Revenue surged to $491.9M in Q2 2026, up 11.2% year-over-year, with operating margin expanding to 38.0% from 34.1%, though provision volatility remains high.
Encore Capital Group, Inc. (ECPG) annual income statement — 28-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 |
|---|
| Net Interest Income | 163.63M | -287.63M | -252.54M | -201.88M | -153.31M | -169.65M | -209.36M | -217.77M | -237.35M | -204.16M | -185.75M | -146.32M | -129.92M | -52.84M | -12.81M | -19.28M | -17.68M | -16.16M | -20.57M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| NII Growth % | 650.32% | -13.89% | -25.1% | -31.68% | 9.63% | 18.97% | 3.86% | 8.25% | -16.26% | -9.91% | -26.94% | -12.62% | -145.86% | -312.36% | 33.54% | -9.07% | -9.41% | 21.45% | - | - | - | - | - | - | - | - | - | - | - |
| Net Interest Margin % | 2.94% | -5.39% | -5.27% | -4.36% | -3.4% | -3.68% | -4.3% | -4.44% | -5.12% | -4.55% | -5.06% | -3.47% | -3.46% | -1.97% | -1.09% | -2.37% | -2.4% | -2.72% | -3.75% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% |
| Interest Income | 453.86M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 28.44M | 27.97M | 15.91M | 10.46M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 290.23M | 287.63M | 252.54M | 201.88M | 153.31M | 169.65M | 209.36M | 217.77M | 237.35M | 204.16M | 185.75M | 174.76M | 157.89M | 68.75M | 23.27M | 19.28M | 17.68M | 16.16M | 20.57M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Loan Loss Provision | 393.42M | 259.11M | 460.26M | 449.56M | 475.34M | 516.87M | 457.64M | 425.13M | 384.86M | 355.34M | 332.34M | 355.22M | 320.05M | 316.35M | 261.84M | 229.73M | 187.87M | -16.16M | -20.57M | 100.17M | 52.08M | 69.35M | 28.2M | 27.16M | 18.96M | 0 | 0 | 5.5M | 1.9M |
| Non-Interest Income | 1.44B | 1.76B | 1.32B | 1.22B | 1.4B | 1.61B | 1.5B | 1.4B | 1.36B | 1.19B | 1.03B | 1.1B | 1.02B | 757.46M | 546.32M | 448.75M | 364.29M | 316.42M | 255.89M | 254.01M | 255.14M | 221.84M | 178.47M | 117.5M | 90.38M | 47.84M | 36.56M | 28.2M | 26.9M |
| Non-Interest Income % | 89.83% | 119.5% | 123.74% | 119.78% | 112.31% | 111.74% | 116.2% | 118.46% | 121.1% | 120.77% | 122.02% | 115.32% | 114.67% | 107.5% | 102.4% | 104.49% | 105.1% | 105.38% | 108.74% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% |
| Total Net Revenue | 1.61B | 1.47B | 1.06B | 1.02B | 1.25B | 1.44B | 1.29B | 1.18B | 1.12B | 982.88M | 843.51M | 955.2M | 885.54M | 704.61M | 533.5M | 429.46M | 346.61M | 300.26M | 235.32M | 254.01M | 255.14M | 221.84M | 178.47M | 117.5M | 90.38M | 47.84M | 36.56M | 28.2M | 26.9M |
| Revenue Growth % | 35.46% | 38.64% | 4.21% | -18.01% | -13.83% | 11.83% | 9.5% | 4.91% | 14.43% | 16.52% | -11.69% | 7.87% | 25.68% | 32.07% | 24.23% | 23.9% | 15.44% | 27.6% | -7.36% | -0.44% | 15.01% | 24.29% | 51.89% | 30.01% | 88.9% | 30.87% | 29.65% | 4.83% | - |
| Non-Interest Expense | 498.62M | 592.22M | 446.23M | 554.7M | 307.53M | 294.71M | 300.84M | 308.44M | 334.51M | 303M | 269.65M | 317.73M | 257.01M | 189.91M | 116.58M | 79.55M | 64.41M | 249.78M | 216.9M | 101.68M | 131.45M | 68.47M | 76.79M | 47.82M | 43.9M | 46.82M | 59.65M | 20.7M | 9.5M |
| Efficiency Ratio | 31% | 40.15% | 41.95% | 54.34% | 24.7% | 20.4% | 23.28% | 26.14% | 29.74% | 30.83% | 31.97% | 33.26% | 29.02% | 26.95% | 21.85% | 18.52% | 18.58% | 83.19% | 92.17% | 40.03% | 51.52% | 30.87% | 43.02% | 40.7% | 48.58% | 97.87% | 163.15% | 73.4% | 35.32% |
| Operating Income | 716.45M | 623.56M | 157.33M | 16.54M | 462.17M | 633.27M | 533.56M | 446.35M | 405.3M | 324.54M | 241.51M | 282.25M | 308.47M | 198.36M | 155.08M | 120.18M | 94.34M | 66.64M | 38.99M | 52.16M | 71.61M | 84.01M | 73.49M | 42.52M | 27.51M | 1.02M | -23.09M | 2M | 15.5M |
| Operating Margin % | 44.54% | 42.28% | 14.79% | 1.62% | 37.12% | 43.83% | 41.3% | 37.83% | 36.04% | 33.02% | 28.63% | 29.55% | 34.83% | 28.15% | 29.07% | 27.98% | 27.22% | 22.19% | 16.57% | 20.54% | 28.07% | 37.87% | 41.17% | 36.19% | 30.44% | 2.13% | -63.15% | 7.09% | 57.62% |
| Operating Income Growth % | - | 296.34% | 851.5% | -96.42% | -27.02% | 18.69% | 19.54% | 10.13% | 24.88% | 34.38% | -14.43% | -8.5% | 55.51% | 27.91% | 29.04% | 27.39% | 41.58% | 70.91% | -25.25% | -27.16% | -14.76% | 14.33% | 72.82% | 54.55% | 2594.81% | 104.42% | -1254.45% | -87.1% | - |
| Pretax Income | 392.26M | 336.16M | -96.22M | -180.26M | 310.99M | 436.54M | 282.9M | 201.24M | 156.49M | 131.23M | 57.38M | 97.93M | 141.64M | 120.87M | 130.32M | 98.67M | 75.36M | 53.74M | 23.55M | 23.47M | 41.19M | 52.23M | 38.85M | 29.42M | 8.09M | -9.72M | -30.99M | -2.2M | 12.6M |
| Pretax Margin % | 24.39% | 22.79% | -9.04% | -17.66% | 24.98% | 30.21% | 21.9% | 17.06% | 13.91% | 13.35% | 6.8% | 10.25% | 16% | 17.15% | 24.43% | 22.97% | 21.74% | 17.9% | 10.01% | 9.24% | 16.14% | 23.54% | 21.77% | 25.04% | 8.95% | -20.31% | -84.76% | -7.8% | 46.84% |
| Income Tax | 90.7M | 79.33M | 43.03M | 26.23M | 116.42M | 85.34M | 70.37M | 32.33M | 46.75M | 52.05M | 38.2M | 27.16M | 48.57M | 45.39M | 51.75M | 38.08M | 27.97M | 20.7M | 9.7M | 8.43M | 17.18M | 21.14M | 15.67M | 11M | -5.7M | 1.15M | -7.26M | -2.1M | 5.1M |
| Effective Tax Rate % | 23.12% | 23.6% | -44.72% | -14.55% | 37.44% | 19.55% | 24.88% | 16.07% | 29.88% | 39.66% | 66.59% | 27.74% | 34.29% | 37.55% | 39.71% | 38.59% | 37.11% | 38.51% | 41.2% | 35.92% | 41.71% | 40.47% | 40.34% | 37.4% | -70.53% | -11.83% | 23.42% | 95.45% | 40.48% |
| Net Income | 301.56M | 256.83M | -139.24M | -206.49M | 194.56M | 350.78M | 211.85M | 167.87M | 115.89M | 83.23M | 76.57M | 45.13M | 103.73M | 75.3M | 69.48M | 60.96M | 49.05M | 33.05M | 13.85M | 15.04M | 24.01M | 31.09M | 23.18M | 18.42M | 13.79M | -10.87M | -23.73M | -100K | 7.3M |
| Net Margin % | 18.75% | 17.41% | -13.09% | -20.23% | 15.63% | 24.28% | 16.4% | 14.23% | 10.3% | 8.47% | 9.08% | 4.73% | 11.71% | 10.69% | 13.02% | 14.19% | 14.15% | 11.01% | 5.88% | 5.92% | 9.41% | 14.02% | 12.99% | 15.68% | 15.26% | -22.71% | -64.91% | -0.35% | 27.14% |
| Net Income Growth % | 438.27% | 284.45% | 32.57% | -206.13% | -44.53% | 65.58% | 26.2% | 44.86% | 39.24% | 8.7% | 69.65% | -56.49% | 37.75% | 8.38% | 13.98% | 24.27% | 48.43% | 138.68% | -7.95% | -37.35% | -22.78% | 34.15% | 25.82% | 33.58% | 226.91% | 54.21% | -23630% | -101.37% | - |
| Net Income (Continuing) | 301.56M | 256.83M | -139.24M | -206.49M | 194.56M | 351.2M | 212.52M | 168.91M | 109.74M | 79.18M | 19.17M | 70.77M | 93.07M | 75.48M | 78.57M | 60.59M | 47.39M | 33.05M | 13.85M | 15.04M | 24.01M | 31.09M | 23.18M | 18.42M | 13.79M | -10.87M | -23.73M | -100K | 7.5M |
| EPS (Diluted) | 13.23 | 10.91 | -5.83 | -8.72 | 7.46 | 11.26 | 6.68 | 5.33 | 4.06 | 3.15 | 2.96 | 1.69 | 3.77 | 2.87 | 2.69 | 2.37 | 1.95 | 1.37 | 0.59 | 0.64 | 1.03 | 1.30 | 0.99 | 0.88 | 0.84 | -1.52 | -3.20 | -0.02 | 1.49 |
| EPS Growth % | 453.21% | 287.14% | 33.14% | -216.89% | -33.75% | 68.56% | 25.33% | 31.28% | 28.89% | 6.42% | 75.15% | -55.17% | 31.36% | 6.69% | 13.5% | 21.54% | 42.34% | 132.2% | -7.81% | -37.86% | -20.77% | 31.31% | 12.5% | 4.76% | 155.26% | 52.5% | -18185.71% | -101.17% | - |
| EPS (Basic) | - | 11.05 | -5.83 | -8.72 | 8.06 | 11.64 | 6.74 | 5.38 | 4.09 | 3.20 | 2.98 | 1.75 | 4.01 | 3.05 | 2.80 | 2.48 | 2.05 | 1.42 | 0.60 | 0.66 | 1.06 | 1.39 | 1.05 | 2.48 | 1.82 | -1.52 | -3.20 | -0.02 | 1.49 |
| Diluted Shares Outstanding | 22.79M | 23.53M | 23.87M | 23.67M | 26.09M | 31.15M | 31.71M | 31.47M | 28.57M | 26.41M | 25.91M | 26.65M | 27.5M | 26.2M | 25.84M | 25.69M | 25.09M | 24.08M | 23.58M | 23.39M | 23.39M | 24M | 23.48M | 20.87M | 16.46M | 7.16M | 7.42M | 5.71M | 4.9M |
Quick answers to the most common questions about buying ECPG stock.
For fiscal year 2025, Encore Capital Group, Inc. (ECPG) reported total revenue of $1.47B. This represents a 5382.9% increase compared to $26.9M in 1998.
Encore Capital Group, Inc. (ECPG) is profitable, generating $256.8M in net income for the fiscal year ending 2025 with a net profit margin of 14.6%.
Encore Capital Group, Inc. (ECPG) reported an operating income of $623.6M, resulting in an operating profit margin of 35.4%. This margin reflects the operational efficiency of the business before interest and taxes.
Encore Capital Group, Inc. (ECPG) generated $1.22B in gross profit for the year, representing a gross profit margin of 69.0%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Regulatory and legal collection constraints
Metrics are mathematically derived from official filings.
Revenue Momentum Driven by Collections
Total revenue surged to $491.9M in Q2 2026, up 11.2% year-over-year, driven by record global collections and portfolio purchases, according to recent earnings reports.
The revenue growth is primarily from non-interest income, which constitutes essentially all of total revenue, reflecting the company's debt purchasing model. The increase in collections suggests successful deployment of capital into new portfolios and effective recovery on existing ones. The negative net interest income is a data artifact of the accounting treatment for purchased credit-impaired loans, not a reflection of core operations.
Operating Efficiency Improves Sharply
Operating margin expanded to 38.0% in Q2 2026 from 34.1% in Q2 2025, as reported in financial statements, indicating strong operating leverage.
The efficiency ratio improved to 30.8% in Q1 2026, down from 40.1% in Q1 2025, suggesting that the company is controlling costs while revenue grows. This improvement is likely due to scale benefits and digital collection strategies. However, the efficiency ratio is volatile due to the lumpy nature of revenue recognition and adjustments, so investors should monitor trends over multiple quarters.
Provision Volatility Reflects Portfolio Dynamics
Provision for credit losses swung from $231.1M in Q2 2026 to a negative $44.4M in Q4 2025, based on reported figures, highlighting the impact of portfolio valuation adjustments.
The provision expense is not a traditional loan loss provision but rather reflects changes in expected cash flows on purchased receivables. The large provision in Q2 2026 may indicate increased purchasing activity or downward revisions in expected collections, while the negative provision in Q4 2025 suggests upward revisions. This volatility is inherent to the business model and should be analyzed in conjunction with ERC trends.
Non-Interest Income Dominates Revenue
Non-interest income accounted for 100% of total revenue in Q2 2026, as per SEC filings, underscoring the company's reliance on collections rather than traditional banking fees.
The fee income percentage is misleading because ECPG's revenue is entirely from collections on purchased debt, which is classified as non-interest income. This is a fundamental difference from traditional banks. The quality of this income depends on the performance of the underlying portfolios and the company's ability to collect efficiently. The recent record collections suggest strong execution, but the sustainability depends on the credit cycle and regulatory environment.
Earnings Inflection in 2026
Net income turned positive in Q1 2025 and has grown steadily, with Q2 2026 EPS of $2.81 beating estimates, according to company reports, signaling a strong recovery.
The company experienced a significant loss in Q4 2024, likely due to portfolio impairments or one-time charges, but has since rebounded strongly. The consistent improvement in EPS from $0.79 in Q1 2024 to $2.81 in Q2 2026 indicates that the company is benefiting from favorable market conditions, including rising charge-offs and efficient collections. This inflection point appears to be driven by both operational improvements and a favorable credit cycle.
Regulatory Overhang on Collections
Increased CFPB scrutiny on debt collection practices may constrain profitable collection channels, as noted in recent disclosures, posing a risk to future earnings.
The company's profitability is highly sensitive to its ability to collect on purchased debt, particularly through legal channels. Any regulatory changes that limit these methods could reduce collection rates and impair the value of existing portfolios. While the company has diversified geographically, the US market remains a significant portion of revenue. Investors should monitor regulatory developments and their potential impact on collection multiples and ERC.