Encore Capital’s 2026 Rally Faces Collection and Cost Tests

Encore Capital Group shares have risen 73.8% so far in 2026, while its industry fell 16.2% and the S&P 500 gained 17.2%. As of Thursday afternoon, the shares traded at $93.78, down 0.7% since the previous close.

Credit Acceptance shares gained 19.7% year to date, while PRA Group shares rose 10.2%, according to the article. Zacks’ analysis points to U.S. debt portfolio supply and collections as key supports for Encore’s outlook.

Encore reported $688.1 million in U.S. portfolio purchases in the first half of 2026, and $1.46 billion in global collections. Management expects portfolio purchases of $1.4 billion to $1.5 billion this year, with most directed to U.S. opportunities.

The company’s estimated remaining collections reached $10.18 billion as of June 30, up 9% from a year earlier. Zacks Consensus estimates project sales growth of 8.9% in 2026 and 2.1% in 2027.

The analysis also flags risks. Midland Credit Management accounted for 85.3% of global portfolio purchasing dollars in the first half, leaving Encore exposed to changes in U.S. credit conditions. Legal collection expenses rose 25.8% year over year during that period.

Encore’s leverage stood at 2.3 times at June 30, down from 2.6 times a year earlier. The company had $793.4 million available under its revolvers and facilities, while first-half interest expense totaled $147 million.