# EDGAR Filing Document

**Accession Number:** 0001084961
**File Stem:** 0001084961-26-000007
**Filing Date:** 2026-2
**Character Count:** 31097
**Document Hash:** 7dff19225069b9bbd8c23854bae0f617
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001084961-26-000007.hdr.sgml**: 20260225

**ACCESSION NUMBER**: 0001084961-26-000007

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 14

**CONFORMED PERIOD OF REPORT**: 20260225

**ITEM INFORMATION**: Results of Operations and Financial Condition

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20260225

**DATE AS OF CHANGE**: 20260225

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** ENCORE CAPITAL GROUP INC
- **CENTRAL INDEX KEY:** 0001084961
- **STANDARD INDUSTRIAL CLASSIFICATION:** SHORT-TERM BUSINESS CREDIT INSTITUTIONS [6153]
- **ORGANIZATION NAME:** 02 Finance
- **EIN:** 481090909
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 000-26489
- **FILM NUMBER:** 26678601

**BUSINESS ADDRESS:**
- **STREET 1:** 350 CAMINO DE LA REINA
- **STREET 2:** SUITE 100
- **CITY:** SAN DIEGO
- **STATE:** CA
- **ZIP:** 92108
- **BUSINESS PHONE:** 1-877-345-3002

**MAIL ADDRESS:**
- **STREET 1:** 350 CAMINO DE LA REINA
- **STREET 2:** SUITE 100
- **CITY:** SAN DIEGO
- **STATE:** CA
- **ZIP:** 92108

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** MCM CAPITAL GROUP INC
- **DATE OF NAME CHANGE:** 19990430

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** MIDLAND CORP OF KANSAS
- **DATE OF NAME CHANGE:** 19990423

?xml version='1.0' encoding='ASCII'? ecpg-20260225

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**WASHINGTON, DC 20549**

**______________________**

**FORM 8-K**

**CURRENT REPORT**

**Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934**

**February 25, 2026**

Date of report (Date of earliest event reported)

**______________________**

**ENCORE CAPITAL GROUP, INC.**

(Exact name of registrant as specified in its charter)

---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp;**Delaware** | &nbsp;&nbsp;**000-26489** | &nbsp;&nbsp;**48-1090909** |
| &nbsp;&nbsp;(State or other jurisdiction of incorporation) | &nbsp;&nbsp;(Commission File Number) | &nbsp;&nbsp;(IRS Employer Identification No.) |

---

**350 Camino de la Reina, Suite 100** 

**San Diego, California 92108** 

(Address of principal executive offices)(Zip Code)

**(877) 345-3002** 

(Registrant's telephone number, including area code)

**Not applicable**

(Former name or former address, if changed since last report.)

**_____________________**

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐&nbsp;&nbsp;&nbsp;&nbsp;Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐&nbsp;&nbsp;&nbsp;&nbsp;Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐&nbsp;&nbsp;&nbsp;&nbsp;Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐&nbsp;&nbsp;&nbsp;&nbsp;Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

---

| | | |
|:---|:---|:---|
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
| **Common Stock, $0.01 Par Value Per Share** | **ECPG** | **The Nasdaq Stock Market LLC** |

---

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.&nbsp;&nbsp;&nbsp;&nbsp;☐

------

**Item 2.02.&nbsp;&nbsp;&nbsp;&nbsp;Results of Operations and Financial Condition.**

On February 25, 2026, Encore Capital Group, Inc. ("Encore") issued a press release announcing its financial results for the quarter and full fiscal year ended December 31, 2025. A copy of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated by reference herein.

The information in Item 2.02 of this Current Report on Form 8-K, including the information contained in Exhibit 99.1, is being furnished to the Securities and Exchange Commission pursuant to Item 2.02, and shall not be deemed to be "filed" for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities of that section, and shall not be deemed to be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by a specific reference in such filing.

**Item 9.01.&nbsp;&nbsp;&nbsp;&nbsp;Financial Statements and Exhibits.**

---

| | |
|:---|:---|
| &nbsp;&nbsp;**<u>Exhibit Number</u>** | &nbsp;&nbsp;**<u>Description</u>** |
| <u>[99.1](ex991ecpgq42025earningspre.htm)</u> | &nbsp;&nbsp;Press release dated February 25, 2026 |
| &nbsp;&nbsp;104 | &nbsp;&nbsp;Cover Page Interactive Data File (embedded within the Inline XBRL document) |

---

------

**SIGNATURE**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

---

| | | |
|:---|:---|:---|
| | | ENCORE CAPITAL GROUP, INC. |
| Date: | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;February 25, 2026 | <u>/s/ Tomas Hernanz</u> |
| | | Tomas Hernanz |
| | | Executive Vice President, Chief Financial Officer and Treasurer |

---

------

**EXHIBIT INDEX**

---

| | |
|:---|:---|
| **<u>Exhibit Number</u>** | **<u>Description</u>** |
| <u>[99.1](ex991ecpgq42025earningspre.htm)</u> | Press release dated February 25, 2026 |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |

---

## Exhibit 99.1

---

| | |
|:---|:---|
| ![ecpglogo.jpg](ecpglogo.jpg) | **Exhibit 99.1** |

---

**Encore Capital Group Announces Fourth Quarter and Full-Year 2025 Financial Results**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*• Global portfolio purchases in 2025 up 4% to $1.41 billion, including $1.17 billion in the U.S.*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*• Global collections in 2025 up 20% to $2.59 billion, including $1.95 billion in the U.S.*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*• Earnings per share in 2025 of $10.91*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*• Repurchased approximately 9% of ECPG shares outstanding for $89.5 million in 2025*

**SAN DIEGO, February 25, 2026** -- Encore Capital Group, Inc. (NASDAQ: ECPG), an international specialty finance company, today reported consolidated financial results for the fourth quarter and full year ended December 31, 2025.

"Encore's industry leadership and operational innovation are on full display after delivering very strong 2025 financial results," said Ashish Masih, Encore's President and Chief Executive Officer. "With our largest business, MCM in the U.S., leading the way, we grew portfolio purchases and collections to record levels and increased average receivable portfolios by 12% compared to 2024, all while we strengthened our balance sheet by reducing our leverage. This performance led to $257 million of net income for the year, or earnings per share of $10.91."

"In the U.S., the portfolio purchasing environment in 2025 remained favorable as a result of near-record revolving consumer credit combined with a charge-off rate of more than 4%. Within this market backdrop, MCM increased U.S. portfolio purchases for the year by 18% to a record $1.17 billion at strong returns. In addition, MCM delivered record collections of $1.95 billion, up 24% compared to 2024. This exceptional collections performance is the result of strong execution and continued significant portfolio purchasing as well as the deployment of new technologies, enhanced digital capabilities and continued operational innovation."

"Our Cabot business in Europe delivered solid performance in 2025. Portfolio purchases of $234 million were in the range of Cabot's historical trend as European markets remain competitive. Cabot's collections of $641 million were up 9% compared to 2024."

"Looking ahead, guided by our three pillar strategy and encouraged by our business momentum early in 2026, we remain committed to our long-standing financial objectives and our capital allocation priorities. We anticipate our global portfolio purchases in 2026 to be within a range from $1.4 billion to $1.5 billion. We expect global collections in 2026 to increase by 5% to $2.7 billion. In total, we believe Encore will deliver another strong year of financial performance in 2026 and expect our earnings per share to increase 10% to $12.00. We also remain committed to the critical role we play in the consumer credit ecosystem and to helping consumers restore their financial health," said Masih.

In 2025, the company repurchased approximately 9% of ECPG shares outstanding for $89.5 million.<sup>1</sup>

<sup>1</sup> Percentage calculated as number of ECPG shares repurchased in 2025 divided by number of ECPG shares outstanding as of December 31, 2024.

------

*Encore Capital Group, Inc.*

*Page 2*

**Financial Highlights for the Full Year of 2025:**

---

| | | | |
|:---|:---|:---|:---|
| | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
| (in thousands, except percentages and earnings per share) | **2025** | **2024** | **Change** |
| Portfolio purchases<sup>(1)</sup> | $1408083 | $1352035 | 4% |
| Average receivable portfolios<sup>(2)</sup> | $4073951 | $3622401 | 12% |
| Estimated Remaining Collections (ERC) | $9684339 | $8501370 | 14% |
| Collections | $2592786 | $2162478 | 20% |
| Revenues | $1768802 | $1316361 | 34% |
| Operating expenses | $1142155 | $1159031 | (1)% |
| Net income (loss) | $256834 | $(139244) | NM |
| Income (loss) per share | $10.91 | $(5.83) | NM |

---

__________________

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)Includes U.S. purchases of $1,174.0 million and $998.9 million, and Europe purchases of $234.1 million and $353.2 million in 2025 and 2024, respectively.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)Represents the average of receivable portfolios for the year (sum of receivable portfolios at the beginning and end of the year divided by 2).

**Financial Highlights for the Fourth Quarter of 2025:**

---

| | | | |
|:---|:---|:---|:---|
| | **Three Months Ended December 31,** | **Three Months Ended December 31,** | **Three Months Ended December 31,** |
| (in thousands, except percentages and earnings per share) | **2025** | **2024** | **Change** |
| Portfolio purchases<sup>(1)</sup> | $327064 | $495144 | (34)% |
| Average receivable portfolios<sup>(2)</sup> | $4320774 | $3747815 | 15% |
| Estimated Remaining Collections (ERC) | $9684339 | $8501370 | 14% |
| Collections | $669976 | $554595 | 21% |
| Revenues | $473552 | $265619 | 78% |
| Operating expenses | $300159 | $399809 | (25)% |
| Net income (loss) | $76657 | $(225307) | NM |
| Income (loss) per share | $3.37 | $(9.42) | NM |

---

__________________

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)Includes U.S. purchases of $279.3 million and $295.3 million, and Europe purchases of $47.8 million and $199.8 million in Q4 2025 and Q4 2024, respectively.

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

**Conference Call and Webcast**

The Company will host a conference call and slide presentation today, February 25, 2026, at 2:00 p.m. Pacific time / 5:00 p.m. Eastern time to discuss fourth quarter and full year results.

Members of the public are invited to access the live webcast via the Internet by logging in on the Investor Relations page of Encore's website at encorecapital.com. To access the live conference call by telephone, please pre-register using this link. Registrants will receive confirmation with dial-in details.

For those who cannot listen to the live broadcast, a replay of the webcast will be available on the Company's website shortly after the call concludes.

------

*Encore Capital Group, Inc.*

*Page 3*

**Non-GAAP Financial Measures**

This news release includes certain financial measures that exclude the impact of certain items and therefore have not been calculated in accordance with U.S. generally accepted accounting principles ("GAAP"). The Company has included information concerning adjusted EBITDA because management utilizes this information in the evaluation of its operations and believes that this measure, when added to collections applied to principal balance, is a useful indicator of the Company's ability to generate cash collections in excess of operating expenses through the liquidation of its receivable portfolios. Adjusted EBITDA has not been prepared in accordance with GAAP and should not be considered an alternative to, or more meaningful than, net income as an indicator of the Company's operating performance. Further, this non-GAAP financial measure, as presented by the Company, may not be comparable to similarly titled measures reported by other companies. The Company has attached to this news release a reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures.

**About Encore Capital Group, Inc.**

Encore Capital Group is an international specialty finance company that provides debt recovery solutions and other related services for consumers across a broad range of financial assets. Through its subsidiaries around the globe, Encore purchases portfolios of consumer receivables from major banks, credit unions, and utility providers.

Encore partners with individuals as they repay their debt obligations, helping them on the road to financial recovery and ultimately improving their economic well-being. Encore is the first and only company of its kind to operate with a *Consumer Bill of Rights* that provides industry-leading commitments to consumers. Headquartered in San Diego, Encore is a publicly traded NASDAQ Global Select company (ticker symbol: ECPG) and a component stock of the Russell 2000, the S&P Small Cap 600 and the Wilshire 4500. More information about the company can be found at encorecapital.com.

------

*Encore Capital Group, Inc.*

*Page 4*

**Forward Looking Statements**

*The statements in this press release that are not historical facts, including, most importantly, those statements preceded by, or that include, the words "will," "may," "believe," "projects," "expects," "anticipates" or the negation thereof, or similar expressions, constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 (the "Reform Act"). These statements may include, but are not limited to, statements regarding our future operating results (including portfolio purchase volumes, collections and earnings per share), performance, business plans or prospects as well as statements regarding future supply, consumer behavior, or macroeconomic environment. For all "forward-looking statements," the Company claims the protection of the safe harbor for forward-looking statements contained in the Reform Act. Such forward-looking statements involve risks, uncertainties and other factors which may cause actual results, performance or achievements of the Company and its subsidiaries to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. These risks, uncertainties and other factors are discussed in the reports filed by the Company with the Securities and Exchange Commission, including the most recent reports on Form 10-K, as it may be amended from time to time. The Company disclaims any intent or obligation to update these forward-looking statements.*

**Contact:**

Bruce Thomas

Encore Capital Group, Inc.

Vice President, Global Investor Relations

<u>bruce.thomas@encorecapital.com</u>

SOURCE: Encore Capital Group, Inc.

**FINANCIAL TABLES FOLLOW**

------

*Encore Capital Group, Inc.*

*Page 5*

**ENCORE CAPITAL GROUP, INC.**

**Consolidated Statements of Financial Condition**

(In Thousands, Except Par Value Amounts)

---

| | | |
|:---|:---|:---|
| | **December 31,<br>2025** | **December 31,<br>2024** |
| **Assets** | | |
| Cash and cash equivalents | $156784 | $199865 |
| Receivable portfolios, net | 4371532 | 3776369 |
| Property and equipment, net | 82080 | 80597 |
| Other assets | 193113 | 225090 |
| Goodwill | 536291 | 507808 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total assets | $5339800 | $4789729 |
| **Liabilities and Equity** |  |  |
| Liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable and accrued liabilities | $230261 | $233545 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Borrowings | 4001293 | 3672762 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other liabilities | 131496 | 116091 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities | 4363050 | 4022398 |
| Commitments and contingencies |  |  |
| Equity: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Convertible preferred stock, $0.01 par value, 5,000 shares authorized, no shares issued and outstanding |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Common stock, $0.01 par value, 75,000 shares authorized, 21,688 shares and 23,691 shares issued and outstanding as of December 31, 2025 and December 31, 2024, respectively | 217 | 237 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Additional paid-in capital |  | 19297 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accumulated earnings | 1104640 | 909927 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accumulated other comprehensive loss | (128107) | (162130) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total stockholders' equity | 976750 | 767331 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities and stockholders' equity | $5339800 | $4789729 |

---

The following table presents certain assets and liabilities of consolidated variable interest entities ("VIEs") included in the consolidated statements of financial condition above. Most assets in the table below include those assets that can only be used to settle obligations of consolidated VIEs. The liabilities exclude amounts where creditors or beneficial interest holders have recourse to the general credit of the Company.

---

| | | |
|:---|:---|:---|
| | **December 31,<br>2025** | **December 31,<br>2024** |
| **Assets** | | |
| Cash and cash equivalents | $40256 | $23875 |
| Receivable portfolios, net | 1151221 | 895704 |
| Other assets | 3540 | 3699 |
| **Liabilities** |  |  |
| Accounts payable and accrued liabilities | 3101 | 2946 |
| Borrowings | 791182 | 599830 |
| Other liabilities | 2774 | 887 |

---

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*Encore Capital Group, Inc.*

*Page 6*

**ENCORE CAPITAL GROUP, INC.**

**Consolidated Statements of Operations**

(In Thousands, Except Per Share Amounts)

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **(Unaudited)<br>Three Months Ended December 31,** | **(Unaudited)<br>Three Months Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
| | **2025** | **2024** | **2025** | **2024** |
| Revenues |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Portfolio revenue | $379277 | $336666 | $1455795 | $1302567 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Changes in recoveries | 68072 | (95760) | 208771 | (89740) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total debt purchasing revenue | 447349 | 240906 | 1664566 | 1212827 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Servicing revenue | 21366 | 20525 | 88388 | 84783 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other revenues | 4837 | 4188 | 15848 | 18751 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total revenues | 473552 | 265619 | 1768802 | 1316361 |
| Operating expenses |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Salaries and employee benefits | 117445 | 104616 | 458233 | 422910 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cost of legal collections | 87779 | 68989 | 315451 | 259298 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;General and administrative expenses | 44383 | 52019 | 165948 | 163847 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other operating expenses | 36178 | 37786 | 144476 | 130802 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Collection agency commissions | 7439 | 8288 | 29287 | 30596 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 6935 | 8967 | 28760 | 32434 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Goodwill impairment |  | 100600 |  | 100600 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Impairment of assets |  | 18544 |  | 18544 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | 300159 | 399809 | 1142155 | 1159031 |
| Income (loss) from operations | 173393 | (134190) | 626647 | 157330 |
| Other expense |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest expense | (75195) | (68498) | (293910) | (252545) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss on extinguishment of debt | (1614) | (7832) | (1614) | (7832) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other income | 1234 | 541 | 5036 | 6832 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total other expense | (75575) | (75789) | (290488) | (253545) |
| Income (loss) before income taxes | 97818 | (209979) | 336159 | (96215) |
| Provision for income taxes | (21161) | (15328) | (79325) | (43029) |
| Net income (loss) | $76657 | $(225307) | $256834 | $(139244) |
| **Income (loss) per share:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Basic | $3.43 | $(9.42) | $11.05 | $(5.83) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Diluted | $3.37 | $(9.42) | $10.91 | $(5.83) |
| Weighted average shares outstanding: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Basic | 22346 | 23916 | 23234 | 23873 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Diluted | 22776 | 23916 | 23534 | 23873 |

---

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*Encore Capital Group, Inc.*

*Page 7*

**ENCORE CAPITAL GROUP, INC.**

**Consolidated Statements of Cash Flows**

(In Thousands)

---

| | | | |
|:---|:---|:---|:---|
| | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
| | **2025** | **2024** | **2023** |
| **Operating activities:** |  |  |  |
| Net income (loss) | $256834 | $(139244) | $(206492) |
| Adjustments to reconcile net income (loss) to net cash provided by operating activities: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 28760 | 32434 | 41737 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other non-cash interest expense, net | 14364 | 16325 | 17160 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stock-based compensation expense | 18269 | 14012 | 13854 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred income taxes | 29819 | (22280) | (55916) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Goodwill impairment |  | 100600 | 238200 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Impairment of assets |  | 18544 | 18726 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Changes in recoveries | (208771) | 89740 | 82530 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other, net | 7654 | 17880 | (2259) |
| Changes in operating assets and liabilities |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other assets | 9923 | (28245) | 15894 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable, accrued liabilities and other liabilities | (3653) | 56402 | (10443) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by operating activities | 153199 | 156168 | 152991 |
| **Investing activities:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Purchases of receivable portfolios, net of put-backs | (1389064) | (1336442) | (1060206) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Collections applied to receivable portfolios | 1136991 | 859911 | 658130 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Purchases of real estate owned |  | (212) | (26901) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Purchases of property and equipment | (26270) | (29007) | (24807) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from sale of real estate owned | 37650 | 56396 | 52636 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other, net | (1893) | 8924 | (793) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used in investing activities | (242586) | (440430) | (401941) |
| **Financing activities:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Payment of loan and debt refinancing costs | (10210) | (21418) | (13707) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from credit facilities | 1273254 | 2031470 | 1196046 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Repayment of credit facilities | (1359011) | (1868111) | (989627) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from senior secured notes | 500000 | 1000000 | 104188 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Repayment of senior secured notes | (115965) | (789106) | (39080) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from issuance of convertible senior notes |  |  | 230000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Repayment of convertible senior notes | (106206) |  | (212480) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Repayment of other debt | (42469) | (22078) | (12715) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Payments to settle derivative instruments |  | (40038) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Repurchase and retirement of common stock | (90402) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other, net | (4137) | 27055 | 5675 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by financing activities | 44854 | 317774 | 268300 |
| Net (decrease) increase in cash and cash equivalents | (44533) | 33512 | 19350 |
| Effect of exchange rate changes on cash and cash equivalents | 1452 | 7989 | (4898) |
| Cash and cash equivalents, beginning of period | 199865 | 158364 | 143912 |
| Cash and cash equivalents, end of period | $156784 | $199865 | $158364 |
| Supplemental disclosures of cash flow information: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash paid for interest | $259812 | $210580 | $163815 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash paid for income taxes, net of refunds | 54766 | 67091 | 68522 |
| Supplemental schedule of non-cash investing activities: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Receivable portfolios transferred to real estate owned | $3739 | $5966 | $7957 |

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*Encore Capital Group, Inc.*

*Page 8*

**ENCORE CAPITAL GROUP, INC.**

Supplemental Financial Information

Reconciliation of Non-GAAP Metrics

**Adjusted EBITDA**

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| | | | | |
|:---|:---|:---|:---|:---|
| (in thousands, unaudited) | **Three Months Ended December 31,** | **Three Months Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
| (in thousands, unaudited) | **2025** | **2024** | **2025** | **2024** |
| GAAP net income (loss), as reported | $76657 | $(225307) | $256834 | $(139244) |
| Adjustments: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest expense | 75195 | 68498 | 293910 | 252545 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss on extinguishment of debt | 1614 | 7832 | 1614 | 7832 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest income | (1020) | (1971) | (4955) | (7008) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Provision for income taxes | 21161 | 15328 | 79325 | 43029 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 6935 | 8967 | 28760 | 32434 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net gain on derivative instruments<sup>(1)</sup> |  |  |  | (267) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stock-based compensation expense | 5221 | 2281 | 18269 | 14012 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Acquisition, integration and restructuring related expenses<sup>(2)</sup> | 1747 | 6087 | 3201 | 10451 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Goodwill impairment<sup>(3)</sup> |  | 100600 |  | 100600 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Impairment of assets<sup>(3)</sup> |  | 18544 |  | 18544 |
| Adjusted EBITDA | $187510 | $859 | $676958 | $332928 |
| Collections applied to principal balance<sup>(4)</sup> | $228206 | $337464 | $953476 | $1004230 |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)Amount represents gain or loss recognized on derivative instruments that are not designated as hedging instruments or gain or loss recognized on derivative instruments upon dedesignation of hedge relationships. We adjust for this amount because we believe the gain or loss on derivative contracts is not indicative of ongoing operations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)Amount represents acquisition, integration and restructuring related expenses. We adjust for this amount because we believe these expenses are not indicative of ongoing operations; therefore, adjusting for these expenses enhances comparability to prior periods, anticipated future periods, and our competitors' results.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)During the quarter ended December 31, 2024, we recorded a non-cash goodwill impairment charge of $100.6 million and we recorded a non-cash impairment of long-lived assets of $18.5 million. We believe these non-cash impairment charges are not indicative of ongoing operations, therefore adjusting for these expenses enhances comparability to prior periods, anticipated future periods, and our competitors' results.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4)Amount represents (a) gross collections from receivable portfolios less (b) debt purchasing revenue, plus (c) proceeds applied to basis from sales of real estate owned ("REO") assets, exit activities and, when applicable, other receivable portfolios. A reconciliation of "collections applied to receivable portfolios, net" to "collections applied to principal balance" is available in the Form 10-K for the period ending December 31, 2025.

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