Jefferson Capital (JCAP) Q4 2025 earnings summary

Executive summary

• Achieved record quarterly collections of $245.3 million in Q4, up 41% year-over-year, and record deployments of $381 million, up 6% from Q4 2024.

• Revenue reached a record $155 million in Q4, up 30% year-over-year, with sector-leading cash efficiency ratio of 71%.

• Bluestem portfolio purchase closed in December 2025, expected to be a meaningful contributor in 2026.

• Estimated remaining collections (ERC) hit $3.4 billion, up 23% year-over-year.

• Demonstrated strong growth since 2019, with revenue CAGR of 27%, net operating income CAGR of 37%, and net income CAGR of 43%.

Financial highlights

• Adjusted EPS for Q4 was $0.69; adjusted pre-tax income was $51.1 million, up 15% year-over-year.

• Q4 revenue reached $154.8 million, up 30% year-over-year; net operating income $70.6 million, up 31%.

• Full-year 2025 revenue was $613.3 million, up 42% vs. 2024; net operating income $316.5 million, up 44%.

• Adjusted cash EBITDA reached $178 million in Q4, up 34% year-over-year; full-year 2025 was $773.6 million.

• Operating expenses were $84 million, up 30% year-over-year; court costs rose 86% to $17.7 million due to increased legal channel volumes.

Outlook and guidance

• Bluestem portfolio expected to contribute meaningfully to 2026 results, substituting for diminishing Conn's portfolio impact.

• Court costs expected to remain elevated due to increased inventory of suit-eligible accounts.

• $1,104 million of ERC expected to be collected in the next 12 months; $224.8 million of deployments contracted via forward flow.

• Target leverage ratio remains 2x-2.5x long-term; leverage improved to 1.82x as of December 31.

• No significant changes in collection performance expected; seasonality anticipated in Q1.