Jefferson Capital (JCAP) grows collections and ERC but Q2 2026 net income falls
Rhea-AI Filing Summary
Jefferson Capital, Inc. reported strong top-line growth for the quarter ended June 30, 2026. Total collections rose 17.7% year over year to $300.9 million, while deployments increased 21.5% to $152.2 million. Estimated Remaining Collections grew 17.9% to $3.36 billion, reflecting expansion of future cash flow potential across the United States, Canada, the United Kingdom and Latin America.
Total revenues for the quarter were $177.5 million, up from $152.7 million a year earlier. Pre-tax income was $53.3 million and net income was $41.3 million, with diluted EPS of $0.67; on a non-GAAP basis, adjusted pre-tax income was $59.3 million, adjusted net income $47.3 million, and adjusted EPS $0.77. For the first six months of 2026, net cash provided by operating activities was $82.9 million and total assets were $2.08 billion with a leverage ratio of 1.71x.
The board declared a quarterly cash dividend of $0.24 per share, payable September 3, 2026 to shareholders of record on August 24, 2026. Management highlights a favorable investment environment, particularly in auto finance, and continues to use several non-GAAP metrics such as Adjusted Net Income, Adjusted EPS, Cash Efficiency Ratio and Leverage to evaluate performance.
Positive
- Total collections grew 17.7% to $300.9M year over year in Q2 2026, indicating increased recovery performance across all geographies.
- Estimated Remaining Collections increased 17.9% to $3.36B, expanding the future cash flow base of purchased portfolios.
- Total revenues rose to $177.5M for Q2 2026, up from $152.7M in Q2 2025, reflecting portfolio and servicing growth.
- Leverage ratio improved to 1.71x from 1.76x over the trailing twelve months, suggesting slightly stronger balance sheet positioning.
- Quarterly cash dividend of $0.24 per share was declared, continuing cash returns to shareholders.
Negative
- Quarterly net income declined 13.4% to $41.3M in Q2 2026 compared with $47.7M a year earlier, as disclosed by the company.
- Six-month net income fell to $78.9M from $111.9M in the prior-year period, indicating weaker profitability year to date.
- Total operating expenses increased to $95.4M in Q2 2026 from $65.5M in Q2 2025, pressuring margins despite revenue growth.
- Interest expense rose to $60.9M for the first six months of 2026 from $50.7M a year earlier, increasing financing costs.
- Cash and restricted cash ended at $26.0M as of June 30, 2026, down from $55.5M at the prior year-end, reducing on-balance liquidity.
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FAQ
How did Jefferson Capital (JCAP) perform financially in Q2 2026?
What were Jefferson Capital (JCAP)'s collections and ERC in Q2 2026?
What dividend did Jefferson Capital (JCAP) declare for Q2 2026?
How did Jefferson Capital (JCAP)'s profitability change versus Q2 2025?
What are Jefferson Capital (JCAP)'s key non-GAAP metrics this quarter?
What is Jefferson Capital (JCAP)'s leverage position as of June 30, 2026?
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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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(Former name or former address, if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Securities registered pursuant to Section 12(b) of the Act:
Title of each class: |
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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 August 13, 2026, Jefferson Capital, Inc. (the “Company”) announced its financial results for the quarter ended June 30, 2026. 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 August 13, 2026 |
104 | Cover page Interactive Data File (embedded within the Inline XBRL document) |
2
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: August 13, 2026 | |
By: /s/ Christo Realov | |
Name: Christo Realov | |
Title: Chief Financial Officer |
3
Exhibit 99.1
Jefferson Capital Reports Second Quarter 2026 Results
Collections Grow 18% to $300.9 Million and Deployments grow 21% to $152.2 Million
Estimated Remaining Collections (“ERC”) up 18% to $3.4 Billion
Pre-tax Income of $53.3 Million with Net Income of $41.3 Million and EPS of $0.67
Adjusted Pre-tax Income of $59.3 Million with Adjusted Net Income of $47.3 Million and Adjusted EPS of $0.77
Board of Directors Declares Quarterly Cash Dividend of $0.24 per Share
MINNEAPOLIS, August 13, 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 second quarter 2026 financial results.
“Jefferson Capital delivered excellent performance for the quarter with consistent momentum across all key aspects of the business,” said David Burton, Chairman and Chief Executive Officer. “We continue to execute well on our differentiated strategy and remain well positioned to drive shareholder value in the near and long term. ”
“The investment environment remains favorable. We are particularly focused on auto finance where record high balances and credit quality headwinds continue to drive growing portfolio supply. We are one of the very few industry participants which can offer solutions across the spectrum of performing, charged-off and insolvency auto finance portfolios for both secured and unsecured accounts.”
Second Quarter 2026 Highlights (vs. Second Quarter 2025)
| ● | Collections grew 18% to $300.9 million |
| ● | Deployments up 21% to $152.2 million |
| ● | ERC rose 18% to $3.4 billion |
| ● | Strong revenue growth of 16% to a record $177.5 million |
| ● | Sector-leading Cash Efficiency Ratio of 72.2% |
| ● | Leverage ratio* improved to 1.71x as compared to 1.76x |
| ● | Pre-tax Income of $53.3 million with Net Income of $41.3 million and EPS of $0.67 |
| ● | Adjusted Pre-tax Income* of $59.3 million with Adjusted Net Income* of $47.3 million and Adjusted EPS of $0.77 |
Collections
The following table summarizes total collections by geographic area:
| | Three Months Ended | | | | | | | ||||
| | June 30, | | Increase | | % | | |||||
(in Millions) | | 2026 | | 2025 | | (Decrease) | | Change | | |||
United States | | $ | 235.4 | | $ | 202.4 | | $ | 33.0 | | 16.3 | % |
Canada | | | 35.3 | | | 30.8 | | | 4.5 | | 14.6 | % |
United Kingdom | | | 12.2 | | | 10.7 | | | 1.5 | | 14.0 | % |
Latin America | | | 18.0 | | | 11.8 | | | 6.2 | | 52.5 | % |
Total Collections | | $ | 300.9 | | $ | 255.7 | | $ | 45.2 | | 17.7 | % |
| ● | Collections from purchased receivables increased 17.7% or $45.2 million to $300.9 million during the second quarter of 2026 versus $255.7 million during the same quarter in 2025 |
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| ● | Collections in the United States included $41.0 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:
| | June 30, | | Increase | | % | | |||||
(in Millions) | | 2026 | | 2025 | | (Decrease) | | Change | | |||
United States | | $ | 2,422.5 | | $ | 2,101.7 | | $ | 320.8 | | 15.3 | % |
Canada | | | 420.5 | | | 348.5 | | | 72.0 | | 20.7 | % |
United Kingdom | | | 197.2 | | | 158.4 | | | 38.8 | | 24.5 | % |
Latin America | | | 324.0 | | | 244.3 | | | 79.7 | | 32.6 | % |
Total | | $ | 3,364.2 | | $ | 2,852.9 | | $ | 511.3 | | 17.9 | % |
| ● | ERC in the United States included $218.2 million from the Bluestem portfolio purchase which closed in the fourth quarter 2025 |
Deployments
The following table summarizes the total deployments by geographic area:
| | Three Months Ended | | | | | | | ||||
| | June 30, | | Increase | | % | | |||||
(in Millions) | | 2026 | | 2025 | | (Decrease) | | Change | | |||
United States | | $ | 93.1 | | $ | 80.6 | | $ | 12.5 | | 15.5 | % |
Canada | | | 34.2 | | | 26.6 | | | 7.6 | | 28.6 | % |
United Kingdom | | | 6.9 | | | 4.7 | | | 2.2 | | 46.8 | % |
Latin America | | | 18.0 | | | 13.4 | | | 4.6 | | 34.3 | % |
Total Purchases | | $ | 152.2 | | $ | 125.3 | | $ | 26.9 | | 21.5 | % |
| ● | The Company invested $152.2 million during the quarter to acquire receivable portfolios, up 21.5% compared to $125.3 million in the second quarter 2025 |
| ● | As of June 30, 2026, the Company had $480.7 million in committed forward flows |
Revenues
| ● | Total revenues increased $24.8 million for the quarter, or 16.2%, to $177.5 million compared to $152.7 million for the second quarter 2025. The growth was primarily the result of strong deployments in prior periods |
Operating Expenses
| ● | Total operating expenses increased $29.9 million, or 45.6% to $95.4 million compared to $65.5 million for the second quarter 2025. The increase was primarily due to a $21.3 million rise in servicing expenses driven by increased collections, including $9.3 million in higher court costs from increased legal channel volume, and $3.9 million related to the Bluestem portfolio purchase as well as $8.3 million in non-cash stock-based compensation expense |
| ● | For the second quarter 2026, the Company recognized portfolio revenue of $11.0 million and net operating income of $7.1 million related to the Bluestem portfolio purchase |
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Leverage Ratio, Liquidity and Capital Resources
| ● | Leverage ratio* improved to 1.71x at June 30, 2026 compared to 1.76x at June 30, 2025 as a result of strong growth in portfolio cashflow |
| ● | On April 22, 2026 Jefferson Capital completed an upsize of its Revolving Credit Facility (“RCF”) increasing aggregate commitments to $1.15 billion. |
| ● | At June 30, 2026, the Company had $226 million drawn under the RCF |
| ● | On August 13, 2026, the Company deposited $300 million with the bond trustee for the repayment of the 2026 notes expected to be repaid on August 17, 2026 |
Dividend
The Board of Directors declared a quarterly cash dividend of $0.24 per share on its outstanding common stock, payable on September 3, 2026, to shareholders of record as of the close of business on August 24, 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 second quarter 2026 financial results is scheduled for today, August 13, 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.
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, Cash Efficiency Ratio, Adjusted Operating Expenses 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
3
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 and strength of our business model, the favorability of the investment environment, [use of our share repurchase program,] 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 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 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
4
Jefferson Capital, Inc.
Combined and Condensed Consolidated Balance Sheets
(Unaudited, Amounts in Thousands)
| | As of June 30, | | As of December 31, | | ||
| | 2026 | | 2025 | | ||
Assets | | | | | | | |
Cash and cash equivalents | | $ | 20,406 | | $ | 23,231 | |
Restricted cash | | | 5,641 | | | 24,320 | |
Accounts receivable | | | 16,901 | | | 12,245 | |
Other assets | | | 14,281 | | | 16,273 | |
Investments in receivables, net | | | 1,946,819 | | | 1,928,742 | |
Credit card receivables (net of allowance for | | | 15,042 | | | 16,312 | |
credit losses of $1,598 and $1,784) | | | | | | | |
Property, plant and equipment, net | | | 1,711 | | | 1,695 | |
Other intangible assets, net | | | 5,246 | | | 6,541 | |
Goodwill | | | 57,761 | | | 58,014 | |
Total Assets | | $ | 2,083,808 | | $ | 2,087,373 | |
| | | | | | | |
Liabilities | | | | | | | |
Accounts payable and accrued expenses | | $ | 73,285 | | $ | 95,208 | |
Other liabilities | | | 3,777 | | | 4,179 | |
Current tax liabilities | | | 1,074 | | | 855 | |
Deferred tax liabilities | | | 123,688 | | | 101,957 | |
Notes payable, net | | | 1,405,794 | | | 1,409,039 | |
Total Liabilities | | $ | 1,607,618 | | $ | 1,611,238 | |
| | | | | | | |
Stockholders' Equity | | | | | | | |
Common Stock par value $0.0001 per share; 330,000,000 shares authorized as of June 30, 2026 and December 31, 2025 and 57,435,586 and 58,298,923 shares issued and outstanding as of June 30, 2026 and December 31, 2025 | | $ | 6 | | $ | 6 | |
Additional paid-in capital | | | (32,692) | | | (49,549) | |
Retained earnings | | | 513,057 | | | 522,632 | |
Accumulated other comprehensive income (loss) | | | (4,181) | | | 3,046 | |
Total stockholders' equity | | $ | 476,190 | | $ | 476,135 | |
Total Liabilities and Stockholders' Equity | | $ | 2,083,808 | | $ | 2,087,373 | |
5
Jefferson Capital, Inc.
Combined and Condensed Consolidated Statements of Operations and Comprehensive Income
(Unaudited in Thousands, except Per Share amounts)
| | | | | | | | | | |||
| | For the Three Months Ended June 30, | | For the Six Months Ended June 30, | ||||||||
| | 2026 | | 2025 | | 2026 | | 2025 | ||||
Revenues | | | | | | | | | | | | |
Total portfolio income | | $ | 156,253 | | $ | 138,877 | | $ | 313,859 | | $ | 277,571 |
Changes in recoveries | | | 9,010 | | | 1,556 | | | 16,067 | | | 5,176 |
Total portfolio revenue | | | 165,263 | | | 140,433 | | | 329,926 | | | 282,747 |
Credit card revenue | | | 1,623 | | | 1,798 | | | 3,358 | | | 3,696 |
Servicing revenue | | | 10,654 | | | 10,477 | | | 20,695 | | | 21,208 |
Total Revenues | | | 177,540 | | | 152,708 | | | 353,979 | | | 307,651 |
Provision for credit losses | | | 757 | | | 560 | | | 1,380 | | | 1,101 |
Operating Expenses | | | | | | | | | | | | |
Salaries and benefits | | | 21,880 | | | 6,254 | | | 44,255 | | | 20,276 |
Servicing expenses | | | 64,822 | | | 43,546 | | | 130,400 | | | 86,339 |
Depreciation and amortization | | | 844 | | | 1,250 | | | 1,716 | | | 2,854 |
Professional fees | | | 3,053 | | | 9,444 | | | 5,334 | | | 11,611 |
Other selling, general and administrative | | | 4,751 | | | 5,013 | | | 9,275 | | | 9,562 |
Total Operating Expenses | | | 95,350 | | | 65,507 | | | 190,980 | | | 130,642 |
Net Operating Income | | | 81,433 | | | 86,641 | | | 161,619 | | | 175,908 |
| | | | | | | | | | | | |
Other Income (Expense) | | | | | | | | | | | | |
Interest expense | | | (30,370) | | | (25,824) | | | (60,948) | | | (50,717) |
Foreign exchange and other income (expense) | | | 2,270 | | | 1,089 | | | 3,718 | | | 3,620 |
Total other expense | | | (28,100) | | | (24,735) | | | (57,230) | | | (47,097) |
Income Before Income Taxes | | | 53,333 | | | 61,906 | | | 104,389 | | | 128,811 |
Provision for income taxes | | | (12,037) | | | (14,255) | | | (25,460) | | | (16,935) |
Net Income | | | 41,296 | | | 47,651 | | | 78,929 | | | 111,876 |
Foreign currency translation gain / (loss) | | | (1,525) | | | 14,432 | | | (7,226) | | | 18,316 |
Comprehensive Income | | $ | 39,771 | | $ | 62,083 | | $ | 71,703 | | $ | 130,192 |
| | | | | | | | | | | | |
Earnings per share | | | | | | | | | | | | |
Basic | | $ | 0.67 | | $ | 18.61 | | $ | 1.28 | | $ | 86.88 |
Diluted | | | 0.67 | | | 16.76 | | | 1.28 | | | 78.26 |
Weighted average common shares outstanding | | | | | | | | | | | | |
Basic | | | 55,515 | | | 2,561 | | | 55,552 | | | 1,288 |
Diluted | | | 55,519 | | | 2,843 | | | 55,554 | | | 1,430 |
| | | | | | | | | | | | |
6
Jefferson Capital, Inc.
Combined and Condensed Consolidated Statements of Cash Flows
(Unaudited, in Thousands)
| | | | ||||
| | For the Six Months Ended June 30, | | ||||
| | 2026 | | 2025 | | ||
Cash flows from operating activities | | | | | | | |
Net income | | $ | 78,929 | | $ | 111,876 | |
Adjustments to reconcile net income to net cash and cash equivalents provided by operating activities: | | | | | | | |
Depreciation and amortization | | | 1,716 | | | 2,854 | |
Amortization of debt issuance costs | | | 3,337 | | | 2,494 | |
Provision for credit losses | | | 1,380 | | | 1,101 | |
Change in Recoveries | | | (16,067) | | | — | |
Stock-based compensation | | | 16,857 | | | — | |
Deferred income tax | | | 21,893 | | | 12,386 | |
Changes in assets and liabilities: | | | | | | | |
Other assets | | | 2,032 | | | (2,812) | |
Accounts receivable | | | (4,745) | | | (3,175) | |
Accounts payable and accrued expenses | | | (22,438) | | | 5,841 | |
Net cash provided by operating activities | | | 82,894 | | | 130,565 | |
Cash flows from investing activities | | | | | | | |
Purchases of receivables, net | | | (301,947) | | | (300,501) | |
Purchases of credit card receivables | | | (11,890) | | | (13,138) | |
Collections applied to investments in receivables, net | | | 296,889 | | | 233,761 | |
Collections applied to credit card receivables | | | 11,501 | | | 13,479 | |
Purchases of property and equipment, net | | | (531) | | | (539) | |
Net cash used in investing activities | | | (5,978) | | | (66,938) | |
Cash flow from financing activities | | | | | | | |
Proceeds from notes payable | | | 412,452 | | | 681,790 | |
Payments on notes payable | | | (417,798) | | | (694,872) | |
Payment of debt issuance costs | | | (935) | | | (7,605) | |
Dividends paid to stockholders | | | (29,592) | | | (32,422) | |
Proceeds of common stock | | | — | | | 10,000 | |
Repurchase of common stock | | | (58,912) | | | — | |
Net used in financing activities | | | (94,785) | | | (43,109) | |
Exchange rate effects on cash balances held in foreign currencies | | | (3,635) | | | (3,261) | |
Net decrease in cash and cash equivalents and restricted cash | | | (21,504) | | | 17,257 | |
Cash and cash equivalents and restricted cash, beginning of period | | | 47,551 | | | 38,243 | |
Cash and cash equivalents and restricted cash, end of period | | $ | 26,047 | | $ | 55,500 | |
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Jefferson Capital, Inc.
Supplemental Financial Information
Reconciliation of Non-GAAP Metrics
Cash Efficiency Ratio
| | Three Months Ended |
| ||||
| | June 30, |
| ||||
($in Millions) | | 2026 | | 2025 |
| ||
Collections | | $ | 300.9 | | $ | 255.7 | |
Credit card revenue | |
| 1.6 | |
| 1.8 | |
Servicing revenue | |
| 10.7 | |
| 10.5 | |
Cash Receipts (A) | | $ | 313.2 | | $ | 268.0 | |
| | | | | | | |
Operating Expenses | | $ | 95.4 | | $ | 65.5 | |
Stock compensation | |
| (8.3) | |
| 8.3 | |
Merger and acquisition and initial public offering related expenses | |
| — | |
| (9.1) | |
Adjusted Operating Expenses (B) | | $ | 87.1 | | $ | 64.7 | |
| | | | | | | |
Cash Efficiency Ratio (A-B) / A | |
| 72.2 | % |
| 75.9 | % |
Adjusted Pre-tax Income
| | Three Months Ended | ||||
| | June 30, | ||||
($in Millions) | | 2026 | | 2025 | ||
Pre-tax Income | | $ | 53.3 | | $ | 61.9 |
Foreign exchange and other income (expense) | |
| (2.3) | |
| (1.1) |
Stock Compensation | |
| 8.3 | |
| (8.3) |
Merger and acquisition and initial public offering expenses | |
| — | |
| 9.1 |
Adjusted Pre-tax Income | | $ | 59.3 | | $ | 61.6 |
8
Jefferson Capital, Inc.
Supplemental Financial Information
Reconciliation of Non-GAAP Metrics (Continued)
Adjusted Net Income and Adjusted EPS
| | Three Months Ended | |
| Increase | | % | | ||||
| | June 30, | |
| (Decrease) | | Change | | ||||
(in Millions, Except Adjusted EPS amounts) | | 2026 | | 2025 | |
| | | | | ||
Net Income | | $ | 41.3 | | $ | 47.7 | | $ | (6.4) | | (13.4) | % |
Foreign exchange and other income (expense) | |
| (2.3) | |
| (1.1) | |
| (1.2) | | 108.4 | % |
Stock compensation | |
| 8.3 | |
| (8.3) | |
| 16.6 | | (200.0) | % |
Merger and acquisition and initial public offering expenses | |
| — | |
| 9.1 | |
| (9.1) | | (100.0) | % |
Adjusted Net Income | | $ | 47.3 | | $ | 47.4 | | $ | (0.1) | | (0.2) | % |
| | | | | | | | | | | | |
Weighted average diluted common shares outstanding (in millions) | |
| 57.4 | | | | | | | | | |
Expected vesting of non-vested restricted stock | | | 4.2 | | | | | | | | | |
Adjusted weighted average diluted common shares outstanding | |
| 61.6 | | | | | | | | | |
| |
| | |
| | | | | | | |
Adjusted EPS | | $ | 0.77 | |
| | | | | | | |
| |
| | |
| | | | | | | |
Leverage Ratio
| | Trailing Twelve Months Ended | ||||
| | June 30, | ||||
($in Millions) | | 2026 | | 2025 | ||
Net cash provided by operating activities | | $ | 221.2 | | $ | 295.1 |
Changes in prepaid expenses | |
| (3.8) | |
| 11.1 |
Changes in accounts payable and accrued expenses | |
| (28.2) | |
| (118.7) |
Changes in recoveries | | | 16.1 | | | — |
Provision for credit losses | |
| (2.6) | |
| (2.8) |
Foreign exchange and other income (expense) | |
| (7.8) | |
| (0.8) |
Cash interest paid | |
| 104.9 | |
| 87.8 |
Provision for income taxes | |
| 39.0 | |
| 22.0 |
Total portfolio revenue | |
| (613.6) | |
| (492.6) |
Gross collections | |
| 1,092.9 | |
| 836.0 |
Stock compensation | |
| — | |
| (5.4) |
Merger and acquisition and initial public offering expenses | |
| 3.5 | |
| 22.3 |
Adjusted Cash EBITDA (A) | | $ | 821.6 | | $ | 654.0 |
| | June 30, | | ||||
| | 2026 | | 2025 | | ||
Borrowings, as reported | | $ | 1,405.8 | | $ | 1,181.5 | |
Unamortized issuance costs | |
| 20.1 | |
| 18.5 | |
Unrestricted cash | |
| (20.4) | |
| (51.7) | |
Net Debt (B) | | $ | 1,405.5 | | $ | 1,148.3 | |
| | | | | | | |
Leverage Ratio (B / A) | |
| 1.71 | x |
| 1.76 | x |
9