0001104659-26-027199
SEC filingJefferson Capital, Inc. reported strong financial results for fiscal year 2025, driven by significant growth in its core portfolio purchasing and collection business. Total revenues increased 41.5% year-over-year to $613.3 million, primarily fueled by a 43.1% increase in total portfolio revenue to $566.4 million. Net operating income grew 43.7% to $316.5 million, while net income attributable to the company rose 45.8% to $188.0 million. The company completed its initial public offering in June 2025 and executed strategic acquisitions including the Conn's Portfolio in December 2024 and the Bluestem portfolio in December 2025. Key business metrics showed robust performance with deployments increasing 15.0% to $832.0 million and collections growing 70.8% to $998.7 million. The company maintained a strong liquidity position with $23.2 million in unrestricted cash and $768.4 million available under its revolving credit facility as of December 31, 2025.
Jefferson Capital delivered exceptional financial performance in fiscal year 2025, with total revenues increasing 41.5% to $613.3 million compared to $433.3 million in 2024. This growth was primarily driven by the company's core portfolio revenue, which grew 43.1% to $566.4 million. Net operating income increased 43.7% to $316.5 million, while net income attributable to Jefferson Capital rose 45.8% to $188.0 million. The company's operating margin remained strong at 51.6%. Key business metrics showed significant improvement, with deployments increasing 15.0% to $832.0 million and collections surging 70.8% to $998.7 million. The company completed its initial public offering in June 2025 and executed strategic acquisitions including the Conn's Portfolio in December 2024 and the Bluestem portfolio in December 2025, which contributed to revenue growth.
Revenue growth was driven by strong performance across multiple segments and business lines. The United States segment, representing 73.4% of total revenue, grew 52.3% to $450.3 million, primarily due to deployment growth including contributions from the Conn's portfolio acquisition ($95.8 million) and Bluestem acquisition ($5.4 million). The Canada segment grew 32.5% to $71.8 million, driven by higher deployments and continued organic growth in servicing revenue. Latin America increased 29.5% to $40.4 million due to strong collection performance. The United Kingdom segment declined 2.9% to $50.8 million primarily due to lower deployments. By revenue type, portfolio revenue represented 92.4% of total revenue at $566.4 million, while credit card revenue contributed $7.2 million (1.2%) and servicing revenue contributed $39.7 million (6.5%).
The company maintained strong profitability metrics with net operating income margin of 51.6%. Total operating expenses increased 40.5% to $294.4 million, primarily driven by higher servicing expenses ($56.3 million increase) related to increased collections and court costs, and increased salaries and benefits ($16.5 million increase) due to personnel from acquisitions and stock-based compensation. Servicing expenses as a percentage of revenue remained relatively stable at 30.5% compared to 30.2% in the prior year. Salaries and benefits as a percentage of revenue improved to 10.5% from 11.1%. The provision for income taxes increased to $30.5 million from $8.7 million, reflecting the change in taxpayer status to a corporation as a result of the reorganization related to the IPO.
The company generated strong operating cash flow of $268.8 million, a 59.8% increase from the prior year. Investing activities used $401.9 million primarily for purchases of receivables, while financing activities provided $149.7 million from net debt activities. The balance sheet shows total assets of $2.09 billion, with investments in receivables, net of $1.93 billion representing the core business. Total liabilities were $1.61 billion, including notes payable, net of $1.41 billion. Stockholders' equity was $476.1 million. The company maintained a strong liquidity position with $23.2 million in unrestricted cash and $768.4 million available under its revolving credit facility as of December 31, 2025. Net debt to adjusted cash EBITDA leverage improved to 1.82x from 2.72x in the prior year.
The company's outlook is supported by continued growth in deployments and collections, with estimated remaining collections (ERC) increasing 23.1% to $3.38 billion. Management expects to continue investing in portfolio purchases while maintaining disciplined underwriting. Strategic priorities include leveraging the public company platform for growth, optimizing capital structure, and continuing geographic expansion. Key risk factors include regulatory changes in debt collection practices, competition in portfolio purchasing, and economic conditions affecting consumer debt repayment. The company declared a dividend of $0.24 per share payable in April 2026, demonstrating confidence in its cash generation capabilities. Management believes the company has sufficient liquidity to meet operating needs for the next twelve months and foreseeable future.