Encore Capital Group (NASDAQ: ECPG) saw its stock surge 7.58% in Thursday's trading session following the release of its impressive third-quarter 2025 financial results. The company's performance significantly exceeded analyst expectations, driven by strong growth in its U.S. operations and improved collections across its global portfolio.
The debt recovery solutions provider reported quarterly earnings of $3.17 per share, dramatically surpassing the analyst consensus estimate of $1.83 by 73.03%. This represents a substantial 151.59% increase from the $1.26 per share reported in the same period last year. Encore Capital's revenue for the quarter reached $460.353 million, beating the analyst consensus estimate of $410.694 million by 12.09% and marking a 25.41% year-over-year increase.
Ashish Masih, President and CEO of Encore Capital Group, highlighted the company's strong performance, stating, "Encore delivered another quarter of strong performance in Q3 as our industry leadership and operational improvement become increasingly evident in our results." The company's MCM business in the U.S. was a key driver, with portfolio purchases up 13% to $261 million and record collections of $502 million, up 25% compared to the previous year. Additionally, Encore Capital raised its full-year 2025 collections guidance to approximately $2.55 billion and announced a $300 million share repurchase program reauthorization, further boosting investor confidence.
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