# ENCORE CAPITAL GROUP INC (ECPG) Informational only - not investment advice. CIK: 0001084961 SIC: 6153 Short-Term Business Credit Institutions SIC breadcrumb: [Finance, Insurance, And Real Estate](/division/H/) > [SIC Major Group 61](/major-group/61/) > [SIC 6153 Short-Term Business Credit Institutions](/industry/6153/) Latest 10-K filed: 2026-02-25 SEC page: https://www.sec.gov/edgar/browse/?CIK=1084961 Filing source: https://www.sec.gov/Archives/edgar/data/1084961/000108496126000009/ecpg-20251231.htm ## At a glance FY2025 · period end 2025-12-31 · filed 2026-02-25 · accession 0001084961-26-000009 · source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001084961.json | Metric | Value | FY | Provenance | | --- | ---: | ---: | --- | | Revenue | 1,768,802,000 USD | 2025 | verified | | Net income | 256,834,000 USD | 2025 | verified | | Assets | 5,339,800,000 USD | 2025 | verified | | Free cash flow | 126,929,000 USD | 2025 | computed | | Net margin | 14.52% | 2025 | computed | | Operating margin | 35.43% | 2025 | computed | | Revenue YoY | +34.37% | 2025 | computed | | ROE | 26.29% | 2025 | computed | Computed values are grepcent-computed from the verified facts above and may differ from ratios the company itself reports. Free cash flow = operating cash flow − capital expenditures. Net margin = net income ÷ revenue. Operating margin = operating income ÷ revenue. Revenue YoY = FY2025 revenue ÷ FY2024 revenue − 1 (consecutive fiscal years only). ROE = net income ÷ period-end stockholders' equity. No market price, no rating, no forecast on this site. Not investment advice. ### Peer percentile fingerprint | Ratio | ECPG | Peer median | Percentile | N | | --- | ---: | ---: | ---: | ---: | | Net margin | 14.5% | 6.6% | 72 | 58 | | Operating margin | 35.4% | 0.7% | 86 | 29 | | Revenue growth | 34.4% | 18.6% | 69 | 59 | | FCF margin | 7.2% | -7.3% | 64 | 48 | | ROE | 26.3% | 7.3% | 86 | 58 | | ROA | 4.8% | 1.0% | 88 | 60 | | Liabilities / equity | 4.47 | 3.99 | 54 | 58 | Percentile = share of the N covered peers reporting that ratio whose value is lower (ties counted half); computed among grepcent-covered companies in SIC major-group 61 SIC Major Group 61, not the whole market. A higher percentile means a higher value of the ratio, not a better company. Ratios with fewer than 8 reporting peers are omitted. Latest reported values per company; fiscal periods may differ. Descriptive arithmetic - not a score, rating, or ranking. ## Selected Fundamentals | Metric | Value | Unit | FY | Filed | | --- | ---: | --- | ---: | --- | | Revenue | 1768802000 | USD | 2025 | 2026-02-25 | | Net income | 256834000 | USD | 2025 | 2026-02-25 | | Assets | 5339800000 | USD | 2025 | 2026-02-25 | ## Financials Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-02-25. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001084961.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts. | Metric | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | | --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | | Revenue | | 1,113,435,000 | 1,145,802,000 | 1,320,557,000 | 1,405,789,000 | 1,501,400,000 | 1,614,499,000 | 1,398,347,000 | 1,222,680,000 | 1,316,361,000 | 1,768,802,000 | | Net income | | 76,570,000 | 83,228,000 | 115,886,000 | 167,869,000 | 211,848,000 | 350,782,000 | 194,564,000 | -206,492,000 | -139,244,000 | 256,834,000 | | Operating income | | 241,514,000 | 324,540,000 | 405,300,000 | 446,345,000 | 533,562,000 | 633,272,000 | 462,174,000 | 16,535,000 | 157,330,000 | 626,647,000 | | Diluted EPS | | 2.96 | 3.15 | 4.06 | 5.33 | 6.68 | 11.26 | 7.46 | -8.72 | -5.83 | 10.91 | | Operating cash flow | | 130,332,000 | 123,818,000 | 186,791,000 | 244,733,000 | 312,864,000 | 303,053,000 | 210,681,000 | 152,991,000 | 156,168,000 | 153,199,000 | | Capital expenditures | | 31,668,000 | 28,126,000 | 67,475,000 | 39,602,000 | 34,600,000 | 33,372,000 | 37,224,000 | 24,807,000 | 29,007,000 | 26,270,000 | | Share buybacks | 33,185,000 | 0.00 | 0.00 | | 0.00 | 0.00 | 390,606,000 | 87,006,000 | 0.00 | 0.00 | 90,402,000 | | Assets | | 3,670,497,000 | 4,490,712,000 | 4,631,875,000 | 4,909,950,000 | 4,864,523,000 | 4,608,125,000 | 4,508,360,000 | 4,630,486,000 | 4,789,729,000 | 5,339,800,000 | | Liabilities | | 3,069,982,000 | 3,766,801,000 | 3,812,187,000 | 3,884,544,000 | 3,644,447,000 | 3,422,864,000 | 3,328,733,000 | 3,693,948,000 | 4,022,398,000 | 4,363,050,000 | | Stockholders' equity | | 551,765,000 | 571,933,000 | 819,688,000 | 1,025,406,000 | 1,220,076,000 | 1,185,261,000 | 1,179,627,000 | 936,538,000 | 767,331,000 | 976,750,000 | | Cash and cash equivalents | | 149,765,000 | 212,139,000 | 157,418,000 | 192,335,000 | 189,184,000 | 189,645,000 | 143,912,000 | 158,364,000 | 199,865,000 | 156,784,000 | | Free cash flow | | 98,664,000 | 95,692,000 | 119,316,000 | 205,131,000 | 278,264,000 | 269,681,000 | 173,457,000 | 128,184,000 | 127,161,000 | 126,929,000 | ### Ratios ROE and ROA use period-end equity/assets. Liabilities / equity uses total liabilities divided by stockholders' equity. Current ratio uses current assets divided by current liabilities when both are reported. | Metric | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | | --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | | Net margin | | 6.88% | 7.26% | 8.78% | 11.94% | 14.11% | 21.73% | 13.91% | -16.89% | -10.58% | 14.52% | | Operating margin | | 21.69% | 28.32% | 30.69% | 31.75% | 35.54% | 39.22% | 33.05% | 1.35% | 11.95% | 35.43% | | Return on equity | | 13.88% | 14.55% | 14.14% | 16.37% | 17.36% | 29.60% | 16.49% | -22.05% | -18.15% | 26.29% | | Return on assets | | 2.09% | 1.85% | 2.50% | 3.42% | 4.35% | 7.61% | 4.32% | -4.46% | -2.91% | 4.81% | | Liabilities / equity | | 5.56 | 6.59 | 4.65 | 3.79 | 2.99 | 2.89 | 2.82 | 3.94 | 5.24 | 4.47 | ## As-reported value updates 2 tracked differences above grepcent's stated thresholds were found between the earliest XBRL-filed value and the value currently on file for the same fiscal period. Ledger: /company/ECPG/revisions/ ## Quarterly Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-08-05. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001084961.json. Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived. | Quarter | End date | Revenue | Net income | Diluted EPS | Method | | --- | --- | ---: | ---: | ---: | --- | | 2022-Q3 | 2022-09-30 | | | 1.22 | reported discrete quarter | | 2023-Q1 | 2023-03-31 | | | 0.75 | reported discrete quarter | | 2023-Q2 | 2023-06-30 | | | 1.08 | reported discrete quarter | | 2023-Q3 | 2023-09-30 | 309,619,000 | 19,339,000 | 0.79 | reported discrete quarter | | 2023-Q4 | 2023-12-31 | 277,387,000 | -270,762,000 | | derived Q4 = FY annual - nine-month YTD | | 2024-Q1 | 2024-03-31 | 328,386,000 | 23,239,000 | 0.95 | reported discrete quarter | | 2024-Q2 | 2024-06-30 | 355,285,000 | 32,181,000 | 1.34 | reported discrete quarter | | 2024-Q3 | 2024-09-30 | 367,071,000 | 30,643,000 | 1.26 | reported discrete quarter | | 2024-Q4 | 2024-12-31 | 265,619,000 | -225,307,000 | | derived Q4 = FY annual - nine-month YTD | | 2025-Q1 | 2025-03-31 | 392,775,000 | 46,796,000 | 1.93 | reported discrete quarter | | 2025-Q2 | 2025-06-30 | 442,122,000 | 58,721,000 | 2.49 | reported discrete quarter | | 2025-Q3 | 2025-09-30 | 460,353,000 | 74,660,000 | 3.17 | reported discrete quarter | | 2025-Q4 | 2025-12-31 | 473,552,000 | 76,657,000 | | derived Q4 = FY annual - nine-month YTD | | 2026-Q1 | 2026-03-31 | 475,411,000 | 86,243,000 | 3.86 | reported discrete quarter | | 2026-Q2 | 2026-06-30 | 491,872,000 | 63,999,000 | 2.81 | reported discrete quarter | ## Filed narrative (10-K & 10-Q) ## Business Verbatim Item 1 Business section from ECPG's latest 10-K: [/company/ECPG/business/](/company/ECPG/business/). ## Risk Factors Verbatim Item 1A Risk Factors from ECPG's latest 10-K: [/company/ECPG/risk-factors/](/company/ECPG/risk-factors/). ## Latest quarter (10-Q) Latest 10-Q source: https://www.sec.gov/Archives/edgar/data/1084961/000108496126000058/ecpg-20260630.htm Extracted structurally from real Item 2 body heading to real Item 3/4 boundary. Confidence: high Filing date: 2026-08-05 Report date: 2026-06-30 Item 2 – Management’s Discussion and Analysis of Financial Condition and Results of Operations This Quarterly Report on Form 10-Q contains “forward-looking statements” relating to Encore Capital Group, Inc. (“Encore”) and its subsidiaries (which we may collectively refer to as the “Company,” “we,” “our” or “us”) within the meaning of the securities laws. The words “believe,” “expect,” “anticipate,” “estimate,” “project,” “intend,” “plan,” “will,” “may,” and similar expressions often characterize forward-looking statements. These statements may include, but are not limited to, projections of collections, revenues, income or loss, estimates of capital expenditures, plans for future operations, products or services, and financing needs or plans, as well as assumptions relating to these matters. Although we believe that the expectations reflected in these forward-looking statements are reasonable, we caution that these expectations or predictions may not prove to be correct or we may not achieve the financial results, savings, or other benefits anticipated in the forward-looking statements. These forward-looking statements are necessarily estimates reflecting the best judgment of our senior management and involve a number of risks and uncertainties, some of which may be beyond our control or cannot be predicted or quantified, that could cause actual results to differ materially from those suggested by the forward-looking statements. Many factors including, but not limited to, those set forth in our Annual Report on Form 10-K under “Part I, Item 1A—Risk Factors” could cause our actual results, performance, achievements, or industry results to be very different from the results, performance, achievements or industry results expressed or implied by these forward-looking statements. Our business, financial condition, or results of operations could also be materially and adversely affected by other factors besides those listed. Forward-looking statements speak only as of the date the statements were made. We do not undertake any obligation to update or revise any forward-looking statements to reflect new information or future events, or for any other reason, even if experience or future events make it clear that any expected results expressed or implied by these forward-looking statements will not be realized. In addition, it is generally our policy not to make any specific projections as to future earnings, and we do not endorse projections regarding future performance that may be made by third parties. Our Business We are an international specialty finance company providing debt recovery solutions and other related services for consumers across a broad range of financial assets. We primarily purchase portfolios of defaulted consumer receivables at deep discounts to face value and manage them by working with individuals as they repay their obligations and work toward financial recovery. Defaulted receivables are consumers’ unpaid financial obligations to credit originators, including banks, credit unions, consumer finance companies and commercial retailers. Defaulted receivables may also include receivables subject to bankruptcy proceedings. We also provide debt servicing and other portfolio management services to credit originators for non-performing loans in Europe. Encore Capital Group, Inc. (“Encore”) has three business units: MCM, which consists of Midland Credit Management, Inc. and its subsidiaries and domestic affiliates; Cabot, which consists of Cabot Credit Management Limited and its subsidiaries and European affiliates, and LAAP, which is comprised of our investments and operations in Latin America and Asia-Pacific. MCM (United States) Through MCM, we are a market leader in portfolio purchasing and recovery in the United States. Cabot (Europe) Through Cabot, we are one of the largest credit management services providers in Europe and the United Kingdom. Cabot, in addition to its primary business of portfolio purchasing and recovery, also provides a range of debt servicing offerings such as early stage collections, business process outsourcing (“BPO”), and contingent collections, including through Wescot Credit Services Limited (“Wescot”). LAAP (Latin America and Asia-Pacific) We have purchased non-performing loans in Mexico. Additionally, we have a subsidiary Encore Asset Reconstruction Company (“EARC”) in India. To date, operating results from LAAP have not been significant to our total consolidated operating results. Our long-term growth strategy is focused on continuing to invest in our core portfolio purchasing and recovery business in the United States and United Kingdom and strengthening and developing our business in France and Spain. Government Regulation MCM (United States) As discussed in more detail under “Part I - Item 1 - Business - Government Regulation” contained in our Annual Report on Form 10-K, our operations in the United States are subject to federal, state and municipal statutes, rules, regulations and 25 Table of Contents ordinances that establish specific guidelines and procedures that debt purchasers and collectors must follow when collecting consumer accounts, including among others, specific guidelines and procedures for communicating with consumers and prohibitions on unfair, deceptive or abusive debt collection practices. Cabot (Europe) As discussed in more detail under “Part I - Item 1 - Business - Government Regulation” contained in our Annual Report on Form 10-K, our operations in Europe are affected by foreign statutes, rules and regulations regarding debt collection and debt purchase activities. These statutes, rules, regulations, ordinances, guidelines and procedures are modified from time to time by the relevant authorities charged with their administration, which could affect the way we conduct our business. Portfolio Purchasing and Recovery MCM (United States) In the United States, the defaulted consumer receivable portfolios we purchase are primarily charged-off credit card debt portfolios. A small percentage of our capital deployment in the United States is comprised of unsecured personal loans. We purchase receivables based on robust, account-level valuation methods and employ proprietary statistical and behavioral models across our U.S. operations. These methods and models generally allow us to value portfolios accurately (limiting the risk of overpaying), avoid buying portfolios that are incompatible with our methods or strategies and align the accounts we purchase with our business channels to maximize future collections. As a result, we have generally been able to realize significant returns from the receivables we acquire. We maintain strong relationships with many of the largest financial service providers in the United States. Cabot (Europe) In Europe, our purchased defaulted debt portfolios primarily consist of credit card and consumer loan accounts. We purchase receivable portfolios using proprietary pricing models that utilize account-level statistical and behavioral data. These models generally allow us to accurately value portfolios and to develop collection strategies that maximize future returns. As a result, we have generally been able to realize significant returns from the assets we have acquired. We maintain strong relationships with many of the largest financial services providers in the United Kingdom and Europe. Purchases and Collections Portfolio Pricing, Supply and Demand MCM (United States) With lending and charge-off rates remaining near recent peak levels, U.S. portfolio supply continues to be robust. Issuers have continued to sell predominantly fresh portfolios. Fresh portfolios are portfolios that are generally sold within six months of the consumer’s account being charged-off by the financial institution. Pricing in the second quarter remained at favorable levels as a result of elevated market supply. Issuers continue to sell their volume in mostly forward flow arrangements that are often committed early in the calendar year. We believe steady lending and delinquency rates at elevated levels will result in stable and strong market supply. We believe that smaller competitors continue to face difficulties in the portfolio purchasing market because of the high cost to operate due to regulatory pressure and increasing cost of capital. We believe this favors larger participants, like MCM, because the larger market participants are better able to adapt to these pressures and commit to larger forward flow agreements and fluctuating volumes. Cabot (Europe) The UK market for charged-off portfolios generally provides a relatively consistent pipeline of opportunities, despite a historically low level of charge-offs, as creditors have embedded debt sales as an integral part of their business models. France and Spain continue to be two of the largest non-performing loan markets in Europe with significant portfolio sales. Financial institutions continue to look to dispose of non-performing loans in these markets. While sales activity across all of our European markets remains stable, underlying default rates are generally low by historic levels, and consumer lending volumes have stagnated. Sales levels are expected to fluctuate from quarter to quarter. In general, portfolio pricing remains competitive across our European footprint, constraining the amount of capital we elect to deploy in Europe. 26 Table of Contents Purchases by Geographic Location The following table summarizes purchases of receivable portfolios by geographic location during the periods presented (in thousands): [[GREPCENT_TABLE]] [["","Three Months Ended June 30,","","Six Months Ended June 30,"],["","2026","","2025","","2026","","2025"],["MCM (United States)","$","372,277","","","$","317,264","","","$","688,071","","","$","633,630"],["Cabot (Europe)","71,538","","","49,835","","","118,585","","","101,320"],["Total purchases of receivable portfolios","$","443,815","","","$","367,099","","","$","806,656","","","$","734,950"]] [[/GREPCENT_TABLE]] In the United States, capital deployments increased during the three and six months ended June 30, 2026, as compared to the corresponding periods in the prior year. The majority of our deployments in the U.S. come from forward flow agreements, and the timing, contract duration, and volumes for each contract can fluctuate leading to variation when comparing to prior periods. Portfolio purchases in the U.S. were robust as supply increased and pricing remained at favorable levels. Our record purchases in the U.S. during the second quarter included opportunistic spot market purchases. In Europe, capital deployments increased during the three and six months ended June 30, 2026, as compared to the corresponding periods in the prior year. Capital deployment can fluctuate based on the timing of the forward flow contracts and spot purchases. Pricing continues to remain competitive in our European footprint, constraining the amount of capital we choose to deploy in Europe. Collections from Purchased Receivables by Channel and Geographic Location We utilize three channels for the collection of our receivable portfolios: call center and digital collections; legal collections; and collection agencies. The call center and digital collections channel consists of collections that result from our call centers, direct mail program and online collections. The legal collections channel consists of collections that result from our internal legal channel or from our network of retained law firms. The collection agencies channel consists of collections from third-party collections agencies to whom we pay a fee or commission. We utilize this channel to supplement capacity in our internal call centers, to service accounts in regions where we do not have collections operations or for accounts purchased where we maintain the collection agency servicing relationship. The following table su [Excerpt truncated for page length; source filing is linked above.] ## Latest 10-K MD&A (excerpt) Latest 10-K Item 7 source: https://www.sec.gov/Archives/edgar/data/1084961/000108496126000009/ecpg-20251231.htm Complete FY 2025 MD&A: /company/ECPG/mda/fy2025/ Extracted structurally from real Item 7 body heading to real Item 7A/8 boundary. Confidence: high Filing date: 2026-02-25 Report date: 2025-12-31 Item 7—Management’s Discussion and Analysis of Financial Condition and Results of Operations The following discussion and analysis is intended to help investors understand our business, financial condition, results of operations, liquidity and capital resources. You should read this discussion together with our consolidated financial statements and related notes thereto included elsewhere in this Annual Report on Form 10-K. This Annual Report on Form 10-K contains “forward-looking statements” relating to Encore Capital Group, Inc. (“Encore”) and its subsidiaries (which we may collectively refer to as the “Company,” “we,” “our” or “us”) within the meaning of the securities laws. The words “believe,” “expect,” “anticipate,” “estimate,” “project,” “intend,” “plan,” “will,” “may,” and similar expressions often characterize forward-looking statements. These statements may include, but are not limited to, projections of collections, revenues, income or loss, estimates of capital expenditures, plans for future operations, products or services, and financing needs or plans, as well as assumptions relating to these matters. Although we believe that the expectations reflected in these forward-looking statements are reasonable, we caution that these expectations or predictions may not prove to be correct or we may not achieve the financial results, savings or other benefits anticipated in the forward-looking statements. These forward-looking statements are necessarily estimates reflecting the best judgment of our senior management and involve a number of risks and uncertainties, some of which may be beyond our control or cannot be predicted or quantified, that could cause actual results to differ materially from those suggested by the forward-looking statements. Many factors including, but not limited to, those set forth in this Annual Report on Form 10-K under “Part I, Item 1A—Risk Factors,” could cause our actual results, performance, achievements, or industry results to be very different from the results, performance, achievements or industry results expressed or implied by these forward-looking statements. Our business, financial condition, or results of operations could also be materially and adversely affected by other factors besides those listed. Forward-looking statements speak only as of the date the statements were made. We do not undertake any obligation to update or revise any forward-looking statements to reflect new information or future events, or for any other reason, even if experience or future events make it clear that any expected results expressed or implied by these forward-looking statements will not be realized. In addition, it is generally our policy not to make any specific projections as to future earnings, and we do not endorse projections regarding future performance that may be made by third parties. Our Business We are an international specialty finance company providing debt recovery solutions and other related services for consumers across a broad range of financial assets. We primarily purchase portfolios of defaulted consumer receivables at deep discounts to face value and manage them by working with individuals as they repay their obligations and work toward financial recovery. Defaulted receivables are consumers’ unpaid financial commitments to credit originators, including banks, credit unions, consumer finance companies and commercial retailers. Defaulted receivables may also include receivables subject to bankruptcy proceedings. We also provide debt servicing and other portfolio management services to credit originators for non-performing loans in Europe. Encore Capital Group, Inc. (“Encore”) has three business units: MCM, which consists of Midland Credit Management, Inc. and its subsidiaries and domestic affiliates; Cabot, which consists of Cabot Credit Management Limited and its subsidiaries and European affiliates, and LAAP, which is comprised of our investments and operations in Latin America and Asia-Pacific. MCM (United States) Through MCM, we are a market leader in portfolio purchasing and recovery in the United States. Cabot (Europe) Through Cabot, we are one of the largest credit management services providers in Europe and the United Kingdom. Cabot, in addition to its primary business of portfolio purchasing and recovery, also provides a range of debt servicing offerings such as early stage collections, business process outsourcing (“BPO”), and contingent collections, including through Wescot Credit Services Limited (“Wescot”). LAAP (Latin America and Asia-Pacific) We have purchased non-performing loans in Mexico. Additionally, we have a subsidiary Encore Asset Reconstruction Company (“EARC”) in India. To date, operating results from LAAP have not been significant to our total consolidated operating results. Our long-term growth strategy is focused on continuing to invest in our core portfolio purchasing and recovery business in the United States and United Kingdom and strengthening and developing our business in France and Spain. 27 Table of Contents Government Regulation As discussed in more detail under “Part I - Item 1—Business - Government Regulation” contained in this Annual Report on Form 10-K, our operations in the United States are subject to federal, state and municipal statutes, rules, regulations and ordinances that establish specific guidelines and procedures that debt purchasers and collectors must follow when collecting consumer accounts, including among others, specific guidelines and procedures for communicating with consumers and prohibitions on unfair, deceptive or abusive debt collection practices. Additionally, our operations in Europe are affected by foreign statutes, rules and regulations regarding debt collection and debt purchase activities. These statutes, rules, regulations, ordinances, guidelines and procedures are modified from time to time by the relevant authorities charged with their administration, which could affect the way we conduct our business. Portfolio Purchasing and Recovery MCM (United States) In the United States, the defaulted consumer receivable portfolios we purchase are primarily charged-off credit card debt portfolios. A small percentage of our capital deployment in the United States is comprised of unsecured personal loans. We purchase receivables based on robust, account-level valuation methods and employ proprietary statistical and behavioral models across our U.S. operations. These methods and models generally allow us to value portfolios accurately (limiting the risk of overpaying), avoid buying portfolios that are incompatible with our methods or strategies and align the accounts we purchase with our business channels to maximize future collections. As a result, we have generally been able to realize significant returns from the receivables we acquire. We maintain strong relationships with many of the largest financial service providers in the United States. Cabot (Europe) In Europe, our purchased defaulted debt portfolios primarily consist of credit card and consumer loan accounts. We purchase receivable portfolios using proprietary pricing models that utilize account-level statistical and behavioral data. These models generally allow us to accurately value portfolios and to develop collection strategies that maximize future returns. As a result, we have generally been able to realize significant returns from the assets we have acquired. We maintain strong relationships with many of the largest financial services providers in the United Kingdom and Europe. Purchases and Collections Portfolio Pricing, Supply and Demand MCM (United States) With lending and charge-off rates remaining near recent peak levels, U.S. portfolio supply continues to be robust. Issuers have continued to sell predominantly fresh portfolios. Fresh portfolios are portfolios that are generally sold within six months of the consumer’s account being charged-off by the financial institution. Pricing in the fourth quarter remained at favorable levels as a result of elevated market supply. Issuers continue to sell their volume in mostly forward flow arrangements that are often committed early in the calendar year. We believe steadying lending and delinquency rates at elevated levels will result in stable and strong market supply. We believe that smaller competitors continue to face difficulties in the portfolio purchasing market because of the high cost to operate due to regulatory pressure and increasing cost of capital. We believe this favors larger participants, like MCM, because the larger market participants are better able to adapt to these pressures and commit to larger forward flow agreements and fluctuating volumes. Cabot (Europe) The UK market for charged-off portfolios generally provides a relatively consistent pipeline of opportunities, despite a historically low level of charge-offs, as creditors had embedded debt sales as an integral part of their business models. The percentage of volume that is sold in multi-year forward flow arrangements is increasing. France and Spain continue to be two of the largest non-performing loan markets in Europe with significant portfolio sales. Financial institutions continue to look to dispose of non-performing loans in these markets. While sales activity across all of our European markets remains stable, underlying default rates are generally low by historic levels, and consumer lending volumes have stagnated. Sales levels are expected to fluctuate from quarter to quarter. In 28 Table of Contents general, portfolio pricing remains competitive across our European footprint, constraining the amount of capital we elect to deploy in Europe. Purchases by Geographic Location The following table summarizes purchases of receivable portfolios by geographic location during the periods presented (in thousands): [[GREPCENT_TABLE]] [["","Year Ended December 31,"],["","2025","","2024","","2023"],["MCM (United States)","$","1,174,025","","","$","998,853","","","$","814,557"],["Cabot (Europe)","234,058","","","353,182","","","259,255"],["Total purchases of receivable portfolios","$","1,408,083","","","$","1,352,035","","","$","1,073,812"]] [[/GREPCENT_TABLE]] In the United States, capital deployment continued to increase during the periods presented. The majority of our deployments in the U.S. come from forward flow agreements, and the timing, contract duration, and volumes for each contract can fluctuate leading to variation when comparing to prior periods. Portfolio purchases in the U.S. were robust as supply increased and pricing remained at favorable levels. In Europe, capital deployment decreased during the year ended December 31, 2025, as compared to 2024, and increased during the year ended December 31, 2024, as compared to 2023, due to higher than normal purchases that included large spot-market portfolios in the fourth quarter of 2024. Pricing continues to remain competitive in our European footprint, constraining the amount of capital we choose to deploy in Europe. Capital deployment can fluctuate based on the timing of the forward flow contracts and spot purchases. Collections from Receivable Portfolios by Channel and Geographic Location We utilize three channels for the collection of our receivable portfolios: call center and digital collections; legal collections; and collection agencies. The call center and digital collections channel consists of collections that result from our call centers, direct mail program and online collections. The legal collections channel consists of collections that result from our internal legal channel or from our network of retained law firms. The collection agencies channel consists of collections from third-party collections agencies to whom we pay a fee or commission. We utilize this channel to supplement capacity in our internal call centers, to service accounts in regions where we do not have c [Excerpt truncated for page length; the complete text is on the linked full-MD&A page.] Read the full FY 2025 MD&A: /company/ECPG/mda/fy2025/ All MD&A years: /company/ECPG/mda/ ## MD&A history Prior-year 10-K MD&A spans are extracted from SEC filings with the same bounded parser used for the latest filing. Each year's full verbatim text is on its own sub-page. - [FY 2024 MD&A](/company/ECPG/mda/fy2024/): filed 2025-02-26; accession 0001084961-25-000011 (https://www.sec.gov/Archives/edgar/data/1084961/000108496125000011/ecpg-20241231.htm) - [FY 2023 MD&A](/company/ECPG/mda/fy2023/): filed 2024-02-21; accession 0001084961-24-000008 (https://www.sec.gov/Archives/edgar/data/1084961/000108496124000008/ecpg-20231231.htm) - [FY 2022 MD&A](/company/ECPG/mda/fy2022/): filed 2023-02-22; accession 0001084961-23-000014 (https://www.sec.gov/Archives/edgar/data/1084961/000108496123000014/ecpg-20221231.htm) - [FY 2021 MD&A](/company/ECPG/mda/fy2021/): filed 2022-02-23; accession 0001084961-22-000019 (https://www.sec.gov/Archives/edgar/data/1084961/000108496122000019/ecpg-20211231.htm) ## Macro cross-references Indicators mapped to this company's SIC classification (industry 6153 Short-Term Business Credit Institutions) by grepcent's deterministic macro-sector crosswalk. A navigational mapping, not a statistical or causal claim. - [M2SL](/indicator/M2SL/): M2 - [FEDFUNDS](/indicator/FEDFUNDS/): Federal Funds Effective Rate - [DFEDTARU](/indicator/DFEDTARU/): Federal Funds Target Range - Upper Limit - [DGS2](/indicator/DGS2/): Market Yield on U.S. Treasury Securities at 2-Year Constant Maturity - [DGS10](/indicator/DGS10/): Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity - [T10Y2Y](/indicator/T10Y2Y/): 10-Year Treasury Constant Maturity Minus 2-Year Treasury Constant Maturity - [HOUST](/indicator/HOUST/): New Privately-Owned Housing Units Started: Total Units - [PERMIT](/indicator/PERMIT/): New Privately-Owned Housing Units Authorized in Permit-Issuing Places: Total Units Macro-to-micro threads including this sector: [Interest rates & the Fed](/thread/interest-rates-fed/), [Money & trade](/thread/money-trade/), [Consumer & credit](/thread/consumer-credit/), [Government finances](/thread/government-finances/), [Sector employment](/thread/sector-employment/). All macro indicators: /indicators/ ## For LLMs & downloads Markdown twin: /company/ECPG.md · JSON record: /company/ECPG.json · verified financials: /company/ECPG/financials.json / /company/ECPG/financials.csv · machine TOC for the whole site: /llms.txt