Jefferson Capital — Third Quarter 2026 Earnings Summary

Financial Performance:

• Total revenue increased 22.9% year-over-year to $185.5 million in Q3 2026, compared to $150.8 million in Q3 2025.
• Pre-tax income was $58.9 million, with net income of $46.9 million and EPS of $0.76.
• Adjusted pre-tax income was $63.3 million, with adjusted net income of $51.3 million and adjusted EPS of $0.83.
• Collections grew 34.8% to $319.2 million, up from $236.8 million in the prior year period.
• Deployments (purchases of receivables) increased 110.6% to $318.0 million, compared to $151.0 million in Q3 2025.
• Estimated Remaining Collections (ERC) rose 23.3% to $3.61 billion, up from $2.93 billion in Q3 2025.
• Operating expenses increased 22.7% to $98.4 million, driven by a $20.1 million rise in servicing expenses.
• Cash Efficiency Ratio was 72.9%, compared to 72.2% in Q3 2025.
• Leverage ratio increased to 1.73x as of September 30, 2026, from 1.59x in the prior year period.
• Total portfolio revenue for the nine months ended September 30, 2026, was $502.6 million, up from $422.4 million in the prior year period.
• Net income for the nine months ended September 30, 2026, was $125.8 million, compared to $150.2 million in the prior year period.

Guidance and Future Outlook:

• Management expressed confidence in generating attractive shareholder returns in the near and long term.
• The company highlighted low leverage and ample capital resources to capitalize on future opportunities.
• The company noted triple-digit growth in deployments across the United States, United Kingdom, and Latin America.

Business Segments and Product Lines:

• Geographic collection growth in Q3 2026 included: United States ($240.3 million, +31.4%), Canada ($35.1 million, +21.0%), United Kingdom ($12.3 million, +10.8%), and Latin America ($31.5 million, +126.6%).
• Geographic deployment growth in Q3 2026 included: United States ($238.7 million, +122.7%), Canada ($33.3 million, +8.1%), United Kingdom ($9.3 million, +126.8%), and Latin America ($36.7 million, +312.4%).
• The Bluestem portfolio purchase, closed in Q4 2025, contributed $32.2 million to US collections and $185.8 million to US ERC in Q3 2026.
• The company recognized $13.4 million in portfolio revenue and $10.3 million in net operating income related to the Bluestem portfolio in Q3 2026.
• As of September 30, 2026, the company had $384.3 million in committed forward flows.

Market and Competitive Landscape:

• The company maintains a leadership position in hard-to-value and hard-to-service asset classes.
• Client base includes Fortune 500 creditors, banks, fintech origination platforms, telecommunications providers, credit card issuers, and auto finance companies.
• Operations span the United States, Canada, the United Kingdom, and Latin America.

Risks and Challenges:

• Forward-looking statements cite risks including deterioration in economic or inflationary environments, interest rate changes, and exchange rate fluctuations.
• Risks include the ability to replace nonperforming loan portfolios, collection sufficiency, and third-party service provider performance.
• Regulatory risks involve changes in bankruptcy/collection laws, compliance with data privacy regulations (e.g., GDPR), and potential enforcement actions by authorities like the CFPB.
• Litigation risks include class action suits, adverse outcomes in pending proceedings, and potential fines or penalties.
• Financial risks include the ability to refinance indebtedness, comply with financing covenants, and manage goodwill impairment charges.

Management Commentary and Tone:

• David Burton, Chairman and CEO, described third-quarter performance as "excellent" with significant momentum in all key business aspects.
• Management attributed deployment growth to leadership in hard-to-value asset classes, geographic platform breadth, and strong client relationships.
• The tone was confident regarding the company's ability to generate shareholder returns and take advantage of market opportunities.

Other Key Points:

• The Board of Directors declared a quarterly cash dividend of $0.24 per share, payable on December 3, 2026, to shareholders of record as of November 24, 2026.
• On August 15, 2026, the company paid off $300 million in 2026 senior unsecured notes using proceeds from its Revolving Credit Facility (RCF).
• On August 20, 2026, the company issued an additional $100 million in 8.25% Senior Notes due 2030.
• As of September 30, 2026, the company had $554 million drawn under the RCF.
• During the nine months ended September 30, 2026, the company repurchased $58.9 million of common stock.
• Stock-based compensation was $24.995 million for the nine months ended September 30, 2026, compared to $8.850 million in the prior year period.
• A webcast to discuss results was scheduled for November 12, 2026, at 5:00 p.m. ET.