The market was looking for roughly $0.68 EPS and $173.5 million of revenue. Published estimates varied by provider, with quarterly EPS expectations around $0.68-$0.79; the reported $0.67 GAAP EPS was effectively in line, while revenue modestly exceeded the available ~$173.5 million reference.
| Metric | Q2 2026 | Q2 2025 | Change / comparison |
|---|---|---|---|
| Collections | $300.9M | $255.7M | +17.7% (Collections) |
| Deployments | $152.2M | $125.3M | +21.5% (Deployments) |
| Estimated remaining collections | $3.364B | $2.853B | +17.9% (Estimated Remaining Collections) |
| Revenue | $177.5M | $152.7M | +16.2%; above published ~$173.5M consensus (Income Statement) |
| GAAP net income | $41.3M | $47.7M | -13.4% (Income Statement) |
| GAAP EPS | $0.67 | $0.67* | In line with published ~$0.68 consensus (Income Statement) |
| Adjusted net income | $47.3M | $47.4M | -0.2% (Adjusted Net Income and Adjusted EPS) |
| Adjusted EPS | $0.77 | — | Near the upper end of published estimates (Adjusted Net Income and Adjusted EPS) |
| Cash efficiency ratio | 72.2% | 75.9% | Down 370 basis points (Cash Efficiency Ratio) |
*The prior-year GAAP EPS comparison is not meaningful because the share count changed sharply after the company’s 2025 public listing.
The operating engine delivered the growth investors expected. Collections rose 18%, deployments 21%, and estimated remaining collections 18%, while the Bluestem portfolio contributed $41.0 million of U.S. collections and $218.2 million of ERC. That supports a larger future revenue base, but much of the Bluestem contribution was already known because the purchase closed in the fourth quarter of 2025 (Collections; Estimated Remaining Collections).
The key disappointment was cost conversion, not demand. Operating expenses increased 45.6% to $95.4 million against 16.2% revenue growth. Servicing costs rose $21.3 million, including $9.3 million of additional court costs, while stock-based compensation added $8.3 million (Operating Expenses). The result was a 370-basis-point decline in cash efficiency and a 13.4% drop in GAAP net income despite record revenue (Cash Efficiency Ratio; Income Statement).
Adjusted earnings were essentially flat, which makes this an in-line result rather than a clean beat. Adjusted net income was $47.3 million versus $47.4 million a year earlier, and adjusted pre-tax income was $59.3 million versus $61.6 million. The company’s favorable volume trends were largely offset by servicing inflation, legal-channel costs, interest expense and the absence of prior-year IPO-related adjustments (Adjusted Net Income and Adjusted EPS; Adjusted Pre-tax Income).
Balance-sheet actions are supportive but mostly confirmation. Leverage improved to 1.71x from 1.76x, the revolving facility was upsized to $1.15 billion, and $300 million was deposited for the scheduled August 17, 2026 repayment of the 2026 notes. Those actions reduce near-term refinancing uncertainty, but the repayment had already been announced as expected rather than representing a new strategic surprise (Leverage Ratio, Liquidity and Capital Resources).
Read the original 8-K on SEC EDGAR ↗