ENCORE CAPITAL GROUP INC

Previous wording

With lending reaching record levels and the highest U.S. charge-off rate in ten years, supply remains elevated at a record level. Issuers have continued to sell predominantly fresh portfolios. Fresh portfolios are portfolios that are generally sold within six months of the consumer’s account being charged-off by the financial institution. Pricing in the first quarter remained at favorable levels as a result of elevated market supply. Issuers continue to sell their volume in mostly forward flow arrangements that are often committed early in the calendar year. We believe growth in lending and rising delinquency rates will drive continued growth in supply.

Current wording

With lending reaching record levels and the highest U.S. charge-off rate in ten years, supply remains elevated at a record level. Issuers have continued to sell predominantly fresh portfolios. Fresh portfolios are portfolios that are generally sold within six months of the consumer’s account being charged-off by the financial institution. Pricing in the second quarter remained at favorable levels as a result of elevated market supply. Issuers continue to sell their volume in mostly forward flow arrangements that are often committed early in the calendar year. We believe steadying lending and delinquency rates will result in stable market supply.

Previous wording

While we have seen sales activity across all of our European markets, underlying default rates are generally low by historic levels, and consumer lending volumes have stagnated. Sales levels are expected to fluctuate from quarter to quarter. In general, portfolio pricing remains competitive across our European footprint, constraining the amount of capital we can deploy in Europe.

Current wording

While sales activity across all of our European markets remains stable, underlying default rates are generally low by historic levels, and consumer lending volumes have stagnated. Sales levels are expected to fluctuate from quarter to quarter. In general, portfolio pricing remains competitive across our European footprint, constraining the amount of capital we elect to deploy in Europe.

Previous wording

In the United States, capital deployment increased during the three months ended March 31, 2025, as compared to the corresponding period in the prior year. The majority of our deployments in the U.S. come from forward flow agreements, and the timing, contract duration, and volumes for each contract can fluctuate leading to variation when comparing to prior periods. Portfolio purchases in the U.S. were robust as supply increased and pricing remained at favorable levels.

Current wording

In the United States, capital deployments increased during the three and six months ended June 30, 2025, as compared to the corresponding periods in the prior year. The majority of our deployments in the U.S. come from forward flow agreements, and the timing, contract duration, and volumes for each contract can fluctuate leading to variation when comparing to prior periods. Portfolio purchases in the U.S. were robust as supply increased and pricing remained at favorable levels.

Previous wording

In Europe, capital deployment decreased during the three months ended March 31, 2025, as compared to the corresponding period in the prior year, primarily driven by continued competitive pricing environment in Europe. Additionally, capital deployment was unfavorably impacted by foreign currency translation driven by the strengthening of the U.S. dollar against the British Pound during the comparable periods.

Current wording

In Europe, capital deployment increased during the three months ended June 30, 2025, as compared to the three months ended June 30, 2024. The increase was primarily driven by favorable foreign currency translation effect resulting from the weakening of the U.S. dollar against the British Pound during the comparable periods. Capital deployment remained relatively consistent during the six months ended June 30, 2025, as compared to the six months ended June 30, 2024. Pricing continues to remain competitive in Europe.

Previous wording

Gross collections from purchased receivables increased by $93.9 million, or 18.4%, to $604.8 million during the three months ended March 31, 2025, as compared to $510.9 million during the three months ended March 31, 2024. The increase in collections in the United States was primarily a result of consistent increases in capital deployments in the United States in recent periods. The increase in collections from purchased receivables in Europe was primarily driven by a combination of increases in capital deployments and acquisitions of portfolios with higher returns in recent periods. Additionally, collections in Europe were unfavorably impacted by foreign currency translation by approximately $2.2 million, during the three months ended March 31, 2025, primarily as a result of the strengthening of the U.S. dollar against the British Pound during the three months ended March 31, 2025 as compared to the three months ended March 31, 2024.

Current wording

Gross collections from purchased receivables increased by $108.3 million, or 19.8%, to $655.0 million during the three months ended June 30, 2025, as compared to $546.7 million during the three months ended June 30, 2024. Gross collections from purchased receivables increased by $202.2 million, or 19.1%, to $1,259.8 million during the six months ended June 30, 2025, as compared to $1,057.6 million during the six months ended June 30, 2024. The increases in collections in the United States were primarily a result of consistent increases in capital deployments in the United States in recent periods. The increases in collections from purchased receivables in Europe were primarily driven by a combination of increases in capital deployments and acquisitions of portfolios with higher returns in recent periods. Additionally, collections in Europe were favorably impacted by foreign currency translation by approximately $8.8 million and $6.7 million during the three and six months ended June 30, 2025, respectively, primarily as a result of the weakening of the U.S. dollar against the British Pound by approximately 5.5% and 2.4% for the three and six months ended June 30, 2025 compared to the three and six months ended June 30, 2024, respectively.

Previous wording

Our operating results are impacted by foreign currency translation, which represents the effect of translating operating results where the functional currency is different than our U.S. dollar reporting currency. The strengthening of the U.S. dollar relative to other foreign currencies has an unfavorable impact on our international revenues, and the weakening of the U.S. dollar relative to other foreign currencies has a favorable impact on our international revenues. Our revenue was unfavorably impacted by foreign currency translation by approximately $1.9 million, during the three months ended March 31, 2025, primarily as a result of the strengthening of the U.S. dollar against the British Pound by approximately 0.7% for the three months ended March 31, 2025 as compared to the three months ended March 31, 2024.

Current wording

Our operating results are impacted by foreign currency translation, which represents the effect of translating operating results where the functional currency is different than our U.S. dollar reporting currency. The strengthening of the U.S. dollar relative to other foreign currencies has an unfavorable impact on our international revenues, and the weakening of the U.S. dollar relative to other foreign currencies has a favorable impact on our international revenues. Our revenues were favorably impacted by foreign currency translation by approximately $6.9 million and $5.0 million during the three and six months ended June 30, 2025, respectively, primarily as a result of the weakening of the U.S. dollar against the British Pound by approximately 5.5% and 2.4% for the three and six months ended June 30, 2025 compared to the three and six months ended June 30, 2024, respectively.

Previous wording

The increase in revenue recognized from portfolio basis during the three months ended March 31, 2025, as compared to the three months ended March 31, 2024, was primarily due to a higher portfolio basis (i.e. a higher receivable portfolios balance) in the U.S. driven by a consistent higher volume of purchases in recent periods.

Current wording

The increases in revenue recognized from portfolio basis during the three and six months ended June 30, 2025, as compared to the three and six months ended June 30, 2024, were primarily due to a higher portfolio basis (i.e. a higher receivable portfolios balance) in the U.S. driven by a consistent higher volume of purchases in recent periods.

Previous wording

Recoveries above or below forecast represent over and under-performance in the reporting period, respectively, and are expected to vary from period to period. Collections during the three months ended March 31, 2025, over-performed the forecasted collections by approximately $27.0 million. Collections during the three months ended March 31, 2024, were slightly above the forecasted collections. The over performance in the periods presented represented only a small fraction of total collections in the corresponding periods.

Current wording

Recoveries above or below forecast represent over and under-performance in the reporting period, respectively, and are expected to vary from period to period. Collections during the three and six months ended June 30, 2025, over-performed the forecasted collections by approximately $52.3 million and $79.2 million, respectively, primarily driven by collections over-performance in the U.S. resulting from enhanced collections strategies. Collections during the three and six months ended June 30, 2024, over-performed the forecasted collections by approximately $27.4 million and $28.3 million, respectively.

Previous wording

When reassessing the forecasts of expected lifetime recoveries during the three months ended March 31, 2025, management considered, among other factors, historical and current collection performance, changes in consumer behavior, and the macroeconomic environment. The updated forecast resulted in changes in timing and amount of total estimated remaining collections which in turn, when discounted to present value, resulted in a net negative change in expected future recoveries of approximately $5.5 million during the three months ended March 31, 2025. During the three months ended March 31, 2024, we recorded approximately $13.3 million in net negative change in expected future recoveries.

Current wording

When reassessing the forecasts of expected lifetime recoveries during the three months ended June 30, 2025, management considered, among other factors, historical and current collection performance, changes in consumer behavior, and the macroeconomic environment. The updated forecast resulted in changes in timing and amount of total estimated remaining collections which in turn, when discounted to present value, resulted in a net positive change in expected future recoveries of approximately $3.3 million during the three months ended June 30, 2025. This net positive change, combined with the net negative change recorded in the first quarter, resulted in a net negative change in expected future recoveries of $2.2 million during the six months ended June 30, 2025. During the three and six months ended June 30, 2024, we recorded approximately $21.7 million and $35.0 million in net negative change in expected future recoveries, respectively.

Previous wording

The following tables summarize collections from purchased receivables, portfolio revenue, end of period receivable balance and other related supplemental data, by year of purchase (in thousands, except percentages):

Current wording

The following tables summarize collections from purchased receivables, portfolio revenue, end of period receivable portfolios balance and other related supplemental data, by year of purchase (in thousands, except percentages):

Previous wording

Servicing revenues during the three months ended March 31, 2025, increased as compared to the three months ended March 31, 2024. The increase was primarily attributable to increased demand from BPO clients.

Current wording

The increase in servicing revenues during the three months ended June 30, 2025 as compared to the three months ended June 30, 2024 was primarily attributable to favorable foreign currency translation, which was primarily the result of the weakening of the U.S. dollar against the British Pound. The increase in servicing revenues during the six months ended June 30, 2025 as compared to the six months ended June 30, 2024 was primarily attributable to increased demand from BPO clients.

Previous wording

Other revenues decreased during the three months ended March 31, 2025, as compared to the three months ended March 31, 2024, primarily driven by decrease of gains recognized on the sale of real estate assets.

Current wording

Other revenues decreased during the three and six months ended June 30, 2025, as compared to the three and six months ended June 30, 2024, primarily driven by a decrease in gains recognized on the sale of real estate assets.

Previous wording

Our operating results are impacted by foreign currency translation, which represents the effect of translating operating results where the functional currency is different than our U.S. dollar reporting currency. The strengthening of the U.S. dollar relative to other foreign currencies has a favorable impact on our international operating expenses, and the weakening of the U.S. dollar relative to other foreign currencies has an unfavorable impact on our international operating expenses. Our operating expenses were favorably impacted by foreign currency translation by approximately $1.4 million, during the three months ended March 31, 2025, primarily as a result of the strengthening of the U.S. dollar against the British Pound by approximately 0.7% for the three months ended March 31, 2025 as compared to the three months ended March 31, 2024.

Current wording

Our operating results are impacted by foreign currency translation, which represents the effect of translating operating results where the functional currency is different than our U.S. dollar reporting currency. The strengthening of the U.S. dollar relative to other foreign currencies has a favorable impact on our international operating expenses, and the weakening of the U.S. dollar relative to other foreign currencies has an unfavorable impact on our international operating expenses. Our operating expenses were unfavorably impacted by foreign currency translation by approximately $5.0 million and $3.6 million, during the three and six months ended June 30, 2025, respectively, primarily as a result of the weakening of the U.S. dollar against the British Pound by approximately 5.5% and 2.4% for the three and six months ended June 30, 2025 compared to the three and six months ended June 30, 2024, respectively.

Previous wording

The following table summarizes our cost of legal collections during the periods presented (in thousands, except percentages):

Current wording

The following tables summarize our cost of legal collections during the periods presented (in thousands, except percentages):

Previous wording

The increase of cost of legal collections during the three months ended March 31, 2025, as compared to the three months ended March 31, 2024, was primarily due to increased legal placements in this channel in the U.S.

Current wording

The increases of cost of legal collections during the three and six months ended June 30, 2025, as compared to the three and six months ended June 30, 2024, were primarily due to increased legal placements in this channel in the United States.

Previous wording

•An increase in consulting fees of approximately $1.6 million.

Current wording

•An increase in consulting fees of approximately $1.9 million.

Previous wording

The increase in other operating expenses during the three months ended March 31, 2025, as compared to the three months ended March 31, 2024, was primarily due to an increase in postage and printing expenses of approximately $1.9 million and an increase in collections bank charges and trace agencies fees of approximately $1.9 million.

Current wording

The increase in other operating expenses during the three months ended June 30, 2025, as compared to the three months ended June 30, 2024, was primarily due to the following reasons:

Previous wording

Collection agency commissions are commissions paid to third-party collection agencies. Collections through the collections agencies channel are predominately in Europe and vary from period to period depending on, among other things, the number of accounts placed with an agency versus accounts collected internally. Commission rates vary depending on, among other things, the amount of time that has passed since the charge-off of the accounts placed with an agency, the asset class, and the geographic location of the receivables. Generally, freshly charged-off accounts have a lower commission rate than accounts that have been charged off for a longer period of time, and commission rates for purchased bankruptcy portfolios are lower than the commission rates for charged-off credit card accounts. Collection agency commissions remained relatively consistent during the three months ended March 31, 2025, as compared to the three months ended March 31, 2024.

Current wording

Collection agency commissions are commissions paid to third-party collection agencies. Collections through the collections agencies channel are predominately in Europe and vary from period to period depending on, among other things, the number of accounts placed with an agency versus accounts collected internally. Commission rates vary depending on, among other things, the amount of time that has passed since the charge-off of the accounts placed with an agency, the asset class, and the geographic location of the receivables. Generally, freshly charged-off accounts have a lower commission rate than accounts that have been charged off for a longer period of time, and commission rates for purchased bankruptcy portfolios are lower than the commission rates for charged-off credit card accounts. Collection agency commissions remained relatively consistent during the three and six months ended June 30, 2025, as compared to the three and six months ended June 30, 2024.

Previous wording

Depr eciation and amortization expenses remained relatively consistent during the three months ended March 31, 2025, as compared to the three months ended March 31, 2024.

Current wording

Depr eciation and amortization expenses remained relatively consistent during the three and six months ended June 30, 2025, as compared to the three and six months ended June 30, 2024.

Previous wording

The following table summarizes our interest expense for the periods presented (in thousands, except percentages):

Current wording

The following tables summarize our interest expense for the periods presented (in thousands, except percentages):

Previous wording

•The effect resulting from increased average debt balance of approximately $6.7 million; and

Current wording

•The effect resulting from increased average debt balance of approximately $10.4 million;

Previous wording

•The effect resulting from rising interest rates of approximately $8.6 million; and

Current wording

•The effect resulting from rising interest rates of approximately $1.0 million; and

Previous wording

•The increase was partially offset by a favorable impact of foreign currency translation of approximately $0.5 million driven by the strengthening of the U.S. dollar against the British Pound.

Current wording

•The effect resulting from an unfavorable impact of foreign currency translation of approximately $1.2 million driven by the weakening of the U.S. dollar against the British Pound.

Previous wording

Other income or expense consists primarily of foreign currency exchange gains or losses, interest income, and gains or losses recognized on certain transactions outside of our normal course of business. Other income, net, was$1.6 million and $2.7 million during thethree months ended March 31, 2025 and 2024, respectively. Interest income included in other income, net of other expense, was approximately $1.5 million and $1.4 million during thethree months ended March 31, 2025 and 2024, respectively.

Current wording

Other income or expense consists primarily of foreign currency exchange gains or losses, interest income, and gains or losses recognized on certain transactions outside of our normal course of business. Other income, net, was$1.2 million and $2.9 million during thethree and six months ended June 30, 2025, respectively. Other income, net, was$2.0 million and $4.7 million during thethree and six months ended June 30, 2024, respectively. Interest income included in other income, net of other expense, was approximately $1.4 million and $2.9 million during thethree and six months ended June 30, 2025, respectively, and$1.8 million and$3.1 million for the three and six months ended June 30, 2024, respectively.

Previous wording

For the three months ended March 31, 2025 and 2024, the differences between our effective tax rate and the federal statutory rate were primarily due to state income taxes offset by other foreign adjustments.

Current wording

For the three and six months ended June 30, 2025, the differences between our effective tax rate and the federal statutory rate were primarily due to state income taxes offset by other foreign adjustments. For the three and six months ended June 30, 2024, the differences between our effective tax rate and the federal statutory rate were primarily due to state income taxes.

Previous wording

(1)As of March 31, 2025, ERC for Zero Basis Portfolios include approximately $35.6 million for purchased consumer and bankruptcy receivables in the United States. ERC for Zero Basis Portfolios in Europe and other geographies was immaterial. ERC also includes approximately $24.3 million from non-accrual portfolios, primarily in other geographies.

Current wording

(1)As of June 30, 2025, ERC for Zero Basis Portfolios include approximately $31.5 million for purchased consumer and bankruptcy receivables in the United States. ERC for Zero Basis Portfolios in Europe and other geographies was immaterial. ERC also includes approximately $24.8 million from non-accrual portfolios, primarily in other geographies.

Previous wording

(3)Amount for 2025 consists of nine months data from April 1, 2025 to December 31, 2025.

Current wording

(3)Amount for 2025 consists of six months data from July 1, 2025 to December 31, 2025.

Previous wording

(5)Real estate-owned assets (“REO”) ERC includes approximately $52.9 million and $0.6 million of estimated future cash flows for Europe and Other Geographies, respectively.

Current wording

(5)Real estate-owned assets (“REO”) ERC includes approximately $46.3 million and $0.5 million of estimated future cash flows for Europe and Other Geographies, respectively.

Previous wording

As of March 31, 2025, we had $4.0 billion in receivable portfolios. The estimated future collections applied to the receivable portfolios net balance is as follows(in thousands):

Current wording

As of June 30, 2025, we had $4.2 billion in receivable portfolios. The estimated future collections applied to the receivable portfolios net balance is as follows(in thousands):

Previous wording

(1)Amount for 2025 consists of nine months data from April 1, 2025 to December 31, 2025.

Current wording

(1)Amount for 2025 consists of six months data from July 1, 2025 to December 31, 2025.

Previous wording

Net cash provided by operating activities was $45.3 million and $51.0 million during the three months ended March 31, 2025 and 2024, respectively. Operating cash flows are derived by adjusting net income for non-cash operating items such as depreciation and amortization, changes in recoveries, stock-based compensation charges, deferred income tax, and changes in operating assets and liabilities which reflect timing differences between the receipt and payment of cash associated with transactions and when they are recognized in results of operations. Adjusting for the changes in recoveries resulted in a decrease in operating cash flows by $21.5 million during the three months ended March 31, 2025 and an increase in operating cash flows by $12.4 million during the three months ended March 31, 2024. Refer to “Note 5: Receivable Portfolios, Net” in the notes to our condensed consolidated financial statements for discussion relating to changes in recoveries.

Current wording

Net cash provided by operating activities was $54.8 million and $86.7 million during the six months ended June 30, 2025 and 2024, respectively. Operating cash flows are derived by adjusting net income for non-cash operating items such as depreciation and amortization, changes in recoveries, stock-based compensation charges, deferred income tax, and changes in operating assets and liabilities which reflect timing differences between the receipt and payment of cash associated with transactions and when they are recognized in results of operations. Adjusting for the changes in recoveries resulted in a decrease in operating cash flows by $77.1 million during the six months ended June 30, 2025 and an increase in operating cash flows by $6.7 million during the six months ended June 30, 2024. Refer to “Note 5: Receivable Portfolios, Net” in the notes to our condensed consolidated financial statements for discussion relating to changes in recoveries.

Previous wording

Net cash used in investing activities was $100.3 million and $90.9 million during the three months ended March 31, 2025 and 2024, respectively. Cash provided by or used in investing activities is primarily affected by receivable portfolio purchases offset by collection proceeds applied to the principal of our receivable portfolios. Receivable portfolio purchases, net of put-backs, were $362.7 million and $291.4 million during the three months ended March 31, 2025 and 2024, respectively. Collection proceeds applied to the principal of our receivable portfolios were $259.6 million and $195.0 million during the three months ended March 31, 2025 and 2024, respectively. Refer to Purchases and Collections within “Item 2: Management’s Discussion and Analysis of Financial Condition and Results of Operations” for discussion relating to purchases and collections.

Current wording

Net cash used in investing activities was $169.7 million and $131.9 million during the six months ended June 30, 2025 and 2024, respectively. Cash provided by or used in investing activities is primarily affected by receivable portfolio purchases offset by collection proceeds applied to the principal of our receivable portfolios. Receivable portfolio purchases, net of put-backs, were $725.4 million and $567.0 million during the six months ended June 30, 2025 and 2024, respectively. Collection proceeds applied to receivable portfolios were $553.4 million and $419.8 million during the six months ended June 30, 2025 and 2024, respectively. Refer to Purchases and Collections within “Item 2: Management’s Discussion and Analysis of Financial Condition and Results of Operations” for discussion relating to purchases and collections.

Previous wording

Net cash provided by financing activities was $40.3 million and $55.8 million during the three months ended March 31, 2025 and 2024, respectively. Financing cash flows are generally affected by borrowings under our credit facilities and proceeds from various debt offerings, offset by repayments of amounts outstanding under our credit facilities and repayments of various notes. Borrowings under our credit facilities were $246.4 million and $248.5 million during the three months ended March 31, 2025 and 2024, respectively. Repayments of amounts outstanding under our credit facilities were $185.8 million and $696.4 million during the three months ended March 31, 2025 and 2024, respectively. During the three months ended March 31, 2024, we issued $500.0 million 9.25% senior secured notes that mature in 2029, and used the proceeds from the senior secured notes to repay drawings under our Global Senior Facility.

Current wording

Net cash provided by financing activities was $87.2 million and $139.5 million during the six months ended June 30, 2025 and 2024, respectively. Financing cash flows are generally affected by borrowings under our credit facilities and proceeds from various debt offerings, offset by repayments of amounts outstanding under our credit facilities and repayments of various notes. Borrowings under our credit facilities were $549.6 million and $393.5 million during the six months ended June 30, 2025 and 2024, respectively. Repayments of amounts outstanding under our credit facilities were $418.5 million and $1,234.2 million during the six months ended June 30, 2025 and 2024, respectively. During the six months ended June 30, 2024, we issued two $500.0 million senior secured notes that mature in 2029 and 2030, respectively. We used a portion of the proceeds from the senior secured notes issuance to repay drawings under our Global Senior Facility.

Previous wording

We are in material compliance with all covenants under our financing arrangements. See “Note 7: Borrowings” in the notes to our condensed consolidated financial statements for a further discussion of our debt. Available capacity under our Global Senior Facility, was $378.6 million as of March 31, 2025.

Current wording

We are in material compliance with all covenants under our financing arrangements. See “Note 7: Borrowings” in the notes to our condensed consolidated financial statements for a further discussion of our debt. Available capacity under our Global Senior Facility, was $397.2 million as of June 30, 2025.

Previous wording

Our Board of Directors has approved a $300.0 million share repurchase program. Repurchases under this program are expected to be made from cash on hand and/or a drawing from our Global Senior Facility and may be made from time to time, subject to market conditions and other factors, in the open market, through private transactions, block transactions, or other methods as determined by our management and Board of Directors, and in accordance with market conditions, other corporate considerations, and applicable regulatory requirements. The program does not obligate us to acquire any particular amount of common stock, and it may be modified or suspended at our discretion. During the three months ended March 31, 2025, we repurchased 289,425 shares of our common stock for approximately $10.0 million under the shares repurchase program. We did not make any repurchases under the share repurchase program during the three months ended March 31, 2024. Our practice is to retire the shares repurchased. As of March 31, 2025, authorization for $81.9 million of share repurchases remained under the share repurchase program.

Current wording

Our Board of Directors has approved a $300.0 million share repurchase program. Repurchases under this program are expected to be made from cash on hand and/or a drawing from our Global Senior Facility and may be made from time to time, subject to market conditions and other factors, in the open market, through private transactions, block transactions, or other methods as determined by our management and Board of Directors, and in accordance with market conditions, other corporate considerations, and applicable regulatory requirements. The program does not obligate us to acquire any particular amount of common stock, and it may be modified or suspended at our discretion. During the three and six months ended June 30, 2025, we repurchased 418,499 and 707,924 shares of our common stock for approximately $15.0 million and $25.0 million, respectively, under the shares repurchase program. We did not make any repurchases under the share repurchase program during the three and six months ended June 30, 2024. Our practice is to retire the shares repurchased. As of June 30, 2025, authorization for $66.9 million of share repurchases remained under the share repurchase program.

Previous wording

Our cash and cash equivalents as of March 31, 2025, consisted of $48.2 million held by U.S.-based entities and $138.9 million held by foreign entities. Most of our cash and cash equivalents held by foreign entities is indefinitely reinvested and may be subject to material tax effects if repatriated. However, we believe that our sources of cash and liquidity are sufficient to meet our business needs in the United States and do not expect that we will need to repatriate the funds.

Current wording

Our cash and cash equivalents as of June 30, 2025, consisted of $63.8 million held by U.S.-based entities and $109.1 million held by foreign entities. Most of our cash and cash equivalents held by foreign entities is indefinitely reinvested and may be subject to material tax effects if repatriated. However, we believe that our sources of cash and liquidity are sufficient to meet our business needs in the United States and do not expect that we will need to repatriate the funds.

Previous wording

Included in cash and cash equivalents is cash that was collected on behalf of, and remains payable to, third-party clients. The balance of cash held for clients was $22.2 million as of March 31, 2025.

Current wording

Included in cash and cash equivalents is cash that was collected on behalf of, and remains payable to, third-party clients. The balance of cash held for clients was $23.4 million as of June 30, 2025.