Jefferson Capital, Inc. · NASDAQ:JCAP
Jefferson Capital — Q2 2025 Earnings Presentation
15 slides from Jefferson Capital's earnings presentation, Aug 14, 2025
Slide 1: Second Quarter 2025 Financial Results
Second Quarter 2025 Financial Results August 14, 2025 © 2020 © 2025 Jefferson Jefferson Capital Capital, Systems, Inc. LLC
Slide 2: Disclaimer
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 Litigat
Slide 3: 2Q'25 Financial Performance Overview
2Q’25 Financial Performance Overview ✓ Strong growth in collections driven by 2023 and 2024 deployments $255.7mm Up 85% vs 2Q’24 ✓ ERC reaches new record propelled by deployments at attractive returns $2.9bn ERC Up 31% vs 2Q’24 ✓ Strong revenue growth continues $152.7mm Up 47% vs 2Q’24 ✓ Relentless
Slide 4: Macroeconomic Backdrop Remains Favorable
Macroeconomic Backdrop Remains Favorable Normalizing charge-offs drive strong supply of non-performing portfolios, while portfolio liquidation rates are supported by continued low unemployment Strong Supply Driven by Normalization of Credit Quality Trends 90+ Day Delinquency Balances (excl. Student
Slide 5: 2Q'25 Operating Performance Highlights
2Q’25 Operating Performance Highlights Collections Observations ($ in millions) ▪ Collections remain at near record levels propelled by strong deployments in 2023 and 2024 o Continued pronounced impact of Conn’s portfolio given large portion of paying accounts and short duration of the assets • $65.
Slide 6: 2Q'25 Estimated Remaining Collections
2Q’25 Estimated Remaining Collections ERC by Geography (1) Observations ($ in millions) ▪ Deployment momentum pushes ERC to a new record ▪ ERC well diversified geographically and between lines of business o U.S. Distressed ERC includes $226.5 mm related to the Conn’s portfolio purchase $2,853 mm ▪ E
Slide 7: Best-in-Class Operating Efficiency Drives Strong Profitability
Best-in-Class Operating Efficiency Drives Strong Profitability Cash Efficiency Ratio(1) Observations ▪ Relentless focus on operating efficiency core to the JCAP return proposition o Own high value-add aspects of the purchasing and collection process that create barriers to entry and competitive adva
Slide 8: Detailed Financial Performance and Comparison vs. 2Q'24
Detailed Financial Performance and Comparison vs. 2Q’24 Key Financial Metrics Observations ▪ Revenue growth continues to outpace growth in ($ in millions, except EPS) Q2’25 Vs. Q2’24 operating expenses creating attractive bottom line lift Revenues $ 152.7 47% ▪ Strong servicing revenue growth (up 48
Slide 9: 2Q'25 Leverage and Funding Structure Overview
2Q’25 Leverage and Funding Structure Overview Net Debt / Adjusted Cash EBITDA(1) Observations ▪ JCAP seeks to operate the business long term within a range of 2.0 - 2.5x Net Debt / Adjusted Cash EBITDA o Leverage uptick at the end of 4Q’24 related to funding of the Conn’s portfolio purchase o Ratio
Slide 10: Capital Allocation Framework
Capital Allocation Framework • Continue to deploy capital at attractive risk adjusted returns Portfolio • Fourth quarter typically offers an elevated level of deployment Growth opportunities • Maintain leverage in the 2.0-2.5x range on a sustained basis • Quarterly dividend of $0.24 per share, payab
Slide 11: Appendix
Tab Appendix © 2020 © 2025 Jefferson Jefferson Capital Capital, Systems, Inc. LLC
Slide 12: Calculation of Quarterly Cash Efficiency Ratio
Calculation of Quarterly Cash Efficiency Ratio ($ in Millions) Three Months Ended Q2'25 Jun'30 Sep'30 Dec'31 Mar'31 Jun'30 2024 2024 2024 2025 2025 Collections $ 137.9 $ 145.1 $ 174.3 $ 260.9 $ 255.7 Credit card revenue 2.1 2.1 1.9 1.9 1.8 Servicing revenue 7.1 7.6 8.0 10.7 10.5 Cash Receipts (A) $
Slide 13: Reconciliation of Adjusted Pre-tax Income and Calculation of Adjusted Pre-tax ROAE
Reconciliation of Adjusted Pre-tax Income and Calculation of Adjusted Pre-tax ROAE ($ in Millions) Three Months Ended Mar'31 Jun'30 Sep'30 Dec'31 Mar'31 Jun'30 2024 2024 2024 2024 2025 2025 Pre-tax income $ 34.1 $ 39.2 $ 29.5 $ 67.0 $ 62.0 Foreign exchange and other income (expense) 2.8 0.5 2.3 (2.5
Slide 14: Reconciliation of Pro Forma Adjusted EPS
Reconciliation of Pro Forma Adjusted EPS ($ in Thousands, except EPS) For the Three Months Ended June 30, Pro Forma As Reported Adjustments(1) Adjusted Net income $ 47,651 $ — $ 47,651 Shares: Weighted-average basic common shares outstanding 2,561 55,705 58,266 Weighted-average diluted common shares
Slide 15: Calculation of Quarterly Leverage
Calculation of Quarterly Leverage ($ in Millions) Trailing Twelve Months Ended Jun'30 Sep'30 Dec'31 Mar'31 Jun'30 2024 2024 2024 2025 2025 Net cash provided by operating activities $ 143.9 $ 125.6 $ 168.2 $ 184.5 $ 295.1 Changes in prepaid expenses 1.7 20.7 7.8 13.0 11.1 Changes in accounts payable