Q1 net income +671% to $28.2M on lower tax drag; operating income +38.5%, collections +11%

Filed May 8, 2026 · Period ending March 31, 2026 · Compared to 10-Q May 9, 2025 · ~2 min read

Key Changes

• high

  Net income rose 671% to $28.2M (vs $3.7M prior year), far outpacing the 38.5% operating-income gain. The divergence came from a $4.1M reduction in below-the-line drags (primarily lower income tax expense), not operational improvement—net income remained below operating income.

  MD&A: Net Income & Below-the-Line Items verify on EDGAR →
• high

  Cash collections climbed 11% to $551.9M, exceeding expectations, driven by $27.5M increase in U.S. legal-channel activity and $27.0M gain in Europe across multiple markets. Collections overperformance reversed prior-year underperformance on 2019-2023 Core pools.

  MD&A: Cash Collections & U.S. Operations verify on EDGAR →
• medium

  Portfolio purchases fell 24% to $220.9M as management maintained purchasing discipline focused on net returns. U.S. purchases down 26%, Europe down 19%, reflecting absence of large spot deals and tighter underwriting despite elevated supply.

  MD&A: Portfolio Purchases verify on EDGAR →