Jefferson Capital (JCAP) Q3 2026 earnings summary

Executive summary

• Q3 collections rose 34.8% to $319.2M, deployments increased 110.6% to $318.0M, and ERC grew 23.3% to $3.61B YoY.

• Q3 revenue increased 22.9% to $185.5M; GAAP net income was $46.9M and diluted EPS was $0.76.

• Adjusted net income was $51.3M and adjusted EPS was $0.83; adjusted cash EBITDA rose 34% to $241M.

• Deployment growth spanned regions and asset classes, with expansion into auto finance and Mexico; leverage was 1.73x.

Financial highlights

• Q3 total revenue was $185.5M, up 22.9%; portfolio revenue rose 23.6% to $172.7M.

• Net operating income increased to $86.5M from $70.0M; operating expenses rose 22.7% to $98.4M, led by servicing costs, court costs, and agency and legal commissions.

• Q3 pre-tax income was $58.9M and net income was $46.9M, versus $45.5M and $38.4M; diluted EPS was $0.76 versus $0.59.

• Adjusted pre-tax income was $63.3M, adjusted net income was $51.3M, and adjusted EPS was $0.83.

• 9M revenue rose 17.7% to $539.5M, while net income fell 16.2% to $125.8M and adjusted net income fell 20.6% to $143.5M.

Outlook and guidance

• Available liquidity is expected to cover operating cash needs and obligations for the next 12 months and the foreseeable future.

• Forward-flow purchase commitments totaled $384.3M at September 30, with actual purchases expected to be significantly higher; $267.5M was contracted for the next 12 months.

• Management expects seasonally strong Q4 portfolio supply; auto opportunities may increase medium-term deployments, but static-pool purchase timing is difficult to predict.

• Long-term target leverage is 2x–2.5x; the expected ongoing tax rate is in the mid-20s% following Q3 catch-ups.

• Mexico is expected to contribute little near term while servicing capability and underwriting models are validated, with potential for material growth over time.