Here are 1-2 brief analogies for Encore Capital (ECPG):

• Carvana for defaulted credit card and other consumer loans: Like Carvana buys used cars directly, Encore Capital buys portfolios of defaulted consumer debt from banks and other lenders to collect on them.
• Big Lots for banks' non-performing consumer debt: Similar to how Big Lots acquires closeout and discounted merchandise, Encore Capital buys non-performing consumer loans at a significant discount from financial institutions.

• Debt Portfolio Acquisition: The purchase of portfolios of defaulted consumer receivables from banks and other credit grantors.
• Debt Management and Recovery: The service of working with consumers to resolve their outstanding debts through various payment solutions and settlement options.

Encore Capital Group (ECPG) is a global specialty finance company that specializes in the acquisition and collection of portfolios of defaulted consumer receivables.

Given its business model, Encore Capital's primary interaction for revenue generation is with individual debtors from whom it collects on acquired debt. Therefore, the company primarily "serves" individuals who hold defaulted debt. The categories of these individuals, based on the type of debt they hold, include:

• Credit Card Debt Holders: Individuals who have defaulted on their credit card obligations, representing a significant portion of the portfolios Encore Capital acquires.
• Consumer Loan Debt Holders: Individuals who have defaulted on various types of unsecured consumer loans, such as personal loans, installment loans, and other direct consumer credit facilities.
• Other Specialized Consumer Debt Holders: This category encompasses individuals with defaulted obligations from a broader range of sources, including medical bills, retail installment contracts, utility bills, and telecommunications debt.

Ashish Masih, President and Chief Executive Officer

Ashish Masih joined Encore Capital Group in 2009 and was appointed President and CEO in June 2017. Prior to his current role, he served as President of Midland Credit Management (MCM), Encore's largest business unit. He also oversaw Encore's Asset Reconstruction Company based in India, which is a joint venture with the International Finance Corporation (IFC) and a private equity firm. Before joining Encore, Mr. Masih held senior roles as Vice President at Capital One Financial Corp. in its U.S. credit card business and also worked at McKinsey & Company and KPMG Consulting.

Tomas Hernanz, Executive Vice President, Chief Financial Officer

Tomas Hernanz assumed the role of Executive Vice President, Chief Financial Officer of Encore Capital Group in April 2025. He joined Encore in 2016 and previously served as Chief Financial Officer for Encore's European business, Cabot Credit Management, since 2022, holding other senior strategy and financial roles within the organization. Prior to his time at Encore, Mr. Hernanz was a partner at the financial advisory firm Ondra Partners and held various senior investment and financial roles with global firms, including Goldman Sachs and Citigroup.

Jonathan Clark, Executive Vice President and Chief Financial Officer (Retiring March 2025)

Jonathan Clark served as Executive Vice President and Chief Financial Officer at Encore Capital Group since 2014 and is set to retire at the end of March 2025. He notably served as Executive Vice President and Chief Financial Officer of SLM Corp. (Sallie Mae) from 2008 to 2013, where he significantly increased investor value and guided the company during the global financial crisis. Earlier in his career, he was a Managing Director at Credit Suisse Securities from 2000 to 2007 and held executive roles at Prudential Securities, The First Boston Corporation, and other companies.

Ryan Bell, President, Midland Credit Management

Ryan Bell joined Encore in 2011 as a Vice President. As President of Midland Credit Management, Inc., he is responsible for the strategic direction and financial performance of Encore's U.S. debt purchasing business. He previously served as Executive Vice President and Chief Operating Officer, overseeing all operational units of Midland Credit Management, and led Encore's decision science group, which is responsible for asset valuation, predictive model development, and financial forecasting. Before joining Encore, Mr. Bell spent 11 years in marketing and analysis at Capital One Financial Corp., primarily in the auto finance line of business, gaining experience in marketing strategy, credit policy, new product development, business development, and operations strategy.

John Yung, President, International and Cabot Credit Management

John Yung is the President of International and Cabot Credit Management. He previously served as Chief Executive Officer of Baycorp, a former Encore Capital Group company, where he successfully led a turnaround of its Australian and New Zealand businesses. Before that, he was Encore's Senior Vice President of Strategy, where he was responsible for guiding the company's strategic direction with a focus on long-term growth and profitability.

• Regulatory and Litigation Risk

  Encore Capital operates in a highly regulated industry and is subject to extensive consumer protection and debt collection laws and regulations in both the United States and Europe. Changes in these laws or regulations, or the manner in which they are enforced, can significantly impact the company's business model and profitability. Historically, Encore has faced legal actions and investigations from regulatory bodies like the Consumer Financial Protection Bureau (CFPB) for alleged violations of debt collection practices, leading to consent orders, lawsuits, and financial penalties. Such regulatory scrutiny and ongoing litigation, including individual and class-action lawsuits, can result in substantial damages, required changes to business practices, and reputational harm.

• Economic Sensitivity and Supply of Receivables

  The core of Encore Capital's business involves purchasing portfolios of defaulted consumer receivables. The availability of these non-performing loans at attractive prices, and the company's ability to collect on them, is highly dependent on broader economic conditions, consumer credit stress levels, and delinquency rates. A decrease in consumer credit card balances, lower charge-off rates, or an improved economic outlook that reduces the supply of defaulted debt can negatively impact Encore's ability to acquire new portfolios and thus constrain its revenue and growth opportunities. Conversely, higher funding costs or tighter regulation could quickly erode margins and acquisition opportunities.

• Challenges in European Markets and Restructuring Efforts

  Encore Capital's European operations, primarily through its subsidiary Cabot, have faced significant operational challenges and restructuring efforts. The company has experienced impairments in the UK and European markets, leading to substantial write-downs, restructuring charges, and exits from underperforming markets. These difficulties in its European segment have resulted in a reduction of estimated remaining collections (ERC) and goodwill impairment charges, indicating a material impact on the company's financial performance. Ongoing market dynamics and the need for continued restructuring in these regions pose a persistent risk to Encore's overall profitability and operational efficiency.

Heightened Regulatory Environment and Consumer Protection Measures

There is a clear emerging trend towards more restrictive, granular, and technologically informed consumer protection laws globally, specifically impacting how debt can be collected, communicated, and litigated. This includes increasing focus on data privacy (e.g., new state privacy laws in the US, continued evolution and enforcement of GDPR in Europe), limitations on contact methods, greater transparency requirements for debt validation, and potential caps on interest or fees. This accelerating pace and scope of new laws and enforcement actions makes the debt collection business model more complex and costly, potentially reducing the profitability of purchased debt portfolios.

Proliferation of Online Debt Resolution and Consumer Empowerment Tools

New fintech companies and non-profit organizations are increasingly leveraging technology to empower consumers to manage, consolidate, dispute, or even self-represent in debt situations. Platforms such as SoloSuit (automates responses to debt lawsuits), Upsolve (assists with bankruptcy filings), and Tally (debt consolidation/management apps), along with various online legal aid resources, provide tools and information that make it easier for debtors to understand their rights, negotiate directly, or find alternatives to traditional collection processes. This trend can reduce the effectiveness of Encore Capital's purchased debt portfolios by enabling debtors to avoid or more effectively challenge collection efforts, thereby increasing recovery costs or decreasing recovery rates.

Encore Capital Group (ECPG) primarily operates in the debt purchasing and debt servicing/portfolio management sectors, focusing on defaulted consumer receivables. The company has significant operations in North America (primarily the U.S.) and Europe (including the UK, Ireland, France, and Spain), with additional operations in Latin America and Asia-Pacific.

The addressable markets for Encore Capital's main products and services are as follows:

• Global Debt Collection and Debt Purchase Market: This market was valued at approximately USD 47.7 billion in 2025 and is projected to reach USD 69.13 billion by 2035, growing at a Compound Annual Growth Rate (CAGR) of 3.7% from 2025 to 2035.
• North America Debt Collection and Debt Purchase Market (U.S.): North America accounts for 44% of the global debt collection and debt purchase market. Based on the 2025 global market size, this equates to an addressable market of approximately USD 20.99 billion in 2025. The U.S. debt collections industry alone was estimated at $14.99 billion in 2020 and is forecast to reach $16.7 billion by 2025.
• Europe Debt Collection and Debt Purchase Market: Europe holds a 32% share of the global debt collection and debt purchase market. This represents an addressable market of approximately USD 15.26 billion in 2025. Separately, the European debt collection market was valued at approximately €19.6 billion (equivalent to roughly $21.1 billion at current exchange rates) in 2024 and is projected to grow at an 11.32% CAGR from 2025 to 2033.
• United Kingdom Debt Collection Agencies Industry: This industry, which includes debt purchasing and traditional debt collection, is estimated at £2.0 billion in 2025.

Specific market sizes for Ireland, France, Spain, Latin America, and Asia-Pacific for debt purchasing and debt servicing were not available in the provided information.

Encore Capital (ECPG) is expected to drive future revenue growth over the next two to three years through several key initiatives and market conditions:

1. Increased Portfolio Purchases, Particularly in the U.S.: Encore Capital anticipates continued favorable conditions for acquiring nonperforming loan (NPL) portfolios, especially in the U.S. market. The company's Q3 2025 global portfolio purchases increased by 23% to $346 million compared to the prior year, and this higher level of purchasing is expected to fuel collections growth into the future. For the full year 2025, portfolio purchase guidance is projected to exceed the $1.35 billion purchased in 2024, with its U.S. business, Midland Credit Management (MCM), poised to surpass its previous record levels of purchasing. This growth is supported by high charge-off rates and robust lending in the U.S. consumer credit market.
2. Enhanced Collections Strategies and Technological Advancements: The company attributes recent growth and future expectations to enhanced collections strategies and significant investments in technology, including new digital capabilities and operational innovation. These advancements enable Encore to reach more consumers and improve payment rates, particularly within its U.S. MCM business.
3. Stable Consumer Repayment Trends: Encore's strong collections performance has been supported by stable consumer behavior. Management currently observes stable payment activity, which, combined with ongoing operational improvements, is expected to continue supporting earnings and cash flow.
4. Growth in Global Collections: The company has raised its full-year 2025 global collections guidance, now expecting approximately 18% growth to reach $2.55 billion. This follows a 20% increase in global collections to a record $663 million in Q3 2025. The growth in average receivable portfolios, which rose 16% to $4.2 billion, and estimated remaining collections (ERC) of $9.49 billion (up 10%), indicate a larger asset scale and higher near-term cash conversion.
5. Strategic Expansion in Select European Markets: While facing challenges in the UK market, Encore Capital is actively expanding its presence in other select European markets, such as France and Spain. This geographical diversification provides an opportunity to broaden revenue streams and reduce dependence on mature markets, leveraging the company's expertise in debt recovery.

Share Repurchases

• In November 2025, Encore Capital's Board of Directors authorized an additional $300 million under its share repurchase program, boosting the total program to $600 million.
• Year-to-date through the third quarter of 2025, the company repurchased approximately $60 million of its shares.
• In 2021, Encore returned $390 million of capital to shareholders through share repurchases, which included buying back 7.1 million shares, representing 23% of shares outstanding as of December 31, 2020.