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Third Quarter 2026 Investor Presentation Encore Capital Group, Inc. November 4, 2026
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Encore Capital Group, Inc. 2 Legal Disclaimers The statements in this presentation that are not historical facts, including, most importantly, those statements preceded by, or that include, the words “will,” “may,” “believe,” “projects,” “expects,” “anticipates” or the negation thereof, or similar expressions, constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 (the “Reform Act”). These statements may include, but are not limited to, statements regarding our future operating results (including portfolio purchase volumes, collections, earnings per share, cash generation and yields), performance, business plans or prospects, as well as statements regarding supply, portfolio pricing, returns, run rates, tax rates, the potential recognition and impact of tax benefits, expected future recoveries, interest expense, ability to access capital markets, liquidity, the consumer credit cycle, consumer behavior, interest rates and other macroeconomic factors. For all “forward-looking statements,” the Company claims the protection of the safe harbor for forward- looking statements contained in the Reform Act. Such forward-looking statements involve risks, uncertainties and other factors which may cause actual results, performance or achievements of the Company and its subsidiaries to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. These risks, uncertainties and other factors are discussed in the reports filed by the Company with the Securities and Exchange Commission, including its most recent report on Form 10-K, as it may be amended from time to time. The Company disclaims any intent or obligation to update these forward-looking statements. Totals in this presentation may reflect slight differences due to rounding.
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Encore Capital Group, Inc. 3 Q3 2026 Financial Highlights Portfolio Purchases $390M up 13% Collections $754M up 14% Leverage2 2.3x 0.2x lower Net Income $124M up 66% EPS $5.57 up 76% Average Receivable Portfolios1 $4.69B up 11% 1) Represents the average of receivable portfolios for the quarter (the sum of receivable portfolios at the beginning and end of the quarter divided by 2). 2) Leverage (or leverage ratio) utilizes non-GAAP metrics and is defined as Net Debt ÷ (LTM Adjusted EBITDA + LTM collections applied to principal balance). See appendix for calculation and a reconciliation to GAAP. Note: All comparisons are between Q3 2026 and Q3 2025
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Encore Capital Group, Inc. 4 Our Strategy and Market Presence Market Focus Competitive Advantage Balance Sheet Strength Our Strategy Market leader in the United States 25+ years in operation One of the largest players in the UK (20+ years in operation) Building strength in select European markets (France and Spain) Our Market Presence
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Encore Capital Group, Inc. 5 Encore’s competitive advantage is driven by our value engine Low-cost funding and balance sheet strength Long-term financial strength enabled by robust balance sheet and credit profile Maximizing net collections to realize strong yields Operational excellence, advanced analytics, and our consumer-centric approach drive industry-leading returns Collect efficiently Fund competitively Buy well Purchasing portfolios at attractive returns Disciplined portfolio purchasing underpinned by superior data and analytics capabilities Virtuous cycle of value creation
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Encore Capital Group, Inc. Portfolio Purchases (in $M) 6 We continue to allocate the majority of our capital to U.S. opportunities 261 279 316 372 310 85 48 47 72 80346 327 363 444 390 Q3 2025 Q4 2025 Q1 2026 Q2 2026 Q3 2026 United States Europe 20% 80%
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Encore Capital Group, Inc. 502 503 556 572 589 160 167 161 164 164663 670 718 737 754 Q3 2025 Q4 2025 Q1 2026 Q2 2026 Q3 2026 United States Europe Other Collections by Geography (in $M) 7 Collections increased by 14% to a quarterly record $754 million +14% Note: Global, U.S. and Europe collections for Q1 through Q3 2026 were 109%, 111% and 104% (also 109%, 111% and 104% in constant currency), respectively, of the Dec 31, 2025 portfolio ERC forecasts for portfolios purchased prior to Dec 31, 2025.
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Encore Capital Group, Inc. 0 400 800 1200 1600 2000 Q3 2025 Q4 2025 Q1 2026 Q2 2026 Q3 2026 TTM adjusted EBITDA TTM collections applied to principal balance Encore TTM Cash Generation1 (in $M) 8 Cash generation increased by 18% 1) Trailing Twelve Month (“TTM”) cash generation defined as TTM adjusted EBITDA + TTM collections applied to principal balance. 2) See appendix for reconciliation of Adjusted EBITDA to GAAP net income. 2 +18%
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Encore Capital Group, Inc. 9 Robust U.S. portfolio supply driven by high charge off rate combined with continued strong lending Outstanding U.S. Revolving Credit and U.S. Credit Card Charge Off Rate Source: U.S. Federal Reserve, seasonally adjusted 0% 1% 2% 3% 4% 5% 6% 0 200 400 600 800 1000 1200 1400 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 U.S. revolving credit U.S. credit card charge off rate $ Billions $1.35T Aug 2026 3.82% Q2 2026
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Encore Capital Group, Inc. 10 U.S. consumer credit card delinquency rates remain at high levels Source: TransUnion 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% 4.0% 4.5% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 30+ Days 60+ Days 90+ Days U.S. Bankcard Balance Delinquency Rates 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 % of Balances Past Due
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Encore Capital Group, Inc. 11 MCM continues to deliver very strong results 502 503 556 572 589 Q3 2025 Q4 2025 Q1 2026 Q2 2026 Q3 2026 MCM (U.S.) Portfolio supply in the U.S. remains robust MCM portfolio purchases of $310M in Q3 2026 Record MCM collections of $589M in Q3 2026 increased by 17% compared to Q3 2025 Strong, improving collections performance driven by: Deployment of new technologies Enhanced digital capabilities Continued operational innovation Growing and resilient payer book Consumer payment behavior remains stable MCM Collections (in $M) +17%
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Encore Capital Group, Inc. 12 Cabot delivered a solid Q3 Cabot portfolio purchases were $80M in Q3 2026 U.K. market remains stable as consumer lending growth continues; competition remains robust Cabot collections of $164M in Q3 2026 increased by 2% compared to Q3 2025 Cabot’s focus on costs and operational improvement continues Cabot (Europe) Cabot Collections (in $M) 160 167 161 164 164 Q3 2025 Q4 2025 Q1 2026 Q2 2026 Q3 2026 +2%
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Encore Capital Group, Inc. 13 Detailed Financial Discussion
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Encore Capital Group, Inc. Summary earnings statement Variance Key financial measures Variance $ in millions, except EPS Q3 26 Q3 25 $ % $ in millions Q3 26 Q3 25 $ % Portfolio revenue 414.4 370.1 44.3 12.0% Collections 753.8 663.0 90.8 13.7% Changes in recoveries 111.0 63.6 47.4 74.5% Portfolio purchases 389.7 346.1 43.6 12.6% Debt purchasing revenues 525.5 433.8 91.7 21.1% Average receivable portfolios 4,686.6 4,227.4 459.2 10.9% Servicing & other revenues 19.1 26.6 (7.5) (28.2)% ERC 10,451.7 9,489.8 961.9 10.1% Total revenues 544.5 460.4 84.2 18.3% Cash efficiency margin 59.6% 58.4% 1.2% NM Operating expenses 313.9 287.2 26.8 9.3% Leverage 2.3x 2.5x (0.2x) NM Income from operations 230.6 173.2 57.4 33.2% Annualized yields 230.60 0.00 Variance Interest expense & other income (69.8) (73.3) 3.5 (4.8)% Collections yield 64.3% 62.7% 1.6% NM Income before income taxes 160.8 99.9 60.9 61.0% Provision for income taxes (36.8) (25.2) (11.6) 45.9% Portfolio yield 35.4% 35.0% 0.4% NM Net income 124.0 74.7 49.4 66.1% Impact of changes in recoveries 9.5% 6.0% 3.5% NM Debt purchasing yield 44.9% 41.0% 3.9% NM EPS $5.57 $3.17 $2.40 75.7% 14 Financial Results 1) Represents the average of receivable portfolios for the quarter (the sum of receivable portfolios at the beginning and end of the quarter divided by 2) 2) Quarterly cash efficiency margin utilizes non-GAAP metrics. See appendix for calculation and a reconciliation to GAAP. 3) Collections yield = (collections / average receivable portfolios) x 4 4) Portfolio yield = (portfolio revenue / average receivable portfolios) x 4 5) Impact of changes in recoveries = (changes in recoveries / average receivable portfolios) x 4 6) Debt purchasing yield = portfolio yield + impact of changes in recoveries 1 2 3 4 5 6
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Encore Capital Group, Inc. 15 We continue to proactively manage our balance sheet and have no significant maturities until 2028 Debt Maturity Profile at September 30, 2026 (in $M)1 500 500 750 332 368 45 929 450 338 - - 377 1,379 500 838 750 368 0 200000000 400000000 600000000 800000000 1E+09 1.2E+09 1.4E+09 1.6E+09 2026 2027 2028 2029 2030 2031 2032 2033 As of September 30, 2026, available liquidity was $658M (available RCF of $510M and cash2 of $148M). In August, we extended the maturity date of the U.S. Facility by one year to October 2029. In September, we settled $230M convertible notes due 2029 with cash. We also terminated the associated capped call transactions. Bonds 58% Revolving Credit Facility 23% U.S. Facility 11% Cabot Securitisation Facility 8% 1) Does not include other borrowings of approximately $55M. 2) Excludes client cash that was collected on behalf of, and remains payable to, third party clients.
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Encore Capital Group, Inc. 16 Our Objectives and Priorities Preserve financial flexibility Target leverage1 between 2.0x and 3.0x Maintain a strong BB debt rating Portfolio purchases at attractive returns Share repurchases Strategic M&A Deliver strong ROIC through the credit cycle Balance Sheet Objectives Capital Allocation Priorities 1) Leverage defined as Net Debt ÷ (LTM Adjusted EBITDA + LTM collections applied to principal balance), which we also refer to as our Leverage Ratio.
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Encore Capital Group, Inc. 17 Updating our full-year 2026 guidance Interest expense2 of $295M Effective tax rate to be in the mid-20’s % 2026 EPS guidance excludes the $0.65 to $0.90 per share potential positive impact of a discrete, non-cash tax benefit in Q4 2026 2025 Result Updated 2026 Guidance1 Portfolio purchases $1.4B $1.50B to $1.55B Collections $2.6B $2.90B to $2.95B GAAP earnings per share $10.91 $15.50 to $16.00 1) In constant currency 2) Includes other income
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Encore Capital Group, Inc. 18 Appendix
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Encore Capital Group, Inc. 19 Receivable portfolios and annualized yields Definitions: Collections yield = (collections / average receivable portfolios) x 4 Portfolio yield = (portfolio revenue / average receivable portfolios) x 4 Impact of changes in recoveries = (changes in recoveries / average receivable portfolios) x 4 Debt purchasing yield = (portfolio yield + impact of changes in recoveries) Note: 2026 guidance is provided on portfolio purchases and collections to facilitate roll forward of receivable portfolios average balance Receivable portfolios $ in millions Q3 25 Q4 25 Q1 26 Q2 26 Q3 26 Balance, beginning of period 4,184.8 4,270.0 4,371.5 4,437.4 4,609.7 Portfolio purchases 346.1 327.1 362.8 443.8 389.7 Collections (663.0) (670.0) (718.4) (736.9) (753.8) Portfolio revenue 370.1 379.3 390.0 400.2 414.4 Changes in recoveries 63.6 68.1 62.7 71.1 111.0 Other (31.6) (2.9) (31.3) (6.0) (7.6) Balance, end of period 4,270.0 4,371.5 4,437.4 4,609.7 4,763.4 Average balance 4,227.4 4,320.8 4,404.5 4,523.6 4,686.6 Annualized/annual yields Q3 25 Q4 25 Q1 26 Q2 26 Q3 26 Collections yield 62.7% 62.0% 65.2% 65.2% 64.3% Portfolio yield 35.0% 35.1% 35.4% 35.4% 35.4% Impact of changes in recoveries 6.0% 6.3% 5.7% 6.3% 9.5% Debt purchasing yield 41.0% 41.4% 41.1% 41.7% 44.9%
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Encore Capital Group, Inc. 20 Supporting financial modeling formulas Average receivable portfolios Portfolio yield Portfolio revenue Collections yield Collections Collections Servicing & other revenue Average receivable portfolios Cash receipts x = x = Cash receipts+ = x ( Cash efficiency margin1 - ) = Operating expenses
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Encore Capital Group, Inc. 21 Quarterly Cash Efficiency Margin Quarterly Cash Efficiency Margin and Cash Receipts (in $M) Note: Quarterly cash efficiency margin utilizes non-GAAP metrics defined as (cash receipts – adjusted operating expenses) ÷ cash receipts, where cash receipts = collections + servicing revenues + other revenues. See appendix for calculation and a reconciliation to GAAP. 690 696 741 757 773 58.4% 57.1% 60.9% 60.2% 59.6% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% 90.0% 100.0% - $100 $200 $300 $400 $500 $600 $700 $800 $900 Q3 2025 Q4 2025 Q1 2026 Q2 2026 Q3 2026 Cash receipts Quarterly cash efficiency margin
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Encore Capital Group, Inc. 22 Q3 2026 Cash Collections and Revenue Reconciliation 754 414 +52 288 0 100 200 300 400 500 600 700 800 Cash Collections Recoveries Above Forecast (Cash Overs) Portfolio Amortization Portfolio Revenue Q3 2026 Collections and Revenue Reconciliation (in $M) $754M Cash Collections from debt purchasing business in Q3 2026 $52M Recoveries Above Forecast, cash collections above expected cash collections for Q3 2026 $288M Portfolio Amortization $414M Portfolio Revenue is further detailed on the next slide A A C CB D B D Note: Portfolio Amortization represents the reduction of the receivable portfolio balance from collections and is calculated as cash collections less portfolio revenue less recoveries above forecast.
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Encore Capital Group, Inc. 23 Components of Debt Purchasing Revenue in Q3 2026 414 525 +52 +59 0 100 200 300 400 500 Portfolio Revenue Recoveries Above Forecast (Over Performance) Changes in Expected Future Recoveries Debt Purchasing Revenue Q3 2026 Debt Purchasing Revenue (in $M) 1. Portfolio Revenue is revenue from expected collections and is a formulaic calculation based on the investment in receivable balance and an effective interest rate (EIR) that is established at the time of the purchase of each portfolio. 2. Changes in Recoveries is the sum of B + F 3. Recoveries Above/Below Forecast is the amount collected as compared to forecast for the period and represents over/under performance for the period. Colloquially referred to as “cash-overs” or “cash-unders”. 4. Changes in Expected Future Recoveries is the present value of changes to future ERC, which generally consists of: o Collections “pulled forward from” or “pushed out to” future periods (amounts either collected early or expected to be collected later); and o Magnitude and timing changes to estimates of expected future collections (which can be increases or decreases) 5. Debt Purchasing Revenue is the sum of D + E +111 Changes in Recoveries D B F G D B F G E E Debt Purchasing Revenue in the Financial Statements
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Encore Capital Group, Inc. 24 Non-GAAP Financial Measures This presentation includes certain financial measures that exclude the impact of certain items and therefore have not been calculated in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”). The Company has included information concerning Adjusted EBITDA because management utilizes this information in the evaluation of its operations and believes that this measure, when added to collections applied to principal balance, is a useful indicator of the Company’s ability to generate cash collections in excess of operating expenses through the liquidation of its receivable portfolios. The Company has included Pre-Tax ROIC as management uses this measure to monitor and evaluate operating performance relative to our invested capital and because the Company believes it is a useful measure for investors to evaluate effective use of capital. The Company has included Net Debt and Leverage as management uses these measures to monitor and evaluate its ability to incur and service debt. The Company has included Adjusted Operating Expenses in order to calculate Cash Efficiency Margin, which can be used as a measure of expense efficiency. The Company has included impacts from foreign currency exchange rates to facilitate a comparison of operating metrics that are unburdened by variations in foreign currency exchange rates over time. Adjusted EBITDA, Adjusted Income from Operations (used in Pre-Tax ROIC), Net Debt, Leverage, Adjusted Operating Expenses (used in Cash Efficiency Margin) and impacts from foreign currency exchange rates have not been prepared in accordance with GAAP. These non-GAAP financial measures should not be considered as alternatives to, or more meaningful than, net income, income from operations, or operating expenses as indicators of the Company’s operating performance or liquidity. Further, these non-GAAP financial measures, as presented by the Company, may not be comparable to similarly titled measures reported by other companies. The Company has attached to this presentation a reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures. Constant Currency figures are calculated by employing Q3 2025 foreign currency exchange rates to recalculate Q3 2026 results. Constant Currency values for operating metrics are calculated based on the average exchange rates during the respective periods.
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Encore Capital Group, Inc. 25 Calculation of Quarterly Cash Efficiency Margin 1) Quarterly cash efficiency margin defined as (cash receipts – adjusted operating expenses) ÷ cash receipts, where cash receipts = collections + servicing revenues + other revenues 1Quarterly cash efficiency margin $ in millions, except percentages Q3 25 Q4 25 Q1 26 Q2 26 Q3 26 Collections 663.0 670.0 718.4 736.9 753.8 Servicing revenues 22.2 21.4 20.6 18.2 17.5 Other revenues 4.4 4.8 2.0 2.3 1.6 Cash receipts (A) 689.6 696.2 741.1 757.4 772.9 Operating expenses 287.2 300.2 291.4 305.0 313.9 Acquisition, integration and restructuring related expenses (0.2) (1.7) (1.5) (3.2) (1.5) Adjusted operating expenses (B) 287.0 298.4 290.0 301.8 312.5 Quarterly cash efficiency margin (A-B) / A 58.4% 57.1% 60.9% 60.2% 59.6%
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Encore Capital Group, Inc. LTM Adjusted EBITDA $ in millions Q3 25 Q4 25 Q1 26 Q2 26 Q3 26 (45.1) 256.8 296.3 301.6 350.9 287.2 293.9 296.4 296.4 294.5 (5.9) (5.0) (4.5) (4.2) (4.4) 73.5 79.3 91.2 90.7 102.3 30.8 28.8 28.3 28.1 28.0 15.3 18.3 19.4 20.2 20.5 7.5 3.2 4.4 6.6 7.9 7.8 1.6 1.6 32.1 32.1 100.6 - - - - 18.5 - - - - 490.3 677.0 733.1 771.4 831.8 1,062.7 953.5 978.6 1,003.8 999.0 LTM net income, as reported Adjustments: Interest expense Interest income Provision for income taxes Goodwill impairment Impairment of assets LTM adjusted EBITDA LTM collections applied to principal balance Depreciation and amortization Stock-based compensation expense Acquisition, integration and restructuring related expenses Loss on extinguishment of debt Calculation of Cash Generation Reconciliation of Adjusted EBITDA to Net Income 26 1) Amount represents acquisition, integration and restructuring related expenses. We adjust for this amount because we believe these expenses are not indicative of ongoing operations; therefore, adjusting for these expenses enhances comparability to prior periods, anticipated future periods, and our competitors’ results. 2) During the quarter ended December 31, 2024, we recorded a non-cash goodwill impairment charge of $100.6 million and a non-cash impairment of long-lived assets of $18.5 million. We believe these non-cash impairment charges are not indicative of ongoing operations, therefore adjusting for these expenses enhances comparability to prior periods, anticipated future periods, and our competitors’ results. 3) Amount represents (a) gross collections from receivable portfolios less (b) debt purchasing revenue, plus (c) proceeds applied to basis from sales of real estate owned (“REO”) assets and exit activities. 1 2 2 3
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Encore Capital Group, Inc. 27 Calculation of Net Debt and Leverage Net debt and leverage $ in millions, except leverage Q3 25 Q4 25 Q1 26 Q2 26 Q3 26 GAAP Borrowings 3,933.9 4,001.3 4,033.3 4,179.5 4,237.8 Debt issuance costs and debt discounts 30.5 32.1 30.4 33.9 30.2 Cash & cash equivalents (172.5) (156.8) (227.2) (182.9) (158.4) Client cash 24.5 22.5 17.1 14.1 10.4 Net debt (A) 3,816.4 3,899.2 3,853.6 4,044.6 4,119.9 LTM adjusted EBITDA (B) 490.3 677.0 733.1 771.4 831.8 LTM collections applied to principal balance (C) 1,062.7 953.5 978.6 1,003.8 999.0 Leverage A / (B+C) 2.5x 2.4x 2.3x 2.3x 2.3x
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Encore Capital Group, Inc. Adjusted income from operations and ROIC $ in millions, except percentages Q3 25 Q4 25 Q1 26 Q2 26 Q3 26 Numerator LTM income from operations 319.1 626.6 681.3 717.5 774.9 Adjustments: Acquisition, integration and restructuring related expenses (0.2) (19.1) 4.4 6.6 7.9 Goodwill impairment 100.6 - - - - Impairment of assets 18.5 - - - - Changes in recoveries related to exit activities 30.1 22.3 - - - LTM adjusted income from operations 468.1 629.8 685.7 724.1 782.8 Denominator Average net debt 3,594.9 3,715.4 3,756.7 3,946.8 3,968.1 Average equity 1,000.5 872.0 926.9 987.3 1,015.8 Total average invested capital 4,595.4 4,587.4 4,683.7 4,934.2 4,983.9 Pre-tax ROIC 10.2% 13.7% 14.6% 14.7% 15.7% 28 Calculation of ROIC Reconciliation of Adjusted Income from Operations 1) Amount represents acquisition, integration and restructuring related expenses. We adjust for this amount because we believe these expenses are not indicative of ongoing operations; therefore, adjusting for these expenses enhances comparability to prior periods, anticipated future periods, and our competitors’ results. 2) During the quarter ended December 31, 2024, we recorded a non-cash goodwill impairment charge of $100.6 million and a non-cash impairment of long-lived assets of $18.5 million. We believe these non-cash impairment charges are not indicative of ongoing operations, therefore adjusting for these expenses enhances comparability to prior periods, anticipated future periods, and our competitors’ results. 3) Amount represents the net present value of ERC eliminated as a result of the sale of portfolios associated with Cabot’s exit from the Italian NPL market and Spanish secured NPL market in the year ending December 31, 2024. We have adjusted for this amount because we do not believe this is indicative of ongoing operations. 1 2 2 3