Defense and Compliance Attorneys
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Nov 12, 2025
Encore Capital Group Inc. saw strong positive momentum in its third quarter, with revenue and profit surpassing Wall Street expectations, according to a report from Yahoo Finance. The company’s stock responded with a significant gain. Management attributed the outperformance to record collections, particularly within its U.S. Midland Credit Management (MCM) business, supported by elevated portfolio purchases and advancements in digital and operational strategies.
For the quarter, revenue was $460.4 million versus analyst estimates of $411.3 million, representing a 25.4% year-on-year growth and an 11.9% beat. Adjusted earnings per share were $3.18, significantly beating estimates of $1.59. Adjusted EBITDA came in at $180.3 million, a 41.6% beat over the $127.4 million estimate, resulting in a 39.2% margin. The operating margin was 37.6%, up from 28.9% in the same quarter last year. The company’s market capitalization was reported at $1.11 billion.
CEO Ashish Masih stated that the collections overperformance in the U.S. was driven by the deployment of new technologies, enhanced digital capabilities and continued operational innovation. He highlighted that these enhancements enabled Encore to reach more consumers and improve payment rates.
Analyst Questions Provide Further Insight
During the earnings call, analysts posed several questions to management. John Rowan of Janney Montgomery Scott pressed for clarity on fourth quarter purchasing volumes; CEO Ashish Masih reiterated that U.S. market supply remains robust and that purchasing is expected to exceed guidance, but exact quarterly figures are variable.
Mark Hughes of Truist probed the impact and implementation of new technologies on collections; Masih explained these tools have mostly benefited recent portfolio vintages and are still being rolled out, with further operational upside anticipated.
An analyst from Northland Capital Markets asked about consumer payment behavior in a challenging macro backdrop; Masih responded that Encore has seen stable repayment patterns and no major deterioration in payer conversion or plan resilience.
Zachary Oster of Citizens Capital Markets inquired about the pace and sustainability of share buybacks; Masih confirmed the program remains subject to liquidity and capital needs, but recent increases reflect management’s confidence in future performance.
Robert Dodd of Raymond James questioned the sustainability of collections overperformance and whether it would be reflected in future forecasts; Masih acknowledged that while recent gains are being driven by operational improvements, it will take time for these to fully adjust collection curves.
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