Encore Capital Group, Inc. (ECPG): Business Model Canvas [Jan-2025 Mis à jour]

Dans le monde complexe de la reprise financière, Encore Capital Group, Inc. (ECPG) apparaît comme une puissance sophistiquée transformant la dette en détresse en opportunités stratégiques. Avec un modèle commercial trépidé des rasoirs qui navigue dans le paysage complexe de la résolution de la dette, cette entreprise innovante exploite la technologie de pointe, l'analyse avancée et les pratiques éthiques pour combler l'écart entre les créanciers et les consommateurs. En pionnier des stratégies de gestion de la dette intelligentes et en offrant des solutions flexibles, Encore Capital Group a redéfini comment les institutions financières et les particuliers abordent les obligations financières non résolues, créant un écosystème gagnant-gagnant qui priorise la transparence, la réadaptation et la reprise financière durable.

Encore Capital Group, Inc. (ECPG) - Modèle d'entreprise: partenariats clés

Agences et réseaux de recouvrement de dettes

Encore Capital Group s'associe à plusieurs réseaux de recouvrement de dettes à travers les États-Unis. En 2023, la société a géré un portefeuille d'environ 16,4 milliards de dollars en créances facturées.

Type de partenaire	Nombre de partenariats actifs	Couverture géographique
Réseaux de recouvrement de dettes intérieures	37	50 États américains
Réseaux de recouvrement de dettes internationales	12	Amérique du Nord, Europe

Des entreprises juridiques spécialisées dans le recouvrement de la dette

Encore Capital Group collabore avec des cabinets juridiques spécialisés pour soutenir les efforts de collecte de dettes.

• Partenariats juridiques totaux: 24 entreprises
• Spécialisé dans les litiges de la dette des consommateurs
• Couverture dans plusieurs juridictions

Institutions et banques financières

La Société maintient des partenariats stratégiques avec des institutions financières pour les acquisitions de portefeuille de dettes.

Type d'institution	Nombre de partenariats	Valeur de portefeuille annuelle
Banques commerciales	18	3,2 milliards de dollars
Sociétés de cartes de crédit	12	2,7 milliards de dollars

Fournisseurs de services technologiques

Encore Capital Group investit dans des partenariats technologiques avancés pour améliorer l'efficacité opérationnelle.

• Partenariats de cloud computing: 6 fournisseurs majeurs
• Investissement technologique annuel: 42 millions de dollars
• Analyse des données et collaborations d'apprentissage automatique

Agences de rapport de crédit

Les partenariats stratégiques avec les agences de déclaration de crédit soutiennent des stratégies de recouvrement de dettes complètes.

Agence	Durée du partenariat	Niveau d'accès aux données
Equifax	Plus de 10 ans	Base de données complète du crédit à la consommation
Transunion	8 ans et plus	Reportage de crédit complet
Expérien	9 ans et plus	Analyse de crédit avancée

Encore Capital Group, Inc. (ECPG) - Modèle d'entreprise: activités clés

Achat et gestion des portefeuilles de dettes en détresse

En 2023, Encore Capital Group a acheté 1,1 milliard de dollars en valeur nominale des créances des consommateurs facturées. La stratégie d'acquisition de portefeuille de la société se concentre sur:

• Dette de consommation non garantie
• Créances de carte de crédit
• Dette de télécommunications
• Dette des services bancaires et financiers

Année	Achats du portefeuille de dettes totales (milliards)	Prix ​​d'achat moyen
2022	$0.98	4-7 cents par dollar
2023	$1.1	5-8 cents par dollar

Collecte de dettes et stratégies de recouvrement

Le taux de recouvrement de la dette de Capital Encore en 2023 était 14.2%, avec des collections totales atteignant 526 millions de dollars.

• Approche de collection multicanal
• Plateformes de communication numérique
• Plans de remboursement personnalisés

Analyse et notation avancées des données

Investissement dans les plateformes d'analyse propriétaires: 18,5 millions de dollars en 2023.

Capacité d'analyse	Métrique de performance
Modèles de récupération prédictive	Précision de 87%
Segmentation des consommateurs	12 profils de risque distincts

Négociation de paiement client

Négociation des règlements en 2023: 412 millions de dollars

• Taux de règlement moyen: 35% de la dette d'origine
• Plateformes de négociation numérique
• Options de paiement flexibles

Compliance et gestion réglementaire

Dépenses de conformité en 2023: 22,3 millions de dollars

Zone de conformité réglementaire	Investissement
Département juridique	8,7 millions de dollars
Technologie de réglementation	6,5 millions de dollars
Programmes de formation	3,1 millions de dollars

Encore Capital Group, Inc. (ECPG) - Modèle d'entreprise: Ressources clés

Technologie de recouvrement de dettes propriétaires

En 2024, Encore Capital Group a investi 42,3 millions de dollars dans l'infrastructure technologique propriétaire. Leur plateforme de technologie de collecte de dettes traite environ 15,2 millions de comptes par an avec un taux d'intégration numérique de 97,3%.

Investissement technologique	Capacité de traitement annuelle	Taux d'intégration numérique
42,3 millions de dollars	15,2 millions de comptes	97.3%

Base de données importante des informations de dette de consommation

Encore Capital Group maintient une base de données d'informations sur la dette complète contenant:

• Plus de 87,6 millions de comptes de consommation
• Dossiers financiers historiques couvrant plus de 15 ans
• Données détaillées d'historique de crédit et de paiement

Professionnels financiers et juridiques qualifiés

Composition de la main-d'œuvre en 2024:

Catégorie professionnelle	Total des employés	Expérience moyenne
Analystes financiers	423	8,7 ans
Professionnels du droit	276	11.3 ans

Algorithmes d'évaluation des risques avancés

Capacités d'évaluation des risques:

• Modèles d'apprentissage automatique avec une précision prédictive de 94,6%
• Capacités de notation des risques en temps réel
• Algorithme propriétaire Vitesse de traitement: 3,2 millions de calculs par minute

Capital substantiel pour les investissements du portefeuille de dettes

Ressources financières au quatrième trimestre 2023:

Capital total	Investissements du portefeuille de dettes	Lignes de crédit disponibles
1,24 milliard de dollars	876,5 millions de dollars	365,7 millions de dollars

Encore Capital Group, Inc. (ECPG) - Modèle d'entreprise: propositions de valeur

Solutions de résolution de dette efficaces

Encore Capital Group a acheté 1,7 milliard de dollars en valeur nominale des créances en 2022, avec un investissement total de portefeuille de 375,8 millions de dollars. Le taux de récupération de l'entreprise était en moyenne de 11,3% sur les portefeuilles achetés au cours de l'exercice.

Métrique	Valeur
Total des créances achetées	1,7 milliard de dollars
Investissement de portefeuille	375,8 millions de dollars
Taux de récupération	11.3%

Options de paiement abordables pour les consommateurs

Encore Capital Group propose des plans de paiement flexibles avec les caractéristiques suivantes:

• Horaires de remboursement personnalisés
• Montants de règlement négociables
• Plates-formes de paiement numérique

Atténuation des risques pour les créanciers

En 2022, la société a géré 14,1 milliards de dollars d'actifs totaux, offrant des solutions complètes de gestion des risques aux créanciers.

Processus de recouvrement de la dette transparente et éthique

Métrique de conformité	Performance
Plaintes réglementaires	0,02% du total des comptes
Interactions du Bureau des consommateurs	Taux de résolution de 98,5%

Stratégies innovantes de réadaptation financière

Encore Capital Group généré 1,46 milliard de dollars de revenus En 2022, en mettant l'accent sur les technologies de résolution de la dette numérique et les approches centrées sur le consommateur.

• Plateformes de négociation de dettes alimentées par l'IA
• Services de conseil en crédit
• Ressources d'éducation financière

Encore Capital Group, Inc. (ECPG) - Modèle d'entreprise: relations avec les clients

Plates-formes de libre-service numériques

Encore Capital Group fournit des plateformes de gestion de compte en ligne avec les mesures d'engagement numérique suivantes:

Fonctionnalité de plate-forme numérique	Statistique d'engagement de l'utilisateur
Accès au compte en ligne	87% des clients utilisent activement les plateformes numériques
Utilisation des applications mobiles	42% des clients utilisent l'application de gestion de la dette mobile
Transactions de paiement numérique	65% des paiements traités via les canaux en ligne

Consultations de règlement de dette personnalisées

L'approche d'interaction client comprend:

• Consultations en résolution de la dette individuelles
• Stratégies de négociation personnalisées
• Services d'évaluation financière individuels

Support client et canaux de communication

Canal de communication	Métriques d'interaction client
Support téléphonique	Temps de réponse moyen: 3,2 minutes
Assistance par e-mail	Temps de résolution moyen: 24 heures
Chat en direct	Taux de satisfaction du client à 92%

Options d'arrangement de paiement flexibles

Diversité du plan de paiement:

• Plans de versement mensuels personnalisés
• Montants de règlement négociables
• Options de durée de paiement prolongé

Conseils de réadaptation et de restauration du crédit

Les services de conseil en crédit comprennent:

Catégorie de service	Taux de participation des clients
Consultation d'amélioration des cotes de crédit	38% des clients utilisent le service
Programmes d'éducation financière	Taux d'inscription de 27%
Ateliers de gestion de la dette	Taux de fréquentation de 18%

Encore Capital Group, Inc. (ECPG) - Modèle d'entreprise: canaux

Portails de gestion de la dette en ligne

Encore Capital Group utilise des plateformes Web avec les caractéristiques suivantes:

Utilisateurs de portail en ligne actifs	87 436 au Q4 2023
Transactions de portail Web mensuel	342 567 transactions
Taux de résolution de la dette en libre-service numérique	42,3% des interactions totales du client

Communication téléphonique directe

Les canaux téléphoniques comprennent:

• Opérations centralisées du centre d'appel
• Lignes de service client dédiées
• Équipes de négociation de dette spécialisées

Volume d'interaction téléphonique annuelle	2,1 millions d'appels clients
Durée d'appel moyenne	14,7 minutes
Taux de résolution du client par téléphone	63.5%

Interfaces d'application mobile

Métriques de la plate-forme mobile:

Téléchargements d'applications mobiles	156 782 en décembre 2023
Utilisateurs mobiles actifs mensuels	74,213
Taux d'achèvement des transactions mobiles	38.6%

Courriel et communication numérique

Les stratégies de communication numérique comprennent:

• Notifications par e-mail personnalisées
• Plates-formes de messagerie sécurisées
• Rappels de paiement numérique

Communications par e-mail mensuelles	1,4 million
Taux d'ouverture par e-mail	27.3%
Taux de réponse à la communication numérique	19.7%

Réseaux d'agence de recouvrement tiers

Métriques de collaboration de réseau:

Total des agences de collecte des partenaires	87 agences à l'échelle nationale
Recouvrement annuel de la dette par le biais de partenaires	342,6 millions de dollars
Efficacité du performance des partenaires	Taux de récupération de 44,2%

Encore Capital Group, Inc. (ECPG) - Modèle d'entreprise: segments de clientèle

Les consommateurs avec une dette de carte de crédit en souffrance

En 2023, Encore Capital Group gère environ 19,4 milliards de dollars de créances. La dette de carte de crédit représente une partie importante de leur portefeuille.

Catégorie de dette	Valeur totale du portefeuille	Solde moyen du compte
Dette de carte de crédit	7,6 milliards de dollars	3 750 $ par compte

Détenteurs de dettes médicales

La dette médicale est un segment critique pour la stratégie d'achat de la dette de Capital Group.

• La dette médicale représente environ 22% du total des créances
• Valeur du portefeuille de dettes médicales estimées: 4,3 milliards de dollars
• Dette médicale moyenne par compte: 2 850 $

Defaultres de prêt personnel

Les comptes personnels non performants représentent un autre segment de clientèle clé.

Type de prêt	Créiteurs totaux	Taux par défaut
Prêts personnels	3,2 milliards de dollars	37.5%

NON PERFORMEURS STAND

Le segment de la dette de prêt étudiant offre une diversification importante du portefeuille.

• Créances de prêt étudiant: 2,1 milliards de dollars
• Montant de défaut moyen du prêt étudiant moyen: 37 000 $
• Représente 11% du total des créances

Comptes de dette de petites entreprises

La dette des petites entreprises représente un segment de niche mais important pour Encore Capital Group.

Catégorie de dette commerciale	Portefeuille total	Dette commerciale moyenne
Dette de petites entreprises	2,2 milliards de dollars	65 000 $ par compte

Encore Capital Group, Inc. (ECPG) - Modèle d'entreprise: Structure des coûts

Frais d'acquisition du portefeuille de dettes

En 2022, Encore Capital Group a dépensé 470,3 millions de dollars pour les achats de portefeuille d'endettement. Les investissements totaux de la société dans les créances de consommation facturées étaient:

Année	Coût d'acquisition du portefeuille
2022	470,3 millions de dollars
2021	412,6 millions de dollars
2020	338,5 millions de dollars

Investissements infrastructures technologiques

TECHNOLOGIE ANNUELLE ET COMPENCES D'INFRASTRUCTURE pour Encore Capital Group:

• Investissements technologiques et infrastructures en 2022: 37,2 millions de dollars
• Infrastructure informatique dépenses en capital: 12,5 millions de dollars
• Coûts de développement et de maintenance logiciels: 24,7 millions de dollars

Frais juridiques et de conformité

Compliance et dépenses juridiques pour l'entreprise:

Catégorie de dépenses	Coût annuel
Coûts opérationnels du service juridique	18,6 millions de dollars
Frais de conformité réglementaire	11,3 millions de dollars
Consultations juridiques externes	6,9 millions de dollars

Compensation des employés

Répartition des dépenses liées aux employés:

• Compensation totale des employés en 2022: 214,5 millions de dollars
• Salaires et salaires: 178,3 millions de dollars
• Avantages sociaux: 36,2 millions de dollars

Marketing et sensibilisation des clients

Frais de marketing et d'engagement client:

Catégorie de dépenses de marketing	Coût annuel
Marketing numérique	5,7 millions de dollars
Canaux de marketing traditionnels	3,2 millions de dollars
Plateformes de communication client	2,5 millions de dollars

Encore Capital Group, Inc. (ECPG) - Modèle d'entreprise: Strots de revenus

Frais de collecte de dettes

Depuis le rapport annuel de 2022, Encore Capital Group a généré 1,38 milliard de dollars de revenus totaux des activités de recouvrement de dettes.

Source de revenus	Montant (2022)	Pourcentage du total des revenus
Collections brutes achetées	1,38 milliard de dollars	87.3%
Frais de collecte contingents	201,4 millions de dollars	12.7%

Revaluation du portefeuille de dettes

Encore Capital Group s'engage dans la revente du portefeuille de dettes stratégiques avec les caractéristiques suivantes:

• Coût d'acquisition moyen du portefeuille en 2022: 0,14 $ sur le dollar
• Portefeuilles de dettes totales achetées en 2022: 1,1 milliard de dollars
• Collections brutes des portefeuilles achetés: 1,38 milliard de dollars

Intérêt sur les dettes récupérées

Les revenus d'intérêts des portefeuilles de dettes récupérés ont totalisé 42,6 millions de dollars en 2022.

Revenus de négociation de règlement

Catégorie de règlement	Revenu total (2022)
Comptes de dette réglés	512,3 millions de dollars
Taux de règlement moyen	35.6%

Structures de commission basées sur la performance

Encore Capital Group génère des revenus supplémentaires grâce à des commissions basées sur les performances:

• Collections de frais contingents: 201,4 millions de dollars en 2022
• Commissions de l'agence de recouvrement tierces: 45,7 millions de dollars
• Taux de commission moyen: 18,2%

Répartition totale des revenus pour 2022: Collections brutes de créances achetées: 1,38 milliard de dollars Collections contingentes: 201,4 millions de dollars Revenu des intérêts: 42,6 millions de dollars Revenu total: 1,62 milliard de dollars

Encore Capital Group, Inc. (ECPG) - Canvas Business Model: Value Propositions

You're looking at the core value Encore Capital Group, Inc. (ECPG) delivers across its ecosystem, grounded in the late 2025 operational snapshot. This isn't just about buying debt; it's about the dual function of providing market efficiency and consumer pathways.

Converting Distressed Assets into Cash Flow

The engine of the business model is the conversion of purchased defaulted debt into realized cash. For the third quarter ended September 30, 2025, Encore Capital Group, Inc. reported record global collections of $663 million, which was an increase of 20% year-over-year. This operational strength directly fuels the entire model.

Here's a quick look at the asset acquisition and cash realization for Q3 2025:

Metric	Q3 2025 Amount	Year-over-Year Change
Global Collections	$663 million	Up 20%
U.S. Collections	$502 million	Up 25%
Europe (Cabot) Collections	$160 million	Up 8%
Global Portfolio Purchases	$346 million	Up 23%
U.S. Portfolio Purchases (MCM)	$261 million	Up 13%

The company's asset base is growing, with Average Receivable Portfolios rising 16% to $4.23 billion as of Q3 2025. Furthermore, the Estimated Remaining Collections (ERC) grew 10% to $9.49 billion, showing a deeper pool of future cash flow potential.

Providing Liquidity to Financial Institutions

Encore Capital Group, Inc. acts as a necessary buyer for financial institutions, taking on non-performing loans that are an expected outcome of the lending business. This activity provides immediate liquidity to banks and credit card issuers. In Q3 2025, global portfolio purchases totaled $346 million, up 23% from the prior year, demonstrating active deployment of capital into the market. The concentration in the U.S. was significant, with 75% of deployed capital directed there in Q3 2025, capitalizing on what management noted was an ongoing attractive market opportunity driven by ample portfolio supply.

Creating Pathways for Consumers to Achieve Financial Recovery

The value proposition to the consumer segment is framed around resolution and recovery. Encore Capital Group, Inc. states its mission is to create pathways to economic freedom for the consumer. This is executed through engagement strategies designed to help individuals manage and resolve their obligations. The company's operational focus is on exceeding collection expectations while maintaining a high level of consumer focus.

Ethical and Compliant Debt Resolution via a Consumer Bill of Rights

The commitment to ethical resolution is a stated differentiator. Encore Capital Group, Inc. is known for its Consumer Bill of Rights, which sets industry-leading commitments to consumers. This framework guides interactions and resolution processes.

Key tenets of the consumer-facing value include:

• Setting industry-leading commitments to consumers.
• Ensuring the highest level of compliance in resolution efforts.
• Focusing on helping consumers toward financial recovery.

Delivering Attractive, Risk-Adjusted Returns to Shareholders

For investors, the value proposition centers on generating strong, cycle-resistant returns through scale and data expertise. The Q3 2025 results clearly reflect this delivery. Earnings Per Share (EPS) hit a record of $3.17, a massive 152% increase year-over-year, with Net Income rising 144% to $74.7 million. The company actively returns capital to shareholders, reporting approximately $60 million in share repurchases year-to-date through Q3 2025, alongside a board authorization for an additional $300 million repurchase program. Valuation metrics at the time also suggested attractiveness, with a Forward P/E ratio of 5.46 and a Price-to-Sales (P/S) ratio of 0.74.

Encore Capital Group, Inc. (ECPG) - Canvas Business Model: Customer Relationships

You're looking at how Encore Capital Group, Inc. interacts with the people whose accounts they manage. It's defintely a high-volume business, but the stated approach leans heavily on compliance and tailored solutions, which is key for maintaining seller relationships.

Empathetic and respectful consumer engagement model

Encore Capital Group, Inc. bases its consumer interaction on insights from its own research, like the third Economic Freedom Study conducted in the spring of 2025, surveying over 6,000 U.S. and U.K. adults. The company's strategy is shaped by findings such as 27% of adults in both countries defining economic freedom as being debt-free. This focus informs their solutions.

• 'Being debt-free' was the top definition of economic freedom for 27% of U.S. and U.K. adults in the 2025 study.
• The study revealed that about one-quarter (24%) of adults in both countries felt a discount on debt owed would be most helpful.
• The company maintains a unique Consumer Bill of Rights, highlighting its commitment to consumer protection.

High-volume, standardized digital and direct communication

The scale of operations requires standardized, yet compliant, communication across its U.S. subsidiary, Midland Credit Management (MCM), and its European arm, Cabot Credit Management. The volume of collections shows the scale of these interactions. For instance, global collections in the second quarter of 2025 hit a record $655 million.

Here's a quick look at the collection scale from the first half of 2025:

Metric	Q1 2025 Amount	Q2 2025 Amount
Global Collections	$605 million	$655 million
U.S. Collections (MCM)	$454 million	$490 million
Europe Collections (Cabot)	$150 million	$164 million

Dedicated customer service and payment plan negotiation

The approach emphasizes working one-on-one with consumers, tailoring solutions to their unique needs. The survey data suggests consumers value time to pay; nearly the same number as those wanting a discount said having more time to pay off debt would be most helpful. This aligns with the stated goal of helping individuals manage their debt obligations.

Focus on long-term, compliant resolution over aggressive tactics

Encore Capital Group, Inc. stresses maintaining the highest level of compliance. Its U.S. business, MCM, has achieved certification from all major U.S. issuers selling charged-off accounts. Cabot, in the U.K., was the first large credit management service company to receive full FCA authorization. The company raised its full-year global collections guidance to approximately $2.5 billion for 2025, reflecting confidence in its disciplined execution.

The full-year 2025 collections guidance reflects a year-over-year growth expectation of 15.5%.

Encore Capital Group, Inc. (ECPG) - Canvas Business Model: Channels

You're looking at how Encore Capital Group, Inc. (ECPG) actually reaches the people whose debt they own. It's a mix of old-school outreach and modern digital tools, all channeled through their main operating units, Midland Credit Management (MCM) in the U.S. and Cabot Credit Management (CCM) in Europe.

The effectiveness of these channels is directly reflected in the cash coming in. For instance, global collections hit a record $655 million in the second quarter of 2025, marking a 20% year-over-year jump. By the third quarter of 2025, global collections were up again to a record $663 million, a 20% increase over Q3 2024. This performance shows the channels are working to convert the purchased portfolios.

Direct mail and digital communication with consumers

Encore Capital Group, Inc. relies on a multi-pronged approach to initiate contact. While specific direct mail volumes aren't public, the overall digital push is noted as driving results. The company reported seeing performance improvement in its digital channel, particularly for newer debt vintages.

• The Economic Freedom Study, conducted in April-May 2025, surveyed over 6,000 adults in the U.S. and U.K., providing insights that shape communication strategy.
• The U.S. subsidiary, Midland Credit Management (MCM), maintains its Consumer Bill of Rights, which governs direct interactions.

In-house call centers (Midland Credit Management, Cabot)

The in-house call centers are central to the direct engagement strategy. MCM's strong U.S. performance is a key driver for the entire company. MCM portfolio purchases in Q3 2025 were $261 million, up 13% from Q3 2024, leading to record MCM collections of $502 million in that quarter, a 25% increase YoY.

Cabot's collections in Europe were $160 million in Q3 2025, up 8% compared to the third quarter last year. The company also noted performance improvement in its call center channel.

Online consumer portals for self-service payments

Digital self-service is an increasingly important component, supporting the overall collections growth. The company's deployment of new technologies and enhanced digital capabilities is explicitly credited with helping drive record collections performance across the board.

Online portals allow consumers to manage their accounts, which aligns with the consumer preference for self-service options.

Third-party collection partners and legal channels

While Encore Capital Group, Inc. focuses heavily on its in-house operations through MCM and Cabot, third-party partners and legal avenues are part of the broader channel mix, especially in specific geographies or for specific portfolio types. Cabot Credit Management in Europe, for example, has been selective, but the overall strategy allows for capital allocation flexibility across markets.

The company's financial structure allows it to direct capital to markets with the highest returns, which implicitly includes optimizing the use of internal versus external channels based on market dynamics.

The following table summarizes the collection results that demonstrate the output of these channels through the first three quarters of 2025:

Metric	Q3 2025 Amount (Millions USD)	YoY Growth (Q3 2025 vs Q3 2024)	Source Quarter
Global Collections	$663	20%	Q3 2025
U.S. Collections (MCM)	$502	25%	Q3 2025
Europe Collections (Cabot)	$160	8%	Q3 2025
Global Collections	$655	20%	Q2 2025
U.S. Collections (MCM)	$490	24%	Q2 2025
U.S. Collections (MCM)	$454	23%	Q1 2025

The full-year 2025 guidance for global collections was raised to $2.5 billion, representing 15.5% year-over-year growth, based on the strong channel execution seen through Q2.

Encore Capital Group, Inc. (ECPG) - Canvas Business Model: Customer Segments

Encore Capital Group, Inc. purchases or services portfolios of receivables from various originating entities globally. The scale of their asset base as of the third quarter of 2025 reflects the size of these upstream customer relationships.

Major financial institutions and credit grantors (NPL sellers)

These are the primary sellers of non-performing loan (NPL) portfolios to Encore Capital Group, Inc. The company's asset base is built upon these transactions. As of the third quarter of 2025, the company reported average receivable portfolios of $4.23B, which was an increase of 16% year-over-year. The total Estimated Remaining Collections (ERC) stood at $9.49B, up 10%.

The volume of new assets acquired in the third quarter of 2025 was $346.1M, marking a 23% increase compared to the third quarter of the prior year. The company anticipates its global portfolio purchasing in 2025 will exceed the $1.35B purchased in 2024.

Consumers with defaulted or past-due unsecured debt obligations

These individuals represent the ultimate obligors from whom Encore Capital Group, Inc. seeks to recover outstanding balances. The company's collections activity directly targets this segment. Global collections for the third quarter of 2025 reached a record $663.0M, a 20% increase year-over-year. The U.S. segment, Midland Credit Management (MCM), delivered record collections of $502M in the third quarter of 2025, up 25%.

The company's overall expected collections for the full year 2025 are guided to be approximately $2.55B, reflecting an 18% year-over-year growth.

Utility providers and other non-bank creditors

Encore Capital Group, Inc. also purchases or services receivables from utility providers and other non-bank creditors through its subsidiaries globally. This represents a diversification in the source of charged-off debt portfolios acquired.

Global markets, primarily U.S. (MCM) and Europe (Cabot)

Encore Capital Group, Inc. operates across North America, Europe, Asia, and Latin America, with a clear concentration of capital deployment in specific regions based on return opportunities. The two primary operating segments mentioned are Midland Credit Management (MCM) in the U.S. and Cabot Financial in Europe.

In the third quarter of 2025, 75% of the deployed capital for portfolio purchases was allocated to the U.S. market. The MCM business saw portfolio purchases of $261M in Q3 2025, up 13% year-over-year.

The European business, Cabot, had portfolio purchases of $50M in the second quarter of 2025, which was in line with its historical trend, while the U.K. market was noted as impacted by subdued consumer lending.

The geographic allocation of portfolio purchases for the second quarter of 2025 showed a split of 86% to the United States and 14% to Europe.

The following table summarizes the portfolio activity for the primary geographic segments based on recent quarterly data:

Segment/Metric (Q3 2025)	Midland Credit Management (U.S.)	Cabot Financial (Europe)	Global Total
Portfolio Purchases	$261 million	Not explicitly stated for Q3 2025	$346.1 million
Collections	$502 million	Not explicitly stated for Q3 2025	$663.0 million
Collections Growth (YOY)	25%	Not explicitly stated for Q3 2025	20%

The company's customer base for servicing and recovery efforts spans across multiple continents, but the immediate focus for asset acquisition remains heavily weighted toward the U.S. market.

• Global employees: 730 (as of 2024 data point)
• Countries where Encore Capital Group, Inc. operates: 1+ (North America, Europe, Asia, Latin America)
• Portfolio purchases in Q1 2025 (Global): $368 million
• Collections in Q1 2025 (Global): $605 million

Encore Capital Group, Inc. (ECPG) - Canvas Business Model: Cost Structure

The Cost Structure for Encore Capital Group, Inc. (ECPG) is heavily weighted toward asset acquisition and the ongoing servicing of its substantial debt load, all while managing significant operational overhead to maximize collections efficiency.

Cost of purchasing debt portfolios (primary capital expenditure)

The acquisition of charged-off debt portfolios is the single largest capital outlay. For the third quarter of 2025, Encore Capital Group, Inc. deployed $346 million in global portfolio purchases, representing a 23% increase compared to the third quarter of 2024. This capital deployment is split between its two main operating segments, Midland Credit Management (MCM) in the U.S. and Cabot Credit Management in Europe.

• U.S. Portfolio Purchases (MCM) in Q3 2025: $261.1 million.
• Europe Portfolio Purchases (Cabot) in Q3 2025: $84.9 million.

Operating expenses, including Q3 2025 $287 million in collections and administrative costs

Operating expenses are closely managed to ensure margin leverage against collections growth. In the third quarter of 2025, operating expenses totaled $287 million, which was an increase of only 10% year-over-year, while collections grew by 20%. This disparity drove the Cash Efficiency Margin for the quarter up to 58.4%, compared to 54.8% in Q3 2024. Encore Capital Group, Inc. expects the cash efficiency margin to be approximately 58% for the full year 2025.

Significant interest expense on debt (projected $295 million for 2025)

Servicing the capital structure involves a significant, recurring interest expense. The company projects the total interest expense for the full year 2025 to be approximately $295 million. For context, the interest expense and other income in Q3 2025 alone was $73.3 million, reflecting higher debt balances from recent capital market activities, such as the October 2025 issuance of $500.0 million in senior secured notes due 2031.

The key cost components and related metrics for the period are summarized below:

Cost/Expense Category	Latest Reported Period	Amount (in millions USD)
Operating Expenses	Q3 2025	$287.175
Interest Expense (Projected)	Full Year 2025	$295
Interest Expense & Other Income	Q3 2025	$73.3
Global Portfolio Purchases	Q3 2025	$346

Compliance, legal, and regulatory overhead

Encore Capital Group, Inc. emphasizes maintaining the highest level of compliance and consumer focus as part of its strategy. While specific dollar amounts for compliance, legal, and regulatory overhead are embedded within the broader operating expenses, management explicitly notes striving to exceed collection expectations while maintaining this focus.

• The company operates under a stated Consumer Bill of Rights.
• Operational execution is tied to maintaining a strong balance sheet and competitive funding costs.

Personnel costs for global operations and analytics teams

Personnel costs support global operations across Midland Credit Management (U.S.) and Cabot Credit Management (Europe), as well as the development and deployment of new technologies. These costs are a component of the total operating expenses. The focus on technology, which management cited as driving collections overperformance, implies significant investment in analytics and technology personnel.

• Global operations support two main businesses: MCM and Cabot.
• Enhanced digital capabilities and operational innovations are key to performance.

Finance: draft 13-week cash view by Friday.

Encore Capital Group, Inc. (ECPG) - Canvas Business Model: Revenue Streams

You're looking at how Encore Capital Group, Inc. (ECPG) actually brings in the money, which is key to understanding its valuation. The revenue streams are heavily concentrated around the lifecycle of the debt portfolios they acquire.

The core revenue driver is the amortization of purchased debt portfolios. This is the cash flow generated as they collect on the debt they bought. For the third quarter of 2025, the specific figure for Portfolio Amortization was reported at $293 million.

This collection activity is the engine of the business. Global collections hit a record in Q3 2025 at $663 million. That's a strong signal of operational effectiveness. To be fair, the full-year 2025 global collections guidance was raised to approximately $2.55 billion, showing management's confidence in sustaining this pace.

The total revenue for the third quarter of 2025 was $460.4 million, which represented a year-over-year growth of 25.4%. This total is composed of the debt purchasing revenue component and smaller fee-based streams. The primary component here is the Portfolio Revenue, which came in at $370 million for the quarter, serving as the main proxy for the debt purchasing revenue stream.

Here's a quick look at the Q3 2025 revenue components:

Revenue Component	Q3 2025 Amount (in millions)
Total Revenues	$460.4
Portfolio Revenue (Debt Purchasing)	$370
Servicing and Other Revenues	$27
Portfolio Amortization (Core)	$293

The smaller, but still important, revenue stream comes from servicing and other fee-based revenues. For Q3 2025, this segment contributed $27 million to the top line. This shows they aren't just buying and collecting; they also earn fees for managing assets or providing other related services.

You can see the breakdown of the record collections performance across their main operating segments for Q3 2025:

• Global Collections: $663 million.
• U.S. Collections (MCM business): Record $502 million.
• Europe Collections (Cabot business): $160 million.
• Total Portfolio Purchases for Q3 2025: $346 million.

Finance: draft 13-week cash view by Friday.