ENCORE CAPITAL GROUP INCECPG
ENCORE CAPITAL GROUP INC Segments Disclosure
Note 14: Segment and Geographic Information
The Company conducts business through several operating segments. The accounting policies applied to the segments are the same as those described in the summary of significant accounting policies. The Company determined its operating segments meet the aggregation criteria, and therefore, it has one reportable segment, debt purchasing and recovery segment, based on similarities among the operating units including economic characteristics, the nature of the services, the nature of the production process, customer types for their services, the methods used to provide their services and the nature of the regulatory environment. The Company’s Chief Operating Decision Maker, which is the Company’s chief executive officer, relies on internal management reporting processes that provide segment revenues, segment total operating expenses, operating income, and segment asset information in order to make financial decisions. The measure of segment performance is operating income. The Company’s Chief Operating Decision Maker assesses the segment’s performance and makes decisions about the allocation of capital resources to each segment accordingly. Corporate and other unallocated represents corporate overhead and other items not allocated to any of the Company’s operating segments. Segment assets are presented in the Company’s Consolidated Statements of Financial Position as total assets.
The following tables present the results of operations of the Company’s reportable segment for the years ended December 31, 2025, 2024, and 2023, respectively (in thousands):
Year Ended December 31, 2025 | |||||||||||||||||
Debt purchasing and recovery segment | Corporate and other unallocated | Consolidated | |||||||||||||||
Total revenues | $ | 1,768,802 | $ | — | $ | 1,768,802 | |||||||||||
Total operating expenses(1) | (1,074,580) | (67,575) | (1,142,155) | ||||||||||||||
Operating income | 694,222 | 626,647 | |||||||||||||||
Other segment items(2) | 3,422 | 3,422 | |||||||||||||||
Interest expenses(3) | (293,910) | (293,910) | |||||||||||||||
Provision for income taxes | (79,325) | (79,325) | |||||||||||||||
Net income | $ | 256,834 | |||||||||||||||
(1)Certain corporate activities that are not allocated to the debt purchasing and recovery segment are recorded under corporate and other unallocated. During the year ended December 31, 2025, such non-allocated operating expenses primarily consisted of salaries and employee benefits of $44.6 million for corporate employees and general and administrative expenses of $20.6 million.
(2)The other segment items category includes other income, and loss on extinguishment of debt.
(3)The Company manages its available capital resources at the corporate level. Interest expenses are not allocated to operating segments.
Year Ended December 31, 2024 | |||||||||||||||||
Debt purchasing and recovery segment | Corporate and other unallocated | Consolidated | |||||||||||||||
Total revenue | $ | 1,316,361 | $ | — | $ | 1,316,361 | |||||||||||
Total operating expenses(1) | (1,101,055) | (57,976) | (1,159,031) | ||||||||||||||
Operating income | 215,306 | 157,330 | |||||||||||||||
Other segment items(2) | (1,000) | (1,000) | |||||||||||||||
Interest expenses(3) | (252,545) | (252,545) | |||||||||||||||
Provision for income taxes | (43,029) | (43,029) | |||||||||||||||
Net loss | $ | (139,244) | |||||||||||||||
(1)Certain corporate activities that are not allocated to the debt purchasing and recovery segment are recorded under corporate and other unallocated. During the year ended December 31, 2024, such non-allocated operating expenses primarily consisted of salaries and employee benefits of $37.8 million for corporate employees and general and administrative expenses of $19.3 million.
(2)The other segment items category includes other income, and loss on extinguishment of debt.
(3)The Company manages its available capital resources at the corporate level. Interest expenses are not allocated to operating segments.
Year Ended December 31, 2023 | |||||||||||||||||
Debt purchasing and recovery segment | Corporate and other unallocated | Consolidated | |||||||||||||||
Total revenue | $ | 1,222,680 | $ | — | $ | 1,222,680 | |||||||||||
Total operating expenses(1) | (1,148,161) | (57,984) | (1,206,145) | ||||||||||||||
Operating income | 74,519 | 16,535 | |||||||||||||||
Other segment items(2) | 5,078 | 5,078 | |||||||||||||||
Interest expenses(3) | (201,877) | (201,877) | |||||||||||||||
Provision for income taxes | (26,228) | (26,228) | |||||||||||||||
Net loss | $ | (206,492) | |||||||||||||||
(1)Certain corporate activities that are not allocated to the debt purchasing and recovery segment are recorded under corporate and other unallocated. During the year ended December 31, 2023, such non-allocated operating expenses primarily consisted of salaries and employee benefits of $33.9 million for corporate employees and general and administrative expenses of $22.9 million.
(2)The other segment items category includes other income.
(3)The Company manages its available capital resources at the corporate level. Interest expenses are not allocated to operating segments.
The following tables present information about geographic areas in which the Company operates (in thousands):
________________________
| Year Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Total revenues: | |||||||||||||||||
| United States | $ | 1,268,303 | $ | 991,949 | $ | 792,443 | |||||||||||
| Europe | |||||||||||||||||
| United Kingdom | 354,473 | 232,557 | 295,566 | ||||||||||||||
Other European countries(1) | 141,019 | 89,615 | 134,301 | ||||||||||||||
| Total Europe | 495,492 | 322,172 | 429,867 | ||||||||||||||
Other geographies(1) | 5,007 | 2,240 | 370 | ||||||||||||||
| Total | $ | 1,768,802 | $ | 1,316,361 | $ | 1,222,680 | |||||||||||
(1) None of these countries comprise greater than 10% of the Company’s consolidated revenues.
| December 31, 2025 | December 31, 2024 | ||||||||||
Long-lived assets(1): | |||||||||||
| United States | $ | 53,982 | $ | 60,050 | |||||||
| International | |||||||||||
United Kingdom | 49,461 | 44,726 | |||||||||
| India | 18,295 | 20,801 | |||||||||
Other foreign countries(2) | 16,971 | 13,109 | |||||||||
| 84,727 | 78,636 | ||||||||||
| Total | $ | 138,709 | $ | 138,686 | |||||||
(1)Long-lived assets consist of property and equipment, net and right of use assets.
(2)None of these countries comprise greater than 10% of the Company’s consolidated long-lived assets.
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.