Encore Capital Group, Inc. (ECPG)

In February 2025, Encore Capital reported a net loss, leading to a stock price drop and securities fraud investigations. In May 2025, the company reported first-quarter earnings surpassing estimates. In August 2025, Encore Capital Group reported earnings per share exceeding estimates, with revenue also surpassing expectations and global portfolio purchases surging. As of October 17, 2025, Encore Capital Group's stock had outperformed the S&P 500 over the past six months, but the share price experienced some decline later in the month. The company is scheduled to release its financial results for the third quarter 2025 on Wednesday, November 5, 2025.

While specific details on demand seasonality are limited, Encore Capital Group's business is influenced by economic cycles and consumer financial health. Debt recovery efficiency and portfolio value fluctuate with economic conditions, suggesting sensitivity to broader economic trends. The company's Q3 2024 performance was driven by seasonality tailwinds, indicating periods more favorable for collections. Encore leverages advanced analytics to adapt to seasonal patterns in consumer repayment behavior or debt availability.

Encore Capital Group, Inc. is a global specialty finance company providing debt recovery solutions for consumers and credit management services for businesses. Founded in 1998 and headquartered in San Diego, California, Encore purchases defaulted consumer receivables at a discount and works with individuals to recover the outstanding amounts. The company offers debt purchasing, debt recovery, consumer engagement, credit management services, early stage collection, business process outsourcing, contingent collection services, debt servicing, and portfolio management. Encore operates through Midland Credit Management (MCM) in the U.S. and Cabot Credit Management (Cabot) in Europe.

Encore Capital Group has a significant global presence with operations and investments across North America, Europe, Asia, and Latin America. The company's geographic footprint includes the United States, the United Kingdom, Ireland, France, Spain, Costa Rica, and India. Its market presence spans North America, South America, and Europe.

Encore Capital Group's reputation has been impacted by increased consumer complaints, regulatory challenges, and securities fraud investigations. Consumer complaints against Encore Capital Group increased in 2023, and the company incurred legal and compliance-related expenses while facing regulatory investigations. Law firms announced investigations into Encore Capital Group concerning possible violations of federal securities laws following the company's reported net loss in Q4 2024. Despite these challenges, Encore Capital Group aims to provide a fair and respectful pathway for consumers and emphasizes customer service and regulatory compliance.

The ownership structure of Encore Capital Group stock includes institutional, retail, and individual investors. Institutional investors own approximately 37.11% to 64.38% of the company's stock, with major shareholders including BlackRock, Inc. and Vanguard Group Inc. Insiders own approximately 4.35% of the company's stock, with Willem Mesdag being the largest individual shareholder. Retail investors hold approximately 27.26% to 31.28% of the stock.