ENCORE CAPITAL GROUP INC

Previous wording

With lending and charge-off rates remaining near recent peak levels, U.S. portfolio supply continues to be robust. 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 steady lending and delinquency rates at elevated levels will result in stable and strong market supply.

Current wording

With lending and charge-off rates remaining near recent peak levels, U.S. portfolio supply continues to be robust. 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. With market supply remaining elevated, pricing in the third quarter remained at favorable levels, although portfolio pricing was slightly higher compared to prior quarters. Issuers continue to sell their volume in mostly forward flow arrangements that are often committed early in the calendar year. We believe steady lending and delinquency rates at elevated levels will result in stable and strong market supply.

Previous wording

In the United States, capital deployments increased during the three and six months ended June 30, 2026, 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. Our record purchases in the U.S. during the second quarter included opportunistic spot market purchases.

Current wording

In the United States, capital deployments increased during the three and nine months ended September 30, 2026, 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. The increases in portfolio purchases in the U.S. were driven by robust portfolio supply and pricing at favorable levels.

Previous wording

In Europe, capital deployments increased during the three and six months ended June 30, 2026, as compared to the corresponding periods in the prior year. Capital deployment can fluctuate based on the timing of the forward flow contracts and spot purchases. Pricing continues to remain competitive in our European footprint, constraining the amount of capital we choose to deploy in Europe.

Current wording

In Europe, capital deployments decreased during the three months ended September 30, 2026, and increased during the nine months ended September 30, 2026, as compared to the corresponding periods in the prior year. Capital deployment can fluctuate based on the timing of the forward flow contracts and spot purchases. Pricing continues to remain competitive in our European footprint, constraining the amount of capital we choose to deploy in Europe.

Previous wording

We utilize three channels for the collection of our receivable portfolios: call center and digital collections; legal collections; and collection agencies. The call center and digital collections channel consists of collections that result from our call centers, direct mail program and online collections. The legal collections channel consists of collections that result from our internal legal channel or from our network of retained law firms. The collection agencies channel consists of collections from third-party collections agencies to whom we pay a fee or commission. We utilize this channel to supplement capacity in our internal call centers, to service accounts in regions where we do not have collections operations or for accounts purchased where we maintain the collection agency servicing relationship.

Current wording

We utilize three channels for the collection of our receivable portfolios: call center and digital collections; legal collections; and collection agencies. The call center and digital collections channel consists of collections that result from our call centers, direct mail program and online collections. The legal collections channel consists of collections that result from our internal legal channel or from our network of retained law firms. The collection agency channel consists of collections from third-party collections agencies to whom we pay a fee or commission. We utilize this channel to supplement capacity in our internal call centers, to service accounts in regions where we do not have collections operations or for accounts purchased where we maintain the collection agency servicing relationship.

Previous wording

Collections from purchased receivables increased by $81.9 million, or 12.5%, to $736.9 million during the three months ended June 30, 2026, as compared to $655.0 million during the three months ended June 30, 2025. Gross collections from purchased receivables increased by $195.5 million, or 15.5%, to $1,455.3 million during the six months ended June 30, 2026, ascompared to $1,259.8 million during the six months ended June 30, 2025. 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. Collections in Europe were favorably impacted by foreign currency translation by approximately $1.7 million and $13.9 million, during the three and six months ended June 30, 2026, respectively, primarily as a result of the weakening of the U.S. dollar against the British Pound by approximately 0.5% and 3.6% for the three and six months ended June 30, 2026, as compared to the three and six months ended June 30, 2025, respectively.

Current wording

Collections from purchased receivables increased by $90.8 million, or 13.7%, to $753.8 million during the three months ended September 30, 2026, as compared to $663.0 million during the three months ended September 30, 2025. Collections from purchased receivables increased by $286.3 million, or 14.9%, to $2,209.1 million during the nine months ended September 30, 2026, as compared to $1,922.8 million during the nine months ended September 30, 2025. The increases in collections in the United States were primarily a result of consistent increases in capital deployments and enhanced collection strategies 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. Collections in Europe had a slight unfavorable impact from foreign currency translation during the three months ended September 30, 2026, compared to the same period in the prior year. Collections in Europe were favorably impacted by foreign currency translation by approximately $12.8 million during the nine months ended September 30, 2026, primarily due to the weakening of the U.S. dollar against the British Pound by approximately 2.3% during the period, compared to the same period in the prior year.

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 favorably impacted by foreign currency translation by approximately $1.2 million and $10.4 million during the three and six months ended June 30, 2026, respectively, primarily as a result of the weakening of the U.S. dollar against the British Pound by approximately 0.5% and 3.6% for the three and six months ended June 30, 2026, as compared to the three and six months ended June 30, 2025, respectively.

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 revenue had a slight unfavorable impact from foreign currency translation during the three months ended September 30, 2026, compared to the same period in the prior year. Our revenue was favorably impacted by foreign currency translation by approximately $9.7 million during the nine months ended September 30, 2026, primarily due to the weakening of the U.S. dollar against the British Pound by approximately 2.3% during the period, compared to the same period in the prior year.

Previous wording

The increases in revenue recognized from portfolio basis during the three and six months ended June 30, 2026, as compared to the three and six months ended June 30, 2025, 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.

Current wording

The increases in revenue recognized from portfolio basis during the three and nine months ended September 30, 2026, as compared to the three and nine months ended September 30, 2025, 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 and six months ended June 30, 2026 over-performed the forecasted collections by $53.1 million and $99.2 million, respectively, primarily as a result of collections over-performance in the U.S. The collections over-performance in the U.S. has been driven by the deployment of new technologies, enhanced digital capabilities and continued operational innovation, which has enabled us to reach more consumers, leading to more payments as well as a larger payer book. These initiatives have had a greater impact on the early stages of a portfolio’s lifecycle, leading to over-performance for our recent vintages. Collections during the three and six months ended June 30, 2025 over-performed the forecasted collections by $52.3 million and $79.2 million, respectively.

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 nine months ended September 30, 2026 over-performed the forecasted collections by $51.8 million and $151.0 million, respectively, primarily as a result of collections over-performance in the U.S. The collections over-performance in the U.S. has been driven by the deployment of new technologies, enhanced digital capabilities and continued operational innovation, which has enabled us to reach more consumers, leading to more payments as well as a larger payer book. These initiatives have had a greater impact on the early stages of a portfolio’s lifecycle, leading to over-performance for our recent vintages. Collections during the three and nine months ended September 30, 2025 over-performed the forecasted collections by $61.5 million and $140.7 million, respectively.

Previous wording

We reassess the forecasts of expected lifetime recoveries each quarter by considering, among other factors, historical and current collection performance, changes in consumer behaviors, and the macroeconomic environment. The significant recoveries above forecast during the three and six months ended June 30, 2026 were carefully evaluated. We concluded that the recoveries above forecast were primarily current period collections over-performance and did not represent any material shift in timing of the collections. Additionally, the sustained over-performance in recent quarters led to increases in forecasted future recoveries for recently acquired vintages. As a result, we recorded a net positive change of $18.0 million and $34.7 million in expected future recoveries during the three and six months ended June 30, 2026, respectively. During the three and six months ended June 30, 2025, we recorded a net positive change of $3.3 million and a net negative change of $2.2 million in expected future recoveries, respectively.

Current wording

We reassess the forecasts of expected lifetime recoveries each quarter by considering, among other factors, historical and current collection performance, changes in consumer behaviors, and the macroeconomic environment. The significant recoveries above forecast in recent periods were carefully evaluated in developing the expected future recoveries. Management concluded that the recoveries above forecast did not represent any material shift in timing of the collections. Rather, sustained over-performance in recent periods resulted in increased collections forecasts for recent vintages, primarily the 2023, 2024, and 2025 vintages. As a result, we recorded a net positive change of $59.2 million and $93.9 million in expected future recoveries during the three and nine months ended September 30, 2026, respectively. We recorded a net positive change of $2.2 million, and an immaterial net change in expected future recoveries during the three and nine months ended September 30, 2025, respectively.

Previous wording

Servicing revenue decreased during the three and six months ended June 30, 2026, as compared to the three and six months ended June 30, 2025, primarily driven by decreases in BPO revenue and collection service fees. Other revenues decreased during the three and six months ended June 30, 2026, as compared to the three and six months ended June 30, 2025, primarily driven by decreases in gains recognized on the sale of real estate assets.

Current wording

Servicing revenue decreased during the three and nine months ended September 30, 2026, as compared to the three and nine months ended September 30, 2025, primarily driven by decreases in BPO revenue and collection service fees. Other revenues decreased during the three and nine months ended September 30, 2026, as compared to the three and nine months ended September 30, 2025, primarily driven by decreases 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 unfavorably impacted by foreign currency translation by approximately $0.9 million and $7.4 million, during the three and six months ended June 30, 2026, respectively, primarily as a result of the weakening of the U.S. dollar against the British Pound by approximately 0.5% and 3.6% for the three and six months ended June 30, 2026, as compared to the three and six months ended June 30, 2025, respectively.

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 had a slight favorable impact from foreign currency translation during the three months ended September 30, 2026, compared to the same period in the prior year. Our operating expenses were unfavorably impacted by foreign currency translation by approximately $7.0 million during the nine months ended September 30, 2026, primarily due to the weakening of the U.S. dollar against the British Pound by approximately 2.3% during the period, compared to the same period in the prior year.

Previous wording

The increase in salaries and employee benefits during the three months ended June 30, 2026, as compared to the three months ended June 30, 2025, was primarily due to the following reasons:

Current wording

The increase in salaries and employee benefits during the nine months ended September 30, 2026, as compared to the nine months ended September 30, 2025, was primarily due to the following reasons:

Previous wording

•An increase in salaries and bonuses of $6.0 million, primarily attributable to higher performance-based bonuses awarded to employees as a result of our strong overall performance for the year ended December 31, 2025;

Current wording

•An increase in salaries and bonuses of $4.7 million, primarily attributable to higher performance-based bonuses awarded to employees as a result of our strong overall performance for the year ended December 31, 2025;

Previous wording

•An increase in employee benefits of $1.3 million, primarily attributable to higher health insurance costs; and

Current wording

•An increase in employee benefits of $2.8 million, primarily attributable to higher health insurance costs; and

Previous wording

•An increase in stock-based compensation expense of $0.8 million attributable to increased stock price in the recent periods and higher vesting of performance-based awards.

Current wording

•An increase in stock-based compensation expense of $2.3 million attributable to increased stock price in the recent periods and higher vesting of performance-based awards.

Previous wording

The increases of cost of legal collections during the three and six months ended June 30, 2026, as compared to the three and six months ended June 30, 2025, were primarily due to increased legal placements in this channel in the United States.

Current wording

The increases in cost of legal collections during the three and nine months ended September 30, 2026, as compared to the three and nine months ended September 30, 2025, were primarily due to increased legal placements in this channel in the United States.

Previous wording

The decrease in general and administrative expense during the three months ended June 30, 2026, as compared to the three months ended June 30, 2025, was primarily attributable to a decrease in consulting fees of $4.4 million. The decrease was partially offset by an increase in information technology expenses of $1.8 million.

Current wording

The increase in general and administrative expense during the three months ended September 30, 2026, as compared to the three months ended September 30, 2025, was primarily due to an increase in legal cost of $3.3 million and an increase in information technology expenses of $1.7 million.

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 decreased during the three and six months ended June 30, 2026, as compared to the same periods in the prior year, primarily due to fewer accounts placed with external agencies in the United States.

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 decreased during the three and nine months ended September 30, 2026, as compared to the same periods in the prior year, primarily due to fewer accounts placed with external agencies in the United States.

Previous wording

The slight increase in stated interest expense during the three months ended June 30, 2026, as compared to the three months ended June 30, 2025, was primarily due to the following reasons:

Current wording

The slight decrease in stated interest expense during the three months ended September 30, 2026, as compared to the three months ended September 30, 2025, was primarily due to the following reasons:

Previous wording

•The increase was partially offset by the effect resulting from a decrease in interest rates of approximately $6.0 million.

Current wording

•The effect resulting from a decrease in interest rates of approximately $7.0 million.

Previous wording

•The effect resulting from increased average debt balance of approximately $8.6 million; and

Current wording

•The decrease was partially offset by the effect resulting from an increased average debt balance of approximately $6.7 million.

Previous wording

The increase in stated interest expense during the six months ended June 30, 2026, as compared to the six months ended June 30, 2025, was primarily due to the following reasons:

Current wording

The increase in stated interest expense during the nine months ended September 30, 2026, as compared to the nine months ended September 30, 2025, was primarily due to the following reasons:

Previous wording

•The effect resulting from increased average debt balance of approximately $4.6 million; and

Current wording

•The effect resulting from increased average debt balance of approximately $15.3 million; and

Previous wording

•The effect resulting from an unfavorable impact of foreign currency translation of approximately $1.9 million driven by the weakening of the U.S. dollar against the British Pound.

Current wording

•The effect resulting from an unfavorable impact of foreign currency translation of approximately $1.8 million driven by the weakening of the U.S. dollar against the British Pound.

Previous wording

•The increase was partially offset by the effect resulting from a decrease in interest rates of approximately $3.8 million.

Current wording

•The increase was partially offset by the effect resulting from a decrease in interest rates of approximately $13.0 million.

Previous wording

Loss on extinguishment of debt associated with the early redemptions of the Encore 2028 Floating Rate Notes and the Encore 2029 Notes in May 2026 was $30.5 million for the three and six months ended June 30, 2026. There was no loss on extinguishment of debt during the corresponding periods in 2025. Refer to “Note 7: Borrowings” in the notes to our condensed consolidated financial statements for details of our financing activities.

Current wording

Loss on extinguishment of debt associated with the early redemptions of the Encore 2028 Floating Rate Notes and the Encore 2029 Notes in May 2026 was $30.5 million for the nine months ended September 30, 2026. There was no loss on extinguishment of debt during the three months ended September 30, 2026, or during thethree and nine months ended September 30, 2025. Refer to “Note 7: Borrowings” in the notes to our condensed consolidated financial statements for details of our financing activities.

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$0.4 million and $1.2 million during thethree and six months ended June 30, 2026, respectively. Other income, net, was$1.2 million and $2.9 million during thethree and six months ended June 30, 2025, respectively. Interest income included in other income, net of other expense, was $1.1 million and $2.2 million during thethree and six months ended June 30, 2026, respectively. Interest income included in other income, net of other expense, was $1.4 million and $2.9 million during thethree and six months ended June 30, 2025, 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 $2.5 million and $3.7 million during the three and nine months ended September 30, 2026, respectively. Other income, net, was $0.9 million and $3.8 million during the three and nine months ended September 30, 2025, respectively. Interest income included in other income, net of other expense, was $1.2 million and $3.4 million during the three and nine months ended September 30, 2026, respectively. Interest income included in other income, net of other expense, was $1.0 million and $3.9 million during the three and nine months ended September 30, 2025, respectively.

Previous wording

For thethree and six months ended June 30, 2026 and 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.

Current wording

For thethree and nine months ended September 30, 2026 and 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.

Previous wording

(1)As of June 30, 2026, ERC for Zero Basis Portfolios includes $20.1 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 $13.9 million from non-accrual portfolios, primarily in other geographies.

Current wording

(1)As of September 30, 2026, ERC for Zero Basis Portfolios includes $17.7 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 $11.8 million from non-accrual portfolios, primarily in other geographies.

Previous wording

(2)Represents the expected remaining cash collections over a 180-month period. As of June 30, 2026, ERC for 84-months was $8,733.1 million.

Current wording

(2)Represents the expected remaining cash collections over a 180-month period. As of September 30, 2026, ERC for 84-months was $8,971.3 million.

Previous wording

(3)Amount for 2026 consists of six months data from July 1, 2026 to December 31, 2026.

Current wording

(3)Amount for 2026 consists of three months data from October 1, 2026 to December 31, 2026.

Previous wording

(5)Real estate-owned assets (“REO”) ERC includes $14.0 million of estimated future cash flows for Europe.

Current wording

(5)Real estate-owned assets (“REO”) ERC includes $10.6 million of estimated future cash flows for Europe.

Previous wording

As of June 30, 2026, we had $4.6 billion in receivable portfolios. The estimated future collections applied to the receivable portfolios net balance is as follows(in thousands):

Current wording

As of September 30, 2026, we had $4.8 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 2026 consists of six months data from July 1, 2026 to December 31, 2026.

Current wording

(1)Amount for 2026 consists of three months data from October 1, 2026 to December 31, 2026.

Previous wording

Net cash provided by operating activities was $52.9 million and $54.8 million during the six months ended June 30, 2026 and 2025, 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 $133.9 million and $77.1 million during the six months ended June 30, 2026 and 2025, respectively. 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 $159.6 million and $136.4 million during the nine months ended September 30, 2026 and 2025, 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 $244.9 million and $140.7 million during the nine months ended September 30, 2026 and 2025, respectively. 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 $130.7 million and $169.7 million during the six months ended June 30, 2026 and 2025, 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 $800.3 million and $725.4 million during the six months ended June 30, 2026 and 2025, respectively. Collection proceeds applied to the principal of our receivable portfolios were $665.0 million and $553.4 million during the six months ended June 30, 2026 and 2025, 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 $175.6 million and $215.5 million during the nine months ended September 30, 2026 and 2025, 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 $1,187.1 million and $1,066.2 million during the nine months ended September 30, 2026 and 2025, respectively. Collection proceeds applied to the principal of our receivable portfolios were $1,004.4 million and $846.3 million during the nine months ended September 30, 2026 and 2025, 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 $106.8 million and $87.2 million during the six months ended June 30, 2026 and 2025, 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 $791.1 million and $549.6 million during the six months ended June 30, 2026 and 2025, respectively. Repayments of amounts outstanding under our credit facilities were $723.8 million and $418.5 million during the six months ended June 30, 2026 and 2025, respectively. During the six months ended June 30, 2026, we issued $750.0 million in senior secured notes that mature in 2032. We used a portion of the proceeds from this offering to redeem the $500.0 million principal outstanding under the Encore 2029 Notes in full. During the six months ended June 30, 2026, we issued €325.0 million (approximately $371.2 million based on an exchange rate of $1.00 to €0.88, the exchange rate as of June 30, 2026) in floating rate senior secured notes due 2033. We used the proceeds from this offering, together with drawings under our Global Senior Facility, to redeem the €415.0 million (approximately $474.0 million based on an exchange rate of $1.00 to €0.88, the exchange rate as of June 30, 2026) principal outstanding under the Encore 2028 Floating Rate Notes in full.

Current wording

Net cash provided by financing activities was $20.6 million and $50.6 million during the nine months ended September 30, 2026 and 2025, 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 $1,297.8 million and $812.8 million during the nine months ended September 30, 2026 and 2025, respectively. Repayments of amounts outstanding under our credit facilities were $946.2 million and $699.5 million during the nine months ended September 30, 2026 and 2025, respectively. During the nine months ended September 30, 2026, we issued $750.0 million in senior secured notes that mature in 2032. We used a portion of the proceeds from this offering to redeem the $500.0 million principal outstanding under the Encore 2029 Notes in full. During the nine months ended September 30, 2026, we issued €325.0 million (approximately $368.3 million based on an exchange rate of $1.00 to €0.88, the exchange rate as of September 30, 2026) in floating rate senior secured notes due 2033. We used the proceeds from this offering, together with drawings under our Global Senior Facility, to redeem the €415.0 million (approximately $470.2 million based on an exchange rate of $1.00 to €0.88, the exchange rate as of September 30, 2026) principal outstanding under the Encore 2028 Floating Rate Notes in full. During the nine months ended September 30, 2026, we paid $367.9 million to settle the 2029 Convertible Notes using 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 $793.4 million as of June 30, 2026.

Current wording

We are in compliance in all material respects 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 $510.2 million as of September 30, 2026.

Previous wording

In May 2021, our Board of Directors authorized a $300.0 million share repurchase program. In November 2025, our Board of Directors authorized an increase of an additional $300.0 million under the 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, 2026, we repurchased 330,121 and 675,669 shares of our common stock for $26.7 million and $46.7 million, respectively, under the share repurchase program. During the three and six months ended June 30, 2025, we repurchased 418,499 and 707,924 shares of our common stock for $15.0 million and $25.0 million, respectively, under the share repurchase program. As of June 30, 2026, we had remaining authority to purchase $255.7 million of our common stock. Our practice is to retire the shares repurchased.

Current wording

In May 2021, our Board of Directors authorized a $300.0 million share repurchase program. In November 2025, our Board of Directors authorized an increase of an additional $300.0 million under the 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 nine months ended September 30, 2026, we repurchased 269,018 and 944,687 shares of our common stock for $26.7 million and $73.4 million, respectively, under the share repurchase program. During the three and nine months ended September 30, 2025, we repurchased 243,174 and 951,098 shares of our common stock for $10.0 million and $35.0 million, respectively, under the share repurchase program. As of September 30, 2026, we had remaining authority to purchase $229.0 million of our common stock. Our practice is to retire the shares repurchased.

Previous wording

Our cash and cash equivalents as of June 30, 2026, consisted of $58.4 million held by U.S.-based entities and $124.5 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 September 30, 2026, consisted of $54.8 million held by U.S.-based entities and $103.6 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.