Encore Capital Group Inc

F:ECP

Record quarter: Encore said Q2 was another strong quarter, with record U.S. portfolio purchasing and record global collections helping drive higher earnings.

Guidance raised: The company lifted 2026 global collections guidance to $2.8 billion to $2.85 billion and said it now expects to finish near the top of its $1.4 billion to $1.5 billion portfolio purchase range.

Funding win: A $1 billion refinancing lowered borrowing costs but created $30.5 million of pretax refinancing charges in the quarter, or about $1 per share.

U.S. strength: Management said the U.S. debt buying market remains very favorable, with strong supply, elevated charge-offs and stable consumer payment behavior.

Collections momentum: New technology and digital tools are pulling collections forward earlier in a portfolio’s life, boosting near-term results and gradually flowing into higher forecasted recoveries.

Capital discipline: Encore bought back about $27 million of stock in the quarter, kept leverage at 2.3x, and said it remains within its 2x to 3x target range.