Overview

• Debt purchaser's Q1 revenue rose 14% yr/yr, beating analyst expectations

• Company reported adjusted EPS of $0.73

• Company declared quarterly dividend and saw record collections growth, offset by higher servicing costs

Outlook

• Company says investment environment remains favorable with elevated consumer credit and portfolio supply

• Company says low unemployment supports collection performance and capital deployment

• Jefferson Capital says it is well positioned to take advantage of future opportunities

Result Drivers

• RECORD COLLECTIONS - Q1 collections rose 19% to $309.9 mln, driven in part by the Bluestem portfolio purchase

• PRIOR DEPLOYMENTS - Revenue growth was primarily the result of strong deployments in prior periods

• HIGHER SERVICING COSTS - Operating expenses rose due to increased servicing costs, including higher court costs and expenses tied to Bluestem portfolio

Company press release: ID:nGNXlxnxT

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q1 Revenue	Beat	$176.40 mln	$169.17 mln (6 Analysts)
Q1 Adjusted EPS		$0.73
Q1 EPS		$0.61
Q1 Adjusted Net Income		$44.90 mln
Q1 Adjusted Pretax Profit		$58.40 mln

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the corporate financial services peer group is "buy"

• Wall Street's median 12-month price target for Jefferson Capital Inc is $27.00, about 44.7% above its May 13 closing price of $18.66

• The stock recently traded at 6 times the next 12-month earnings vs. a P/E of 8 three months ago

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