MINNEAPOLIS, March 18, 2026 (GLOBE NEWSWIRE) -- Jefferson Capital, Inc. (NASDAQ: JCAP) (“Jefferson Capital”), a leading analytically driven purchaser and manager of charged-off, insolvency and active consumer accounts, today announced the appointment of Susan Atkins and James Pierce to its Board of Directors, effective March 18, 2026. Jefferson Capital also announced that Christopher Giles is stepping down from its Board of Directors, on which he has served since 2018 to focus on his other professional comm ...

An important component to better understand the state of the consumer is the current level of personal savings. During the pandemic, consumers accumulated abnormally high savings as a result of the unprecedented levels of government stimulus, which served as a financial cushion against life's unexpected events. By the end of 2022, the excess savings had been depleted. And in fact, the current level of personal savings at $831 billion is substantially lower than the long-term prepandemic average from 2013 to ...

Core Insights - Jefferson Capital, Inc. (JCAP) reported revenue of $154.8 million for the quarter ended December 2025, showing no change compared to the same period last year [1] - The company's EPS was $0.58, an increase from $0 in the year-ago quarter [1] - Revenue fell short of the Zacks Consensus Estimate of $158.49 million, resulting in a surprise of -2.33% [1] - The EPS also missed the consensus estimate of $0.71, leading to an EPS surprise of -18.31% [1] Financial Performance Metrics - Total collections for the quarter were $245.3 million, exceeding the two-analyst average estimate of $238.25 million [4] - Servicing revenue was reported at $9.06 million, slightly below the two-analyst average estimate of $9.46 million [4] - Total portfolio revenue was $144 million, which was lower than the two-analyst average estimate of $147.35 million [4] Stock Performance - Over the past month, shares of Jefferson Capital, Inc. have returned -5.9%, compared to a -2.3% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2025 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 001-42718 Jefferson Capital, Inc. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporatio ...

Financial Data and Key Metrics Changes - The company reported record collections of $245 million, an increase of 41% year-over-year [3][4] - Revenue for the quarter reached $155 million, up 30% compared to the prior year [4][17] - Adjusted EPS for the quarter was $0.69, reflecting strong financial performance [4] - The cash efficiency ratio was 71%, driven by strong collections from the Conn's portfolio purchase [4][16] - For the full year, the cash efficiency ratio was 74%, with a target leverage ratio of 2x-2.5x on a sustained basis [19][20] Business Line Data and Key Metrics Changes - Collections from the Conn's portfolio contributed $36 million for the quarter, while the Bluestem portfolio added $14 million [10] - The company achieved record deployments of $381 million, up 6% from the previous year [3][12] - Estimated remaining collections reached $3.4 billion, a 23% increase year-over-year [4][13] Market Data and Key Metrics Changes - Delinquency trends remain elevated across non-mortgage consumer asset classes, creating favorable portfolio supply trends [5][7] - Personal savings levels have decreased to $831 billion, significantly lower than pre-pandemic averages, indicating limited consumer ability to absorb financial hardships [6] - The insolvency market has seen an increase in the number of insolvencies in the U.S. and Canada, fueling a resurgence in supply of insolvency portfolios [6][7] Company Strategy and Development Direction - The company aims to solidify its leadership position as a strategic acquirer of dislocated consumer credit portfolios, with the Bluestem acquisition expected to contribute meaningfully to financial results in 2026 [4][19] - The focus remains on deploying capital to purchase portfolios at attractive risk-adjusted returns, with a disciplined approach to M&A [22] - The company has improved its operational efficiency and collection capabilities, which are expected to enhance net returns [9][15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the investment opportunity, citing favorable supply conditions and strong collection performance [5][7] - The current economic environment is viewed as a net positive for supply, with no indications of impacting expected liquidation rates [27][28] - The company anticipates continued growth in legal collections due to increased inventory of suit-eligible accounts [12][18] Other Important Information - The company completed a follow-on offering post-IPO, improving liquidity and reducing ownership concentration [3] - A quarterly dividend of $0.24 per share was declared, representing a 4.7% annualized yield [22] - The company repurchased 3 million shares for $59 million as part of a tactical strategy to support the follow-on offering [22] Q&A Session Summary Question: Thoughts on macro uncertainties affecting purchasing environment - Management indicated that incremental pressures from energy costs and modest employment deterioration are likely to impact delinquencies but not liquidation rates [27][28] Question: Trends among sellers regarding forward flow deals - Management noted that about half of deployments have historically been in forward flows, but they do not target a specific percentage [30][31] Question: Expectations for cash efficiency ratio as portfolios run off - Management expects a substitution effect with the Bluestem portfolio, maintaining a cash efficiency ratio in the high sixties excluding certain collections [36] Question: Increase in supply of charged-off accounts - Management stated that the supply of elevated levels of charged-off accounts has been ongoing and is expected to continue [47] Question: Tax rate expectations for 2026 - The expected tax rate for 2026 is projected to be around 24.5% [49] Question: Current posture on share buybacks - Management indicated that the recent share repurchase was tactical, with a focus on deploying capital for portfolio purchases [51][52] Question: Characteristics of deployments and market shifts - Management highlighted an increase in deployments in insolvencies and a consistent pattern in other asset classes [56][57] Question: Legal channel returns and scaling opportunities - Management confirmed that the volume of legal accounts aligns with underwritten expectations, with no significant uncovered inventory impacting profitability [93]

Financial Performance Highlights - The company reported record collections of $245 million, an increase of 41% year-over-year [3][4] - Revenue for the quarter reached $155 million, up 30% compared to the prior year [4][17] - Adjusted EPS for the quarter was $0.69, with adjusted pre-tax income of $51 million, reflecting a 15% year-over-year increase [4][18] - The Cash Efficiency Ratio for the quarter was 71%, driven by strong collections from the Conn's portfolio purchase [4][16] Business Line Performance - Collections from the Conn's portfolio contributed $36 million for the quarter, while the Bluestem portfolio added $14 million [10] - The company achieved record deployments of $381 million, up 6% from the previous year [3][12] - Estimated remaining collections reached $3.4 billion, a 23% increase year-over-year [4][13] Market and Economic Context - Delinquency trends remain elevated across non-mortgage consumer asset classes, creating favorable portfolio supply conditions [5][7] - Personal savings levels have decreased to $831 billion, significantly lower than pre-pandemic averages, indicating limited consumer ability to absorb financial hardships [6] - The insolvency market has seen an increase in the number of insolvencies, fueling supply for insolvency portfolios [6][7] Company Strategy and Competitive Position - The company aims to maintain a strong focus on deploying capital for portfolio purchases at attractive risk-adjusted returns [20][22] - The company has improved its operational efficiency and has a robust funding structure, positioning it well for future opportunities [9][20] - The company intends to remain disciplined and opportunistic in M&A activities while focusing on organic growth [22] Management Commentary on Future Outlook - Management expressed confidence in the investment opportunity, citing favorable trends in consumer delinquencies and charge-offs [7][8] - The company anticipates that the Bluestem portfolio will significantly contribute to financial results in 2026 [4][19] - Management noted that the current economic environment is likely to be a net positive for supply-side opportunities [27][28] Other Important Information - The company completed a follow-on offering that improved liquidity and reduced ownership concentration [3] - A quarterly dividend of $0.24 per share was declared, representing a 4.7% annualized yield [22] - The company repurchased 3 million shares as part of a tactical strategy to support the follow-on offering [22] Q&A Session Summary Question: Thoughts on macro uncertainties affecting purchasing environment - Management indicated that while energy costs and employment changes may impact delinquencies, they do not foresee significant effects on liquidation rates [27][28] Question: Trends among sellers regarding forward flow deals - Management noted that about half of deployments have historically been in forward flows, but they do not target a specific percentage [30] Question: Expected efficiency ratio trends with portfolio changes - Management expects a substitution effect as the Conn's portfolio runs off, but anticipates maintaining a strong efficiency ratio through ongoing improvements [36] Question: Insights on supply increase and return profiles - Management stated that supply levels have been stable, and return profiles remain attractive with consistent pricing [48] Question: Characteristics of deployments and market shifts - Management highlighted an increase in deployments in insolvencies and noted that their geographic and asset class diversification continues to yield attractive returns [56] Question: Legal channel performance and profitability - Management confirmed that the volume of legal accounts aligns with underwritten expectations, and the growth in legal channel activity is consistent with their forecasts [93]

Jefferson Capital (NasdaqGS:JCAP) Q4 2025 Earnings call March 12, 2026 05:00 PM ET Speaker7Good afternoon, and welcome to Jefferson Capital's fourth quarter and full year 2025 conference call. With us today are David Burton, Founder and Chief Executive Officer, and Christo Realov, Chief Financial Officer. As a reminder, this conference call is being recorded. This call may contain forward-looking statements regarding the company's plans, initiatives, and strategies, and the anticipated financial performance ...

Fourth Quarter and Full Year 2025 Financial Results March 12, 2026 © 2020 Jefferson Capital Systems, LLC © 2026 Jefferson Capital, Inc. Disclaimer Forward Looking Statements Disclaimer This presentation of Jefferson Capital, Inc. (together with its direct and indirect subsidiaries, "we", "us", "or", "JCAP", "Jefferson Capital", or the "Company") contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this presentation that d ...

Financial Performance - Record collections grew 41% to $245.3 million in Q4 2025 compared to Q4 2024[5] - Record deployments increased 6% to $380.5 million in Q4 2025 compared to Q4 2024[5] - Estimated remaining collections (ERC) rose 23% to $3.4 billion in Q4 2025[5] - Pre-tax income increased 50% to $44.1 million in Q4 2025, with net income of $37.7 million and EPS of $0.58[5] - Adjusted pre-tax income grew 15% to $51.1 million in Q4 2025[5] - Total revenues increased 30% to $154.8 million in Q4 2025 compared to Q4 2024[9] - Total revenues for the year ended December 31, 2025, reached $613,289,000, up 41.6% from $433,341,000 in 2024[27] - Net income for 2025 was $187,965,000, a 45.8% increase compared to $128,891,000 in 2024[29] - Adjusted Net Income for Q4 2025 was $44.7 million, a 6.5% increase from $42.0 million in Q4 2024[32] - Net Income increased to $37.7 million in Q4 2025, representing a 39.8% rise from $27.0 million in Q4 2024[32] - Total portfolio revenue for the trailing twelve months ended December 31, 2025, was $566.4 million, compared to $395.9 million in 2024[33] - Adjusted Cash EBITDA for 2025 was $773.6 million, significantly up from $430.8 million in 2024[33] - The company reported gross collections of $998.7 million in 2025, compared to $584.5 million in 2024[33] Expenses and Liabilities - Operating expenses rose to $294,434,000 in 2025, a 40.4% increase from $209,577,000 in 2024[27] - The company reported a provision for credit losses of $2,360,000 for the year 2025, down from $3,497,000 in 2024[27] - The total liabilities increased to $1,611,238,000 in 2025 from $1,271,754,000 in 2024, an increase of 26.7%[25] - Cash interest paid increased to $95.5 million in 2025, up from $73.0 million in 2024[33] - Stock compensation expenses rose significantly to $8.4 million in Q4 2025 from $0.5 million in Q4 2024[32] Cash and Assets - Cash and cash equivalents and restricted cash at the end of 2025 totaled $47,551,000, up from $38,243,000 in 2024, marking a 24.0% increase[29] - Total assets increased to $2,087,373,000 in 2025 from $1,654,283,000 in 2024, representing a growth of 26.0%[25] Shareholder Actions - The company repurchased $58.9 million of stock to support a follow-on equity offering[2] - The Board of Directors declared a quarterly cash dividend of $0.24 per share[14] - The company issued 58,298,923 shares of common stock as of December 31, 2025, with an additional paid-in capital of $(49,549,000)[25] Financial Ratios - Leverage ratio improved to 1.82x at December 31, 2025, down from 2.72x at December 31, 2024[18] - Leverage ratio improved to 1.82x in 2025 from 2.72x in 2024, indicating better financial stability[33] - The cash efficiency ratio for the three months ended December 31, 2025, was 71.0%, slightly down from 71.9% in the same period of 2024[31] Future Outlook - The Bluestem portfolio purchase is expected to significantly contribute to financial results in 2026[2]

Core Insights - Jefferson Capital, Inc. reported record financial results for the fourth quarter and full year 2025, with significant growth in collections, deployments, and estimated remaining collections (ERC) [1][2][6]. Financial Performance - Fourth quarter collections increased by 41% to $245.3 million compared to $174.3 million in the same quarter of 2024 [6][12]. - Deployments rose by 6% to $380.5 million from $357.9 million in the fourth quarter of 2024 [6][13]. - ERC grew by 23% to $3.4 billion, reflecting strong performance across all key operating aspects [6][8]. - Total revenue for the fourth quarter increased by 30% to $154.8 million, driven by strong deployments and higher net yields [10][6]. - Pre-tax income surged by 50% to $44.1 million, with net income reaching $37.7 million and earnings per share (EPS) of $0.58 [1][6]. Adjusted Financial Metrics - Adjusted pre-tax income for the fourth quarter increased by 15% to $51.1 million, with adjusted net income of $44.7 million and adjusted EPS of $0.69 [1][6][33]. - The cash efficiency ratio stood at 71.0%, indicating strong operational efficiency [6][31]. Geographic Performance - Collections in the United States rose by 41.4% to $186.4 million, while collections in Canada increased by 40.4% to $30.6 million [5][7]. - The company also reported significant growth in collections from Latin America, which increased by 69.5% [7]. Strategic Developments - The acquisition of the Bluestem portfolio, completed on December 4, 2025, is expected to enhance the company's leadership position in acquiring dislocated consumer credit assets [2]. - A follow-on equity offering was executed, reducing J.C. Flowers' ownership to 53% and increasing the company's liquidity [2]. Dividend Declaration - The Board of Directors declared a quarterly cash dividend of $0.24 per share, payable on April 2, 2026, to shareholders of record as of March 24, 2026 [15].