ECPG

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

Favorable purchasing conditions continue in U.S. market Global portfolio purchases of $444 million, including record $372 million in U.S. Global collections up 13% to record $737 million Earnings per share of $2.81 includes $1.00 per share of refinancing costs SAN DIEGO, Aug. 05, 2026 (GLOBE NEWSWIRE) -- Encore Capital Group, Inc. (NASDAQ: ECPG), an international specialty finance company, today reported consolidated financial results for the second quarter ended June 30, 2026. “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. “Second quarter global portfolio purchases were $444 million and global collections were $737 million. This collections performance helped drive GAAP net income in the second quarter of $64 million or $2.81 per share, which includes refinancing costs of $1.00 per share.” “Our MCM business in the U.S. continues to deliver very strong results. Capitalizing on the ongoing attractive market opportunity in the U.S. driven by ample portfolio supply, MCM purchased $372 million of portfolios in the second quarter, our strongest purchasing quarter ever. MCM also delivered record collections of $572 million in the second quarter, up 17% compared to Q2 a year ago. This exceptional collections performance is the result of strong execution and continued significant portfolio purchasing as well as the deployment of new technologies, enhanced digital capabilities and continued operational innovation.” “Our Cabot business in Europe delivered a solid second quarter. Portfolio purchases were $72 million while collections of $164 million were in line with the second quarter last year.” “In May we refinanced $1 billion of debt, incurring $30.5 million of refinancing costs in the second quarter, which will save approximately $15 million in annual interest expense going forward.” “As a result of our strong first half of the year, we are revising our global collections guidance and now expect our full-year 2026 collections to be in a range between $2.80 billion and $2.85 billion, reflecting year-over-year growth of 8-10%. Additionally, we now expect our EPS in 2026 to be within a range from $13.00 to $14.00 per share, even after absorbing $1.00 per share of refinancing costs in the second quarter. Our guidance for portfolio purchasing remains within a range from $1.4 billion to $1.5 billion. As always, we remain committed to the critical role we play in the consumer credit ecosystem and to helping consumers restore their financial health,” said Masih. In the second quarter, the company repurchased approximately $27 million of its shares of common stock. Financial Highlights for the Second Quarter of 2026: ______________________ Conference Call and Webcast Encore will host a conference call and slide presentation today, August 5, 2026, at 2:00 p.m. Pacific / 5:00 p.m. Eastern time, to present and discuss second quarter results. Members of the public are invited to access the live webcast via the Internet by logging in on the Investor Relations page of Encore's website at encorecapital.com. To access the live conference call by telephone, please pre-register using this link. Registrants will receive confirmation with dial-in details. For those who cannot listen to the live broadcast, a replay of the webcast will be available on the Company's website shortly after the call concludes. Non-GAAP Financial Measures This news release includes certain financial measures that exclude the impact of certain items and therefore have not been calculated in accordance with U.S. generally accepted accounting principles (“GAAP”). The Company has included information concerning adjusted EBITDA because management utilizes this information in the evaluation of its operations and believes that this measure is a useful indicator of the Company’s ability to generate cash collections in excess of operating expenses through the liquidation of its receivable portfolios. Adjusted EBITDA has not been prepared in accordance with GAAP and should not be considered as an alternative to, or more meaningful than, net income and net income per share as indicators of the Company’s operating performance. Further, this non-GAAP financial measure, as presented by the Company, may not be comparable to similarly titled measures reported by other companies. A reconciliation of Adjusted EBITDA to its most directly comparable GAAP financial measure is below. About Encore Capital Group, Inc. Encore Capital Group is an international specialty finance company that provides debt recovery solutions and other related services for consumers across a broad range of financial assets. Through its subsidiaries around the globe, Encore purchases portfolios of consumer receivables from major banks, credit unions, and utility providers. Encore partners with individuals as they repay their debt obligations, helping them on the road to financial recovery and ultimately improving their economic well-being. Encore is the first and only company of its kind to operate with a Consumer Bill of Rights that provides industry-leading commitments to consumers. Headquartered in San Diego, Encore is a publicly traded NASDAQ Global Select company (ticker symbol: ECPG) and a component stock of the Russell 2000, the S&P Small Cap 600 and the Wilshire 4500. More information about the company can be found at http://www.encorecapital.com. Forward Looking Statements The statements in this press release that are not historical facts, including, most importantly, those statements preceded by, or that include, the words “will,” “may,” “believe,” “projects,” “expects,” “anticipates” or the negation thereof, or similar expressions, constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 (the “Reform Act”). These statements may include, but are not limited to, statements regarding our future operating results (including purchases and collections), performance, supply and pricing, liquidity, business plans or prospects. For all “forward-looking statements,” the Company claims the protection of the safe harbor for forward-looking statements contained in the Reform Act. Such forward-looking statements involve risks, uncertainties and other factors which may cause actual results, performance or achievements of the Company and its subsidiaries to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. These risks, uncertainties and other factors are discussed in the reports filed by the Company with the Securities and Exchange Commission, including the most recent report on Form 10-K, as it may be amended from time to time. The Company disclaims any intent or obligation to update these forward-looking statements. Contact: Bruce ThomasEncore Capital Group, Inc.Vice President, Global Investor [email protected] SOURCE: Encore Capital Group, Inc. FINANCIAL TABLES FOLLOW The following table presents certain assets and liabilities of consolidated variable interest entities (“VIEs”) included in the condensed consolidated statements of financial condition above. Most assets in the table below include those assets that can only be used to settle obligations of consolidated VIEs. The liabilities exclude amounts where creditors or beneficial interest holders have recourse to the general credit of the Company. ________________________

Make better investment decisions with Simply Wall St's easy, visual tools that give you a competitive edge. Encore Capital Group stock has rallied strongly over the past year, yet its current valuation checks paint a more mixed picture rather than a clear bargain or clear excess. The share price has delivered a 120.1% return over the past year, which puts extra focus on whether that run is supported by sustainable earnings and cash flows. Growing supply of non performing consumer debt and operational gains from technology can support investor expectations, while higher legal costs, funding pressures and a relatively high net debt load may limit how much value the market is willing to ascribe to future growth. Encore Capital Group scores 4 out of 6 on our valuation checks, indicating a mixed valuation picture where some metrics look inexpensive and others less so. The issue now is whether Encore Capital Group's recent share price gains already reflect most of the value that its fundamentals can support. Encore Capital Group delivered 120.1% returns over the last year. See how this stacks up to the rest of the Consumer Finance industry. The P/E ratio is a useful yardstick for Encore Capital Group because earnings are a key driver for a consumer finance business built around collections and portfolio returns. Encore Capital Group currently trades on a P/E of about 6.6x, compared with an industry average of roughly 8.8x and a peer group average near 10.5x, which puts the stock at a clear discount to both benchmarks. On Simply Wall St’s more tailored fair P/E of 11.2x, which factors in Encore Capital Group’s business mix, size and risk profile, the current multiple also sits well below what might be expected. Despite recent news highlighting stronger revenue and higher guidance, the market is still valuing each dollar of Encore Capital Group’s earnings more cautiously than both the sector and the model imply. Taken together, the P/E comparison indicates that Encore Capital Group stock may be trading at a discount relative to its current level of earnings. See what the numbers say about this price — find out in our valuation breakdown. Simply Wall St Narratives for Encore Capital Group pick up where the valuation puzzle leaves off by spelling out which assumptions on growth, margins and earnings would need to hold for the stock to be worth meaningfully more or less than today’s price. Each one is framed as a thesis about Encore Capital Group's business that can be tracked over time, so you can see how the underlying idea holds up as new information emerges on the Community page. One of the top community narratives on Encore Capital Group: 25% undervalued Read one of the top narratives on Encore Capital Group Do you think there's more to the story for Encore Capital Group? Head over to our Community to see what others are saying! Encore Capital Group screens as undervalued on earnings multiples, yet broader valuation checks are more mixed, so the discount is not an open and shut case. The key question is whether the current P/E gap to peers reflects overly cautious sentiment or a fair response to Encore Capital Group’s funding needs, legal exposure and leverage. From here, the crux of the bull versus bear debate is whether earnings quality and cash generation prove strong enough for that multiple to close without those risks turning the apparent discount into a value trap. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include ECPG. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Encore Capital Group ECPG is no longer a turnaround story waiting for proof. Shares have climbed 56.2% in the past six months and 120.4% over the trailing 12-month period. The valuation question is now harder. Investors must decide whether low earnings multiples and higher profit forecasts still leave room for upside, or whether leverage and cost risks should cap the rerating. ECPG trades at 6.4X forward 12-month earnings, while its current fiscal-year price-to-earnings ratio is 6.6. That remains below 7.88X for the Zacks sub-industry, 16.29X for the Zacks Finance sector and 21.32X for the S&P 500 index.The stock is also trading at its five-year median forward multiple of 6.4X, despite a stronger operating setup than it had during weaker collection periods. Its five-year range of 4.14X to 12.84X leaves room for a higher multiple if earnings quality continues to improve. Image Source: Zacks Investment Research PRA Group, Inc. PRAA is the closest public comparison because it also acquires and collects nonperforming loan portfolios. That makes portfolio supply, funding access and recovery efficiency central issues for both companies. On the other hand, FirstCash Holdings, Inc. FCFS offers a different way to view consumer-finance exposure. Its pawn-focused model depends less on charged-off receivable purchases, making it a useful contrast to ECPG’s debt-purchasing cycle.At present, PRA Group and FirstCash Holdings are trading at a premium to ECPG. Encore’s latest quarter helped reset the earnings base. First-quarter 2026 earnings of $3.86 per share beat the Zacks Consensus Estimate by 18.4%, while revenues of $475 million rose 21% year over year.The operating support was clear. Global collections increased 19% to a record $718.4 million, and the U.S. MCM business generated record collections of $556 million, up 23% from the prior-year quarter. Encore Capital Group Inc price-consensus-eps-surprise-chart | Encore Capital Group Inc Quote Management raised its 2026 earnings outlook to $13 per share from $12, implying 19% year-over-year growth. The consensus estimate shows earnings rising from $10.91 in 2025 to $13.01 in 2026 and $13.86 in 2027. Image Source: Zacks Investment Research The $99 price target reflects 7.38X forward earnings. That is not an aggressive multiple relative to the broader market, but it does imply some rerating from the current 6.40X forward 12-month level.A modest multiple expansion could be supported if collection outperformance keeps flowing into results. Collections exceeded expectations in the first quarter, and positive changes in expected future recoveries suggest estimated remaining collection curves are beginning to move higher.As those curves adjust, management expects more of the benefit to shift from cash overperformance into portfolio revenues. Stronger reported portfolio revenue can make earnings visibility more durable. ECPG’s low multiple comes with balance-sheet risk. Borrowings totaled $4.03 billion at the end of the first quarter, and the company depends on debt funding to purchase receivable portfolios.Interest expense and other income are projected to total about $300 million in 2026. If borrowing costs remain elevated or portfolio returns normalize, the earnings benefit from higher collections could face pressure. Legal collection costs are another margin risk. Rising legal activity can support recoveries, but it can also create fixed and semi-variable cost pressure if collections growth slows.The business mix adds a limitation. The U.S. business is driving most of the momentum, while Cabot in Europe continues to face subdued lending, low delinquencies and strong competition. The bottom line is that ECPG still looks inexpensive, but not risk-free. The earnings reset, low forward multiple and $99 price target support the undervaluation argument, while leverage, legal costs and geographic concentration keep the case selective.ECPG currently sports a Zacks Rank #1 (Strong Buy), which supports the view that estimate trends remain favorable in the near term. Its Value Score of B also strengthens the bargain case for investors focused on valuation. You can see the complete list of today’s Zacks #1 Rank stocks here.The rest of the style profile is less supportive. ECPG has a VGM Score of C, Growth Score of D and Momentum Score of F. That mix suggests the stock is better viewed as a selective value opportunity backed by earnings revisions, rather than an all-clear momentum play after a major rally. 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 PRA Group, Inc. (PRAA) : Free Stock Analysis Report FirstCash Holdings, Inc. (FCFS) : 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