Encore Capital Group ( (ECPG) ) has released its Q4 earnings. Here is a breakdown of the information Encore Capital Group presented to its investors.
Encore Capital Group is an international specialty finance company that provides debt recovery solutions and related services, primarily operating in the financial sector. Known for its unique Consumer Bill of Rights, the company is headquartered in San Diego and is publicly traded on NASDAQ.
Encore Capital Group reported significant growth in 2024, with global portfolio purchases reaching a record $1.35 billion, a 26% increase from the previous year. Global collections also rose by 16% to $2.16 billion. Despite these achievements, the company faced challenges with its Cabot business, resulting in a net loss for the quarter and the year.
Key financial metrics for 2024 include a 16% increase in collections and an 8% rise in revenues. However, the company reported a net loss of $139 million, largely due to a goodwill impairment charge and restructuring actions in its Cabot business. In the U.S., portfolio purchases increased by 23%, while Cabot’s purchases in the U.K. and Europe grew by 36%.
Looking forward, Encore Capital Group remains focused on its strategic objectives and anticipates further growth in 2025. The company expects global portfolio purchases to exceed 2024 levels and projects an 11% increase in global collections. Encore plans to resume share repurchases, reflecting confidence in its financial health and future prospects.