Operating cash flow consistently exceeds net income, with a 1.05 OCF/NI ratio in Q2 2026, but this efficiency is overshadowed by the dominant and wildly volatile loan loss provisions that drive cash flow variability.
Jefferson Capital, Inc. Common Stock (JCAP) cash flow statement — 8-year operating, investing & financing cash flows
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 |
|---|
| Cash from Operations | 221.14M | 268.81M | 168.21M | 120.22M | -13.63M | -6.3M | -3.57M | -5.47M | -3.04M |
| Operating CF Growth % | -26.12% | 59.81% | 39.92% | 981.76% | -116.24% | -76.56% | 34.69% | -79.93% | - |
| Net Income | 155.02M | 187.97M | 128.89M | 111.54M | 44.41M | 54.37M | 14.56M | 16.02M | -2.94M |
| Depreciation & Amortization | 4.11M | 5.25M | 6.86M | 5.28M | 6.26M | 3.49M | 534K | 112K | 21K |
| Deferred Taxes | 26.1M | 21.46M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | 7.35M | 8.58M | 11.23M | 3.52M | -64.49M | -67.1M | -20.96M | -22.5M | -1.62M |
| Working Capital Changes | 3.32M | 28.32M | 21.22M | -127K | -1.96M | 1.01M | 997K | -178K | 1.2M |
| Cash from Investing | -340.98M | -401.94M | -542.37M | -403.41M | -321.31M | -241.75M | -115.55M | -43.39M | -117.77M |
| Purchase of Investments | 0 | 0 | 0 | 0 | -156.11M | -1.8M | 0 | -429K | -58.88M |
| Sale/Maturity of Investments | 0 | 0 | 0 | 0 | 362K | 33.05M | 27.51M | 15.04M | 6.02M |
| Net Investment Activity | 0 | 0 | 0 | 0 | -155.75M | 31.25M | 27.51M | 14.61M | -52.86M |
| Acquisitions | 0 | 0 | 0 | -5.6M | 0 | 0 | 0 | 0 | 0 |
| Other Investing | -339.91M | -400.86M | -541.43M | -396.59M | 1.01M | 1.99M | 12.48M | -12.9M | 0 |
| Cash from Financing | 98.02M | 149.7M | 388.82M | 289.86M | -4.17M | 34.97M | 72.66M | 36.2M | 106.09M |
| Dividends Paid | -60.63M | -63.45M | -36M | -30.56M | -41.72M | -30.59M | -16.95M | -8.49M | -4.3M |
| Share Repurchases | -58.91M | 0 | 0 | 0 | -572K | -333K | -177K | -3.19M | 0 |
| Stock Issued | 0 | 10M | 0 | 0 | 38.12M | 101.63M | 111.76M | 53.46M | 110.39M |
| Net Stock Activity | -58.91M | 10M | 0 | 0 | 37.55M | 101.29M | 111.58M | 50.27M | 110.39M |
| Debt Issuance (Net) | 593K | 1000K | 1000K | 1000K | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -7.34M | -15.35M | -7.27M | -5.9M | 37.55M | 65.56M | 89.61M | 44.69M | 110.39M |
| Net Change in Cash | -29.45M | 9.31M | 17.64M | 5.45M | -5.44M | -38.26M | -20.4M | 23.51M | 43.86M |
| Exchange Rate Effect | -7.63M | -7.26M | 2.98M | -1.22M | 333.68M | 174.82M | 26.06M | 36.17M | 58.57M |
| Cash at Beginning | 45.61M | 38.24M | 20.6M | 15.16M | 8.71M | 46.98M | 67.37M | 43.86M | 1K |
| Cash at End | 26.05M | 47.55M | 38.24M | 20.6M | 3.28M | 8.71M | 46.98M | 67.37M | 43.86M |
| Interest Paid | 14.16M | 95.52M | 58.13M | 45.11M | 0 | 0 | 0 | 0 | 0 |
| Income Taxes Paid | -476K | 8.43M | 8.67M | 9.04M | 0 | 0 | 0 | 0 | 0 |
| Free Cash Flow | 220.06M | 267.73M | 162M | 118.99M | -180.21M | -281.29M | -159.11M | -50.56M | -67.94M |
| FCF Growth % | 224.42% | 65.27% | 36.14% | 166.03% | 35.93% | -76.79% | -214.68% | 25.58% | - |
Quick answers to the most common questions about buying JCAP stock.
Jefferson Capital, Inc. Common Stock (JCAP) generated $268.8M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Jefferson Capital, Inc. Common Stock (JCAP) generated $267.7M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Jefferson Capital, Inc. Common Stock (JCAP) spent $1.1M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Jefferson Capital, Inc. Common Stock (JCAP) returned $63.5M to shareholders via cash dividends. This shows the company's commitment to returning capital to its equity investors.
Key Metrics
Top Statement Risk
Earnings quality and provision volatility
Metrics are mathematically derived from official filings.
Strong Cash Conversion Supports Capital Generation
JCAP's operating cash flow consistently exceeds net income, with an OCF/NI ratio of 1.05 in Q2 2026, suggesting efficient conversion of accrual-based earnings into tangible cash for reinvestment or capital return.
The consistent OCF/NI ratio above 1.0 in recent quarters indicates that the company's core operations are generating more cash than reported earnings, a positive sign for a business reliant on long-tail collections. This strong cash conversion provides a solid foundation for funding new portfolio acquisitions without relying heavily on external debt, which aligns with the reported low debt-to-equity ratio. However, the significant volatility in this ratio, such as the 23.0x spike in Q4 2024, warrants investigation into the specific drivers of that quarter's cash flow.
Minimal Securities Activity Amidst Core Focus
The cash flow statement shows zero purchases or sales of investment securities for the last eight reported quarters, indicating management's capital is fully deployed into its core purchased debt portfolios rather than traditional securities.
The absence of activity in the investment securities portfolio is a clear signal that JCAP's business model is not that of a traditional bank or investment firm. Capital allocation is focused entirely on acquiring consumer receivables, which are likely classified as loans or other assets on the balance sheet. This concentration means the company's performance is directly tied to its underwriting and collection efficiency on these specialized portfolios, with no diversification into liquid securities.
Loan Loss Provision Dominates Cash Flow Profile
Loan loss provisions have been the most volatile and material cash flow item, swinging from a negative $77.1B in Q3 2025 to a positive $97.9M in Q1 2026, which appears to be the primary driver of operating cash flow variability.
For a debt purchaser, the 'loan loss' line likely represents the net cash impact of portfolio acquisitions and subsequent impairments or collections. The massive negative figure in Q3 2025 suggests a significant cash outflow for new portfolio purchases or a large write-down, while the positive figure in Q1 2026 indicates strong cash collections exceeding expectations. This extreme volatility underscores that the company's cash flow is not driven by traditional loan growth but by the lumpy, episodic nature of acquiring and collecting on distressed debt portfolios.
Dividend Commitment Amidst Buyback Pause
JCAP paid a $29.6M dividend in Q2 2026, a significant increase from prior quarters, while buybacks have been absent since Q1 2026, suggesting a shift in capital return priority towards shareholder dividends.
The substantial Q2 2026 dividend payment, which consumed approximately 68% of that quarter's operating cash flow, indicates a strong commitment to returning capital to shareholders. The prior $58.9M buyback in Q1 2026 shows the company has the capacity for large-scale repurchases, but the recent pause may signal a desire to preserve cash for portfolio acquisitions or to support the increased dividend. Investors should monitor whether the dividend level is sustainable given the inherent volatility in the company's cash generation.
Provision Volatility Masks Underlying Collection Trends
The provision for loan losses has been wildly erratic, with a reported negative $77.1B in Q3 2025 followed by a positive $97.9M in Q1 2026, making it nearly impossible to discern the true trajectory of credit performance from the cash flow statement alone.
This extreme volatility in provisions, which aligns with the prior income statement analysis, suggests that the reported figures are heavily influenced by non-cash adjustments, portfolio revaluations, or large, infrequent transactions. The negative provision in Q3 2025 is particularly anomalous and likely represents a significant non-cash credit or accounting adjustment rather than a typical loss reserve build. This noise obscures the underlying health of the purchased debt portfolios and requires analysts to focus on longer-term trends in cash collections versus initial purchase prices.
Cash Flow Statement Hides Portfolio Valuation Risk
The cash flow statement provides no visibility into the accrual-based revenue recognition model, where reported earnings depend on management's estimates of future collections from purchased portfolios, a key risk not captured in current cash flows.
As noted in the prior analysis, JCAP's revenue is likely recognized over the life of a portfolio based on estimated cash flows. This means the strong operating cash flow in a given quarter does not necessarily validate the long-term profitability of the underlying assets. A future shortfall in collections versus initial estimates would lead to portfolio impairments that would hit earnings but not necessarily current cash flow, creating a potential disconnect. The absence of detailed disclosure on the aging and performance of older portfolios in the cash flow statement is a significant analytical gap.