Jefferson Capital (JCAP) Q4 2025 earnings summary

Executive summary

• Achieved record quarterly collections of $245.3 million in Q4, up 41% year-over-year, and record deployments of $381 million, up 6% from Q4 2024.

• Revenue reached a record $155 million in Q4, up 30% year-over-year, with sector-leading cash efficiency ratio of 71%.

• Bluestem portfolio purchase closed in December 2025, expected to be a meaningful contributor in 2026.

• Demonstrated strong growth since 2019: 27% revenue CAGR, 37% net operating income CAGR, and 43% net income CAGR through 2025.

• Dividend of $0.24 per share declared, payable April 2, 2026.

Financial highlights

• Q4 revenue reached $154.8 million, up 30% year-over-year; net operating income $70.6 million, up 31%.

• Adjusted EPS for Q4 was $0.69; adjusted pre-tax income was $51.1 million, up 15% year-over-year.

• Full-year 2025 revenue was $613.3 million, up 42% vs. 2024; net operating income $316.5 million, up 44%.

• Cash efficiency ratio for Q4 was 71.0%; full-year 2025 at 74.0%.

• Leverage ratio improved to 1.82x as of December 31, below target range and peers.

Outlook and guidance

• Bluestem portfolio expected to be a significant contributor to 2026 results, substituting for diminishing Conn's portfolio impact.

• Management expects continued strong supply of non-performing portfolios due to elevated consumer credit and charge-offs.

• $1,104 million of ERC expected to be collected in the next 12 months; $224.8 million of deployments contracted via forward flow.

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

• Target leverage ratio remains 2x-2.5x long-term.