JCAP

JCAP is a debt-recovery specialist that purchases charged-off consumer receivables at deep discounts (FY2025 deployments of $832M acquired $13.03B of face value — an average 6.4% of face) and collects them at scale across four geographic segments. The fundamentals are exceptional: FY2025 revenue grew 41.5% to $613M, net income jumped 45.8% to $188M, and operating margin expanded to 51.6% with 39.5% ROE. This is the third straight year of accelerating growth (revenue $323M → $433M → $613M; net income $112M → $129M → $188M), and operating cash flow surged 59.8% to $269M, validating that GAAP earnings are converting to cash.

The MD&A reveals the engine: Estimated Remaining Collections — the undiscounted future cash claim — grew 23.1% to $3.38B, with the U.S. segment up 19.7% to $2.53B (boosted by the Conn's and Bluestem portfolio purchases of $139.9M and $295.6M of ERC respectively) and Canada up a striking 47.4%. ERC is roughly 3.4x annual revenue and ~7.1x net income, so the cash-collection runway is already locked in. Deployments grew 15% YoY, meaning the company is restocking the inventory that fuels future revenue.