Encore Capital Q1 Collections Jump 19% to $718M, EPS Doubles to $3.86
Encore Capital Group delivered Q1 collections of $718 million, up 19% year-over-year, and net income surged 84% to $86 million, lifting EPS to $3.86. US portfolio purchases of $316 million drove MCM collections up 23%, supporting revised full-year guidance of $2.8 billion in collections and $13.00 EPS.
1. Q1 Financial Results
For the quarter ended March 31, global collections reached $718 million, a 19% increase that contributed to revenues of $475 million and net income of $86 million, representing an 84% rise. Operating expenses grew 11% to $291 million, while EPS doubled to $3.86.
2. U.S. MCM Operations
U.S. Market Compliance Management recorded portfolio purchases of $316 million, one of its strongest quarters, and delivered record collections of $556 million, up 23%, driven by enhanced digital capabilities and operational innovations.
3. European Cabot Performance
The Cabot business in Europe maintained portfolio purchases at $47 million and achieved collections of $161 million, marking a 7% increase compared to the prior year.
4. Updated Guidance & Buyback
Full-year 2026 collections guidance was raised to approximately $2.8 billion (8% growth) and EPS forecast increased to $13.00 (19% growth), while portfolio purchase targets remain at $1.4–$1.5 billion; the company repurchased $20 million of shares in Q1.