Jefferson Capital (JCAP) Registration Filing summary

Company overview and business model

• Purchases and manages charged-off and insolvency consumer accounts in the US, Canada, UK, and Latin America, focusing on nonperforming loans and receivables at a discount to face value.

• Core strengths include compliance, analytics, and operational efficiency, with a variable cost structure and proprietary technology platforms.

• Operates through four geographic segments and two main business lines: Distressed (nonperforming loans) and Insolvency (bankruptcy-related receivables).

• Recent expansion includes the acquisition of Canaccede in Canada and Refinancia in Colombia, and a major portfolio purchase from Conn's, Inc.

Financial performance and metrics

• Net income for 2024 was $128.9 million, up from $111.5 million in 2023; Q1 2025 net income was $64.2 million.

• Adjusted EBITDA reached $242.1 million in 2024 and $92.0 million in Q1 2025.

• Revenue for 2024 was $433.3 million, a 34% increase over 2023, driven by increased deployments and collections.

• As of March 31, 2025, ERC (estimated remaining collections) was $2.84 billion, with 76% in the US.

• Leverage ratio (net debt/adjusted cash EBITDA) was 2.17x as of March 31, 2025.

Use of proceeds and capital allocation

• Proceeds from the IPO will be used to repay borrowings under the Revolving Credit Facility, fund growth, technology development, working capital, and potential acquisitions.

• No proceeds will be received from shares sold by selling stockholders.