Jefferson Capital, Inc. (JCAP) Q3 2026 Earnings Report

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JCAP Upcoming Earnings

Jefferson Capital, Inc.'s next earnings date is estimated for March 18, 2027, based on past reporting schedules.

Q3 2026 Earnings Call Summary

Q3 2026

Earnings Call Date:Nov 12, 2026|% Change Since:7.30%|

Earnings Call Sentiment|Positive

The call was strongly positive, supported by record deployments, 35% collections growth, 23% ERC growth, 34% adjusted cash EBITDA growth, sector-leading cash efficiency, strong liquidity, and expanding opportunities in auto finance, Mexico, and bankruptcy services. The main challenges were auto finance credit and payment headwinds, deployment volatility, the short duration of ERC, and the limited near-term contribution expected from Mexico.

Company Guidance

Management said 40% of the $3.6 billion September 30th ERC is expected to be collected through 2027, with $1.1 billion expected during the next 12 months; based on third-quarter average purchase price multiples, approximately $642 million would need to be deployed globally over the same time frame to replace this runoff and maintain current ERC levels, versus $267.5 million already contracted via forward flows. The target leverage ratio is in the range of 2x to 2.5x on a sustained basis, the going forward tax rate is a mid-20s number, and Bluestem’s majority financial impact is expected to take place over 2026, with 2027 being a thin tail. Management said Mexico will not be a significant contributor to the company's growth in the very near-term but has the potential to be a significant contributor over time, and auto is expected to continue to comprise a growing deployment set.

Strong Collections GrowthThird-quarter collections increased 35% year-over-year to $319 million, driven by strong deployments in 2024, 2025, and 2026. The company said collections continued to perform well versus underwriting expectations, including $32 million attributable to the Bluestem portfolio purchase.
Record Portfolio DeploymentsThird-quarter deployments reached a record $318 million, up 111% year-over-year. Growth was broad-based across the geographic footprint, with the U.S. up 123%, the U.K. up 127%, and Latin America up 312%.
Growing Estimated Remaining CollectionsEstimated remaining collections increased 23% year-over-year to $3.6 billion, driven by continued deployment performance and attractive anticipated returns. Bluestem-related ERC represented $186 million of the U.S. distressed business.
Strong Cash EfficiencyThe company delivered a sector-leading Cash Efficiency Ratio of 72.9%, aided by strong collections from performing portfolio purchases. Excluding performing portfolio collections and expenses, the ratio was 68%, which management said was materially higher than other public companies in the sector.
Solid Quarterly ProfitabilityAdjusted EPS was $0.83. Revenue increased 23% year-over-year to $186 million, adjusted pre-tax income was $63 million, adjusted pre-tax ROE was 50.9%, and adjusted cash EBITDA increased 34% year-over-year to $241 million.
Bluestem Portfolio ContributionJefferson Capital recognized $13.4 million of portfolio revenue and $10.3 million of net operating income related to the Bluestem portfolio purchase during the third quarter. Management said the portfolio's financial contribution is expected to occur primarily during 2026, with a thin tail in 2027.
Phin Solutions AcquisitionSubsequent to quarter end, the company closed its acquisition of Phin Solutions, a provider of bankruptcy data services and technology solutions. Management said the acquisition is not material financially but strengthens the company's ability to provide originators with a more comprehensive bankruptcy recovery solution by combining Phin's bankruptcy information and technology capabilities with Jefferson Capital's servicing and debt purchasing expertise.
Expanded Bankruptcy and Insolvency CapabilitiesManagement expects Phin Solutions to create increased opportunities to provide purchasing and servicing services to originators and to translate into more opportunities in the bankruptcy and insolvency sector. The acquisition was completed at a purchase price multiple of 4.6x trailing 12-month earnings.
Attractive Credit Market BackdropManagement said near-record consumer credit balances and elevated charge-offs and delinquencies across all asset classes are creating a long runway for portfolio supply. Low unemployment was said to support expected liquidation rates on the existing portfolio and provide confidence in underwriting new purchases.
Auto Finance ExpansionAuto finance is now the company's third performing-portfolio asset class, following credit cards with Bluestem and installment loans with Conn's. Management said the company is positioned across performing, charged-off, and insolvency auto finance portfolios, including secured and unsecured accounts.
Mexico Market EntryJefferson Capital completed a second debt purchasing transaction in Mexico in August after entering the market following significant evaluation. Management described Mexico as a large market offering attractive U.S. dollar risk-adjusted returns and identified global seller relationships, more sophisticated modeling and servicer management, and substantially lower cost of capital than local competitors as competitive advantages.
Forward-Flow Deployment VisibilityAs of September 30, the company had $384 million of deployments locked in through forward flows, up approximately 20% year-over-year. It also had $267.5 million of deployments contracted via forward flows for the following 12 months.
Strong Liquidity and Balance SheetNet debt to adjusted cash EBITDA was 1.73x, significantly lower than publicly traded peers, compared with a long-term target leverage range of 2x to 2.5%. The company had a $1.15 billion senior secured revolving credit facility, with $554 million drawn at September 30, and no debt maturities until 2029.
Successful Senior Notes ReopeningOn August 20, 2026, the company issued $100 million through an opportunistic reopening of its 2030 Senior Notes. The notes were issued at 104% of face value at an implied yield of 6.6%, and proceeds were used to right-size revolving credit facility utilization after record third-quarter deployments.
Shareholder ReturnsThe board declared a regular quarterly dividend of $0.24 per share, representing a 4.9% annualized yield as of October month-end. The company also repurchased 3 million shares, approximately 5% of total legally issued shares, for $59 million, and returned $103 million to shareholders during the nine months ended September 30.
Operating Model FlexibilityManagement said the platform expenses are designed to be largely variable across performing, charge-off, and insolvency portfolios. The company also uses champion-challenger performance measures to allocate portfolio segments to the best servicers and outsources commoditized or operationally intensive activities such as running large domestic call centers.
Improved Tax RateThe quarterly tax rate was better than expected due to catch-up adjustments, after the company had been conservative on certain items during the first two quarters. Management said the going-forward tax rate should be a mid-20s percentage.
Maintained Attractive ReturnsManagement said returns on purchases remained attractive and that it remains confident in the deployment landscape. The company focuses on net unlevered IRR when underwriting portfolios, with purchase price multiples varying materially between distressed, insolvency, and performing purchases.

JCAP Earnings History

JCAP earnings history
Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Press Release
Mar 18, 2027	2026 (Q4)	0.77-	0.69	―	―
Nov 12, 2026	2026 (Q3)	0.720.83	0.74	12.16% (+0.09)
Aug 13, 2026	2026 (Q2)	0.680.77	0.81	-4.94% (-0.04)
May 14, 2026	2026 (Q1)	0.700.73	0.97	-24.74% (-0.24)
Mar 12, 2026	2025 (Q4)	0.670.69	0.46	49.03% (+0.23)
Nov 13, 2025	2025 (Q3)	0.640.74	0.63	16.90% (+0.11)
Aug 14, 2025	2025 (Q2)	0.830.81	―	―

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat Missed

Jefferson Capital, Inc. earnings date

Jefferson Capital, Inc. (JCAP) Q3 2026 Earnings Report

JCAP Q3 2026 EPS Results

JCAP Q3 2026 Revenue Results

Earnings Announcement Details

Q3 2026 Earnings Call Audio

Q3 2026 Earnings Slide Deck

Q3 2026 Earnings Call Summary

JCAP Earnings History

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