Jefferson Capital Reports Third Quarter 2026 Results

Record Collections Grow 35% to $319.2 Million and Deployments grow 111% to $318.0 Million
Record Estimated Remaining Collections (“ERC”) up 23% to $3.6 Billion
Pre-tax Income of $58.9 Million with Net Income of $46.9 Million and EPS of $0.76
Adjusted Pre-tax Income of $63.3 Million with Adjusted Net Income of $51.3 Million and Adjusted EPS of $0.83
Board of Directors Declares Quarterly Cash Dividend of $0.24 per Share

MINNEAPOLIS, Nov. 12, 2026 (GLOBE NEWSWIRE) -- Jefferson Capital, Inc. (“Jefferson Capital, the “Company”), a leading analytically driven purchaser and manager of charged-off, insolvency and active consumer accounts, today announced its third quarter 2026 financial results.

Third quarter performance was excellent and we continue to build significant momentum in all key aspects of the business,” said David Burton, Chairman and Chief Executive Officer. “We are confident in our ability to generate attractive shareholder returns in the near and long term.”

“We delivered the largest third quarter deployments in the Company’s history, with triple digit growth year-over-year in the United States, the United Kingdom and Latin America – a testament to our leadership position in hard-to-value and hard-to-service asset classes, the growing geographic breadth of our platform, and the strength of our client relationships. We are well positioned to take advantage of the opportunities ahead with low leverage and ample capital resources.”

Third Quarter 2026 Highlights (vs. Third Quarter 2025)

• Record collections grew 35% to $319.2 million
• Deployments up 111% to $318.0 million
• Record ERC rose 23% to $3.6 billion
• Record revenue climbed 23% to $185.5 million
• Sector-leading Cash Efficiency Ratio of 72.9%
• Leverage ratio* was 1.73x as compared to 1.59x
• Pre-tax Income of $58.9 million with Net Income of $46.9 million and EPS of $0.76
• Adjusted Pre-tax Income* of $63.3 million with Adjusted Net Income* of $51.3 million and Adjusted EPS of $0.83

Collections
The following table summarizes total collections by geographic area:

• Collections from purchased receivables increased 34.8% or $82.4 million to $319.2 million during the third quarter of 2026 versus $236.8 million during the same quarter in 2025
• Collections in the United States included $32.2 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:

• ERC in the United States included $185.8 million from the Bluestem portfolio purchase which closed in the fourth quarter 2025
  

Deployments
The following table summarizes the total deployments by geographic area:

• The Company invested $318.0 million during the quarter to acquire receivable portfolios, up 110.6% compared to $151.0 million in the third quarter 2025
• As of September 30, 2026, the Company had $384.3 million in committed forward flows

Revenues

• Total revenues increased $34.6 million for the quarter, or 22.9%, to $185.5 million compared to $150.8 million for the third quarter 2025. The growth was primarily the result of strong deployments in prior periods
  

Operating Expenses

• Total operating expenses increased $18.2 million, or 22.7% to $98.4 million compared to $80.2 million for the third quarter 2025. The increase was primarily due to a $20.1 million increase in servicing expenses, including $6.3 million in higher court costs, $8.5 million in agency and legal commission expense including $3.1 million related to the Bluestem portfolio purchase, partially offset by a $2.4 million decrease in salaries and benefits (including $0.7 million on lower stock-based compensation) and $0.6 million lower depreciation and amortization
  
  
• For the third quarter 2026, the Company recognized portfolio revenue of $13.4 million and net operating income of $10.3 million related to the Bluestem portfolio purchase
  

Leverage Ratio, Liquidity and Capital Resources

• Leverage ratio* was 1.73x at September 30, 2026 compared to 1.59x at September 30, 2025 primarily reflecting increased borrowings to fund portfolio purchases and continued business growth
• At September 30, 2026, the Company had $554 million drawn under the RCF
• On August 15, 2026, the Company’s $300 million 2026 senior unsecured notes matured and were paid off using the RCF
• On August 20, 2026 the Company issued an additional $100 million aggregate principal amount of 8.25% Senior Notes due 2030 (the “Add-On Notes”) to the 2030 Notes dated May 2, 2025. The Add-On Notes will mature on May 15, 2030.

Dividend

The Board of Directors declared a quarterly cash dividend of $0.24 per share on its outstanding common stock, payable on December 3, 2026, to shareholders of record as of the close of business on November 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 third quarter 2026 financial results is scheduled for today, November 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, 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
IR@jcap.com

Media Relations
Doug.Donsky@icrinc.com

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, 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