Encore Capital Group, Inc. reported a net loss of $139.2 million for the fiscal year ended December 31, 2024, compared to a net loss of $206.5 million in the previous year. Total revenues increased by 7.7% to $1.316 billion, driven primarily by a rise in revenue from receivable portfolios, which reached $1.303 billion, up from $1.204 billion in 2023. The company's gross collections from purchased receivables also saw a significant increase, rising by 16.1% to $2.162 billion, attributed to higher capital deployments and improved collection performance.
The company experienced a notable change in its operational landscape, particularly with a goodwill impairment charge of $100.6 million recorded for its Cabot reporting unit, following a significant reduction in estimated future recoveries. This impairment followed a previous charge of $238.2 million in 2023. The total investment in receivable portfolios increased to $3.776 billion, up from $3.468 billion in the prior year, reflecting ongoing portfolio purchases and a strategic focus on enhancing collection capabilities.
Encore's operational metrics indicated a stable workforce, with approximately 7,350 employees as of December 31, 2024, a slight decrease from 7,375 in 2023. The company continues to leverage its digital collection strategies, which have been enhanced to improve consumer engagement and collection efficiency. The U.S. operations remain a significant contributor to overall performance, with a focus on maintaining strong relationships with major financial service providers.
Looking ahead, Encore Capital Group aims to strengthen its core portfolio purchasing and recovery business in the U.S. and U.K. while exploring growth opportunities in France and Spain. The company plans to continue investing in analytics and technology to enhance its competitive position and improve collection rates. Despite the challenges posed by regulatory scrutiny and market conditions, Encore remains committed to optimizing its capital structure and maintaining financial flexibility to navigate future uncertainties.
About ENCORE CAPITAL GROUP INC
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