| Metric | Value ($ M) | Q1 FY26 | Q2 FY25 |
|---|---|---|---|
| Revenue | 18.23 | 11.7% | 18.3% |
| Total Income | 18.23 | 11.7% | 18.3% |
| Expenditure | -168.67 | 3.3% | 31.3% |
| PBT | 82.85 | 25.9% | 6.2% |
| Net Profit | 64.00 | 25.8% | 9.0% |
| OPM | 100.00% | 0.00pp | 0.00pp |
| NPM | 100.00% | 0.00pp | 0.00pp |
| EPS | 2.97 | 25.2% | 18.8% |
Encore Capital Group Announces Second Quarter 2026 Financial Results
06 Aug 2026 · 6 Aug, 1:48 am
Summary
Encore Capital Group reported strong second quarter 2026 results, highlighted by record global collections of $737 million, a 13% increase year-over-year, and record U.S. portfolio purchases of $372 million. GAAP net income was $64 million, or $2.81 per diluted share, which included $1.00 per share in refinancing costs. The company revised its full-year 2026 global collections guidance upwards to $2.80-$2.85 billion and expects full-year EPS to be between $13.00 and $14.00, despite the refinancing costs. Management cited favorable purchasing conditions in the U.S. and strong execution as key drivers.
Key Highlights
- 1
Global portfolio purchases reached $444 million in Q2 2026, with a record $372 million in the U.S.
- 2
Global collections increased by 13% year-over-year to a record $737 million in the second quarter.
- 3
GAAP net income for the second quarter was $64 million, or $2.81 per share, which includes $1.00 per share of refinancing costs.
- 4
The company's MCM business in the U.S. delivered record collections of $572 million, up 17% compared to Q2 a year ago.
- 5
Cabot business in Europe reported $72 million in portfolio purchases and $164 million in collections for the second quarter.
- 6
Encore refinanced $1 billion of debt in May, incurring $30.5 million in second quarter costs, expected to save approximately $15 million annually in interest expense.
- 7
Full-year 2026 global collections guidance is revised to a range between $2.80 billion and $2.85 billion, reflecting 8-10% year-over-year growth.
Management Comments
Ashish Masih
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. 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.
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