Encore Capital Group, Inc. Q3 2026 Earnings Recap

Encore shares jumped 26.3% after earnings, as record global collections and $124 million in GAAP net income highlighted strong cash generation and improved leverage. Portfolio purchases reached $390 million, with 80% in the U.S., where management said supply and pricing remain favorable.

Key Takeaways

• Global collections rose 14% year over year to a record $754 million; average receivable portfolios increased 11% to $4.69 billion.
• GAAP net income was $124 million, or $5.57 per share. Leverage fell to 2.3x from 2.5x a year earlier.
• Portfolio purchases totaled $390 million, including $310 million in the U.S.; 80% of purchasing dollars went to U.S. portfolios.
• Cash generation increased 18% year over year, and cumulative collections through the first three quarters were 109% of year-end 2025 ERC.
• Management cited U.S. credit-card charge-offs above their 10-year average and annualized net charge-off volume above $50 billion, supporting its view of favorable portfolio supply and pricing.