Jefferson Capital, Inc. — Cyborg Score 6/10

Solid
Consumer Debt Purchasing and Collections Services

Strategic Profile

Jefferson Capital is headquartered in Minneapolis, Minnesota, with operations in the United States, Canada, the United Kingdom, and Latin America. The company is majority owned (67%) by J.C. Flowers. The company screens attractively at a roughly 20% levered free cash flow yield and has delivered 39% YoY operating income growth.

Cyborg Score Rationale

Jefferson Capital has delivered 39% YoY operating income growth and screens attractively at a roughly 20% levered free cash flow yield. However, the capital-intensive, reinvestment-heavy model resembles a capital-recycling operation rather than a true compounding business, with nearly all excess cash flow requiring reinvestment to sustain portfolio size.

Top Insights

  • In October 2025, Jefferson Capital agreed to acquire a credit card portfolio with face value of $488.2 million for $302.8 million.
  • Sustainable through-cycle ROEs are likely in the 12–13% range with governance firmly controlled by its private equity sponsor.
  • 5 analysts recommend buying the stock, while 0 suggest selling, leading to an overall rating of Buy.
  • Q4 2025 earnings came in at $0.67 USD per share matching estimates, with estimated earnings for the next quarter at $0.68 USD per share.

Named Competitors

  • Encore Capital — Debt purchasing and collections services
  • PRA Group — Debt recovery and consumer receivables management

Recent Developments

  • (February 2026) Keefe, Bruyette & Woods raised price target to $28.00 from $22.00
  • (October 2025) Acquired $488M face value credit card portfolio from Bluestem Brands for $302.8M
  • (June 2025) IPO at NASDAQ under ticker JCAP

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