Earnings Per Share

3 Months Ended

Mar. 31, 2026

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 months ended March 31, 2025. 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 months ended March 31, 2026 and 2025 are (in thousands, except per share and footnote amounts):


		For the Three Months Ended March 31,
	* *	2026		* *	2025
Basic EPS
Numerator
Net income		$	37,634		$	64,227
Less: Earnings allocated to participating securities			3,838			—
Net income available to common stockholders			33,797			64,227

Denominator
Weighted average shares outstanding			55,589			—
Basic EPS		$	0.61		$	—

Diluted EPS
Numerator
Net income available to common stockholders		$	33,797		$	64,227
Reallocation of earnings from participating securities			—			—
Net income available to common stockholders for diluted EPS		$	33,797		$	64,227

Denominator
Weighted average shares outstanding			55,589			—
Weighted average effect of dilutive securities:
Options⁽¹⁾			3			—
Nonvested restricted stock			—			—
Number of shares used for diluted EPS computation			55,592			—
Diluted EPS		$	0.61		$	—

(1)

Options outstanding of 484,322 at March 31, 2026 were determined to be antidilutive and excluded from the dilutive EPS computation.