Jefferson Capital (JCAP) Q2 2026 Earnings Call: Collections Rise 18%, Auto Deployments Accelerate
Source Tradingkey
Key Takeaways
- Second-quarter collections rose 18% year over year to $301 million, supported by 2024 and 2025 deployments. Bluestem contributed $41 million and Conn’s contributed $24 million.
- Revenue increased 16% to $178 million, while adjusted EPS was $0.77 and adjusted cash EBITDA rose 12% to $226 million.
- Portfolio purchases reached $152 million, up 21%. July deployments set a monthly record of $185 million, with a significant portion allocated to performing and non-performing auto finance portfolios.
- Estimated remaining collections, or ERC, increased 18% to $3.4 billion. The company expects to collect $1.1 billion over the next 12 months.
- Cash efficiency was 72.2%. Excluding Bluestem and Conn’s, the ratio was 67.8%, reflecting higher legal-channel activity and associated court costs.
- Net debt to adjusted cash EBITDA improved to 1.71x. Management said this provides capacity for portfolio growth and strategic flexibility.
Key Financial Data
| Metric | Q2 2026 | Change / Commentary |
|---|---|---|
| Revenue | $178 million | Up 16% year over year |
| Collections | $301 million | Up 18% year over year |
| Portfolio purchases | $152 million | Up 21% year over year |
| Adjusted EPS | $0.77 | — |
| Adjusted cash EBITDA | $226 million | Up 12% year over year |
| Adjusted pre-tax income | $59 million | 51.6% adjusted pre-tax margin |
| Operating expenses | $95 million | Up 46%; driven by court costs and IPO-related stock compensation |
| Changes in recoveries | $9 million | Management cited modeling accuracy and execution |
| Cash efficiency ratio | 72.2% | 67.8% excluding Bluestem and Conn’s |
| ERC at June 30 | $3.4 billion | Up 18% year over year |
| Net debt / adjusted cash EBITDA | 1.71x | Long-term target is 2.0x–2.5x |
| Quarterly dividend | $0.24 per share | 4.8% annualized yield as of July 19 |
Business and Operating Performance
Disclaimer: For information purposes only. Past performance is not indicative of future results.
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