Jefferson Capital, Inc. is a company that specializes in financial recovery and debt resolution services, operating across the United States, the United ...
Jefferson Capital, Inc. is an analytically driven purchaser and manager of charged-off and insolvency consumer accounts. The company’s core business model begins with the acquisition of large portfolios of consumer receivables that have generally been written off by banks, lenders, telecommunications providers, utilities, automotive-finance companies, or other credit originators. Because ...Jefferson Capital, Inc. is an analytically driven purchaser and manager of charged-off and insolvency consumer accounts. The company’s core business model begins with the acquisition of large portfolios of consumer receivables that have generally been written off by banks, lenders, telecommunications providers, utilities, automotive-finance companies, or other credit originators. Because these accounts are purchased after delinquency or charge-off, Jefferson Capital typically acquires them for a fraction of their original face value. The company then applies data analytics, account segmentation, servicing processes, compliance controls, and consumer-contact strategies to maximize long-term recoveries while offering repayment or settlement pathways.
Its portfolio exposure spans several major categories of consumer debt, including credit-card balances, secured and unsecured automotive loans, telecommunications obligations, utility bills, and other unsecured receivables. In addition to purchasing receivables for its own account, Jefferson Capital provides loan administration and portfolio-management services to credit originators, particularly in connection with non-performing loans. These services can include account servicing, payment processing, borrower communications, reporting, and operational administration. The company’s geographic platform covers the United States, Canada, the United Kingdom, and Latin America, allowing it to serve multiple creditor and consumer markets while applying a common technology and analytics framework adapted to local requirements.
Jefferson Capital was founded in 2002 and is headquartered in Minneapolis, Minnesota. David Burton is identified as its chief executive officer, and the company has approximately 1,120 full-time employees. The company became publicly traded on Nasdaq in June 2025 through its initial public offering under the ticker JCAP. Its reported industry classification is Financial - Credit Services, within the broader Financial Services sector.
The economics of the business are driven primarily by the difference between the cost of acquiring distressed account portfolios and the cash collections generated over time. Unlike a traditional manufacturer, Jefferson Capital does not have a conventional bill-of-materials structure or significant inventory requirement. Its principal operating inputs include portfolio-acquisition capital, debt financing, servicing personnel, collection and account-management technology, compliance infrastructure, customer-support resources, and data-analytics capabilities. Capital allocation and accurate forecasting are therefore important because portfolio purchases require upfront funding, while recoveries may be collected over extended periods.
The supplied trailing-twelve-month data indicates approximately $1.31 billion in market capitalization, $2.72 billion in enterprise value, revenue of roughly $11.42 per share, and net income of approximately $2.90 per share. Reported profitability measures include a gross margin of about 66.8%, an EBITDA margin of approximately 41.4%, and a net profit margin of roughly 25.4%. Return on equity is reported at approximately 36.5%, while debt-to-equity is elevated at about 3.25, reflecting the capital-intensive nature of receivables acquisition. Jefferson Capital also reported a trailing dividend of $0.96 per share. Investors evaluating JCAP should consider recovery-rate performance, portfolio-purchase pricing, consumer repayment trends, regulatory and legal requirements, funding costs, credit-market conditions, delinquency levels, and the company’s ability to manage leverage while sustaining collections.
YoYYoY means Year-over-Year. It compares the latest annual value with the previous annual value to show long-term trend strength.
QoQQoQ means Quarter-over-Quarter. It compares the latest quarter with the immediately previous quarter to show short-term momentum changes.
RevenueThe total money that came through the front door from selling things, before paying a single bill. Think of it as the grand total of every credit card swipe from customers. (YoY compares this year to last year's performance, while QoQ compares the current three months to the previous three).
$613.3M
+41.5%
+0.6%
Net IncomeThe absolute bottom line. If the company paid every single supplier, employee, banker, and tax collector, this is the actual money left in their pocket at the end of the day.
$188.0M
+78.5%
+9.7%
Gross MarginThe basic markup. If they sell a $100 pair of sneakers, this percentage tells you how much of that price tag is profit right after paying for the rubber and shoelaces, but before paying for things like store rent or TV commercials.
+67.8%
-4.8%
+82.7%
Operating MarginThe 'day job' efficiency score. Out of every dollar a customer spends, this shows how many cents the company keeps after making the product AND paying for all the everyday corporate overhead (like salaries, marketing, and keeping the lights on).
+51.6%
+1.5%
+0.9%
Net MarginThe final take-home percentage. When you strip away every conceivable cost, tax, and interest payment, this is the exact number of cents the company truly gets to keep from every dollar in sales.
+30.6%
+26.1%
+9.0%
Free Cash FlowThe holy grail of corporate cash. It's the spendable, physical money left over after the business pays for its daily operations AND buys the big, expensive upgrades (like new factories or servers) it needs to survive. This is the 'free' money they can use to pay dividends or buy back stock.
$267.7M
+65.3%
+7.8%
FCF MarginThe ultimate cash conversion rate. It shows how good the company is at turning regular sales directly into cold, hard, spendable cash. A high percentage means the business is an absolute cash-printing machine.
+43.7%
+16.8%
+7.1%
Debt / EquityThe financial risk gauge. It compares how much of the company's empire was built using borrowed money (loans) versus the owners' own money (shareholders). A high number means they are heavily leveraged and playing a riskier game; a low number means they are playing it safe.
359.8%
+15.2%
-9.0%
Current RatioThe 12-month survival check. It simply compares the cash they have right now (plus things they can quickly turn into cash) against the immediate bills they absolutely must pay this year. A score above 1 means they have enough in the wallet to cover the upcoming bills without panicking.
0.20x
-99.0%
-97.9%
Total AssetsThe absolute size of the company's empire. It bundles together absolutely everything of value they own—from the cash in the register and the inventory in the warehouse, to the software patents in the vault and the factories on the ground.
Operator: Good afternoon, and welcome to Jefferson Capital's second quarter of 2026 conference call. With us today are David Burton, Founder and Chief Executive Officer; and Christo Realov, Chief Financial Officer. As a reminder, this conference call is being recorded. This call may contain forward-looking statements regarding the company's plans, initiatives and strategies and the anticipated financial performance of the company, including, but not limited to, sales and profitability, anticipated benefits of the debt purchasing market in Mexico, expectations for the market and macroeconomic factors and target performance metrics. Such statements are based upon management's current expectations, projections, estimates and assumptions. Words such as expect, believe, anticipate, think, outlook, hope and variations of such words and similar expressions identify such forward-looking statements. Forward-looking statements involve known and unknown risks and uncertainties that may cause future results to differ materially from those suggested by the forward-looking statements. Such risks and uncertainties are further disclosed in the company's most recent filings with the Securities and Exchange Commission. Shareholders, potential investors and other readers are urged to consider these factors carefully in evaluating the forward-looking statements made herein and are cautioned not to place undue reliance on such forward-looking statements. The company does not undertake to update the forward-looking statements, except as required by law. Also during this conference call, the company will be presenting certain non-GAAP financial measures. Reconciliations of the company's historical non-GAAP financial measures to their most directly comparable GAAP financial measures appear in today's earnings press release. I will now turn the call over to David Burton.
David Burton: Thank you, operator, and thanks, everyone, for joining our investor call. Let's dive into our second quarter financial performance highlights. We generated another quarter of excellent results for shareholders. The company delivered strong collections growth with collections up 18% year-over-year to $301 million, and we continue to perform well versus our underwriting expectations. The market backdrop remains attractive, and our deployments for the quarter were $152 million, up 21% versus the prior year period. Our estimated remaining collections grew 18% to $3.4 billion, driven by our continued deployment performance and attractive anticipated returns. We delivered a sector-leading cash efficiency ratio of 72.2%, driven in part by strong collections from the Bluestem and Conn's portfolio purchases. The company also generated strong cash flow for the quarter, which improved our leverage ratio to 1.71x, a level which positions us well for future growth and creates significant strategic optionality. Adjusted EPS for the quarter was $0.77. Next, I'd like to offer a brief market update and …
