Jefferson Capital (NASDAQ: JCAP) delivers strong 2025 growth and lower leverage
Rhea-AI Filing Summary
Jefferson Capital, Inc. reported strong fourth quarter and full year 2025 results, highlighted by record performance across key metrics. Fourth quarter collections rose to $245.3 million, up 40.7% year over year, while deployments increased to $380.5 million, up 6.3%.
Estimated remaining collections reached $3.38 billion as of December 31, 2025, up 23.1% from 2024, reflecting a larger future cash flow pipeline. Fourth quarter pre-tax income grew 50% to $44.1 million, with net income of $37.7 million and EPS of $0.58. Adjusted pre-tax income was $51.1 million, and adjusted net income was $44.7 million.
For full year 2025, total revenues increased to $613.3 million from $433.3 million, and net income rose to $188.0 million from $128.9 million. The leverage ratio improved to 1.82x from 2.72x, showing stronger balance sheet capacity. The Board declared a quarterly cash dividend of $0.24 per share, payable on April 2, 2026 to shareholders of record on March 24, 2026.
Recent developments include the closing of the Bluestem portfolio purchase on December 4, 2025, which management expects to contribute meaningfully to 2026 results. In January 2026, existing stockholders sold 11.5 million shares in a secondary offering at $20.50 per share, and the company repurchased and retired 3.0 million shares, reducing J.C. Flowers’ ownership to 53% and increasing public float and liquidity.
Positive
- Strong growth in earnings and revenue: 2025 revenues increased to $613.3 million from $433.3 million and net income rose to $188.0 million from $128.9 million, reflecting substantial expansion of the business.
- Improved leverage and balance sheet flexibility: the leverage ratio declined to 1.82x from 2.72x on higher Adjusted Cash EBITDA, indicating stronger capacity to support the portfolio and funding needs.
- Record collections and larger ERC pipeline: fourth quarter 2025 collections reached $245.3 million, up 40.7%, and estimated remaining collections grew 23.1% to $3.38 billion, supporting future cash flow visibility.
- Shareholder-focused capital actions: the Board maintained a $0.24 per share quarterly dividend and the company repurchased and retired 3.0 million shares in conjunction with a secondary offering, while increasing public float and liquidity.
Negative
- None.
Insights
Results show strong growth, improving leverage and active capital management.
Jefferson Capital delivered rapid expansion in 2025, with total revenues rising from $433.3 million to $613.3 million and net income increasing from $128.9 million to $188.0 million. Strong portfolio collections and higher estimated remaining collections support a larger, more valuable asset base.
Fourth quarter collections of $245.3 million and total ERC of $3.38 billion underscore scale across the United States, Canada, the United Kingdom and Latin America. The Bluestem portfolio acquisition, closed on December 4, 2025, is expected by management to be a meaningful contributor to 2026 results, adding to growth momentum.
Leverage improved materially, with the leverage ratio declining to 1.82x from 2.72x, indicating more headroom relative to cash earnings. Capital actions were active but balanced: a secondary sale of 11.5 million shares by existing stockholders at $20.50 per share, a 3.0 million share repurchase and retirement, and a continuing quarterly dividend of $0.24 per share.
8-K Event Classification
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Item 2.02 Results of Operations and Financial Condition.
On March 12, 2026, Jefferson Capital, Inc. (the “Company”) announced its financial results for the year ended December 31, 2025. The full text of the press release issued in connection with the announcement is furnished as Exhibit 99.1 to this Current Report on Form 8-K. The information contained in Item 2.02 of this Current Report on Form 8-K (including Exhibit 99.1 attached hereto) shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly provided by specific reference in such a filing.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
The following Exhibit 99.1 shall be deemed to be furnished, and not filed:
Exhibit No. | Description |
99.1 | Press release issued on March 12, 2026 |
104 | Cover page Interactive Data File (embedded within the Inline XBRL document) |
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Jefferson Capital, Inc. | |
Date: March 12, 2026 | |
By: /s/ Christo Realov | |
Name: Christo Realov | |
Title: Chief Financial Officer |
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Exhibit 99.1
Jefferson Capital Reports Fourth Quarter and Full Year 2025 Results
Record Quarterly Collections Grow 41% to $245.3 Million and Record Deployments Grow 6% to $380.5 Million
Fourth Quarter Pre-tax Income up 50% to $44.1 Million with Net Income of $37.7 Million and EPS of $0.58
Fourth Quarter Adjusted Pre-tax Income up 15% to $51.1 Million with Adjusted Net Income of $44.7 Million and Adjusted EPS of $0.69
Board of Directors Declares Quarterly Cash Dividend of $0.24 per Share
MINNEAPOLIS, March 12, 2026 /GLOBE NEWSWIRE/ -- Jefferson Capital, Inc. (“Jefferson Capital”), a leading analytically driven purchaser and manager of charged-off, insolvency and active consumer accounts, today announced its fourth quarter and full year 2025 financial results.
“We finished the year with record collections, deployments and estimated remaining collections, or ERC - exceptional performance across all key operating aspects of the business,” said David Burton, Chairman and Chief Executive Officer. “We feel confident in our momentum going into 2026 as we continue to focus on driving profitable growth and maximizing shareholder value.”
“The Bluestem portfolio purchase closed on December 4th, and we believe the transaction solidifies our leadership position as a strategic acquirer of a wide spectrum of dislocated consumer credit assets. We are pleased with portfolio performance to date and expect Bluestem to be a meaningful contributor to our financial results in 2026.”
“Following quarter end, we executed a follow-on equity offering, which reduced the ownership of J.C. Flowers to 53% and substantially increased our float and liquidity. The company repurchased $58.9 million of stock to support that transaction.”
Fourth Quarter 2025 Highlights (vs. Fourth Quarter 2024)
| ● | Record collections grew 41% to $245.3 million |
| ● | Record deployments up 6% to $380.5 million |
| ● | Record ERC rose 23% reaching $3.4 billion |
| ● | Record revenue up 30% to $154.8 million |
| ● | Sector-leading Cash Efficiency Ratio of 71.0% |
| ● | Leverage ratio* improved to 1.82x as compared to 2.72x |
| ● | Pre-tax Income up 50% to $44.1 million with Net Income of $37.7 million and EPS of $0.58 |
| ● | Adjusted Pre-tax Income* increased 15% to $51.1 million |
| ● | Adjusted Net Income* of $44.7 million, and Adjusted EPS of $0.69 |
Full Year 2025 Highlights (vs. Full Year 2024)
| ● | Collections grew 71% to $998.7 million |
| ● | Deployments up 15% to $832.1 million |
| ● | Strong revenue growth of 42% to $613.3 million |
| ● | Sector-leading Cash Efficiency Ratio of 74.0% |
| ● | Net Operating Income up 44% to $316.5 million |
| ● | Pre-tax Income up 59% to $218.4 million |
| ● | Adjusted Pre-tax Income* up 44% to $233.1 million |
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Collections
The following table summarizes total collections by geographic area:
| | Three Months Ended | | | | | | | ||||
| | December 31, | | Increase | | % | | |||||
(in Millions) | | 2025 | | 2024 | | (Decrease) | | Change | | |||
United States | | $ | 186.4 | | $ | 131.8 | | $ | 54.6 | | 41.4 | % |
Canada | | | 30.6 | | | 21.8 | | | 8.8 | | 40.4 | % |
United Kingdom | | | 10.5 | | | 10.2 | | | 0.3 | | 2.9 | % |
Latin America | | | 17.8 | | | 10.5 | | | 7.3 | | 69.5 | % |
Total Collections | | $ | 245.3 | | $ | 174.3 | | $ | 71.0 | | 40.7 | % |
| ● | Collections from purchased receivables increased 40.7% or $70.9 million to $245.3 million during the fourth quarter of 2025 versus $174.3 million during the same quarter in 2024 |
| ● | Collections in the United States included $36.3 million from the Conn’s portfolio purchase and $14.3 million from the Bluestem portfolio purchase which closed in the fourth quarter of 2025 |
Estimated Remaining Collections
The following table summarizes total ERC by geographic area:
| | December 31, | | Increase | | % | | |||||
(in Millions) | | 2025 | | 2024 | | (Decrease) | | Change | | |||
United States | | $ | 2,530.7 | | $ | 2,114.0 | | $ | 416.7 | | 19.7 | % |
Canada | | | 392.2 | | | 266.1 | | | 126.0 | | 47.4 | % |
United Kingdom | | | 190.3 | | | 151.8 | | | 38.5 | | 25.3 | % |
Latin America | | | 266.7 | | | 212.6 | | | 54.1 | | 25.5 | % |
Total | | $ | 3,379.8 | | $ | 2,744.5 | | $ | 635.3 | | 23.1 | % |
| ● | ERC in the United States included $139.9 million from the Conn’s portfolio purchase and $295.6 million from the Bluestem portfolio purchase which closed December 4, 2025 |
Deployments
The following table summarizes the total deployments by geographic area:
| | Three Months Ended | | | | | | | ||||
| | December 31, | | Increase | | % | | |||||
(in Millions) | | 2025 | | 2024 | | (Decrease) | | Change | | |||
United States | | $ | 317.4 | | $ | 321.6 | | $ | (4.2) | | (1.3) | % |
Canada | | | 32.2 | | | 20.6 | | | 11.6 | | 56.6 | % |
United Kingdom | | | 21.3 | | | 6.7 | | | 14.6 | | 217.1 | % |
Latin America | | | 9.6 | | | 9.0 | | | 0.6 | | 6.9 | % |
Total Purchases | | $ | 380.5 | | $ | 357.9 | | $ | 22.6 | | 6.3 | % |
| ● | The Company invested $380.5 million during the quarter to acquire receivable portfolios, up 6.3% compared to $357.9 million in the fourth quarter 2024 |
| ● | $274.5 million of deployments locked in through forward flows at year end of which $224.8 million are for the next twelve months |
Revenues
| ● | Total revenues increased $35.8 million for the quarter, or 30.1%, to $154.8 million compared to $119.0 million for the fourth quarter 2024. The growth is primarily a result of strong deployments in prior periods and higher net yields. |
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Operating Expenses
| ● | Total operating expenses increased $19.2 million, or 29.8% to $83.6 million compared to $64.4 million for the fourth quarter 2024 primarily due to increases of $10.0 million in servicing expenses due to increased collections, $8.2 million in court costs due to increased legal channel volume as well as $8.8 million in salaries and benefits driven by $8.4 million in non-cash stock-based compensation expense |
| ● | For the fourth quarter 2025, the Company recognized portfolio revenue of $15.5 million, servicing revenue of $1.3 million and net operating income of $10.7 million related to the Conn’s portfolio purchase |
| ● | For the fourth quarter 2025, the Company recognized portfolio revenue of $5.4 million and net operating income of $2.5 million related to the Bluestem portfolio purchase |
Leverage, Liquidity and Capital Resources
| ● | Leverage* improved to 1.82x at December 31, 2025 compared to 2.72x at December 31, 2024 as a result of strong growth in portfolio cashflow |
| ● | On October 27, 2025 Jefferson Capital completed an amendment of its Revolving Credit Facility (“RCF”) achieving a number of important funding structure objectives: |
| o | Increased commitments by $175 million to an aggregate amount of $1 billion |
| o | Extended maturity to October 27, 2030 |
| o | Reduced pricing by 50 bps across the pricing grid, eliminated any credit spread adjustments and removed the SOFR floor |
| o | Reduced the non-use fee rate for unutilized commitments by 5 bps |
| o | Implemented a handful of ‘housekeeping’ borrower-friendly changes to reflect public company status |
| ● | At December 31, 2025, the Company had $232 million drawn under the RCF |
| ● | The $300 million 2026 maturity was pre-funded with a $500 million unsecured debt offering in May 2025, which paid down the RCF. The company has segregated $300 million of capacity to repay the maturity in May 2026 |
Dividend
The Board of Directors declared a quarterly cash dividend of $0.24 per share on its outstanding common stock, payable on April 2, 2026, to shareholders of record as of the close of business on March 24, 2026.
Recent Developments
On January 7, 2026, the Company announced the pricing of the underwritten public offering of 10,000,000 shares of common stock by certain of its existing stockholders at a price to the public of $20.50 per share. In addition, the underwriters purchased from the selling stockholders 1,500,000 additional shares of common stock at the public offering price, less underwriting discounts and commissions. The selling stockholders received all the net proceeds from this offering. As part of the secondary offering, the Company concurrently repurchased and retired 3,000,000 shares of its common stock from the underwriters at a per-share purchase price equal to the price payable by the underwriters to the selling stockholders in the offering. The offering and the concurrent share repurchase closed on January 9, 2026.
*Leverage Ratio, Adjusted Pre-Tax Income, Adjusted Net Income and Adjusted EPS are non-GAAP financial measures. For a reconciliation of historical Leverage, Adjusted Pre-Tax Income and Adjusted Net Income, to the most directly comparable U.S. GAAP financial measures, please refer to the “Non-GAAP Financial Measures” section of this press-release.
Webcast
A webcast to discuss the Company’s fourth quarter 2025 financial results is scheduled for today, March 12, 2026 at 5:00 p.m. ET. The live webcast and archived replay can be accessed in the investor relations section of the Company's website at https://investors.jcap.com/news-events/events.
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Use of Non-GAAP Financial Measures
This press release contains references to non-GAAP financial measures, including Leverage, Adjusted Pre-Tax Income, Adjusted Net Income, and Adjusted EPS, which are financial measures that are not prepared in conformity with United States generally accepted accounting principles (U.S. GAAP). These non-GAAP measures are used by management as a supplemental measure, have certain limitations, and should not be construed as alternatives to financial measures determined in accordance with GAAP. Our management believes Leverage, Adjusted Pre-Tax Income, Adjusted Net Income and Adjusted EPS help us provide enhanced period-to-period comparability of operations and financial performance and are useful to investors as other companies in our industry report similar financial measures. The non-GAAP measures as defined by us may not be comparable to similar non-GAAP financial measures presented by other companies, which could limit such measures’ usefulness as comparative measures. Our presentation of such measures, which may include adjustments to exclude unusual or non-recurring items, should not be construed as an inference that our future results will be unaffected by other unusual or non-recurring items. Detailed reconciliations of non-GAAP financial measures to the most directly comparable GAAP financial measures are included in the financial tables following this release.
About Jefferson Capital, Inc.
Founded in 2002, Jefferson Capital is an analytically driven purchaser and manager of charged-off, insolvency and active consumer accounts with operations in the United States, Canada, the United Kingdom and Latin America. It purchases and services both secured and unsecured assets, and its growing client base includes Fortune 500 creditors, banks, fintech origination platforms, telecommunications providers, credit card issuers and auto finance companies. Jefferson Capital is headquartered in Minneapolis, Minnesota with additional offices and operations located in Sartell, Minnesota, Denver, Colorado and San Antonio, Texas (United States); Basingstoke, England; London, England and Paisley, Scotland (United Kingdom); London, Ontario and Toronto, Ontario (Canada); as well as Bogota (Colombia).
Contacts:
Investor Relations
IR@jcap.com
Media Relations
Doug.Donsky@icrinc.com
Disclosure Regarding Forward Looking Statements
This press release may contain “forward-looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and in the U.S. Private Securities Litigation Reform Act of 1995. All statements contained in this press release that do not relate to matters of historical fact should be considered forward-looking statements, including without limitation statements concerning our anticipated financial performance, execution of our business strategies, the favorability of the investment environment, the benefits of the transaction with Bluestem, and our ability to continue paying quarterly cash dividends. These statements are neither promises nor guarantees, but involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including, but not limited to, the following: a deterioration in the economic or inflationary environment in the United States, Canada, the United Kingdom or Latin America, including the interest rate environment; our ability to replace our portfolios of nonperforming loans with additional portfolios sufficient to operate efficiently and profitably; our ability to collect sufficient amounts on our nonperforming loans to fund our operations; the possibility that third parties we rely on to conduct collection and other activities fail to perform their services; the possibility that we could recognize significant decreases in our estimate of future recoveries on nonperforming loans; changes in, or interpretations of, federal, state, local, or international laws, including bankruptcy and collection laws, or changes in the administrative practices of various bankruptcy courts, which could negatively impact our business or our ability to collect on nonperforming loans; goodwill impairment charges that could negatively impact our net income and stockholders’ equity; our ability to comply with existing and new regulations of the collection industry, the failure of which could result in penalties, fines, litigation, damage to our reputation, or the suspension or termination of or required modification to our ability to conduct our business; adverse outcomes in pending or future litigation or administrative proceedings; the possibility that class action suits and other litigation could divert management’s attention and increase our expenses; investigations, reviews, or enforcement actions by governmental authorities, including the Consumer Financial Protection Bureau, which could
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result in changes to our business practices, negatively impact our deployment volume, make collection of account balances more difficult, or expose us to the risk of fines, penalties, restitution payments, and litigation; the possibility that compliance with complex and evolving international and United States laws and regulations that apply to our international operations could increase our cost of doing business in international jurisdictions; our ability to comply with data privacy regulations such as the General Data Protection Regulation; our ability to retain, expand, renegotiate or replace our credit facility and our ability to comply with the covenants under our financing arrangements; our ability to refinance our indebtedness; our ability to service our outstanding indebtedness; changes in interest or exchange rates, which could reduce our net income, and the possibility that future hedging strategies may not be successful; and the possibility that we could incur business or technology disruptions or cybersecurity incidents. These and other important factors discussed under the caption “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2025 to be filed with the SEC, and our other filings with the SEC, could cause actual results to differ materially from those indicated by the forward-looking statements made in this press release. Any such forward-looking statements represent management’s estimates as of the date of this press release. While we may elect to update such forward-looking statements at some point in the future, we disclaim any obligation to do so, even if subsequent events cause our views to change.
FINANCIAL TABLES FOLLOW
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Jefferson Capital, Inc.
Combined and Consolidated Balance Sheets
As of December 31, 2025 and 2024
(Amounts in Thousands)
| | | ||||
| | 2025 | | 2024 | ||
Assets | | | | | | |
Cash and cash equivalents | | $ | 23,231 | | $ | 35,506 |
Restricted cash | | | 24,320 | | | 2,737 |
Accounts receivable | | | 12,245 | | | 16,532 |
Other assets | | | 16,273 | | | 14,390 |
Investments in receivables, net | | | 1,928,742 | | | 1,497,748 |
Credit card receivables (net of allowance for | | | 16,312 | | | 17,176 |
credit losses of $1,784 and $1,907) | | | | | | |
Property, plant and equipment, net | | | 1,695 | | | 2,274 |
Other intangible assets, net | | | 6,541 | | | 10,237 |
Goodwill | | | 58,014 | | | 57,683 |
Total Assets | | $ | 2,087,373 | | $ | 1,654,283 |
| | | | | | |
Liabilities | | | | | | |
Accounts payable and accrued expenses | | $ | 95,208 | | $ | 69,975 |
Other liabilities | | | 4,179 | | | 4,860 |
Current tax liabilities | | | 855 | | | — |
Deferred tax liabilities | | | 101,957 | | | 2,193 |
Notes payable, net | | | 1,409,039 | | | 1,194,726 |
Total Liabilities | | $ | 1,611,238 | | $ | 1,271,754 |
| | | | | | |
Stockholders' Equity | | | | | | |
Common Stock par value $0.0001 per share; 330,000,000 shares and 0 shares authorized as of December 31, 2025 and December 31, 2024 and 58,298,923 and 0 shares issued and outstanding as of December 31, 2025 and December 31, 2024 | | $ | 6 | | $ | — |
Additional paid-in capital | | | (49,549) | | | — |
Retained earnings | | | 522,632 | | | 398,122 |
Accumulated other comprehensive income (loss) | | | 3,046 | | | (15,593) |
Total stockholders' equity | | $ | 476,135 | | $ | 382,529 |
Total Liabilities and Stockholders' Equity | | $ | 2,087,373 | | $ | 1,654,283 |
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Jefferson Capital, Inc.
Combined and Consolidated Statements of Operations and Comprehensive Income
For the periods ended December 31, 2025 and 2024
(Amounts in Thousands, except Earnings Per Share amounts)
| | | (unaudited) | | | | | | | | | | |||
| | For the Three Months Ended December 31, | | For the Year Ended December 31, | |||||||||||
| | 2025 | | 2024 | | 2025 | | 2024 | | 2023 | |||||
Revenues | | | | | | | | | | | | | | | |
Total portfolio income | | $ | 143,667 | | $ | 110,942 | | $ | 560,416 | | $ | 396,304 | | $ | 306,529 |
Changes in recoveries | | | 331 | | | (1,985) | | | 6,001 | | | (419) | | | (12,955) |
Total portfolio revenue | | | 143,998 | | | 108,957 | | | 566,417 | | | 395,885 | | | 293,574 |
Credit card revenue | | | 1,746 | | | 1,986 | | | 7,196 | | | 8,338 | | | 8,820 |
Servicing revenue | | | 9,055 | | | 8,035 | | | 39,676 | | | 29,118 | | | 20,678 |
Total Revenues | | | 154,799 | | | 118,978 | | | 613,289 | | | 433,341 | | | 323,072 |
Provision for credit losses | | | 690 | | | 859 | | | 2,360 | | | 3,497 | | | 3,524 |
Operating Expenses | | | | | | | | | | | | | | | |
Salaries and benefits | | | 20,993 | | | 12,140 | | | 64,584 | | | 48,112 | | | 36,527 |
Servicing expenses | | | 53,253 | | | 35,015 | | | 187,201 | | | 130,889 | | | 101,696 |
Depreciation and amortization | | | 1,047 | | | 930 | | | 5,254 | | | 2,608 | | | 2,372 |
Professional fees | | | 3,288 | | | 5,465 | | | 18,641 | | | 11,396 | | | 6,833 |
Other selling, general and administrative | | | 4,971 | | | 10,803 | | | 18,754 | | | 16,572 | | | 8,069 |
Total Operating Expenses | | | 83,552 | | | 64,353 | | | 294,434 | | | 209,577 | | | 155,497 |
Net Operating Income | | | 70,557 | | | 53,766 | | | 316,495 | | | 220,267 | | | 164,051 |
| | | | | | | | | | | | | | | |
Other Income (Expense) | | | | | | | | | | | | | | | |
Interest expense | | | (28,599) | | | (22,050) | | | (105,784) | | | (77,239) | | | (48,108) |
Foreign exchange and other income (expense) | | | 2,161 | | | (2,292) | | | 7,725 | | | (5,474) | | | 4,641 |
Total other expense | | | (26,438) | | | (24,342) | | | (98,059) | | | (82,713) | | | (43,467) |
Income Before Income Taxes | | | 44,119 | | | 29,424 | | | 218,436 | | | 137,554 | | | 120,584 |
Provision for income taxes | | | (6,385) | | | (2,469) | | | (30,471) | | | (8,663) | | | (9,045) |
Net Income | | | 37,734 | | | 26,955 | | | 187,965 | | | 128,891 | | | 111,539 |
Net income attributable to noncontrolling interest | | | — | | | — | | | — | | | — | | | (20) |
Net income attributable to Jefferson Capital, Inc. | | | 37,734 | | | 26,955 | | $ | 187,965 | | $ | 128,891 | | $ | 111,519 |
Foreign currency translation gain / (loss) | | | 5,728 | | | (12,906) | | | 18,639 | | | (13,951) | | | 8,261 |
Comprehensive Income | | $ | 43,462 | | $ | 14,049 | | $ | 206,604 | | $ | 114,940 | | $ | 119,780 |
| | | | | | | | | | | | | | | |
Earnings per share | | | | | | | | | | | | | | | |
Basic | | $ | 0.58 | | $ | — | | $ | 5.64 | | $ | — | | $ | — |
Diluted | | | 0.58 | | | — | | | 5.64 | | | — | | | — |
Weighted average common shares outstanding | | | | | | | | | | | | | | | |
Basic | | | 58,271 | | | — | | | 30,015 | | | — | | | — |
Diluted | | | 58,271 | | | — | | | 30,015 | | | — | | | — |
| | | | | | | | | | | | | | | |
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Jefferson Capital, Inc.
Combined and Consolidated Statements of Cash Flows
For the years ended December 31, 2025, 2024 and 2023
(Amounts in Thousands)
| | | | | |||||
| | | | | |||||
| | 2025 | | 2024 | | 2023 | |||
Cash flows from operating activities | | | | | | | | | |
Net income | | $ | 187,965 | | $ | 128,891 | | $ | 111,539 |
Adjustments to reconcile net income to net cash and cash equivalents provided by operating activities: | | | | | | | | | |
Depreciation and amortization | | | 5,254 | | | 2,608 | | | 2,372 |
Amortization of debt issuance costs | | | 6,223 | | | 4,253 | | | 2,911 |
Provision for credit losses | | | 2,360 | | | 3,497 | | | 3,524 |
Stock-based compensation | | | 17,224 | | | — | | | — |
Deferred income tax | | | 21,465 | | | (527) | | | (754) |
Changes in assets and liabilities: | | | | | | | | | |
Other assets | | | (1,754) | | | (435) | | | (26,230) |
Accounts receivable | | | 4,594 | | | (7,326) | | | 17,861 |
Accounts payable and accrued expenses | | | 25,482 | | | 37,248 | | | 8,996 |
Net cash provided by operating activities | | | 268,813 | | | 168,209 | | | 120,219 |
Cash flows from investing activities | | | | | | | | | |
Purchases of receivables, net | | | (832,077) | | | (723,253) | | | (530,873) |
Purchases of credit card receivables | | | (26,703) | | | (30,750) | | | (35,434) |
Collections applied to investments in receivables, net | | | 432,265 | | | 188,675 | | | 137,400 |
Collections applied to credit card receivables | | | 25,657 | | | 29,174 | | | 32,319 |
Acquisition, net of cash acquired | | | — | | | — | | | (5,596) |
Purchases of property and equipment, net | | | (1,085) | | | (6,211) | | | (1,227) |
Net cash used in investing activities | | | (401,943) | | | (542,365) | | | (403,411) |
Cash flow from financing activities | | | | | | | | | |
Proceeds from notes payable | | | 1,187,797 | | | 1,082,484 | | | 654,734 |
Payments on notes payable | | | (969,295) | | | (650,398) | | | (328,413) |
Payment of debt issuance costs | | | (15,348) | | | (7,266) | | | (5,898) |
Dividends paid to stockholders | | | (63,455) | | | (36,000) | | | (30,564) |
Proceeds from issuance of common stock | | | 10,000 | | | — | | | — |
Net cash (used in) / provided by financing activities | | | 149,699 | | | 388,820 | | | 289,859 |
Exchange rate effects on cash balances held in foreign currencies | | | (7,261) | | | 2,975 | | | (1,220) |
Net (decrease) increase in cash and cash equivalents and restricted cash | | | 9,308 | | | 17,639 | | | 5,447 |
Cash and cash equivalents and restricted cash, beginning of period | | | 38,243 | | | 20,604 | | | 15,157 |
Cash and cash equivalents and restricted cash, end of period | | $ | 47,551 | | $ | 38,243 | | $ | 20,604 |
8
Jefferson Capital, Inc.
Supplemental Financial Information
Reconciliation of Non-GAAP Metrics
Cash Efficiency Ratio
| | Three Months Ended |
| ||||
| | December 31, |
| ||||
($in Millions) | | 2025 | | 2024 |
| ||
Collections | | $ | 245.3 | | $ | 174.3 | |
Credit card revenue | |
| 1.7 | |
| 2.0 | |
Servicing revenue | |
| 9.1 | |
| 8.0 | |
Cash Receipts (A) | | $ | 256.1 | | $ | 184.3 | |
| | | | | | | |
Operating Expenses | | $ | 83.6 | | $ | 64.4 | |
Stock compensation | |
| (8.4) | |
| (0.5) | |
Canaccede exit incentive | |
| (0.4) | |
| (7.7) | |
Merger and acquisition and initial public offering expenses | |
| (0.4) | |
| (4.5) | |
Adjusted Operating Expenses (B) | | $ | 74.4 | | $ | 51.7 | |
| | | | | | | |
Cash Efficiency Ratio (A-B) / A | |
| 71.0 | % |
| 71.9 | % |
Adjusted Pre-tax Income
| | Three Months Ended | ||||
| | December 31, | ||||
($in Millions) | | 2025 | | 2024 | ||
Pre-tax Income | | $ | 44.1 | | $ | 29.4 |
Foreign exchange and other income (expense) | |
| (2.2) | |
| 2.3 |
Stock Compensation | |
| 8.4 | |
| 0.5 |
Canaccede exit incentive | |
| 0.4 | |
| 7.7 |
Merger and acquisition and initial public offering expenses | |
| 0.4 | |
| 4.5 |
Adjusted Pre-tax Income | | $ | 51.1 | | $ | 44.4 |
9
Jefferson Capital, Inc.
Supplemental Financial Information
Reconciliation of Non-GAAP Metrics (Continued)
Adjusted Net Income and Adjusted EPS
| | Three Months Ended | |
| Increase | | % | | ||||
| | December 31, | |
| (Decrease) | | Change | | ||||
(in Millions, Except Adjusted EPS amounts) | | 2025 | | 2024 | |
| | | | | ||
Net Income | | $ | 37.7 | | $ | 27.0 | | $ | 10.7 | | 39.8 | % |
Foreign exchange and other income (expense) | |
| (2.2) | |
| 2.3 | |
| (4.5) | | (194.3) | |
Stock compensation | |
| 8.4 | |
| 0.5 | |
| 7.9 | | 1,574.6 | |
Canaccede exit incentive | |
| 0.4 | |
| 7.7 | |
| (7.3) | | — | |
Merger and acquisition and initial public offering expenses | |
| 0.4 | |
| 4.5 | |
| (4.1) | | (91.0) | |
Adjusted Net Income | | $ | 44.7 | | $ | 42.0 | | $ | 2.7 | | 6.5 | % |
| | | | | | | | | | | | |
Weighted average diluted common shares outstanding (in millions) | |
| 58.3 | | | | | | | | | |
Expected vesting of non-vested restricted stock | | | 6.3 | | | | | | | | | |
Adjusted weighted average diluted common shares outstanding | |
| 64.6 | | | | | | | | | |
| |
| | |
| | | | | | | |
Adjusted EPS | | $ | 0.69 | |
| | | | | | | |
| |
| | |
| | | | | | | |
Leverage
| | Trailing Twelve Months Ended | ||||
| | December 31, | ||||
($in Millions) | | 2025 | | 2024 | ||
Net cash provided by operating activities | | $ | 268.8 | | $ | 168.2 |
Changes in prepaid expenses | |
| (0.5) | |
| 7.8 |
Changes in accounts payable and accrued expenses | |
| (46.9) | |
| (36.7) |
Provision for credit losses | |
| (2.4) | |
| (3.5) |
Foreign exchange and other income (expense) | |
| (7.7) | |
| 5.5 |
Cash interest paid | |
| 95.5 | |
| 73.0 |
Provision for income taxes | |
| 30.5 | |
| 8.7 |
Total portfolio revenue | |
| (566.4) | |
| (395.9) |
Gross collections | |
| 998.7 | |
| 584.5 |
Stock compensation | |
| (7.9) | |
| 4.5 |
Canaccede exit consideration | |
| 1.4 | |
| 7.7 |
Merger and acquisition and initial public offering expenses | |
| 10.5 | |
| 7.0 |
Adjusted Cash EBITDA (A) | | $ | 773.6 | | $ | 430.8 |
| | As of December 31, | | ||||
| | 2025 | | 2024 | | ||
Borrowings, as reported | | $ | 1,409.0 | | $ | 1,194.7 | |
Unamortized issuance costs | |
| 22.5 | |
| 13.4 | |
Unrestricted cash | |
| (23.2) | |
| (35.5) | |
Net Debt (B) | | $ | 1,408.4 | | $ | 1,172.6 | |
| | | | | | | |
Leverage (B / A) | |
| 1.82 | x |
| 2.72 | x |
10