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 underpenetrated asset classes such as telecom, auto, and utilities receivables.

• Operates through a variable cost model, leveraging proprietary analytics, outsourced collections, and a co-sourced Mumbai operation to optimize cost-to-collect.

• Expanded via strategic acquisitions, including Canaccede in Canada and Refinancia in Colombia, and recently acquired a large mixed portfolio from Conn's, Inc.

• Maintains long-term client relationships, with forward flow agreements and a diversified client base across asset classes and geographies.

Financial performance and metrics

• Reported net income of $128.9M in 2024, $111.5M in 2023, and $64.2M for Q1 2025; adjusted EBITDA was $242.1M in 2024, $168.2M in 2023, and $92.0M for Q1 2025.

• Revenue grew at a 24.7% CAGR and net income at a 42.0% CAGR from 2019 to 2024.

• As of March 31, 2025, ERC was $2.84B, up 3.4% from year-end 2024; leverage ratio was 2.17x net debt to adjusted cash EBITDA.

• Collections in 2024 were $584.6M, up 35.6% from 2023, with US collections at $420.3M.

• Cash efficiency ratio was 68.7% in 2024, outperforming primary competitors.

Use of proceeds and capital allocation

• Net proceeds of $3.7M (at $16.00/share) will be used to repay borrowings under the Revolving Credit Facility and for general corporate purposes, including growth, technology, and potential acquisitions.

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