Encore Capital Q1 revenue, net income beat estimates on record collections

Encore Capital

06/05/2026 21:56

Overview

Specialty finance firm's Q1 revenue rose 21% yr/yr, beating analyst expectations

Net income for Q1 rose 84% yr/yr, beating analyst expectations

Company repurchased $20 mln of its shares in Q1

Outlook

Encore Capital raises 2026 global collections guidance to about $2.8 bln, up 8% year-over-year

Company now expects 2026 earnings per share to increase 19% to $13.00

Encore Capital maintains 2026 global portfolio purchases guidance at $1.4 bln to $1.5 bln

Result Drivers

RECORD COLLECTIONS - Co said Q1 collections reached a record $718 mln, up 19% yr/yr, supporting higher earnings

U.S. MARKET STRENGTH - Strong results in the U.S. driven by ample portfolio supply and favorable purchasing conditions, per CEO Ashish Masih

OPERATIONAL IMPROVEMENTS - Deployment of new technologies and enhanced digital capabilities contributed to exceptional collections performance, per CEO

Company press release: ID:nGNX5QNHVs

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Beat
$475.41 mln
$445.56 mln (4 Analysts)
Q1 EPS
$3.86
Q1 Net Income
Beat
$86.24 mln
$66.76 mln (4 Analysts)
Q1 Operating Expenses
$291.42 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 $100.00, about 18.5% above its May 5 closing price of $84.41

The stock recently traded at 7 times the next 12-month earnings vs. a P/E of 6 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.)