Jefferson Capital Reports Second Quarter 2026 Results

About this update from Jefferson Capital, Inc.

Collections Grow 18% to $300.9 Million and Deployments grow 21% to $152.2 Million Estimated Remaining Collections (“ERC”) up 18% to $3.4 Billion Pre-tax Income of $53.3 Million with Net Income of $41.3 Million and EPS of $0.67 Adjusted Pre-tax Income of $59.3 Million with Adjusted Net Income of $47.3 Million and Adjusted EPS of $0.77 Board of Directors Declares Quarterly Cash Dividend of $0.24 per Share MINNEAPOLIS, Aug. 13, 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 second quarter 2026 financial results. “Jefferson Capital delivered excellent performance for the quarter with consistent momentum across all key aspects of the business,” said David Burton, Chairman and Chief Executive Officer. “We continue to execute well on our differentiated strategy and remain well positioned to drive shareholder value in the near and long term. ” “The investment environment remains favorable. We are particularly focused on auto finance where record high balances and credit quality headwinds continue to drive growing portfolio supply. We are one of the very few industry participants which can offer solutions across the spectrum of performing, charged-off and insolvency auto finance portfolios for both secured and unsecured accounts.” Second Quarter 2026 Highlights (vs. Second Quarter 2025) Collections grew 18% to $300.9 million Deployments up 21% to $152.2 million ERC rose 18% to $3.4 billion Strong revenue growth of 16% to a record $177.5 million Sector-leading Cash Efficiency Ratio of 72.2% Leverage ratio* improved to 1.71x as compared to 1.76x Pre-tax Income of $53.3 million with Net Income of $41.3 million and EPS of $0.67 Adjusted Pre-tax Income* of $59.3 million with Adjusted Net Income* of $47.3 million and Adjusted EPS of $0.77 Collections The following table summarizes total collections by geographic area:   Three Months Ended               June 30,   Increase   %   (in Millions) 2026   2025   (Decrease)   Change   United States $ 235.4   $ 202.4   $ 33.0   16.3 % Canada   35.3     30.8     4.5   14.6 % United Kingdom   12.2     10.7     1.5   14.0 % Latin America   18.0     11.8     6.2   52.5 % Total Collections $ 300.9   $ 255.7   $ 45.2   17.7 %                         Collections from purchased receivables increased 17.7% or $45.2 million to $300.9 million during the second quarter of 2026 versus $255.7 million during the same quarter in 2025 Collections in the United States included $41.0 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:   June 30,   Increase   %   (in Millions) 2026   2025   (Decrease)   Change   United States $ 2,422.5   $ 2,101.7   $ 320.8   15.3 % Canada   420.5     348.5     72.0   20.7 % United Kingdom   197.2     158.4     38.8   24.5 % Latin America   324.0     244.3     79.7   32.6 % Total $ 3,364.2   $ 2,852.9   $ 511.3   17.9 %                         ERC in the United States included $218.2 million from the Bluestem portfolio purchase which closed in the fourth quarter 2025 Deployments The following table summarizes the total deployments by geographic area:   Three Months Ended               June 30,   Increase   %   (in Millions) 2026   2025   (Decrease)   Change   United States $ 93.1   $ 80.6   $ 12.5   15.5 % Canada   34.2     26.6     7.6   28.6 % United Kingdom   6.9     4.7     2.2   46.8 % Latin America   18.0     13.4     4.6   34.3 % Total Purchases $ 152.2   $ 125.3   $ 26.9   21.5 %                         The Company invested $152.2 million during the quarter to acquire receivable portfolios, up 21.5% compared to $125.3 million in the second quarter 2025 As of June 30, 2026, the Company had $480.7 million in committed forward flows Revenues Total revenues increased $24.8 million for the quarter, or 16.2%, to $177.5 million compared to $152.7 million for the second quarter 2025. The growth was primarily the result of strong deployments in prior periods Operating Expenses Total operating expenses increased $29.9 million, or 45.6% to $95.4 million compared to $65.5 million for the second quarter 2025. The increase was primarily due to a $21.3 million rise in servicing expenses driven by increased collections, including $9.3 million in higher court costs from increased legal channel volume, and $3.9 million related to the Bluestem portfolio purchase as well as $8.3 million in non-cash stock-based compensation expense For the second quarter 2026, the Company recognized portfolio revenue of $11.0 million and net operating income of $7.1 million related to the Bluestem portfolio purchase Leverage Ratio, Liquidity and Capital Resources Leverage ratio* improved to 1.71x at June 30, 2026 compared to 1.76x at June 30, 2025 as a result of strong growth in portfolio cashflow On April 22, 2026 Jefferson Capital completed an upsize of its Revolving Credit Facility (“RCF”) increasing aggregate commitments to $1.15 billion. At June 30, 2026, the Company had $226 million drawn under the RCF On August 13, 2026, the Company deposited $300 million with the bond trustee for the repayment of the 2026 notes expected to be repaid on August 17, 2026 Dividend The Board of Directors declared a quarterly cash dividend of $0.24 per share on its outstanding common stock, payable on September 3, 2026, to shareholders of record as of the close of business on August 24, 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 second quarter 2026 financial results is scheduled for today, August 13, 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, Cash Efficiency Ratio, Adjusted Operating Expenses 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 and strength of our business model, the favorability of the investment environment, [use of our share repurchase program,] 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 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 Condensed Consolidated Balance Sheets (Unaudited, Amounts in Thousands)     As of June 30,   As of December 31,     2026   2025   Assets             Cash and cash equivalents $ 20,406     $ 23,231     Restricted cash   5,641       24,320     Accounts receivable   16,901       12,245     Other assets   14,281       16,273     Investments in receivables, net   1,946,819       1,928,742     Credit card receivables (net of allowance for credit losses of $1,598 and $1,784)   15,042       16,312     Property, plant and equipment, net   1,711       1,695     Other intangible assets, net   5,246       6,541     Goodwill   57,761       58,014     Total Assets $ 2,083,808     $ 2,087,373                   Liabilities             Accounts payable and accrued expenses $ 73,285     $ 95,208     Other liabilities   3,777       4,179     Current tax liabilities   1,074       855     Deferred tax liabilities   123,688       101,957     Notes payable, net   1,405,794       1,409,039     Total Liabilities $ 1,607,618     $ 1,611,238                   Stockholders' Equity             Common Stock par value $0.0001 per share; 330,000,000 shares authorized as of June 30, 2026 and December 31, 2025 and 57,435,586 and 58,298,923 shares issued and outstanding as of June 30, 2026 and December 31, 2025 $ 6     $ 6     Additional paid-in capital   (32,692 )     (49,549 )   Retained earnings   513,057       522,632     Accumulated other comprehensive income (loss)   (4,181 )     3,046     Total stockholders' equity $ 476,190     $ 476,135     Total Liabilities and Stockholders' Equity $ 2,083,808     $ 2,087,373       Jefferson Capital, Inc. Combined and Condensed Consolidated Statements of Operations and Comprehensive Income (Unaudited in Thousands, except Per Share amounts)     For the Three Months Ended June 30,   For the Six Months Ended June 30,   2026   2025   2026   2025 Revenues                       Total portfolio income $ 156,253     $ 138,877     $ 313,859     $ 277,571   Changes in recoveries   9,010       1,556       16,067       5,176   Total portfolio revenue   165,263       140,433       329,926       282,747   Credit card revenue   1,623       1,798       3,358       3,696   Servicing revenue   10,654       10,477       20,695       21,208   Total Revenues   177,540       152,708       353,979       307,651   Provision for credit losses   757       560       1,380       1,101   Operating Expenses                       Salaries and benefits   21,880       6,254       44,255       20,276   Servicing expenses   64,822       43,546       130,400       86,339   Depreciation and amortization   844       1,250       1,716       2,854   Professional fees   3,053       9,444       5,334       11,611   Other selling, general and administrative   4,751       5,013       9,275       9,562   Total Operating Expenses   95,350       65,507       190,980       130,642   Net Operating Income   81,433       86,641       161,619       175,908                           Other Income (Expense)                       Interest expense   (30,370 )     (25,824 )     (60,948 )     (50,717 ) Foreign exchange and other income (expense)   2,270       1,089       3,718       3,620   Total other expense   (28,100 )     (24,735 )     (57,230 )     (47,097 ) Income Before Income Taxes   53,333       61,906       104,389       128,811   Provision for income taxes   (12,037 )     (14,255 )     (25,460 )     (16,935 ) Net Income   41,296       47,651       78,929       111,876   Foreign currency translation gain / (loss)   (1,525 )     14,432       (7,226 )     18,316   Comprehensive Income $ 39,771     $ 62,083     $ 71,703     $ 130,192                           Earnings per share                       Basic $ 0.67     $ 18.61     $ 1.28     $ 86.88   Diluted   0.67       16.76       1.28       78.26   Weighted average common shares outstanding                       Basic   55,515       2,561       55,552       1,288   Diluted   55,519       2,843       55,554       1,430     Jefferson Capital, Inc. Combined and Condensed Consolidated Statements of Cash Flows ( Unaudited, in Thousands )           For the Six Months Ended June 30,     2026   2025   Cash flows from operating activities             Net income $ 78,929     $ 111,876     Adjustments to reconcile net income to net cash and cash equivalents provided by operating activities:             Depreciation and amortization   1,716       2,854     Amortization of debt issuance costs   3,337       2,494     Provision for credit losses   1,380       1,101     Change in Recoveries   (16,067 )     —     Stock-based compensation   16,857       —     Deferred income tax   21,893       12,386     Changes in assets and liabilities:             Other assets   2,032       (2,812 )   Accounts receivable   (4,745 )     (3,175 )   Accounts payable and accrued expenses   (22,438 )     5,841     Net cash provided by operating activities   82,894       130,565     Cash flows from investing activities             Purchases of receivables, net   (301,947 )     (300,501 )   Purchases of credit card receivables   (11,890 )     (13,138 )   Collections applied to investments in receivables, net   296,889       233,761     Collections applied to credit card receivables   11,501       13,479     Purchases of property and equipment, net   (531 )     (539 )   Net cash used in investing activities   (5,978 )     (66,938 )   Cash flow from financing activities             Proceeds from notes payable   412,452       681,790     Payments on notes payable   (417,798 )     (694,872 )   Payment of debt issuance costs   (935 )     (7,605 )   Dividends paid to stockholders   (29,592 )     (32,422 )   Proceeds of common stock   —       10,000     Repurchase of common stock   (58,912 )     —     Net used in financing activities   (94,785 )     (43,109 )   Exchange rate effects on cash balances held in foreign currencies   (3,635 )     (3,261 )   Net decrease in cash and cash equivalents and restricted cash   (21,504 )     17,257     Cash and cash equivalents and restricted cash, beginning of period   47,551       38,243     Cash and cash equivalents and restricted cash, end of period $ 26,047     $ 55,500       Jefferson Capital, Inc. Supplemental Financial Information Reconciliation of Non-GAAP Metrics   Cash Efficiency Ratio     Three Months Ended     June 30,   ($in Millions) 2026   2025   Collections $ 300.9     $ 255.7     Credit card revenue   1.6       1.8     Servicing revenue   10.7       10.5     Cash Receipts (A) $ 313.2     $ 268.0                   Operating Expenses $ 95.4     $ 65.5     Stock compensation   (8.3 )     8.3     Merger and acquisition and initial public offering related expenses   —       (9.1 )   Adjusted Operating Expenses (B) $ 87.1     $ 64.7                   Cash Efficiency Ratio (A-B) / A   72.2 %     75.9 %       Adjusted Pre-tax Income         Three Months Ended     June 30,   ($in Millions) 2026   2025   Pre-tax Income $ 53.3     $ 61.9     Foreign exchange and other income (expense)   (2.3 )     (1.1 )   Stock Compensation   8.3       (8.3 )   Merger and acquisition and initial public offering expenses   —       9.1     Adjusted Pre-tax Income $ 59.3     $ 61.6       Jefferson Capital, Inc. Supplemental Financial Information Reconciliation of Non-GAAP Metrics (Continued)   Adjusted Net Income and Adjusted EPS     Three Months Ended     Increase   %     June 30,     (Decrease)   Change   (in Millions, Except Adjusted EPS amounts) 2026   2025             Net Income $ 41.3     $ 47.7     $ (6.4 )   (13.4 )%   Foreign exchange and other income (expense)   (2.3 )     (1.1 )     (1.2 )   108.4 %   Stock compensation   8.3       (8.3 )     16.6     (200.0 )%   Merger and acquisition and initial public offering expenses   —       9.1       (9.1 )   (100.0 )%   Adjusted Net Income $ 47.3     $ 47.4     $ (0.1 )   (0.2 )%                           Weighted average diluted common shares outstanding (in millions)   57.4                     Expected vesting of non-vested restricted stock   4.2                     Adjusted weighted average diluted common shares outstanding   61.6                                             Adjusted EPS $ 0.77                         Leverage Ratio         Trailing Twelve Months Ended     June 30,   ($in Millions) 2026   2025   Net cash provided by operating activities $ 221.2     $ 295.1     Changes in prepaid expenses   (3.8 )     11.1     Changes in accounts payable and accrued expenses   (28.2 )     (118.7 )   Changes in recoveries   16.1       —     Provision for credit losses   (2.6 )     (2.8 )   Foreign exchange and other income (expense)   (7.8 )     (0.8 )   Cash interest paid   104.9       87.8     Provision for income taxes   39.0       22.0     Total portfolio revenue   (613.6 )     (492.6 )   Gross collections   1,092.9       836.0     Stock compensation   —       (5.4 )   Merger and acquisition and initial public offering expenses   3.5       22.3     Adjusted Cash EBITDA (A) $ 821.6     $ 654.0                     June 30,     2026   2025   Borrowings, as reported $ 1,405.8     $ 1,181.5     Unamortized issuance costs   20.1       18.5     Unrestricted cash   (20.4 )     (51.7 )   Net Debt (B) $ 1,405.5     $ 1,148.3                   Leverage Ratio (B / A)   1.71 x     1.76 x  

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