Encore Capital Group, Inc. reported significant financial growth in its latest quarterly results, with total revenues reaching $392.8 million for the three months ended March 31, 2025, a 19.6% increase from $328.4 million in the same period last year. The company's net income also saw a substantial rise, climbing to $46.8 million, compared to $23.2 million in the prior year, resulting in earnings per share of $1.96, up from $0.98. This performance was driven primarily by a 20.8% increase in debt purchasing revenue, which totaled $366.7 million, bolstered by higher portfolio revenue and improved recoveries.
The company’s receivable portfolios, net, increased to $3.95 billion as of March 31, 2025, up from $3.78 billion at the end of 2024. This growth reflects a strategic focus on acquiring defaulted consumer receivables, with purchases amounting to $367.9 million during the quarter, compared to $295.7 million in the same period last year. The increase in portfolio purchases was attributed to favorable market conditions, including a higher volume of available portfolios and competitive pricing.
Operationally, Encore Capital Group reported a total of $604.8 million in collections from purchased receivables, marking an 18.4% increase from $510.9 million in the previous year. The U.S. market was a significant contributor, with collections from call center and digital channels rising to $298.2 million, up from $235.1 million. The company also noted a favorable impact from foreign currency translation, which contributed positively to its international revenues.
In terms of strategic developments, Encore continued its share repurchase program, buying back 289,425 shares for approximately $10 million during the quarter. The company has $81.9 million remaining under its $300 million repurchase authorization. Looking ahead, Encore Capital Group expressed optimism about its growth trajectory, citing ongoing investments in its core portfolio purchasing and recovery business, particularly in the U.S. and U.K. markets, while also focusing on expanding its operations in France and Spain. The company remains committed to maintaining compliance with its financing arrangements and anticipates continued positive cash flows from operations.
About ENCORE CAPITAL GROUP INC
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