Jefferson Capital Reports Third Quarter 2025 Results

About this update from Jefferson Capital, Inc.

Collections Grow 63% to $236.8 Million and Deployments Grow 22% to $151.0 Million Pre-tax Income up 16% to $45.5 Million with Net Income of $38.4 Million and EPS of $0.59 Adjusted Pre-tax Income up 30% to $54.8 Million with Adjusted Net Income of $47.7 Million and Adjusted EPS of $0.74 Board of Directors Declares Quarterly Cash Dividend of $0.24 per Share MINNEAPOLIS , Nov. 13, 2025 (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 third quarter 2025 financial results. “We delivered strong third quarter results with significant momentum in all key aspects of the business,” said David Burton , Chairman and Chief Executive Officer. “We continue to execute well on our differentiated strategy and are well positioned to drive shareholder value in the near and long term.” “We delivered the largest third quarter deployments in the company’s history, up 22% year-over-year and, previously disclosed, we signed another strategic portfolio purchase of a sizable dislocated credit card portfolio from Bluestem Brands to follow up on the Conn’s portfolio purchase from last year.” “The investment environment remains favorable with elevated levels of consumer credit delinquencies, charge-offs and insolvencies to drive portfolio supply and low unemployment to support liquidation rates. We further improved our leading position in the market by upsizing our revolving credit facility to $1 billion in commitments while also improving pricing and enhancing terms.” Third Quarter 2025 Highlights versus Third Quarter 2024 Collections grew 63% to $236.8 million Deployments up 22% to $151.0 million – largest third quarter deployments in the company’s history ERC rose 27% reaching $2.9 billion Strong revenue growth of 36% to $150.8 million Sector-leading Cash Efficiency Ratio of 72.2%, up 319 bps Leverage ratio* improved to 1.59x as compared to 2.52x Pre-tax Income up 16% to $45.5 million with Net Income of $38.4 million and EPS of $0.59 Adjusted Pre-tax Income* increased 30% to $54.8 million Adjusted Net Income* of $47.7 million , resulting in Adjusted EPS of $0.74 Collections The following table summarizes total collections by geographic area: Three Months Ended September 30 , Increase % (in Millions) 2025 2024 (Decrease) Change United States $ 182.9 $ 99.6 $ 83.3 83.6 % Canada 29.0 23.3 5.7 24.5 % United Kingdom 11.0 10.6 0.4 3.8 % Latin America 13.9 11.6 2.3 19.8 % Total Collections $ 236.8 $ 145.1 $ 91.7 63.2 % Collections from purchased receivables increased 63.2% or $91.7 million to $236.8 million during the third quarter of 2025 versus $145 .1 million during the same quarter in 2024 Collections in the United States included $49.7 million from the Conn’s portfolio purchase in the fourth quarter of 2024 Estimated Remaining Collections The following table summarizes total ERC by geographic area: September 30 , Increase % (in Millions) 2025 2024 (Decrease) Change United States $ 2,158.8 $ 1,668.9 $ 489.9 29.4 % Canada 362.5 272.8 89.7 32.9 % United Kingdom 153.0 153.6 (0.6 ) (0.4 ) % Latin America 255.3 211.5 43.8 20.7 % Total $ 2,929.6 $ 2,306.8 $ 622.8 27.0 % ERC in the United States included $178.6 million from the Conn’s portfolio purchase Deployments The following table summarizes the total deployments by geographic area: Three Months Ended September 30 , Increase % (in Millions) 2025 2024 (Decrease) Change United States $ 107.2 $ 75.8 $ 31.4 41.4 % Canada 30.8 30.2 0.6 1.9 % United Kingdom 4.1 4.7 (0.6 ) (12.8 ) % Latin America 8.9 12.7 (3.9 ) (30.4 ) % Total Purchases $ 151.0 $ 123.4 $ 27.5 22.3 % The Company invested $151.0 million to acquire receivable portfolios, which compares to $123 .4 million in the third quarter 2024 $316.4 million of deployments locked in through forward flows at quarter end of which $272.8 million are for the next twelve months Revenues Total revenues increased $40.2 million , or 36.4%, to $150.8 million compared to $110.6 million for the third quarter 2024. The growth is primarily a result of strong deployments in prior periods Operating Expenses Total operating expenses increased $29.9 million , or 59.5% to $80.2 million compared to $50.3 million for the third quarter 2024 primarily due to increases of $14.4 million in court costs, agency commissions and other servicing expenses due to increased legal channel volumes as well as $10.7 million in salaries and benefits driven by $8.8 million in non-cash stock-based compensation expense For the third quarter 2025, the Company recognized portfolio revenue of $22.4 million , servicing revenue of $1.9 million and net operating income of $16.5 million related to the Conn’s portfolio purchase Leverage, Liquidity and Capital Resources Leverage* improved to 1.59x at September 30, 2025 compared to 2.52x at September 30, 2024 as a result of strong growth in portfolio cashflow At September 30, 2025 , the Company’s Revolving Credit Facility (“RCF”) with $825 million of commitments was undrawn and in addition, the Company had $42.3 million of unrestricted cash and cash equivalents. RCF upsized to $1 billion post quarter end 2026 maturity was pre-funded with a $500 million unsecured debt offering in May 2025 , which paid down the RCF Dividend The Board of Directors declared a quarterly cash dividend of $0.24 per share on its outstanding common stock, payable on December 4, 2025 , to shareholders of record as of the close of business on November 25, 2025 . Recent Developments On October 24, 2025 , Jefferson Capital entered into an Asset Purchase Agreement with affiliates of Bluestem Brands (“Bluestem”) to acquire an active credit card receivables portfolio for which new draws have been suspended for a gross purchase price of $302.8 million: The gross purchase price is subject to customary adjustments for interim cash flows (including collections and new purchases) between June 30, 2025 (the “Cut Off Date”) and closing and a $20.0 million escrow to secure implementation obligations At the Cut Off Date, the receivables being acquired had an aggregate face value of $488.2 million The closing of the transaction is expected in the fourth quarter of 2025 On October 27, 2025 Jefferson Capital completed an amendment of its 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 *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 third quarter 2025 financial results is scheduled for today, November 13, 2025 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 closing of the Asset Purchase Agreement with Bluestem and the related costs and benefits, 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 Quarterly Report on Form 10-Q 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 Condensed Consolidated Balance Sheets (Unaudited, in Thousands) September 30 , December 31 , 2025 2024 Assets Cash and cash equivalents $ 42,270 $ 35,506 Restricted cash 3,801 2,737 Accounts receivable 17,297 16,532 Other assets 15,518 14,390 Investments in receivables, net 1,640,809 1,497,748 Credit card receivables (net of allowance for credit losses of $1,751 and $1,907 ) 16,180 17,176 Property, plant and equipment, net 1,867 2,274 Other intangible assets, net 7,273 10,237 Goodwill 57,906 57,683 Total Assets $ 1,802,921 $ 1,654,283 Liabilities Accounts payable and accrued expenses $ 78,272 $ 69,975 Other liabilities 4,569 4,860 Current tax liabilities 1,248 — Deferred tax liabilities 98,876 2,193 Notes payable, net 1,182,584 1,194,726 Total Liabilities $ 1,365,549 $ 1,271,754 Stockholder's Equity Common Stock par value $0.0001 per share; 330,000,000 shares and 0 shares authorized as of September 30, 2025 and December 31, 2024 and 58,290,473 and 0 shares issued and outstanding as of September 30, 2025 and December 31, 2024 $ 6 $ — Additional paid-in capital (60,748 ) — Retained earnings 500,414 398,122 Accumulated other comprehensive income (loss) (2,300 ) (15,593 ) Total stockholder's equity $ 437,372 $ 382,529 Total Liabilities and Stockholder's Equity $ 1,802,921 $ 1,654,283 Jefferson Capital, Inc. Combined and Condensed Consolidated Statements of Operations and Comprehensive Income (Unaudited in Thousands, except for Earnings Per Share amounts) For the Three Months Ended September 30 , For the Nine Months Ended September 30 , 2025 2024 2025 2024 Revenues Total portfolio income $ 139,179 $ 99,258 $ 416,749 $ 285,362 Changes in recoveries 494 1,690 5,670 1,565 Total portfolio revenue 139,673 100,948 422,419 286,927 Credit card revenue 1,755 2,048 5,450 6,353 Servicing revenue 9,414 7,605 30,621 21,080 Total Revenues 150,842 110,601 458,490 314,360 Provision for credit losses 569 867 1,670 2,637 Operating Expenses Salaries and benefits 23,314 12,567 43,590 35,973 Servicing expenses 47,609 33,246 133,948 95,873 Depreciation and amortization 1,350 548 4,206 1,678 Professional fees 3,743 1,894 15,353 5,930 Other selling, general and administrative 4,221 2,052 13,783 5,769 Total Operating Expenses 80,237 50,307 210,880 145,223 Net Operating Income 70,036 59,427 245,940 166,500 Other Income (Expense) Interest expense (26,467 ) (19,753 ) (77,184 ) (55,187 ) Foreign exchange and other income (expense) 1,944 (440 ) 5,564 (3,181 ) Total other expense (24,523 ) (20,193 ) (71,620 ) (58,368 ) Income Before Income Taxes 45,513 39,234 174,320 108,132 Provision for income taxes (7,151 ) (2,356 ) (24,086 ) (6,195 ) Net Income 38,362 36,878 150,234 101,937 Foreign currency translation gain / (loss) (5,023 ) 4,851 13,293 (1,045 ) Comprehensive Income $ 33,339 $ 41,729 $ 163,527 $ 100,892 Earnings per share Basic $ 0.59 $ — $ 6.60 $ — Diluted 0.59 — 6.60 — Weighted average common shares outstanding Basic 58,279 — 20,493 — Diluted 58,279 — 20,493 — Jefferson Capital, Inc. Combined and Condensed Consolidated Statements of Cash Flows ( Unaudited, in Thousands ) For the Nine Months Ended September 30 , 2025 2024 Cash flows from operating activities Net income $ 150,234 $ 101,937 Adjustments to reconcile net income to net cash and cash equivalents provided by operating activities: Depreciation and amortization 4,206 1,678 Amortization of debt issuance costs 4,016 3,142 Provision for credit losses 1,670 2,637 Stock-based compensation 8,850 — Deferred income tax 17,254 (1,420 ) Changes in assets and liabilities: Other assets (1,186 ) (19,762 ) Accounts receivable (355 ) (3,428 ) Accounts payable and accrued expenses 8,956 6,075 Net cash provided by operating activities 193,645 90,859 Cash flows from investing activities Purchases of receivables, net (451,531 ) (365,322 ) Purchases of credit card receivables (20,054 ) (23,689 ) Collections applied to investments in receivables, net 331,042 123,301 Collections applied to credit card receivables 19,697 22,341 Purchases of property and equipment, net (645 ) (449 ) Net cash used in investing activities (121,491 ) (243,818 ) Cash flow from financing activities Proceeds from notes payable 681,790 747,887 Payments on notes payable (694,872 ) (567,719 ) Payment of debt issuance costs (8,012 ) (6,868 ) Dividends paid to stockholders (47,942 ) (20,000 ) Proceeds from issuance of common stock 10,000 — Net cash (used in) / provided by financing activities (59,036 ) 153,300 Exchange rate effects on cash balances held in foreign currencies (5,290 ) 495 Net (decrease) increase in cash and cash equivalents and restricted cash 7,828 838 Cash and cash equivalents and restricted cash, beginning of period 38,243 20,604 Cash and cash equivalents and restricted cash, end of period $ 46,071 $ 21,442 Jefferson Capital, Inc. Supplemental Financial Information Reconciliation of Non-GAAP Metrics Cash Efficiency Ratio Three Months Ended September 30 , ($in Millions) 2025 2024 Collections $ 236.8 $ 145.1 Credit card revenue 1.8 2.0 Servicing revenue 9.4 7.6 Cash Receipts (A) $ 248.0 $ 154.8 Operating Expenses $ 80.2 $ 50.3 Stock compensation (8.8 ) (2.2 ) Canaccede exit incentive (0.1 ) — IPO, merger and acquisition, and other one-time expenses (2.4 ) (0.2 ) Adjusted Operating Expenses (B) $ 69.0 $ 47.9 Cash Efficiency Ratio ( A-B ) / A 72.2 % 69.0 % Adjusted Pre-tax Income Three Months Ended September 30 , ($in Millions) 2025 2024 Pre-tax Income $ 45.5 $ 39.2 Foreign exchange and other income (expense) (1.9 ) 0.4 Stock Compensation 8.8 2.2 Canaccede exit incentive 0.1 — IPO, merger and acquisition, and other one-time expenses 2.4 0.2 Adjusted Pre-tax Income $ 54.8 $ 42.1 Jefferson Capital, Inc. Supplemental Financial InformationReconciliation of Non-GAAP Metrics (Continued) Adjusted Net Income and Adjusted EPS Three Months Ended Increase % September 30 , (Decrease) Change (in Millions, Except for Adjusted EPS) 2025 2024 Net Income $ 38.4 $ 36.9 $ 1.5 4.0 % Foreign exchange and other income (expense) (1.9 ) 0.4 (2.4 ) (541.8 ) Stock compensation 8.8 2.2 6.6 303.7 Canaccede exit incentive 0.1 — 0.1 — IPO, merger and acquisition, and other one-time expenses(1) 2.4 0.2 2.2 1,046.1 Adjusted Net Income $ 47.7 $ 39.7 $ 8.0 20.1 % Weighted average diluted common shares outstanding (in millions) 58.3 Expected vesting of non-vested restricted stock 6.4 Adjusted weighted average diluted common shares outstanding 64.7 Adjusted EPS $ 0.74 Leverage Trailing Twelve Months Ended September 30 , ($in Millions) 2025 2024 Net cash provided by operating activities $ 270.9 $ 125.6 Changes in prepaid expenses (13.8 ) 20.7 Changes in accounts payable and accrued expenses (58.3 ) (8.4 ) Provision for credit losses (2.6 ) (3.5 ) Foreign exchange and other income (expense) (3.2 ) 1.9 Cash interest paid 94.0 65.9 Provision for income taxes 26.8 8.2 Total portfolio revenue (531.4 ) (359.1 ) Gross collections 927.7 515.9 Stock compensation (7.6 ) 4.6 Conn's one-time items(1) 4.6 — Canaccede exit consideration 8.7 — Merger and acquisition, and other one-time expenses(2) 11.3 2.5 Adjusted Cash EBITDA (A) $ 727.2 $ 374.3 As of September 30 , 2025 2024 Borrowings, as reported $ 1,182.6 $ 948.0 Unamortized issuance costs 17.4 14.1 Unrestricted cash (42.3 ) (18.3 ) Net Debt (B) $ 1,157.7 $ 943.8 Leverage (B / A) 1.59 x 2.52 x Source: Jefferson Capital

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