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, proprietary analytics, and a variable cost structure leveraging both internal and external servicing resources.

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

• Maintains long-term client relationships, with forward flow agreements providing contractual certainty and recurring portfolio purchases.

• Recent growth driven by strategic acquisitions (Canaccede in Canada, Refinancia in Colombia) and large portfolio purchases (Conn's, Bluestem).

Financial performance and metrics

• Reported net income of $128.9M in 2024, $111.5M in 2023, and $150.2M for the nine months ended September 30, 2025.

• Revenue grew to $433.3M in 2024, up 34.1% from $323.1M in 2023; net operating income was $220.3M in 2024.

• As of September 30, 2025, ERC (estimated remaining collections) was $2.93B, up 6.7% from December 2024.

• Adjusted net income for 2024 was $162.3M; adjusted cash EBITDA was $430.8M in 2024 and $594.3M for the twelve months ended September 30, 2025.

• Leverage ratio (net debt/adjusted cash EBITDA) was 1.59x as of September 30, 2025, lower than primary competitors.

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

Use of proceeds and capital allocation

• No proceeds from this offering will go to the company; all proceeds go to selling stockholders.

• Company will repurchase 3,000,000 shares from underwriters, funded by borrowings under the Revolving Credit Facility.

• Recent capital allocation includes large portfolio purchases and ongoing quarterly dividends of $0.24 per share.