Encore Capital Group Inc · NASDAQ:ECPG

Encore Capital — Q3 2026 Earnings Presentation

28 slides from Encore Capital's earnings presentation, Nov 4, 2026

  1. Slide 1: Third Quarter 2026 Investor Presentation

    Third Quarter 2026 Investor Presentation Encore Capital Group, Inc. November 4, 2026

  2. Slide 2: Legal Disclaimers

    Legal Disclaimers The statements in this presentation that are not historical facts, including, most importantly, those statements preceded by, or that include, the words “will,” “may,” “believe,” “projects,” “expects,” “anticipates” or the negation thereof, or similar expressions, constitute “forwa

  3. Slide 3: Q3 2026 Financial Highlights

    Q3 2026 Financial Highlights Portfolio Purchases Collections Average Receivable Portfolios1 ​$390​M ​$754​M $4.69B up 13%​ up 14%​ up ​11%​ Leverage2 Net Income EPS ​2.3x​ $​124M ​$5.57​ 0.2x​ lower up ​66%​ up 76%​ 1) Represents the average of receivable portfolios for the quarter (the sum of recei

  4. Slide 4: Our Strategy and Market Presence

    Our Strategy and Market Presence Our Strategy Our Market Presence  Market leader in the United States  25+ years in operation  Market Focus  Competitive Advantage  One of the largest players in the UK (20+ years in operation)  Balance Sheet Strength  Building strength in select European marke

  5. Slide 5: Encore's competitive advantage is driven by our value engine

    Encore’s competitive advantage is driven by our value engine Buy well Purchasing portfolios at attractive returns Disciplined portfolio purchasing Collect efficiently underpinned by superior data and analytics capabilities Maximizing net collections to realize strong yields Virtuous cycle Operationa

  6. Slide 6: We continue to allocate the majority of our capital to U.S. opportunities

    We continue to allocate the majority of our capital to U.S. opportunities Portfolio Purchases (in $M) 444 72 390 363 346 327 47 80 ​20%​ 85 48 372 316 310 ​80%​ 261 279 Q3 2025 Q4 2025 Q1 2026 Q2 2026 Q3 2026 United States Europe Encore Capital Group, Inc. 6

  7. Slide 7: Collections increased by 14% to a quarterly record $754 million

    Collections increased by ​14%​ to a quarterly record $754​ million Collections by Geography (in $M) +​​14%​ 737 754 718 663 670 164 164 161 160 167 556 572 589 502 503 Q3 2025 Q4 2025 Q1 2026 Q2 2026 Q3 2026 United States Europe Other Note: Global, U.S. and Europe collections for Q1 through Q3 2026

  8. Slide 8: Cash generation increased by 18%

    Cash generation increased by ​18%​ Encore TTM Cash Generation1 (in $M) 2000 +​​18%​ 1600 1200 800 400 0 Q3 2025 Q4 2025 Q1 2026 Q2 2026 Q3 2026 2 TTM adjusted EBITDA TTM collections applied to principal balance 1) Trailing Twelve Month (“TTM”) cash generation defined as TTM adjusted EBITDA + TTM col

  9. Slide 9: Robust U.S. portfolio supply driven by high charge off rate

    Robust U.S. portfolio supply driven by high charge off rate combined with continued strong lending Outstanding U.S. Revolving Credit and U.S. Credit Card Charge Off Rate 1400 6% $1.35T 1200 Aug 2026 5% 1000 4% 800 $ Billions 3.82% Q2 2026 3% 600 2% 400 200 1% 0 0% 2016 2017 2018 2019 2020 2021 2022

  10. Slide 10: U.S. consumer credit card delinquency rates remain at high levels

    U.S. consumer credit card delinquency rates remain at high levels U.S. Bankcard Balance Delinquency Rates 4.5% 4.0% 3.5% % of Balances Past Due 3.0% 2.5% 2.0% 1.5% 1.0% 0.5% 0.0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q

  11. Slide 11: MCM continues to deliver very strong results

    MCM continues to deliver very strong results MCM (U.S.) MCM Collections (in $M)  Portfolio supply in the U.S. remains robust +​​17%​ 589  MCM portfolio purchases of ​$310​M in Q3 2026 556 572 502 503  Record MCM collections of $589​M in Q3 2026 increased by ​17% compared to Q3 2025  Strong, impr

  12. Slide 12: Cabot delivered a solid Q3

    Cabot delivered a solid Q3 Cabot (Europe) Cabot Collections (in $M) ​+2%​  Cabot portfolio purchases were ​$80​M in Q3 2026 160 167 164 164 161  U.K. market remains stable as consumer lending growth continues; competition remains robust  Cabot collections of $164​M in Q3 2026 increased by ​2%​ co

  13. Slide 13: Detailed Financial Discussion

    Detailed Financial Discussion Encore Capital Group, Inc. 13

  14. Slide 14: Financial Results

    Financial Results Summary earnings statement Variance Key financial measures Variance $ in millions, except EPS Q3 26 Q3 25 $ % $ in millions Q3 26 Q3 25 $ % Portfolio revenue 414.4 370.1 44.3 12.0% Collections 753.8 663.0 90.8 13.7% Changes in recoveries 111.0 63.6 47.4 74.5% Portfolio purchases 38

  15. Slide 15: No significant maturities until 2028

    We continue to proactively manage our balance sheet and have no significant maturities until 2028 Debt Maturity Profile at September 30, 2026 (in $M)1 1.6E+09 1,379 1.4E+09 1.2E+09 450 1E+09 838 800000000 750 338 600000000 500 377 929 368 400000000 750 45 200000000 500 500 332 368 - - 0 2026 2027 20

  16. Slide 16: Our Objectives and Priorities

    Our Objectives and Priorities Balance Sheet Objectives Capital Allocation Priorities  Preserve financial flexibility  Portfolio purchases at attractive returns  Target leverage1 between 2.0x and 3.0x  Share repurchases  Maintain a strong BB debt  Strategic M&A rating Deliver strong ROIC throug

  17. Slide 17: Updating our full-year 2026 guidance

    Updating our full-year 2026 guidance 2025 Result Updated 2026 Guidance1 Portfolio purchases $1.4B $1.50B to $1.55B Collections $2.6B $2.90B to $2.95B GAAP earnings per share $10.91 $15.50 to $16.00  Interest expense2 of $295M  Effective tax rate to be in the mid-20’s %  2026 EPS guidance excludes

  18. Slide 18: Appendix

    Appendix Encore Capital Group, Inc. 18

  19. Slide 19: Receivable portfolios and annualized yields

    Receivable portfolios and annualized yields Receivable portfolios $ in millions Q3 25 Q4 25 Q1 26 Q2 26 Q3 26 Balance, beginning of period 4,184.8 4,270.0 4,371.5 4,437.4 4,609.7 Definitions: Portfolio purchases 346.1 327.1 362.8 443.8 389.7 Collections yield = Collections (663.0) (670.0) (718.4) (7

  20. Slide 20: Supporting financial modeling formulas

    Supporting financial modeling formulas Average receivable portfolios x Portfolio yield = Portfolio revenue Average receivable portfolios x Collections yield = Collections Servicing & other Collections + = Cash receipts revenue Cash receipts x ( 1 - Cashmargin efficiency ) = Operating expenses Encore

  21. Slide 21: Quarterly Cash Efficiency Margin

    Quarterly Cash Efficiency Margin Quarterly Cash Efficiency Margin and Cash Receipts (in $M) 100.0% $900 90.0% 757 773 741 $800 80.0% 690 696 $700 70.0% $600 60.0% 60.9% 60.2% 59.6% $500 50.0% 58.4% 57.1% $400 40.0% $300 30.0% $200 20.0% $100 10.0% 0.0% - Q3 2025 Q4 2025 Q1 2026 Q2 2026 Q3 2026 Cash

  22. Slide 22: Q3 2026 Cash Collections and Revenue Reconciliation

    Q3 2026 Cash Collections and Revenue Reconciliation Q3 2026 Collections and Revenue Reconciliation (in $M) 800 +52 288 700 $754M Cash Collections from debt purchasing business A 600 in Q3 2026 500 $52M Recoveries Above Forecast, cash collections 400 754 B above expected cash collections for Q3 2026

  23. Slide 23: Components of Debt Purchasing Revenue in Q3 2026

    Components of Debt Purchasing Revenue in Q3 2026 Q3 2026 Debt Purchasing Revenue (in $M) D1. Portfolio Revenue is revenue from expected collections and is a formulaic calculation based on the investment in receivable balance and an effective interest rate (EIR) that is established at the time of the

  24. Slide 24: Non-GAAP Financial Measures

    Non-GAAP Financial Measures This presentation includes certain financial measures that exclude the impact of certain items and therefore have not been calculated in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”). The Company has included information concerning Adjusted EBITDA

  25. Slide 25: Calculation of Quarterly Cash Efficiency Margin

    Calculation of Quarterly Cash Efficiency Margin Quarterly cash efficiency margin 1 $ in millions, except percentages Q3 25 Q4 25 Q1 26 Q2 26 Q3 26 Collections 663.0 670.0 718.4 736.9 753.8 Servicing revenues 22.2 21.4 20.6 18.2 17.5 Other revenues 4.4 4.8 2.0 2.3 1.6 Cash receipts (A) 689.6 696.2 74

  26. Slide 26: Calculation of Cash Generation: Reconciliation of Adjusted EBITDA to Net Income

    Calculation of Cash Generation Reconciliation of Adjusted EBITDA to Net Income LTM Adjusted EBITDA $ in millions Q3 25 Q4 25 Q1 26 Q2 26 Q3 26 LTM net income, as reported (45.1) 256.8 296.3 301.6 350.9 Adjustments: Interest expense 287.2 293.9 296.4 296.4 294.5 Interest income (5.9) (5.0) (4.5) (4.2

  27. Slide 27: Calculation of Net Debt and Leverage

    Calculation of Net Debt and Leverage Net debt and leverage $ in millions, except leverage Q3 25 Q4 25 Q1 26 Q2 26 Q3 26 GAAP Borrowings 3,933.9 4,001.3 4,033.3 4,179.5 4,237.8 Debt issuance costs and debt discounts 30.5 32.1 30.4 33.9 30.2 Cash & cash equivalents (172.5) (156.8) (227.2) (182.9) (158

  28. Slide 28: Calculation of ROIC: Reconciliation of Adjusted Income from Operations

    Calculation of ROIC Reconciliation of Adjusted Income from Operations Adjusted income from operations and ROIC $ in millions, except percentages Q3 25 Q4 25 Q1 26 Q2 26 Q3 26 Numerator LTM income from operations 319.1 626.6 681.3 717.5 774.9 Adjustments: 1 Acquisition, integration and restructuring

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