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Dec 31, 2023

Encore Q4 2023 Earnings Report

Encore Capital Group's Q4 2023 financial results were announced, revealing a net loss impacted by non-cash charges, alongside growth in U.S. portfolio purchases and overall global portfolio purchases.

Key Takeaways

Encore Capital Group reported a net loss for Q4 2023, primarily due to a goodwill impairment charge. However, the company saw growth in U.S. portfolio purchases and an increase in global portfolio purchases. They expect portfolio purchases and collections to grow in 2024.

U.S. market for portfolio supply continued strong growth.

Global portfolio purchases increased by 34% in 2023.

U.S. portfolio purchases reached a record $815 million in 2023.

Encore anticipates growth in both portfolio purchases and collections for 2024.

Total Revenue
$277M
Previous year: $234M
+18.5%
EPS
$1.25
Previous year: -$3.11
-140.2%
Portfolio purchases
$292M
Gross Profit
$115M
Previous year: $81.6M
+40.7%
Cash and Equivalents
$158M
Previous year: $144M
+10.0%
Free Cash Flow
$53.4M
Previous year: $39.6M
+34.6%
Total Assets
$4.63B
Previous year: $4.51B
+2.7%

Encore

Encore

Forward Guidance

Encore expects portfolio purchases and collections to grow in 2024, anchored by a robust pipeline of supply in the U.S., where they already have $230 million of committed portfolio purchases for the first quarter.

Positive Outlook

  • Expect portfolio purchases to grow in 2024.
  • Expect collections to grow in 2024.
  • Robust pipeline of supply in the U.S.
  • $230 million of committed portfolio purchases for Q1.