Encore Capital Group (NASDAQ: ECPG) is experiencing a significant pre-market surge of 14.62% following the release of its impressive third-quarter 2025 financial results and subsequent analyst upgrades. The debt recovery solutions provider has substantially outperformed market expectations, demonstrating robust growth across its key markets.

Encore Capital reported earnings per share of $3.17 for Q3, marking a staggering 152% increase from $1.26 in the same period last year and handily beating the analyst consensus estimate of $1.83. The company's quarterly revenue also impressed, coming in at $460.353 million, up 25.41% year-over-year and surpassing analyst estimates by 12.09%. This strong performance was driven by exceptional results in both its U.S. and European markets, with the U.S. MCM business seeing a 13% increase in portfolio purchases and a record 25% surge in collections to $502 million.

In light of these positive outcomes, Encore Capital raised its full-year 2025 collections guidance to approximately $2.55 billion and announced a $300 million share repurchase program reauthorization. The market's enthusiasm has been further bolstered by analyst upgrades, with Truist Securities raising its target price to $59 from $57, and Janney Montgomery Scott increasing its price target to $62 from $56 while maintaining a Buy rating. These factors combined have contributed to the stock's significant pre-market rally, reflecting growing investor confidence in Encore Capital's business model and future prospects.