Jefferson Capital's Deployments Double as Collections Accelerate

The Tip Desk · November 13, 2026 · 3 min read

The receivables buyer spent $318.0 million on portfolios in the third quarter, up 110.6% from a year earlier, as collections reached a record $319.2 million.

Jefferson Capital, Inc. (JCAP), an analytically driven purchaser of charged-off, insolvency and active consumer accounts, more than doubled third-quarter deployments to $318.0 million, a 110.6% increase from $151.0 million a year earlier. The company said that was the largest third-quarter deployment in its history, with triple-digit year-over-year growth in the United States, the United Kingdom and Latin America.

Collections from purchased receivables reached a record $319.2 million, up 34.8% from $236.8 million in the third quarter of 2025. That year-over-year rate accelerated from 17.7% in the second quarter and 18.8% in the first quarter. United States collections were $240.3 million, including $32.2 million from the Bluestem portfolio purchase that closed in the fourth quarter of 2025. Latin America collections more than doubled to $31.5 million.

Deployments followed the same inflection. United States purchases were $238.7 million, after a 26.4% year-over-year decline in the first quarter and 15.5% growth in the second. Latin America deployments rose to $36.7 million. As of September 30, 2026, the company had $384.3 million in committed forward flows.

Total revenue climbed 22.9% to $185.5 million from $150.8 million a year earlier, a pace that quickened from 16.2% in the second quarter and 13.9% in the first. The company said the increase was primarily the result of strong deployments in prior periods. For the quarter it recognized $13.4 million of portfolio revenue and $10.3 million of net operating income related to the Bluestem purchase.

Estimated remaining collections rose 23.3% to $3,610.8 million from $2,929.6 million a year earlier. United States ERC was $2,586.0 million, including $185.8 million from Bluestem.

Pre-tax income was $58.9 million, compared with $45.5 million a year earlier. Net income was $46.9 million, or $0.76 a share. Adjusted pre-tax income was $63.3 million, adjusted net income $51.3 million, and adjusted EPS $0.83.

Operating expenses rose 22.7% to $98.4 million from $80.2 million a year earlier. The company said the increase was primarily a $20.1 million rise in servicing expenses, including $6.3 million in higher court costs and $8.5 million in agency and legal commission expense, including $3.1 million related to Bluestem, partially offset by a $2.4 million decrease in salaries and benefits. The cash efficiency ratio was 72.9%.

The leverage ratio was 1.73x at September 30, 2026, compared with 1.59x a year earlier, after rising from 1.71x at the end of the second quarter of 2026. The company said the year-over-year increase primarily reflected higher borrowings to fund portfolio purchases and continued business growth. At September 30, 2026, it had $554 million drawn under the revolving credit facility. On August 15, 2026, $300 million of 2026 senior unsecured notes matured and were paid off using the RCF; on August 20 it issued an additional $100 million of 8.25% senior notes due 2030.

Chairman and Chief Executive Officer David Burton said the company was well positioned to take advantage of opportunities ahead with low leverage and ample capital resources. The board declared a quarterly cash dividend of $0.24 a share, payable December 3, 2026, to shareholders of record as of November 24, 2026.