Jefferson Capital reports Q2 collections growth, raises auto-finance focus

Jefferson Capital (NASDAQ: JCAP ) held its second-quarter earnings conference call on Thursday.

Below is the complete transcript from the call.

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Access the full call at Summary Jefferson Capital reported strong financial performance with collections up 18% year over year to $301 million, and portfolio purchases increased by 21% to $152 million.

The company achieved a cash efficiency ratio of 72.2% and reported an adjusted EPS of 77 cents.

Strategic initiatives included entering the debt purchasing market in Mexico and expanding auto finance portfolio capabilities.

Market conditions, such as record consumer credit balances and low unemployment, support future portfolio supply and underwriting confidence.

The company highlighted its operational efficiency and competitive advantages in the auto finance segment, driven by complex underwriting and collection processes.

Jefferson Capital's liquidity remains strong, with an improved leverage ratio of 1.71 times and $312 million in contracted forward flows.

The company maintained a quarterly dividend of $0.24 per share and executed a tactical share repurchase.

Management expressed optimism about future growth opportunities, particularly in the auto finance segment and Latin American markets.

Full Transcript OPERATOR Good afternoon and welcome to Jefferson Capital's second quarter of 2026 conference call.

With us today are David Burton, Founder and Chief Executive Officer, and Crystal Real, Chief Financial Officer.

As a reminder, this conference call is being recorded.

This call may contain forward-looking statements regarding the Company's plans, initiatives, and strategies, and the anticipated financial performance of the Company, including but not limited to sales and profitability, anticipated benefits of the debt purchasing market in Mexico, expectations for the market and macroeconomic factors, and target performance metrics.

Such statements are based upon management's current expectations, projections, estimates, and assumptions.

Words such as expect, believe, anticipate, think, outlook, hope, and variations of such words and similar expressions identify such forward-looking statements.

Forward-looking statements involve known and unknown risks and uncertainties that may cause future results to differ materially from those suggested by the forward-looking statements.

Such risks and uncertainties are further disclosed in the Company's most recent filings with the Securities and Exchange Commission.

Shareholders, potential investors, and other readers are urged to consider these factors carefully in evaluating the forward-looking statements made herein and are cautioned not to place undue reliance on such forward-looking statements.

The Company does not undertake to update the forward-looking statements except as required by law.

Also, during this conference call, the Company will be presenting certain non-GAAP financial measures.

Reconciliations of the Company's historical non-GAAP financial measures to their most directly comparable GAAP financial measures appear in today's earnings press release.

I will now turn the call over to David Burton.

David Burton, Founder and Chief Executive Officer Thank you, operator, and thanks, everyone, for joining our investor call.

Let's dive into our second quarter financial performance highlights.

We generated another quarter of excellent results for shareholders.

The Company delivered strong collections growth with collections up 18% year over year to 301 million, and we continue to perform well versus our underwriting expectations.

The market backdrop remains attractive, and our deployments for the quarter were 152 million, up 21% versus the prior-year period.

Our estimated remaining collections grew 18% to 3.4 billion, driven by our continued deployment performance and attractive anticipated returns.

We delivered a sector-leading cash efficiency ratio of 72.2%, driven in part by strong collections from the Bluestem and Conn's portfolio purchases.

The Company also generated strong cash flow for the quarter, which improved our leverage ratio to 1.71 times, a level which positions us well for future growth and creates significant strategic optionality.

Adjusted EPS for the quarter was 77 cents.

Next, I'd like to offer a brief market update and cover some of the macroeconomic indicators to provide better context for why we remain confident in the investment opportunity for our business.

The fundamental backdrop remains unchanged: near-record consumer credit balances and elevated levels of charge-offs and delinquencies across all asset classes create a long runway for robust portfolio supply.