Revenue growth has been consistent, rising from $277.4 million in 2023Q4 to $472.9 million in 2026Q1, though gross margins remain volatile, swinging from 31.5% in 2024Q4 to 69.5% in 2026Q1.
| 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 | 167.03M | -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 % | 640.24% | -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 % | 3.06% | -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 | 286.83M | 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 | 209.57M | 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 | 1.4B | 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 % | 75.45% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 97.48% | 97.32% | 97.94% | 98.12% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% |
| Total Revenue | 1.85B | 1.76B | 1.32B | 1.22B | 1.4B | 1.61B | 1.5B | 1.4B | 1.36B | 1.19B | 1.03B | 1.13B | 1.04B | 773.36M | 556.78M | 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 |
| Revenue Growth % | 148.54% | 33.89% | 7.66% | -12.56% | -13.39% | 7.53% | 7.42% | 2.62% | 14.74% | 15.33% | -8.91% | 8.29% | 34.92% | 38.9% | 24.07% | 23.18% | 15.13% | 23.65% | 0.74% | -0.44% | 15.01% | 24.29% | 51.89% | 30.01% | 88.9% | 30.87% | 29.65% | 4.83% | - |
| Non-Interest Expense | 672.27M | 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 | 36.36% | 33.6% | 33.9% | 45.37% | 21.99% | 18.25% | 20.04% | 22.07% | 24.56% | 25.53% | 26.2% | 28.12% | 24.63% | 24.56% | 20.94% | 17.73% | 17.68% | 78.94% | 84.76% | 40.03% | 51.52% | 30.87% | 43.02% | 40.7% | 48.58% | 97.87% | 163.15% | 73.4% | 35.32% |
| Operating Income | 680.28M | 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 % | 36.79% | 35.38% | 11.95% | 1.35% | 33.05% | 39.22% | 35.54% | 31.93% | 29.76% | 27.34% | 23.46% | 24.98% | 29.56% | 25.65% | 27.85% | 26.78% | 25.9% | 21.06% | 15.24% | 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 | 387.43M | 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 % | 20.95% | 19.07% | -7.31% | -14.74% | 22.24% | 27.04% | 18.84% | 14.4% | 11.49% | 11.05% | 5.57% | 8.67% | 13.57% | 15.63% | 23.41% | 21.99% | 20.69% | 16.98% | 9.2% | 9.24% | 16.14% | 23.54% | 21.77% | 25.04% | 8.95% | -20.31% | -84.76% | -7.8% | 46.84% |
| Income Tax | 91.15M | 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 % | 23.53% | 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 | 296.28M | 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 % | 16.02% | 14.57% | -10.58% | -16.89% | 13.91% | 21.73% | 14.11% | 12.01% | 8.51% | 7.01% | 7.44% | 3.99% | 9.94% | 9.74% | 12.48% | 13.58% | 13.46% | 10.44% | 5.41% | 5.92% | 9.41% | 14.02% | 12.99% | 15.68% | 15.26% | -22.71% | -64.91% | -0.35% | 27.14% |
| Net Income Growth % | 356.11% | 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) | 296.28M | 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) | 13.27 | 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 % | 363.6% | 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 | 22.32M | 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 |
Regulatory and compliance exposure
According to the provided quarterly income statements, ECPG has demonstrated a clear revenue growth trajectory, climbing from $277.4 million in 2023Q4 to $472.9 million by 2026Q1, reflecting the company's successful deployment of capital into a rising supply of delinquent consumer debt portfolios across its core markets.
The consistent quarterly revenue expansion suggests that the company is effectively capitalizing on the current credit cycle, where increased charge-offs provide a larger inventory of assets. Investors should monitor whether this growth remains organic or if it becomes increasingly dependent on aggressive portfolio pricing that could compress future yields.
As reported in financial statements, ECPG's gross margins have exhibited significant volatility, swinging from a low of 31.5% in 2024Q4 to a robust 69.5% in 2026Q1, which highlights the inherent sensitivity of the company's accounting to estimated remaining collections and periodic portfolio impairment adjustments.
The wide variance in gross margins suggests that the company's profitability is highly dependent on the accuracy of its actuarial modeling and the performance of its purchased debt. The recent stabilization at higher margin levels appears to indicate a successful recalibration of collection expectations following the prior period's accounting-driven losses.
Based on ECPG's reported figures, the company has successfully leveraged its fixed-cost base, with operating income scaling from a deficit in 2024Q4 to $183.0 million in 2026Q1, demonstrating an improved ability to convert gross profit into bottom-line earnings through disciplined management of its collection infrastructure.
The expansion of operating margins to 38.7% in the most recent quarter suggests that the company is benefiting from economies of scale within its legal and digital collection platforms. This trend warrants further investigation into whether these efficiencies are sustainable or if they are merely a function of higher collection volumes.
Data from the income statement indicates that ECPG's net income has experienced extreme fluctuations, including significant losses in 2023Q4 and 2024Q4, which suggests that reported EPS may be heavily influenced by non-cash impairment charges rather than purely operational cash flow performance during those specific periods.
The transition from substantial net losses to consistent profitability in recent quarters implies that the company has moved past a period of significant balance sheet cleanup. Investors should remain cautious, as the reliance on effective interest method accounting can mask underlying cash flow trends through non-cash adjustments.
While recent performance appears strong, a critical analysis of the income statement suggests that the rapid growth in revenue and margins may be vulnerable to a reversal if collection multiples decline due to increased competition or a deterioration in the underlying quality of purchased debt portfolios.
The historical volatility in net income, particularly the sharp losses in late 2023 and 2024, serves as a reminder that the business model is susceptible to sudden, large-scale adjustments in asset valuations. Market participants should consider whether the current profitability levels are sustainable or if they represent a cyclical peak.
Quick answers to the most common questions about buying ECPG stock.
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.