Encore Capital Group (NASDAQ: ECPG) saw its stock price surge 7.58% in Thursday's trading session following the release of its impressive third-quarter 2025 financial results. The company significantly outperformed analyst expectations, demonstrating robust growth across its key markets.
The debt recovery solutions provider reported earnings per share of $3.17 for Q3, marking a substantial 152% increase from $1.26 in the same period last year. This figure handily beat the analyst consensus estimate of $1.83. Encore Capital's quarterly revenue also impressed, coming in at $460.353 million, up 25.41% year-over-year and surpassing the analyst estimate of $410.694 million by 12.09%. The company's net income for the quarter reached $74.66 million, significantly exceeding the expected $43.3 million.
Encore Capital's strong performance was driven by exceptional results in both its U.S. and European markets. In the U.S., the company's MCM business saw portfolio purchases increase by 13% to $261 million, while collections surged 25% to a record $502 million. The European Cabot business also delivered solid results, with higher-than-usual portfolio purchases of $85 million and collections growth of 8% to $160 million. In light of these positive outcomes, 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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