UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2025

or

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from              to

Commission File Number 001-42718

Jefferson Capital, Inc.

(Exact name of registrant as specified in its charter)

DELAWARE	33-1923926
(State or other jurisdiction of incorporation or organization)	(IRS Employer Identification No.)

600 SOUTH HIGHWAY 169, SUITE 1575,

MINNEAPOLIS, MINNESOTA 55426

(Address of principal executive offices, zip code)

(320) 229-8505

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of Each Class	Trading Symbol(s)	Name of Each Exchange on which Registered
Common stock, $0.0001 par value per share	JCAP	Nasdaq Global Select Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes  ☒  No  ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes  ☒  No  ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer  ☐	Accelerated filer  ☐
Non-accelerated filer  ☒	Smaller reporting company  ☐
	Emerging growth company  ☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes  ☐  No  ☒

The number of shares of the registrant’s common stock outstanding as of November 14, 2025 was 58,290,473.

TABLE OF CONTENTS

		Page
Part I	Financial Information
Item 1.	Combined and Condensed Consolidated Balance Sheets as of September 30, 2025 and December 31, 2024 (Unaudited)	6
	Combined and Condensed Consolidated Statements of Operations and Comprehensive Income for the three and nine months ended September 30, 2025 and 2024 (Unaudited)	7
	Combined and Condensed Consolidated Statements of Shareholders’ Equity for the three and nine months ended September 30, 2025 and 2024 (Unaudited)	8
	Combined and Condensed Consolidated Statements of Cash Flows for the nine months ended September 30, 2025 and 2024 (Unaudited)	9
	Notes to Combined and Condensed Consolidated Financial Statements (Unaudited)	11
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	34
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	68
Item 4.	Controls and Procedures	69
Part II	Other Information	70
Item 1.	Legal Proceedings	70
Item 1A.	Risk Factors	70
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	89
Item 3.	Defaults Upon Senior Securities	89
Item 4.	Mine Safety Disclosures	89
Item 5.	Other Information	90
Item 6.	Exhibits	90
Exhibit Index		90
Signatures		92

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BASIS OF PRESENTATION

Except as otherwise indicated or as the context otherwise requires, all references in this Quarterly Report on Form 10-Q (the “Quarterly Report”) to the “Company,” “we,” “our,” and “us” and similar terms refer to Jefferson Capital, Inc. a Delaware corporation, together with its subsidiaries. Unless otherwise indicated, all references to our financial information are to the combined and condensed consolidated financial information of the Company and references to “dollars” and “$” in this Quarterly Report are to, and amounts are presented in, U.S. dollars. Financial data as of and for the three months and nine months ended September 30, 2025 and December 31, 2024, relate to financial information of the Company on a combined and condensed consolidated basis. All amounts referred to in the combined and condensed consolidated financial statements have been rounded nearest thousandth, unless otherwise stated.  All percentages are calculated based on actual amounts. Minor differences may exist due to rounding.

Special Note Regarding Forward-Looking Statements

This Quarterly Report contains forward-looking statements about Jefferson Capital, Inc. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Statements that are not historical or current facts, including statements about beliefs and expectations, are forward-looking statements and are based on the information available to, and assumptions and estimates made by, management as of the date hereof. These forward-looking statements cover, among other things, future economic conditions and the anticipated future revenue, expenses, financial condition, asset quality, capital and liquidity levels, plans, prospects and operations of Jefferson Capital, Inc. Forward-looking statements often use words such as “anticipates,” “targets,” “expects,” “hopes,” “estimates,” “projects,” “forecasts,” “intends,” “plans,” “goals,” “believes,” “continue” and other similar expressions or future or conditional verbs such as “will,” “may,” “might,” “should,” “would” and “could.”

Forward-looking statements involve inherent risks and uncertainties that could cause actual results to differ materially from those set forth in forward-looking statements. Factors that may materially affect such forward-looking statements include:

● Deterioration in general business and economic conditions or turbulence in domestic or global financial markets, which could adversely affect Jefferson Capital, Inc.’s revenues and the values of its assets and liabilities;

● Turmoil and volatility in the financial services industry;

● Actions taken by governmental agencies to stabilize the financial system and the effectiveness of such actions;

● Changes in interest rates;

● Increases in unemployment rates;

● Impacts of current, pending or future litigation and governmental proceedings;

● Increased competition from both banks and non-banks;

● Effects of climate change and related physical and transition risks;

● Changes in customer behavior and preferences and the ability to implement technological changes to respond to customer needs and meet competitive demands;

● Failures or disruptions in or breaches of Jefferson Capital, Inc’s operational, technology or security systems or infrastructure, or those of third parties, including as a result of cybersecurity incidents;

● Failures to safeguard personal information;

● Impacts of pandemics, natural disasters, terrorist activities, civil unrest, international hostilities and geopolitical events;

● Impacts of supply chain disruptions, rising inflation, slower growth or a recession;

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● Failure to execute on strategic or operational plans;

● Effects of mergers and acquisitions and related integration;

● Effects of critical accounting policies and judgments;

● Effects of changes in or interpretations of tax laws and regulations; and

● Management’s ability to effectively manage market risk, operational risk, compliance risk, strategic risk, liquidity risk and reputation risk.

Factors other than these risks, including those described under the sections in this Quarterly Report entitled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and elsewhere in this Quarterly Report, also could adversely affect Jefferson Capital, Inc.’s results, and the reader should not consider these risks to be a complete set of all potential risks or uncertainties. Readers are cautioned not to place undue reliance on any forward-looking statements. Forward-looking statements speak only as of the date hereof, and Jefferson Capital, Inc. undertakes no obligation to update them in light of new information or future events, except as required by applicable law.

In addition, statements that “we believe” and similar statements reflect our beliefs and opinions on the relevant subject. These statements are based upon information available to us as of the date of this Quarterly Report, and while we believe such information forms a reasonable basis for such statements, such information may be limited or incomplete, and our statements should not be read to indicate that we have conducted an exhaustive inquiry into, or review of, all potentially available relevant information. These statements are inherently uncertain and investors are cautioned not to unduly rely upon these statements.

Summary Risk Factors

Investing in our common stock involves substantial risk. Our ability to execute our strategy is also subject to certain risks. The risks described under the heading “Risk Factors” in this Quarterly Report may cause us not to realize the full benefits of our strengths or may cause us to be unable to successfully execute all or part of our strategy. Some of the most significant challenges and risks we face include the following:

● A deterioration in the economic or inflationary environment in the countries in which we operate could have an adverse effect on our business and results of operations.

● We may not be able to continually replace our nonperforming loans with additional portfolios sufficient to operate efficiently and profitably, or we may not be able to purchase nonperforming loans at appropriate prices.

● We may not be able to collect sufficient amounts on our nonperforming loans to fund our operations.

● Our collections may decrease if certain types of insolvency proceedings and bankruptcy filings involving liquidations increase.

● We outsource and offshore certain activities related to our business to third parties. Any disruption or failure of these third parties to provide these services could adversely affect our business operations, financial condition and reputation.

● Disruptions at our co-sourced operation in Mumbai could adversely impact our business.

● Goodwill impairment charges could negatively impact our net income and stockholders’ equity.

● Our loss contingency accruals may not be adequate to cover actual losses.

● Solicitors of Moriarty, our wholly-owned law firm subsidiary in the United Kingdom, could act outside our interests and/or regulatory bodies to which such law firm subsidiary and its solicitors are subject could take enforcement action or impose sanctions that could impact our business, financial condition and results of operations.

● Our expected collections from the Conn’s Portfolio Purchase may not be realized, or our expenses from the full-time equivalents (“FTE”) that were formerly employed by Conn’s may be higher than we anticipated, which may adversely impact our financial results.

● Our international operations expose us to risks, which could harm our business, financial condition and results of operations.

4

● We may experience losses on portfolios consisting of new asset classes of receivables or receivables in new geographies due to our lack of collection experience with these receivables, which could harm our business, financial condition and results of operations.

● Compliance with complex and evolving international and U.S. laws and regulations that apply to our international operations could increase our cost of doing business in international jurisdictions.

● Evolving regulation, particularly in Latin America, where the regulatory environment is less restrictive with respect to the use of certain new technologies and where we test new collection capabilities before broader adoption across our business, could adversely affect our business, financial condition, and results of operations.

● Our ability to collect and enforce our nonperforming and performing loans may be limited under federal, state, and international laws, regulations, and policies.

● The regulation of data privacy in the United States and globally, or an inability to effectively manage our data governance structures, could have an adverse effect on our business, financial condition, and results of operations by increasing our compliance costs or decreasing our competitiveness.

● We are dependent on our data gathering systems and proprietary consumer profiles, and if access to such data was lost or became public, our business could be materially and adversely affected.

● A cybersecurity incident could damage our reputation and adversely impact our business and financial results.

● The underperformance or failure of our information technology infrastructure, networks or communication systems could result in a loss in productivity, loss of competitive advantage and business disruption.

● We may not be able to adequately protect the intellectual property rights upon which we rely and, as a result, any lack of protection may diminish our competitive advantage.

● Our use of machine learning and AI technologies could adversely affect our products and services, harm our reputation, or cause us to incur liability resulting from harm to individuals or violation of laws and regulations or contracts to which we are a party.

● We expect to use leverage in executing our business strategy, which may have adverse consequences.

● We may not be able to generate sufficient cash flow or complete alternative financing plans, including raising additional capital, to meet our debt service obligations.

● The JCF Stockholders (as defined below) control us, and their interests may conflict with ours or yours in the future, including with respect to matters that involve corporate opportunities.

● We are a “controlled company” within the meaning of the corporate governance rules of the Nasdaq and, as a result, we qualify for exemptions from certain corporate governance requirements. You will not have the same protections as those afforded to stockholders of companies that are subject to such governance requirements.

5

Part 1. Financial Information

Jefferson Capital, Inc.

Combined and Condensed Consolidated Balance Sheets

(Unaudited, in Thousands)

	September 30,		December 31,
	2025		2024
Assets
Cash and cash equivalents	$	42,270	$	35,506
Restricted cash		3,801		2,737
Accounts receivable		17,297		16,532
Other assets		15,518		14,390
Investments in receivables, net		1,640,809		1,497,748
Credit card receivables (net of allowance for		16,180		17,176
credit losses of $1,751 and $1,907)
Property, plant and equipment, net		1,867		2,274
Other intangible assets, net		7,273		10,237
Goodwill		57,906		57,683
Total Assets	$	1,802,921	$	1,654,283
Liabilities
Accounts payable and accrued expenses	$	78,272	$	69,975
Other liabilities		4,569		4,860
Current tax liabilities		1,248		—
Deferred tax liabilities		98,876		2,193
Notes payable, net		1,182,584		1,194,726
Total Liabilities	$	1,365,549	$	1,271,754
Stockholder's Equity
Common Stock par value $0.0001 per share; 330,000,000 shares and 0 shares authorized as of September 30, 2025 and December 31, 2024 and 58,290,473 and 0 shares issued and outstanding as of September 30, 2025 and December 31, 2024	$	6	$	—
Additional paid-in capital		(60,748)		—
Retained earnings		500,414		398,122
Accumulated other comprehensive income (loss)		(2,300)		(15,593)
Total stockholder's equity	$	437,372	$	382,529
Total Liabilities and Stockholder's Equity	$	1,802,921	$	1,654,283

See accompanying notes to the combined and condensed consolidated financial statements.

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Jefferson Capital, Inc.

Combined and Condensed Consolidated Statements of Operations and Comprehensive Income

(Unaudited in Thousands, except for Earnings Per Share amounts)

	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2025		2024		2025		2024
Revenues
Total portfolio income	$	139,179	$	99,258	$	416,749	$	285,362
Changes in recoveries		494		1,690		5,670		1,565
Total portfolio revenue		139,673		100,948		422,419		286,927
Credit card revenue		1,755		2,048		5,450		6,353
Servicing revenue		9,414		7,605		30,621		21,080
Total Revenues		150,842		110,601		458,490		314,360
Provision for credit losses		569		867		1,670		2,637
Operating Expenses
Salaries and benefits		23,314		12,567		43,590		35,973
Servicing expenses		47,609		33,246		133,948		95,873
Depreciation and amortization		1,350		548		4,206		1,678
Professional fees		3,743		1,894		15,353		5,930
Other selling, general and administrative		4,221		2,052		13,783		5,769
Total Operating Expenses		80,237		50,307		210,880		145,223
Net Operating Income		70,036		59,427		245,940		166,500
Other Income (Expense)
Interest expense		(26,467)		(19,753)		(77,184)		(55,187)
Foreign exchange and other income (expense)		1,944		(440)		5,564		(3,181)
Total other expense		(24,523)		(20,193)		(71,620)		(58,368)
Income Before Income Taxes		45,513		39,234		174,320		108,132
Provision for income taxes		(7,151)		(2,356)		(24,086)		(6,195)
Net Income		38,362		36,878		150,234		101,937
Foreign currency translation gain / (loss)		(5,023)		4,851		13,293		(1,045)
Comprehensive Income	$	33,339	$	41,729	$	163,527	$	100,892
Earnings per share
Basic	$	0.59	$	—	$	6.60	$	—
Diluted		0.59		—		6.60		—
Weighted average common shares outstanding
Basic		58,279		—		20,493		—
Diluted		58,279		—		20,493		—

See accompanying notes to the combined and condensed consolidated financial statements.

7

Jefferson Capital, Inc.

Combined and Condensed Consolidated Statements of Stockholder’s Equity

(Unaudited, in Thousands, except per share and Dividend amounts)

								Accumulated
		Common Stock				Contributions	Other Comprehensive			Additional		Retained		Total
	Share		Par			by Stockholder	Income (Loss)			Paid in Capital		Earnings		Equity
Balance, June 30, 2025		64,685	$	6	$	—	$	2,723	$	(69,497)	$	477,576	$	410,808
Net income												38,362		38,362
Dividends to stockholders ($0.24 per share)												(15,524)		(15,524)
Reorganization adjustments										(101)				(101)
Stock based compensation										8,850				8,850
Foreign currency translation								(5,023)						(5,023)
Balance, September 30, 2025		64,685	$	6	$	—	$	(2,300)	$	(60,748)	$	500,414	$	437,372

Balance, June 30, 2024		$	—	$	28,797	$	(7,538)	$	—	$	341,493	$	362,752
Net income											36,878		36,878
Distribution to members					(20,000)								(20,000)
Foreign currency translation							4,851						4,851
Balance, September 30, 2024	—	$	—	$	8,797	$	(2,687)	$	—	$	378,371	$	384,481

Balance, December 31, 2024		$	—	$	—	$	(15,593)	$	—	$	398,122		382,529
Net income											150,234		150,234
Dividends to stockholders ($0.74 per share)											(47,942)		(47,942)
Reorganization adjustments									(78,317)				(78,317)
Shares issued	64,685		6						8,719				8,725
Stock based compensation									8,850				8,850
Foreign currency translation							13,293						13,293
Balance, September 30, 2025	64,685	$	6	$	—	$	(2,300)	$	(60,748)	$	500,414	$	437,372

Balance, December 31, 2023				$	28,797	$	(1,642)	$	—	$	276,434	$	303,589
Net income											101,937		101,937
Distribution to members					(20,000)								(20,000)
Foreign currency translation							(1,045)						(1,045)
Balance, September 30, 2024	—	$	—	$	8,797	$	(2,687)	$	—	$	378,371	$	384,481

See accompanying notes to the combined and condensed consolidated financial statements.

8

Jefferson Capital, Inc.

Combined and Condensed Consolidated Statements of Cash Flows

(Unaudited, in Thousands)

	For the Nine Months Ended
	September 30,
	2025		2024
Cash flows from operating activities
Net income	$	150,234	$	101,937
Adjustments to reconcile net income to net cash and cash equivalents provided by operating activities:
Depreciation and amortization		4,206		1,678
Amortization of debt issuance costs		4,016		3,142
Provision for credit losses		1,670		2,637
Stock-based compensation		8,850		—
Deferred income tax		17,254		(1,420)
Changes in assets and liabilities:
Other assets		(1,186)		(19,762)
Accounts receivable		(355)		(3,428)
Accounts payable and accrued expenses		8,956		6,075
Net cash provided by operating activities		193,645		90,859
Cash flows from investing activities
Purchases of receivables, net		(451,531)		(365,322)
Purchases of credit card receivables		(20,054)		(23,689)
Collections applied to investments in receivables, net		331,042		123,301
Collections applied to credit card receivables		19,697		22,341
Purchases of property and equipment, net		(645)		(449)
Net cash used in investing activities		(121,491)		(243,818)
Cash flow from financing activities
Proceeds from notes payable		681,790		747,887
Payments on notes payable		(694,872)		(567,719)
Payment of debt issuance costs		(8,012)		(6,868)
Dividends paid to stockholders		(47,942)		(20,000)
Proceeds from issuance of common stock		10,000		—
Net cash (used in) / provided by financing activities		(59,036)		153,300
Exchange rate effects on cash balances held in foreign currencies		(5,290)		495
Net (decrease) increase in cash and cash equivalents and restricted cash		7,828		838
Cash and cash equivalents and restricted cash, beginning of period		38,243		20,604
Cash and cash equivalents and restricted cash, end of period	$	46,071	$	21,442

See accompanying notes to the combined and condensed consolidated financial statements.

9

Jefferson Capital, Inc.

Combined and Condensed Consolidated Statements of Cash Flows

(Unaudited, in Thousands)

	For the Nine Months Ended
	September 30,
	2025		2024
Supplemental cash flow disclosures
Interest paid	$	73,168	$	52,045
Income taxes paid	$	6,832	$	6,195
New leases assumed	$	321	$	967
Deferred tax liability recognized in connection with reorganization	$	79,484	$	—
The following table provides a reconciliation of cash and cash equivalents and restricted cash and cash equivalents reported within the accompanying combined and condensed consolidated balance sheets that sum to the total of the same such amounts shown in the combined and condensed consolidated statements of cash flows:
Cash and cash equivalents	$	42,270	$	18,296
Restricted cash		3,801		3,146
Total cash and cash equivalents and restricted cash as shown in the combined and condensed consolidated statements of cash flows	$	46,071	$	21,442

See accompanying notes to the combined and condensed consolidated financial statements.

10

Jefferson Capital, Inc.

Notes to Combined and Condensed Consolidated Financial Statements (unaudited)

1.Organization, Description of Business and Summary of Significant Accounting Policies

The accompanying combined and condensed consolidated financial statements include the combined and condensed consolidated results of operations of Jefferson Capital, Inc., and its subsidiaries (the “Company”). Jefferson Capital, Inc. is a Delaware corporation headquartered in Minneapolis, Minnesota.

The Company and its subsidiaries in the U.S., Canada, the U.K and Latin America. provide debt recovery solutions and other related services across a broad range of consumer receivables, including credit card, secured and unsecured automotive, utilities, telecom, and other receivables. The Company primarily purchases portfolios of consumer receivables at deep discounts to face value and manages 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. The Company also provides debt servicing and other portfolio management services to credit originators for non-performing loans. Through credit card acquisition programs, the Company earns credit card revenue. All deployments are purchased from independent third parties.

The Company purchases portfolios of receivables from a diverse client base, including Fortune 500 creditors, banks, fintech origination platforms, telecommunications providers, credit card issuers, and auto finance companies. The Company’s top five clients accounted for 39.9% and 38.7%, with the top client representing 11.1% and 12.4% of purchases for the nine months ended September 30, 2025 and 2024, respectively. For credit card receivables, the Company purchases from two issuers.

Initial Public Offering June 2025

In June 2025, the Company completed its initial public offering (“IPO”), in which the selling shareholders sold 10,875,000 shares after giving effect to the underwriters’ exercise of the over-allotment option, at a public offering price of $15.00 per share. The Company also issued and sold 625,000 shares of its common stock in the IPO, which resulted in net proceeds of $4.5 million after deducting the underwriting discounts and commissions. Prior to the IPO, our business operations were generally conducted through Jefferson Capital Holdings, LLC, and its subsidiaries. JCAP TopCo, LLC is a holding company and the direct parent of Jefferson Capital Holdings, LLC. JCAP TopCo, LLC was owned by (i) entities affiliated with J.C. Flowers, (ii) members of Management Invest, LLC, and (iii) former equity holders of Canaccede.

Following a series of transactions that we refer to collectively as the “Reorganization,” Jefferson Capital, Inc. became a holding company with no material assets other than 100% of the equity interests in JCAP TopCo, LLC, which remain a holding company with no material assets other than 100% of the equity interests in Jefferson Capital Holdings, LLC. Jefferson Capital, Inc. also succeeded to federal NOLs, state NOLs and tax credit carryforwards under Section 381 of the Code as a result of its acquisition in the Reorganization of certain affiliated corporations that held direct or indirect equity interests in JCAP TopCo, LLC. As indirect parent of Jefferson Capital Holdings, LLC, following the Reorganization, Jefferson Capital, Inc. operates and controls all of the business and affairs, and consolidates the financial results of, Jefferson Capital Holdings, LLC, and its subsidiaries. To effect the Reorganization, the then-current direct and indirect owners of JCAP TopCo, LLC, including (i) entities affiliated with J.C. Flowers, (ii) members of Management Invest, LLC, an entity through which employees of JCAP TopCo, LLC and its subsidiaries and certain of our directors held equity interests, and (iii) former equity holders of Canaccede, exchanged their direct and indirect interests in JCAP TopCo, LLC for shares of our common stock. We refer to the entities affiliated with J.C. Flowers, members of Management Invest, LLC and former stockholders of Canaccede who own shares of our common stock following the Reorganization and the IPO as the “JCF Stockholders,” “Management Stockholders” and “Former Canaccede Stockholders,” respectively. As a result of the Reorganization and after giving effect to the completion of the IPO at the initial public offering price of $15.00 per share, as of September 30, 2025:

● the investors in the IPO collectively own 18.1% of our common stock;

● the JCF Stockholders collectively own 67.6% of the outstanding shares of our common stock;

11

● the Management Stockholders collectively own 14.3%;

● The number of shares of common stock received by the JCF Stockholders, the Former Canaccede Stockholders and the Management Stockholders in exchange for the 132,828,019 Class A Units and Class C Units of JCAP TopCo, LLC outstanding immediately prior to the Reorganization was based on an exchange ratio of one share of our common stock for every 2.4150549 interests in JCAP TopCo, LLC (the “Exchange Ratio”), resulting in an aggregate of 55,000,000 shares of our common stock being issued in exchange for such Class A Units and Class C units.

In addition, based on the initial public offering price of $15.00 per share, an aggregate of 9,060,082 shares of common stock were issued in exchange for the 27,937,232 Class B Units of JCAP TopCo, LLC outstanding immediately prior to the Reorganization, resulting in a total of 64,060,082 shares of common stock outstanding immediately after the Reorganization and before giving effect to the IPO. The number of shares of common stock that the Management Stockholders collectively received pursuant to the Reorganization was based in part on the value that Management Invest, LLC would have received under the distribution provisions of the limited liability agreement of JCAP TopCo, LLC, with shares of our common stock valued by reference to the ultimate initial public offering price of shares of common stock in the IPO. Specifically, of the 9,060,082 shares of common stock issued to the Management Stockholders in the Reorganization, 6,418,775 shares were issued in respect of Class B Units of Management Invest, LLC (which correspond to Class B Units of JCAP TopCo, LLC) that are “in- the-money” but remain subject to certain vesting conditions specified in individual award agreements. These shares were issued as restricted stock either with the same time-based vesting requirements that the corresponding Class B Units were subject to prior to the Reorganization or, if such corresponding Class B Units had performance vesting requirements, with a three year time-vesting requirement. If the vesting conditions of the restricted stock are not satisfied, such restricted stock will be forfeited and canceled.

Basis of Presentation

The accompanying unaudited combined and condensed consolidated interim financial statements include our accounts and those of our wholly-owned subsidiaries, and they reflect all adjustments which are necessary for a fair statement of results of operations, financial position, and cash flows as if entities had been combined for all periods presented and are presented in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). Such unaudited combined and condensed consolidated interim financial statements have been prepared in accordance with the rules and regulations of the U.S. Securities and Exchange Commission (the “SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations. The year-end condensed balance sheet data was derived from audited financial statements but does not include all disclosures required by U.S. GAAP.

These unaudited combined and condensed consolidated interim financial statements should be read in conjunction with our annual financial statements for the year ended December 31, 2024 and have been prepared on a consistent basis with the accounting policies described in Note 1 of the Notes to the Consolidated Financial Statements included in our final prospectus filed with the SEC pursuant to Rule 424(b)(4) under the Securities Act of 1933, as amended, on June 27, 2025 (the “Prospectus.”)  

The Company has elected to condense certain immaterial balance sheet line items, specifically, prepaid expenses and current tax receivable with existing assets classified as other assets into a single “other assets” caption on the balance sheet. The reclassification of the immaterial items does not change the underlying measurement, recognition, or total amounts reported on the balance sheet. Affected line items on the statement of cash flows will also be recast and presented in a manner consistent with the balance sheet presentation. Certain prior period amounts were reclassified to conform to the current period presentation, as applicable, and in accordance with ASC 250-10-50-1(b).

All intercompany transactions and balances have been eliminated in consolidation.

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Translation of Foreign Currencies

Foreign currency translation adjustments result from the process of translating financial statements from the Company’s foreign subsidiaries’ functional currency, mainly the Canadian dollar for the Company’s Canadian business and British Pound for the Company’s United Kingdom businesses, into the Company’s reporting currency, the U.S. dollar. Translation adjustments are reported as a component of other comprehensive income. Revenues and expenses are translated monthly utilizing average exchange rates and assets and liabilities are translated as of the balance sheet date utilizing the period end exchange rate.

The combined and condensed consolidated financial statements of certain of the Company’s foreign subsidiaries are measured using their local currency as the functional currency. Assets and liabilities of foreign operations are translated into U.S. dollars using period-end exchange rates, and revenues and expenses are translated into U.S. dollars using average exchange rates in effect during each period. The resulting translation adjustments are recorded as a component of other comprehensive income or loss. Equity accounts are translated at historical rates, except for the change in retained earnings during the year which is the result of the income statement translation process. Intercompany transaction gains or losses at each period end arising from subsequent measurement of balances for which settlement is not planned or anticipated in the foreseeable future are included as translation adjustments and recorded within other comprehensive income or loss. Translation gains or losses are the material components of accumulated other comprehensive income or loss.

Use of Estimates

The combined and condensed consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”), and these principles require making estimates and assumptions affecting the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the combined and condensed consolidated financial statements, as well as the reported amounts of revenues and expenses during each reporting period. These estimates are based on information available as of the date of the combined and condensed consolidated financial statements. The actual results could differ materially from these estimates. Significant estimates include the determination of recovery income associated with the investment in charged off receivables. The recognition of revenue from previously charged-off receivables is primarily calculated using ASC 326 – Financial Instruments – Credit Losses, which is commonly referred to as the Current Expected Credit Loss model or “CECL,” which is based on expected future collections and involved significant judgement, including forecasts of macroeconomic conditions and collection trends, which are inherently uncertain and may change over time. Additionally, estimates of future credit losses on credit card receivables may  have a significant effect on the provision for loan losses.

Significant Accounting Policies

There have been no material changes to the Company’s significant accounting policies from the audited combined and condensed consolidated financial statements for the fiscal year ended December 31, 2024, included in the Prospectus.

Investments in Receivables

The Company typically purchases receivable portfolios that are either significantly delinquent or have been previously charged off by the seller. These financial assets have experienced more-than-insignificant deterioration in credit quality, and as such meet the definition of Purchased Credit Deteriorated or “PCD” under CECL. Under PCD accounting, the portfolios are initially recognized at amortized cost by adding the acquisition date estimate of expected credit losses to the asset’s purchase price with no provision expense recorded at acquisition date. Receivable portfolio purchases are then aggregated into pools based on similar risk characteristics. Examples of risk characteristics include financial asset type, collateral type, size, interest rate, date of origination, term, and geographic location. The Company’s static pools are typically grouped into credit card, purchased consumer bankruptcy, and mortgage portfolios. The Company further groups these static pools by geographic location. Once a pool is established, and aggregated based on similar risk characteristics, the portfolios will remain in the designated pool unless the underlying risk characteristics change. The purchase Effective Interest Rate (“EIR”) of a pool will not change over the life of the pool even if expected future cash flows change.

Write Off and Negative Allowance for Expected Recoveries: At purchase, the Company deems these portfolios to be uncollectible due to being significantly delinquent and previously being charged off by the seller prior to purchase. In accordance with its write-off policy, the Company immediately writes off the amortized cost of the purchased portfolios at acquisition. Subsequent to write-off, the Company establishes a negative allowance for expected recoveries equal to the

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amount the Company expects to collect over the life of the receivable portfolio. The negative allowance will not exceed the amortized cost basis of the purchased portfolios prior to charge off.

Pooling: The Company aggregates purchases of receivables into pools based on risk characteristics, primarily financial asset type and expected credit loss pattern. Once a pool is established, the composition of the pool will not change unless there is a change in the underlying risk characteristics of the individual loans.

Methodology: The negative allowance is calculated at a pool level and represents the amount of future expected recoveries discounted to present value. The discount rate used in the calculation is the effective interest rate that equates the purchase price of the portfolio and the expected future cash flows at the purchase date. An annual pool is created throughout the year as the Company purchases portfolios. The Company pools accounts with similar risk characteristics that are acquired in the same year. The blended effective interest rate will be adjusted to reflect new acquisitions and new cash flow estimates until the end of the year. The effective interest rate for a pool is fixed for the remaining life of the pool once the year has ended. The effective interest rate will not change after the year has ended even if expected cash flows change for the pool.

Income Recognition: Under ASC 326, revenue related to investments in receivables is recognized for accretion / amortization due to the passage of time, changes in current period expected recoveries due to variances between actual and expected collections, and changes in future expected recoveries, discounted to present value. Discount accretion due to the passage of time based on the established pool effective interest rate is shown in “Total portfolio income” of the combined and condensed consolidated statement of operations. Changes in current period expected recoveries due to variances between actual and expected collections and changes in future expected recoveries, discounted to present value, are shown in “Changes in recoveries” of the combined and condensed consolidated statement of operations. Additionally, the Company recognized performing loans carried at amortized cost and include accrued interest receivable, deferred fees, and costs. These loans are shown in “Total portfolio income” on the combined and consolidated statement of operations.

Allowance for Credit Losses

The Company provides an allowance for credit losses on loans and fees receivable. Judgement is required to assess the estimate of current expected credit losses. Management continuously evaluates its estimate for determining the most appropriate allowance for credit losses. The allowance for credit losses on loans and fees receivable is computed at the pool level using a roll-rate methodology. Management considers several 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 estimated allowance consists of both qualitative and quantitative adjustments. A reasonable and supportable forecast is considered as part of the qualitative adjustments, as permitted by ASC 326. The allowance is estimated based on the amortized cost basis of the loan including principal, accrued interest receivable, deferred fees, and costs. The Company places receivables on non-accrual at 90 days past due and writes off the accrued interest at 180 days past due. Expected recoveries are included in the measurement of the allowance for credit losses.

The Company does not record an allowance related to unfunded commitments as these agreements are unconditionally cancelable by the Company.

Revenue Recognition

The Company’s revenues primarily include Revenues from receivable portfolios associated with Investments in receivables, which is revenue recognized from engaging in debt purchasing and recovery activities. The Company fully writes off the amortized costs (i.e., face value net of noncredit discount) of the individual receivables it acquires immediately after purchasing the portfolio. The Company then records 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 “Investment in receivable portfolios, net” in the Company’s combined and condensed consolidated balance sheet. The discount rate is an EIR established based on the purchase price of the portfolio and the expected future cash flows at the time of purchase. In recent periods the Company has purchased performing receivable portfolios and continues to do so at a deep discount. The credit quality of these portfolios continues to meet the definition of PCD, but the Company believes it will successfully collect a significant portion where the consumer will pay on a normal schedule.

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Debt purchasing revenue includes two components:

(1) Total portfolio income, which includes the accretion of the discount on the negative allowance due to the passage of time (generally the portfolio balance multiplied by the EIR), all revenue from zero basis portfolio collections, as well as interest and fees recognized on performing receivable portfolios, and

(2) Changes in recoveries, which include:

a. Recoveries above or below forecast, which is the difference between (i) actual cash collected / recovered during the current period and (ii) expected cash recoveries for the current period, which generally represents over or under performance for the period; and

b. Changes in expected future recoveries, which is the present value change of expected future recoveries, where such change generally results from (i) timing of collections (amounts either expected to be collected early or later) and (ii) changes to the total amount of expected future collections (which can be increases or decreases).

The Company measures expected future recoveries based on historical experience, current conditions, and reasonable and supportable forecasts.

Recently Adopted Accounting Standards

In November 2023, the Financial Accounting Standards Board (“FASB”) issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures (“ASU 2023-07”). ASU 2023-07 requires disclosure of significant segment expenses that are regularly provided to the chief operating decision maker and included within the segment measure of profit or loss. This guidance was applied retrospectively and became effective for annual reporting periods in fiscal years beginning after December 15, 2023, and interim reporting periods in fiscal years beginning after December 31, 2024. The Company has adopted ASU 2023-07 effective December 31, 2024 and concluded that the application of this guidance did not have any material impact on its combined and condensed consolidated financial statements. See Note 14 for more information.

Recent Accounting Standards or Updates Not Yet Adopted

In October 2023, the FASB issued ASU 2023-06, Disclosure Improvements: Codification Amendments in Response to the SEC’s Disclosure Update and Simplification Initiative, to amend certain disclosure and presentation requirements for a variety of topics within the Accounting Standards Codification (“ASC”). These amendments align the requirements in the ASC to the removal of certain disclosure requirements set out in Regulation S-X and Regulation S-K, announced by the SEC. The effective date for each amended topic in the ASC is either the date on which the SEC’s removal of the related disclosure requirement from Regulation S-X or Regulation S-K becomes effective, or on June 30, 2027, if the SEC has not removed the requirements by that date. Early adoption is prohibited. The Company is currently evaluating these provisions and the impact they may have on its combined and condensed consolidated financial statements and related disclosures.

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures (“ASU 2023-09”). ASU 2023-09 requires disaggregated information about a reporting entity’s effective tax rate reconciliation as well as information on income taxes paid. The standard is intended to benefit investors by providing more detailed income tax disclosures that would be useful in making capital allocation decisions and apply to all entities subject to income taxes. The new standard is effective for annual periods beginning after December 15, 2024. The Company is currently evaluating the provisions of this ASU and the impact on its combined and condensed consolidated financial statements and related disclosures.

In November 2024, the FASB issued ASU 2024-03, which requires disaggregated disclosure of income statement expenses for public business entities. The objective of ASU 2024-03 is to address requests from investors for more detailed information about the types of expenses. The ASU does not change the expense captions an entity presents on the face of the income statement; rather, it requires disaggregation of certain expense captions into specified categories in disclosures within the footnotes to the financial statements. The effective date for annual reporting periods is after December 15, 2026, and interim periods within those annual periods beginning after December 15, 2027. The Company is currently evaluating these provisions of this ASU and the impact they may have on its combined and condensed consolidated financial statements and related disclosures.

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2.Earnings Per Share

The Company’s unvested restricted stock awards have the right to receive nonforfeitable dividends on the same basis as common shares; therefore, unvested restricted stock is considered a participating security in the computation of earnings per share (“EPS”). Accordingly, the Company applies the two-class method in the computation of basic EPS which allocates earnings from holders of common stock to holders of unvested restricted stock awards. Diluted EPS attributable to the Company’s common stock is computed using both the two-class method and the treasury stock method, and the more dilutive of the two computations is presented.

Historical earnings per unit are not meaningful or comparable because, prior to the IPO and Reorganization, Jefferson Capital Holdings, LLC, the predecessor to Jefferson Capital, Inc., was a single member limited liability company. Accordingly, earnings per unit are not presented for the three and nine months ended September 30, 2024. In addition, because the nature of the Reorganization described in Note 1 does not constitute a stock dividend, stock split or reverse stock split, basic EPS and diluted EPS does not give retroactive effect to the Reorganization in a manner similar to a stock split or stock dividend in the historical financial statements of the Company. Therefore, EPS for periods preceding the Reorganization and IPO is not presented.

The computation of earnings per share for the three and nine months ended September 30, 2025 are (in thousands, except per share and footnote amounts):

	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2025		2024		2025		2024
Basic EPS
Numerator
Net income	$	38,362	$	36,878	$	150,234	$	101,937
Less: Earnings allocated to participating securities		3,798		—		14,878		—
Net income available to common stockholders		34,564		36,878		135,356		101,937
Denominator
Weighted average shares outstanding(1)		58,279		—		20,493		—
Basic EPS	$	0.59	$	—	$	6.60	$	—
Diluted EPS
Numerator
Net income available to common stockholders	$	34,564	$	36,878	$	135,356	$	101,937
Reallocation of earnings from participating securities		—		—		—		—
Net income available to common stockholders for diluted EPS	$	34,564	$	36,878	$	135,356	$	101,937
Denominator
Weighted average shares outstanding(1)		58,279		—		20,493		—
Weighted average effect of dilutive securities:
Options(2)		—		—		—		—
Nonvested restricted stock		—		—		—		—
Number of shares used for diluted EPS computation		58,279		—		20,493		—
Diluted EPS	$	0.59	$	—	$	6.60	$	—

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(1) Weighted average common shares outstanding used in the computation of basic and diluted EPS for the nine-months ended September 30, 2025 is determined using the period from June 27, 2025, the date of the IPO, through September 30, 2025.

(2) Options outstanding of 460,803 at September 30, 2025 were determined to be antidilutive and excluded from the dilutive EPS computation.

3.Acquisitions

Effective December 3, 2024, the Company’s U.S. subsidiary Jefferson Capital Systems, LLC entered into a definitive agreement to purchase certain assets from Conn’s, Inc. (“Conn’s) though a bankruptcy process for $244.9 million in cash (the “Conn’s Portfolio Purchase”).

Jefferson Capital Systems, LLC hired 197 of the former full-time equivalents (“FTE”) of Conn’s on December 4, 2024, to manage and service the assets acquired in the Conn’s Portfolio Purchase through their remaining life and entered into certain vendor contracts to maintain continuity of account servicing. In addition, Jefferson Capital Systems, LLC was assigned a lease in San Antonio, Texas that had originally been entered into by Conn’s on November 10, 2024, at Jefferson Capital Systems, LLC’s request, in part to ensure that the Company would have its desired facility in place by the closing of the Conn’s Portfolio Purchase. Jefferson Capital relocated the 197 new FTE of Jefferson Capital Systems, LLC to the new San Antonio facility in January 2025. As of September 30, 2025 100 FTE remain.

The Conn’s portfolio purchase was accounted for as an asset acquisition in accordance with the asset acquisition method of accounting as detailed in ASC 805-50, Business Combinations—Related Issues (“ASC 805”). Generally, under asset acquisition accounting, acquiring assets in groups not only requires ascertaining the cost of the asset (or net assets), but also allocating that cost to the individual assets (or individual assets and liabilities) that make up the group. The cost of the group of assets acquired in an asset acquisition is allocated to the individual assets acquired or liabilities assumed based on their relative fair values of net identifiable assets acquired other than certain “non-qualifying” assets (for example cash) and does not give rise to goodwill. The Company has determined the relative fair values of the assets acquired and liabilities assumed, as of the date of acquisition, as presented (in thousands):

Purchase Price:
Total purchase consideration paid		$	244,937
Allocation of purchase price:
Cash and cash equivalents			1,224
Investments in receivables, net:
Unpaid principal balance	566,696
Allowance for credit losses at time of acquisition	(251,317)
Non-credit discount	(89,316)
Investment in previously charged-off receivables	11,964
Total investments in receivables, net			238,028
Prepaid expenses and other assets:
Lease (ROU asset)	789
Information Technology Hardware	413
Total prepaid expenses and other assets:			1,202
Other intangible assets:
Intellectual property	2,881
Assembled workforce	2,391
Total other intangible assets			5,272
Accounts payable and accrued expenses
Lease (ROU liability)			(789)
Total net assets acquired		$	244,937

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The investments in receivables, net exhibited more than insignificant credit deterioration on the acquisition date and were valued as per ASC 326, CECL methodology for PCD assets.

The Company has allocated the purchase price by evaluating the market value of each asset or liability acquired at the time of purchase. The Company utilized the same methodology in allocating purchase price as a business combination by evaluating the market value of each item acquired at the time of purchase. The market values were determined by using the approximate costs of the services provided today. The market value apportionment percentage of each respective item was then applied to the purchase price to establish the allocated book values.

For the acquired intangible assets, the weighted-average amortization period is thirty-one (31) months for both intellectual property and assembled workforce, as well as the combined total. There will be no residual value at the end of the life. For the information technology hardware, the depreciable life is thirty-six (36) months, which follows the Company’s policy.

In the nine months ended September 30, 2025, the Company recognized portfolio revenue of $80.3 million, servicing revenue of $8.7 million and net operating income of $62.5 million related to the Conn’s portfolio purchase.

In the year ended December 31, 2024, the Company recognized portfolio revenue of $9.4 million, servicing revenue of $1.9 million and net operating income of $3.1 million related to the Conn’s portfolio purchase.

4.Fair Value Measurements

The Company measures the fair values of its assets and liabilities, where applicable, based on the price that would be received upon sale of an asset or the price paid to transfer a liability, in an orderly transaction between market participants at the measurement date, i.e., the “exit price.” Under applicable accounting standards, fair value measurements are categorized into one of three levels based on the inputs to the valuation technique with the highest priority given to unadjusted quoted prices in active markets and the lowest priority given to unobservable inputs. The Company categorizes its fair value measurements of financial instruments based on this three-level hierarchy. The following is a brief description of each level:

Level 1 Unadjusted quoted prices in active markets for identical assets or liabilities.

Level 2 Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

Level 3 Unobservable inputs that are supported by little or no market activity and that are significant to the overall fair value of the assets or liabilities. Level 3 assets and liabilities include financial instruments for which the determination of fair value requires significant management judgment or estimation. The fair value for such assets and liabilities is generally determined using pricing models, discounted cash flow methodologies or similar techniques that incorporate the assumptions a market participant would use in pricing the asset or liability. An example for the Company is Investments in Receivables, net (Note 5).

The Company does not have any financial instruments that are subject to fair value measurements on a recurring basis.

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Financial Instruments Not Required to Be Carried at Fair Value

The table below summarizes fair value estimates for the Company’s financial instruments that are not required to be carried at fair value.

The carrying amounts in the following table are recorded in the combined and condensed consolidated balance sheet as of September 30, 2025 and December 31, 2024 (in thousands):

	September 30, 2025				December 31, 2024
	Carrying		Estimated		Carrying		Estimated
	Amount		Fair Value		Amount		Fair Value
Financial Assets
Investments in receivables, net	$	1,640,809	$	1,814,191	$	1,497,748	$	1,646,535
Credit card receivable, net		16,180		16,180		17,176		17,176
Financial Liabilities
Revolving credit facility		—		—		508,146		513,799
Senior unsecured bond due 2026		298,857		300,158		297,828		299,478
Senior unsecured bond due 2029		395,433		422,960		394,405		424,792
Senior unsecured bond due 2030		492,644		525,795		—		—

Investment in receivables, net

The fair value of investments in receivables, net is measured using Level 3 inputs by discounting the estimated future cash flows generated by the Company’s proprietary forecasting models. The key inputs include the estimated future gross cash flow, average cost to collect, and a discount rate. The determination of such inputs requires significant judgment. The Company evaluates the use of key inputs on an ongoing basis and refines the data as it continues to obtain market data. See Note 5 to the combined and condensed consolidated financial statements for additional information.

Credit card receivables, net

The fair value approximates the carrying value, due to their short-term nature.

Revolving Credit Facility

The fair value of the Revolving Credit Facility, as supplemented or modified from time to time, (the “Revolving Credit Facility”) is measured using Level 3 inputs. The fair value approximates the principal value due to the short-term adjustable-rate nature of the notes payable.

Senior unsecured bonds due 2026, 2029 and 2030

The fair value estimates for the Senior Unsecured Bonds are based on quoted prices for identical assets or liabilities in markets that are not active. Accordingly, the Company uses Level 2 inputs for its fair value estimates.

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5.Investment in receivables, net

The following table presents the roll forward of the balance of the investment in receivables, net for the following periods (in thousands):

	For the Three Months Ended				For the Nine Months Ended
	September 30,				September 30,
	2025		2024		2025		2024
Balance, beginning of period	$	1,589,801	$	1,139,200	$	1,497,748	$	984,496
Purchases		151,030		123,439		451,531		365,322
Cash collections		(236,832)		(145,148)		(753,461)		(410,228)
Total portfolio income		139,179		99,258		416,749		285,362
Changes in expected current period recoveries		2,161		6,705		12,736		9,430
Changes in expected future period recoveries		(1,667)		(5,015)		(7,066)		(7,865)
Foreign currency adjustments		(2,863)		6,533		22,572		(1,544)
Balance, end of period	$	1,640,809	$	1,224,973	$	1,640,809	$	1,224,973

The table below provides the detail on the establishment of negative allowance for expected recoveries of portfolios purchased during the periods presented (in thousands):

	For the Three Months Ended				For the Nine Months Ended
	September 30,				September 30,
	2025		2024		2025		2024
Purchase price	$	151,030	$	123,439	$	451,531	$	365,322
Allowance for credit losses		2,546,600		1,443,473		6,499,589		5,028,400
Amortized cost		2,697,630		1,566,912		6,951,120		5,393,722
Noncredit discount		151,128		114,110		414,623		347,851
Face value		2,848,759		1,681,022		7,365,743		5,741,573
Write-off of amortized cost		(2,697,630)		(1,566,912)		(6,951,120)		(5,393,722)
Write-off of noncredit discount		(151,128)		(114,110)		(414,623)		(347,851)
Negative allowance		151,030		123,439		451,531		365,322
Negative allowance for expected recoveries	$	151,031	$	123,439	$	451,531	$	365,322

For the nine months ended September 30, 2025, the Company purchased receivable portfolios with face values of $7,365.7 million for a purchase price of $451.5 million or 6.1% of face value. For the nine months ended September 30, 2024, the Company purchased receivable portfolios with face values of $5,741.6 million for a purchase price of $365.3 million or 6.4% of face value. The price paid relative to the face amount of receivables will vary based upon the type of debt purchased, the age of the debt at the time of acquisition and the overall debt acquisition market. The percentage reported represents the weighted average of activity for the period and is a function of the mix of assets acquired in any period. For the receivables purchased in the nine months ended September 30, 2025 and 2024, the estimated amount of cash flows to be collected were $866.2 million and $713.2 million (as of purchase), respectively.

Recoveries above or below forecast represent over and under-performance in the reporting period, respectively. Actual collections during the nine months ended September 30, 2025, and 2024, overperformed the projected collections by approximately $12.7 million and $9.4 million, respectively, primarily driven by continued strong collection performance.

When reassessing the forecasts of expected lifetime recoveries during the nine months ended September 30, 2025, management considered historical and current collection performance and believes that for certain static pools sustained collections underperformance resulted in decreased total expected recoveries. As a result, the Company has updated its forecast, resulting in a net increase of total estimated remaining collections, which in turn, when discounted to present value, resulted in a change in expected future period recoveries of approximately $7.1 million and $7.9 million during the nine months ended September 30, 2025, and 2024, respectively.

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At the time of the Conn’s portfolio purchase, which was the majority performing receivables, the Company established an allowance for credit losses of $251.3 million. Additionally, due to the discount paid to face value on the portfolio, the Company also established a non-credit discount of $89.3 million at the time of purchase.

The Company places performing receivables on nonaccrual status when the receivables are greater than 90 days. To facilitate the monitoring of credit quality for performing receivables, and for the purpose of determining an appropriate allowance for losses for these receivables, the Company utilizes payment history and current payment status. The table below presents the information on the past due and non-accrual buckets for the assets acquired in the Conn’s portfolio purchase, and does not include all other purchased loans as they were charged-off at the time of purchase, as of September 30, 2025(in thousands):

	As of
		September 30,		December 31,
Delinquency vintage	2025		2024
United States
Current	$	133,846	$	352,403
30-59		10,742		33,683
60-89		8,712		29,685
>90		79,386		121,337
Total	$	232,686	$	537,108

The following table presents non-accrual performing loans by segment (in thousands).

	As of September 30, 2025				As of December 31, 2024
			Nonaccrual				Nonaccrual
			with No				with No
	Nonaccrual		Allowance		Nonaccrual		Allowance
United States		79,386		—		121,337		—
Total	$	79,386	$	—	$	121,337	$	—

6.Credit Card Receivables

The following table summarizes the credit card receivables, gross of allowance for credit losses, by geography (in thousands):

	As of September 30,		As of December 31,
	2025		2024
United States		8,084		7,470
Canada		9,847		11,613
Total	$	17,931	$	19,083

The Company places credit card receivables on nonaccrual status when the credit card receivables are greater than 90 days past due or within 60 days of being notified that the customer is in bankruptcy status, whichever is earlier. The below tables present the information on the Company’s past due and non-accrual credit card receivables as of September 30, 2025, and 2024.

Age analysis of past-due credit card receivables at September 30, 2025 (in thousands)

													Amortized Cost
							Total						> 90 DPD and
($ in 000s)	30-59		60-89		>90		Past Due		Current		Total		Accruing (1)
United States	$	255	$	188	$	556	$	999	$	7,085	$	8,084	$	—
Canada		275		152		312		739		9,108		9,847		—
Total	$	530	$	340	$	868	$	1,738	$	16,193	$	17,931	$	—

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Age analysis of past-due credit card receivables at December 31, 2024 (in thousands)

													Amortized Cost
							Total						> 90 DPD and
($ in 000s)	30-59		60-89		>90		Past Due		Current		Total		Accruing (1)
United States	$	196	$	177	$	551	$	924	$	6,546	$	7,470	$	—
Canada		281		157		339		777		10,836		11,613		—
Total	$	477	$	334	$	890	$	1,701	$	17,382	$	19,083	$	—

Allowance for Credit Losses

The following table summarizes the change in the allowance for credit losses for the Company’s credit card receivables portfolio (in thousands).

	United States		Canada			Total
Balance as of December 31, 2024	$	957	$	950	$	1,907
Charge-offs		(1,337)		(1,113)		(2,450)
Recoveries		251		372		623
Provision		1,075		596		1,671
Balance as of September 30, 2025	$	946	$	805	$	1,751

Non-Accrual Loans

The following table presents non-accrual loans by segment (in thousands).

	As of September 30, 2025				As of December 31, 2024
			Nonaccrual				Nonaccrual
			with No				with No
	Nonaccrual		Allowance		Nonaccrual		Allowance
United States	$	556	$	—	$	551	$	—
Canada		312		—		339		—
Total	$	868	$	—	$	890	$	—

No interest income was recorded for the non-accrual receivables for the nine months ended September 30, 2025.

7.Goodwill

The Company tests goodwill for impairment at least annually as of June 30, or more frequently, if certain events or circumstances warrant. During the nine months ended September 30, 2025, and fiscal year 2024, no impairment of goodwill was recorded.

The following table summarizes the changes in goodwill (in thousands) in the Company’s reportable segments:

	United		United					Latin
	States		Kingdom		Canada			America	Total
Goodwill
December 31, 2023	$	31,633	$	18,120	$	7,417	$	—	$	57,170
Acquisitions		—		1,089		—		—		1,089
Impact of FX translation		—		—		(142)		—		(142)
September 30, 2024	$	31,633	$	19,209	$	7,275	$	—	$	58,117
December 31, 2024	$	31,633	$	19,209	$	6,841	$	—	$	57,683
Impact of FX translation		—		—		223		—		223
September 30, 2025	$	31,633	$	19,209	$	7,064	$	—	$	57,906

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8.Notes Payable, Net

	As of September 30,				As of December 31,
(in thousands)	2025				2024
	Amount		Interest		Amount		Interest
	Outstanding		Rate		Outstanding		Rate
Senior unsecured bond due 2026	$	300,000	6.00	%	$	300,000	6.00	%
Senior unsecured bond due 2029		400,000	9.50	%		400,000	9.50	%
Senior unsecured bond due 2030		500,000	8.25	%		—	—
Revolving credit facility		—	7.31	%		508,146	7.51	%
Total	$	1,200,000	8.10	%	$	1,208,146	7.79	%
Unamortized debt issuance costs		(17,416)				(13,420)
Notes Payable, net	$	1,182,584			$	1,194,726

On August 4, 2021, the Company 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 the Company, 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 the Company and are guaranteed by certain of the Company’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. On and after August 15, 2023, the 2026 Notes may be redeemed, at the Company’s option, in whole or in part, at any time and from time to time, at the redemption prices set forth below. The 2026 Notes will be redeemable at the redemption prices (expressed as percentages of principal amount of the 2026 Notes to be redeemed) set forth below plus accrued and unpaid interest thereon, if any, to but excluding the applicable redemption date, subject to the right of holders of the 2026 Notes on the relevant record date to receive interest due on the relevant interest payment date, if redeemed during the 12-month period beginning on August 15 of each of the years indicated below:

	Percentage
Dates	of Principle
2025 and thereafter	100.000	%

The 2026 Notes Indenture contains covenants that limit the Company’s ability and the ability of the Company’s restricted subsidiaries to, among other things: (i) incur or guarantee additional debt; (ii) incur certain liens; (iii) make certain investments; (iv) create restrictions on the payment of dividends or other amounts from the Company’s restricted subsidiaries that are not guarantors under the 2026 Notes Indenture; (v) enter into certain transactions with affiliates  (vi) sell certain assets, including capital stock of the Company’s subsidiaries; (vii) designate the Company’s subsidiaries as unrestricted subsidiaries; and (viii) pay dividends, redeem or repurchase capital stock or make other restricted payments.

The 2026 Notes incurred issuance costs of $6.9 million, including legal expenses and origination fees, which reduces the carrying amount of the 2026 Notes. These costs were capitalized at the time of issuance and are being amortized to interest expense over the 5-year term of the 2026 Notes. At September 30, 2025, the unamortized balance of the deferred debt issuance costs was $1.1 million.

On February 28, 2022, the Company amended its credit agreement entered into on May 21, 2021 (the “Credit Agreement”) to include a new $150.0 million Canadian sub-facility to go alongside the $35.0 million UK sub-facility.

On April 26, 2023, the Company amended and extended its Credit Agreement to an aggregate commitment of $600 million with a 5-year maturity of April 26, 2028.

On September 29, 2023, the Company amended its Credit Agreement to an aggregate commitment of $750 million and modified its sub-facility limits to $85 million for the Canadian sub-facility and $50 million for the U.K. sub-facility.

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The Credit Agreement contains five financial covenants:

● The Maximum Senior Leverage Ratio to not exceed 2.50 to 1.00

● The Maximum Leverage Ratio to not exceed 3.25 to 1.00

● The Minimum Fixed Charge Coverage Ratio of not less than 1.25 to 1.00

● Minimum Tangible Net Worth not to be less than a starting value plus 50% of each subsequent quarter’s Net Income

● Minimum Actual Collections where the Company must collect at least 85% of the projected collections over the trailing twelve-month period.

On February 2, 2024, the Company 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 the Company, the guarantors party thereto and U.S. Bank Trust Company, National Association, as trustee. The 2029 Notes are general senior unsecured obligations of the Company and are guaranteed by certain of the Company’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. The 2029 Notes mature on February 15, 2029. At any time and from time to time prior to February 15, 2026, the 2029 Notes may be redeemed at the Company’s option, in whole or in part, at a redemption price equal to 100% of the principal amount of the 2029 Notes redeemed, plus accrued and unpaid interest thereon, if any, to but excluding the applicable date of redemption, subject to the rights of holders of 2029 Notes on the relevant record date to receive interest due on the relevant interest payment date, plus the applicable premium as of the applicable redemption date. On and after February 15, 2026, the 2029 Notes may be redeemed, at the Company’s option, in whole or in part, at any time and from time to time, at the redemption prices set forth below. The 2029 Notes will be redeemable at the redemption prices (expressed as percentages of principal amount of the 2029 Notes to be redeemed) set forth below plus accrued and unpaid interest thereon, if any, to but excluding the applicable redemption date, subject to the right of holders of the 2029 Notes on the relevant record date to receive interest due on the relevant interest payment date, if redeemed during the 12-month period beginning on February 15 of each of the years indicated below:

	Percentage
Dates	of Principle
2026	104.750	%
2027	102.375	%
2028 and thereafter	100.000	%

The 2029 Notes Indenture contains covenants that limit the Company’s ability and the ability of the Company’s restricted subsidiaries to, among other things: (i) incur or guarantee additional debt; (ii) incur certain liens; (iii) make certain investments; (iv) create restrictions on the payment of dividends or other amounts from the Company’s restricted subsidiaries that are not guarantors under the 2029 Notes Indenture; (v) enter into certain transactions with affiliates; (vi) merge or consolidate with another person, or sell or otherwise dispose of all or substantially all of the Company’s assets; (vii) sell certain assets, including capital stock of the Company’s subsidiaries; (viii) designate the Company’s subsidiaries as unrestricted subsidiaries; and (ix) pay dividends, redeem or repurchase capital stock or make other restricted payments.

The 2029 Notes incurred issuance costs of $6.8 million, including legal expenses and origination fees, which reduce the carrying amount of the 2029 Notes. These costs were capitalized at the time of issuance and are being amortized to interest expense over the 5-year term of the 2029 Notes. At September 30, 2025, the unamortized balance of the deferred debt issuance costs was $4.6 million.

On November 13, 2024, the Company amended its Credit Agreement to an aggregate commitment of $825 million through the exercise of its accordion feature and modified its sub-facility limits to $110 million for the Canadian sub-facility and $665 million for the U.S. sub-facility.

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 “2030 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

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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. The 2030 Notes mature on May 15, 2030.

At any time and from time to time prior to May 15, 2027, the 2030 Notes may be redeemed at Jefferson Capital Holdings, LLC’s option, in whole or in part, at a redemption price equal to 100% of the principal amount of the 2030 Notes redeemed, plus accrued and unpaid interest thereon, if any, to but excluding the applicable date of redemption, subject to the rights of holders of 2030 Notes on the relevant record date to receive interest due on the relevant interest payment date, plus the applicable premium as of the applicable redemption date. On and after May 15, 2027, the 2030 Notes may be redeemed, at Jefferson Capital Holdings, LLC’s option, in whole or in part, at any time and from time to time, at the redemption prices set forth below. The 2030 Notes will be redeemable at the redemption prices (expressed as percentages of principal amount of the 2030 Notes to be redeemed) set forth below plus accrued and unpaid interest thereon, if any, to but excluding the applicable redemption date, subject to the right of holders of the 2030 Notes on the relevant record date to receive interest due on the relevant interest payment date, if redeemed during the 12-month period beginning on May 15 of each of the years indicated below:

	Percentage
Dates	of Principle
2027	104.125	%
2028	102.063	%
2029 and thereafter	100.000	%

The 2030 Notes Indenture contains covenants that limit Jefferson Capital Holdings, LLC’s ability and the ability of Jefferson Capital Holdings, LLC’s restricted subsidiaries to, among other things: (i) incur or guarantee additional debt; (ii) incur certain liens; (iii) make certain investments; (iv) create restrictions on the payment of dividends or other amounts from Jefferson Capital Holdings, LLC’s restricted subsidiaries that are not guarantors under the 2030 Notes Indenture; (v) enter into certain transactions with affiliates; (vi) merge or consolidate with another person, or sell or otherwise dispose of all or substantially all of Jefferson Capital Holdings, LLC’s assets; (vii) sell certain assets, including capital stock of Jefferson Capital Holdings, LLC’s subsidiaries; (viii) designate Jefferson Capital Holdings, LLC’s subsidiaries as unrestricted subsidiaries; and (ix) pay dividends, redeem or repurchase capital stock or make other restricted payments.

The 2030 Notes incurred issuance costs of $8.0 million, including legal expenses and origination fees, which reduce the carrying amount of the 2030 Notes. These costs were capitalized at the time of issuance and are being amortized over the 5-year term of the 2030 Notes. At September 30, 2025, the unamortized balance of the capitalized deferred debt costs was $7.4 million.

Components of interest expense for the nine months ended September 30, 2025, and 2024 (in thousands):

	For the Three Months Ended				For the Nine Months Ended
	September 30,				September 30,
	2025		2024		2025		2024
Interest expense	$	24,945	$	18,662	$	73,168	$	52,045
Amortization of debt issuance costs		1,522		1,091		4,016		3,142
Total Interest Expense	$	26,467	$	19,753	$	77,184	$	55,187

As of September 30, 2025, the outstanding balances of notes payable were $1,182.6 million with a weighted average interest rate of 8.10%. In comparison, as of September 30, 2024, the outstanding balances of notes payable were $948.0 million with a weighted average interest rate of 7.97%.

The Company incurred costs related to the issuance and origination of its notes payable which are deferred and recorded net of the debt balance and amortized to interest expense over the life of the debt on an effective interest method. The unamortized debt issuance costs related to the notes payable were $17.4 million and $14.1 million as of September 30, 2025, and 2024, respectively.

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As of September 30, 2025, the Company was in compliance with all the financial covenants of its notes payable.

9.Leases

The Company enters into leases as a lessee for data centers, office space, and technology equipment.  Lease expense associated with these arrangements are included in other selling, general and administrative expenses in the Company’s combined and condensed consolidated statements of operations.

The components of lease expense for the three and nine months ended September 30, 2025, and 2024, are presented as follows (in thousands):

	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2025		2024		2025		2024
Operating lease costs	$	578	$	409	$	1,652	$	1,118
Total lease costs	$	578	$	409	$	1,652	$	1,118

The following table provides supplemental combined and condensed consolidated balance sheet information related to leases as of September 30, 2025, and December 31, 2024 (in thousands, except lease term and discount rate):

		As of September 30,			As of December 31,
	Classification	2025			2024
Assets
Operating lease right-of-use assets	Other assets	$	4,089		$	4,449
Total lease right-of-use assets		$	4,089		$	4,449
Liabilities
Operating lease liabilities	Other liabilities	$	4,569		$	4,860
Total lease liabilities		$	4,569		$	4,860
Weighted-average remaining lease term (in years)			4.8			5.5
Weighted-average discount rate			7.5	%		7.5	%

Minimum future payments on non-cancellable operating leases as of September 30, 2025, are summarized as follows (in thousands):

	Operating Leases
2025	$	328
2026		1,506
2027		1,137
2028		820
2029		552
Thereafter		1,164
Total undiscounted lease payments		5,507
Less: imputed interest		(938)
Lease obligations under operating leases	$	4,569

10.Stock Based Compensation

Prior to the initial public offering in June 2025, the Company maintained the JCAP TopCo, LLC 2018 Underlying Units Plan (the “Plan”) and the Management Invest LLC 2018 Management Incentive Plan (the “Management Invest Plan”), effective August 31, 2018, to promote the long-term growth and profitability of the Company by providing certain of the Company’s employees and other service providers who were involved in the Company’s growth with an opportunity to

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acquire equity interests that enable them to share in the appreciation of value of the Company, thereby encouraging such persons to contribute to and participate in the success of the Company.

Under the Plan, awards of Class B Units representing limited liability company interests in JCAP TopCo, LLC, a holding company and direct parent of the Company, were issued to Management Invest LLC, which in turn issued corresponding awards of Class B Units in Management Invest LLC to certain of the Company’s employees and other service providers under the Management Invest Plan. As of June 26, 2025, there were 26,932,232 Class B units available for issuance, of which 26,932,232 were issued and outstanding. The Class B units qualified as liability awards since they would have been settled in cash upon redemption and were included in accounts payable and accrued expenses on the combined and condensed consolidated balance sheet. The unit value was calculated based on the estimated fair value of the Company over the original investment amount. Generally, approximately thirty percent (30%) of the units vested in five equal installments on each of the first five anniversaries of their respective grant dates, and the remaining seventy percent (70%) vested upon a change of control if applicable distribution thresholds were achieved. The Company valued its units awarded under the Plan based on the market approach. The Company utilized public company comparable information to establish the measure of invested capital (“MOIC”), which was then applied against the strike prices of the respective vested portion of the units awarded under the Plan to calculate the compensation exposure.

As part of the initial public offering, all of the Class B Units issued pursuant to the Management Invest Plan were crystalized and converted into shares of common stock on the basis of the Exchange Ratio used to convert the Class A Units and Class C Units. The conversion took into account the number of Class B Units held, the applicable distribution threshold and the value of the distributions that the holder would have been entitled to receive through their indirect ownership interest in JCAP TopCo, LLC had JCAP TopCo, LLC been liquidated on the date of such conversion in accordance with the terms of the distribution waterfall set forth in the JCAP TopCo LLC Agreement. If in-the-money, the Class B Units were converted into a number of shares based on the respective distribution thresholds and terms of such awards, and if out-of-the-money, were canceled. For Class B Units that were in-the-money but unvested and subject solely to time vesting requirements, such Class B Units were converted into shares of restricted stock and subject to the same time vesting requirements that the corresponding Class B Units were subject to prior to the Reorganization. For Class B Units that were in-the-money but unvested and subject to performance vesting requirements, those were converted into shares of restricted stock and subject to a three-year time-vesting requirement in equal increments from the date of the initial public offering, subject to continued service through the applicable vesting dates (provided, that any such unvested shares of restricted stock will be subject to acceleration in the event of a holder’s termination of service without cause or due to such holder’s death or disability). The conversion of such in-the-money unvested Class B Units was evidenced by individual restricted stock agreements and were not issued under the Company’s 2025 Incentive Award Plan (the “2025 Plan”). Specifically, 6,418,775 shares were issued in respect of Class B Units of Management Invest, LLC (which correspond to Class B Units of JCAP TopCo, LLC) that were in- the-money. These shares were issued as restricted stock either with the same time-based vesting requirements that the corresponding Class B Units were subject to prior to the Reorganization or, if such corresponding Class B Units had performance vesting requirements, with a three year time-vesting requirement. If the vesting conditions of the restricted stock are not satisfied, such restricted stock will be forfeited and canceled. The Company accounts for forfeitures when they occur. Holders of converted restricted stock awards will be eligible to receive non-forfeitable dividends in the event the Company determines to pay dividends in respect of its common stock. For Class B Units that were in-the-money and fully vested, those were converted into shares of common stock. With respect to Class B Units that were out-of-the-money and were canceled in the Reorganization, the Company issued new stock options under the 2025 Plan to the employee and director holders of such canceled Class B Units to put them in an approximately equivalent economic position in terms of number of options and exercise prices as they would be in if their Class B Units were not canceled and instead exchanged for new options. Such options were granted effective as of immediately following the determination of the initial public offering price per share of our common stock and were in an amount equal to the number of the out-of-the-money Class B Units that were canceled, multiplied by the Exchange Ratio, and have an exercise price per share equal to the distribution threshold of the out-of-the-money Class B Units, multiplied by the Exchange Ratio (or if greater, the initial public offering price per share of our common stock). The options are subject to the same time-vesting requirements that the corresponding Class B Units were subject to prior to the Reorganization.

The Company measures the fair value of stock option awards on the grant date using a Black-Scholes option-valuation model. The model incorporates various assumptions, including the exercise price, expected term, risk-free interest rate,

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expected stock price volatility, and expected dividend yield. The risk-free interest rate is derived from U.S. Treasury yields with maturities corresponding to the expected term of the awards. Expected volatility is estimated using the historical volatility of a peer group of comparable publicly traded companies, given the limited trading history of the Company’s common stock. The expected dividend yield reflects the Company’s historical and anticipated future dividend policy.

A summary of the status of the Company’s equity-based awards and activity as of September 30, and June 30, 2025 is presented below with the comparative 2024 periods having no restricted stock or stock options issued.

							Weighted-Average
	Outstanding	Weighted-Average			Weighted-Average		Remaining		Aggregate
	Restricted	Grant Date		Stock Options	Grant		Contractual Term		Intrinsic Value
	Shares	Fair Value		Outstanding	Price		(Years)		(in thousands)
Balance at March 31, 2025	—	$	—	—	$	—	—	$	—
Granted	6,418,775		15.00	457,542		24.81
Exercised	—		—	—		—
Forfeited, expired or canceled	—		—	—		—
Balance at June 30, 2025	6,418,775	$	15.00	457,542	$	24.81	10.0	$	97.7
Granted	—		—	20,000		25.33
Vested	(24,164)		15.00	—		—
Exercised	—		—	—		—
Forfeited, expired or canceled	(19,827)		15.00	—		—
Balance September 30, 2025	6,374,784	$	15.00	477,542	$	24.84	9.4	$	0.8

For the three months ended September 30, 2025 and 2024, stock-based compensation expense recognized was $8.8 million and $2.2 million, respectively. The change in stock-based compensation for the three months ended September 30, 2025 is driven by the recognition of $8.8 million of stock-based compensation expense associated with the unvested restricted stock.

For the nine months ended September 30, 2025 and 2024, stock-based compensation expense recognized was $0.9 million and $4.1 million, respectively. The change in stock-based compensation expense for the nine months ended September 30, 2025 is driven by the recognition of $9.3 million of stock-based compensation expense associated with the unvested restricted stock, stock options and Class B Units that existed prior to the IPO, partially offset by the reversal of stock-based compensation expense due to the impact of the initial public offering on the outstanding Class B units of $8.4 million. As of September 30, 2025, the total unrecognized stock-based compensation expense related to unvested restricted shares was $87.3 million, which is expected to be recognized over a remaining weighted average term of 2.74 years.

11.Commitments and Contingencies

Purchase Commitments

In the normal course of business, the Company enters into forward flow purchase agreements. A forward flow purchase agreement is a commitment to purchase receivables over a duration that is typically three to twelve months, but can be longer, generally with a specifically defined volume range, frequency, and pricing. Typically, these forward flow contracts have provisions that allow for early termination or price re-negotiation should the underlying quality of the portfolio deteriorate over time or if any particular month’s delivery is materially different than the original portfolio used to price the forward flow contract. Certain of these forward flow purchase agreements may also have termination clauses, whereby the agreements can be canceled by either party upon providing a certain specified amount of notice.

As of September 30, 2025, and 2024 the Company had entered into forward flow purchase agreements for the purchase of receivables with an estimated minimum aggregate purchase price of approximately $316.4 million and $338.6 million, respectively. The Company expects actual purchases under these forward flow purchase agreements to be significantly greater than the estimated minimum aggregate purchase price.

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Employee Savings and Retirement Plan

The Company sponsors defined contribution plans in the U.S., Canada, and the U.K. The U.S. plan is organized as a 401(k) plan under which all employees are eligible to make voluntary contributions to the plan up to 100% of their compensation, subject to IRS limitations, as defined in the plan. The Company makes matching contributions of 25% of up to 6% of an employee’s salary. In Canada, the Company has a Deferred Profit-Sharing Plan (DPSP) in which the Company contributes 3% of salary to their DPSP fund. Employees contributing to the Registered Retirement Savings Plan (RRSP) or Tax-Free Savings Account (TFSA) receive up to a 2% match, bringing the potential total match to 5% of salary. In the U.K., the Company operates the government contribution plan where employees contribute 5% of their salary and the Company contributes 3% of the employee salary on a monthly basis. Employees can make additional contributions to the plan via their salary, either by one off extra contribution or increasing the monthly percentage but must contribute a minimum of 5%. Total compensation expense related to the Company’s contributions was $0.7 million and $0.6 million for the period ended September 30, 2025 and 2024, respectively.

Commitments to extend credit

The Company, in the normal course of business through its credit card programs, has the obligation to purchase the credit card receivables from the issuing bank, thereby incurring off-balance-sheet risk. This risk includes the cardholder’s rights to borrow up to the maximum credit limit on their credit card accounts, which is $14.7 million as of September 30, 2025 and $20.9 million as of September 30, 2024, beyond their current balances. The Company has not experienced a situation in which all of the Company’s cardholders have exercised their entire available line of credit at any given point in time, nor does management anticipate this will ever occur in the future. Also, the Company can, subject to certain regulatory requirements, reduce or cancel these available credit limits.

Contingent payments

As part of the Company’s acquisition of Canaccede Financial Group, Ltd. “(Canaccede”) in March 2020, an exit incentive was awarded to the former shareholders of Canaccede for up to $15.625 million Canadian dollars that would be payable only on a Liquidity Event for J.C. Flowers (“JCF”), defined to mean a final exit, that yielded net returns to JCF in excess of certain hurdles as defined in the purchase agreement. The payment, which is contingent on a Liquidity Event and achieving certain hurdles, would be based on cash-on-cash returns to JCF, measured at that final exit, as an equity-linked incentive with capped upside and designed to be paid with sale proceeds received from a new owner. Each year the Company reassesses the fair value of the exit incentive payment to determine whether such amount should be recorded within the combined and condensed consolidated financial statements. As of September 30, 2025, the Company determined that the occurrence in the future of a Liquidity Event above the requisite MOIC thresholds will be probable by December 31, 2027. As a result, the Company accrued a liability related to the Canaccede Exit Incentive Payment of $8.8 million as of September 30, 2025, reflecting the net present value of an anticipated payment of the maximum amount. This has been recorded as expense on the income statement in other selling, general and administrative with the offset being a liability on the balance sheet in accounts payable and accrued expenses.

Litigation

The Company and its subsidiaries are subject to various legal proceedings and claims that arise in the ordinary course of business. For periods ended September 30, 2025 and December 31, 2024 there are no material pending legal proceedings to which the Company or its subsidiaries are a party.

12.Income Taxes

The Company’s effective tax rate was 15.7% and 6.0% for the three months ended September 30, 2025 and 2024, respectively. The Company's effective tax rate was 13.8% and 5.7% for the nine months ended September 30, 2025 and 2024, respectively. The Company recognized a provision on pre-tax income, reduced by non-taxable income related to the period in which the Company was treated as a Partnership for US income tax purposes.

On July 4, 2025, the One Big Beautiful Bill Act ("OBBBA") was signed into law and contains several changes to federal tax law. The Company is currently assessing the impact of the OBBBA on our combined and condensed consolidated financial statements.

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13.Related Party Transactions

In February 2023, Jefferson Capital Systems, LLC, one of the Company’s wholly-owned indirect subsidiaries, entered into a participation agreement (the “Participation Agreement”) with HH Warehouse LLC (“HH Warehouse”), pursuant to which Jefferson Capital Systems, LLC sold a 26.75% beneficial ownership interest (the “Portfolio Interest”) in a portfolio of performing installment loans (the “Portfolio”) to HH Warehouse for $2.9 million and agreed to administer the Portfolio and pay HH Warehouse a share of the collections proportionate to the size of the Portfolio Interest. In July 2024, Jefferson Capital Systems, LLC entered into an amendment to the Participation Agreement with HH Warehouse, pursuant to which Jefferson Capital Systems, LLC repurchased the Portfolio Interest from HH Warehouse for $1.4 million and assumed all rights and obligations related to the Portfolio Interest. Christopher Giles, a member of the Company’s board of directors, served as Vice President of HH Warehouse and held 12.86% of the membership interests in HH Warehouse at the time of such transactions.

14.Segment Reporting

The Company’s operating segments are based on the Company’s geographies, which is how management monitors and assesses performance. The Company’s geographies are the United States, the United Kingdom, Canada, and Latin America. The Company’s Chief Operating Decision Maker (“CODM”) is the Chief Executive Officer. Assets are not reported by operating segment to the CODM.

For the Company’s operating segments, the CODM uses net operating income to allocate resources (including employees, property, and financial or capital resources). Additionally, the Company prepares an annual budget at the segment level. The CODM considers budget-to-actual variances on a monthly basis for the profit or loss measure when making decisions about allocating capital and personnel to the segments. The CODM also uses segment operating income to assess the performance for each segment by comparing the results of each segment with one another and for determining the compensation of certain employees.

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The following table provides segment measure of profit and loss, presenting Net operating income, by each operating segment (in thousands) and is the measure that the CODM utilizes to determine resource and investment allocations:

	For the Three Months Ended September 30,										For the Nine Months Ended September 30,
	2025										2025
	United		United				Latin				United		United				Latin
	States		Kingdom		Canada		America		Total		States		Kingdom		Canada		America		Total
Total portfolio revenue	$	108,147	$	6,889	$	15,363	$	9,274	$	139,673	$	326,205	$	18,812	$	49,109	$	28,293	$	422,419
Credit card revenue		634		—		1,121		—		1,755		1,928		—		3,522		—		5,450
Servicing revenue		2,510		6,484		420		—		9,414		10,832		18,628		1,161		—		30,621
Total Revenue	$	111,291	$	13,373	$	16,904	$	9,274	$	150,842	$	338,965	$	37,440	$	53,792	$	28,293	$	458,490
Provision for credit losses	$	375	$	—	$	194	$	—			$	1,074	$	—	$	596	$	—
Salaries and benefits	$	17,774	$	4,068	$	1,328	$	144			$	27,308	$	11,897	$	3,996	$	389
Servicing expenses		35,745		5,563		2,777		3,524				101,719		14,652		7,831		9,746
Depreciation and amortization		792		89		458		11				2,943		259		974		30
Professional fees		3,093		284		77		289				13,459		754		410		730
Canaccede exit incentive		79		—		—		—				1,059		—		—		—
Other selling, general and administrative		3,044		665		303		130				9,445		1,907		960		412
Net operating income	$	50,389	$	2,704	$	11,767	$	5,176	$	70,036	$	181,958	$	7,971	$	39,025	$	16,986	$	245,940
Other Income / (Expense):
Interest expense									$	(26,467)									$	(77,184)
Foreign exchange and other income / (expense)										1,944										5,564
Total other expense										(24,523)										(71,620)
Income Before Income Taxes									$	45,513									$	174,320

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	For the Three Months Ended September 30,										For the Nine Months Ended September 30,
	2024										2024
	United		United				Latin				United		United				Latin
	States		Kingdom		Canada		America		Total		States		Kingdom		Canada		America		Total
Total portfolio revenue	$	72,943	$	7,882	$	11,442	$	8,681	$	100,948	$	205,849	$	21,607	$	36,218	$	23,253	$	286,927
Credit card revenue		648		—		1,400		—		2,048		2,129		—		4,224		—		6,353
Servicing revenue		746		6,789		70		—		7,605		2,412		18,476		192		—		21,080
Total Revenue	$	74,337	$	14,671	$	12,912	$	8,681	$	110,601	$	210,390	$	40,083	$	40,634	$	23,253	$	314,360
Provision for credit losses	$	426	$	—	$	441	$	—			$	1,402	$	—	$	1,235	$	—
Salaries and benefits	$	7,424	$	3,793	$	1,263	$	87			$	21,134	$	10,569	$	3,993	$	277
Servicing expenses		23,241		4,287		2,768		2,950				70,145		10,749		7,583		7,396
Depreciation and amortization		167		82		293		6				503		239		917		19
Professional fees		1,403		211		73		207				4,294		690		305		641
Other selling, general and administrative		941		688		320		103				2,724		1,803		897		345
Net Operating Income	$	40,735	$	5,610	$	7,754	$	5,328	$	59,427	$	110,188	$	16,033	$	25,704	$	14,575	$	166,500
Other Income / (Expense):
Interest expense									$	(19,753)									$	(55,187)
Foreign exchange and other expense										(440)										(3,181)
Total other expense										(20,193)										(58,368)
Income Before Income Taxes									$	39,234									$	108,132

15.Subsequent Events

Other than the below, there have been no events since September 30, 2025 that require recognition or disclosure in the combined and condensed consolidated financial statements.

Bluestem Receivables Asset Acquisition

On October 24, 2025, the Company entered into an Asset Purchase Agreement with BLST Holding Company LLC, BLST Operating Company, LLC, BLST FinCo, LLC and BLST FinCo SubCo, LLC (collectively, “Bluestem” to acquire a revolving credit card receivables portfolio for which new draws have been suspended for a gross purchase price of $302.8 million. The gross purchase price is subject to customary adjustments for interim cash flows (including collections and new purchases) between June 30, 2025 (the “Cut Off Date”) and closing and a $20.0 million escrow to secure implementation obligations. At the Cut Off Date, the receivables being acquired had an aggregate face value of approximately $488.2 million. The Company does not intend to pursue ongoing originations through the Bluestem platform, and the acquisition does not include any Bluestem retail operations or assets.

The closing of the transaction is subject to the satisfaction of customary conditions, including expiration or termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act, and is expected in the fourth quarter of 2025.

Revolving Credit Facility Amendment

On October 27, 2025, the Company entered into an amendment to its Credit Agreement dated May 21, 2021. The Amendment effected certain amendments to the terms of the credit facility under the Existing Credit Agreement, including, among other things, to (i) increase the Aggregate Commitments (as defined in the Amended Credit Agreement) by $175,000,000 to an aggregate amount of $1,000,000,000, (ii) reduce the interest rate margins applicable to loans outstanding under the credit facility by fifty (50) basis points, (iii) (a) reduce the non-use fee rate for unutilized commitments under the credit facility by five (5) basis points and (b) reduce the maximum applicable non-use fee rate for

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unutilized commitments to thirty-five (35) basis points, (iv) eliminate any credit spread adjustments from the calculation of the interest rate applicable to loans outstanding under the credit facility, (v) extend the maturity of the credit facility to October 27, 2030, subject to such maturity being reduced to 91 days in advance of the earliest final scheduled maturity date of either the 9.500% Senior Notes due February 15, 2029 or the 8.250% Senior Notes due May 15, 2030, in each case issued by Jefferson Capital Holdings, LLC, a Delaware limited liability company, (vi) make customary changes (including changes to financial reporting requirements and ‘change of control’ thresholds applicable to the change of control event of default) to reflect the status of the Borrowers and their subsidiaries as indirect subsidiaries of the Company, (vii) modify certain terms applicable to permitted restricted payments, including distributions (a) to fund the payment of taxes, (b) to redeem outstanding senior notes of JCAP Holdings, or other parent companies of the Borrowers, and (c) to fund regular quarterly dividends and public company costs in an aggregate annual amount for such dividends and public company costs not to exceed the greater of (x) six percent (6%) of the market capitalization of the Company, and (y) the quarterly dividend amount specified in the model provided to the Lenders prior to October 27, 2025, (viii) remove the existing financial covenant requiring a minimum tangible net worth of JCAP Holdings and (ix) modify the frequency and conditions applicable to field audits and portfolio examinations conducted by or on behalf of the Administrative Agent.

Dividend Declaration

On November 12, 2025, the Company declared a dividend of $0.24 per share.

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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 consolidated financial statements and the related notes included in our audited consolidated financial statements included in the Company’s final prospectus filed with the SEC pursuant to Rule 424(b)(4) under the Securities Act of 1933, as amended, on June 27, 2025 (the “Prospectus”). 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”).

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 September 30, 2025, with 1,075 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, as was the case with the Conn’s Portfolio, and 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

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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 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

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.

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. For example, 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 periods 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 periods where a higher ratio of seasoned paper or non-paying portfolios were purchased. The Company’s average purchase price, as a percentage of face value, increased during the period ended September 30, 2025, as compared to the prior year periods, primarily related to portfolio mix.

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

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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.

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 periods presented:

	September 30,				Increase		%
(in Millions)	2025		2024		(Decrease)		Change
United States	$	2,158.8	$	1,668.9	$	489.9	29.4	%
Canada		362.5		272.8		89.7	32.9	%
United Kingdom		153.0		153.6		(0.6)	(0.4)	%
Latin America		255.3		211.5		43.8	20.7	%
Total	$	2,929.6	$	2,306.8	$	622.8	27.0	%

ERC in our United States reportable segment included $178.6 million from the Conn’s 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 periods presented:

	Three Months Ended
	September 30,				Increase		%
(in Millions)	2025		2024		(Decrease)		Change
United States	$	107.2	$	75.8	$	31.4	41.4	%
Canada		30.8		30.2		0.6	2.0	%
United Kingdom		4.1		4.7		(0.6)	(12.8)	%
Latin America		8.9		12.7		(3.8)	(29.9)	%
Total Purchases	$	151.0	$	123.4	$	27.5	22.3	%

During the three months ended September 30, 2025, we invested $151.0 million to acquire receivable portfolios, with face values aggregating $2,848.8 million, for an average purchase price of 5.3% of face value. The amount invested in receivable portfolios increased $27.5 million, or 22.3%, compared with the $123.4 million invested during the three months ended September 30, 2024, to acquire receivable portfolios with face values aggregating $1,681.0 million, for an average purchase price of 7.3% of face value.

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	Nine Months Ended
	September 30,				Increase		%
(in Millions)	2025		2024		(Decrease)		Change
United States	$	307.4	$	231.0	$	76.4	33.1	%
Canada		109.4		74.8		34.6	46.2	%
United Kingdom		10.7		22.5		(11.8)	(52.5)	%
Latin America		24.0		36.8		(12.8)	(34.9)	%
Total Purchases	$	451.5	$	365.2	$	86.3	23.6	%

During the nine months ended September 30, 2025, we invested $451.5 million to acquire receivable portfolios, with face values aggregating $7,365.7 million, for an average purchase price of 6.1% of face value. The amount invested in receivable portfolios increased $86.3 million, or 23.6%, compared with the $365.2 million invested during the nine months ended September 30, 2024, to acquire receivable portfolios with face values aggregating $5,741.6 million, for an average purchase price of 6.4% of face value.

Collections

The following tables summarize the total collections by geographic area, or reportable segment, during the periods presented:

	Three Months Ended
	September 30,				Increase		%
(in Millions)	2025		2024		(Decrease)		Change
United States	$	182.9	$	99.6	$	83.3	83.6	%
Canada		29.0		23.3		5.7	24.5	%
United Kingdom		11.1		10.6		0.5	4.7	%
Latin America		13.9		11.6		2.3	19.8	%
Total Collections	$	236.8	$	145.1	$	91.7	63.2	%

Collections from purchased receivables increased by $91.7 million or 63.2% to $236.8 million during the three months ended September 30, 2025, from $145.1 million during the three months ended September 30, 2024. The increase in collections from purchased receivables compared to the period ended September 30, 2024, was primarily a result of increased purchases during the period. Collections in our United States reportable segment included $49.7 million from the Conn’s Portfolio Purchase.

	Nine Months Ended
	September 30,				Increase		%
(in Millions)	2025		2024		(Decrease)		Change
United States	$	599.6	$	288.5	$	311.1	107.8	%
Canada		85.5		64.1		21.4	33.4	%
United Kingdom		32.0		29.2		2.8	9.6	%
Latin America		36.3		28.4		7.9	27.8	%
Total Collections	$	753.4	$	410.2	$	343.2	83.7	%

Collections from purchased receivables increased by $343.2 million or 83.7% to $753.4 million during the nine months ended September 30, 2025, from $410.2 million during the nine months ended September 30, 2024. The increase in collections from purchased receivables compared to the period ended September 30, 2024, was primarily a result of increased purchases during the period. Collections in our United States reportable segment included $210.6 million from the Conn’s Portfolio Purchase.

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Non-GAAP Financial Measures

To supplement our combined and condensed consolidated financial statements prepared and presented in accordance with GAAP, we use certain non-GAAP financial measures throughout this Quarterly 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 condensed 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 period-to-period 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.

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.

	Three Months Ended
	September 30,				Increase		%
(in Millions)	2025		2024		(Decrease)		Change
Net Income	$	38.4	$	36.9	$	1.5	4.0	%
Foreign exchange and other income (expense)		(1.9)		0.4		(2.4)	(541.8)	%
Stock compensation		8.8		2.2		6.6	303.7	%
Canaccede exit incentive		0.1		—		0.1	—
Merger and acquisition and other one-time expenses		2.4		0.2		2.2	1,046.1	%
Adjusted Net Income	$	47.7	$	39.7	$	8.0	20.1	%

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	Nine Months Ended
	September 30,				Increase		%
(in Millions)	2025		2024		(Decrease)		Change
Net Income	$	150.2	$	101.9	$	48.3	47.4	%
Foreign exchange and other income (expense)		(5.6)		3.2		(8.7)	(274.9)	%
Provision for income taxes		24.1		6.2		17.9	288.8	%
Stock compensation		0.8		4.1		(3.2)	(79.3)	%
Canaccede exit incentive		1.1		—		1.1	—	%
Merger and acquisition and other one-time expenses		10.1		0.7		9.4	1,284.3	%
Adjusted Net Income	$	180.8	$	116.1	$	64.6	55.7	%

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 period 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 previously charged-off receivables, net” on our combined and condensed 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.

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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 period-to-period 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, primarily related to loan costs.

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.

40

Results of Operations

Three months ended September 30, 2025 compared to the three months ended September 30, 2024.

The following tables set forth combined and condensed consolidated income statement data expressed in a dollar amount and as a percentage of total revenues for the periods indicated:

	Three Months Ended September 30,
(in Millions)	2025				2024
Revenues:
Portfolio income	$	139.2	92.3	%	$	99.3	89.7	%
Changes in recoveries		0.5	0.3	%		1.7	1.5	%
Total portfolio revenue	$	139.7	92.6	%	$	100.9	91.3	%
Credit card revenue		1.8	1.2	%		2.0	1.9	%
Servicing revenue		9.4	6.2	%		7.6	6.9	%
Total revenues	$	150.8	100.0	%	$	110.6	100.0	%
Provision for credit losses	$	0.6	0.4	%	$	0.9	0.8	%
Operating expenses:
Salaries and benefits	$	23.3	15.5	%	$	12.6	11.4	%
Servicing expenses		47.6	31.6	%		33.2	30.1	%
Depreciation and amortization		1.4	0.9	%		0.5	0.5	%
Professional fees		3.7	2.5	%		1.9	1.7	%
Other selling, general and administrative		4.2	2.8	%		2.1	1.9	%
Total operating expenses	$	80.2	53.2	%	$	50.3	45.5	%
Net operating income	$	70.0	46.4	%	$	59.4	53.7	%
Other income (expense):
Interest expense	$	(26.5)	(17.5)	%	$	(19.8)	(17.9)	%
Foreign exchange and other income (expense)		1.9	1.3	%		(0.4)	(0.4)	%
Total other income / (expense)		(24.5)	(16.3)	%		(20.2)	(18.3)	%
Income before income taxes	$	45.5	30.2	%	$	39.2	35.5	%
Provision for income taxes		(7.2)	(4.7)	%		(2.4)	(2.1)	%
Net income	$	38.4	25.4	%	$	36.9	33.3	%
Foreign currency translation		(5.0)	(3.3)	%		4.9	4.4	%
Comprehensive income	$	33.3	22.1	%	$	41.7	37.7	%

Revenues

A summary of how our revenues were generated during the periods indicated is as follows:

	Three Months Ended
	September 30,				Increase		%
(in Millions)	2025		2024		(Decrease)		Change
Cash collections	$	236.8	$	145.1	$	91.7	63.2	%
Principal amortization		(97.2)		(44.2)		(53.0)	119.8	%
Total portfolio revenue		139.7		100.9		38.7	38.4	%
Credit card revenue		1.8		2.0		(0.3)	(14.3)	%
Servicing revenue		9.4		7.6		1.8	23.8	%
Total revenues	$	150.8	$	110.6	$	40.2	36.4	%

Total revenues were $150.8 million for the three months ended September 30, 2025, an increase of $40.2 million, or 36.4%, compared to $110.6 million for the three months ended September 30, 2024. The increase is primarily a result of strong deployment growth in prior periods.

41

Operating Expenses

Total operating expenses were $80.2 million for the three months ended September 30, 2025, an increase of $29.9 million, or 59.5%, compared to $50.3 million for the three months ended September 30, 2024 driven primarily by an increase of $14.4 million in servicing expenses due to increased court costs which are incurred upfront at the outset of consumer litigation in anticipation of generating future collections and collection growth and $10.7 million in salaries and benefits primarily due to $8.8 million in stock-based compensation expense.

Salaries and Benefits

Salaries and benefits were $23.3 million for the three months ended September 30, 2025 an increase of $10.7 million, or 85.5%, compared to $12.6 million for the three months ended September 30, 2024. The increase in Salaries was driven by $8.8 million in stock-based compensation costs which reflects the amortization of grant-date fair value of restricted stock awards granted in connection with the IPO.

Servicing Expenses

Servicing expenses were $47.6 million for the three months ended September 30, 2025, an increase of $14.4 million, or 43.2%, compared to $33.2 million for the three months ended September 30, 2024. The increase in servicing expenses was primarily driven by increased collections and court costs which are incurred upfront at the outset of consumer litigation in anticipation of generating future collections. Servicing expenses consisted of the following for the three months ended September 30, 2025 and 2024:

	Three Months Ended
	September 30,				Increase		%
(in Millions)	2025		2024		(Decrease)		Change
Agency and repo commission expense	$	12.8	$	10.6	$	2.2	20.8	%
Legal commission expense		7.4		4.8		2.6	54.2	%
Court costs		14.9		9.0		5.9	65.6	%
Communications		6.1		4.8		1.3	27.1	%
Offshore		3.5		2.2		1.3	59.1	%
Other servicing expenses		2.9		1.8		1.1	57.6	%
Total servicing expenses	$	47.6	$	33.2	$	14.4	43.2	%

Depreciation and Amortization

Depreciation and amortization was $1.4 million for the three months ended September 30, 2025, a $0.8 million, or 146.4%, increase from the $0.5 million for the three months ended September 30, 2024. The increase was primarily due to incremental amortization expense of $0.6 million associated with the Conn’s purchase which closed in December 2024.

Professional Fees

Professional fees were $3.7 million for the three months ended September 30, 2025 an increase of $1.8 million, or 97.6%, compared to $1.9 million for the three months ended September 30, 2024. The increase was primarily due to fees associated with merger and acquisition expenses and 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 which totaled $4.2 million for the three months ended September 30, 2025, an increase of $2.2 million or 105.7%, compared to $2.1 million for the three months ended September 30, 2024. The increase is primarily due to $1.8 million for data processing and rent related to the Conn’s purchase, $0.1 million for the Canada acquisition in relation to the potential realization of an exit incentive as well as other various expense increases.

Other Income (Expense)

Interest Expense

Total interest expense was $26.5 million for the three months ended September 30, 2025, an increase of $6.7 million, or 34.0%, compared to $19.8 million for the three months ended September 30, 2024. The increase was primarily driven

42

by an increase in the cost of debt due to the payoff of the credit facility with the net proceeds of the 2030 Senior Notes issued in May 2025 as well as by increased amortization of debt issuance costs of $1.5 million, $0.4 million or 39.5% higher compared to $1.1 million for the three months ended September 30, 2024, due to the issuance of the 2029 Senior Notes in the year ended December 31, 2024 and the issuance of the 2030 Senior Notes in May 2025.

Interest expense consisted of the following for the three months ended September 30, 2025 and 2024:

	Three Months Ended
	September 30,				Increase		%
(in Millions)	2025		2024		(Decrease)		Change
Interest expense	$	24.9	$	18.7	$	6.3	33.7	%
Amortization of debt issuance costs		1.5		1.1		0.4	39.5	%
Total interest expense	$	26.5	$	19.8	$	6.7	34.0	%

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 and nondeductible fair value adjustments to derivatives, as well as the relative proportion of foreign income to domestic income, generation of tax credits, changes in the valuation of our deferred tax assets and liabilities, and changes in tax laws. The Company has recognized a quarter-to-date tax provision of $7.2 million.

Segment Results of Operations

The following tables set forth combined and condensed consolidated income statement amounts categorized by segment, for the periods indicated:

	Three Months Ended September 30,
	2025															2024
(in Millions)	United States			United Kingdom			Canada			Latin America			Total			United States			United Kingdom			Canada			Latin America			Total
Portfolio revenue	$	108.1		$	6.9		$	15.4		$	9.3		$	139.7		$	72.9		$	7.9		$	11.4		$	8.7		$	100.9
Credit card revenue		0.6			—			1.1			—			1.8			0.6			—			1.4			—			2.0
Servicing revenue		2.5			6.5			0.4			—			9.4			0.7			6.8			0.1			—			7.6
Total Revenue	$	111.3		$	13.4		$	16.9		$	9.3		$	150.8		$	74.3		$	14.7		$	12.9		$	8.7		$	110.6
Provision for credit losses	$	0.4		$	—		$	0.2		$	—		$	0.6		$	0.4		$	—		$	0.4		$	—		$	0.9
Operating Expenses
Salaries and benefits		17.8			4.1			1.3			0.1			23.3			7.4			3.8			1.3			0.1			12.6
Servicing expenses		35.7			5.6			2.8			3.5			47.6			23.2			4.3			2.8			3.0			33.2
Depreciation and amortization		0.8			0.1			0.5			0.0			1.4			0.2			0.1			0.3			0.0			0.5
Professional fees		3.1			0.3			0.1			0.3			3.7			1.4			0.2			0.1			0.2			1.9
Other selling, general and administrative		3.1			0.7			0.3			0.1			4.2			0.9			0.7			0.3			0.1			2.1
Total Operating Expenses	$	60.5		$	10.7		$	4.9		$	4.1		$	80.2		$	33.2		$	9.1		$	4.7		$	3.4		$	50.3
Net Operating Income	$	50.4		$	2.7		$	11.8		$	5.2		$	70.0		$	40.7		$	5.6		$	7.8		$	5.3		$	59.4
Net operating income margin		45.3	%		20.2	%		69.6	%		55.8	%		46.4	%		54.8	%		38.2	%		60.1	%		61.4	%		53.7	%

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United States

	Three Months Ended
	September 30,						Increase		%
(in Millions)	2025			2024			(Decrease)		Change
Portfolio revenue	$	108.1		$	72.9		$	35.2	48.3	%
Credit card revenue		0.6			0.6			(0.0)	(2.2)	%
Servicing revenue		2.5			0.7			1.8	236.5	%
Total Revenue	$	111.3		$	74.3		$	37.0	49.7	%
Provision for credit losses	$	0.4		$	0.4		$	—	—	%
Operating Expenses
Salaries and benefits		17.8			7.4			10.4	139.8	%
Servicing expenses		35.7			23.2			12.5	53.6	%
Depreciation and amortization		0.8			0.2			0.6	379.0	%
Professional fees		3.1			1.4			1.7	121.0	%
Other selling, general and administrative		3.1			0.9			2.2	229.4	%
Total Operating Expenses	$	60.5		$	33.2		$	27.3	82.4	%
Net Operating Income	$	50.4		$	40.7		$	9.7	23.8	%
Net operating income margin		45.3	%		54.8	%

Portfolio revenue grew $35.2 million or 48.3% in the period ended September 30, 2025 compared to September 30, 2024, primarily due to the growth in our deployments, including from, but not solely based on, the Conn’s Portfolio Purchase.

Servicing revenue grew $1.8 million or 236.5% for the period ended September 30, 2025 compared to September 30, 2024, primarily due to the Conn’s Portfolio Purchase, which contributed $1.9 million of total servicing revenue in the three months ended September 30, 2025.

We consolidate salaries, bonuses and accruals for stock compensation for our U.S.-based senior management team into the “Salaries and benefits expense” for the United States segment. Salaries and benefits in the United States increased $10.4 million or 139.8% in the three months ended September 30, 2025 compared to September 30, 2024 driven by $8.8 million from the amortization of grant-date fair value of restricted stock awards granted in connection with the IPO.

Servicing expenses grew $12.5 million or 53.6% in the period ending September 30, 2025 compared to September 30, 2024 driven by growth in our collections as well as court costs which are incurred upfront at the outset of consumer litigation in anticipation of generating future collections. Servicing expenses include $3.3 million related to the Conn’s Portfolio Purchase.

We incurred $3.1 million or 121.0% higher professional fees in the period ended September 30, 2025 compared to September 30, 2024 driven by costs associated with merger and acquisition activity and one-time legal and professional fees incurred as part of the initial public offering in June 2025.

Other selling, general and administrative expenses increased $2.2 million or 229.4% in the period ended September 30, 2025 compared to September 30, 2024 primarily due to additional data processing and higher rent expense related to the addition of Conn’s location in 2025.

Overall net operating income increased $9.7 million or 23.8% in the period ended September 30, 2025 compared to September 30, 2024 to $50.4 million from $40.7 million driven by $16.5 million associated with the Conn’s portfolio acquired in December 2024. Net operating income as a percentage of total revenues was 45.3% in the period ended September 30, 2025 compared to 54.8% in September 30, 2024.

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United Kingdom

	Three Months Ended
	September 30,						Increase		%
(in Millions)	2025			2024			(Decrease)		Change
Portfolio revenue	$	6.9		$	7.9		$	(1.0)	(12.6)	%
Servicing revenue		6.5			6.8			(0.3)	(4.5)	%
Total Revenue	$	13.4		$	14.7		$	(1.3)	(8.8)	%
Operating Expenses
Salaries and benefits		4.1			3.8			0.3	7.3	%
Servicing expenses		5.6			4.3			1.3	29.8	%
Depreciation and amortization		0.1			0.1			0.0	0.0	%
Professional fees		0.3			0.2			0.1	34.6	%
Other selling, general and administrative		0.7			0.7			(0.0)	(3.3)	%
Total Operating Expenses	$	10.7		$	9.1		$	1.6	17.7	%
Net Operating Income	$	2.7		$	5.6		$	(2.9)	(51.8)	%
Net operating income margin		20.2	%		38.2	%

Portfolio revenue decreased $1.0 million or 12.6% in the period ended September 30, 2025 compared to September 30, 2024 primarily due to a decrease in deployment volumes.

Servicing revenue decreased $0.3 million or 4.5% in the period ended September 30, 2025 compared to September 30, 2024 due to reduced third party servicing.

Salaries and benefits increased $0.3 million or 7.3% in the period ended September 30, 2025 compared to September 30, 2024 primarily due to higher employee benefit costs.

Servicing expenses increased $1.3 million or 29.8% in the period ended September 30, 2025 compared to September 30, 2024 primarily due to increase in collections as well as court costs which are incurred upfront at the outset of consumer litigation in anticipation of generating future collections.

Overall net operating income declined $2.9 million or 51.8% in the period ended September 30, 2025 compared to September 30, 2024 due to lower deployments and higher servicing expenses. Net operating income as a percentage of total revenues was 20.2% in the period ended September 30, 2025 compared to 38.2% in September 30, 2024.

45

Canada

	Three Months Ended
	September 30,						Increase		%
(in Millions)	2025			2024			(Decrease)		Change
Portfolio revenue	$	15.4		$	11.4		$	4.0	35.0	%
Credit card revenue		1.1			1.4			(0.3)	(21.4)	%
Servicing revenue		0.4			0.1			0.3	428.6	%
Total Revenue	$	16.9		$	12.9		$	4.0	30.9	%
Provision for credit losses	$	0.2		$	0.4		$	(0.2)	(56.0)	%
Operating Expenses
Salaries and benefits		1.3			1.3			—	—	%
Servicing expenses		2.8			2.8			—	—	%
Depreciation and amortization		0.5			0.3			0.2	68.3	%
Professional fees		0.1			0.1			—	—	%
Other selling, general and administrative		0.3			0.3			—	—	%
Total Operating Expenses	$	4.9		$	4.7		$	0.2	4.8	%
Net Operating Income	$	11.8		$	7.8		$	4.0	51.8	%
Net operating income margin		69.6	%		60.1	%

Portfolio revenue increased $3.9 million or 35.0% in the period ended September 30, 2025 compared to September 30, 2024 primarily due to higher deployments.

Credit card revenue decreased $0.3 million or 21.4% in the period ended September 30, 2025 compared to September 30, 2024 due to the portfolio continuing to attrit after no new originations have occurred since August 2024 due to proposed regulatory changes.

Servicing revenue increased $0.4 million or 428.6% in the period ended September 30, 2025 compared to September 30, 2024 due to the underlying organic growth.

Depreciation and amortization increased $0.2 million or 68.3% in the period ended September 30, 2025 compared to September 30, 2024 primarily due to additional software amortization expense.

Overall net operating income increased $4.0 million or 51.8% in the period ended September 30, 2025 compared to  September 30, 2024 due to higher revenue growth with prudent expense management. Net operating income as a percentage of total revenues was 69.6% in the period ended September 30, 2025 compared to 60.1% in September 30, 2024.

46

Latin America

	Three Months Ended
	September 30,						Increase		%
(in Millions)	2025			2024			(Decrease)		Change
Portfolio revenue	$	9.3		$	8.7		$	0.6	6.8	%
Total Revenue	$	9.3		$	8.7		$	0.6	6.8	%
Operating Expenses
Salaries and benefits		0.1			0.1			—	—	%
Servicing expenses		3.5			3.0			0.5	16.9	%
Depreciation and amortization		0.0			0.0			—	—	%
Professional fees		0.3			0.2			0.1	0.4	%
Other selling, general and administrative		0.1			0.1			—	—	%
Total Operating Expenses	$	4.1		$	3.4		$	0.7	20.9	%
Net Operating Income	$	5.2		$	5.3		$	(0.1)	(1.9)	%
Net operating income margin		55.8	%		61.4	%

Portfolio revenue increased $0.6 million or 6.8% in the period ended September 30, 2025 compared to September 30, 2024 primarily due to increase in deployments.

Servicing expenses increased $0.6 million or 16.9% in the period ended September 30, 2025 compared to September 30, 2024 primarily due to increased collections.

Overall net operating income decreased slightly by $0.1 million or 1.9% in the period ended September 30, 2025 compared to September 30, 2024 due to higher operating expense growth. Net operating income as a percentage of total revenues was 55.8% in the period ended September 30, 2025 compared to 61.4% in September 30, 2024.

47

Nine months ended September 30, 2025 compared to nine months ended September 30, 2024

The following tables set forth combined and condensed consolidated income statement data expressed in a dollar amount and as a percentage of total revenues for the periods indicated:

	Nine Months Ended September 30,
(in Millions)	2025				2024
Revenues:
Portfolio income	$	416.7	90.9	%	$	285.4	90.8	%
Changes in recoveries		5.7	1.2	%		1.6	0.5	%
Total portfolio revenue	$	422.4	92.1	%	$	286.9	91.3	%
Credit card revenue		5.5	1.2	%		6.4	2.0	%
Servicing revenue		30.6	6.7	%		21.1	6.7	%
Total revenues	$	458.5	100.0	%	$	314.4	100.0	%
Provision for credit losses	$	1.7	0.4	%	$	2.6	0.8	%
Operating Expenses:
Salaries and benefits	$	43.6	9.5	%	$	36.0	11.5	%
Servicing expenses		133.9	29.2	%		95.9	30.5	%
Depreciation and amortization		4.2	0.9	%		1.7	0.5	%
Professional fees		15.4	3.4	%		5.9	1.9	%
Other selling, general and administrative		13.8	3.0	%		5.8	1.8	%
Total operating expenses	$	210.9	46.0	%	$	145.3	46.2	%
Net operating income	$	245.9	53.6	%	$	166.5	53.0	%
Other income / (expense):
Interest expense	$	(77.2)	(16.8)	%	$	(55.2)	(17.6)	%
Foreign exchange and other income (expense)		5.6	1.2	%		(3.2)	(1.0)	%
Total other income / (expense)		(71.6)	(15.6)	%		(58.4)	(18.6)	%
Income before income taxes	$	174.3	38.0	%	$	108.1	34.4	%
Provision for income taxes		(24.1)	(5.3)	%		(6.2)	(2.0)	%
Net income	$	150.2	32.8	%	$	101.9	32.4	%
Foreign currency translation		13.3	2.9	%		(1.0)	(0.3)	%
Comprehensive income	$	163.5	35.7	%	$	100.9	32.1	%

Revenues

A summary of how our revenues were generated during the periods indicated is as follows:

	Nine Months Ended
	September 30,				Increase		%
(in Millions)	2025		2024		(Decrease)		Change
Cash Collections	$	753.4	$	410.2	$	343.2	83.7	%
Principal Amortization		(331.0)		(123.3)		(207.7)	168.5	%
Total portfolio revenue		422.4		286.9		135.5	47.2	%
Credit card revenue		5.5		6.4		(0.9)	(14.1)	%
Servicing revenue		30.6		21.1		9.5	45.0	%
Total revenues	$	458.5	$	314.4	$	144.1	45.8	%

Total revenues were $458.5 million for the nine months ended September 30, 2025, an increase of $144.1 million, or 45.8%, compared to $314.4 million for the nine months ended September 30, 2024. The increase is primarily a result of increased deployments during the period.

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Operating Expenses

Total operating expenses were $210.9 million for the nine months ended September 30, 2025, an increase of $65.6 million, or 45.1%, compared to $145.3 million for the nine months ended September 30, 2024. This is driven by an increase in salaries and benefit expense of $7.6 million primarily due to increased personnel expense related to the Conns Portfolio purchase, servicing expenses of $38.0 million related to increased collections, $9.5 million in professional fees related to the initial public offering in June 2025, and $8.0 million associated with increased various selling, general and administrative expenses primarily data processing fees.

Salaries and Benefits

Salaries and benefits were $43.6 million for the nine months ended September 30, 2025 which is an increase of $7.6 million, or 21.1%, compared to $36.0 million for the nine months ended September 30, 2024. The increase is primarily due to increased personnel expense of $8.1 million related to the Conns Portfolio purchase.

Servicing Expenses

Servicing expenses were $133.9 million for the nine months ended September 30, 2025, an increase of $38.0 million, or 39.6%, compared to $95.9 million for the nine months ended September 30, 2024. The increase in servicing expenses was primarily driven by increased collections as well as $10.0 million from the Conn’s portfolio and court costs which are incurred upfront at the outset of consumer litigation in anticipation of generating future collections.  Servicing expenses consisted of the following for the nine months ended September 30, 2025 and 2024:

	Nine Months Ended
	September 30,				Increase		%
(in Millions)	2025		2024		(Decrease)		Change
Agency and repo commission expense	$	37.7	$	26.5	$	11.2	42.3	%
Legal commission expense		20.7		14.4		6.3	43.8	%
Court costs		36.7		22.5		14.2	63.1	%
Communications		20.8		20.5		0.3	1.5	%
Offshore		10.2		6.2		4.0	64.5	%
Other servicing expenses		7.8		5.8		2.0	34.5	%
Total servicing expenses	$	133.9	$	95.9	$	38.0	39.6	%

Depreciation and Amortization

Depreciation and amortization was $4.2 million for the nine months ended September 30, 2025, a $2.5 million, or 147.1%, increase from the $1.7 million for the nine months ended September 30, 2024. The increase was due to incremental intangible assets associated with the Conn’s purchase, which equated to $2.4 million of additional amortization.

Professional Fees

Professional fees were $15.4 million for the nine months ended September 30, 2025, an increase of $9.5 million, or 161.0%, compared to $5.9 million for the nine months ended September 30, 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 $13.8 million for the nine months ended September 30, 2025, an increase of $8.0 million or 137.9%, compared to $5.8 million for the nine months ended September 30, 2024. The increase is primarily due to an additional $5.8 million for data processing and rent expense related to the addition of Conn’s location in 2025. Additionally, we recognized a one-time cost associated with the Canada acquisition in relation to the potential realization of an exit incentive of $1.1 million.

49

Other Income (Expense)

Interest Expense

Total interest expense was $77.2 million for the nine months ended September 30, 2025, an increase of $22.0 million, or 39.9%, compared to $55.2 million for the nine months ended September 30, 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 $4.0 million, an increase of $0.9 million or 27.8% higher compared to $3.1 million for the nine months ended September 30, 2025, due to the issuance of the 2030 Senior Notes in May 2025.

Interest expense consisted of the following for the period ended September 30, 2025 and 2024:

	Nine Months Ended
	September 30,				Increase		%
(in Millions)	2025		2024		(Decrease)		Change
Interest expense	$	73.2	$	52.0	$	21.2	40.8	%
Amortization of note payable origination costs		4.0		3.1		0.9	27.8	%
Total interest expense	$	77.2	$	55.2	$	22.0	39.9	%

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 and nondeductible fair value adjustments to derivatives, as well as the relative proportion of foreign income to domestic income, generation of tax credits, changes in the valuation of our deferred tax assets and liabilities, and changes in tax laws. The Company has recognized a year-to-date provision of $24.1 million to reflect the change in tax payer status to a corporation as a result of the reorganization related to the initial public offering.

Segment Results of Operations

The following tables set forth combined and condensed consolidated income statement amounts categorized by segment, for the periods indicated:

	Nine Months Ended September 30,
	2025															2024
(in Millions)	United States			United Kingdom			Canada			Latin America			Total			United States			United Kingdom			Canada			Latin America			Total
Portfolio revenue	$	326.2		$	18.8		$	49.1		$	28.3		$	422.4		$	205.8		$	21.6		$	36.2		$	23.3		$	286.9
Credit card revenue		1.9			—			3.5			—			5.5			2.1			—			4.2			—			6.4
Servicing revenue		10.8			18.6			1.2			—			30.6			2.4			18.5			0.2			—			21.1
Total Revenue	$	338.9		$	37.4		$	53.8		$	28.3		$	458.5		$	210.3		$	40.1		$	40.6		$	23.3		$	314.4
Provision for credit losses	$	1.1		$	—		$	0.6		$	—		$	1.7		$	1.4		$	—		$	1.2		$	—		$	2.6
Operating Expenses
Salaries and benefits	$	27.3		$	11.9		$	4.0		$	0.4		$	43.6		$	21.1		$	10.6		$	4.0		$	0.3		$	36.0
Servicing expenses		101.7			14.7			7.8			9.7			133.9			70.1			10.7			7.6			7.4			95.9
Depreciation and amortization		2.9			0.3			1.0			—			4.2			0.5			0.2			0.9			—			1.7
Professional fees		13.5			0.8			0.4			0.7			15.4			4.3			0.7			0.3			0.6			5.9
Other selling, general and administrative		10.5			1.9			1.0			0.4			13.8			2.7			1.8			0.9			0.3			5.8
Total Operating Expenses	$	155.9		$	29.5		$	14.2		$	11.2		$	210.9		$	98.7		$	24.0		$	13.7		$	8.6		$	145.3
Net Operating Income	$	181.9		$	7.9		$	39.0		$	17.1		$	245.9		$	110.2		$	16.1		$	25.7		$	14.7		$	166.5
Net operating income margin		53.7	%		21.2	%		72.5	%		60.4	%		53.6	%		52.4	%		40.1	%		63.3	%		63.1	%		53.0	%

50

United States

	Nine Months Ended
	September 30,						Increase		%
(in Millions)	2025			2024			(Decrease)		Change
Portfolio revenue	$	326.2		$	205.8		$	120.4	58.5	%
Credit card revenue		1.9			2.1			(0.2)	(9.5)	%
Servicing revenue		10.8			2.4			8.4	350.0	%
Total Revenue	$	338.9		$	210.3		$	128.6	61.2	%
Provision for credit losses	$	1.1		$	1.4		$	(0.3)	(21.4)	%
Operating Expenses
Salaries and benefits	$	27.3		$	21.1		$	6.2	29.4	%
Servicing expenses		101.7			70.1			31.6	45.1	%
Depreciation and amortization		2.9			0.5			2.4	480.0	%
Professional fees		13.5			4.3			9.2	214.0	%
Other selling, general and administrative		10.5			2.7			7.8	288.9	%
Total Operating Expenses	$	155.9		$	98.7		$	57.2	58.0	%
Net Operating Income	$	181.9		$	110.2		$	71.7	65.1	%
Net operating income margin		53.7	%		52.4	%

Portfolio revenue increased $120.4 million or 58.5% in the nine months ended September 30, 2025 compared to September 30, 2024, primarily due to deployment growth including the Conn’s portfolio acquisition in December 2024 which contributed $80.3 million of revenue.

Servicing revenue grew $8.4 million or 350.0% in the nine months ended September 30, 2025, primarily due to the Conn’s Portfolio Purchase, which contributed $8.7 million.

Salaries and benefits were $27.3 million for the nine months ended September 30, 2025 which is an increase of $6.2 million, or 29.4%, compared to $21.1 million for the nine months ended September 30, 2024. The increase is primarily due to the increase in personnel expense related to the Conns Portfolio acquisition.

Servicing expenses were $101.7 million for the nine months ended September 30, 2025, an increase of $31.6 million, or 45.1%, compared to $70.1 million for the nine months ended September 30, 2024. The increase in servicing expenses was primarily driven by increased collections, court costs which are incurred upfront at the outset of consumer litigation in anticipation of generating future collections and $10.0 million from the Conn’s portfolio acquisition.

Professional fees were $13.5 million for the nine months ended September 30, 2025, an increase of $9.2 million, or 214.0%, compared to $4.3 million for the nine months ended September 30, 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 generally consist of rent expense, travel and entertainment expenses, and other general overhead expenses. These expenses totaled $10.5 million for the nine months ended September 30, 2025, an increase of $7.8 million or 288.9%, compared to $2.7 million for the nine months ended September 30, 2024. The increase is primarily due to an additional $5.8 million for data processing and rent expense related to the addition of Conn’s portfolio acquisition. Additionally, we recognized a one-time cost associated with the Canada acquisition in relation to the potential realization of an exit incentive of $1.1 million.

Overall net operating income increased $71.7 million or 65.1% higher in the nine months ended September 30, 2025 than the nine months ended September 30, 2024 primarily due to continued growth in deployments and the result of the successful implementation of initiatives to reduce the cost to collect. $62.5 million was contributed from the Conn’s portfolio.

51

United Kingdom

	Nine Months Ended
	September 30,						Increase		%
(in Millions)	2025			2024			(Decrease)		Change
Portfolio revenue	$	18.8		$	21.6		$	(2.8)	(13.0)	%
Servicing revenue		18.6			18.5			0.1	0.5	%
Total Revenue	$	37.4		$	40.1		$	(2.7)	(6.7)	%
Operating Expenses
Salaries and benefits	$	11.9		$	10.6		$	1.3	12.2	%
Servicing expenses		14.7			10.7			4.0	36.9	%
Depreciation and amortization		0.3			0.2			0.1	29.5	%
Professional fees		0.8			0.7			0.1	7.7	%
Other selling, general and administrative		1.9			1.8			0.1	5.9	%
Total Operating Expenses	$	29.5		$	24.0		$	5.5	22.8	%
Net Operating Income	$	7.9		$	16.1		$	(8.2)	(50.7)	%
Net operating income margin		21.2	%		40.1	%

Portfolio revenue decreased $2.8 million or 13.0% in the period ended September 30, 2025 compared to September 30, 2024 primarily due to lower deployments in the United Kingdom.

Servicing revenue increased $0.1 million or 0.5% in the period ended September 30, 2025 compared to September 30, 2024 due to reduced third party servicing.

Salaries and benefits increased $1.3 million or 12.2% in the period ended September 30, 2025 compared to September 30, 2024 primarily due to higher employee benefit costs.

Servicing expenses increased $4.0 million or 36.9% in the period ended September 30, 2025 compared to September 30, 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 $8.2 million or 50.7% in the period ended September 30, 2025 compared to September 30, 2024 primarily due to lower deployments and higher servicing costs.

52

Canada

	Nine Months Ended
	September 30,						Increase		%
(in Millions)	2025			2024			(Decrease)		Change
Portfolio revenue	$	49.1		$	36.2		$	12.9	35.6	%
Credit card revenue		3.5			4.2			(0.7)	(16.7)	%
Servicing revenue		1.2			0.2			1.0	500.0	%
Total Revenue	$	53.8		$	40.6		$	13.2	32.5	%
Provision for credit losses	$	0.6		$	1.2		$	(0.6)	(50.0)	%
Operating Expenses
Salaries and benefits	$	4.0		$	4.0		$	—	0.0	%
Servicing expenses		7.8			7.6			0.2	2.6	%
Depreciation and amortization		1.0			0.9			0.1	11.1	%
Professional fees		0.4			0.3			0.1	33.3	%
Other selling, general and administrative		1.0			0.9			0.1	11.1	%
Total Operating Expenses	$	14.2		$	13.7		$	0.5	3.6	%
Net Operating Income	$	39.0		$	25.7		$	13.3	51.8	%
Net operating income margin		72.5	%		63.3	%

Portfolio revenue increased $12.9 million or 35.6% in the period ended September 30, 2025 compared to September 30, 2024 primarily due to higher deployments.

Servicing revenue increased $1.0 million or 500.0% in the period ended September 30, 2025 compared to September 30, 2024 due to continued organic growth.

Servicing expenses increased $0.2 million or 2.6% in the period ended September 30, 2025 compared to September 30, 2024 primarily due to higher collections.

Overall net operating income increased $13.3 million or 51.8% in the period ended September 30, 2025 compared to September 30, 2024 primarily due to increased deployments.

Latin America

	Nine Months Ended
	September 30,						Increase		%
(in Millions)	2025			2024			(Decrease)		Change
Portfolio revenue	$	28.3		$	23.3		$	5.0	21.5	%
Total Revenue	$	28.3		$	23.3		$	5.0	21.5	%
Operating Expenses
Salaries and benefits	$	0.4		$	0.3		$	0.1	33.3	%
Servicing expenses		9.7			7.4			2.3	31.1	%
Depreciation and amortization		—			—			—	0.0	%
Professional fees		0.7			0.6			0.1	16.67	%
Other selling, general and administrative		0.4			0.3			0.1	33.3	%
Total Operating Expenses	$	11.2		$	8.6		$	2.6	30.2	%
Net Operating Income	$	17.1		$	14.7		$	2.4	16.3	%
Net operating income margin		60.4	%		63.1	%

Portfolio revenue increased $5.0 million or 21.5% in the period ended September 30, 2025 compared to September 30, 2024 primarily due to strong collection performance.

53

Servicing expense increased $2.3 million or 31.1% in the period ended September 30, 2025 compared to September 30, 2024 due to increased collections.

Overall net operating income increased $2.4 million or 16.3% in the period ended September 30, 2025 compared to September 30, 2024 due to strong collection performance.

Supplemental Performance Data as of September 30, 2025

Investments in Receivables Portfolio Performance

The following tables show certain data related to our investment in receivables portfolios.

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. For example, increased pricing competition during the 2005 to 2008 period negatively impacted purchase price multiples of our Distressed portfolio compared to prior years. Conversely, during the 2009 to 2011 period, additional supply occurred as a result of the 2008 recession, which resulted in an economic downturn. This created 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 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 estimated remaining collections (“ERC”s). 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.

54

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 periods and between types of receivables.

PURCHASE PRICE MULTIPLES AS OF SEPTEMBER 30, 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	$	1,010.2	$	31.9	$	1,042.1	3.07	x	2.28	x
	2017		55.3		168.0		20.5		188.5	3.41	x	2.36	x
	2018		76.2		208.4		33.5		241.9	3.17	x	2.70	x
	2019		94.8		265.4		21.4		286.8	3.03	x	2.29	x
Vintage	2020		74.1		177.8		44.6		222.4	3.00	x	2.20	x
	2021		73.1		114.7		47.9		162.6	2.23	x	1.97	x
	2022		142.1		153.9		127.7		281.5	1.98	x	2.00	x
	2023		337.6		311.4		462.1		773.5	2.29	x	2.11	x
	2024		481.5		383.0		635.4		1,018.4	2.11	x	1.98	x
	2025		238.5		42.1		500.9		543.1	2.28	x	2.28	x
	Total	$	1,913.2	$	2,834.8	$	1,926.1	$	4,760.9
	US Insolvency
	2003-2016 (6)	$	235.8	$	366.0	$	0.3	$	366.3	1.55	x	1.72	x
	2017		49.6		62.5		0.9		63.3	1.28	x	1.35	x
	2018		86.7		106.8		1.6		108.4	1.25	x	1.30	x
	2019		62.2		84.3		4.8		89.2	1.43	x	1.31	x
Vintage	2020		30.1		42.8		5.7		48.5	1.61	x	1.40	x
	2021		23.7		30.7		5.6		36.3	1.53	x	1.25	x
	2022		40.7		40.5		12.1		52.7	1.29	x	1.30	x
	2023		66.7		51.2		42.2		93.4	1.40	x	1.34	x
	2024		71.1		26.6		70.1		96.7	1.36	x	1.39	x
	2025		68.9		6.9		89.3		96.3	1.40	x	1.40	x
	Total	$	735.6	$	818.2	$	232.7	$	1,050.9
	UK Distressed & Insolvency
	2009-2016	$	22.9	$	61.2	$	2.7	$	63.9	2.80	x	1.94	x
	2017		0.8		3.9		0.6		4.5	5.43	x	1.90	x
	2018		3.1		11.8		4.6		16.4	5.32	x	2.20	x
	2019		7.1		18.0		4.6		22.6	3.19	x	1.91	x
Vintage	2020		13.1		26.9		8.4		35.3	2.69	x	1.74	x
	2021		19.4		26.0		12.0		38.0	1.96	x	1.67	x
	2022		18.9		26.9		20.9		47.8	2.53	x	2.22	x
	2023		26.7		29.1		40.6		69.7	2.61	x	2.08	x
	2024		29.4		15.3		36.6		51.9	1.77	x	1.70	x
	2025		10.7		1.4		22.0		23.4	2.18	x	2.18	x
	Total	$	152.1	$	220.4	$	153.0	$	373.4

55

										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	$	187.3	$	0.1	$	187.4	1.98	x	1.67	x
	2017		26.3		48.5		0.2		48.7	1.85	x	1.53	x
	2018		40.9		85.4		0.8		86.1	2.10	x	1.80	x
	2019		34.7		68.5		1.5		69.9	2.02	x	1.72	x
Vintage	2020		29.3		52.2		2.2		54.5	1.86	x	1.60	x
	2021		23.7		35.2		5.2		40.4	1.71	x	1.62	x
	2022		18.5		19.6		8.1		27.7	1.50	x	1.47	x
	2023		38.8		26.4		29.5		55.9	1.44	x	1.35	x
	2024		61.9		18.4		72.8		91.2	1.47	x	1.38	x
	2025		92.7		12.2		120.1		132.3	1.43	x	1.43	x
	Total	$	461.6	$	553.7	$	240.4	$	794.1
	Canada Distressed(1)
	2008-2016	$	57.5	$	122.3	$	3.9	$	126.2	2.20	x	1.81	x
	2017		23.2		54.8		3.4		58.2	2.50	x	2.17	x
	2018		14.6		60.2		7.9		68.0	4.65	x	2.52	x
	2019		12.8		41.0		3.4		44.4	3.46	x	2.19	x
Vintage	2020		19.7		40.4		7.3		47.7	2.42	x	2.06	x
	2021		9.2		13.8		4.4		18.2	1.99	x	1.79	x
	2022		24.3		23.5		13.1		36.5	1.50	x	1.69	x
	2023		18.4		15.2		18.3		33.5	1.82	x	1.61	x
	2024		33.5		26.9		36.0		62.9	1.88	x	1.83	x
	2025		16.7		5.6		24.7		30.3	1.81	x	1.81	x
	Total	$	229.9	$	403.7	$	122.2	$	525.8
	Latin America Distressed
	2021	$	7.9	$	11.3	$	8.3	$	19.6	2.48	x	1.58	x
	2022		25.0		35.4		35.4		70.9	2.84	x	2.67	x
Vintage	2023		42.3		43.4		63.9		107.4	2.54	x	2.39	x
	2024		45.8		26.3		91.1		117.4	2.56	x	2.35	x
	2025		24.0		2.9		56.5		59.4	2.48	x	2.48	x
	Total	$	145.0	$	119.3	$	255.3	$	374.6
(1)​	Adjusted to include historical information from Canaccede Financial Group and its predecessor businesses.

56

										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	$	1,747.0	$	38.9	$	1,785.9	2.38	x	1.98	x
	2017		155.3		337.7		25.5		363.2	2.34	x	1.87	x
	2018		221.6		472.4		48.4		520.8	2.35	x	1.97	x
	2019		211.6		477.1		35.8		512.9	2.42	x	1.89	x
Vintage	2020		166.3		340.0		68.3		408.3	2.45	x	1.90	x
	2021		156.9		231.7		83.4		315.1	2.01	x	1.74	x
	2022		269.5		299.7		217.3		517.0	1.92	x	1.91	x
	2023		530.5		476.6		656.7		1,133.3	2.14	x	1.96	x
	2024		723.3		496.5		941.9		1,438.4	1.99	x	1.88	x
	2025		451.5		71.2		813.5		884.7	1.96	x	1.96	x
	Total	$	3,637.4	$	4,950.1	$	2,929.7	$	7,879.7

(1) Includes the 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) For our non-U.S. amounts, historical period exchange rates are presented at the respective exchange rate for each collection period.

(4) For our non-U.S. amounts, Total ERC is presented at the exchange rate as of September 30, 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.

(7) Adjusted to include historical information from Canaccede Financial Group and its predecessor businesses.

57

The following table illustrates collections from purchased receivables, total portfolio revenue for the nine months ended September 30, 2025 and investment in receivables, net as of September 30, 2025 and monthly EIR, by year of purchase:

RECEIVABLE PORTFOLIO FINANCIAL INFORMATION, BY YEAR OF PURCHASE⁽¹⁾ (in millions)

									As of
	Three Months Ended September 30, 2025								September 30, 2025
							Total
			Portfolio		Changes in		Portfolio		Investments in		Monthly
	Collections		Income		Recoveries		Revenue		Receivables, Net		EIR
US Distressed
ZBA(1)	$	0.3	$	0.3	$	—	$	0.3	$	—	0.0	%
2003 - 2019		8.2		7.6		(3.4)		4.2		40.0	6.1	%
2020		2.4		3.1		(1.3)		1.8		10.4	9.9	%
2021		2.9		2.6		(3.5)		(0.9)		25.6	3.2	%
2022		9.4		5.8		(4.6)		1.2		79.8	2.3	%
2023		36.7		21.6		(5.4)		16.2		277.6	2.5	%
2024		82.6		41.6		14.8		56.4		338.0	3.3	%
2025		22.1		16.7		6.8		23.5		242.1	2.6	%
Subtotal	$	164.6	$	99.3	$	3.4	$	102.7	$	1,013.5
US Insolvency
2003 - 2019		0.4		0.4		(1.1)		(0.7)		5.9	1.7	%
2020		0.4		0.2		(0.3)		(0.1)		4.7	1.3	%
2021		0.5		0.2		0.3		0.5		4.5	1.6	%
2022		2.2		0.5		(0.1)		0.4		10.5	1.3	%
2023		5.0		1.4		(0.5)		0.9		35.4	1.2	%
2024		6.1		2.1		—		2.1		54.9	1.2	%
2025		3.8		2.1		0.2		2.3		67.2	1.1	%
Subtotal	$	18.4	$	6.9	$	(1.5)	$	5.4	$	183.1
UK Distressed & Insolvency
2003 - 2019	$	0.7	$	0.6	$	—	$	0.6	$	4.6	4.4	%
2020		0.6		0.5		0.3		0.8		2.6	6.5	%
2021		1.2		0.7		0.6		1.3		7.1	3.0	%
2022		1.7		1.2		(0.4)		0.8		11.2	3.6	%
2023		3.0		2.6		(1.6)		1.0		23.6	3.4	%
2024		2.8		1.8		(0.4)		1.4		24.5	2.3	%
2025		1.0		0.9		0.1		1.0		11.1	3.3	%
Subtotal	$	11.0	$	8.3	$	(1.4)	$	6.9	$	84.7
Canada Distressed
ZBA(2)	$	0.3	$	0.3	$	—	$	0.3	$	—	0.0	%
2020		1.6		1.4		0.1		1.5		3.4	12.7	%
2021		0.3		0.2		—		0.2		1.7	4.3	%
2022		0.7		0.6		(0.9)		(0.3)		7.0	2.8	%
2023		0.8		0.8		(0.5)		0.3		10.7	2.6	%
2024		3.2		1.8		(0.2)		1.6		21.2	2.6	%
2025		2.9		0.9		0.5		1.4		14.5	2.3	%
Subtotal	$	9.8	$	6.0	$	(1.0)	$	5.0	$	58.5
Canada Insolvency
ZBA	$	0.0	$	0.0	$	—	$	0.0	$	—	0.0	%
2020		1.7		0.4		1.0		1.4		3.2	3.4	%
2021		1.6		0.4		0.2		0.6		4.3	1.9	%
2022		1.5		0.4		0.1		0.5		6.7	1.5	%
2023		4.3		1.0		0.3		1.3		24.5	1.2	%
2024		5.2		2.0		0.8		2.8		57.6	1.2	%
2025		4.9		2.6		1.1		3.7		89.6	1.2	%
Subtotal	$	19.2	$	6.8	$	3.5	$	10.3	$	185.9
Latin America
2021		0.4		0.3		(0.1)		0.2		3.8	3.0	%
2022		2.2		2.0		(0.2)		1.8		11.1	5.8	%
2023		3.7		3.4		(1.5)		1.9		32.9	3.0	%
2024		5.1		4.1		(0.4)		3.7		42.5	2.5	%
2025		2.5		2.1		(0.3)		1.8		24.8	3.1	%
Subtotal	$	13.9	$	11.9	$	(2.5)	$	9.4	$	115.1
Grand Total	$	236.8	$	139.2	$	0.5	$	139.7	$	1,640.8

58

									As of
	Nine Months Ended September 30, 2025								September 30, 2025
							Total
			Portfolio		Changes in		Portfolio		Investments in		Monthly
	Collections		Income		Recoveries		Revenue		Receivables, Net		EIR
US Distressed
ZBA(1)	$	1.1	$	1.1	$	—	$	1.1	$	—	0.0	%
2003 - 2019		28.3		26.0		(13.1)		12.9		40.0	6.1	%
2020		8.9		10.3		(4.7)		5.6		10.4	9.9	%
2021		10.5		8.7		(7.4)		1.3		25.6	3.2	%
2022		32.6		19.1		(9.7)		9.4		79.8	2.3	%
2023		115.2		69.6		(9.8)		59.8		277.6	2.5	%
2024		309.1		137.7		40.5		178.2		338.0	3.3	%
2025		41.9		31.7		13.8		45.5		242.1	2.6	%
Subtotal	$	547.6	$	304.2	$	9.6	$	313.8	$	1,013.5
US Insolvency
2003 - 2019		1.8		1.2		(3.2)		(2.0)		5.9	1.7	%
2020		2.3		0.7		(1.5)		(0.8)		4.7	1.3	%
2021		1.8		0.7		0.1		0.8		4.5	1.6	%
2022		6.9		1.6		(0.6)		1.0		10.5	1.3	%
2023		15.3		4.5		(1.1)		3.4		35.4	1.2	%
2024		17.0		6.7		(1.9)		4.8		54.9	1.2	%
2025		6.9		4.0		1.2		5.2		67.2	1.1	%
Subtotal	$	52.0	$	19.4	$	(7.0)	$	12.4	$	183.1
UK Distressed & Insolvency
2003 - 2019	$	2.4	$	1.9		(0.4)		1.5		4.6	4.4	%
2020		1.8		1.5		0.2		1.7		2.6	6.5	%
2021		3.5		1.9		1.8		3.7		7.1	3.0	%
2022		5.1		3.9		(1.9)		2.0		11.2	3.6	%
2023		9.5		7.8		(3.6)		4.2		23.6	3.4	%
2024		8.2		5.4		(1.4)		4.0		24.5	2.3	%
2025		1.4		1.5		0.2		1.7		11.1	3.3	%
Subtotal	$	31.9	$	23.9	$	(5.1)	$	18.8	$	84.7
Canada Distressed
ZBA(2)	$	0.9	$	0.9	$	—	$	0.9	$	—	0.0	%
2020		5.0		4.2		0.2		4.4		3.4	12.7	%
2021		1.0		0.8		—		0.8		1.7	4.3	%
2022		3.5		2.0		(0.4)		1.6		7.0	2.8	%
2023		3.1		2.6		(1.5)		1.1		10.7	2.6	%
2024		11.3		5.7		0.1		5.8		21.2	2.6	%
2025		5.6		1.9		1.4		3.3		14.5	2.3	%
Subtotal	$	30.4	$	18.1	$	(0.2)	$	17.9	$	58.5
Canada Insolvency
ZBA	$	0.2	$	0.2	$	—	$	0.2	$	—	0.0	%
2020		6.3		1.2		5.1		6.3		3.2	3.4	%
2021		5.2		1.2		0.3		1.5		4.3	1.9	%
2022		5.2		1.2		0.6		1.8		6.7	1.5	%
2023		12.4		3.2		1.0		4.2		24.5	1.2	%
2024		13.7		6.2		3.4		9.6		57.6	1.2	%
2025		12.2		5.7		1.9		7.6		89.6	1.2	%
Subtotal	$	55.2	$	18.9	$	12.3	$	31.2	$	185.9
Latin America
2021		1.2		1.0		(0.2)		0.8		3.8	3.0	%
2022		5.9		5.8		(0.8)		5.0		11.1	5.8	%
2023		10.4		10.5		(2.6)		7.9		32.9	3.0	%
2024		15.9		12.0		0.1		12.1		42.5	2.5	%
2025		2.9		3.0		(0.4)		2.6		24.8	3.1	%
Subtotal	$	36.3	$	32.3	$	(3.9)	$	28.4	$	115.1
Grand Total	$	753.4	$	416.8	$	5.7	$	422.5	$	1,640.8

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.

59

The following table illustrates historical collections, by year, on our portfolios.

COLLECTIONS, BY YEAR, BY YEAR OF PURCHASE  Excludes Resale as Noted at Bottom

(in millions)

		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	$	8.0	$	1,010.2
	2017		55.3		—		16.2		30.5		27.0		28.5		25.2		16.3		11.2		8.2		5.0		168.0
	2018		76.2		—		—		21.6		45.9		45.4		41.0		24.7		14.2		10.3		5.2		208.4
	2019		94.8		—		—		—		26.8		74.8		62.3		44.5		28.6		18.3		10.1		265.4
Vintage	2020		74.1		—		—		—		—		26.5		60.9		37.2		26.0		18.2		9.0		177.8
	2021		73.1		—		—		—		—		—		23.1		37.8		24.8		18.3		10.5		114.7
	2022		142.1		—		—		—		—		—		—		16.5		55.1		49.6		32.7		153.9
	2023		337.6		—		—		—		—		—		—		—		48.4		147.7		115.2		311.4
	2024		481.5		—		—		—		—		—		—		—		—		73.3		309.7		383.0
	2025		238.5		—		—		—		—		—		—		—		—		—		42.1		42.1
	Total	$	1,913.2	$	679.3	$	97.0	$	118.9	$	151.7	$	216.2	$	244.8	$	198.4	$	223.9	$	357.1	$	547.5	$	2,834.8
	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	$	0.2	$	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		0.4		106.8
	2019		62.2		—		—		—		7.0		23.2		19.8		16.2		11.0		6.1		1.0		84.3
Vintage	2020		30.1		—		—		—		—		3.5		10.5		10.8		9.0		6.7		2.3		42.8
	2021		23.7		—		—		—		—		—		8.9		10.1		6.3		3.5		1.8		30.7
	2022		40.7		—		—		—		—		—		—		5.4		16.4		11.8		6.9		40.5
	2023		66.7		—		—		—		—		—		—		—		12.7		23.2		15.3		51.2
	2024		71.1		—		—		—		—		—		—		—		—		9.6		17.0		26.6
	2025		68.9		—		—		—