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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