Jefferson Capital, Inc. / DE (JCAP)
SIC breadcrumb: Finance, Insurance, And Real Estate > SIC Major Group 61 > SIC 6153 Short-Term Business Credit Institutions
SEC company page: https://www.sec.gov/edgar/browse/?CIK=2046042. Latest filing source: 0001104659-26-027199.
Selected Fundamentals
| Metric | Value | Unit | FY | Filed |
|---|---|---|---|---|
| Revenue | 613,289,000 | USD | 2025 | 2026-03-13 |
| Net income | 187,965,000 | USD | 2025 | 2026-03-13 |
| Assets | 2,087,373,000 | USD | 2025 | 2026-03-13 |
Financials
Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-03-13. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0002046042.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts.
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Revenue | 323,072,000 | 433,341,000 | 613,289,000 |
| Net income | 111,519,000 | 128,891,000 | 187,965,000 |
| Operating income | 164,051,000 | 220,267,000 | 316,495,000 |
| Diluted EPS | 5.64 | ||
| Operating cash flow | 120,219,000 | 168,209,000 | 268,813,000 |
| Dividends paid | 30,564,000 | 36,000,000 | 63,455,000 |
| Assets | 1,654,283,000 | 2,087,373,000 | |
| Liabilities | 1,271,754,000 | 1,611,238,000 | |
| Stockholders' equity | 303,589,000 | 382,529,000 | 476,135,000 |
| Cash and cash equivalents | 14,371,000 | 35,506,000 | 23,231,000 |
Ratios
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Net margin | 34.52% | 29.74% | 30.65% |
| Operating margin | 50.78% | 50.83% | 51.61% |
| Return on equity | 36.73% | 33.69% | 39.48% |
| Return on assets | 7.79% | 9.00% | |
| Liabilities / equity | 3.32 | 3.38 |
Financial Charts
Quarterly
Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-05-14. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0002046042.json.
| Quarter | End Date | Revenue | Net Income | Diluted EPS | Method |
|---|---|---|---|---|---|
| 2025-Q2 | 2025-06-30 | 152,708,000 | 47,651,000 | 16.76 | reported discrete quarter |
| 2025-Q3 | 2025-09-30 | 150,842,000 | 38,362,000 | 0.59 | reported discrete quarter |
| 2025-Q4 | 2025-12-31 | 154,799,000 | 37,731,000 | derived Q4 = FY annual - nine-month YTD | |
| 2026-Q1 | 2026-03-31 | 176,439,000 | 37,634,000 | 0.61 | reported discrete quarter |
Quarterly Charts
Macro Cross-References
- CPIAUCSL - Consumer Price Index for All Urban Consumers: All Items in U.S. City Average
- UNRATE - Unemployment Rate
- FEDFUNDS - Federal Funds Effective Rate
- CES0500000003 - Average Hourly Earnings of All Employees, Total Private
- DFEDTARU - Federal Funds Target Range - Upper Limit
- DFEDTARL - Federal Funds Target Range - Lower Limit
- DGS3MO - Market Yield on U.S. Treasury Securities at 3-Month Constant Maturity
- DGS2 - Market Yield on U.S. Treasury Securities at 2-Year Constant Maturity
- DGS10 - Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity
- DGS30 - Market Yield on U.S. Treasury Securities at 30-Year Constant Maturity
- T10Y2Y - 10-Year Treasury Constant Maturity Minus 2-Year Treasury Constant Maturity
- CPILFESL - Consumer Price Index for All Urban Consumers: All Items Less Food and Energy
- CPIUFDSL - Consumer Price Index for All Urban Consumers: Food
- CPIENGSL - Consumer Price Index for All Urban Consumers: Energy
- CUSR0000SAH1 - Consumer Price Index for All Urban Consumers: Shelter
- PCEPI - Personal Consumption Expenditures: Chain-type Price Index
- PCEPILFE - Personal Consumption Expenditures Excluding Food and Energy: Chain-type Price Index
- PPIACO - Producer Price Index by Commodity: All Commodities
- T10YIE - 10-Year Breakeven Inflation Rate
- U6RATE - Total Unemployed, Plus All Marginally Attached Workers Plus Total Employed Part Time for Economic Reasons
- PAYEMS - All Employees, Total Nonfarm
- CIVPART - Labor Force Participation Rate
- EMRATIO - Employment-Population Ratio
- UNEMPLOY - Unemployed
- CE16OV - Employment Level
- ICSA - Initial Claims
- JTSJOL - Job Openings: Total Nonfarm
- JTSQUR - Quits: Total Nonfarm
- GDPC1 - Real Gross Domestic Product
- A191RL1Q225SBEA - Real Gross Domestic Product: Percent Change from Preceding Period
- INDPRO - Industrial Production: Total Index
- TCU - Capacity Utilization: Total Index
- HOUST - New Privately-Owned Housing Units Started: Total Units
- PERMIT - New Privately-Owned Housing Units Authorized in Permit-Issuing Places: Total Units
- RSAFS - Advance Retail Sales: Retail Trade
- PCE - Personal Consumption Expenditures
- DSPIC96 - Real Disposable Personal Income
- PSAVERT - Personal Saving Rate
- M2SL - M2
- BOPGSTB - U.S. International Trade in Goods and Services: Balance
- MSPUS - Median Sales Price of Houses Sold for the United States
- HSN1F - New One Family Houses Sold: United States
- RHORUSQ156N - Homeownership Rate in the United States
- TTLCONS - Total Construction Spending: Total Construction in the United States
- RRVRUSQ156N - Rental Vacancy Rate in the United States
- TOTALSL - Total Consumer Credit Owned and Securitized
- REVOLSL - Revolving Consumer Credit Owned and Securitized
- DRCCLACBS - Delinquency Rate on Credit Card Loans, All Commercial Banks
- GDP - Gross Domestic Product
- GPDI - Gross Private Domestic Investment
- GCE - Government Consumption Expenditures and Gross Investment
- PCEC - Personal Consumption Expenditures
- NETEXP - Net Exports of Goods and Services
- GFDEBTN - Federal Debt: Total Public Debt
- GFDEGDQ188S - Federal Debt: Total Public Debt as Percent of Gross Domestic Product
- FYFSD - Federal Surplus or Deficit
- FGRECPT - Federal Government Current Receipts
- FGEXPND - Federal Government: Current Expenditures
- MANEMP - All Employees, Manufacturing
- USCONS - All Employees, Construction
- USTRADE - All Employees, Retail Trade
- USFIRE - All Employees, Financial Activities
- USGOVT - All Employees, Government
- AWHAETP - Average Weekly Hours of All Employees, Total Private
- DGORDER - Manufacturers' New Orders: Durable Goods
- NEWORDER - Manufacturers' New Orders: Nondefense Capital Goods Excluding Aircraft
- BUSINV - Total Business Inventories
- EXPGS - Exports of Goods and Services
- IMPGS - Imports of Goods and Services
- IR - Import Price Index (End Use): All Commodities
- PPIFIS - Producer Price Index by Commodity: Final Demand
Latest quarter (10-Q)
Latest 10-Q source: 0001104659-26-061206.
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS You should read the following discussion and analysis of our financial condition and results of operations in conjunction with the combined and consolidated financial statements and the related notes included in our audited combined and consolidated financial statements included in the Company’s 2025 Form 10-K. In addition to historical financial information, the following discussion contains forward-looking statements that reflect our plans, estimates, beliefs, and expectations that involve risks and uncertainties. Our actual results and the timing of events could differ materially from those discussed in the forward-looking statements. Factors that could cause or contribute to these differences include those discussed below and the sections titled “Risk Factors” and “Cautionary Note Regarding Forward-Looking Statements” in this Quarterly Report on Form 10-Q (the “Quarterly Report”) and the Company’s 2025 Form 10-K. Overview We provide debt recovery solutions and other related services across a broad range of consumer receivables, including credit card, secured and unsecured automotive, telecom and utilities, and other receivables. We primarily purchase portfolios of previously charged-off consumer receivables at deep discounts to face value and manage them by working with individuals as they repay their obligations and work toward financial recovery. Previously charged-off receivables include receivables subject to bankruptcy proceedings. We also provide debt servicing and other portfolio management services to credit originators for nonperforming loans. In addition, through our credit card acquisition programs, we earn credit card revenue. All deployments are purchased from independent third parties. We operate and manage our business through four reportable segments that are based on geography: United States, United Kingdom, Canada, and Latin America. We also have the following two primary lines of business: ● Distressed, our largest line of business, represents the purchase, collection, and servicing collection of nonperforming consumer loans; and ● Insolvency, which consists of the purchasing and/or servicing of financial assets of consumers who have entered bankruptcy through Chapter 7 or 13 of the U.S. Bankruptcy Code in the United States, consumer proposal, credit counseling, or bankruptcy in Canada and the United Kingdom. We are headquartered in Minneapolis, Minnesota, and as of March 31, 2026, with 1,178 FTE (including our offshore co-sourced operation). Our Business Model Portfolio Purchasing We purchase portfolios of nonperforming loans, and occasionally those that are performing but with significant credit deterioration, through either single portfolio transactions, referred to as spot sales, or through the pre-arranged purchase of multiple portfolios at regular intervals, referred to as forward flow sales. Under a forward flow contract, we agree to purchase statistically similar nonperforming loan portfolios from credit grantors on a periodic basis at a negotiated price over a specified time period, generally from six months to a year. When we purchase portfolios with credit deterioration, we find that our expertise in evaluating and managing charged-off accounts allows us to confidently manage such portfolios with a higher level of credit risk than a buyer without that level of expertise would be comfortable. In such instances, a portfolio may include a mix of loans that are delinquent and restructured as well as a significant amount of charged-off or nonperforming loans, with a high level of risk that more of the current loans will become delinquent over time and eventually need to be charged-off. In these cases, we can offer the seller the convenience of purchasing all its loan assets together as opposed to bidding for only a single category of loan, which might result in a seller needing to transact with multiple counterparties. We regularly evaluate the opportunity to purchase portfolios that include a mix of performing accounts and nonperforming accounts, and that comprise all of a 29 Table of Contents credit originator’s loan assets and believe we will find attractive opportunities to make more purchases like these going forward. We purchase portfolios of nonperforming loans from credit grantors through auctions and negotiated sales. In an auction process, the seller will assemble a portfolio of nonperforming loans and will seek purchase prices from specifically invited potential purchasers. In a privately negotiated sale process, the seller will contact one or more purchasers directly, receive a bid, and negotiate the terms of sale. In either case, invited purchasers will typically have already successfully completed a qualification process and due diligence examination that includes the seller’s review of the purchaser’s experience, financial standing, operating procedures, business practices, and compliance oversight. We purchase receivables based on robust, account-level valuation methods and employ proprietary statistical and behavioral models across our operations. These methods and models allow us to value portfolios accurately (and limit the risk of overpaying), avoid buying portfolios that are incompatible with our methods or strategies, and align the accounts we purchase with our business and collection channels to maximize future collections. As a result, we have been able to realize attractive returns from the receivables we acquire. We maintain strong relationships with many of the largest financial service providers in the United States, Canada, United Kingdom, and Latin America. Deployments and Collections Creditors sell their volume in a mix of forward flow arrangements and competitive bid transactions. Sales levels are expected to fluctuate from quarter to quarter with portfolio pricing remaining competitive. We believe that smaller competitors continue to face difficulties in the portfolio purchasing market because of the high cost to operate due to regulatory pressure, issuers’ selectiveness with buyers and lack of consistent access to capital. We believe these operational costs favor larger participants, such as us, because the larger market participants are better able to adapt to these pressures and commit to larger purchases and forward flow agreements. Deployments Our deployments are a mix of spot sales and forward flow agreements. The timing, contract duration and volumes for each contract can fluctuate leading to variation when compared to prior periods. The average purchase price, as a percentage of face value, varies from period to period depending on, among other factors, the type and quality of the accounts purchased and the length of time from charge-off to the time we purchase the portfolios. The average purchase price as a percentage of face value is higher for newly charged-off portfolios as compared to more seasoned portfolios because newly charged-off portfolios generally have higher liquidation rates. Similarly, portfolios consisting of paying accounts tend to have a higher purchase price relative to face value than non-paying accounts due to the higher expectations for collections, as well as lower anticipated collection costs. As a result, in years that we purchase a higher percentage of newly charged-off assets or paying portfolios, we expect that our purchase price as a percentage of face value would be higher than would be in years where a higher ratio of seasoned paper or non-paying portfolios were purchased. Collections We have two primary types of collection channels for the collection of our purchased receivables, legal and voluntary. The legal collection channel consists of collections that result from our internal legal channel or from our network of retained law firms. The voluntary collection channel utilizes call centers (domestic and offshore) and collection agencies. The call center collections include collections that result from our call centers, direct mail programs, and digital collections. The collection agencies collections consist of collections from third-party collection agencies that we utilize when we believe they can liquidate better or less expensively than we can. Key Business Metrics and Non-GAAP Financial Measures We regularly review net operating income and net income along with a number of key business metrics and non-GAAP financial measures to evaluate our business, measure our performance, identify trends, prepare financial projections, and make business decisions. Although we believe the key business metrics and non-GAAP financial measures we review are useful, they have limitations as analytical tools and should not be considered in isolation, or as substitutes for analysis of our financial results prepared in accordance with GAAP. 30 Table of Contents Key Business Metrics Estimated Remaining Collections We define ERC as the undiscounted sum of all future projected collections on our owned finance receivables portfolios. We calculate ERC using data derived from our databases of owned and serviced debt portfolio in the markets in which we operate and from our proprietary behavioral and asset valuation models. References to our ERC are references to gross ERC which includes estimated collections in respect of the current charge-off balances. We believe that our ERC estimation represents an important supplemental measure to compare our cash generating capacity with other companies in the debt collection industry, even though we can provide no assurance that we will achieve such collections within a specified time period, or at all. The following table summarizes the total ERC by geographic area, or segment, during the three months ended: March 31, Increase % (in Millions) 2026 2025 (Decrease) Change United States $ 2,460.1 $ 2,155.2 $ 304.9 14.1 % Canada 408.3 317.8 90.5 28.5 % United Kingdom 198.0 146.4 51.6 35.3 % Latin America 289.4 218.5 70.9 32.4 % Total $ 3,355.8 $ 2,837.9 $ 517.9 18.2 % For the three months ended March 31, 2026, ERC in our United States reportable segment included $237.7 million for the Bluestem portfolio purchase with the comparative 2025 period having no ERC related to Bluestem. Deployments Deployments refers to portfolios purchases in the ordinary course. We believe deployments represent an important measure of our investment activity. Deployments are a key driver of the growth of our ERC and a measure to compare growth in our business with the growth of other companies in the debt collection industry. The following tables summarize the total deployments or purchases by geographic area, or reportable segments, during the three months ended: Three Months Ended March 31, Increase % (in Millions) 2026 2025 (Decrease) Change United States $ 88.0 $ 119.5 $ (31.5) (26.4) % Canada 33.7 52.0 (18.3) (35.2) % United Kingdom 9.5 1.9 7.6 399.2 % Latin America 18.5 1.8 16.7 929.6 % Total Purchases $ 149.7 $ 175.2 $ (25.5) (14.6) % During the three months ended March 31, 2026, we invested $149.7 million to acquire receivable portfolios, with face values aggregating $2,708.2 million, for an average purchase price of 5.5% of face value. The amount invested in receivable portfolios decreased $25.5 million, or 14.6%, compared with the $175.2 million invested during the three mont [Excerpt truncated for page length; source filing is linked above.]
Latest 10-K MD&A
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS You should read the following discussion and analysis of our financial condition and results of operations in conjunction with the combined and consolidated financial statements and the related notes and other financial data included elsewhere in the Annual Report on Form 10-K. In addition to historical financial information, the following discussion contains forward-looking statements that reflect our plans, estimates, beliefs, and expectations that involve risks and uncertainties. Our actual results and the timing of events could differ materially from those discussed in the forward-looking statements. Factors that could cause or contribute to these differences include those discussed below and the sections titled “Risk Factors” and “Cautionary Note Regarding Forward-Looking Statements” in this Annual Report on Form 10-K (the “Annual Report”). A discussion regarding our financial condition and results of operations for the year ended December 31, 2024 compared to the year ended December 31, 2023 is included under “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our final prospectus filed with the SEC pursuant to Rule 424(b)(4) on June 27, 2025. Overview We provide debt recovery solutions and other related services across a broad range of consumer receivables, including credit card, secured and unsecured automotive, telecom and utilities, and other receivables. We primarily purchase portfolios of previously charged-off consumer receivables at deep discounts to face value and manage them by working with individuals as they repay their obligations and work toward financial recovery. Previously charged-off receivables include receivables subject to bankruptcy proceedings. We also provide debt servicing and other portfolio management services to credit originators for nonperforming loans. In addition, through our credit card acquisition programs, we earn credit card revenue. All deployments are made to independent third parties. We operate and manage our business through four reportable segments that are based on geography: United States, United Kingdom, Canada, and Latin America. We also have the following two primary lines of business: ◾ Distressed, our largest line of business, represents the purchase, collection, and servicing collection of nonperforming consumer loans; and ◾ Insolvency, which consists of the purchasing and/or servicing of financial assets of consumers who have entered bankruptcy through Chapter 7 or 13 of the U.S. Bankruptcy Code in the United States, consumer proposal, credit counseling, or bankruptcy in Canada and the United Kingdom. We are headquartered in Minneapolis, Minnesota, and as of December 31, 2025, with 1,120 FTE (including our offshore co-sourced operation). Key Business Metrics and Non-GAAP Financial Measures We regularly review net operating income and net income along with a number of key business metrics and non-GAAP financial measures to evaluate our business, measure our performance, identify trends, prepare financial projections, and make business decisions. Although we believe the key business metrics and non-GAAP financial measures we review are useful, they have limitations as analytical tools and should not be considered in isolation, or as substitutes for analysis of our financial results prepared in accordance with GAAP. 40 Table of Contents Key Business Metrics Estimated Remaining Collections We define ERC as the undiscounted sum of all future projected collections on our owned finance receivables portfolios. We calculate ERC using data derived from our databases of owned and serviced debt portfolio in the markets in which we operate and from our proprietary behavioral and asset valuation models. References to our ERC are references to gross ERC (which includes estimated collections in respect of the current charge-off balances). We believe that our ERC estimation represents an important supplemental measure to compare our cash generating capacity with other companies in the debt collection industry, even though we can provide no assurance that we will achieve such collections within a specified time period, or at all. The following table summarizes the total ERC by geographic area, or segment, during the years presented: December 31, Increase % (in Millions) 2025 2024 (Decrease) Change United States $ 2,530.7 $ 2,114.0 $ 416.7 19.7 % Canada 392.2 266.1 126.0 47.4 % United Kingdom 190.3 151.8 38.5 25.3 % Latin America 266.7 212.6 54.1 25.5 % Total $ 3,379.8 $ 2,744.5 $ 635.3 23.1 % ERC in our United States reportable segment included $139.9 million from the Conn’s Portfolio Purchase and $295.6 million for the Bluestem portfolio purchase. Deployments Deployments refers to portfolios purchases in the ordinary course. We believe deployments represent an important measure of our investment activity. Deployments are a key driver of the growth of our ERC and a measure to compare growth in our business with the growth of other companies in the debt collection industry. The following tables summarize the total deployments or purchases by geographic area, or reportable segments, during the years presented: Year Ended December 31, Increase % (in Millions) 2025 2024 (Decrease) Change United States $ 624.8 $ 552.7 $ 72.2 13.1 % Canada 141.6 95.4 46.2 48.4 % United Kingdom 31.9 29.4 2.5 8.6 % Latin America 33.6 45.8 (12.2) (26.7) % Total Purchases $ 832.0 $ 723.3 $ 108.6 15.0 % During the year ended December 31, 2025, we invested $832.0 million to acquire receivable portfolios, with face values aggregating $13,030.7 million, for an average purchase price of 6.4% of face value. The amount invested in receivable portfolios increased $108.6 million, or 15.0%, compared with the $723.3 million invested during the year ended December 31, 2024, to acquire receivable portfolios with face values aggregating $9,198.5 million, for an average purchase price of 7.9% of face value. 41 Table of Contents Collections The following tables summarize the total collections by geographic area, or reportable segment, during the years presented: Year Ended December 31, Increase % (in Millions) 2025 2024 (Decrease) Change United States $ 786.0 $ 420.3 $ 365.7 87.0 % Canada 116.1 85.9 30.2 35.2 % United Kingdom 42.5 39.4 3.1 7.9 % Latin America 54.1 39.0 15.1 38.7 % Total Collections $ 998.7 $ 584.6 $ 414.1 70.8 % Collections from purchased receivables increased by $414.1 million or 70.8% to $998.7 million during the year ended December 31, 2025, from $584.6 million during the year ended December 31, 2024. The increase in collections from purchased receivables compared to the year ended December 31, 2024, was primarily a result of increased purchases during the year. Collections in our United States reportable segment included $246.9 million from the Conn’s Portfolio Purchase and $14.3 million from the Bluestem portfolio purchase. Non-GAAP Financial Measures To supplement our combined and consolidated financial statements prepared and presented in accordance with GAAP, we use certain non-GAAP financial measures throughout this Annual Report, as described further below, to provide investors with additional useful information about our financial performance, to enhance the overall understanding of our past performance and future prospects and to allow for greater transparency with respect to important metrics used by our management for financial and operational decision-making. Non-GAAP financial measures have limitations in their usefulness to investors because they have no standardized meaning prescribed by GAAP and are not prepared under any comprehensive set of accounting rules or principles. In addition, non-GAAP financial measures may be calculated differently from, and therefore may not be directly comparable to, similarly titled measures used by other companies. As a result, non-GAAP financial measures should be viewed as supplementing, and not as an alternative or substitute for, our combined and consolidated financial statements prepared and presented in accordance with GAAP. Adjusted Net Income Adjusted net income is calculated as net income in accordance with GAAP, adjusted to exclude (i) foreign exchange and other income (expense); (ii) stock-based compensation; and (iii) merger and acquisition and other infrequent, non-recurring, non-core or unusual charges. Adjusted net income is a supplemental measure of performance that is not required by, or presented in accordance with, GAAP. We present adjusted net income because we consider it an important supplemental measure of our operations and financial performance. Our management believes adjusted net income helps us provide enhanced year-to-year comparability of operations and financial performance and is useful to investors as other companies in our industry report similar financial measures. Adjusted net income should not be considered as an alternative to net income determined in accordance with GAAP. Some of the limitations related to the use of adjusted net income as an analytical tool include: ◾ does not reflect our future requirements for capital expenditures or contractual commitments; ◾ does not reflect changes in, or cash requirements for, our working capital needs; and ◾ other companies in our industry may calculate adjusted net income differently than we do, limiting its usefulness as a comparative measure. Because of these limitations, adjusted net income should not be considered as a measure of discretionary cash available to us to invest in the growth of our business. 42 Table of Contents Set forth below is a reconciliation of adjusted net income to net income, the most directly comparable financial measure calculated and reported in accordance with GAAP. Year Ended December 31, Increase % (in Millions) 2025 2024 (Decrease) Change Net Income $ 188.0 $ 128.9 $ 59.1 45.8 % Foreign exchange and other income (expense) (7.7) 5.5 (13.2) (241.1) % Stock compensation 9.2 4.5 4.7 103.2 % Canaccede exit incentive 1.4 7.7 (6.3) (81.3) % Merger and acquisition and initial public offering related expenses 11.8 7.0 4.8 68.2 % Adjusted Net Income $ 202.7 $ 153.6 $ 49.0 31.9 % Components of Results of Operations Revenue Our revenue is primarily derived from revenue from investments in receivables, which is revenue recognized from engaging in debt purchasing and recovery activities, and from credit card and servicing revenue streams. Total Portfolio Revenue Portfolio revenue consists of two components: (i) portfolio income, which is the accretion of the discount on the negative allowance due to the passage of time (generally the portfolio balance multiplied by the established pool effective interest rate (“EIR”)), and (ii) changes in recoveries, which includes recoveries above or below forecast (the difference between actual cash collected or recovered during the current year and expected cash recoveries for the current period) and changes in expected future recoveries (the present value change of expected future recoveries, where such change generally results from changes to the expected timing of collections and changes to the total amount of expected future collections). For a majority of the portfolios we purchase, when we acquire them, we apply our charge-off policy and fully write off the amortized costs of the individual receivables we acquire immediately after purchasing the portfolio. We then record a negative allowance that represents the present value of all expected future recoveries for pools of receivables that share similar risk characteristics using a discounted cash flow approach, which is presented as “investments in receivables, net” on our combined and consolidated balance sheet. The discount rate is a purchase EIR established based on the purchase price of the portfolio and the expected future cash flows at the time of purchase. From time to time, we will also purchase performing portfolios for a discount, where we will apply the interest method and accrete the discount. Credit Card Revenue Credit card revenue consists of interest income, annual fees, late fees, as well as interchange fees, cash advance fees and other miscellaneous items from credit card transactions. Interest income is accrued monthly based on the outstanding receivables and their contractual interest rates. Servicing Revenue Servicing revenue consists of the revenue we generate from providing collection services to certain third parties. Generally, we receive a percentage of collections as the fee for services, and in some cases, we receive a fixed fee. Servicing revenue is recognized when the underlying receivables are collected or when a fixed fee service is performed. Provision for Credit Losses Provision for credit losses is the allowance we provide for credit losses on loans and fees receivable. We compute the allowance for credit losses on loans and fees receivable at the pool level using a roll-rate methodology and consider a number of factors in the measurement of the allowance, including historical loss rates, current delinquency and roll-rate trends, the effects of changes in the economy, changes in underwriting criteria and estimated recoveries. The allowance is estimated based on amortized cost basis of the loan, including principal, accrued interest receivable, deferred fees and costs. We place receivables on non-accrual at 90 days past due and write off the accrued interest at 180 days past due or sooner if facts and circumstances indicate earlier non-collectability. Expected recoveries are included in the measurement of the allowance for credit losses. 43 Table of Contents Operating Expenses Salaries and Benefits Expense Salaries and benefits expense primarily consists of base salary, commission, bonus expense and healthcare costs. Additionally, it includes 401k match and stock-based compensation expense. We expense all salaries and benefits expense as incurred. While we expect our salaries and benefits expense will increase in absolute dollars as we continue to invest in our growth and operate as a public company (including as a result of increased stock-based compensation), we expect such expense to decline as a percentage of revenue over time as we scale our business and leverage our investments already made. Servicing Expenses Servicing expenses primarily consists of collections and customer service expenses associated with previously charged-off receivables, such as the cost of outsourced collections, debtor correspondence, legal fees associated with the collection of debt and other direct expenses associated with collections and customer service efforts. While we expect our servicing expenses will increase in absolute dollars as our business grows, we expect such expenses will vary from year-to-year as a percentage of revenue for the foreseeable future and decrease as a percentage of revenue over the long term as a result of continued investments to improve the efficiency of our operations and support organization. Depreciation and Amortization Depreciation and amortization consists of depreciation of property and equipment and amortization of intangible assets. Professional Fees Professional fees primarily consists of legal and consulting expenses, including annual audit fees and various other outside service fees provided by expert services firms. In addition, it includes legal fees associated with settlements and fees associated with merger and acquisition expenses. We incurred additional expenses related to the initial public offering (the “IPO”) and expect to incur additional expense primarily due to the costs of operating as a public company, which are expected to include additional legal, accounting and consulting expenses, among others. Other Selling, General and Administrative Expenses Other selling, general and administrative expenses generally consists of rent, travel and entertainment expenses, and other general overhead expenses. Other Income (Expense) Interest Expense Interest expense consists of interest expense on our outstanding debt and amortization of debt issuance costs. Foreign Exchange and Other Income (Expense) Foreign exchange and other income (expense) consists of foreign currency related realized gains or losses on portfolio purchase transactions. Income Taxes The Company’s effective tax rate for the year ended December 31, 2025 was 13.9%, compared to 6.3% for the year ended December 31, 2024. The Company’s effective tax rates for the year ended December 31, 2025 and 2024 were based on the U.S. federal statutory tax rate of 21.0% and state jurisdictional income tax rates, adjusted for permanent items including non-taxable partnership income, compensation above $1 million, inclusive of equity awards, paid to covered employees under Internal Revenue Code Section 162(m), non-deductible stock compensation and non-deductible transaction costs related to the IPO transaction. In July 2025, the One Big Beautiful Bill Act (“OBBBA”) was enacted into law in the U.S. The OBBBA includes numerous provisions that affect corporate taxation, including changes to bonus depreciation, the expensing of domestic research costs, and modifications to certain U.S. international tax rules. We have analyzed the impacts of the OBBBA and reflected 44 Table of Contents them in the current period. These impacts do not have a material effect on the tax rate for the year ended December 31, 2025. The majority of the tax law changes will take effect in future years. Realization of our deferred tax assets depends, in part, on the reversal of our deferred tax liabilities. In considering our need for a valuation allowance, we consider our historical and future projected taxable income, as well as other objectively verifiable evidence, including our utilization of tax attributes net operating loss carryforwards through the realization of deferred tax liabilities. However, our future effective tax rate may be affected by our ongoing assessment of the need for a valuation allowance on our deferred tax assets or liabilities, or changes in tax laws, regulations, or accounting principles, tax planning initiatives, as well as certain discrete items. Results of Operations Year ended December 31, 2025 compared to year ended December 31, 2024 The following tables set forth combined and consolidated income statement data expressed in a dollar amount and as a percentage of total revenues for the years indicated: Year Ended December 31, (in Millions) 2025 2024 Revenues: Portfolio income $ 560.4 91.4 % $ 396.3 91.5 % Changes in recoveries 6.0 1.0 % (0.4) (0.1) % Total portfolio revenue $ 566.4 92.4 % $ 395.9 91.4 % Credit card revenue 7.2 1.2 % 8.3 1.9 % Servicing revenue 39.7 6.5 % 29.1 6.7 % Total revenues $ 613.3 100.0 % $ 433.3 100.0 % Provision for credit losses $ 2.4 0.4 % $ 3.5 0.8 % Operating Expenses: Salaries and benefits $ 64.6 10.5 % $ 48.1 11.1 % Servicing expenses 187.2 30.5 % 130.9 30.2 % Depreciation and amortization 5.3 0.9 % 2.6 0.6 % Professional fees 18.6 3.0 % 11.4 2.6 % Other selling, general and administrative 18.8 3.1 % 16.6 3.8 % Total operating expenses $ 294.4 48.0 % $ 209.6 48.4 % Net operating income $ 316.5 51.6 % $ 220.3 50.8 % Other income / (expense): Interest expense $ (105.8) (17.2) % $ (77.2) (17.8) % Foreign exchange and other income (expense) 7.7 1.3 % (5.5) (1.3) % Total other income / (expense) (98.1) (16.0) % (82.7) (19.1) % Income before income taxes $ 218.4 35.6 % $ 137.6 31.7 % Provision for income taxes (30.5) (5.0) % (8.7) (2.0) % Net income $ 188.0 30.6 % $ 128.9 29.7 % Foreign currency translation 18.6 3.0 % (14.0) (3.2) % Comprehensive income $ 206.6 33.7 % $ 114.9 26.5 % 45 Table of Contents Revenues A summary of how our revenues were generated during the years indicated is as follows: Year Ended December 31, Increase % (in Millions) 2025 2024 (Decrease) Change Cash Collections $ 998.7 $ 584.6 $ 414.1 70.8 % Principal Amortization (432.3) (188.7) (243.6) 129.1 % Total portfolio revenue 566.4 395.9 170.5 43.1 % Credit card revenue 7.2 8.3 (1.1) (13.7) % Servicing revenue 39.7 29.1 10.6 36.3 % Total revenues $ 613.3 $ 433.3 $ 179.9 41.5 % Total revenues were $613.3 million for the year ended December 31, 2025, an increase of $179.9 million, or 41.5%, compared to $433.3 million for the year ended December 31, 2024. The increase is primarily a result of increased deployments during the year as well as the Conn’s portfolio acquisition in December 2024 which contributed $95.8 million of revenue as well as the Bluestem acquisition in December 2025 which contributed $5.4 million. Operating Expenses Total operating expenses were $294.4 million for the year ended December 31, 2025, an increase of $84.8 million, or 40.5%, compared to $209.6 million for the year ended December 31, 2024. This is driven by an increase in salaries and benefit expense of $16.5 million primarily due to increased personnel expense related to the Conn’s Portfolio purchase of $9.7 million and additional stock-based compensation $4.7 million, servicing expenses of $56.3 million related to increased collections, $7.2 million in professional fees related to the initial public offering in June 2025, increased depreciation and amortization of $2.7 million primarily due to the Conn’s intangibles and $2.2 million associated with increased various selling, general and administrative expenses. Salaries and Benefits Salaries and benefits were $64.6 million for the year ended December 31, 2025, which is an increase of $16.5 million, or 34.2%, compared to $48.1 million for the year ended December 31, 2024. The increase is primarily due to increased personnel expense of $9.7 million related to the Conn’s Portfolio purchase and higher stock-based compensation of $4.7 million. Servicing Expenses Servicing expenses were $187.2 million for the year ended December 31, 2025, an increase of $56.3 million, or 43.0%, compared to $130.9 million for the year ended December 31, 2024. The increase in servicing expenses was primarily driven by increased collections including $12.1 million from the Conn’s portfolio and increased court costs of $22.4 million which are incurred upfront at the outset of consumer litigation in anticipation of generating future collections. Servicing expenses consisted of the following for the year ended December 31, 2025 and 2024: Year Ended December 31, Increase % (in Millions) 2025 2024 (Decrease) Change Agency and repo commission expense $ 50.9 $ 37.8 $ 13.1 34.7 % Legal commission expense 28.6 19.7 8.9 45.2 % Court costs 54.4 32.0 22.4 70.0 % Communications 27.0 25.0 2.0 8.0 % Offshore 13.8 8.7 5.1 58.6 % Other servicing expenses 12.5 7.7 4.8 62.6 % Total servicing expenses $ 187.2 $ 130.9 $ 56.3 43.0 % Depreciation and Amortization Depreciation and amortization was $5.3 million for the year ended December 31, 2025, a $2.7 million, or 101.5%, increase from the $2.6 million for the year ended December 31, 2024. The increase was due to incremental intangible assets associated with the Conn’s purchase. 46 Table of Contents Professional Fees Professional fees were $18.6 million for the year ended December 31, 2025, an increase of $7.2 million, or 63.6%, compared to $11.4 million for the year ended December 31, 2024. The increase was primarily due to one-time legal and professional fees incurred as part of the initial public offering in June 2025. Other Selling, General and Administrative Expenses Other selling, general and administrative expenses generally consist of rent, travel and entertainment expenses, and other general overhead expenses. These expenses totaled $18.8 million for the year ended December 31, 2025, an increase of $2.2 million or 13.3%, compared to $16.6 million for the year ended December 31, 2024. The increase is primarily due to additional rent expense related to the addition of Conn’s location in 2025 and expense recognized related to the Canaccede exit incentive of $1.4 million. Other Income (Expense) Interest Expense Total interest expense was $105.8 million for the year ended December 31, 2025, an increase of $28.5 million, or 37.0%, compared to $77.2 million for the year ended December 31, 2024. The increase was primarily driven by higher interest expense related to the outstanding notes payable, as well as increased amortization of note payable origination costs of $6.2 million, an increase of $1.9 million or 44.0% higher compared to $4.3 million for the year ended December 31, 2024, due to the issuance of the 2030 Senior Notes in May 2025. Interest expense consisted of the following for the years ended December 31, 2025 and 2024: Year Ended December 31, Increase % (in Millions) 2025 2024 (Decrease) Change Interest expense $ 99.6 $ 73.0 $ 26.7 36.5 % Amortization of note payable origination costs 6.2 4.3 1.9 44.0 % Total interest expense $ 105.8 $ 77.2 $ 28.5 37.0 % Provision for Income Tax Expense The provision for income taxes consists primarily of income taxes in certain federal, state, local and foreign jurisdictions in which we conduct business. Foreign jurisdictions typically have different statutory tax rates from those in the United States. Accordingly, our effective tax rates may vary depending on the impact of the valuation allowance of our deferred tax assets and liabilities, and changes in tax laws. The Company has recognized a provision of $30.5 million for the year ended December 31, 2025 to reflect the change in tax payer status to a corporation as a result of the reorganization related to the initial public offering. This is $21.8 million higher compared to $8.7 million for the year ended December 31, 2024. 47 Table of Contents Segment Results of Operations The following tables set forth combined and consolidated income statement amounts categorized by segment, for the years indicated: Year Ended December 31, 2025 2024 (in Millions) United States United Kingdom Canada Latin America Total United States United Kingdom Canada Latin America Total Portfolio revenue $ 435.0 $ 25.4 $ 65.6 $ 40.4 $ 566.4 $ 288.0 $ 28.5 $ 48.2 $ 31.2 $ 395.9 Credit card revenue 2.6 — 4.6 — 7.2 2.7 — 5.6 — 8.3 Servicing revenue 12.7 25.4 1.6 — 39.7 4.9 23.8 0.4 — 29.1 Total Revenue $ 450.3 $ 50.8 $ 71.8 $ 40.4 $ 613.3 $ 295.6 $ 52.3 $ 54.2 $ 31.2 $ 433.3 Provision for credit losses $ 1.6 $ — $ 0.8 $ — $ 2.4 $ 1.9 $ — $ 1.6 $ — $ 3.5 Operating Expenses Salaries and benefits $ 42.9 $ 15.8 $ 5.2 $ 0.7 $ 64.6 $ 28.3 $ 14.1 $ 5.3 $ 0.4 $ 48.1 Servicing expenses 143.7 19.2 10.2 14.1 187.2 95.7 15.1 10.0 10.1 130.9 Depreciation and amortization 3.7 0.4 1.2 — 5.3 1.7 0.3 0.6 — 2.6 Professional fees 16.1 1.0 0.5 1.0 18.6 9.3 0.9 0.4 0.9 11.4 Other selling, general and administrative 14.3 2.6 1.3 0.6 18.8 12.5 2.4 1.2 0.4 16.6 Total Operating Expenses $ 220.7 $ 39.0 $ 18.4 $ 16.4 $ 294.4 $ 147.5 $ 32.8 $ 17.5 $ 11.8 $ 209.6 Net Operating Income $ 228.0 $ 11.8 $ 52.6 $ 24.0 $ 316.5 $ 146.2 $ 19.5 $ 35.1 $ 19.4 $ 220.3 Net operating income margin 50.6 % 23.2 % 73.3 % 59.4 % 51.6 % 49.5 % 37.3 % 64.8 % 62.2 % 50.8 % United States Year Ended December 31, Increase % (in Millions) 2025 2024 (Decrease) Change Portfolio revenue $ 435.0 $ 288.0 $ 147.0 51.0 % Credit card revenue 2.6 2.7 (0.1) (3.7) % Servicing revenue 12.7 4.9 7.8 159.2 % Total Revenue $ 450.3 $ 295.6 $ 154.7 52.3 % Provision for credit losses $ 1.6 $ 1.9 $ (0.3) (15.8) % Operating Expenses Salaries and benefits $ 42.9 $ 28.3 $ 14.6 51.6 % Servicing expenses 143.7 95.7 48.0 50.2 % Depreciation and amortization 3.7 1.7 2.0 117.6 % Professional fees 16.1 9.3 6.8 73.1 % Other selling, general and administrative 14.3 12.5 1.8 14.4 % Total Operating Expenses $ 220.7 $ 147.5 $ 73.2 49.6 % Net Operating Income $ 228.0 $ 146.2 $ 81.8 56.0 % Net operating income margin 50.6 % 49.5 % Portfolio revenue increased $147.0 million or 51.0% in the year ended December 31, 2025 compared to December 31, 2024, primarily due to deployment growth including the Conn’s portfolio acquisition in December 2024 which contributed $95.8 million of revenue as well as the Bluestem acquisition in December 2025 which contributed $5.4 million. Servicing revenue grew $7.8 million or 159.2% in the year ended December 31, 2025, primarily due to the Conn’s Portfolio Purchase, which contributed $10.0 million. 48 Table of Contents Salaries and benefits were $42.9 million for the year ended December 31, 2025, which is an increase of $14.6 million, or 51.6%, compared to $28.3 million for the year ended December 31, 2024. The increase is primarily due to the increase in personnel expense related to the Conn’s Portfolio acquisition of $9.7 million and stock-based compensation of $4.7 million. Servicing expenses were $143.7 million for the year ended December 31, 2025, an increase of $48.0 million, or 50.2%, compared to $95.7 million for the year ended December 31, 2024. The increase in servicing expenses was primarily driven by increased collections, and increased court costs of $18.6 million which are incurred upfront at the outset of consumer litigation in anticipation of generating future collections. Servicing expenses include $12.1 million from the Conn’s portfolio acquisition and $2.9 million from the Bluestem portfolio acquisition. Professional fees were $16.1 million for the year ended December 31, 2025, an increase of $6.8 million, or 73.1%, compared to $9.3 million for the year ended December 31, 2024. The increase was primarily due to one-time legal and professional fees incurred as part of the initial public offering in June 2025. Other selling, general and administrative expenses, which generally consist of rent expense, travel and entertainment expenses, and other general overhead expenses, were $14.3 million for the year ended December 31, 2025, an increase of $1.8 million or 14.4%, compared to $12.5 million for the year ended December 31, 2024. The increase is primarily due to additional expense recognized related to the Canaccede exit incentive of $1.4 million. Overall net operating income increased $81.8 million or 56.0% higher in the year ended December 31, 2025 than the year ended December 31, 2024 primarily due to continued growth in deployments and the result of the successful implementation of initiatives to reduce the cost to collect. $73.2 million was contributed from the Conn’s portfolio purchase and $2.5 million from the Bluestem portfolio. United Kingdom Year Ended December 31, Increase % (in Millions) 2025 2024 (Decrease) Change Portfolio revenue $ 25.4 $ 28.5 $ (3.1) (10.9) % Servicing revenue 25.4 23.8 1.6 6.7 % Total Revenue $ 50.8 $ 52.3 $ (1.5) (2.9) % Operating Expenses Salaries and benefits $ 15.8 $ 14.1 $ 1.7 12.1 % Servicing expenses 19.2 15.1 4.1 27.2 % Depreciation and amortization 0.4 0.3 0.1 33.3 % Professional fees 1.0 0.9 0.1 11.1 % Other selling, general and administrative 2.6 2.4 0.2 8.3 % Total Operating Expenses $ 39.0 $ 32.8 $ 6.2 18.9 % Net Operating Income $ 11.8 $ 19.5 $ (7.7) (39.5) % Net operating income margin 23.2 % 37.3 % Portfolio revenue decreased $3.1 million or 10.9% in the year ended December 31, 2025 compared to December 31, 2024 primarily due to lower deployments in the United Kingdom. Servicing revenue increased $1.6 million or 6.7% in the year ended December 31, 2025 compared to December 31, 2024 due to reduced third party servicing. Salaries and benefits increased $1.7 million or 12.1% in the year ended December 31, 2025 compared to December 31, 2024 primarily due to higher employee benefit costs. 49 Table of Contents Servicing expenses increased $4.1 million or 27.2% in the year ended December 31, 2025 compared to December 31, 2024 primarily due to court costs which are incurred upfront at the outset of consumer litigation in anticipation of generating future collections. Overall net operating income declined $7.7 million or 39.5% in the year ended December 31, 2025 compared to December 31, 2024 primarily due to lower deployments and higher servicing costs. Canada Year Ended December 31, Increase % (in Millions) 2025 2024 (Decrease) Change Portfolio revenue $ 65.6 $ 48.2 $ 17.4 36.1 % Credit card revenue 4.6 5.6 (1.0) (17.9) % Servicing revenue 1.6 0.4 1.2 300.0 % Total Revenue $ 71.8 $ 54.2 $ 17.6 32.5 % Provision for credit losses $ 0.8 $ 1.6 $ (0.8) (50.0) % Operating Expenses Salaries and benefits $ 5.2 $ 5.3 $ (0.1) (1.9) % Servicing expenses 10.2 10.0 0.2 2.0 % Depreciation and amortization 1.2 0.6 0.6 100.0 % Professional fees 0.5 0.4 0.1 25.0 % Other selling, general and administrative 1.3 1.2 0.1 8.3 % Total Operating Expenses $ 18.4 $ 17.5 $ 0.9 5.1 % Net Operating Income $ 52.6 $ 35.1 $ 17.5 49.9 % Net operating income margin 73.3 % 64.8 % Portfolio revenue increased $17.4 million or 36.1% in the year ended December 31, 2025 compared to December 31, 2024 primarily due to higher deployments. Servicing revenue increased $1.2 million or 300.0% in the year ended December 31, 2025 compared to December 31, 2024 due to continued organic growth. Depreciation and amortization expense increased $0.6 million or 100.0% in the year ended December 31, 2025 compared to December 31, 2024 primarily due to higher intangible amortization expense. Overall net operating income increased $17.5 million or 49.9% in the year ended December 31, 2025 compared to December 31, 2024 primarily due to increased deployments. 50 Table of Contents Latin America Year Ended December 31, Increase % (in Millions) 2025 2024 (Decrease) Change Portfolio revenue $ 40.4 $ 31.2 $ 9.2 29.5 % Total Revenue $ 40.4 $ 31.2 $ 9.2 29.5 % Operating Expenses Salaries and benefits $ 0.7 $ 0.4 $ 0.3 75.0 % Servicing expenses 14.1 10.1 4.0 39.6 % Depreciation and amortization — — — 0.0 % Professional fees 1.0 0.9 0.1 11.11 % Other selling, general and administrative 0.6 0.4 0.2 50.0 % Total Operating Expenses $ 16.4 $ 11.8 $ 4.6 39.0 % Net Operating Income $ 24.0 $ 19.4 $ 4.6 23.7 % Net operating income margin 59.4 % 62.2 % Portfolio revenue increased $9.2 million or 29.5% in the year ended December 31, 2025 compared to December 31, 2024 primarily due to strong collection performance. Servicing expense increased $4.0 million or 39.6% in the year ended December 31, 2025 compared to December 31, 2024 due to increased collections. Overall net operating income increased $4.7 million or 24.2% in the year ended December 31, 2025 compared to December 31, 2024 due to strong collection performance. 51 Table of Contents Supplemental Performance Data Investments in Receivables Portfolio Performance The accounts represented in the Insolvency category in the tables below are those portfolios of accounts that were in an insolvency status at the time of purchase. This contrasts with accounts in our Distressed portfolios that file for bankruptcy/insolvency protection after we purchase them, which continue to be tracked in their corresponding Distressed portfolio. Distressed customers sometimes file for bankruptcy/insolvency protection subsequent to our purchase of the related Distressed portfolio. When this occurs, we adjust our collection practices to comply with bankruptcy/insolvency rules and procedures; however, for accounting purposes, these accounts remain in the original Distressed portfolio. Insolvency accounts may be dismissed voluntarily or involuntarily subsequent to our purchase of the Insolvency portfolio. Dismissal occurs when the terms of the bankruptcy are not met by the petitioner. When this occurs, we are typically free to pursue collection outside of bankruptcy procedures; however, for accounting purposes, these accounts remain in the original Insolvency pool. Purchase price multiples can vary over time due to a variety of factors, including pricing competition, supply levels, age of the receivables acquired, and changes in our operational efficiency. This creates unique and advantageous purchasing opportunities, particularly within the Insolvency market, relative to the prior four years. Purchase price multiples can also vary among types of receivables. For example, we generally incur lower collection costs on our Insolvency portfolio compared with our Distressed portfolio. This allows us, in general, to pay more for an Insolvency portfolio and experience lower purchase price multiples, while generating similar net returns when compared with a Distressed portfolio. When competition increases and/or supply decreases, pricing often becomes negatively impacted relative to expected collections, and yields tend to trend lower. The opposite tends to occur when competition decreases and/or supply increases. Within a given portfolio type, to the extent that lower purchase price multiples are the result of more competitive pricing and lower net yields, this will generally lead to lower profitability. As portfolio pricing becomes more favorable on a relative basis, our profitability will tend to increase. Profitability within given Distressed portfolio types may also be impacted by the age and quality of the receivables, which impact the cost-to-collect on those accounts. Fresher accounts, for example, typically carry lower associated collection expenses, while older accounts and lower balance accounts typically carry higher costs and, as a result, require higher purchase price multiples to achieve the same net profitability as fresher paper. We acquire portfolios and record them at the price paid at the time of acquisition. Beginning in 2022, with the adoption of ASC 326 Financial instruments - Credit Losses (“CECL”), we aggregate the acquired pools during the year such that during the year the blended effective interest rate will change to reflect new buying and additional cash flow estimates until the end of the respective year. Once the year is completed, the effective interest rate is fixed at the amount we expect to collect discounted at the rate to equate purchase price to the recovery estimate. During the first year of purchase, we typically allow pools to season before making any material adjustments to the ERCs. Subsequent to the initial year, as we establish collection experience and confidence with a pool of accounts, we evaluate whether to update the annually aggregated ERC. These processes could cause the ratio of ERC to purchase price for any given year of buying to gradually change over time. The numbers presented in the following tables represent collections and do not reflect any costs to collect; therefore, they may not represent relative profitability. Due to all the factors described above, investors should be cautious when making comparisons of purchase price multiples among years and between types of receivables. 52 Table of Contents The following tables show certain data related to our investment in receivables portfolios. PURCHASE PRICE MULTIPLES AS OF DECEMBER 31, 2025 Excludes Resale as Noted at Bottom (in millions) Current Original Purchase Life-to-Date Total Grand Collection Collection Price (1)(2) Collections (3) ERC (4) Total Multiple Multiple (5) US Distressed 2003-2016 (6) $ 339.9 $ 1,012.6 $ 29.3 $ 1,041.9 3.07 x 2.28 x 2017 55.3 169.0 19.0 188.0 3.40 x 2.36 x 2018 76.2 209.7 28.6 238.3 3.13 x 2.70 x 2019 94.8 268.2 18.8 287.0 3.03 x 2.29 x Vintage 2020 74.1 179.8 39.5 219.4 2.96 x 2.20 x 2021 73.1 117.1 40.9 157.9 2.16 x 1.97 x 2022 142.1 162.2 119.9 282.0 1.98 x 2.00 x 2023 337.6 344.8 423.1 767.9 2.27 x 2.11 x 2024 481.5 451.1 572.7 1,023.8 2.13 x 1.98 x 2025 520.6 89.7 977.9 1,067.6 2.05 x 2.05 x Total $ 2,195.3 $ 3,004.2 $ 2,269.6 $ 5,273.8 US Insolvency 2003-2016 (6) $ 235.8 $ 366.0 $ 0.2 $ 366.2 1.55 x 1.72 x 2017 49.6 62.5 0.7 63.2 1.27 x 1.35 x 2018 86.7 106.9 1.3 108.2 1.25 x 1.30 x 2019 62.2 84.5 3.5 88.0 1.41 x 1.31 x Vintage 2020 30.1 43.0 6.2 49.2 1.63 x 1.40 x 2021 23.7 31.1 5.6 36.7 1.55 x 1.25 x 2022 40.7 42.4 9.8 52.3 1.28 x 1.30 x 2023 66.7 55.5 37.1 92.6 1.39 x 1.34 x 2024 71.1 31.9 64.2 96.1 1.35 x 1.39 x 2025 104.3 11.3 132.5 143.8 1.38 x 1.38 x Total $ 771.0 $ 835.1 $ 261.1 $ 1,096.2 UK Distressed & Insolvency 2009-2016 $ 22.9 $ 61.4 $ 2.5 $ 63.9 2.80 x 1.94 x 2017 0.8 3.9 0.6 4.5 5.41 x 1.90 x 2018 3.1 12.0 4.0 16.0 5.18 x 2.20 x 2019 7.1 18.2 4.3 22.5 3.18 x 1.91 x Vintage 2020 13.1 27.5 7.8 35.3 2.69 x 1.74 x 2021 19.4 27.1 11.1 38.1 1.97 x 1.67 x 2022 18.9 28.4 19.1 47.5 2.52 x 2.22 x 2023 26.7 31.7 36.6 68.3 2.56 x 2.08 x 2024 29.4 17.9 38.6 56.5 1.92 x 1.70 x 2025 32.0 2.8 65.7 68.5 2.14 x 2.14 x Total $ 173.4 $ 230.9 $ 190.3 $ 421.2 53 Table of Contents Current Original Purchase Life-to-Date Total Grand Collection Collection (in Millions) Price (1)(2) Collections (3) ERC (4) Total Multiple Multiple (5) Canada Insolvency(7) 2008-2016 $ 94.8 $ 187.4 $ 0.1 $ 187.5 1.98 x 1.67 x 2017 26.3 48.6 0.2 48.8 1.85 x 1.53 x 2018 40.9 85.5 0.7 86.2 2.11 x 1.80 x 2019 34.7 68.6 1.3 69.9 2.01 x 1.72 x Vintage 2020 29.3 52.9 1.9 54.8 1.87 x 1.60 x 2021 23.7 36.8 4.4 41.1 1.73 x 1.62 x 2022 18.5 21.3 7.0 28.2 1.53 x 1.47 x 2023 38.8 31.1 26.1 57.2 1.48 x 1.35 x 2024 61.9 25.0 68.1 93.1 1.50 x 1.38 x 2025 115.0 18.0 151.3 169.3 1.47 x 1.47 x Total $ 483.9 $ 575.1 $ 261.0 $ 836.1 Canada Distressed(1) 2008-2016 $ 57.5 $ 122.6 $ 3.8 $ 126.3 2.20 x 1.81 x 2017 23.2 55.0 3.2 58.2 2.51 x 2.17 x 2018 14.6 60.6 7.6 68.2 4.65 x 2.52 x 2019 12.8 41.2 3.1 44.3 3.46 x 2.19 x Vintage 2020 19.7 40.8 6.7 47.6 2.42 x 2.06 x 2021 9.2 14.1 4.1 18.3 1.99 x 1.79 x 2022 24.3 24.2 12.4 36.6 1.50 x 1.69 x 2023 18.4 16.0 17.3 33.3 1.81 x 1.61 x 2024 33.5 29.8 33.8 63.5 1.90 x 1.83 x 2025 26.6 8.5 39.2 47.7 1.80 x 1.80 x Total $ 239.7 $ 412.8 $ 131.2 $ 544.0 Latin America Distressed 2021 $ 7.9 $ 11.6 $ 8.2 $ 19.8 2.50 x 1.58 x 2022 25.0 37.5 33.8 71.3 2.86 x 2.67 x Vintage 2023 42.3 47.4 61.9 109.3 2.58 x 2.39 x 2024 45.8 31.1 90.4 121.5 2.65 x 2.35 x 2025 33.6 9.5 72.4 81.9 2.43 x 2.43 x Total $ 154.7 $ 137.1 $ 266.7 $ 403.8 54 Table of Contents Current Original Purchase Life-to-Date Total Grand Collection Collection (in Millions) Price (1)(2) Collections (3) ERC (4) Total Multiple Multiple (5) Total 2003-2016 (6) $ 750.8 $ 1,750.0 $ 35.9 $ 1,785.9 2.38 x 1.98 x 2017 155.3 339.0 23.6 362.6 2.34 x 1.87 x 2018 221.6 474.7 42.1 516.8 2.33 x 1.97 x 2019 211.6 480.7 31.0 511.7 2.42 x 1.89 x Vintage 2020 166.3 343.9 62.3 406.2 2.44 x 1.90 x 2021 156.9 237.7 74.2 311.9 1.99 x 1.74 x 2022 269.5 315.9 202.0 517.9 1.92 x 1.91 x 2023 530.5 526.6 602.1 1,128.7 2.13 x 1.96 x 2024 723.3 586.8 867.7 1,454.5 2.01 x 1.88 x 2025 832.1 139.8 1,439.0 1,578.8 1.90 x 1.90 x Total $ 4,017.9 $ 5,195.2 $ 3,379.8 $ 8,575.0 (1) Includes the portfolios that were acquired through our business acquisitions from the date of acquisition. Adjusted to include historical information from Canaccede Financial Group and its predecessor businesses. (2) For our non-U.S. amounts, purchase price is presented at the exchange rate on the date the pool was purchased. (3) For our non-U.S. amounts, historical year exchange rates are presented at the respective exchange rate for each collection year. (4) For our non-U.S. amounts, Total ERC is presented at the exchange rate as of December 31, 2025. . (5) The original estimated purchase price multiple represents the purchase price multiple at the end of the year of acquisition. (6) This vintage data excludes forward flow purchases that were resold between 2005 and 2008 shortly after purchase and does not reflect typical collection multiples as there is no cost-to-collect for accounts that were resold. 55 Table of Contents The following table illustrates collections from purchased receivables, total portfolio revenue for the year ended December 31, 2025 and investment in receivables, net as of December 31, 2025 and monthly EIR, by year of purchase: RECEIVABLE PORTFOLIO FINANCIAL INFORMATION, BY YEAR OF PURCHASE(1) (in millions) As of Year Ended December 31, 2025 December 31, 2025 Total Portfolio Changes in Portfolio Investments in Monthly Collections Income Recoveries Revenue Receivables, Net EIR US Distressed ZBA(1) $ 1.2 $ 1.2 $ — $ 1.2 $ — 0.0 % 2003 - 2019 35.8 32.9 (15.5) 17.4 36.9 6.1 % 2020 11.0 13.1 (6.9) 6.2 8.9 9.9 % 2021 12.9 11.0 (10.7) 0.3 22.1 3.2 % 2022 40.9 24.5 (10.4) 14.1 76.2 2.3 % 2023 148.7 89.6 (19.1) 70.5 254.8 2.5 % 2024 377.1 172.2 49.9 222.1 314.1 3.4 % 2025 89.4 61.8 25.8 87.6 518.7 2.8 % Subtotal $ 717.0 $ 406.3 $ 13.1 $ 419.4 $ 1,231.7 US Insolvency 2003 - 2019 2.2 1.4 (4.8) (3.4) 4.2 1.7 % 2020 2.5 0.9 (1.3) (0.4) 5.0 1.3 % 2021 2.2 0.9 0.2 1.1 4.3 1.6 % 2022 8.8 1.9 (1.0) 0.9 8.6 1.3 % 2023 19.6 5.7 (1.9) 3.8 31.4 1.2 % 2024 22.3 8.6 (2.5) 6.1 50.9 1.2 % 2025 11.3 6.9 0.6 7.5 100.5 1.1 % Subtotal $ 68.9 $ 26.3 $ (10.7) $ 15.6 $ 204.9 UK Distressed & Insolvency 2003 - 2019 $ 3.1 $ 2.5 (0.8) 1.7 4.1 4.4 % 2020 2.4 1.9 0.2 2.1 2.4 6.5 % 2021 4.6 2.5 1.8 4.3 6.7 3.0 % 2022 6.7 5.1 (2.1) 3.0 10.5 3.6 % 2023 12.1 10.0 (6.0) 4.0 20.7 3.4 % 2024 10.8 7.2 (0.4) 6.8 24.6 2.3 % 2025 2.8 3.2 0.3 3.5 32.9 2.8 % Subtotal $ 42.5 $ 32.4 $ (7.0) $ 25.4 $ 101.9 Canada Distressed ZBA(2) $ 1.2 $ 1.2 $ — $ 1.2 $ — 0.0 % 2020 6.2 5.5 (0.2) 5.3 3.1 12.7 % 2021 1.3 1.0 (0.1) 0.9 1.7 4.3 % 2022 4.2 2.6 (0.6) 2.0 6.8 2.8 % 2023 4.0 3.4 (2.0) 1.4 10.3 2.6 % 2024 14.2 7.3 — 7.3 20.1 2.6 % 2025 8.5 3.2 1.2 4.4 22.9 2.3 % Subtotal $ 39.6 $ 24.2 $ (1.7) $ 22.5 $ 64.9 Canada Insolvency ZBA $ 0.2 $ 0.2 $ — $ 0.2 $ — 0.0 % 2020 7.2 1.5 5.4 6.9 2.8 3.4 % 2021 6.7 1.4 0.9 2.3 3.6 1.9 % 2022 6.9 1.5 1.1 2.6 5.9 1.5 % 2023 17.1 4.0 2.0 6.0 21.9 1.2 % 2024 20.3 8.3 4.2 12.5 54.7 1.2 % 2025 18.0 9.3 3.3 12.6 112.8 1.2 % Subtotal $ 76.4 $ 26.2 $ 16.9 $ 43.1 $ 201.7 Latin America Distressed 2021 1.5 1.4 (0.4) 1.0 3.8 3.0 % 2022 8.0 7.6 (1.6) 6.0 10.6 5.8 % 2023 14.3 13.8 (3.7) 10.1 32.4 3.0 % 2024 20.8 16.0 — 16.0 43.2 2.5 % 2025 9.5 6.2 1.1 7.3 33.6 3.1 % Subtotal $ 54.1 $ 45.0 $ (4.6) $ 40.4 $ 123.6 Grand Total $ 998.5 $ 560.4 $ 6.0 $ 566.4 $ 1,928.7 Note: Not adjusted to include historical information from Canaccede Financial Group and its predecessor businesses. Results of Canaccede Financial Group and its predecessor businesses for deployments from prior to the date of our acquisition are consolidated in the 2020 vintage year. (1) Refers to revenue from zero basis accounts. 56 Table of Contents The following table illustrates historical collections, by year, on our portfolios. COLLECTIONS, BY YEAR OF PURCHASE Excludes Resale as Noted at Bottom (in millions) Collections Purchase 2003 - (in Millions) Price (1)(2) 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Total US Distressed 2003-2016(3)(4) $ 339.9 $ 679.3 $ 80.8 $ 66.8 $ 51.9 $ 41.1 $ 32.3 $ 21.4 $ 15.5 $ 13.1 $ 10.5 $ 1,012.6 2017 55.3 — 16.2 30.5 27.0 28.5 25.2 16.3 11.2 8.2 5.9 169.0 2018 76.2 — — 21.6 45.9 45.4 41.0 24.7 14.2 10.3 6.6 209.7 2019 94.8 — — — 26.8 74.8 62.3 44.5 28.6 18.3 12.9 268.2 Vintage 2020 74.1 — — — — 26.5 60.9 37.2 26.0 18.2 11.0 179.8 2021 73.1 — — — — — 23.1 37.8 24.8 18.3 12.9 117.1 2022 142.1 — — — — — — 16.5 55.1 49.6 41.0 162.2 2023 337.6 — — — — — — — 48.4 147.7 148.7 344.8 2024 481.5 — — — — — — — — 73.3 377.8 451.1 2025 520.6 — — — — — — — — — 89.7 89.7 Total $ 2,195.3 $ 679.3 $ 97.0 $ 118.9 $ 151.7 $ 216.2 $ 244.8 $ 198.4 $ 223.9 $ 357.1 $ 717.0 $ 3,004.2 US Insolvency 2003-2016(4) $ 235.8 $ 289.8 $ 34.1 $ 19.8 $ 11.6 $ 5.7 $ 2.9 $ 1.1 $ 0.6 $ 0.4 $ 0.3 $ 366.0 2017 49.6 — 9.3 19.6 14.4 9.2 6.1 2.6 0.8 0.4 0.2 62.5 2018 86.7 — — 16.0 34.9 23.8 17.1 9.7 3.6 1.1 0.5 106.9 2019 62.2 — — — 7.0 23.2 19.8 16.2 11.0 6.1 1.2 84.5 Vintage 2020 30.1 — — — — 3.5 10.5 10.8 9.0 6.7 2.5 43.0 2021 23.7 — — — — — 8.9 10.1 6.3 3.5 2.2 31.1 2022 40.7 — — — — — — 5.4 16.4 11.8 8.8 42.4 2023 66.7 — — — — — — — 12.7 23.2 19.6 55.5 2024 71.1 — — — — — — — — 9.6 22.3 31.9 2025 104.3 — — — — — — — — — 11.3 11.3 Total $ 771.0 $ 289.8 $ 43.3 $ 55.4 $ 67.9 $ 65.3 $ 65.4 $ 55.8 $ 60.3 $ 62.8 $ 68.9 $ 835.1 UK Distressed & Insolvency 2009-2016 $ 22.9 $ 40.8 $ 5.5 $ 3.4 $ 2.6 $ 2.1 $ 2.2 $ 1.5 $ 1.3 $ 1.1 $ 0.8 $ 61.4 2017 0.8 — 0.4 0.6 0.6 0.6 0.7 0.4 0.3 0.2 0.1 3.9 2018 3.1 — — 0.3 1.9 2.0 2.4 1.7 1.5 1.2 1.0 12.0 2019 7.1 — — — 0.8 4.7 5.1 3.0 2.1 1.4 1.1 18.2 Vintage 2020 13.1 — — — — 4.2 10.0 5.1 3.3 2.4 2.4 27.5 2021 19.4 — — — — — 4.6 7.0 6.6 4.4 4.6 27.1 2022 18.9 — — — — — — 2.6 10.9 8.2 6.7 28.4 2023 26.7 — — — — — — — 6.2 13.4 12.1 31.7 2024 29.4 — — — — — — — — 7.1 10.8 17.9 2025 32.0 — — — — — — — — — 2.8 2.8 Total $ 173.4 $ 40.8 $ 5.8 $ 4.2 $ 5.9 $ 13.7 $ 24.9 $ 21.3 $ 32.3 $ 39.4 $ 42.5 $ 230.9 57 Table of Contents Collections Purchase 2003 - Price (1)(2) 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Total CAD Insolvency(5) 2008-2016 $ 94.8 $ 89.5 $ 31.8 $ 26.5 $ 20.5 $ 12.5 $ 5.0 $ 0.7 $ 0.4 $ 0.2 $ 0.2 $ 187.4 2017 26.3 — 5.4 11.7 11.1 9.7 6.7 2.8 0.5 0.3 0.3 48.6 2018 40.9 — — 6.4 16.9 21.2 19.3 13.5 6.4 1.2 0.6 85.5 2019 34.7 — — — 3.4 12.6 18.7 15.2 11.2 6.2 1.3 68.6 Vintage 2020 29.3 — — — — 3.4 11.7 13.8 11.2 8.0 4.9 52.9 2021 23.7 — — — — — 3.1 8.5 10.1 8.3 6.7 36.8 2022 18.5 — — — — — — 1.5 5.9 6.9 6.9 21.3 2023 38.8 — — — — — — — 3.0 11.0 17.1 31.1 2024 61.9 — — — — — — — — 4.8 20.3 25.0 2025 115.0 — — — — — — — — — 18.0 18.0 Total $ 483.9 $ 89.5 $ 37.2 $ 44.6 $ 51.9 $ 59.5 $ 64.6 $ 56.0 $ 48.5 $ 46.8 $ 76.4 $ 575.1 CAD Distressed(5)(6) 2008-2016 $ 57.5 $ 70.7 $ 13.3 $ 10.4 $ 7.9 $ 6.2 $ 5.2 $ 4.1 $ 2.5 $ 1.2 $ 1.3 $ 122.6 2017 23.2 — 10.4 12.5 9.4 7.1 6.2 4.2 2.6 1.6 1.0 55.0 2018 14.6 — — 6.5 16.2 11.0 9.4 7.1 4.8 3.1 2.5 60.6 2019 12.8 — — — 13.4 10.7 8.1 4.6 2.4 1.2 0.9 41.2 Vintage 2020 19.7 — — — — 10.7 12.7 7.7 4.7 3.1 1.9 40.8 2021 9.2 — — — — — 4.4 4.3 2.3 1.9 1.3 14.1 2022 24.3 — — — — — — 7.3 8.1 4.6 4.2 24.2 2023 18.4 — — — — — — — 5.7 6.3 4.0 16.0 2024 33.5 — — — — — — — — 15.6 14.2 29.8 2025 26.6 — — — — — — — — — 8.5 8.5 Total $ 239.7 $ 70.7 $ 23.7 $ 29.4 $ 46.8 $ 45.6 $ 45.9 $ 39.2 $ 33.2 $ 38.6 $ 39.6 $ 412.8 LatAm Distressed 2021 $ 7.9 $ — $ — $ — $ — $ — $ 0.8 $ 5.2 $ 2.3 $ 1.7 $ 1.5 $ 11.6 2022 25.0 — — — — — — 6.0 14.4 9.2 8.0 37.5 Vintage 2023 42.3 — — — — — — — 15.4 17.7 14.3 47.4 2024 45.8 — — — — — — — — 10.3 20.8 31.1 2025 33.6 — — — — — — — — — 9.5 9.5 Total $ 154.7 $ — $ — $ — $ — $ — $ 0.8 $ 11.2 $ 32.0 $ 39.0 $ 54.1 $ 137.1 Total 2003-2015(4) $ 750.8 $ 1,170.1 $ 165.4 $ 126.8 $ 94.5 $ 67.5 $ 47.6 $ 28.8 $ 20.3 $ 16.0 $ 13.0 $ 1,750.0 2017 155.3 — 41.7 75.0 62.5 55.1 44.9 26.3 15.3 10.8 7.5 339.0 2018 221.6 — — 50.8 115.8 103.5 89.1 56.7 30.6 16.9 11.3 474.7 2019 211.6 — — — 51.3 126.0 114.0 83.4 55.3 33.3 17.4 480.7 Vintage 2020 166.3 — — — — 48.3 105.8 74.6 54.2 38.4 22.7 343.9 2021 156.9 — — — — — 45.0 72.9 52.5 38.1 29.2 237.7 2022 269.5 — — — — — — 39.3 110.8 90.3 75.5 315.9 2023 530.5 — — — — — — — 91.3 219.3 215.9 526.6 2024 723.3 — — — — — — — — 120.6 466.2 586.8 2025 832.1 — — — — — — — — — 139.8 139.8 Total $ 4,017.9 $ 1,170.1 $ 207.0 $ 252.6 $ 324.2 $ 400.4 $ 446.4 $ 382.0 $ 430.2 $ 583.7 $ 998.5 $ 5,195.2 (1) Includes the acquisition date finance receivables portfolios that were acquired through our business acquisitions from the date of acquisition. (2) For our non-U.S. amounts, purchase price is presented at the exchange rate on the date the pool was purchased. (3) U.S. Distressed excludes credit card collections from zero basis accounts associated with our Emblem Brand Credit Card, which totaled $0.0 million in the year ended December 31, 2025 and $0.1 million in the year ended December 31, 2024. (4) Excludes forward flow purchases that were resold between 2005 and 2008 shortly after purchase and do not reflect typical collection multiples as there is no cost-to-collect for accounts that were resold. (5) Adjusted to include historical information from Canaccede Financial Group and its predecessor businesses and excludes collections associated with recovering charged-off accounts in our credit card origination business. (6) Canada Distressed excludes collections from zero basis accounts associated with Fidem Finance, Inc., which totaled $0.0 million in the year ended December 31, 2025 and $0.1 million in the year ended December 31, 2024. 58 Table of Contents Deployments The following table displays our quarterly deployments for the years indicated. Deployments by Geography and Business Line Years ended December 31, (in Millions) 2025 2024 US Distressed $ 520.5 $ 481.6 US Insolvency 104.3 71.1 UK Distressed & Insolvency 32.0 29.4 Canada Insolvency 115.0 61.9 Canada Distressed 26.6 33.5 Latin America Distressed 33.6 45.8 Total Purchases $ 832.0 $ 723.3 Liquidity and Capital Resources We actively manage our liquidity to help provide access to sufficient funding to meet our business needs and financial obligations. As of December 31, 2025, unrestricted cash and cash equivalents totaled $23.2 million. Of the unrestricted cash and cash equivalent balance as of December 31, 2025, $15.7 million consisted of cash on hand related to international operations with indefinitely reinvested earnings. Management believes that the Company has sufficient liquidity available to meet our operating cash needs and obligations for the next twelve months and the foreseeable future. As of December 31, 2025, we had approximately $1,409.0 million in borrowings outstanding, net of unamortized debt issuance costs with $768.4 million of availability under our Revolving Credit Facility (as defined herein) (subject to the borrowing base and applicable debt covenants). Considering borrowing base restrictions, as of December 31, 2025, the amount available to be drawn was $768.4 million. For more information, see Note 8 to our combined and consolidated financial statements. Net debt is calculated as total borrowings, adjusted to remove the contra-liability for unamortized debt issuance costs and subtract unrestricted cash. We present net debt because we consider it an important supplemental measure used for assessing our leverage. Our management believes net debt helps us provide enhanced year-to-year comparability of leverage and is useful to investors as other companies in our industry report similar financial measures. Net debt should not be considered as an alternative to total borrowings determined in accordance with GAAP. Our calculation of net debt may not be comparable to the calculation of similarly titled measures reported by other companies. Year Ended December 31, (in Millions) 2025 2024 Total borrowings $ 1,409.0 $ 1,194.7 Unamortized debt issuance costs 22.5 13.4 Unrestricted cash and cash equivalents (23.2) (35.5) Net debt 1,408.4 1,172.6 Adjusted cash EBITDA 773.6 430.8 Leverage ratio (net debt / adjusted cash EBITDA) 1.82 x 2.72 x Our leverage is measured for purposes of our financial covenants in our Revolving Credit Facility based on a ratio of net debt to adjusted cash EBITDA but focused on just the Borrowers (as defined below) and as such, excludes adjusted cash EBITDA related to our Latin America operations as well as to a small portion of our Canadian assets. Additionally, the rating agencies who rate our Senior Notes look to the ratio of net debt to adjusted cash EBITDA as a primary metric in their ratings methodology. Additional information regarding adjusted cash EBITDA, a non-GAAP financial measure, is outlined further below. We were in compliance with the covenants of our financing arrangements as of December 31, 2025. Financial covenants are important in determining the level of cash flow needed to maintain in relation to our ability to incur debt under our 59 Table of Contents Revolving Credit Facility. If these financial covenants are not complied with, we would be in breach of our Revolving Credit Facility agreement if not cured through an additional pay down within the designated timeframe. Adjusted Cash EBITDA Adjusted cash EBITDA is a supplemental non-GAAP financial measure used to evaluate our liquidity. Management believes adjusted cash EBITDA helps provide enhanced year-to-year comparability of our cash flow by aligning our collection expenses with our collections. Adjusted cash EBITDA should not be considered as an alternative to net cash provided by operating activities determined in accordance with GAAP. Some of the limitations related to the use of adjusted cash EBITDA as an analytical tool include: ◾ does not reflect our future requirements for capital expenditures or contractual commitments; ◾ does not reflect changes in, or cash requirements for, our working capital needs; ◾ does not reflect the interest expense, or the cash requirements necessary to make interest or principal payments, on our debts; ◾ although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will have to be replaced in the future, and adjusted cash EBITDA does not reflect any cash requirements for such replacements; and ◾ other companies in our industry may calculate adjusted cash EBITDA differently than we do, limiting its usefulness as a comparative measure. Because of these limitations, adjusted cash EBITDA should not be considered as a measure of discretionary cash available to us to invest in the growth of our business. Set forth below is a reconciliation of adjusted cash EBITDA to net cash provided by operating activities. Year Ended December 31, (in millions) 2025 2024 Net cash provided by operating activities $ 268.8 $ 168.2 Changes in prepaid expenses (0.5) 7.8 Changes in accounts payable and accrued expenses (46.9) (36.7) Provision for credit losses (2.4) (3.5) Foreign exchange and other income (expense) (7.7) 5.5 Cash interest paid 95.5 73.0 Provision for income taxes 30.5 8.7 Total portfolio revenue (566.4) (395.9) Gross collections 998.7 584.5 Stock-based compensation (7.9) 4.5 Canaccede exit incentive 1.4 7.7 Merger and acquisition and initial public offering related expenses 10.5 7.0 Adjusted Cash EBITDA $ 773.6 $ 430.8 Revolving Credit Facility On November 13, 2024, we amended our revolving credit facility (as supplemented or otherwise modified from time to time, the “Revolving Credit Facility”) under our Credit Agreement (defined below) with Citizens Bank, N.A., as administrative agent, and the lenders from time-to-time party thereto. As amended, the Revolving Credit Facility provides for borrowings in an aggregate principal amount of $825.0 million (subject to compliance with a borrowing base and applicable debt covenants) and matures on April 26, 2028. In May 2025, we issued $500.0 million aggregate principal amount of 2030 Notes (as defined below) and used a majority of the proceeds therefrom, net of fees, to pay down the outstanding balance under the Revolving Credit Facility. On October 27, 2025 the Company further amended and extended its credit agreement dated May 21, 2021, by and among CL Holdings, LLC, Jefferson Capital Systems, LLC, JC 60 Table of Contents International Acquisition, LLC, CFG Canada Funding LLC, Citizens Banks, N.A. and the lenders from time-to-time party thereto (the “Credit Agreement”) to an aggregate commitment of $1.0 billion via a syndication led by Citizens Bank. As of December 31, 2025, there was $231.6 million aggregate principal amount of loans outstanding under the Revolving Credit Facility. 6.000% Senior Notes due 2026 On August 4, 2021, Jefferson Capital Holdings, LLC completed an offering of $300.0 million aggregate principal amount of 6.000% senior notes due 2026 (the “2026 Notes”) under an indenture (the “2026 Notes Indenture”), dated as of August 4, 2021, among Jefferson Capital, Holdings, LLC, the guarantors party thereto and U.S. Bank Trust Company, National Association (as successor to U.S. Bank National Association), as trustee. The 2026 Notes are general senior unsecured obligations of Jefferson Capital Holdings, LLC and are guaranteed by certain of Jefferson Capital Holdings, LLC’s wholly-owned domestic restricted subsidiaries. Interest on the 2026 Notes is payable semi-annually on February 15 and August 15 of each year, commencing on February 15, 2022. The 2026 Notes mature on August 15, 2026. As of December 31, 2025 there was $300.0 million aggregate principal amount of the 2026 Notes outstanding. 9.500% Senior Notes due 2029 On February 2, 2024, Jefferson Capital Holdings, LLC completed an offering of $400.0 million aggregate principal amount of 9.500% senior notes due 2029 (the “2029 Notes”) under an indenture (the “2029 Notes Indenture”), dated as of February 2, 2024, among Jefferson Capital Holdings, LLC, the guarantors party thereto and U.S. Bank Trust Company, National Association, as trustee. The 2029 Notes are general senior unsecured obligations of Jefferson Capital Holdings, LLC and are guaranteed by certain of Jefferson Capital Holdings, LLC’s wholly-owned domestic restricted subsidiaries. Interest on the 2029 Notes is payable semi-annually on February 15 and August 15 of each year, commencing on August 15, 2024. As of December 31, 2025, there was approximately $400.0 million aggregate principal amount of the 2029 Notes outstanding. The 2029 Notes mature on February 15, 2029. 8.250% Senior Notes due 2030 On May 2, 2025, Jefferson Capital Holdings, LLC completed an offering of $500.0 million aggregate principal amount of 8.250% senior notes due 2030 (the “2030 Notes”) under an indenture (the “New Notes Indenture”), dated as of May 2, 2025, among Jefferson Capital Holdings, LLC, the guarantors party thereto and U.S. Bank Trust Company, National Association, as trustee. The 2030 Notes are general senior unsecured obligations of Jefferson Capital Holdings, LLC and are guaranteed by certain of Jefferson Capital Holdings, LLC’s wholly-owned domestic restricted subsidiaries. Interest on the 2030 Notes is payable semi-annually on May 15 and November 15 of each year, commencing on November 15, 2025. As of December 31, 2025, there was approximately $500.0 million aggregate principal amount of the 2030 Notes outstanding. The 2030 Notes mature on May 15, 2030. Cash Flows Analysis for the Years Ended December 31, 2025 and 2024 The following table summarizes our cash flow activity for the years ended: Year Ended (in Millions) December 31, Increase % Total cash flow provided by / (used in) 2025 2024 (Decrease) Change Operating activities $ 268.8 $ 168.2 $ 100.6 59.8 % Investing activities (401.9) (542.4) 140.4 (25.9) % Financing activities 149.7 388.8 (239.1) (61.5) % Exchange rate effects on cash balances held in foreign currencies (7.3) 3.0 (10.3) (347.4) % Net increase (decrease) in cash and cash equivalents and restricted cash $ 9.3 $ 17.6 $ (8.3) (47.2) % Operating Activities The change in our cash flows from operating activities in the year ended December 31, 2025 was primarily due to collections recognized as revenue offset by cash paid for operating expenses, interest, and income taxes. Key drivers of operating activities were adjusted for (i) non-cash items included in net income such as provisions for credit losses and depreciation and amortization and (ii) changes in the balances of operating assets and liabilities, which can vary 61 Table of Contents significantly in the normal course of business due to the amount and timing of payments. Net cash provided by operating activities increased $100.6 million, or 59.8%, when compared to the year ended December 31, 2024. Investing Activities Cash used in investing activities is normally driven by purchases of investments in receivables. Cash provided by investing activities is mainly driven by collections applied to investments in receivables. The change in our cash flow from investing activities increased $140.4 million in the year ended December 31, 2025, primarily due to increased collections applied to investment in receivables of $432.3 million when compared to the year ended December 31, 2024. Financing Activities Cash from financing activities is normally provided by draws on our Revolving Credit Facility and proceeds from debt offerings. Cash used in financing activities is primarily driven by principal payments on our Revolving Credit Facility. The change in our cash flow from financing activities decreased $239.1 million, primarily due to payments on our borrowings under our Revolving Credit Facility compared to the year ended December 31, 2024. Contractual Obligations Our contractual obligations as of December 31, 2025 were as follows: Less Than 1 - 3 4 - 5 More Than (in millions) Total 1 Year Years Years 5 Years Operating leases $ 5.0 $ 1.3 $ 2.6 $ 0.5 $ 0.6 Revolving credit facility(1) 238.4 238.4 — — — Notes payable(2) 1,515.4 392.0 158.5 964.9 — Purchase commitments(3) 274.5 224.8 49.7 — — Other liabilities 9.5 0.3 9.2 — — Total $ 2,042.8 $ 856.8 $ 220.0 $ 965.4 $ 0.6 (1) Includes estimated interest and unused line fees due on our Revolving Credit Facility and assumes that the outstanding balance on such facility remain constant from the December 31, 2025 balance to maturity. (2) Includes scheduled interest and principal payments on the 2026 Notes, 2029 Notes and 2030 Notes. (3) Reflects the expected remaining amount to be purchased under forward flow and other contracts for the purchase of receivable portfolios. 62 Table of Contents Critical Accounting Estimates The discussion and analysis of our financial condition and results of operations are based upon our combined and consolidated financial statements, which have been prepared in accordance with GAAP. Our significant accounting policies are fundamental to understanding our results of operations and financial condition because they require that we use estimates, assumptions and judgments that affect the reported amounts of revenues, expenses, assets and liabilities. Our significant accounting estimates are discussed in Note 1 to our combined and consolidated financial statements. We have identified the total portfolio revenue estimate as critical because it requires significant judgment and assumptions about highly complex and inherently uncertain matters, and the use of reasonably different estimates and assumptions could have a material impact on our results of operations or financial condition. We evaluate our critical accounting estimates and judgments on an ongoing basis and update them as necessary, based on several items, including, but not limited to, changing macroeconomic and market conditions. Total portfolio revenue Total portfolio revenue recognition involves the use of estimates and the exercise of judgment on the part of management. These estimates include forecasts of the amount and timing of cash collections we expect to receive from our pools of accounts. We forecast ERC and apply a discounted cash flow methodology to our ERC. Adjustments to ERC may include adjustments reflecting recent collection trends, our view of current and future economic conditions, changes in collection assumptions or other timing-related adjustments. Significant changes in our cash flow estimates could result in increased or decreased revenue as we immediately recognize the discounted value of such changes using the constant effective interest rate of the pool. Generally, adjustments to cash forecasts result in an adjustment to revenue at an amount less than the impact of the performance in the period due to the effects of discounting. Additionally, cash collection forecast increases will result in more revenue being recognized while cash collection forecast decreases result in less revenue being recognized over the life of the pool. The following table summarizes the impact of a hypothetical 1% decrease and increase in ERC as of December 31, 2025 and 2024 on total portfolio revenue and income before taxes: 1% Reduction in ERC 1% Increase in ERC Impact on Impact on Portfolio Portfolio Income Portfolio Income ($ in Millions) ERC Revenue ERC Revenue Before Taxes ERC Revenue Before Taxes 2025 $ 3,379.8 $ 566.4 $ 3,346.0 $ 538.1 $ (28.3) $ 3,413.6 $ 594.7 $ 28.3 2024 $ 2,744.5 $ 395.9 $ 2,717.1 $ 373.6 $ (22.3) $ 2,772.0 $ 418.2 $ 22.3 63 Table of Contents