Jefferson Capital Reports Second Quarter 2025 Results

Financial Performance - Revenue increased by 47% to $152.7 million compared to $103.8 million in the second quarter of 2024 [9][5] - Collections grew by 85% to $255.7 million, with significant contributions from the United States, which saw a 107.2% increase [4][6] - Estimated Remaining Collections (ERC) rose by 31% to a record $2.9 billion [5][6] - Pre-tax income increased by 82% to $62.0 million, while net income rose by 48% to $47.7 million [5][10] Operational Efficiency - The company achieved a Cash Efficiency Ratio of 75.9%, an improvement of 638 basis points from the previous year [5][30] - Adjusted pre-tax income increased by 55% to $61.7 million [5][32] - Operating expenses rose by 37.3% to $65.5 million, primarily due to increased servicing expenses [10][5] Capital Management - The Board of Directors declared a quarterly cash dividend of $0.24 per share [12][14] - The company invested $125.3 million in acquiring receivable portfolios, a decrease from $140.5 million in the same quarter of 2024 [12][5] - Leverage improved to 1.76x from 2.47x year-over-year, reflecting strong portfolio cash flow growth [13][5] Market Position and Strategy - The investment environment is favorable, characterized by high consumer credit delinquencies and charge-offs, which support portfolio supply [2] - The company is well-positioned with low leverage and ample capital resources to capitalize on upcoming opportunities [2][5] - The CEO highlighted the strong collections growth and record ERC as indicators of the company's competitive advantage [2][5]