Encore Capital : Overview – May/June 2026 (ea5f08)

Published: 2026-05-12 16:27:08 ET ECPG

Published on 05/12/2026 at 04:27 pm EDT

Encore Capital Group, Inc.

May/June 2026

7350

ENCORE ENABLES THE FUNCTIONING

OF A HEALTHY CREDIT ECOSYSTEM

Encore's primary business is the purchase and collection of charged-off consumer debt in the U.S. and Europe

By purchasing NPL portfolios, we return capital to banks, enabling further lending and thus playing a key role in the consumer credit ecosystem. Our two largest operating units are Midland Credit Management (U.S.) and Cabot Credit Management (Europe).

Encore Capital Group, Inc.

Our Strategy

Market Focus: Concentrating on our most valuable markets

with the highest risk-adjusted returns

Competitive Advantage: Innovating and executing to enhance our

competitive advantages

Balance Sheet Strength: Continuing focus on the strength of our

balance sheet

Encore Capital Group, Inc. 4

Market leader in the United States

25+ years in operation

Market Presence

One of the largest players in the U.K. (20+ years in operation)

Building strength in select European markets (France and Spain)

Capital Deployed

LTM Q1 2026

Europe

16%

U.S.

84%

Total $1.4b

Avg Receivable Portfolios(1)

Revenues

Q1 2026

Europe

35%

U.S.

65%

Avg Balance $4.4b

Other

<1%

Collections

LTM Q1 2026

Total $2.7b

Europe 24%

U.S. 76%

Other

<1%

LTM Q1 2026

Total $1.85b

DP(3)

95%

(2)

Other

Encore Capital Group, Inc.

Source:Company filings.

Represents the average of receivable portfolios for the quarter (the sum of receivable portfolios at the beginning and end of the quarter divided by 2).

Represents servicing revenue and other revenues.

DP (debt purchasing) represents revenues from owned receivable portfolios. 5

Buy well

Purchasing portfolios at attractive returns

Disciplined portfolio purchasing underpinned by superior data and analytics capabilities

Fund competitively

Low-cost funding and balance sheet strength

Long-term financial strength enabled by robust balance sheet and credit profile

Virtuous cycle of value creation

Collect efficiently

Operational excellence, advanced analytics, and our consumer-centric approach drive industry-leading returns

Encore Capital Group, Inc. 6

▪

Maintain a strong BB debt

rating

Target leverage1 between

2.0x and 3.0x

Preserve financial flexibility

Balance Sheet Objectives

Deliver strong ROIC through the credit cycle

Encore Capital Group, Inc.

Capital Allocation Priorities

▪

Portfolio purchases at

attractive returns

▪

Share repurchases

▪

Strategic M&A

▪

Leverage defined as Net Debt / (LTM Adjusted EBITDA + LTM collections applied to principal balance), which we also refer to as our Leverage Ratio 7

Encore Capital Group, Inc.

Q1 2026 Results

Portfolio Purchases

Collections

Average Receivable Portfolios1

$363M

$718M

$4.40B

down 1%

up 19%

up 14%

Leverage2

Net Income

EPS

2.3x

0.3x lower

$86.2M

up 84%

$3.86

up 100%

Represents the average of receivable portfolios for the quarter (the sum of receivable portfolios at the beginning and end of the quarter divided by 2).

Leverage (or leverage ratio) utilizes non-GAAP metrics and is defined as Net Debt ÷ (LTM Adjusted EBITDA + LTM collections applied to principal balance). See appendix for calculation and a reconciliation to GAAP.

Note: All comparisons are between Q1 2026 and Q1 2025

Encore Capital Group, Inc. 9

Portfolio Purchases (in $M)

368 367 346

363

316

317

261

327

279

316

13%

87%

Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026

United States Europe

Encore Capital Group, Inc. 10

Collections by Geography (in $M)

605

+19%

655 663 670

718

161

150

164

160

167

454

490

502

503

556

Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026

United States Europe Other

Note: Global, U.S. and Europe collections for Q1 2026 were 106%, 106% and 105% (106%, 106% and 105% also in constant currency), respectively, of the Dec 31, 2025 portfolio ERC forecasts for portfolios purchased prior to Dec 31, 2025.

Encore Capital Group, Inc. 11

Encore TTM Cash Generation1 (in $M)

2000

1600

+21%

1200

800

400

Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026

TTM adjusted EBITDA

TTM collections applied to principal balance

Trailing Twelve Month ("TTM") cash generation defined as TTM adjusted EBITDA + TTM collections applied to principal balance.

See appendix for reconciliation of Adjusted EBITDA to GAAP net income.

Encore Capital Group, Inc. 12

Robust U.S. portfolio supply driven by high charge off rate combined with continued strong lending

Outstanding U.S. Revolving Credit and U.S. Credit Card Charge Off Rate

1400

1200

1000

$ Billions

800

600

400

4.11%

Q4 2025

$1.33T 6%

Feb 2026

200 1%

0 0%

2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026

U.S. revolving credit U.S. credit card charge off rate

Encore Capital Group, Inc.

Source: U.S. Federal Reserve, seasonally adjusted 13

U.S. Bankcard Balance Delinquency Rates

4.5%

4.0%

% of Balances Past Due

3.5%

3.0%

2.5%

2.0%

1.5%

1.0%

0.5%

0.0%

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026

30+ Days 60+ Days 90+ Days

Encore Capital Group, Inc.

Source: TransUnion 14

MCM Collections (in $M)

MCM (U.S.)

Portfolio supply in the U.S. remains robust

Solid MCM portfolio purchases of $316M in Q1 2026

Record MCM collections of $556M in Q1 2026 increased by 23% compared to Q1 2025

Collections performance driven by:

Deployment of new technologies

Enhanced digital capabilities

Continued operational innovation

Growing and resilient payer book

Consumer payment behavior remains stable

+23%

454

490

502

503

556

Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026

Encore Capital Group, Inc. 15

Cabot Collections (in $M)

Cabot (Europe)

Cabot portfolio purchases of $47M in Q1 2026 in line with historical trend

U.K. market remains impacted by subdued consumer lending, low delinquencies and robust competition

Cabot collections in Q1 2026 of $161M increased by 7% compared to Q1 2025.

Cabot's focus on costs continues

150

+7%

167

161

160

164

Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026

Encore Capital Group, Inc. 16

We continue to proactively manage our balance sheet and have no significant maturities until 2028

Encore Capital Group, Inc.

Does not include other borrowings of approximately $55M. 17

Excludes client cash that was collected on behalf of, and remains payable to, third party clients.

Cabot Securitisation Facility 8% Convertible Notes 6%

Bonds 58%

U.S. Facility 11%

Revolving Credit Facility 17%

As of March 31, 2026, available liquidity was $1,001M (available RCF of $791M and cash2 of $210M).

In March we extended the maturity date of our Cabot Securitisation Facility by one year to January 2031.

230

450

649

331

337

480

500

Debt Maturity Profile at March 31, 2026 (in $M)1

2031

2030

2029

2028

2027

2026

500

837

1,379

1,292

Encore Capital Group, Inc.

Looking Forward

2025 Result

Updated 2026 Guidance2

Portfolio purchases

$1.4B

Between $1.4B and $1.5B

Collections

$2.6B

Increase 8% to $2.8B

Earnings per share

$10.91

Increase 19% to $13.00

Encore Capital Group, Inc.

Guidance updated on May 6, 2026

Interest expense + other income of $300M

Effective tax rate to be in the mid-20's %

In constant currency 19

We put people first and engage with honesty, empathy and respect

We deliver our best in everything we do, find ways to make a positive difference, and achieve impactful results

Encore Capital Group, Inc. 20

Disclaimer

Encore Capital Group Inc. published this content on May 12, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 12, 2026 at 20:22 UTC.