AI-extracted from the 10-Q filed 2026-08-05 — Q2 FY2026 (quarter ended June 30, 2026). Every figure is machine-verified against the filing text on SEC EDGAR.
Q2 net income rose 9% YoY to $64.0M on 11.3% revenue growth to $491.9M, driven by strong U.S. collections over-performance and higher portfolio basis.
Biggest Revenue Drivers
Debt purchasing revenue$471.4M+13.1% YoY
Portfolio revenue increased 10.8% YoY on higher portfolio basis; recoveries above forecast drove 27.9% YoY increase in changes in recoveries.
Servicing revenue$18.2M-18.3% YoY
Decrease driven by lower BPO revenue and collection service fees.
Biggest Revenue Drivers
Total revenue: $491.9M+11.3% YoY
Debt purchasing revenue$471.4M+13.1% YoY
Portfolio revenue increased 10.8% YoY on higher portfolio basis; recoveries above forecast drove 27.9% YoY increase in changes in recoveries.
Servicing revenue$18.2M-18.3% YoY
Decrease driven by lower BPO revenue and collection service fees.
Other revenues$2.3M-25.0% YoY
Lower gains on sales of real estate assets.
Largest Expense Items
Cost of legal collections$96.6M+21.3% YoY
Increased legal placements in the United States; court costs rose 22.0% YoY.
Salaries and employee benefits$119.6M+1.6% YoY
Higher employee benefits and stock-based compensation offset by slight salary increases.
General and administrative expenses$38.7M-6.3% YoY
Decreased consulting fees of $4.4M, partially offset by higher IT expenses.
Interest expense$73.9M—% YoY
Slight increase in stated interest offset by lower interest rates; interest paid relatively flat YoY.
Margins: Operating margin expanded to 38.0% from 34.1% YoY, reflecting operating leverage from 11.3% revenue growth and 4.7% operating expense growth. Loss on extinguishment of debt of $30.5M from debt refinancings reduced net income growth despite strong operational performance.
Watch Items from the Filing
Convertible notes due March 2029 ($230M) were called for redemption on September 24, 2026 at par plus accrued interest; company expects capped call option unwinding to generate additional cash proceeds.
U.S. collections benefited from new technologies and digital capabilities driving over-performance of $53.1M in Q2 2026 vs. forecast, primarily in early portfolio stages; management notes this sustained over-performance for recent vintages.
European portfolio pricing remains competitive, constraining capital deployment; European capital deployments increased only modestly to $71.5M in Q2 vs. $49.8M YoY.
Forward flow purchase agreements in place for minimum $557.4M; expected actual purchases significantly higher; supply remains robust with lending and charge-off rates elevated.
Available capacity under Global Senior Facility was $793.4M as of June 30, 2026; company maintains material compliance with all financing covenants and sufficient liquidity for next 12 months.
AI-extracted and verified against SEC EDGAR filing text. Not investment advice.
About ENCORE CAPITAL GROUP INC (ECPG): stock profile, AI score and financials
ENCORE CAPITAL GROUP INC (ECPG) stock profile, AI quality score, and SEC EDGAR financial data, a Financials sector company. 13F Pro's AI-powered ranking engine scores ECPG at 70.3/100 on a composite quality score built from its SEC filings, placing it at rank #213 of 2,925 stocks — the top 10% of the AI-ranked universe. ECPG scores in the top quartile across revenue growth (82.8), profitability (80.0). Areas of concern include earnings quality (18.3) and institutional flow (25.0), which score below median versus the broader universe. Based on the latest XBRL financial filings (Q2 2026), ENCORE CAPITAL GROUP INC reports quarterly revenue of $491.9M, net income of $64.0M, an operating margin of 38.0%. Top institutional holders of ECPG by reported 13-F value include BlackRock, VANGUARD PORTFOLIO MANAGEMENT, LINDEN ADVISORS, based on the most recent SEC filings. ECPG trades on the Nasdaq exchange and files with the SEC under CIK 1084961. 13F Pro's AI research platform runs 10 specialized AI analysts — value, growth, momentum, macro, and activist specialists — that debate ECPG daily and publish AI-generated analysis with cited SEC sources. The platform aggregates historical XBRL financial facts, 10-Q and 10-K filings, insider Form 4 transactions, and institutional 13-F holdings for ENCORE CAPITAL GROUP INC directly from SEC EDGAR.