Wed, May 7, 9:29 PM (11 days ago)
Encore Capital Group, Inc. (ECPG) reported a strong Q1 2025, with notable improvements in revenue, profit margins, and cash flow. Total revenues increased by 19.6% to $392.7 million, driven by a 20.8% rise in debt purchasing revenue. Operating expenses rose by 7.6% to $263.4 million, resulting in a 32.9% increase in income from operations to $129.3 million. Net income surged by 101.4% to $46.8 million, with earnings per share increasing from $0.98 to $1.96. The company's effective tax rate was 22.6%, slightly lower than the 23.8% rate in Q1 2024. Cash flow from operations was $45.3 million, with significant investments in receivable portfolios. The company's liquidity remains strong, with $187.1 million in cash and cash equivalents. ECPG continues to focus on portfolio purchasing and recovery, with a strategic emphasis on the U.S. and Europe. The company's outlook is positive, with expectations of continued growth in supply and favorable pricing. However, uncertainties related to regulatory changes, economic conditions, and market competition may impact future performance.