Jefferson Capital, Inc. (JCAP)

Price$20.96Cached quoteAs of 2026-09-16 10:18 UTC

AI: Fair-priced

Price checkThe valuation is reasonable, balancing a low earnings multiple against meaningful debt risk.

At the observed quote, the shares cost about 8.7 times the $2.45 of diluted earnings reported across the latest four quarters and yield about 4.5% on the current $0.96 annualized dividend. The roughly $1.22 billion market value also equals about 2.6 times June equity of $476 million. That looks inexpensive, not decisively cheap: $1.41 billion of net debt and uncertainty around future collections justify a discount. This trade-off supports a fair-priced verdict.

Big pictureRapid growth has produced real cash, although fresh receivables require heavy continuing investment.

Revenue rose from $323 million in 2023 to $613 million in 2025, while net income reached $188 million and operating cash flow reached $269 million. However, first-half 2026 operating cash flow fell to $82.9 million from $130.6 million a year earlier. Jefferson also spent $152.2 million buying receivables during the latest quarter. Those purchases are core business investment, so subtracting only ordinary capital spending would overstate free cash flow, meaning cash left after maintaining and growing the operation.

Business strengthA large recovery pool and unused credit support liquidity, but debt magnifies forecasting mistakes.

June borrowings were $1.406 billion against only $20.4 million of unrestricted cash. Net debt equaled 1.71 times adjusted cash earnings before interest and taxes, slightly better than 1.76 times a year earlier, and usable revolving-credit availability was $855 million. The strongest bull evidence is $3.36 billion of estimated remaining collections, up 18%, plus $481 million of committed future purchases. However, those collections are management estimates rather than cash already received; weaker recoveries would reduce both asset value and debt-paying capacity.

What could change the storyCollection efficiency and disciplined funding will determine whether today’s modest valuation becomes genuinely cheap.

The clearest upside signal would be continued collection growth while cash efficiency recovers toward the prior 75.9%, versus 72.2% recently. A consumer downturn could produce cheaper portfolios but also reduce payments on existing accounts. Jefferson spent $58.9 million retiring three million shares; outstanding shares fell from 58.3 million at year-end to 57.4 million in June despite $16.9 million of first-half stock compensation. Meanwhile, dividends require roughly $55 million annually and new notes cost 8.25%, so portfolio returns must comfortably exceed funding costs.

AI: News

Mixed Second-Quarter ResultsCollections and future recoveries grew, but higher servicing costs kept adjusted profit nearly flat.

On August 13, Jefferson reported second-quarter collections of $300.9 million, up 18%, revenue growth of 16%, and an 18% increase in estimated remaining collections to $3.36 billion. However, reported net income fell 13% and adjusted net income was nearly unchanged as operating expenses rose 46%. Shares closed 11.1% higher the next session. The timing suggests the results influenced the move, but does not prove causation.

Costly Long-Term FundingJefferson added long-term funding while preserving credit capacity to purchase more consumer receivables.

On August 20, Jefferson issued $100 million of senior unsecured notes paying 8.25% interest and maturing in May 2030, supplementing $500 million of existing notes with identical terms. Proceeds were designated primarily to repay revolving-credit borrowings, which may later be redrawn for portfolio purchases or acquisitions. The transaction extends funding but adds about $8.25 million of annual interest before any savings elsewhere, reinforcing the need for attractive returns on newly purchased receivables.

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Revenue

2023

2024

2025

Net income

2023

2024

2025

Free cash flow

2023

2024

2025

Total cash / debt

CashTotal debt

2023

2024

2025

Financial statements

	2025	2024	2023
Revenue	$613.3M	$433.3M	$323.1M
Operating expenses	$294.4M	$209.6M	$155.5M
Operating income	$316.5M	$220.3M	$164.1M
Operating margin	51.61%	50.83%	50.78%
EBITDA	$321.7M	$222.9M	$166.4M
EBITDA margin	52.46%	51.43%	51.51%
Net income	$188.0M	$128.9M	$111.5M
Net profit margin	30.65%	29.74%	34.52%
Basic EPSper basic share	$5.64	$2.21	$1.91
Diluted EPSper diluted share	$5.64	$2.21	$1.91

Review official source filings ↗

Owners

Reported shareholders

Reference date Jun 30, 2026

≈56.97%of listed shares

JCF Associates IV L.P. / JCF IV JCAP Holding L.P. / Flowers J. Christopher / JCF Associates IV Ltd. / JCF IV JCAP Holding GP LLC32.72M shares · Jan 9, 2026

View holders

Top 20 reported holders of JCAP
Holder	% owned
JCF Associates IV L.P. / JCF IV JCAP Holding L.P. / Flowers J. Christopher / JCF Associates IV Ltd. / JCF IV JCAP Holding GP LLC	≈56.97%32.72M shares
Burton David M.	≈5.91%3.39M shares
WELLINGTON MANAGEMENT GROUP LLP	4.04%2.32M shares
ADAGE CAPITAL PARTNERS GP, L.L.C.	3.23%1.86M shares
WILLIAM BLAIR INVESTMENT MANAGEMENT, LLC	3.15%1.81M shares
PRINCIPAL FINANCIAL GROUP INC	2.98%1.71M shares
BlackRock, Inc.	2.96%1.7M shares
Nantahala Capital Management, LLC	2.61%1.5M shares
PUNCH & ASSOCIATES INVESTMENT MANAGEMENT, INC.	2.52%1.45M shares
GOLDMAN SACHS GROUP INC	1.67%958.81K shares
GEODE CAPITAL MANAGEMENT, LLC	1.38%790.88K shares
VANGUARD CAPITAL MANAGEMENT LLC	1.31%752.39K shares
Zellmann Mark Joseph	≈1.21%693.75K shares
CITADEL ADVISORS LLC	1.09%626.87K shares
UBS Group AG	1.01%582.74K shares
North Reef Capital Management LP	0.92%530.6K shares
STATE STREET CORP	0.82%472.41K shares
AMERICAN CENTURY COMPANIES INC	0.80%456.93K shares
Pfohl Matthew James	≈0.78%448.87K shares
Person Penelope JoAnn	≈0.76%437.51K shares

Percentages use 57.44M shares of this listed class outstanding on Jun 30, 2026. ≈ compares the latest reported holding with a share total from a different date; it is not a confirmed current stake.

Gray completes the 100% scale. Reported positions may overlap; holders have different reporting dates.

Source: SEC Form 4 ↗Updated Sep 29, 2026 · Quarterly data

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys0$0.00 disclosed value

Sells (SEC code S)5$360.82M disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
Jan 9, 2026Form 4	Burton David M.SEE REMARKS	SellCommon Stock	385.0K	$20.50	$7.89M	3.39M
Jan 9, 2026Form 4	JCF Associates IV L.P. +4TenPercentOwner	SellCommon Stock · indirect	11.00M	$19.63	$215.93M	32.72M
Jun 27, 2025Form 4	JCF Associates IV L.P. +4TenPercentOwner	SellCommon Stock · indirect	6.02M	$15.00	$90.32M	30.23M
Jun 27, 2025Form 4	JCF Associates IV L.P. +4TenPercentOwner	SellCommon Stock · indirect	2.69M	$15.00	$40.31M	13.49M
Jun 27, 2025Form 4	Burton David M.SEE REMARKS	SellCommon Stock	424.3K	$15.00	$6.36M	3.78M

Review ownership filings at SEC.gov ↗

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Jefferson Capital, Inc. (JCAP)

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