Encore Capital beats Q4 revenue expectations

Encore Capital

25/02/2026 21:16

Overview

Specialty finance firm's Q4 revenue beat analyst expectations

Net income for Q4 beat analyst estimates

Company repurchased 9% of shares for $89.5 mln in 2025

Outlook

Encore Capital expects 2026 earnings per share to increase 10% to $12.00

Company anticipates 2026 global collections to rise 5% to $2.7 bln

Encore Capital forecasts 2026 portfolio purchases between $1.4 bln and $1.5 bln

Result Drivers

U.S. MARKET PERFORMANCE - Encore's U.S. operations led to record portfolio purchases and collections, driven by favorable market conditions and strong execution

TECHNOLOGY AND INNOVATION - Deployment of new technologies and enhanced digital capabilities contributed to record collections

EUROPEAN OPERATIONS - Cabot's collections in Europe increased by 9%, maintaining historical trends in portfolio purchases

Company press release: ID:nGNX4mdCVQ

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Revenue
Beat
$473.55 mln
$422.19 mln (4 Analysts)
Q4 EPS
$3.37
Q4 Net Income
Beat
$76.66 mln
$48.71 mln (4 Analysts)
Q4 Operating Expenses
$300.16 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the corporate financial services peer group is "buy"

Wall Street's median 12-month price target for Encore Capital Group Inc is $70.00, about 20.6% above its February 24 closing price of $58.02

The stock recently traded at 6 times the next 12-month earnings vs. a P/E of 5 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)