Investing
Encore Capital (ECPG) Jumps on Q3 Profit, Higher Guidance
Encore Capital stock rose 14.5% after third quarter EPS climbed 76% to $5.57 on record collections of $754 million and the company raised 2026 guidance.
Encore Capital stock (ECPG) was up 14.5% in early regular-session trading on November 5, 2026, the morning after the debt buyer reported third quarter results. Diluted earnings per share (profit divided by all shares, including those that could be issued) rose 76% to $5.57, and the company raised its full-year 2026 guidance.
What Encore Capital reported
| Metric | Q3 2026 | Q3 2025 | Change |
|---|---|---|---|
| Collections | $753.8M | $663.0M | +14% |
| Revenues | $544.5M | $460.4M | +18% |
| Net income | $124.0M | $74.7M | +66% |
| Diluted EPS | $5.57 | $3.17 | +76% |
| Portfolio purchases | $389.7M | $346.1M | +13% |
Guidance, the company's own forecast, now calls for 2026 portfolio purchases of $1.50 billion to $1.55 billion, collections of $2.90 billion to $2.95 billion (12% to 14% growth) and EPS of $15.50 to $16.00, more than 40% above 2025.
The U.S. business, MCM, drove the quarter with record collections of $589 million, up 17%, while Cabot in Europe collected $164 million, up 2%. EPS grew faster than profit because diluted shares fell to 22.3 million from 23.5 million; Encore bought back about $27 million of stock in the quarter and $73 million so far this year.
Why the stock rose 14.5%
The jump was about seven and a half times the size of a typical day's swing for this stock. Profit came in well above what analysts expected, and the higher outlook pointed to another strong year. One detail stands out: "changes in recoveries", the extra income booked when collections run ahead of the company's earlier forecasts, rose to $111.0 million from $63.6 million a year earlier.
What to watch next for Encore Capital stock
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Fourth quarter results, to track progress toward the $15.50 to $16.00 EPS range.
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Whether U.S. portfolio supply stays as robust as management described.
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Whether Cabot's collections growth in Europe picks up.
FAQ
What does Encore Capital Group do?
The San Diego company buys portfolios of unpaid consumer debts from banks, credit unions and utility providers, then works with individuals to repay them.
How much does Encore Capital expect to collect from the debts it already owns?
Estimated remaining collections, the cash Encore expects from portfolios it holds, stood at $10.45 billion at the end of the quarter, up 10% from $9.49 billion a year earlier.
Sources
This article is for information only and is not investment advice.