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Jefferson Capital, Inc. (JCAP)
NASDAQ:JCAP
US Market
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Jefferson Capital, Inc. (JCAP) AI Stock Analysis

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JCAP

Jefferson Capital, Inc.

(NASDAQ:JCAP)

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Neutral 62 (OpenAI - 5.2)
Rating:62Neutral
Price Target:
$22.50
▲(13.52% Upside)
Action:Reiterated
Date:05/15/26
The score is driven primarily by mixed financial quality—strong reported profitability but materially weakened 2025 cash generation and elevated leverage. Attractive valuation (low P/E and solid yield) and a generally positive earnings-call outlook on collections, leverage, and liquidity help offset weak technical momentum and cost/macro risks.
Positive Factors
High margins & revenue growth
Sustained revenue expansion and unusually high operating and net margins signal durable earnings power for a receivables purchaser. High margins provide a cushion against portfolio mix swings and funding cost variability, supporting long‑term earnings resilience and ROE generation even amid cyclical headwinds.
Negative Factors
Severe 2025 cash flow deterioration
A near‑collapse in operating and free cash flow is a structural red flag: it reduces internal funding for portfolio purchases, increases reliance on revolver or bond markets, and undermines the sustainability of dividends and buybacks. If driven by collections or timing shifts, recovery must be demonstrated to restore confidence.
Read all positive and negative factors
Positive Factors
Negative Factors
High margins & revenue growth
Sustained revenue expansion and unusually high operating and net margins signal durable earnings power for a receivables purchaser. High margins provide a cushion against portfolio mix swings and funding cost variability, supporting long‑term earnings resilience and ROE generation even amid cyclical headwinds.
Read all positive factors

Jefferson Capital, Inc. (JCAP) vs. SPDR S&P 500 ETF (SPY)

Jefferson Capital, Inc. Business Overview & Revenue Model

Company Description
Jefferson Capital, Inc. is a company that specializes in financial recovery and debt resolution services, operating across the United States, the United Kingdom, Canada, and Latin America. Its primary business involves acquiring large bundles of c...
How the Company Makes Money
Jefferson Capital primarily makes money by purchasing charged-off or non-performing consumer receivables portfolios at a discount to their face value and then collecting payments on those accounts over time. Revenue is generated from cash collecti...

Jefferson Capital, Inc. Earnings Call Summary

Earnings Call Date:Aug 13, 2026
(Q2-2026)
|
% Change Since: |
Next Earnings Date:Nov 12, 2026
Earnings Call Sentiment Positive
The call emphasized multiple strong operational and financial achievements — double-digit growth in collections, deployments and revenue; record forward-flow commitments; improved leverage; best-in-class cash efficiency; product and geographic expansion; and shareholder returns (dividend and buyback). These positives are balanced by notable cost pressures driven by rising legal channel activity and IPO-related stock compensation, timing mismatches in certain recovery types (notably some auto deficiency and repossession cases), and the requirement to deploy material capital (~$565M) to replace runoff with only $312M currently contracted for the next 12 months. Overall, the favorable growth, efficiency, liquidity and momentum (including the July deployment milestone and auto expansion) outweigh the operating cost and timing challenges, yielding a constructive outlook.
Positive Updates
Collections Growth
Collections rose 18% year-over-year to $301 million, driven by strong deployments in 2024–2025 and sizable contributions from recent portfolio purchases (Bluestem: $41M; Conn's: $24M).
Negative Updates
Operating Expense Increase
Operating expenses rose to $95 million, up 46% year-over-year (or +35% when adjusting prior year for IPO-related items and excluding stock-based compensation), driven primarily by higher court costs from increased legal activity and noncash stock-based compensation from the IPO.
Read all updates
Q2-2026 Updates
Negative
Collections Growth
Collections rose 18% year-over-year to $301 million, driven by strong deployments in 2024–2025 and sizable contributions from recent portfolio purchases (Bluestem: $41M; Conn's: $24M).
Read all positive updates
Company Guidance
The company gave no formal forward-looking numerical guidance but outlined clear targets and expectations and reported key metrics: Q2 collections were $301M (+18% YoY) with deployments of $152M (+21% YoY) and estimated remaining collections (ERC) of $3.4B (+18% YoY), of which $1.1B is expected to be collected in the next 12 months and 46% of ERC through 2027 (ERC includes $218M Bluestem and $83M Conn’s distressed). Management said roughly $565M of deployments would be needed to replace 12‑month runoff, noted record forward flows of $480.7M (with $312M contracted for the next 12 months), and highlighted a July deployment month of $185M and an inaugural, initially modest entry into Mexico. Financial targets and outcomes cited include revenue $178M (+16% YoY), adjusted cash EBITDA $226M (+12% YoY), adjusted EPS $0.77, changes in recoveries $9M, operating expenses $95M (up 46% YoY; +35% ex‑IPO items), adjusted pretax income $59M (adjusted pretax ROE 51.6%), a cash efficiency ratio of 72.2% (67.8% excluding Bluestem/Conn’s; expect high‑60s ex‑those), net debt/adjusted cash EBITDA 1.71x (long‑term target 2.0–2.5x), RCF capacity $1.15B with $226M drawn (plus $300M drawn to repay notes), a $0.24 quarterly dividend (4.8% annualized) and a tactical $59M repurchase (3M shares, ~5%).

Jefferson Capital, Inc. Financial Statement Overview

Summary
Strong profitability and revenue growth support the score (income statement strength), but it is offset by rising leverage (debt-to-equity ~3.60 in 2025) and a severe 2025 cash flow deterioration (free cash flow fell to ~$0.3M vs. ~$162M in 2024), which raises sustainability and liquidity-conversion risk.
Income Statement
78
Positive
Balance Sheet
58
Neutral
Cash Flow
22
Negative
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2019Dec 2018
Income Statement
Total Revenue659.62M613.29M433.30M323.07M45.09M31.21M
Gross Profit544.66M415.58M308.40M238.44M41.10M29.50M
EBITDA173.85M329.47M158.06M121.22M59.17M60.01M
Net Income155.02M187.97M105.30M111.52M44.41M54.37M
Balance Sheet
Total Assets2.08B2.09B1.65B1.12B812.78M590.41M
Cash, Cash Equivalents and Short-Term Investments20.41M47.55M35.51M14.37M3.28M8.71M
Total Debt1.41B1.71B1.19B770.93M202.79M24.61M
Total Liabilities1.61B1.61B1.27B811.78M223.90M42.54M
Stockholders Equity476.19M476.13M382.53M274.79M588.87M547.86M
Cash Flow
Free Cash Flow220.06M267.73M162.00M118.99M-180.21M-281.29M
Operating Cash Flow221.14M268.81M168.21M120.22M-13.63M-6.30M
Investing Cash Flow-340.98M-401.94M-542.37M-403.41M-321.31M-241.75M
Financing Cash Flow98.02M149.70M388.82M289.86M-4.17M34.97M

Jefferson Capital, Inc. Risk Analysis

Jefferson Capital, Inc. disclosed 78 risk factors in its most recent earnings report. Jefferson Capital, Inc. reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Jefferson Capital, Inc. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
$1.10B3.355.33%6.44%0.84%-12.02%
66
Neutral
$7.51B9.8623.07%7.01%6.93%19.96%
62
Neutral
$1.33B9.2736.53%4.84%72.54%35.16%
62
Neutral
$762.37M-3.07-26.80%12.25%-388.78%
55
Neutral
$6.65B3.83-15.92%6.20%10.91%7.18%
54
Neutral
$104.81M-0.34-7.18%37.29%-13.83%-154.13%
* General Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JCAP
Jefferson Capital, Inc.
24.00
6.04
33.62%
PRAA
Pra Group
20.60
4.40
27.16%
OMF
OneMain Holdings
65.68
12.36
23.18%
YRD
Yiren Digital
1.19
-4.50
-79.10%
FINV
FinVolution Group
4.38
-4.43
-50.28%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: May 15, 2026