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Business Segments
 3 Months Ended
Mar. 31, 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 months ended March 31, 2026 and 2025 were as follows (in thousands):
Three Months Ended March 31,
20262025
U.S.EuropeTotalU.S.EuropeTotal
Revenues from external customers$156,795 $125,632 $282,427 $136,381 $100,150 $236,531 
All other revenues (1)
32,106 33,088 
Total consolidated revenues$314,533 $269,619 
Segment expenses (2)
Compensation and benefits39,497 20,704 60,201 45,493 19,179 64,672 
Legal collection expenses53,140 9,462 62,602 36,862 8,639 45,501 
Professional and outside services11,812 4,479 16,291 12,826 4,185 17,011 
Other segment items (3)
22,157 14,767 36,924 23,821 11,520 35,341 
Adjusted segment operating income30,189 76,220 106,409 17,379 56,627 74,006 
Reconciliation to consolidated totals
All other operating income and corporate expenses (4)
(3,155)571 
Income from operations103,254 74,577 
Interest expense, net(63,518)(60,970)
Other, net800 (231)
Income before income taxes$40,536 $13,376 
(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 months ended March 31, 2026 and 2025 were as follows (in thousands):
U.S.Europe
All Other (1)
Consolidated Total
Three months ended March 31, 2026
Interest expense, net$41,106 $23,593 $(1,181)$63,518 
Depreciation and amortization854 822 32 1,708 
Income tax expense/(benefit)(298)8,860 202 8,764 
Three months ended March 31, 2025
Interest expense, net$37,939 $23,767 $(736)$60,970 
Depreciation and amortization2,216 680 42 2,938 
Income tax expense/(benefit)(2,241)5,221 1,332 4,312 
(1)Reflects activity in South America, Canada and Australia. Interest expense, net also includes elimination of intersegment and intercompany interest.