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Dec 31, 2024
Encore Q4 2024 Earnings Report
Encore Capital Group reported a net loss in the fourth quarter of 2024, despite significant growth in global portfolio purchases and collections.
Key Takeaways
Encore Capital Group reported a net loss of $225.3 million in the fourth quarter of 2024, compared to a net loss of $270.8 million in the same period last year. Global portfolio purchases increased by 69% to $495.1 million, and global collections increased by 21% to $554.6 million. The loss was primarily driven by significant restructuring actions and non-cash charges related to its Cabot business.
Global portfolio purchases increased by 69% to $495.1 million in Q4 2024.
Global collections increased by 21% to $554.6 million in Q4 2024.
The company reported a GAAP net loss of $225.3 million in Q4 2024.
Significant non-cash charges, including a $100.6 million goodwill impairment, impacted the financial results.
Encore
Encore
Encore Revenue by Segment
Encore Revenue by Geographic Location
Revenue by Segment
Total debt purchasing Revenue
CapyFin.comServicing Revenue
CapyFin.comOther revenues Revenue
CapyFin.comRevenue by Geographic Location
U.S. purchases Revenue
CapyFin.comEurope purchases Revenue
CapyFin.com Forward Guidance
Encore Capital Group anticipates continued growth in global portfolio purchases and collections in 2025, aiming to resume share repurchases and improve financial health.
Positive Outlook
- Anticipate global portfolio purchases in 2025 to exceed $1.35 billion.
- Expect global collections in 2025 to increase by 11% to $2.4 billion.
- Plan to resume share repurchases in 2025 due to continued growth in cash generation and improving leverage.
- Committed to the critical role in the consumer credit ecosystem.
- Committed to helping consumers restore their financial health.
Challenges Ahead
- The reported net loss in 2024 is not indicative of operational performance due to non-cash charges.
- Cabot's business environment continued to be highly competitive.
- Cabot's business was impacted by macroeconomic factors such as subdued lending growth.
- Cabot's business was impacted by low charge-offs.
- The company took restructuring actions including exiting two underperforming markets (Spanish and Italian NPL markets).