Jefferson Capital (JCAP) investor relations material

Executive summary

• Achieved record quarterly collections of $309.9 million, up 19% year-over-year, and record revenue of $176.4 million, up 14%, driven by strong portfolio deployments and robust collection performance, with significant contributions from Bluestem and Conn's portfolios.

• Net income was $37.6 million, with adjusted net income of $44.9 million and adjusted EPS of $0.73; adjusted pre-tax income was $58.4 million and adjusted pre-tax ROE of 50.8%.

• Cash efficiency ratio reached a sector-leading 73.0%, reflecting operational improvements and strong collections.

• Estimated remaining collections (ERC) grew 18% to $3.4 billion, reflecting robust deployment activity at attractive returns.

• Quarterly dividend of $0.24 per share declared, reinforcing disciplined capital allocation.

Financial highlights

• Revenue for the quarter was $176.4 million, up 14% year-over-year, with net collections of $309.9 million, up 19% year-over-year.

• Operating expenses rose 46.8% year-over-year to $95.6 million, mainly due to increased collections activity, higher servicing expenses, and stock-based compensation.

• Adjusted cash EBITDA was $235 million, up 12% year-over-year.

• Pre-tax income was $51.1 million, with adjusted pre-tax income at $58.4 million, both down year-over-year.

• Net cash provided by operating activities was $39.6 million for the quarter.

Outlook and guidance

• Management expects continued strong collection performance and robust portfolio supply, supported by elevated consumer delinquencies, charge-offs, and forward flow agreements.

• $215.9 million of deployments contracted via forward flow, with $563 million in new investments needed globally to maintain ERC levels over the next year.

• Ample capital resources and low leverage position the company to capitalize on future opportunities.

• Court costs are expected to remain elevated due to increased inventory of suit-eligible accounts.

• Management remains focused on disciplined capital deployment and maintaining leverage within the 2.0–2.5x range.