David Schaff's questions to Jefferson Capital, Inc. / DE (JCAP) leadership • Q2 2025
Question
David Schaff of Citizens Capital Markets asked for commentary on the pipeline of new potential sellers, particularly in the credit card space. He also questioned how the increasing share of insolvency portfolios in the U.S. and Canada might impact the company's consolidated yields and cash efficiency ratio.
Answer
CEO David Burton explained that while the company continually cultivates new clients, no new major credit card issuers have come to market, though he speculated the Capital One/Discover merger could change that. He clarified that as the insolvency mix grows, it would positively impact the cash efficiency ratio over time. CFO Christo Riloff added that the net return profile is similar between insolvency and distressed portfolios, as the lower purchase price for insolvency assets offsets the different cost structure.