Jefferson Capital Reports Fourth Quarter and Full Year 2025 Results

About this update from Jefferson Capital, Inc.

Record Quarterly Collections Grow 41% to $245.3 Million and Record Deployments Grow 6% to $380.5 Million Fourth Quarter Pre-tax Income up 50% to $44.1 Million with Net Income of $37.7 Million and EPS of $0.58 Fourth Quarter Adjusted Pre-tax Income up 15% to $51.1 Million with Adjusted Net Income of $44.7 Million and Adjusted EPS of $0.69 Board of Directors Declares Quarterly Cash Dividend of $0.24 per Share MINNEAPOLIS , March 12, 2026 (GLOBE NEWSWIRE) -- Jefferson Capital, Inc. (“Jefferson Capital”) , a leading analytically driven purchaser and manager of charged-off, insolvency and active consumer accounts, today announced its fourth quarter and full year 2025 financial results. “We finished the year with record collections, deployments and estimated remaining collections, or ERC - exceptional performance across all key operating aspects of the business,” said David Burton , Chairman and Chief Executive Officer. “We feel confident in our momentum going into 2026 as we continue to focus on driving profitable growth and maximizing shareholder value.” “The Bluestem portfolio purchase closed on December 4th , and we believe the transaction solidifies our leadership position as a strategic acquirer of a wide spectrum of dislocated consumer credit assets. We are pleased with portfolio performance to date and expect Bluestem to be a meaningful contributor to our financial results in 2026.” “Following quarter end, we executed a follow-on equity offering, which reduced the ownership of J.C. Flowers to 53% and substantially increased our float and liquidity. The company repurchased $58.9 million of stock to support that transaction.” Fourth Quarter 2025 Highlights (vs. Fourth Quarter 2024) Record collections grew 41% to $245.3 million Record deployments up 6% to $380.5 million Record ERC rose 23% reaching $3.4 billion Record revenue up 30% to $154.8 million Sector-leading Cash Efficiency Ratio of 71.0% Leverage ratio* improved to 1.82x as compared to 2.72x Pre-tax Income up 50% to $44.1 million with Net Income of $37.7 million and EPS of $0.58 Adjusted Pre-tax Income* increased 15% to $51.1 million Adjusted Net Income* of $44.7 million , and Adjusted EPS of $0.69 Full Year 2025 Highlights (vs. Full Year 2024) Collections grew 71% to $998.7 million Deployments up 15% to $832.1 million Strong revenue growth of 42% to $613.3 million Sector-leading Cash Efficiency Ratio of 74.0% Net Operating Income up 44% to $316.5 million Pre-tax Income up 59% to $218.4 million Adjusted Pre-tax Income* up 44% to $233.1 million Collections The following table summarizes total collections by geographic area: Three Months Ended December 31 , Increase % (in Millions) 2025 2024 (Decrease) Change United States $ 186.4 $ 131.8 $ 54.6 41.4 % Canada 30.6 21.8 8.8 40.4 % United Kingdom 10.5 10.2 0.3 2.9 % Latin America 17.8 10.5 7.3 69.5 % Total Collections $ 245.3 $ 174.3 $ 71.0 40.7 % Collections from purchased receivables increased 40.7% or $70.9 million to $245.3 million during the fourth quarter of 2025 versus $174 .3 million during the same quarter in 2024 Collections in the United States included $36.3 million from the Conn’s portfolio purchase and $14.3 million from the Bluestem portfolio purchase which closed in the fourth quarter of 2025 Estimated Remaining Collections The following table summarizes total ERC by geographic area: December 31 , Increase % (in Millions) 2025 2024 (Decrease) Change United States $ 2,530.7 $ 2,114.0 $ 416.7 19.7 % Canada 392.2 266.1 126.0 47.4 % United Kingdom 190.3 151.8 38.5 25.3 % Latin America 266.7 212.6 54.1 25.5 % Total $ 3,379.8 $ 2,744.5 $ 635.3 23.1 % ERC in the United States included $139.9 million from the Conn’s portfolio purchase and $295.6 million from the Bluestem portfolio purchase which closed December 4, 2025 Deployments The following table summarizes the total deployments by geographic area: Three Months Ended December 31 , Increase % (in Millions) 2025 2024 (Decrease) Change United States $ 317.4 $ 321.6 $ (4.2 ) (1.3 )% Canada 32.2 20.6 11.6 56.6 % United Kingdom 21.3 6.7 14.6 217.1 % Latin America 9.6 9.0 0.6 6.9 % Total Purchases $ 380.5 $ 357.9 $ 22.6 6.3 % The Company invested $380.5 million during the quarter to acquire receivable portfolios, up 6.3% compared to $357 .9 million in the fourth quarter 2024 $274.5 million of deployments locked in through forward flows at year end of which $224.8 million are for the next twelve months Revenues Total revenues increased $35.8 million for the quarter, or 30.1%, to $154.8 million compared to $119.0 million for the fourth quarter 2024. The growth is primarily a result of strong deployments in prior periods and higher net yields. Operating Expenses Total operating expenses increased $19.2 million , or 29.8% to $83.6 million compared to $64.4 million for the fourth quarter 2024 primarily due to increases of $10.0 million in servicing expenses due to increased collections, $8.2 million in court costs due to increased legal channel volume as well as $8.8 million in salaries and benefits driven by $8.4 million in non-cash stock-based compensation expense For the fourth quarter 2025, the Company recognized portfolio revenue of $15.5 million , servicing revenue of $1.3 million and net operating income of $10.7 million related to the Conn’s portfolio purchase For the fourth quarter 2025, the Company recognized portfolio revenue of $5.4 million and net operating income of $2.5 million related to the Bluestem portfolio purchase Leverage, Liquidity and Capital Resources Leverage* improved to 1.82x at December 31, 2025 compared to 2.72x at December 31, 2024 as a result of strong growth in portfolio cashflow On October 27, 2025 Jefferson Capital completed an amendment of its Revolving Credit Facility (“RCF”) achieving a number of important funding structure objectives: Increased commitments by $175 million to an aggregate amount of $1 billion Extended maturity to October 27, 2030 Reduced pricing by 50 bps across the pricing grid, eliminated any credit spread adjustments and removed the SOFR floor Reduced the non-use fee rate for unutilized commitments by 5 bps Implemented a handful of ‘housekeeping’ borrower-friendly changes to reflect public company status At December 31, 2025 , the Company had $232 million drawn under the RCF The $300 million 2026 maturity was pre-funded with a $500 million unsecured debt offering in May 2025 , which paid down the RCF. The company has segregated $300 million of capacity to repay the maturity in May 2026 Dividend The Board of Directors declared a quarterly cash dividend of $0.24 per share on its outstanding common stock, payable on April 2, 2026 , to shareholders of record as of the close of business on March 24, 2026 . Recent Developments On January 7, 2026 , the Company announced the pricing of the underwritten public offering of 10,000,000 shares of common stock by certain of its existing stockholders at a price to the public of $20.50 per share. In addition, the underwriters purchased from the selling stockholders 1,500,000 additional shares of common stock at the public offering price, less underwriting discounts and commissions. The selling stockholders received all the net proceeds from this offering. As part of the secondary offering, the Company concurrently repurchased and retired 3,000,000 shares of its common stock from the underwriters at a per-share purchase price equal to the price payable by the underwriters to the selling stockholders in the offering. The offering and the concurrent share repurchase closed on January 9, 2026 . *Leverage Ratio, Adjusted Pre-Tax Income, Adjusted Net Income and Adjusted EPS are non-GAAP financial measures. For a reconciliation of historical Leverage, Adjusted Pre-Tax Income and Adjusted Net Income, to the most directly comparable U.S. GAAP financial measures, please refer to the “Non-GAAP Financial Measures” section of this press-release. Webcast A webcast to discuss the Company’s fourth quarter 2025 financial results is scheduled for today, March 12, 2026 at 5:00 p.m. ET . The live webcast and archived replay can be accessed in the investor relations section of the Company's website at https://investors.jcap.com/news-events/events . Use of Non-GAAP Financial Measures This press release contains references to non-GAAP financial measures, including Leverage, Adjusted Pre-Tax Income, Adjusted Net Income, and Adjusted EPS, which are financial measures that are not prepared in conformity with United States generally accepted accounting principles ( U.S. GAAP). These non-GAAP measures are used by management as a supplemental measure, have certain limitations, and should not be construed as alternatives to financial measures determined in accordance with GAAP. Our management believes Leverage, Adjusted Pre-Tax Income, Adjusted Net Income and Adjusted EPS help us provide enhanced period-to-period comparability of operations and financial performance and are useful to investors as other companies in our industry report similar financial measures. The non-GAAP measures as defined by us may not be comparable to similar non-GAAP financial measures presented by other companies, which could limit such measures’ usefulness as comparative measures. Our presentation of such measures, which may include adjustments to exclude unusual or non-recurring items, should not be construed as an inference that our future results will be unaffected by other unusual or non-recurring items. Detailed reconciliations of non-GAAP financial measures to the most directly comparable GAAP financial measures are included in the financial tables following this release. About Jefferson Capital, Inc. Founded in 2002, Jefferson Capital is an analytically driven purchaser and manager of charged-off, insolvency and active consumer accounts with operations in the United States , Canada , the United Kingdom and Latin America . It purchases and services both secured and unsecured assets, and its growing client base includes Fortune 500 creditors, banks, fintech origination platforms, telecommunications providers, credit card issuers and auto finance companies. Jefferson Capital is headquartered in Minneapolis, Minnesota with additional offices and operations located in Sartell, Minnesota , Denver, Colorado and San Antonio, Texas ( United States ); Basingstoke, England ; London, England and Paisley, Scotland (United Kingdom ); London, Ontario and Toronto, Ontario (Canada ); as well as Bogota ( Colombia ). Contacts: Investor Relations [email protected] Media Relations [email protected] Disclosure Regarding Forward Looking Statements This press release may contain “forward-looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and in the U.S. Private Securities Litigation Reform Act of 1995. All statements contained in this press release that do not relate to matters of historical fact should be considered forward-looking statements, including without limitation statements concerning our anticipated financial performance, execution of our business strategies, the favorability of the investment environment, the benefits of the transaction with Bluestem, and our ability to continue paying quarterly cash dividends. These statements are neither promises nor guarantees, but involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including, but not limited to, the following: a deterioration in the economic or inflationary environment in the United States , Canada , the United Kingdom or Latin America , including the interest rate environment; our ability to replace our portfolios of nonperforming loans with additional portfolios sufficient to operate efficiently and profitably; our ability to collect sufficient amounts on our nonperforming loans to fund our operations; the possibility that third parties we rely on to conduct collection and other activities fail to perform their services; the possibility that we could recognize significant decreases in our estimate of future recoveries on nonperforming loans; changes in, or interpretations of, federal, state, local, or international laws, including bankruptcy and collection laws, or changes in the administrative practices of various bankruptcy courts, which could negatively impact our business or our ability to collect on nonperforming loans; goodwill impairment charges that could negatively impact our net income and stockholders’ equity; our ability to comply with existing and new regulations of the collection industry, the failure of which could result in penalties, fines, litigation, damage to our reputation, or the suspension or termination of or required modification to our ability to conduct our business; adverse outcomes in pending or future litigation or administrative proceedings; the possibility that class action suits and other litigation could divert management’s attention and increase our expenses; investigations, reviews, or enforcement actions by governmental authorities, including the Consumer Financial Protection Bureau , which could result in changes to our business practices, negatively impact our deployment volume, make collection of account balances more difficult, or expose us to the risk of fines, penalties, restitution payments, and litigation; the possibility that compliance with complex and evolving international and United States laws and regulations that apply to our international operations could increase our cost of doing business in international jurisdictions; our ability to comply with data privacy regulations such as the General Data Protection Regulation; our ability to retain, expand, renegotiate or replace our credit facility and our ability to comply with the covenants under our financing arrangements; our ability to refinance our indebtedness; our ability to service our outstanding indebtedness; changes in interest or exchange rates, which could reduce our net income, and the possibility that future hedging strategies may not be successful; and the possibility that we could incur business or technology disruptions or cybersecurity incidents. These and other important factors discussed under the caption “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2025 to be filed with the SEC , and our other filings with the SEC , could cause actual results to differ materially from those indicated by the forward-looking statements made in this press release. Any such forward-looking statements represent management’s estimates as of the date of this press release. While we may elect to update such forward-looking statements at some point in the future, we disclaim any obligation to do so, even if subsequent events cause our views to change. FINANCIAL TABLES FOLLOW Jefferson Capital, Inc. Combined and Consolidated Balance Sheets As of December 31, 2025 and 2024 (Amounts in Thousands) 2025 2024 Assets Cash and cash equivalents $ 23,231 $ 35,506 Restricted cash 24,320 2,737 Accounts receivable 12,245 16,532 Other assets 16,273 14,390 Investments in receivables, net 1,928,742 1,497,748 Credit card receivables (net of allowance for 16,312 17,176 credit losses of $1,784 and $1,907 ) Property, plant and equipment, net 1,695 2,274 Other intangible assets, net 6,541 10,237 Goodwill 58,014 57,683 Total Assets $ 2,087,373 $ 1,654,283 Liabilities Accounts payable and accrued expenses $ 95,208 $ 69,975 Other liabilities 4,179 4,860 Current tax liabilities 855 — Deferred tax liabilities 101,957 2,193 Notes payable, net 1,409,039 1,194,726 Total Liabilities $ 1,611,238 $ 1,271,754 Stockholders' Equity Common Stock par value $0.0001 per share; 330,000,000 shares and 0 shares authorized as of December 31, 2025 and December 31, 2024 and 58,298,923 and 0 shares issued and outstanding as of December 31, 2025 and December 31, 2024 $ 6 $ — Additional paid-in capital (49,549 ) — Retained earnings 522,632 398,122 Accumulated other comprehensive income (loss) 3,046 (15,593 ) Total stockholders' equity $ 476,135 $ 382,529 Total Liabilities and Stockholders' Equity $ 2,087,373 $ 1,654,283 Jefferson Capital, Inc. Combined and Consolidated Statements of Operations and Comprehensive Income For the periods ended December 31, 2025 and 2024 (Amounts in Thousands, except Earnings Per Share amounts) (unaudited) For the Three Months Ended December 31 , For the Year Ended December 31 , 2025 2024 2025 2024 2023 Revenues Total portfolio income $ 143,667 $ 110,942 $ 560,416 $ 396,304 $ 306,529 Changes in recoveries 331 (1,985 ) 6,001 (419 ) (12,955 ) Total portfolio revenue 143,998 108,957 566,417 395,885 293,574 Credit card revenue 1,746 1,986 7,196 8,338 8,820 Servicing revenue 9,055 8,035 39,676 29,118 20,678 Total Revenues 154,799 118,978 613,289 433,341 323,072 Provision for credit losses 690 859 2,360 3,497 3,524 Operating Expenses Salaries and benefits 20,993 12,140 64,584 48,112 36,527 Servicing expenses 53,253 35,015 187,201 130,889 101,696 Depreciation and amortization 1,047 930 5,254 2,608 2,372 Professional fees 3,288 5,465 18,641 11,396 6,833 Other selling, general and administrative 4,971 10,803 18,754 16,572 8,069 Total Operating Expenses 83,552 64,353 294,434 209,577 155,497 Net Operating Income 70,557 53,766 316,495 220,267 164,051 Other Income (Expense) Interest expense (28,599 ) (22,050 ) (105,784 ) (77,239 ) (48,108 ) Foreign exchange and other income (expense) 2,161 (2,292 ) 7,725 (5,474 ) 4,641 Total other expense (26,438 ) (24,342 ) (98,059 ) (82,713 ) (43,467 ) Income Before Income Taxes 44,119 29,424 218,436 137,554 120,584 Provision for income taxes (6,385 ) (2,469 ) (30,471 ) (8,663 ) (9,045 ) Net Income 37,734 26,955 187,965 128,891 111,539 Net income attributable to noncontrolling interest — — — — (20 ) Net income attributable to Jefferson Capital, Inc. 37,734 26,955 $ 187,965 $ 128,891 $ 111,519 Foreign currency translation gain / (loss) 5,728 (12,906 ) 18,639 (13,951 ) 8,261 Comprehensive Income $ 43,462 $ 14,049 $ 206,604 $ 114,940 $ 119,780 Earnings per share Basic $ 0.58 $ — $ 5.64 $ — $ — Diluted 0.58 — 5.64 — — Weighted average common shares outstanding Basic 58,271 — 30,015 — — Diluted 58,271 — 30,015 — — Jefferson Capital, Inc. Combined and Consolidated Statements of Cash Flows For the years ended December 31, 2025 , 2024 and 2023 ( Amounts in Thousands ) 2025 2024 2023 Cash flows from operating activities Net income $ 187,965 $ 128,891 $ 111,539 Adjustments to reconcile net income to net cash and cash equivalents provided by operating activities: Depreciation and amortization 5,254 2,608 2,372 Amortization of debt issuance costs 6,223 4,253 2,911 Provision for credit losses 2,360 3,497 3,524 Stock-based compensation 17,224 — — Deferred income tax 21,465 (527 ) (754 ) Changes in assets and liabilities: Other assets (1,754 ) (435 ) (26,230 ) Accounts receivable 4,594 (7,326 ) 17,861 Accounts payable and accrued expenses 25,482 37,248 8,996 Net cash provided by operating activities 268,813 168,209 120,219 Cash flows from investing activities Purchases of receivables, net (832,077 ) (723,253 ) (530,873 ) Purchases of credit card receivables (26,703 ) (30,750 ) (35,434 ) Collections applied to investments in receivables, net 432,265 188,675 137,400 Collections applied to credit card receivables 25,657 29,174 32,319 Acquisition, net of cash acquired — — (5,596 ) Purchases of property and equipment, net (1,085 ) (6,211 ) (1,227 ) Net cash used in investing activities (401,943 ) (542,365 ) (403,411 ) Cash flow from financing activities Proceeds from notes payable 1,187,797 1,082,484 654,734 Payments on notes payable (969,295 ) (650,398 ) (328,413 ) Payment of debt issuance costs (15,348 ) (7,266 ) (5,898 ) Dividends paid to stockholders (63,455 ) (36,000 ) (30,564 ) Proceeds from issuance of common stock 10,000 — — Net cash (used in) / provided by financing activities 149,699 388,820 289,859 Exchange rate effects on cash balances held in foreign currencies (7,261 ) 2,975 (1,220 ) Net (decrease) increase in cash and cash equivalents and restricted cash 9,308 17,639 5,447 Cash and cash equivalents and restricted cash, beginning of period 38,243 20,604 15,157 Cash and cash equivalents and restricted cash, end of period $ 47,551 $ 38,243 $ 20,604 Jefferson Capital, Inc. Supplemental Financial Information Reconciliation of Non-GAAP Metrics Cash Efficiency Ratio Three Months Ended December 31 , ($in Millions) 2025 2024 Collections $ 245.3 $ 174.3 Credit card revenue 1.7 2.0 Servicing revenue 9.1 8.0 Cash Receipts (A) $ 256.1 $ 184.3 Operating Expenses $ 83.6 $ 64.4 Stock compensation (8.4 ) (0.5 ) Canaccede exit incentive (0.4 ) (7.7 ) Merger and acquisition and initial public offering expenses (0.4 ) (4.5 ) Adjusted Operating Expenses (B) $ 74.4 $ 51.7 Cash Efficiency Ratio (A-B) / A 71.0 % 71.9 % Adjusted Pre-tax Income Three Months Ended December 31 , ($in Millions) 2025 2024 Pre-tax Income $ 44.1 $ 29.4 Foreign exchange and other income (expense) (2.2 ) 2.3 Stock Compensation 8.4 0.5 Canaccede exit incentive 0.4 7.7 Merger and acquisition and initial public offering expenses 0.4 4.5 Adjusted Pre-tax Income $ 51.1 $ 44.4 Jefferson Capital, Inc. Supplemental Financial Information Reconciliation of Non-GAAP Metrics (Continued) Adjusted Net Income and Adjusted EPS Three Months Ended Increase % December 31 , (Decrease) Change (in Millions, Except Adjusted EPS amounts) 2025 2024 Net Income $ 37.7 $ 27.0 $ 10.7 39.8 % Foreign exchange and other income (expense) (2.2 ) 2.3 (4.5 ) (194.3 ) Stock compensation 8.4 0.5 7.9 1,574.6 Canaccede exit incentive 0.4 7.7 (7.3 ) — Merger and acquisition and initial public offering expenses 0.4 4.5 (4.1 ) (91.0 ) Adjusted Net Income $ 44.7 $ 42.0 $ 2.7 6.5 % Weighted average diluted common shares outstanding (in millions) 58.3 Expected vesting of non-vested restricted stock 6.3 Adjusted weighted average diluted common shares outstanding 64.6 Adjusted EPS $ 0.69 Leverage Trailing Twelve Months Ended December 31 , ($in Millions) 2025 2024 Net cash provided by operating activities $ 268.8 $ 168.2 Changes in prepaid expenses (0.5 ) 7.8 Changes in accounts payable and accrued expenses (46.9 ) (36.7 ) Provision for credit losses (2.4 ) (3.5 ) Foreign exchange and other income (expense) (7.7 ) 5.5 Cash interest paid 95.5 73.0 Provision for income taxes 30.5 8.7 Total portfolio revenue (566.4 ) (395.9 ) Gross collections 998.7 584.5 Stock compensation (7.9 ) 4.5 Canaccede exit consideration 1.4 7.7 Merger and acquisition and initial public offering expenses 10.5 7.0 Adjusted Cash EBITDA (A) $ 773.6 $ 430.8 As of December 31 , 2025 2024 Borrowings, as reported $ 1,409.0 $ 1,194.7 Unamortized issuance costs 22.5 13.4 Unrestricted cash (23.2 ) (35.5 ) Net Debt (B) $ 1,408.4 $ 1,172.6 Leverage (B / A) 1.82 x 2.72 x Source: Jefferson Capital

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