Jefferson Capital, Inc. (JCAP) AI Stock Analysis

Jefferson Capital, Inc. provides debt recovery solutions and related services across the United States, the United Kingdom, Canada, and Latin America. Founded in 2002 and based in Minneapolis, Minnesota, the company primarily purchases portfolios of consumer receivables at discounts to face value. It manages these portfolios by collaborating with individuals as they repay obligations and work toward financial recovery. The assets it purchases include credit card, secured and unsecured automotive, utilities, telecom, and other receivables. Additionally, Jefferson Capital offers debt servicing and portfolio management services to credit originators handling nonperforming loans.

Revenue expanded from $31.2M in FY2018 to $613.3M in FY2025, recording a 5-year revenue CAGR of 118.9% from FY2017 to FY2025. In FY2025, revenue climbed 41.5% from $433.3M in FY2024, gross margin reached 67.8%, operating margin stood at 51.6%, and net income was $188.0M, or $3.26 per share. Over the trailing twelve months ended June 30, 2026, revenue totaled $642.7M, operating margin was 61.2%, and profit margin was 24.1%. In the quarter ended June 30, 2026, revenue increased 11.5% year-over-year, while quarterly earnings declined 96.0%.

As of June 30, 2026, Jefferson Capital held $20.4M in cash and short-term investments alongside $1.41B in total debt, leading to net debt of $1.39B. Shareholders' equity was $476.2M, resulting in a debt-to-equity ratio of 2.95 and a current ratio of 0.12. In FY2025, operating cash flow reached $268.8M, capital expenditures were $1.1M, and free cash flow totaled $267.7M. Cash outflows in FY2025 included $63.5M in dividends paid, while the share count rose 181.0% over 5 years.

At $20.53 on October 16, 2026, Jefferson Capital had a market capitalization of $1.18B and an enterprise value of $2.48B. Its trailing P/E of 22.6x is above the 12.1x median of its US-listed Financial Services peers. In contrast, its price-to-sales multiple of 1.8x is below the peer median of 3.2x, and its EV-to-EBITDA of 9.2x sits below the peer median of 11.7x. Over the past year, JCAP gained 21.7%, outperforming the S&P 500 (SPY) return of 16.8%, though it has posted a year-to-date return of -4.6%.

Jefferson Capital pays a quarterly dividend with an annual forward dividend of $0.96, yielding 4.68% as of October 16, 2026. The company has paid dividends for 2 consecutive years, maintaining a payout ratio of 33.3%. Its last ex-dividend date was August 24, 2026.

Wall Street coverage includes 2 Strong Buy and 3 Buy ratings, with no Hold, Sell, or Strong Sell recommendations. The mean price target of $28.20 represents a 37.4% premium over the last close of $20.53. For the fiscal year ending December 31, 2026, analysts estimate revenue of $713.5M and EPS of $3.00, down 55.6%. Jefferson Capital beat EPS estimates in each of the last 4 quarters, and its next earnings release is scheduled for November 12, 2026.

This page is an AI-written research summary of Jefferson Capital, Inc. (JCAP). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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