Encore Capital Group Inc · NASDAQ:ECPG
Encore Capital — Q4 2025 Earnings Presentation
35 slides from Encore Capital's earnings presentation, Feb 25, 2026
Slide 1: Fourth Quarter 2025 Investor Presentation
Fourth Quarter 2025 Investor Presentation Encore Capital Group, Inc. February 25, 2026
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
Slide 3: Today's Call
Today’s Call 2025 Highlights Our Strategy, Market Presence and Value Engine Financial Results Priorities and Outlook for 2026 Encore Capital Group, Inc. 3
Slide 4: 2025 Financial Highlights
2025 Financial Highlights Portfolio Purchases Collections Average Receivable Portfolios1 $1.41B $2.59B $4.07B up 4% up 20% up 12% Leverage2 Net Income EPS 2.4x $257M $10.91 0.2x lower up $396M up $16.74 ROIC3 Return of Capital4 13.7% Repurchased approximately 9% of ECPG shares up 620bps outstanding
Slide 5: 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
Slide 6: 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
Slide 7: Record portfolio purchasing driven by 18% growth in the U.S.
Record portfolio purchasing driven by 18% growth in the U.S. Portfolio Purchases (in $M) +4% 1,408 1,352 17% 234 Cabot (34%) 1,074 353 259 801 665 245 83% 1,174 256 999 +18% MCM 815 556 409 2021 2022 2023 2024 2025 United States Europe Encore Capital Group, Inc. 7
Slide 8: Collections increased by 20% in 2025
Collections increased by 20% in 2025 Collections by Geography (in $M) +20% 2,593 2,307 2,162 641 1,912 +9% 645 1,863 588 553 544 +24% 1,949 1,642 1,572 1,355 1,315 2021 2022 2023 2024 2025 United States Europe Other Note: Global, U.S. and Europe collections in 2025 were 109%, 108% and 112% (107%, 10
Slide 9: Cash generation increased by 22% in 2025
Cash generation increased by 22% in 2025 Encore Cash Generation1 (in $M) 1800 +22% 1600 1400 1200 1000 800 600 400 200 0 2021 2022 2023 2024 2025 2 TTM adjusted EBITDA TTM collections applied to principal balance 1) Cash generation defined as Adjusted EBITDA + collections applied to principal balanc
Slide 10: 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 $1.33T 1400 Dec 2025 6% 1200 5% 1000 4% 4.17% 800 $ Billions Q3 2025 3% 600 2% 400 200 1% 0 0% 2015 2016 2017 2018 2019 2020 2021
Slide 11: U.S. consumer credit card delinquency rates remain high
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 Q1Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
Slide 12: 2025 was a record year of portfolio purchasing
2025 was a record year of portfolio purchasing for our U.S. business with deployments of $1.2B, up 18% compared to 2024 MCM Portfolio Purchases in the U.S. (in $M) +18% 1,174 Pandemic impact 999 815 682 638 562 536 543 556 409 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Encore Capital Group, I
Slide 13: MCM continues to deliver very strong results
MCM continues to deliver very strong results across the board MCM (U.S.) MCM Collections (in $M) Portfolio supply in the U.S. remains robust +24% 1,949 Record MCM portfolio purchases of $1.17B in 2025 increased by 18% compared to 2024 1,642 1,572 Record MCM collections of $1.95B in 2025 increa
Slide 14: Cabot delivered a solid year of performance
Cabot delivered a solid year of performance Cabot (Europe) Cabot Collections (in $M) +9% 645 641 Cabot collections of $641M in 2025 increased by 9% 588 compared to 2024 553 544 Cabot portfolio purchases of $234M in 2025 were lower than in 2024 due to the higher-than-normal Q4 2024 purchases of $
Slide 15: Detailed Financial Discussion
Detailed Financial Discussion Encore Capital Group, Inc. 15
Slide 16: Financial Results – Full Year 2025
Financial Results – Full Year 2025 Summary earnings statement Variance Key financial measures Variance $ in millions, except EPS 2025 2024 $ % $ in millions 2025 2024 $ % Portfolio revenue 1,455.8 1,302.6 153.2 11.8% Collections 2,592.8 2,162.5 430.3 19.9% Changes in recoveries 208.8 (89.7) 298.5 NM
Slide 17: Debt Maturity Profile
We continue to proactively manage our balance sheet and have no significant maturities until 2028 Debt Maturity Profile at December 31, 2025 (in $M)1 1.6E+09 1.4E+09 1,304 1,332 1.2E+09 230 450 1E+09 30 844 800000000 602 337 344 500 600000000 400000000 200000000 488 500 500 500 - - 0 2026 2027 2028
Slide 18: 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
Slide 19: Our full-year 2026 guidance
Our full-year 2026 guidance 2025 Result 2026 Guidance1 Portfolio purchases $1.4B $1.4B to $1.5B Collections $2.6B Increase 5% to $2.7B Earnings per share $10.91 Increase 10% to $12.00 Interest expense + other income of $300M Effective tax rate to be in the mid-20’s % Encore Capital Group, Inc. 1
Slide 20: Appendix
Appendix Encore Capital Group, Inc. 20
Slide 21: Financial Results – Q4 2025
Financial Results – Q4 2025 Summary earnings statement Variance Key financial measures Variance $ in millions, except EPS Q4 25 Q4 24 $ % $ in millions Q4 25 Q4 24 $ % Portfolio revenue 379.3 336.7 42.6 12.7% Collections 670.0 554.6 115.4 20.8% Changes in recoveries 68.1 (95.8) 163.8 NM Portfolio pu
Slide 22: Receivable portfolios and annualized yields
Receivable portfolios and annualized yields Definitions for quarterly results: Receivable portfolios Collections yield = $ in millions Q4 24 Q1 25 Q2 25 Q3 25 Q4 25 2024 2025 (collections / average receivable portfolios) x 4 Balance, beginning of period 3,719.3 3,776.4 3,952.5 4,184.8 4,270.0 3,468.
Slide 23: 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
Slide 24: Annual Cash Efficiency Margin
Annual Cash Efficiency Margin Annual Cash Efficiency Margin and Cash Receipts (in $M) 2,697 2,435 2,266 2,014 1,963 60.2% 57.8% 54.1% 54.6% 52.2% 2021 2022 2023 2024 2025 Cash Receipts Cash Efficiency Margin Note: Cash Efficiency Margin defined as (Cash receipts – Adjusted operating expenses) ÷ Cash
Slide 25: 2025 Cash Collections and Revenue Reconciliation
2025 Cash Collections and Revenue Reconciliation 2025 Collections and Revenue Reconciliation (in $M) 198 2500 939 $2,593M Cash Collections from debt purchasing A 2000 business in 2025 1500 $198M Recoveries Above Forecast, cash collections 2,593 B above Expected Cash Collections for 2025 1000 1,456 5
Slide 26: Components of Debt Purchasing Revenue in 2025
Components of Debt Purchasing Revenue in 2025 2025 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 1800 is established at the time of the
Slide 27: 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
Slide 28: Calculation of Annual Cash Efficiency Margin
Calculation of Annual Cash Efficiency Margin 1 Annual cash efficiency margin 1 $ in millions, except percentages 2021 2022 2023 2024 2025 Collections 2,307.4 1,911.5 1,862.6 2,162.5 2,592.8 Servicing revenues 120.8 94.9 83.1 84.8 88.4 Other revenues 6.9 7.9 17.6 18.8 15.8 Cash receipts (A) 2,435.0 2
Slide 29: Calculation of Quarterly Cash Efficiency Margin
Calculation of Quarterly Cash Efficiency Margin 1 Quarterly cash efficiency margin $ in millions, except percentages Q4 24 Q1 25 Q2 25 Q3 25 Q4 25 Collections 554.6 604.8 655.0 663.0 670.0 Servicing revenues 20.5 22.5 22.3 22.2 21.4 Other revenues 4.2 3.5 3.0 4.4 4.8 Cash receipts (A) 579.3 630.9 68
Slide 30: Calculation of Annual Cash Generation
Calculation of Annual Cash Generation Reconciliation of Adjusted EBITDA to Net Income Annual Adjusted EBITDA $ in millions 2021 2022 2023 2024 2025 Net income, as reported 351.2 194.6 (206.5) (139.2) 256.8 Adjustments: Interest expense 169.6 153.3 201.9 252.5 293.9 Interest income (1.7) (1.8) (4.7)
Slide 31: Calculation of Quarterly LTM Cash Generation
Calculation of Quarterly LTM Cash Generation Reconciliation of Adjusted EBITDA to Net Income LTM Adjusted EBITDA $ in millions Q4 24 Q1 25 Q2 25 Q3 25 Q4 25 LTM net income, as reported (139.2) (115.7) (89.1) (45.1) 256.8 Adjustments: Interest expense 252.5 267.3 279.9 287.2 293.9 Interest income (7.
Slide 32: Calculation of Annual Net Debt and Leverage
Calculation of Annual Net Debt and Leverage Net debt and leverage $ in millions, except leverage 2021 2022 2023 2024 2025 GAAP Borrowings 2,997.3 2,898.8 3,318.0 3,672.8 4,001.3 Debt issuance costs and debt discounts 58.3 42.4 40.5 37.3 32.1 Cash & cash equivalents (189.6) (143.9) (158.4) (199.9) (1
Slide 33: Calculation of Quarterly Net Debt and Leverage
Calculation of Quarterly Net Debt and Leverage Net debt and leverage $ in millions, except leverage Q4 24 Q1 25 Q2 25 Q3 25 Q4 25 GAAP Borrowings 3,672.8 3,790.7 3,965.5 3,933.9 4,001.3 Debt issuance costs and debt discounts 37.3 34.2 33.1 30.5 32.1 Cash & cash equivalents (199.9) (187.1) (172.9) (1
Slide 34: Calculation of Annual ROIC
Calculation of Annual ROIC Reconciliation of Adjusted Income from Operations Adjusted income from operations and ROIC $ in millions, except percentages 2021 2022 2023 2024 2025 Numerator Income from operations 633.3 462.2 16.5 157.3 626.6 Adjustments: 1 Acquisition, integration and restructuring rel
Slide 35: Calculation of LTM Quarterly ROIC
Calculation of LTM Quarterly ROIC Reconciliation of Adjusted Income from Operations Adjusted income from operations and ROIC $ in millions, except percentages Q4 24 Q1 25 Q2 25 Q3 25 Q4 25 Numerator LTM income from operations 157.3 203.1 252.0 319.1 626.6 Adjustments: Acquisition, integration and re