Encore Raises 2026 Outlook After Record Collections

The Tip Desk · November 10, 2026 · 3 min read

Global collections hit a record $753.8 million in the third quarter, up 14%, as Encore lifted full-year EPS guidance to $15.50–$16.00.

Encore Capital Group (ECPG), an international specialty finance company, reported global collections of a record $753.8 million in the third quarter ended September 30, 2026, up 14% from $663.0 million a year earlier. The year-over-year pace quickened from 13% growth to $736.9 million in the second quarter.

GAAP net income was $124.0 million, or $5.57 a share, up 76% from $3.17 a share a year earlier. Second-quarter diluted earnings were $2.81 a share and included $1.00 of refinancing costs. President and Chief Executive Officer Ashish Masih said the collections performance helped drive the third-quarter profit.

The U.S. MCM business set the pace. MCM collections were a record $589 million, up 17% versus the third quarter a year ago, after $572 million in the second quarter. MCM purchased $310.0 million of portfolios in the third quarter, versus $261.1 million a year earlier. The company said the U.S. market remains highly attractive, supported by continued robust portfolio supply, and that MCM is capitalizing on that opportunity with discipline and conviction.

Global portfolio purchases were $389.7 million, up 13% from $346.1 million a year earlier, after $443.8 million in the second quarter. Europe purchases were $79.7 million. Cabot Europe collections were $164 million, up 2% versus the third quarter last year.

Revenues were $544.5 million, up 18% from $460.4 million a year earlier. Debt purchasing revenue was $525.5 million, including portfolio revenue of $414.4 million and changes in recoveries of $111.0 million versus $63.6 million a year earlier. Servicing revenue was $17.5 million. Operating expenses were $313.9 million, up 9% from $287.2 million a year earlier. Cost of legal collections was $100.4 million. Income from operations was $230.6 million. Adjusted EBITDA was $245.2 million.

Average receivable portfolios were $4.69 billion, up 11% from $4.23 billion a year earlier. Estimated remaining collections were $10.45 billion. Cash and cash equivalents were $158.4 million at September 30, 2026. Borrowings were $4.24 billion.

Given the strength and momentum of the business, Encore raised full-year 2026 guidance. The company now anticipates global portfolio purchases of $1.50 billion to $1.55 billion, versus a prior range of $1.40 billion to $1.50 billion. It now expects global collections of $2.90 billion to $2.95 billion, reflecting year-over-year growth of 12% to 14%, versus a prior range of $2.80 billion to $2.85 billion. Encore now expects 2026 earnings of $15.50 to $16.00 a share, an increase of over 40% compared with 2025, versus a prior range of $13.00 to $14.00.

In the third quarter the company repurchased approximately $27 million of common stock, bringing total repurchases through the first nine months of 2026 to approximately $73 million.