v3.26.1
Business Segments
 6 Months Ended
Jun. 30, 2026
Segment Reporting [Abstract]  
Business Segments Business Segments
The Company has determined that its U.S. and European businesses are reportable segments. The U.S. reportable segment includes the operating results of the Company's class action claims recoveries business, which are not material to the segment as a whole.
The chief operating decision maker ("CODM") is the Company’s chief executive officer ("CEO"). The primary profitability measure used by the CEO to evaluate performance and allocate resources is Income from operations excluding goodwill impairment, when applicable, and certain unallocated corporate expenses ("Adjusted segment operating income"). The Company does not report a measure of segment assets as that information is not regularly provided to the CEO. Intersegment and other intercompany transactions are executed on an arms-length basis. All prior period disclosures have been recast to reflect the reportable segment reorganization that occurred as of December 31, 2025.
Segment financial information
Segment operating results and reconciliations to the consolidated totals for the three and six months ended June 30, 2026 and 2025 were as follows (in thousands):
Three Months Ended June 30,
20262025
U.S.EuropeTotalU.S.EuropeTotal
Revenues from external customers$150,476 $216,613 $367,089 $137,448 $119,447 $256,895 
All other revenues (1)
5,085 30,793 
Total consolidated revenues$372,174 $287,688 
Segment expenses (2)
Compensation and benefits39,197 17,494 56,691 45,403 20,235 65,638 
Legal collection expenses57,237 10,400 67,637 40,717 9,406 50,123 
Professional and outside services12,912 5,061 17,973 13,676 4,536 18,212 
Other segment items (3)
23,815 15,512 39,327 20,141 14,547 34,688 
Adjusted segment operating income17,315 168,146 185,461 17,511 70,723 88,234 
Reconciliation to consolidated totals
All other operating income and corporate expenses (4)
(32,179)(3,123)
Income from operations153,282 85,111 
Interest expense, net(64,363)(62,361)
Gain on sale of equity method investment— 38,403 
Other, net(593)(25)
Income before income taxes$88,326 $61,128 
Six Months Ended June 30,
20262025
U.S.EuropeTotalU.S.EuropeTotal
Revenues from external customers$307,271 $342,245 $649,516 $273,829 $219,597 $493,426 
All other revenues (1)
37,191 63,881 
Total consolidated revenues$686,707 $557,307 
Segment expenses (2)
Compensation and benefits78,694 38,198 116,892 90,896 39,414 130,310 
Legal collection expenses110,377 19,862 130,239 77,579 18,045 95,624 
Professional and outside services24,724 9,540 34,264 26,502 8,721 35,223 
Other segment items (3)
45,972 30,279 76,251 43,962 26,067 70,029 
Adjusted segment operating income47,504 244,366 291,870 34,890 127,350 162,240 
Reconciliation to consolidated totals
All other operating income and corporate expenses (4)
(35,334)(2,552)
Income from operations256,536 159,688 
Interest expense, net(127,881)(123,331)
Gain on sale of equity method investment— 38,403 
Other, net207 (256)
Income before income taxes$128,862 $74,504 
(1)Reflects revenues from external customers in South America, Canada and Australia.
(2)Amounts include intersegment and intercompany expenses, which are not material.
(3)Primarily reflects Communication expenses, Agency fees and Other operating expenses.
(4)Includes operating income in South America, Canada and Australia and certain unallocated corporate personnel, administrative and other overhead expenses.
Other segment balances and reconciliations to the consolidated totals for the three and six months ended June 30, 2026 and 2025 were as follows (in thousands):
U.S.Europe
All Other (1)
Consolidated Total
Three months ended June 30, 2026
Interest expense, net$35,186 $30,756 $(1,579)$64,363 
Depreciation and amortization927 932 27 1,886 
Income tax expense/(benefit)(2,422)30,694 1,113 29,385 
Three months ended June 30, 2025
Interest expense, net$38,610 $25,095 $(1,344)$62,361 
Depreciation and amortization1,671 800 32 2,503 
Income tax expense/(benefit)(4,726)7,641 12,500 15,415 
U.S.Europe
All Other (1)
Consolidated Total
Six months ended June 30, 2026
Interest expense, net$76,292 $54,349 $(2,760)$127,881 
Depreciation and amortization1,781 1,754 59 3,594 
Income tax expense/(benefit)(2,720)39,554 1,315 38,149 
Six months ended June 30, 2025
Interest expense, net$76,549 $48,862 $(2,080)$123,331 
Depreciation and amortization3,887 1,480 74 5,441 
Income tax expense/(benefit)(6,967)12,862 13,832 19,727 
(1)Reflects activity in South America, Canada and Australia. Interest expense, net also includes elimination of intersegment and intercompany interest.