They benefit from expertise in particular sectors, often reduced competition in specialized niches, and tailored underwriting that can yield higher margins. Challenges include concentration risk in specific industries, difficulty achieving scale efficiencies, and potential vulnerability during sector-specific downturns affecting their specialized markets. The 9 specialty finance stocks we track reported a strong Q2. As a group, revenues missed analysts’ consensus estimates by 4.8%. In light of this news, share prices of the companies have held steady as they are up 2.6% on average since the latest earnings results. Operating in the often misunderstood world of debt collection since 1999, Encore Capital Group (NASDAQ:ECPG) purchases portfolios of defaulted consumer debt at deep discounts and works with individuals to recover these obligations while helping them toward financial recovery. Encore Capital Group reported revenues of $491.9 million, up 11.3% year on year. This print exceeded analysts’ expectations by 8.1%. Overall, it was an exceptional quarter for the company with a solid beat of analysts’ EBITDA estimates and a beat of analysts’ EPS estimates. “Encore’s performance in the second quarter affirmed our industry leadership through record U.S. portfolio purchasing and record global collections in addition to meaningfully improving the funding of our global business through a billion-dollar refinancing at attractive terms,” said Ashish Masih, President and Chief Executive Officer. Encore Capital Group pulled off the biggest analyst estimate beat of the whole group. Unsurprisingly, the stock is up 4.5% since reporting and currently trades at $96.89. Is now the time to buy Encore Capital Group? Access our full analysis of the earnings results here, it’s free. Evolving from its origins as Aaron's, Inc. before rebranding in 2020, PROG Holdings (NYSE:PRG) provides alternative payment solutions including lease-to-own options and second-look credit products for consumers who may not qualify for traditional financing. PROG reported revenues of $719.7 million, up 22.3% year on year, outperforming analysts’ expectations by 0.8%. The business had a very strong quarter with a beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates. Although it had a fine quarter compared to its peers, the market seems unhappy with the results as the stock is down 14.7% since reporting. It currently trades at $38.47. Is now the time to buy PROG? Access our full analysis of the earnings results here, it’s free. Originally founded in 1961 as a venture capital investor that helped launch Texas Instruments, Capital Southwest (NASDAQ:CSWC) is a business development company that provides debt and equity financing to middle-market companies primarily in the United States. Capital Southwest reported revenues of $61.05 million, up 9.1% year on year. This result was in line with analysts’ expectations. Overall, it was a satisfactory quarter as it also put up a beat of analysts’ EPS estimates. The stock is up 3.7% since reporting and currently trades at $24.83. Read our full, actionable report on Capital Southwest here, it’s free. Created by Congress in 1987 to build a bridge between Wall Street and rural America, Farmer Mac (NYSE:AGM) provides a secondary market for agricultural and rural loans, helping lenders increase their liquidity and lending capacity to serve rural America. Farmer Mac reported revenues of $117.4 million, up 24.9% year on year. This number topped analysts’ expectations by 3.4%. Overall, it was a very strong quarter as it also recorded a beat of analysts’ EPS estimates. Farmer Mac pulled off the fastest revenue growth in the group. The stock is up 2.7% since reporting and currently trades at $226.14. Read our full, actionable report on Farmer Mac here, it’s free. Over the past year, investors have been forced to repeatedly answer the same question: what is the market’s biggest risk? The answer has changed several times, and each shift has reshaped market leadership. Late in 2025 and early 2026, artificial intelligence became the market’s primary uncertainty. Investors questioned whether AI would erode software pricing power and weaken competitive moats as AI made it easier to replicate once-differentiated products. By the spring, technology took a back seat to geopolitics. The U.S. conflict with Iran briefly became the market’s dominant narrative, raising concerns about oil prices, inflation, and global growth. But as energy markets remained orderly and fears of a prolonged supply disruption faded, investors quickly turned their focus back to fundamentals. Want to invest in winners with rock-solid fundamentals? Check out our 9 Best Market-Beating Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

Encore Capital Group, Inc. ECPG raised key parts of its 2026 outlook after a strong first half, putting more weight on collections growth and operating execution. The revised guidance improves visibility into the earnings path.The higher bar also increases the importance of delivery. Funding costs, leverage and rising legal collection expenses remain meaningful constraints as investors assess whether recent operating momentum can translate into sustained earnings growth. Encore now expects 2026 earnings of $13-$14 per share, up from its prior projection of about $13. The new range signals greater confidence in full-year performance after the first half.The guidance includes $1 per share of refinancing costs absorbed in the second quarter. That makes the increase more notable because the higher range already incorporates the refinancing-related earnings drag.The Zacks Consensus Estimate points to a clear earnings step-up. Earnings are projected to increase from $10.91 per share in 2025 to $13.52 in 2026 and $14.64 in 2027. Earnings Estimates Image Source: Zacks Investment Research Estimate revisions add to that momentum. The current year earnings estimate has increased 3.9% over the past four weeks, suggesting analysts have become more constructive as collections and portfolio revenues improve. Earnings Estimate Revision Trend Image Source: Zacks Investment Research Management raised 2026 global collections guidance to $2.80-$2.85 billion, implying growth of 8%-10% year over year. The prior outlook called for about $2.8 billion, or 8% growth.Second-quarter global collections rose 13% to a record $737 million. The result followed strong first-half execution and supports the view that recent portfolio purchases and collection improvements are translating into higher collections.Driven by this momentum, the Zacks Consensus Estimate for sales reflects a year-over-year rise of 8.9% in 2026 and 2.1% in 2027. Sales Estimates Image Source: Zacks Investment Research Encore's May refinancing is expected to save about $15 million in annual interest expense. Lower financing costs can provide earnings support as the company continues deploying capital into receivable portfolios.The benefit comes with an important offset. Encore expects 2026 interest expense, including other income, of about $295 million, underscoring the funding sensitivity of a business that relies on borrowings to finance portfolio purchases. Encore maintained its 2026 portfolio purchase outlook of $1.4-$1.5 billion. Management continues to see favorable U.S. supply, supported by elevated revolving credit balances and charge-offs, while Midland Credit Management's scale, analytics and collection capabilities help it target attractive returns.PRA Group, Inc. PRAA, another buyer and collector of nonperforming loan portfolios, said second-quarter 2026 portfolio income increased 7% to $267.8 million, driven by strong recent purchases at improved returns. Capital One Financial Corporation COF, a major U.S. card lender, reports delinquency and charge-off trends that provide another read on the consumer-credit backdrop influencing future debt-sale supply. Legal collection expenses increased 25.8% year over year in the first half of 2026. If collections growth slows, that faster-growing cost line could pressure operating leverage and cash efficiency.Borrowings reached $4.18 billion at June 30, 2026. The company also remains heavily dependent on U.S. conditions, with Midland Credit Management accounting for 85.2% of first-half global portfolio purchasing dollars. Higher funding costs or weaker U.S. collections could therefore make the raised outlook harder to achieve. The bottom line is that the raised outlook strengthens near-term earnings visibility, but execution still matters. ECPG currently carries a Zacks Rank #1 (Strong Buy), which is supportive of the stock's near-term earnings-revision picture. Like Encore Capital, PRA Group also sports a Zacks Rank #1, while Capital One carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks here.Its Style Scores are mixed. ECPG has a Value Score of B, Growth Score of F, Momentum Score of C and VGM Score of F. The favorable Value Score complements the top Zacks Rank, while the weaker Growth and VGM Scores argue for monitoring whether improved guidance translates into durable growth rather than assuming the outlook upgrade settles the investment case. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Encore Capital Group Inc (ECPG) : Free Stock Analysis Report Capital One Financial Corporation (COF) : Free Stock Analysis Report PRA Group, Inc. (PRAA) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Encore Capital Group, Inc. ECPG offers a straightforward trade-off. A discounted valuation and improving earnings expectations support the upside case, while leverage, rising legal costs and heavy U.S. exposure keep risk elevated.The decision therefore hinges on whether earnings momentum can stay strong enough to offset those pressure points. Current estimates and operating trends are encouraging, but the stock's broader style profile remains mixed. ECPG trades at 7.1X forward 12-month earnings, below the 8.5X multiple for its industry. The gap widens against the Zacks Finance sector at 16.9X and the S&P 500 at 20.8X. P/E F12M Image Source: Zacks Investment Research That relative discount supports the value argument and is consistent with ECPG's Value Score of B. Still, valuation alone is not enough because the company's own five-year median multiple is 6.5X, below the current level. The Zacks Consensus Estimate points to a clear earnings step-up. Earnings are projected to increase from $10.91 per share in 2025 to $13.52 in 2026 and $14.64 in 2027. Earnings Estimates Image Source: Zacks Investment Research Expectations have also moved higher recently. The current year earnings estimate increased 3.9% over the past four weeks, adding evidence that analysts are becoming more constructive on Encore's earnings trajectory. Earnings Estimate Revision Trend Image Source: Zacks Investment Research Second-quarter global collections rose 13% year over year to a record $737 million. Strong U.S. portfolio supply, continued purchasing and better execution are helping Encore turn recent investment into higher cash collections.Technology is another support. New technologies, enhanced digital capabilities and operational improvements are lifting U.S. collections, while management expects collection forecasts to adjust gradually and shift some of that outperformance into future portfolio revenue. Driven by this momentum, the Zacks Consensus Estimate for sales reflects a year-over-year rise of 8.9% in 2026 and 2.1% in 2027. Sales Estimates Image Source: Zacks Investment Research PRA Group, Inc. PRAA provides a useful industry reference because it also purchases nonperforming loan portfolios and reported $559 million of second-quarter 2026 cash collections. OneMain Holdings, Inc. OMF, a large nonprime consumer lender, reported $26.9 billion of managed receivables in the same quarter, underscoring the scale of consumer credit exposure feeding the broader credit ecosystem. The balance sheet limits how aggressively investors should interpret the upside. Borrowings stood at $4.18 billion at June 30, 2026, leaving earnings exposed to funding costs and refinancing conditions.Legal collection costs also rose faster than the broader expense base. First-half legal collection expenses increased 25.8% year over year, so slower collections could weaken operating leverage and cash efficiency. Midland Credit Management accounted for 85.2% of global portfolio purchasing dollars in the first half of 2026. That concentration has been productive while U.S. supply and consumer payment behavior remain favorable.Europe offers less offset at present. The U.K. market remains subdued because of lower consumer lending, low delinquencies and competition, increasing the importance of continued U.S. execution. The bottom line is favorable but not one-sided. ECPG currently carries a Zacks Rank #1 (Strong Buy), which reflects a positive near-term earnings-revision signal, while the Value Score of B reinforces the relative-valuation case. Additionally, PRA Group also sports a Zacks Rank #1, while OneMain Holdings carries a Zacks Rank #4 (Sell).You can see  the complete list of today's Zacks #1 Rank stocks here.The Growth Score of F, Momentum Score of C and VGM Score of F show why discipline still matters. The combination suggests ECPG's case is strongest on valuation and earnings revisions rather than a broad-based growth and momentum profile, making continued execution central to sustaining the current setup. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Encore Capital Group Inc (ECPG) : Free Stock Analysis Report PRA Group, Inc. (PRAA) : Free Stock Analysis Report OneMain Holdings, Inc. (OMF) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

This article first appeared on GuruFocus. Global Portfolio Purchases: $444 million in Q2 2026, including $372 million in the US. Global Collections: Record $737 million, up 13% year-over-year. Average Receivable Portfolios: Increased 11% to $4.52 billion. GAAP Net Income: $64 million, or $2.81 per share, including a $30.5 million ($1.00 per share) negative impact from refinancing costs. Leverage: Improved to 2.3 times at the end of Q2, compared to 2.6 times a year ago. Portfolio Revenue: Increased 11% to $400 million. Total Revenue: $492 million, reflecting growth of 11%. Debt Purchasing Revenue: Increased 13% to $471 million. Collections Yield: 65.2% in Q2, an improvement of 0.8 percentage points compared to last year. Portfolio Yield: 35.4%. Changes in Recoveries: $71 million for the quarter, with $53 million from recoveries above forecast and $18 million from changes in expected future recoveries. Operating Expenses: Increased only 5% to $305 million. Cash Efficiency Margin: Improved by 2.9 percentage points to 60.2%. Interest Expense and Other Income: Increased to $104 million, including $30.5 million of pre-tax refinancing costs. Tax Provision: $19 million, implying a corporate tax rate of approximately 23%. EPS: $2.81 per share, up 13% compared to $2.49 in Q2 last year. MCM Portfolio Purchases: Record $372 million in Q2. MCM Collections: Record $572 million, an increase of 17% compared to Q2 last year. Cabot Portfolio Purchases: $72 million in the second quarter. Cabot Collections: $164 million in the second quarter, flat compared to Q2 last year. Share Repurchases: Approximately $27 million of Encore shares repurchased in Q2, bringing the total through the first two quarters of 2026 to approximately $47 million. ROIC: Increased to 14.7% in the second quarter on a trailing twelve-months basis, up from 9.1% in Q2 last year. 2026 Guidance: Global portfolio purchases expected between $1.4 billion and $1.5 billion; global collections raised to a range from $2.8 billion to $2.85 billion; EPS expected between $13 and $14 per share; interest expense expected to be $295 million for the year. Warning! GuruFocus has detected 10 Warning Signs with ECPG. Is ECPG fairly valued? Test your thesis with our free DCF calculator. Release Date: August 05, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Record global collections of $737 million, up 13% year-over-year, driven by strong execution and operational improvements. Record US portfolio purchases of $372 million in Q2, with global purchases of $444 million, positioning the company to hit the top of its 2026 guidance. Improved cash efficiency margin to 60.2%, up 2.9 percentage points year-over-year, reflecting significant operating leverage. Successful $1 billion refinancing at lower coupons, expected to generate $15 million in annualized interest savings and reduce leverage to 2.3 times. Raised 2026 EPS guidance to $13-$14 per share, despite absorbing $1 per share in refinancing costs, and increased collections guidance to $2.8-$2.85 billion. GAAP net income was negatively impacted by $30.5 million in refinancing costs, reducing EPS by $1 per share in Q2. Cabot's collections were flat year-over-year at $164 million, with the UK market still impacted by subdued consumer lending and low delinquencies. US portfolio pricing has increased slightly, requiring better collections efficiency to maintain strong returns. The company faces ongoing macro uncertainty in the US, though consumer payment behavior remains stable for now. Interest expense rose to $104 million in Q2, partly due to refinancing costs, and full-year interest expense is now expected to be $295 million. Q: Can you elaborate on the drivers behind the record US portfolio purchases in Q2, particularly the increased activity in the spot market?A: Ashish Masih (President and CEO) explained that while the vast majority of US purchases come from forward flows, the company was more successful in capturing opportunistic spot market deals during the quarter. He noted this success is partly due to improved collection capabilities, which have enhanced purchasing power, allowing Encore to selectively win additional bulk deals without a marked change in competitive behavior. Q: Is the collections overperformance driven by reaching consumers faster, or is it leading to higher total lifetime collections?A: Ashish Masih (President and CEO) clarified that it is both. The new technologies and digital initiatives are enabling MCM to reach more consumers overall and collect earlier in the portfolio lifecycle. Given the large 2024 and 2025 vintages, this is driving overperformance, and the company is also raising its forecast (ERC) as it gains confidence, indicating expectations for higher total lifetime collections on those vintages. Q: How does the improved collection efficiency translate into a competitive advantage in the purchasing market?A: Ashish Masih (President and CEO) confirmed that the ability to drive higher net collections allows Encore to bid more competitively for portfolios it wants while still maintaining strong returns. This creates a virtuous cycle: winning more portfolios increases operating leverage, which in turn improves returns and further enhances the ability to win future deals. Q: What is your outlook for portfolio supply over the next two to three years, and is the current environment sustainable?A: Ashish Masih (President and CEO) stated that the robust purchasing environment is expected to continue, driven by strong consumer lending and charge-off rates that remain above historical averages. He noted that if consumer conditions worsen, supply could grow further. While not providing specific future collections guidance, he indicated that the strong purchasing trajectory, particularly in the US, supports continued growth in collections for the foreseeable future. Q: What is the expected full-year cash efficiency margin, and how does the current performance compare?A: Tomas Hernanz (CFO) reiterated the guidance for cash efficiency margin to be better than 58% for the full year 2026. He noted that the company is currently performing well ahead of this target, hovering between 60% and 61% in the first half of the year. Q: Can you provide details on the recent refinancing and its expected financial impact?A: Tomas Hernanz (CFO) confirmed that the company incurred $30.5 million in pre-tax refinancing costs in Q2, which equates to $1.00 per share. He stated that the refinancing of two bonds will result in annualized interest expense savings of approximately $15 million, with roughly half of that benefit expected to be captured in the current year. Q: Are you seeing any changes in the UK market, particularly regarding the type of portfolios being sold?A: Ashish Masih (President and CEO) noted a consistent trend in the UK where banks are increasingly selling fresh portfolios through forward flows rather than older, bulk portfolios. This shift aligns well with Cabot's operational capabilities and is a positive development, although the European market can be more lumpy quarter-to-quarter compared to the US. Q: What are your expectations for the 2026 vintages purchased so far this year?A: Ashish Masih (President and CEO) stated that the 2026 vintages are performing as expected. He highlighted that the overperformance discussed is primarily related to the larger 2024 and 2025 vintages. He also noted that all vintages at both MCM and Cabot are currently positive in terms of changes in recovery numbers. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Encore Capital Group, Inc.’s ECPG second-quarter 2026 earnings per share of $2.81 missed the Zacks Consensus Estimate of $3.07. However, the bottom line increased 13% year over year. The reported quarter’s earnings included refinancing costs of $1 per share.Results primarily benefited from record global collections, strong U.S. execution, higher debt purchasing revenues and a robust balance sheet. However, an increase in expenses, along with lower servicing and other revenues, were the undermining factors.Net income increased 9% year over year to $64 million. Quarterly revenues of $491.9 million surpassed the Zacks Consensus Estimate of $462.1 million. The top line increased 11% from the prior-year quarter.Total debt purchasing revenues increased 13.1% from the prior-year quarter to $471.4 million. However, servicing revenues and other revenues declined 18.3% and 25%, respectively.Total operating expenses increased 4.7% from the prior-year quarter to $305 million. The rise was due to an increase in salaries and employee benefits costs, and cost of legal collections. Total global portfolio purchases were $443.8 million, up 20.9% year over year. The increase in portfolio purchases was driven by strong purchasing activity across both Midland Credit Management, or MCM (U.S.), and Cabot Credit Management (Europe) businesses as market supply remained favorable and the company continued to deploy capital into attractive portfolios.MCM portfolio purchases were $372.3 million in the quarter, up 17.3%. This represented ECPG’s strongest U.S. purchasing quarter. Cabot posted portfolio purchases of $71.5 million, up 43.5% year over year.Global collections from purchased receivables increased 13% year over year to a record $737 million. MCM collections rose 16.6% to $571.9 million. The Cabot Credit Management collections were $164.3 million, up marginally from the prior-year quarter. As of June 30, 2026, Encore Capital had total assets worth $5.57 billion, up from $5.34 billion as of Dec. 31, 2025. The cash and cash equivalents balance was $182.9 million, up from $156.8 million at the end of 2025.Borrowings were $4.18 billion as of June 30, 2026, while stockholders’ equity was $1.08 billion. In the quarter, the company repurchased approximately $27 million in shares. Given the strong first-half results, management raised its global collections guidance. It expects collections in 2026 to increase 8-10% year over year to $2.8-$2.85 billion.The company also raised its earnings outlook. It expects EPS to be $13-$14, even after absorbing $1 per share of refinancing costs in the second quarter.Encore Capital maintained its portfolio purchasing outlook of $1.4-$1.5 billion. Scale-backed U.S. leadership, consistent execution, margin discipline and strong liquidity underpin Encore Capital’s durable growth. However, the company’s U.S.-heavy concentration might create a near-term headwind. Also, rising legal collection costs and high leverage may pressure margins if collections slow or borrowing costs increase. Encore Capital Group Inc price-consensus-eps-surprise-chart | Encore Capital Group Inc Quote Currently, ECPG carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Credit Acceptance Corporation’s CACC second-quarter 2026 adjusted earnings per share of $12.12 surpassed the Zacks Consensus Estimate of $11.46. The bottom line increased 20.6% year over year.CACC’s results were aided by a marginal rise in revenues and lower provisions and operating expenses.Enova International, Inc. ENVA reported second-quarter 2026 adjusted earnings per share of $4.31, which increased from $3.23 in the prior-year quarter. The metric surpassed the Zacks Consensus Estimate of $3.99.ENVA’s results benefited from increased revenues and improving credit quality. However, higher expenses were a headwind. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Encore Capital Group Inc (ECPG) : Free Stock Analysis Report Credit Acceptance Corporation (CACC) : Free Stock Analysis Report Enova International, Inc. (ENVA) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Interested in Encore Capital Group Inc? Here are five stocks we like better. Record growth: Encore reported record second-quarter global collections of $737 million, up 13% year over year, and portfolio purchases of $444 million, including a record $372 million in the U.S. Net income rose to $64 million, or $2.81 per share, despite a $30.5 million pretax refinancing charge. U.S. operations drove performance: MCM collections increased 17% to a record $572 million, supported by recent portfolio purchases, technology investments and stronger consumer engagement. European operations remained selective amid subdued U.K. lending, low delinquencies and intense competition. Outlook raised: Encore increased its 2026 global collections forecast to $2.8 billion-$2.85 billion and expects earnings per share of $13-$14, while maintaining its $1.4 billion-$1.5 billion portfolio-purchase outlook. Lower-cost refinancing is expected to generate approximately $50 million in annualized savings. 3 Stocks You’ll Love to Own, But Hate To Encounter Encore Capital Group (NASDAQ:ECPG) reported higher second-quarter earnings, record U.S. portfolio purchases and record global collections, while raising its 2026 outlook for collections and earnings per share. Chief Executive Officer Ashish Masih said the company’s second-quarter global portfolio purchases totaled $444 million, including a record $372 million in the United States. Global collections rose 13% year over year to a record $737 million, while average receivable portfolios increased 11% to $4.52 billion. → SpaceX’s First Earnings Report Could Decide Whether Shorts or Bulls Have Control GAAP net income totaled $64 million, or $2.81 per share, compared with $2.49 per share in the prior-year quarter. Results included a $30.5 million pretax impact from refinancing costs, equivalent to about $1 per share, according to the company. Encore said its Midland Credit Management, or MCM, U.S. business purchased $372 million of portfolios during the quarter, with the total including opportunistic spot-market purchases. The U.S. represented 84% of Encore’s global portfolio purchasing dollars during the period. → 3 Drone Stocks That Should Soar After the Summer Slump Masih said the company continues to see favorable U.S. purchasing conditions, supported by elevated revolving consumer credit balances and credit-card charge-off rates that remain above their 10-year average. Using first-quarter 2026 Federal Reserve data, he said annualized net charge-off volume exceeded $50 billion. MCM collections increased 17% from a year earlier to a record $572 million. Masih attributed the growth to substantial portfolio purchases in recent years, new technologies, digital capabilities and operational initiatives that have helped the company reach more consumers and generate more payments. → The Bitcoin Comeback May Already Be Underway—2 ETFs for Exposure “These initiatives had a greater impact on the early stages of a portfolio’s life cycle, leading to over-performance of our recent vintages,” Masih said. During the question-and-answer session, Masih said the stronger collection performance reflects both earlier consumer engagement and higher expected lifetime collections. He said improvements in collection efficiency have increased Encore’s purchasing power, allowing the company to selectively win more portfolios while retaining some benefit through higher returns. Cabot Credit Management, Encore’s European business, purchased $72 million of portfolios during the second quarter. Collections were flat year over year at $164 million. Masih said Cabot remains selective because the U.K. market continues to face subdued consumer lending, low delinquencies and robust competition. The company is focused on operational execution and cost management, including applying practices used within MCM. He also said U.K. banks have increasingly been selling fresher portfolios and establishing forward-flow arrangements, a trend that has been developing for some time. While Cabot’s second-quarter purchasing was higher, Masih noted that European purchasing can be more variable from quarter to quarter. Chief Financial Officer Tomas Hernanz said portfolio revenue rose 11% to $400 million, supported by an 11% increase in average receivable portfolios. Debt purchasing revenue increased 13% to $471 million, while total revenue, including servicing and other revenue, rose 11% to $492 million. Collections exceeded the company’s forecasts during the quarter. Changes in recoveries totaled $71 million, including $53 million of collections above forecast and $18 million from changes in expected future recoveries. Hernanz said Encore expects collection outperformance to transition into portfolio revenue over coming quarters as its forecasts reflect the impact of the company’s operational initiatives. Operating expenses increased 5% to $305 million, compared with 13% growth in collections. Cash efficiency margin improved 2.9 percentage points to 60.2%. Collection yield increased 0.8 percentage points to 65.2%. Leverage declined to 2.3 times, from 2.6 times a year earlier. In May, Encore refinanced two bonds through the issuance of $750 million in high-yield debt due 2032 and €325 million in floating-rate notes due 2033. Hernanz said the transactions carried significantly lower coupons and are expected to provide approximately $50 million in annualized savings, with roughly half of that benefit expected to be captured in 2026. The company incurred $30.5 million in refinancing costs during the second quarter. In July, Encore issued a soft call for its $230 million of convertible notes due 2029, with settlement expected in the third quarter. Hernanz said the company has no material maturities until 2028. Encore maintained its 2026 global portfolio purchase outlook of $1.4 billion to $1.5 billion, though Masih said the company now expects to finish near the upper end of that range following its first-half performance. The company raised its global collections outlook to $2.8 billion to $2.85 billion for 2026 and projected full-year earnings per share of $13 to $14, including the $1-per-share refinancing cost recorded in the second quarter. Encore also expects 2026 interest expense of $295 million and an effective tax rate in the mid-20% range. The company continues to expect its full-year cash efficiency margin to exceed 58%. Masih said the company repurchased approximately $27 million of its shares during the second quarter, bringing first-half repurchases to about $47 million. Its trailing 12-month return on invested capital rose to 14.7% from 9.1% in the prior-year quarter. Encore Capital Group, Inc is a global specialty finance company that focuses on the purchase and management of nonperforming consumer receivables. Through its subsidiaries, the company acquires charged-off debt portfolios from credit card issuers, banks, and other financial institutions, and seeks to recover outstanding balances through a combination of customer outreach, payment arrangements, and, where appropriate, legal collection efforts. Encore's business model emphasizes compliance with regulatory and industry standards to ensure ethical and transparent debt-recovery practices. Headquartered in San Diego, California, Encore operates across North America and Europe. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Encore Capital Group Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Encore Capital Group (ECPG) came out with quarterly earnings of $2.81 per share, missing the Zacks Consensus Estimate of $3.07 per share. This compares to earnings of $2.49 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -8.47%. A quarter ago, it was expected that this provider of debt-management and recovery services would post earnings of $3.26 per share when it actually produced earnings of $3.86, delivering a surprise of +18.4%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. Encore Capital Group, which belongs to the Zacks Financial - Consumer Loans industry, posted revenues of $491.87 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 6.44%. This compares to year-ago revenues of $442.12 million. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Encore Capital Group shares have added about 75.8% since the beginning of the year versus the S&P 500's gain of 13%. While Encore Capital Group has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Encore Capital Group was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $3.03 on $461.68 million in revenues for the coming quarter and $13.01 on $1.87 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Financial - Consumer Loans is currently in the top 39% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the broader Zacks Finance sector, Cherry Hill Mortgage (CHMI), has yet to report results for the quarter ended June 2026. The results are expected to be released on August 10. This residential real estate finance company is expected to post quarterly earnings of $0.13 per share in its upcoming report, which represents a year-over-year change of +30%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Cherry Hill Mortgage's revenues are expected to be $4.1 million, up 55.3% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Encore Capital Group Inc (ECPG) : Free Stock Analysis Report Cherry Hill Mortgage Investment Corporation (CHMI) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research