PRA Group Inc【PRAA】株式ニュース

PRA Group Reports First Quarter 2026 ResultsMay 7, 2026 4:05 PM
PR Newswire (US) Strong Start to the Year with 11% Cash Collections Growth and Net Income of $28 MillionContinued Momentum in U.S. Business with Strong Results in Europe On Track with PRA 3.0 Strategy to Drive Enhanced ResultsNORFOLK, Va., May 7, 2026 /PRNewswire/ -- PRA Group, Inc. (Nasdaq: PRAA) (the "Company"), a global leader in acquiring and collecting nonperforming loans, today reported its financial results for the first quarter of 2026 ("Q1 2026"). Q1 2026 Highlights (vs. Q1 2025)Total cash collections of $551.9 million, up 11.0%.Cash efficiency ratio1 of 61.8%.Net income attributable to PRA Group, Inc. of $28.2 million, or diluted earnings per share of $0.73.Adjusted EBITDA2 for the 12 months ended March 31, 2026 of $1.3 billion, up 13.9%, which exceeded cash collections growth.Total portfolio purchases of $220.9 million, in line with expectations, as we continue to focus on driving higher returns and net income while balancing investments with leverage.Estimated remaining collections (ERC)3 of $8.5 billion, up 9.5%.1.Calculated by dividing cash receipts less operating expenses by cash receipts. Cash receipts refers to cash collections on the Company's nonperforming loan portfolios, fees and revenue recognized from the Company's class action claims recovery services.2.A reconciliation of net income attributable to PRA Group, Inc. to Adjusted EBITDA can be found at the end of this press release.3.Refers to the sum of all future projected cash collections on the Company's nonperforming loan portfolios."We had a strong start to 2026, building on the success we achieved last year with continued improvement in our key financial and operational metrics," said Martin Sjolund, president and chief executive officer. "Cash collections grew 11% from the prior-year period, driven by the continued momentum of our operational initiatives, especially in the U.S. legal collections channel, which was supplemented by strong performance in Europe. Our cash efficiency ratio improved to 62%, even with the increase in legal collection costs to support future collections growth. Net income increased to $28 million and Adjusted EBITDA for the last twelve months was up 14%, growing faster than cash collections, as we continued to gain operating leverage.""Overall, Q1 was another solid quarter, with strong execution across several operational initiatives and improved financial results. Looking ahead to the rest of the year, we plan to continue making progress on our new PRA 3.0 strategy, including modernizing our technology platforms and innovating with our new mobile app in the UK and global AI initiatives. We believe we are in a strong position to continue delivering enhanced results and value for our shareholders, as we transform PRA into a high-performing, technology-enabled global allocator of capital."Cash Collections and Revenues
The following table presents cash collections by quarter and by source, as reported and on a constant currency-adjusted basis:

Cash Collection Source
2026
2025($ in thousands)
Q1
Q4
Q3
Q2
Q1U.S. Core
$     268,409
$     249,322
$     258,277
$     253,856
$     240,467U.S. Insolvency
20,141
20,223
21,131
21,175
20,589Europe Core
192,019
188,277
185,910
185,652
164,371Europe Insolvency
20,547
19,166
22,658
24,609
21,205Other markets (1)
50,812
54,670
54,268
50,996
50,804Total cash collections
$     551,928
$     531,658
$     542,244
$     536,288
$     497,436

Cash Collection Source -

Constant Currency-Adjusted
2026

2025($ in thousands)
Q1

Q1U.S. Core
$     268,409

$     240,467U.S. Insolvency
20,141

20,589Europe Core
192,019

180,408Europe Insolvency
20,547

22,720Other markets (1)
50,812

55,931Total cash collections
$     551,928

$     520,115

1.Reflects total cash collections in South America, Canada and Australia.Total cash collections in Q1 2026 increased 11.0% to $551.9 million, compared to $497.4 million in the first quarter of 2025 ("Q1 2025"), driven by the continued increase in cash generation from our investments in the U.S. legal collections channel, as well as strong performance in our European business.

Three Months Ended March 31,($ in thousands)
2026
2025Portfolio income
$       269,579
$       240,958Recoveries collected in excess of forecast
22,698
16,500Changes in expected future recoveries
21,188
11,422Changes in expected recoveries
43,886
27,922Total portfolio revenue
$       313,465
$       268,880

Portfolio income in Q1 2026 increased 11.9% to $269.6 million, compared to $241.0 million in Q1 2025, driven by strong recent purchases at improved returns.Changes in expected recoveries in Q1 2026 increased to $43.9 million, compared to $27.9 million in Q1 2025.Total portfolio revenue in Q1 2026 increased 16.6% to $313.5 million, compared to $268.9 million in Q1 2025.Expenses Operating expenses in Q1 2026 increased $16.2 million to $211.3 million, compared to $195.0 million in Q1 2025, driven primarily by a $15.1 million increase in legal collection costs to support future cash collections growth.Compensation and benefits expense decreased $2.6 million, primarily due to our efforts to right-size our agent headcount, leverage more external collections resources (including offshore agents), and eliminate more than 115 corporate roles in the fourth quarter of 2025.Communication expense decreased $1.5 million, due to the use of more cost-efficient collection strategies.Interest expense, net in Q1 2026 increased to $63.5 million, compared to $61.0 million in Q1 2025, primarily reflecting an increase in debt balances.The effective tax rate for the quarter was 21.6%.Portfolio Purchases

Portfolio Purchase Source
2026
2025($ in thousands)
Q1
Q4
Q3
Q2
Q1U.S. Core
$    105,469
$      102,254
$      119,672
$      160,193
$      148,903U.S. Insolvency
13,043
10,088
14,809
22,134
12,059Europe Core
86,715
152,375
95,239
142,465
108,390Europe Insolvency
4,837
4,758
5,934
4,757
4,856Other markets (1)
10,786
45,326
19,838
16,956
17,494Total portfolio purchases
$    220,850
$      314,801
$      255,492
$      346,505
$      291,702

1.Reflects total portfolio purchases in South America, Canada and Australia.2.Contractual agreements with sellers of nonperforming loans that allow for the purchase of nonperforming loan portfolios at pre-established prices. These amounts represent our estimated forward flow purchases over the next 12 months under the agreements in place based on projections and other factors, including sellers' estimates of future forward flow sales, and are dependent on actual delivery by the sellers and, in some cases, the impact of foreign exchange rate fluctuations. Accordingly, amounts purchased under these agreements may vary significantly.The Company purchased $220.9 million in portfolios of nonperforming loans in Q1 2026.At the end of Q1 2026, the Company had in place estimated forward flow commitments2 of $321.8 million over the next 12 months, comprised of $172.6 million in Europe, $132.2 million in the U.S., and $17.0 million in other markets.Credit AvailabilityTotal availability under the Company's credit facilities as of March 31, 2026 was $996.0 million, comprised of $714.3 million based on current ERC and subject to debt covenants, and $281.7 million of additional availability subject to borrowing base and debt covenants, including advance rates.Conference Call Information
PRA Group, Inc. will hold a conference call today at 5:00 p.m. ET to discuss its financial and operational results. To listen to a webcast of the call and view the accompanying slides, visit https://ir.pragroup.com/events-and-presentations. To listen by phone, call 646-357-8785 in the U.S. or 1-800-836-8184 outside the U.S. and ask for the PRA Group conference call. To listen to a replay of the call, either visit the same website until May 7, 2027, or call 646-517-4150 in the U.S. or 1-888-660-6345 outside the U.S. and use access code 86103# until May 14, 2026. About PRA Group, Inc.
As a global leader in acquiring and collecting nonperforming loan portfolios, PRA Group, Inc. returns capital to banks and other creditors to help expand financial services for consumers in the Americas, Europe and Australia. With thousands of employees worldwide, PRA Group, Inc. companies collaborate with customers to help them resolve their debt. For more information, please visit www.pragroup.com. About Forward Looking Statements
Statements made herein that are not historical in nature, including PRA Group, Inc.'s or its management's intentions, hopes, beliefs, expectations, representations, projections, plans or predictions of the future, are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended.The forward-looking statements in this press release are based upon management's current beliefs, estimates, assumptions and expectations of PRA Group, Inc.'s future operations and financial and economic performance, taking into account currently available information. These statements are not statements of historical fact or guarantees of future performance, and there can be no assurance that anticipated events will transpire or that the Company's expectations will prove to be correct. Forward-looking statements involve risks and uncertainties, some of which are not currently known to PRA Group, Inc. Actual events or results may differ materially from those expressed or implied in any such forward-looking statements as a result of various factors, including the risk factors and other risks that are described from time to time in PRA Group, Inc.'s filings with the Securities and Exchange Commission, including PRA Group, Inc.'s annual reports on Form 10-K, its quarterly reports on Form 10-Q and its current reports on Form 8-K, which are available through PRA Group, Inc.'s website and contain a detailed discussion of PRA Group, Inc.'s business, including risks and uncertainties that may affect future results.Due to such uncertainties and risks, you are cautioned not to place undue reliance on such forward-looking statements, which speak only as of today. Information in this press release may be superseded by more recent information or statements, which may be disclosed in later press releases, subsequent filings with the Securities and Exchange Commission or otherwise. Except as required by law, PRA Group, Inc. assumes no obligation to publicly update or revise its forward-looking statements contained herein to reflect any change in PRA Group, Inc.'s expectations with regard thereto or to reflect any change in events, conditions or circumstances on which any such forward-looking statements are based, in whole or in part.PRA Group, Inc.Unaudited Consolidated Income Statements(Amounts in thousands, except per share amounts)
Three Months Ended
March 31,
2026
2025Revenues

Portfolio income$      269,579
$      240,958Changes in expected recoveries43,886
27,922Total portfolio revenue313,465
268,880Other revenue1,068
739Total revenues314,533
269,619Operating expenses

Compensation and benefits70,738
73,323Legal collection costs48,458
33,394Legal collection fees17,071
15,230Agency fees24,581
21,368Professional and outside services20,884
21,103Communication9,019
10,477Rent and occupancy3,258
3,480Depreciation, amortization and impairment of long-lived assets1,708
3,769Other operating expenses15,562
12,898Total operating expenses211,279
195,042Income from operations103,254
74,577Other income/(expense)

Interest expense, net(63,518)
(60,970)Foreign exchange gain/(loss), net1,054
(51)Other(254)
(180)Income before income taxes40,536
13,376Income tax expense8,764
4,312Net income31,772
9,064Net income attributable to noncontrolling interests   3,562
5,405Net income attributable to PRA Group, Inc.$        28,210
$         3,659Net income per common share attributable to PRA Group, Inc.

Basic$           0.74
$          0.09Diluted$           0.73
$          0.09Weighted average number of shares outstanding

Basic38,368
39,549Diluted38,511
39,688 PRA Group, Inc.Consolidated Balance Sheets(Amounts in thousands)
(unaudited)

March 31,
2026
December 31,
2025ASSETS

Cash and cash equivalents$          124,778
$          104,409Investments143,358
66,628Finance receivables, net4,637,094
4,688,024Income taxes receivable15,700
17,702Deferred tax assets, net70,914
76,955Right-of-use assets28,715
29,206Property and equipment, net24,567
24,886Goodwill26,871
26,871Prepaid expenses and other assets134,833
68,641Total assets$        5,206,830
$        5,103,322LIABILITIES AND EQUITY

Liabilities

Accrued expenses and accounts payable$          100,483
$          131,812Income taxes payable30,083
29,845Deferred tax liabilities, net18,733
17,064Lease liabilities31,595
32,160Interest-bearing deposits78,740
106,148Borrowings3,779,167
3,697,338Other liabilities99,475
48,990Total liabilities4,138,276
4,063,357Equity

Preferred stock, $0.01 par value, 2,000 shares authorized, no shares issued and outstanding—
—Common stock, $0.01par value, 100,000 shares authorized, 38,141 shares issued and
outstanding as of March 31, 2026; 100,000 shares authorized, 38,453 shares issued and
outstanding as of December 31, 2025381
385Additional paid-in capital3,289
11,474Retained earnings1,283,217
1,255,007Accumulated other comprehensive loss(284,599)
(287,015)Total stockholders' equity - PRA Group, Inc.1,002,288
979,851Noncontrolling interests66,266
60,114Total equity1,068,554
1,039,965Total liabilities and equity$        5,206,830
$        5,103,322 Purchase Price Multiplesas of March 31, 2026(in thousands, except percentages)Purchase PeriodPurchase Price (1)(2)Total Estimated
Collections (3)Estimated
Remaining
Collections (4)Current Purchase
Price MultipleOriginal Purchase
Price MultipleU.S. Core

1996-2015$           2,736,875$        7,505,108$           94,785274 %224 %2016400,545819,61932,606205 %195 %2017511,9021,168,72168,438228 %193 %2018604,6691,373,59893,421227 %199 %2019432,2221,017,20670,674235 %209 %2020415,384940,62888,849226 %215 %2021339,885603,675118,686178 %191 %2022275,433435,742140,794158 %164 %2023506,319947,969447,691187 %191 %2024727,6721,679,1701,085,766231 %211 %2025531,0211,144,614975,398216 %216 %2026105,469212,526209,118202 %202 %Subtotal7,587,39617,848,5763,426,226

U.S. Insolvency

1996-20151,472,3852,806,689—191 %154 %201667,45485,66921127 %124 %2017275,257359,605182131 %125 %201897,879137,30259140 %127 %2019120,845164,398174136 %128 %202062,13090,3001,584145 %136 %202154,89874,1365,237135 %136 %202233,44247,86011,718143 %139 %202361,24280,32138,358131 %136 %202468,16899,36458,508146 %149 %202559,09193,16884,236158 %160 %202613,04320,89120,790160 %160 %Subtotal2,385,8344,059,703220,867

Total U.S.9,973,23021,908,2793,647,093

Europe Core

2012-20151,225,8933,516,570478,195287 %190 %2016333,090601,998142,105181 %167 %2017252,174366,50177,563145 %144 %2018341,775574,229151,942168 %148 %2019518,610888,852272,541171 %152 %2020324,119609,550212,981188 %172 %2021412,411732,470338,322178 %170 %2022359,447600,333370,631167 %162 %2023410,593709,805464,760173 %169 %2024451,786821,118685,317182 %180 %2025512,533951,214843,307186 %185 %202685,057157,440154,812185 %185 %Subtotal5,227,48810,530,0804,192,476

Europe Insolvency

2014-2015 29,84949,058—164 %135 %201639,33858,616440149 %130 %201739,23553,074402135 %128 %201844,90853,386543119 %123 %201977,218114,4193,630148 %130 %2020105,440162,0325,399154 %129 %202153,23081,3028,945153 %134 %202244,60466,96220,325150 %137 %202346,55867,06032,053144 %138 %202443,45964,12838,821148 %147 %202520,76030,32926,435146 %145 %20264,7527,3467,301155 %155 %Subtotal549,351807,712144,294

Total Europe5,776,83911,337,7924,336,770

Other markets (5)951,0942,229,871564,685234 %204 %Total PRA Group$         16,701,163$       35,475,942$        8,548,548

(1)Includes the acquisition date finance receivables portfolios that were acquired through our business acquisitions.(2)Non-U.S. amounts, including purchase price adjustments that occur throughout the life of a portfolio, are presented at the exchange rate at the end of the respective period of purchase.(3)Non-U.S. amounts are presented at the period-end exchange rate for the respective period of purchase.(4)Non-U.S. amounts are presented at the March 31, 2026 exchange rate.(5)Reflects all vintages in South America, Canada and Australia. Portfolio Financial Information (1)(in thousands)
March 31, 2026 (year-to-date)
As of March 31, 2026Purchase PeriodCash
Collections (2)Portfolio
Income (2)Changes in
Expected
Recoveries (2)Total Portfolio
Revenue (2)
Net Finance Receivables (3)U.S. Core

1996-2015   $         10,384$          5,487$           2,695$          8,182
$                    31,22720162,5831,544(84)1,460
13,78620175,2573,270(775)2,495
27,49420188,2814,151(418)3,733
45,38220196,6313,457(608)2,849
33,98320209,0564,407(982)3,425
44,546202110,3725,050(486)4,564
59,591202211,3814,6363094,945
82,701202339,17718,207(5,753)12,454
241,850202498,75447,23914,27861,517
574,230202563,12543,364(2,313)41,051
500,32220263,4082,7961402,936
104,934Subtotal268,409143,6086,003149,611
1,760,046U.S. Insolvency

1996-2015235—234234
—20163912627
19201718910112122
16020181342100102
5720194306316322
16820205445286138
1,40120212,231191(97)94
4,94320222,184362(45)317
10,55720234,5901,054(33)1,021
33,21520245,7092,188(318)1,870
45,04220253,7532,800(857)1,943
57,786202610314341184
13,117Subtotal20,1416,809(435)6,374
166,465Total U.S.288,550150,4175,568155,985
1,926,511Europe Core

2012-201529,77416,8727,94824,820
141,51620166,7732,7585,1297,887
80,99820173,8121,2905021,792
51,38320187,9842,9103,0025,912
95,137201914,1814,7581,5066,264
183,08820209,9184,1541,2755,429
128,550202114,2166,1461,1827,328
204,281202215,9336,3902,0688,458
233,121202321,3088,8624,28213,144
277,845202429,86913,6723,36817,040
385,315202535,58117,41124017,651
458,72220262,6709377231,660
83,953Subtotal192,01986,16031,225117,385
2,323,909Europe Insolvency

2014-201598—9898
—201612418102120
11520171768230238
24220182271093103
424201980988(30)58
3,00320202,039150(11)139
5,07520213,6822631,2361,499
8,21820223,6595421,1381,680
17,62220234,2228637511,614
27,02020244,0031,3071941,501
29,81820251,463700229929
19,481202645353368
4,747Subtotal20,5473,9844,0638,047
115,765Total Europe212,56690,14435,288125,432
2,439,674Other markets (4)50,81229,0183,03032,048
270,909Total PRA Group$        551,928$        269,579$         43,886$        313,465
$                 4,637,094

(1)Includes the nonperforming loan portfolios that were acquired through our business acquisitions.(2)Non-U.S. amounts are presented using the average exchange rates during the current reporting period. (3)Non-U.S. amounts are presented at the March 31, 2026 exchange rate.(4)Reflects all vintages in South America, Canada and Australia. Cash Collections by Year, By Year of Purchase (1)as of March 31, 2026

    (in millions)

Purchase
PeriodPurchase
Price (2)(3)1996-201520162017201820192020202120222023202420252026TotalU.S. Core

1996-2015$ 2,736.9$ 5,186.4$ 673.8$ 479.4$ 337.7$ 230.9$ 149.3$  98.2$  67.1$  51.7$  64.7$  53.6$  10.4$ 7,403.22016400.5—86.1195.3160.1116.688.759.929.117.618.112.92.6787.02017511.9——94.3264.4247.1185.6124.873.141.637.526.65.31100.32018604.7———106.3320.2304.7214.8131.683.268.142.98.31280.12019432.2————93.4282.2237.4141.786.161.837.36.6946.52020415.4—————127.4274.7185.4121.383.650.49.1851.92021339.9——————73.8149.9115.382.852.810.4485.02022275.4———————34.9102.487.858.511.4295.02023506.3————————63.5211.8185.939.2500.42024727.7—————————119.8374.998.8593.52025531.0——————————106.163.1169.22026105.5———————————3.23.2Subtotal7,587.45,186.4759.9769.0868.51,008.21,137.91,083.6812.8682.7836.01,001.9268.414,415.3U.S. Insolvency

1996-20151,472.42,290.4230.4142.678.639.113.64.52.91.81.41.00.22,806.5201667.5—10.118.918.216.413.06.61.30.60.40.1—85.62017275.3——49.197.380.958.844.020.84.92.51.00.2359.5201897.9———6.727.430.531.624.612.72.51.00.1137.12019120.8————13.430.937.936.828.014.22.70.4164.3202062.1—————6.516.120.419.517.08.70.588.7202154.9——————4.517.717.415.211.82.268.8202233.4———————3.29.211.110.52.236.2202361.2————————4.514.818.04.641.9202468.2—————————12.123.15.740.9202559.1——————————5.23.89.0202613.0———————————0.20.2Subtotal2,385.82,290.4240.5210.6200.8177.2153.3145.2127.798.691.283.120.13,838.7Total U.S.9,973.27,476.81,000.4979.61,069.31,185.41,291.21,228.8940.5781.3927.21,085.0288.518,254.0Europe Core

2012-20151,225.8538.4350.2310.3290.5241.4206.0202.4164.3142.4132.1126.929.82,734.72016333.1—40.478.972.658.048.346.736.929.727.427.16.8472.82017252.2——17.956.044.136.134.825.220.217.915.73.8271.72018341.8———24.388.771.369.150.741.637.134.38.0425.12019518.6————48.0125.7121.489.875.168.261.714.2604.12020324.1—————32.391.769.056.150.145.19.9354.22021412.4——————48.589.973.066.659.714.2351.92022359.4———————33.983.874.767.815.9276.12023410.6————————50.2103.193.221.3267.82024451.9—————————46.3135.629.9211.82025512.5——————————57.135.692.7202685.1———————————2.62.6Subtotal5,227.5538.4390.6407.1443.4480.2519.7614.6559.7572.1623.5724.2192.06,065.5Europe Insolvency

2014-201529.97.38.38.27.45.43.71.90.80.60.40.30.144.4201639.3—6.212.712.910.77.96.02.71.30.80.60.161.9201739.2——1.27.99.29.89.46.53.81.51.00.250.5201844.9———0.68.410.311.79.87.23.51.40.253.1201977.2————5.021.123.921.017.512.96.10.8108.32020105.4—————6.034.634.129.725.515.52.0147.4202153.2——————5.514.414.715.414.63.768.3202244.6———————4.512.415.215.23.751.0202346.7————————4.212.715.74.236.8202443.4—————————9.515.24.028.7202520.8——————————1.91.53.420264.8—————————————Subtotal549.47.314.522.128.838.758.893.093.891.497.487.520.5653.8Total Europe5,776.9545.7405.1429.2472.2518.9578.5707.6653.5663.5720.9811.7212.56,719.3Other markets (3)951.133.986.5103.983.7137.0135.9125.4135.0215.9220.5210.750.91,539.3Total PRA Group$ 16,701.2$ 8,056.4$ 1,492.0$ 1,512.7$ 1,625.2$ 1,841.3$ 2,005.6$ 2,061.8$ 1,729.0$ 1,660.7$ 1,868.6$ 2,107.4$ 551.9$ 26,512.6

(1)Non-U.S. amounts are presented at the average exchange rates during the cash collections period.(2)Includes the acquisition date finance receivables portfolios acquired through our business acquisitions.(3)Non-U.S. amounts, including purchase price adjustments that occur throughout the life of a portfolio, are presented at the exchange rate at the end of the respective period of purchase.(4)Reflects all vintages in South America, Canada and Australia.Use of Non-GAAP Financial MeasuresThe Company reports its financial results in accordance with U.S. generally accepted accounting principles (GAAP). However, management uses certain non-GAAP financial measures, including the non-GAAP financial measures referred to below, internally to evaluate the Company's performance and to set performance goals. Included below are reconciliations of the most directly comparable financial measures calculated in accordance with GAAP to the corresponding non-GAAP financial measure. The non-GAAP financial measures included below should not be considered as an alternative to the most directly comparable financial measure determined in accordance with GAAP. The calculation of the non-GAAP financial measures included below may not be comparable to the calculation of similarly titled financial measures reported by other companies.Adjusted EBITDAAdjusted EBITDA is calculated as net income (or loss) attributable to PRA Group, Inc. plus income tax expense (or less income tax benefit); less foreign exchange gain (or plus foreign exchange loss); plus interest expense, net; plus other expense; plus depreciation and amortization; plus impairment of real estate; plus goodwill impairment; plus net income attributable to noncontrolling interests; less gain on sale of equity method investment; and plus recoveries collected and applied to Finance receivables, net less Changes in expected recoveries.The Company presents Adjusted EBITDA because the Company considers it an important supplemental measure of its operational and financial performance. Management believes Adjusted EBITDA helps provide enhanced period-to-period comparability of the Company's operational and financial performance and is useful to investors as other companies in the industry report similar financial measures.Set forth below is a reconciliation of net loss attributable to PRA Group, Inc. to Adjusted EBITDA for the last twelve months (LTM) ended March 31, 2026 and for the year ended December 31, 2025.
LTMYear EndedAdjusted EBITDA Reconciliation ($ in thousands)March 31, 2026December 31, 2025Net loss attributable to PRA Group, Inc.$               (280,591)$               (305,142)Adjustments:

Income tax expense51,18746,735Foreign exchange gain(1,860)(755)Interest expense, net254,336251,788Other expense410336Depreciation and amortization7,8059,035Impairment of real estate5731,404Goodwill impairment412,611412,611Net income attributable to noncontrolling interests13,32515,168Gain on sale of equity method investment(38,403)(38,403)Recoveries collected and applied to Finance receivables, net less
Changes in expected recoveries    929,206922,697Adjusted EBITDA$              1,348,599$              1,315,474ROATEThe Company uses return on average tangible equity ("ROATE") to monitor and evaluate operating performance relative to the Company's equity. Management believes ROATE is a useful financial measure for investors in evaluating the effective use of equity, and is an important component of its long-term shareholder return. Average tangible equity is defined as average Total stockholders' equity - PRA Group, Inc. less average goodwill and average other intangible assets. ROATE is calculated by dividing Net income attributable to PRA Group, Inc. by Average tangible equity. Return on equity ("ROE") is calculated by by dividing Net income attributable to PRA Group, Inc. by average Total stockholders' equity - PRA Group, Inc.The following table provides a reconciliation of Total stockholders' equity - PRA Group, Inc. as reported in accordance with GAAP to Average tangible equity and provides the Company's ROE and ROATE for the periods indicated (in thousands, except for ratio data):

Average Tangible Equity
Reconciliation (1)

Balance as of Period End
First Quarter

March 31, 2026
March 31, 2025
2026
2025Total stockholders' equity - PRA Group, Inc.
$    1,002,288
$    1,219,108
$  991,068
$ 1,177,070Goodwill
26,871
420,715
26,871
408,536Other intangible assets
1,344
1,488
1,390
1,471Average tangible equity

$  962,807
$  767,063

ROE and ROATE (2)

First Quarter

2026
2025Net income attributable to PRA Group, Inc.

$    28,210
$     3,659Return on equity

11.4 %
1.2 %Return on average tangible equity

11.7 %
1.9 %

1.Amounts represent the average balances for the respective periods.2.Based on annualized Net income attributable to PRA Group, Inc.Investor Contact:
Najim Mostamand, CFA
Vice President, Investor Relations
757-431-7913
IR@PRAGroup.com View original content to download multimedia:https://www.prnewswire.com/news-releases/pra-group-reports-first-quarter-2026-results-302766170.htmlSOURCE PRA Group, Inc. Original: PRA Group Reports First Quarter 2026 Results

PRA Group Reports Fourth Quarter and Full Year 2025 ResultsFebruary 26, 2026 4:05 PM
PR Newswire (US)

Company Achieves 13% Cash Collections Growth Year-over-Year and $1.2 Billion of Purchases for Full Year 2025 Net Loss Attributable to PRA Group, Inc. of $305 Million for Full Year 2025, Primarily Driven by a Non-Cash Goodwill Impairment Charge of $413 Million in Q3 2025; Adjusted Net Income Attributable to PRA of $73 million for Full Year 2025Continued to Improve U.S. Operations and Build on the Strong Track Record of our European BusinessNORFOLK, Va., Feb. 26, 2026 /PRNewswire/ -- PRA Group, Inc. (Nasdaq: PRAA) (the "Company" or "PRA"), a global leader in acquiring and collecting nonperforming loan portfolios, today reported its financial results for the fourth quarter ("Q4 2025") and full year of 2025.

Q4 2025 Highlights Total cash collections of $531.7 million, up 13.6%.Cash efficiency ratio1 of 61.4%.Net income attributable to PRA Group, Inc. of $56.5 million, or diluted earnings per share of $1.46.Total portfolio purchases of $314.8 million.Record estimated remaining collections ("ERC")2 of $8.6 billion.Full Year 2025 HighlightsTotal cash collections of $2.1 billion, up 12.8%.Cash efficiency ratio1 of 41.8%. Excluding the $412.6 million non-cash goodwill impairment charge recorded in Q3 2025, adjusted cash efficiency ratio1 of 61.3%.Net loss attributable to PRA Group, Inc. of $305.1 million, or diluted earnings per share of $(7.79).Excluding the goodwill impairment charge and gain from the sale of the Company's equity interest in RCB (the servicing company for its nonperforming loan investments in Brazil), adjusted net income attributable to PRA 3 of $72.6 million, or adjusted diluted earnings per share4 of $1.84.Total portfolio purchases of $1.2 billion, representing the third highest level of investments in Company history.Adjusted EBITDA 5 of $1.3 billion, up 16%.1.Cash efficiency ratio is calculated by dividing cash receipts less operating expenses by cash receipts. Cash receipts refers to cash collections on the Company's nonperforming loan portfolios, fees and revenue recognized from the Company's class action claims recovery services. Adjusted cash efficiency ratio is calculated by dividing cash receipts less adjusted operating expenses by cash receipts. Calculation of the adjusted cash efficiency ratio can be found at the end of this press release.2.Refers to the sum of all future projected cash collections on the Company's nonperforming loan portfolios.3.A reconciliation of net income/(loss) attributable to PRA Group, Inc. to adjusted net income/(loss) attributable to PRA can be found at the end of this press release.4.A reconciliation of diluted earnings per share to adjusted diluted earnings per share can be found at the end of this press release.5.A reconciliation of net income/(loss) attributable to PRA Group, Inc. to Adjusted EBITDA can be found at the end of this press release."PRA made significant progress in 2025. Since stepping into the CEO role in June, we have further strengthened our U.S. operational platform, built on the track record of our European franchise, and developed our longer-term strategy and key financial goals," said Martin Sjolund, president and chief executive officer. "In the U.S., we successfully executed against our near-term strategic priorities, including driving cost savings, reorganizing our operations, creating a new talent hub, and implementing our IT modernization roadmap.""Our adjusted non-GAAP results demonstrate a stable earnings platform, underpinned by a strong and well-diversified capital structure with moderate leverage that has declined in recent quarters. During the fourth quarter, we repurchased $10 million of our shares, bringing the total amount repurchased in 2025 to $20 million, in line with our capital allocation strategy to drive shareholder value.""Overall, we are moving in the right direction as we continue to improve our financial profile and focus on delivering higher returns while reducing leverage. Looking ahead, we are introducing our PRA 3.0 strategy to evolve the Company into a high-performing, technology-enabled global allocator of capital. We believe that the actions we are taking will drive stronger financial results and unlock meaningful long-term value for our shareholders."Cash Collections and Revenues
The following table presents cash collections by quarter and by source on an as reported and constant currency-adjusted basis:

Cash Collection Source
2025
2024($ in thousands)
Q4
Q3
Q2
Q1
Q4U.S. Core
$       249,322
$       258,277
$       253,856
$       240,467
$       208,624U.S. Insolvency
20,223
21,131
21,175
20,589
21,722Europe Core
188,277
185,910
185,652
164,371
162,564Europe Insolvency
19,166
22,658
24,609
21,205
23,724Other markets (1)
54,670
54,268
50,996
50,804
$         51,432Total Cash Collections
$       531,658
$       542,244
$       536,288
$       497,436
$       468,066

Cash Collection Source -

Constant Currency Adjusted
2025

2024($ in thousands)
Q4

Q4U.S. Core
$       249,322

$       208,623U.S. Insolvency
20,223

21,722Europe Core
188,277

174,587Europe Insolvency
19,166

24,680Other markets (1)
54,670

$         54,822Total Cash Collections
$       531,658

$       484,434

1.Reflects total cash collections in South America, Canada and Australia.Total cash collections in Q4 2025 increased 13.6% to $531.7 million compared to $468.1 million in the fourth quarter of 2024 ("Q4 2024"). For the full year, total cash collections increased 12.8% to $2.1 billion, compared to $1.9 billion in 2024. The increase in both periods was driven by the continued increase in cash generation from our investments in the U.S. legal collections channel as well as strong performance in our European business.

Three Months Ended Dec 31,
Year Ended Dec 31,($ in thousands)
2025
2024
2025
2024Portfolio income
$          262,830
$          229,720
$     1,013,271
$         857,188Recoveries collected in excess of forecast
36,543
31,879
120,696
156,135Changes in expected future recoveries
27,336
23,381
55,755
84,733Changes in expected recoveries
63,879
55,260
176,451
240,868Total portfolio revenue
$          326,709
$          284,980
$     1,189,722
$      1,098,056

Portfolio income in Q4 2025 increased 14.4% to $262.8 million, compared to $229.7 million in Q4 2024. For the full year, total portfolio income increased 18.2% to $1.0 billion, compared to $857.2 million in 2024. The increase in both periods was driven by strong recent purchases at improved returns.Changes in expected recoveries in Q4 2025 increased to $63.9 million, compared to $55.3 million in Q4 2024. For the full year, Changes in expected recoveries decreased to $176.5 million, compared to $240.9 million in 2024.Total portfolio revenue in Q4 2025 increased 14.6% to $326.7 million, compared to $285.0 million in Q4 2024. For the full year, total portfolio revenue increased 8.3% to $1.2 billion, compared to $1.1 billion in 2024.Expenses Operating expenses in Q4 2025 increased 4.4% to $207.8 million, compared to $199.1 million in Q4 2024.For the full year, operating expenses increased by 59.0% to $1.2 billion, compared to $774.8 million in 2024. Excluding the goodwill impairment charge in Q3 2025, adjusted operating expenses1 increased 5.8% to $819.5 million, compared to $774.8 million in 2024. The increase was primarily due to continued investments in our U.S. legal collections channel to drive future cash collections growth.For the full year, interest expense, net increased by 9.8% to $251.8 million, compared to $229.3 million in 2024, primarily reflecting higher debt balances to support portfolio investments.The effective tax rate for the full year was (19.2)%.1.A reconciliation of Total operating expenses to Adjusted operating expenses can be found at the end of this press release.Portfolio Purchases

Portfolio Purchase Source
2025
2024($ in thousands)
Q4
Q3
Q2
Q1
Q4U.S. Core
$       102,254
$         119,672
$         160,193
$         148,903
$         161,167U.S. Insolvency
10,088
14,809
22,134
12,059
9,460Europe Core
152,375
95,239
142,465
108,390
220,875Europe Insolvency
4,758
5,934
4,757
4,856
8,272Other markets (2)
45,326
$           19,838
$           16,956
$           17,494
$           32,896Total Portfolio Purchases
$       314,801
$         255,492
$         346,505
$         291,702
$         432,670

The Company purchased $314.8 million of nonperforming loan portfolios in Q4 2025 and $1.2 billion in 2025.At the end of Q4 2025, the Company had in place estimated forward flow commitments3 of $378.0 million over the next 12 months, comprised of $167.4 million in the U.S, $194.8 million in Europe, and $15.8 million in other markets.2.Reflects total portfolio purchases in South America, Canada and Australia.3.Contractual agreements with sellers of nonperforming loans that allow for the purchase of nonperforming loan portfolios at pre-established prices. These amounts represent our estimated forward flow purchases over the next 12 months under the agreements in place based on projections and other factors, including sellers' estimates of future forward flow sales, and are dependent on actual delivery by the sellers and, in some cases, the impact of foreign exchange rate fluctuations. Accordingly, amounts purchased under these agreements may vary significantly.Credit AvailabilityTotal availability under the Company's credit facilities as of December 31, 2025 was $1.1 billion, comprised of $825.2 million based on current ERC and subject to debt covenants, and $274.3 million of additional availability subject to borrowing base and debt covenants, including advance rates.Conference Call Information
PRA Group, Inc. will hold a conference call today at 5:00 p.m. ET to discuss its financial and operational results. To listen to a webcast of the call and view the accompanying slides, visit https://ir.pragroup.com/events-and-presentations. To listen by phone, call 646-357-8785 in the U.S. or 1-800-836-8184 outside the U.S. and ask for the PRA Group conference call. To listen to a replay of the call, either visit the same website until February 26, 2027, or call 646-517-4150 in the U.S. or 1-888-660-6345 outside the U.S. and use access code 83300# until March 5, 2026.  About PRA Group
As a global leader in acquiring and collecting nonperforming loan portfolios, PRA Group, Inc. returns capital to banks and other creditors to help expand financial services for consumers in the Americas, Europe and Australia. With thousands of employees worldwide, PRA Group, Inc. companies collaborate with customers to help them resolve their debt. For more information, please visit www.pragroup.com. About Forward-Looking Statements
Statements made herein that are not historical in nature, including PRA's or its management's intentions, hopes, beliefs, expectations, representations, projections, plans or predictions of the future, are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended.The forward-looking statements in this press release are based upon management's current beliefs, estimates, assumptions and expectations of PRA's future operations and financial and economic performance, taking into account currently available information. These statements are not statements of historical fact or guarantees of future performance, and there can be no assurance that anticipated events will transpire or that PRA's expectations will prove to be correct. Forward-looking statements involve risks and uncertainties, some of which are not currently known to PRA. Actual events or results may differ materially from those expressed or implied in any such forward-looking statements as a result of various factors, including risk factors and other risks that are described from time to time in PRA's filings with the Securities and Exchange Commission ("SEC"), including PRA's annual reports on Form 10-K, its quarterly reports on Form 10-Q and its current reports on Form 8-K, which are available through PRA's website and contain a detailed discussion of PRA's business, including risks and uncertainties that may affect future results.Due to such uncertainties and risks, you are cautioned not to place undue reliance on such forward-looking statements, which speak only as of today. Information in this press release may be superseded by more recent information or statements, which may be disclosed in later press releases, subsequent filings with the SEC or otherwise. Except as required by law, PRA assumes no obligation to publicly update or revise its forward-looking statements contained herein to reflect any change in PRA's expectations with regard thereto or to reflect any change in events, conditions or circumstances on which any such forward-looking statements are based, in whole or in part.  PRA Group, Inc.Consolidated Income Statements(Amounts in thousands, except per share amounts)
(unaudited)

Three Months Ended
December 31,
Year Ended December 31,
2025
2024
2025
2024Revenues

Portfolio income$              262,830
$             229,720
$           1,013,271
$               857,188Changes in expected recoveries63,879
55,260
176,451
240,868        Total portfolio revenue326,709
284,980
1,189,722
1,098,056Other revenue6,681
8,252
12,115
16,468Total revenues333,390
293,232
1,201,837
1,114,524Operating expenses

Compensation and benefits73,381
74,959
296,665
298,903Legal collection costs43,906
34,036
161,647
124,782Legal collection fees16,906
16,270
64,319
56,623Agency fees23,812
21,583
92,424
83,334Professional and outside services20,164
19,592
84,389
83,218Communication8,433
9,230
36,704
43,433Rent and occupancy3,879
4,474
14,517
16,929Depreciation, amortization and impairment of long-lived assets1,728
2,966
10,439
10,792Goodwill impairment—
—
412,611
—Other operating expenses15,595
15,986
58,395
56,778Total operating expenses207,804
199,096
1,232,110
774,792Income/(loss) from operations125,586
94,136
(30,273)
339,732Other income and (expense)

Interest expense, net(64,370)
(60,574)
(251,788)
(229,267)Gain on sale of equity method investment—
—
38,403
—Other646
(162)
419
(860)Income/(loss) before income taxes61,862
33,400
(243,239)
109,605Income tax expense2,647
10,616
46,735
21,032Net Income/(loss)59,215
22,784
(289,974)
88,573Net income attributable to noncontrolling interests2,687
4,328
15,168
17,972Net income/(loss) attributable to PRA Group, Inc.$ 56,528
$ 18,456
$ (305,142)
$ 70,601Net income/(loss) per common share attributable to PRA Group, Inc.

Basic$                     1.46
$                    0.47
$                   (7.79)
$                     1.79Diluted$                     1.46
$                    0.47
$                   (7.79)
$                     1.79Weighted average number of shares outstanding

Basic38,741
39,468
39,173
39,382Diluted38,845
39,681
39,173
39,542 PRA Group, Inc.Consolidated Balance Sheets(Amounts in thousands)
December 31, 2025
December 31, 2024ASSETS

Cash and cash equivalents$                    104,409
$                    105,938Investments66,628
66,304Finance receivables, net4,688,024
4,140,742Income taxes receivable17,702
19,559Deferred tax assets, net76,955
75,134Right-of-use assets29,206
32,173Property and equipment, net24,886
29,498Goodwill26,871
396,357Other assets68,641
65,450Total assets$                 5,103,322
$                 4,931,155LIABILITIES AND EQUITY

Liabilities

Accrued expenses and accounts payable$                    131,812
$                    141,211Income taxes payable29,845
28,584Deferred tax liabilities, net17,064
16,813Lease liabilities32,160
36,437Interest-bearing deposits106,148
163,406Borrowings3,697,338
3,326,621Other liabilities48,990
24,476Total liabilities4,063,357
3,737,548Equity

Preferred stock, $0.01 par value, 2,000 shares authorized, no shares issued and outstanding   —
—Common stock, $0.01par value, 100,000 shares authorized, 38,453 shares issued and
outstanding as of December 31, 2025; 100,000 shares authorized, 39,510 shares issued and
outstanding as of December 31, 2024385
395Additional paid-in capital11,474
17,882Retained earnings1,255,007
1,560,149Accumulated other comprehensive loss(287,015)
(443,394)Total stockholders' equity - PRA Group, Inc.979,851
1,135,032Noncontrolling interests60,114
58,575Total equity1,039,965
1,193,607Total liabilities and equity$                 5,103,322
$                 4,931,155 Purchase Price Multiplesas of December 31, 2025Amounts in thousands, except percentagesPurchase PeriodPurchase Price (1)(2)Total Estimated
Collections (3)Estimated
Remaining
Collections (4)Current Purchase
Price MultipleOriginal Purchase
Price Multiple (5)U.S. Core

1996-2015$                  2,736,875$              7,502,110$                 102,171274 %224 %2016400,545819,85935,429205 %195 %2017511,9021,168,72173,695228 %193 %2018604,6691,373,598101,701227 %199 %2019432,2221,017,19777,296235 %209 %2020415,384940,63297,908226 %215 %2021339,885605,109130,492178 %191 %2022275,433435,295151,728158 %164 %2023506,319956,536495,435189 %191 %2024727,6721,627,8221,133,172224 %211 %2025531,0211,144,4361,038,346216 %216 %Subtotal7,481,92717,591,3153,437,373

U.S. Insolvency

1996-20151,472,3852,806,4551191 %154 %201667,45485,64333127 %124 %2017275,257359,492257131 %125 %201897,879137,20394140 %127 %2019120,845164,082289136 %128 %202062,13090,1661,993145 %136 %202154,89874,2347,566135 %136 %202233,44247,90613,948143 %139 %202361,24280,35442,982131 %136 %202468,16899,51564,368146 %149 %202559,09194,57489,396160 %160 %Subtotal2,372,7914,039,624220,927

Total U.S.9,854,71821,630,9393,658,300

Europe Core

2012-20151,225,8933,502,939501,505286 %190 %2016333,090592,884139,586178 %167 %2017252,174365,53681,441145 %144 %2018341,775565,847154,776166 %148 %2019518,610886,432288,716171 %152 %2020324,119606,494222,958187 %172 %2021412,411729,384346,484177 %170 %2022359,447596,537391,041166 %162 %2023410,593703,345487,208171 %169 %2024451,786817,788724,434181 %180 %2025512,533949,923892,135185 %185 %Subtotal5,142,43110,317,1094,230,284

Europe Insolvency

2014-201529,84948,955—164 %135 %201639,33858,523469149 %130 %201739,23552,785300135 %128 %201844,90853,296686119 %123 %201977,218114,4484,538148 %130 %2020105,440162,0427,550154 %129 %202153,23080,04711,541150 %134 %202244,60465,85323,130148 %137 %202346,55866,32936,108142 %138 %202443,45964,12843,558148 %147 %202520,76030,10228,167145 %145 %Subtotal544,599796,508156,047

Total Europe5,687,03011,113,6174,386,331

Total other markets (6)   940,3042,193,890564,234233 %204 %Total PRA Group$                16,482,052$            34,938,446$              8,608,865

(1)Includes the acquisition date finance receivables portfolios that were acquired through our business acquisitions.(2)Non-U.S. amounts are presented at the exchange rate at the end of the year in which the portfolio was purchased. Purchase price adjustments that occur throughout the life of the portfolio are presented at the year-end exchange rate for the respective year of purchase.(3)Non-U.S. amounts are presented at the year-end exchange rate for the respective year of purchase.(4)Non-U.S. amounts are presented at the December 31, 2025 exchange rate.(5)The original purchase price multiple represents the purchase price multiple at the end of the year of purchase.(6)Reflects all vintages in South America, Canada and Australia. Portfolio Financial Information (1)Amounts in thousands
Year Ended December 31, 2025
As of December 31, 2025Purchase PeriodCashCollections (2)Portfolio
Income (2)Changes in
Expected
Recoveries (2)Total Portfolio
Revenue (2)
Net Finance Receivables (3)U.S. Core

1996-2015$              53,587$             26,258$               13,387$              39,645
$                                 33,430201612,9077,702(636)7,066
14,911201726,64814,3636,48720,850
30,259201842,91119,5537,18326,736
49,931201937,33316,6923,07219,764
37,766202050,39021,6324,93426,566
50,181202152,79328,021(14,710)13,311
65,403202258,51225,407(19,249)6,158
89,1442023185,87091,451(33,694)57,757
268,6242024374,880212,32342,435254,758
611,5702025106,09189,4559,23598,690
522,814Subtotal1,001,922552,85718,444571,301
1,774,033U.S. Insolvency

1996-20151,024241,0091,033
1201612716824
3120171,00092448540
22720181,01532562594
8920192,682851,0041,089
27620208,723747(1,207)(460)
1,806202111,7601,5102751,785
7,080202210,4712,0574372,494
12,425202318,0405,243(123)5,120
36,785202423,09710,571(1,091)9,480
48,88020255,1795,3771,4616,838
59,772Subtotal83,11825,7542,78328,537
167,372Total U.S.1,085,040578,61121,227599,838
1,941,405Europe Core

2012-2015126,91169,45643,876113,332
148,237201627,11411,5775,54717,124
79,003201715,7105,604(857)4,747
54,052201834,33112,3023,33315,635
99,338201961,69019,75720,22439,981
194,078202045,14617,28812,57629,864
134,890202159,66525,5587,39732,955
209,447202267,77226,9014,47131,372
246,086202393,16637,7577,60345,360
290,9222024135,60658,6246,22264,846
405,324202557,09927,2415,45132,692
484,918Subtotal724,210312,065115,843427,908
2,346,295Europe Insolvency

2014-2015347—347347
—201659481482563
120201795242630672
18320181,42783306389
55620196,1056064241,030
3,811202015,5171,1822,1853,367
7,071202114,6191,5914,6586,249
10,553202215,2402,7912,9575,748
19,924202315,6794,1601,4215,581
30,139202415,2415,9961,0767,072
32,88620251,9171,3495171,866
20,382Subtotal87,63817,88115,00332,884
125,625Total Europe811,848329,946130,846460,792
2,471,920Total other markets (4)   210,738104,71424,378129,092
274,699Total PRA Group$         2,107,626$         1,013,271$             176,451$         1,189,722
$                             4,688,024

(1)Includes the nonperforming loan portfolios that were acquired through our business acquisitions.(2)Non-U.S. amounts are presented using the average exchange rates during the current year.(3)Non-U.S. amounts are presented at the December 31, 2025 exchange rate.(4)Reflects all vintages in South America, Canada and Australia. Cash Collections by Year, By Year of Purchase (1)as of December 31, 2025Amounts in millions

Cash Collections
Purchase PeriodPurchase
Price (2)(3)1996-20152016201720182019202020212022202320242025TotalU.S. Core

1996-2015$ 2,736.9$ 5,186.4$ 673.8$ 479.4$ 337.7$ 230.9$ 149.3$   98.2$   67.1$   51.7$   64.7$   53.6$ 7,392.82016400.5—86.1195.3160.1116.688.759.929.117.618.112.9784.42017511.9——94.3264.4247.1185.6124.873.141.637.526.61095.02018604.7———106.3320.2304.7214.8131.683.268.142.91271.82019432.2————93.4282.2237.4141.786.161.837.3939.92020415.4—————127.4274.7185.4121.383.650.4842.82021339.9——————73.8149.9115.382.852.8474.62022275.4———————34.9102.487.858.5283.62023506.3————————63.5211.8185.9461.22024727.7—————————119.8374.9494.72025531.0——————————106.1106.1Subtotal7,481.95,186.4759.9769.0868.51,008.21,137.91,083.6812.8682.7836.01,001.914,146.9U.S. Insolvency

1996-20151,472.42,290.4230.4142.678.639.113.64.52.91.81.41.02,806.3201667.5—10.118.918.216.413.06.61.30.60.40.185.62017275.3——49.197.380.958.844.020.84.92.51.0359.3201897.9———6.727.430.531.624.612.72.51.0137.02019120.8————13.430.937.936.828.014.22.7163.9202062.1—————6.516.120.419.517.08.788.2202154.9——————4.517.717.415.211.866.6202233.4———————3.29.211.110.534.0202361.2————————4.514.818.037.3202468.2—————————12.123.135.2202559.1——————————5.25.2Subtotal2,372.82,290.4240.5210.6200.8177.2153.3145.2127.798.691.283.13,818.6Total U.S.9,854.77,476.81,000.4979.61,069.31,185.41,291.21,228.8940.5781.3927.21,085.017,965.5Europe Core

2012-20151,225.8538.4350.2310.3290.5241.4206.0202.4164.3142.4132.1126.92,704.92016333.1—40.478.972.658.048.346.736.929.727.427.1466.02017252.2——17.956.044.136.134.825.220.217.915.7267.92018341.8———24.388.771.369.150.741.637.134.3417.12019518.6————48.0125.7121.489.875.168.261.7589.92020324.1—————32.391.769.056.150.145.1344.32021412.4——————48.589.973.066.659.7337.72022359.4———————33.983.874.767.8260.22023410.6————————50.2103.193.2246.52024451.9—————————46.3135.6181.92025512.5——————————57.157.1Subtotal5,142.4538.4390.6407.1443.4480.2519.7614.6559.7572.1623.5724.25,873.5Europe Insolvency

2014-201529.97.38.38.27.45.43.71.90.80.60.40.344.3201639.3—6.212.712.910.77.96.02.71.30.80.661.8201739.2——1.27.99.29.89.46.53.81.51.050.3201844.9———0.68.410.311.79.87.23.51.452.9201977.2————5.021.123.921.017.512.96.1107.52020105.4—————6.034.634.129.725.515.5145.4202153.2——————5.514.414.715.414.664.6202244.6———————4.512.415.215.247.3202346.7————————4.212.715.732.6202443.4—————————9.515.224.7202520.8——————————1.91.9Subtotal544.67.314.522.128.838.758.893.093.891.497.487.6633.3Total Europe5,687.0545.7405.1429.2472.2518.9578.5707.6653.5663.5720.9811.86,506.8Total other   markets (4)$     940.3$      33.9$   86.5$ 103.9$   83.7$ 137.0$ 135.9$ 125.4$ 135.0$ 215.9$ 220.5$ 210.7$ 1,488.4Total PRA Group$ 16,482.0$ 8,056.4$ 1,492.0$ 1,512.7$ 1,625.2$ 1,841.3$ 2,005.6$ 2,061.8$ 1,729.0$ 1,660.7$ 1,868.6$ 2,107.5$ 25,960.7

(1)Non-U.S. amounts are presented using the average exchange rates during the respective year.(2)Includes the acquisition date finance receivables portfolios acquired through our business acquisitions.(3)Non-U.S. amounts are presented at the exchange rate at the end of the year in which the portfolio was purchased. Purchase price adjustments that occur throughout the life of the pool are presented at the year-end exchange rate for the respective year of purchase.(4)Reflects all vintages in South America, Canada and Australia.Non-GAAP Financial MeasuresThe Company reports its financial results in accordance with U.S. generally accepted accounting principles ("GAAP"). However, management uses certain non-GAAP financial measures, including the non-GAAP financial measures referred to below, internally to evaluate the Company's performance and to set performance goals. Included below are reconciliations of the most directly comparable financial measures calculated in accordance with GAAP to the corresponding non-GAAP financial measure. The non-GAAP financial measures included below should not be considered as an alternative to the most directly comparable financial measure determined in accordance with GAAP. The calculation of the non-GAAP financial measures included below may not be comparable to the calculation of similarly titled financial measures reported by other companies.Adjusted EBITDAAdjusted EBITDA is calculated as net income (or loss) attributable to PRA Group, Inc. plus income tax expense (or less income tax benefit); less foreign exchange gain (or plus foreign exchange loss); plus interest expense, net; plus other expense; plus depreciation and amortization; plus impairment of real estate; plus goodwill impairment; plus net income attributable to noncontrolling interests; less gain on sale of equity method investment; and plus recoveries collected and applied to Finance receivables, net less Changes in expected recoveries. The Company presents Adjusted EBITDA because the Company considers it an important supplemental measure of its operational and financial performance. Management believes Adjusted EBITDA helps provide enhanced period-to-period comparability of the Company's operational and financial performance and is useful to investors as other companies in the industry report similar financial measures. Set forth below is a reconciliation of net income/(loss) attributable to PRA Group, Inc. to Adjusted EBITDA for the years ended December 31, 2025 and 2024. Adjusted EBITDA Reconciliation ($ in thousands)20252024Net income/(loss) attributable to PRA Group, Inc.$                        (305,142)$                            70,601Adjustments:

Income tax expense46,73521,032Foreign exchange (gain)/loss(755)9Interest expense, net251,788229,267Other expense336851Depreciation and amortization9,03510,792Impairment of real estate1,404—Goodwill impairment412,611—Net income attributable to noncontrolling interests15,16817,972Gain on sale of equity method investment(38,403)—Recoveries collected and applied to Finance receivables, net less Changes in expected recoveries   922,697787,028 Adjusted EBITDA$                      1,315,474$                      1,137,552Adjusted Cash Efficiency RatioThe Company uses an adjusted cash efficiency ratio to monitor and evaluate operating expenses, excluding goodwill impairment ("Adjusted operating expenses"), relative to cash collections plus fees and revenue recognized from our class action claims recovery services. Management believes the adjusted cash efficiency ratio is a useful financial measure for investors in evaluating the Company's management of operating expenses. The adjusted cash efficiency ratio is calculated by dividing cash receipts less Adjusted operating expenses by cash receipts. The following table provides a reconciliation of Total operating expenses to Adjusted operating expenses and presents the Company's Adjusted cash efficiency ratios for the years indicated (in thousands, except for ratio data):
Adjusted Operating Expenses Reconciliation
and Adjusted Cash Efficiency Ratio
2025
2024
2023Cash collections$             2,107,626
$             1,868,576
$             1,660,450Fee income9,996
10,023
10,384Cash receipts2,117,622
1,878,599
1,670,834

Total operating expenses1,232,110
774,792
702,062Less: Goodwill impairment412,611
—
—Adjusted operating expenses819,499
774,792
702,062

Cash receipts less Adjusted operating expenses 1,298,123
1,103,807
968,772

Adjusted cash efficiency ratio61.3 %
58.8 %
58.0 %Adjusted Net Income/(Loss) Attributable to PRA, Adjusted Diluted Earnings Per Share, ROATE and Adjusted ROATEWe use Net income/(loss) attributable to PRA Group, Inc. and Diluted earnings per share excluding the impact of certain transactions that are unusual or infrequent in nature and not reflective of our ongoing operations ("Adjusted net income/(loss) attributable to PRA" and "Adjusted diluted earnings per share", respectively) to monitor and evaluate our operating performance and allow for better comparability. Management believes Adjusted net income/(loss) attributable to PRA and Adjusted diluted earnings per share are useful financial measures for investors in evaluating our operating results.In addition, the Company uses return on average tangible equity ("ROATE") to monitor and evaluate operating performance relative to the Company's equity. Management believes ROATE is a useful financial measure for investors in evaluating the effective use of equity, and is an important component of its long-term shareholder return. Average tangible equity is defined as average Total stockholders' equity - PRA Group, Inc. less average goodwill and average other intangible assets. ROATE is calculated by dividing Net income/(loss) attributable to PRA Group, Inc. by average tangible equity.ROATE may include certain items that are not indicative of the ongoing operating results of the Company's business. Accordingly, the Company also uses Adjusted ROATE to monitor and evaluate operating performance relative to the Company's equity. Management believes that Adjusted ROATE is a useful financial measure for investors because it is based on Adjusted net income/(loss) attributable to PRA. Adjusted ROATE is calculated by dividing Adjusted net income/(loss) attributable to PRA by average tangible equity.The following table provides a reconciliation of Total stockholders' equity - PRA Group, Inc. to average tangible equity and a reconciliation of Net income/(loss) attributable to PRA Group, Inc. to Adjusted net income/(loss) attributable to PRA and provides the Company's ROATE and Adjusted ROATE for the years indicated (in thousands, except for ratio data):

Balance as of Year End
Average Tangible Equity Reconciliation (1)

2025
2024
2023
2025
2024
2023Total stockholders' equity - PRA Group, Inc. (2)
$    979,851
$ 1,135,032
$ 1,167,112
$    1,119,881
$ 1,159,163
$ 1,166,846Goodwill
26,871
396,357
431,564
(262,053)
(415,685)
(423,110)Other intangible assets
1,435
1,453
1,742
(1,477)
(1,616)
(1,786)Average tangible equity

$       856,351
$     741,862
$     741,950

ROATE

2025
2024
2023Net income/(loss) attributable to PRA Group, Inc.

$    (305,142)
$        70,601
$    (83,477)Return on average tangible equity

(35.6) %
9.5 %
(11.3) %

Adjusted Net Income/(Loss) Attributable to
PRA Reconciliation and Adjusted ROATE

2025
2024
2023Net income/(loss) attributable to PRA Group, Inc.

$    (305,142)
$        70,601
$    (83,477)Gain on sale of equity method investment

(38,403)
—
—Goodwill impairment

412,611
—
—Tax effect of adjusting items (3)

3,515
—
—Adjusted net income/(loss) attributable to PRA

72,581
70,601
(83,477)Adjusted ROATE

8.5 %
9.5 %
(11.3) %The following table provides a reconciliation of diluted earnings per share to Adjusted diluted earnings per share:
Adjusted Diluted Earnings Per Share Reconciliation
2025
2024
2023Diluted earnings per share$ (7.79)
$                       1.79
$                    (2.13)Effect of adjusting items and dilutive shares (4) 9.63
—
—Adjusted diluted earnings per share$                       1.84
$                       1.79
$                    (2.13)
1.     Amounts represent the average balances for the respective years.2.     Not adjusted for Gain on sale of equity method investment in 2025 due to the de minimis effect.3.     Based on the annual effective tax rate and pretax income excluding the effect of the adjusting items.4.     Impact of the non-GAAP adjusting items and dilutive effect of all potential shares of common stock.Investor Contact:
Najim Mostamand, CFA
Vice President, Investor Relations
(757) 431-7913
IR@PRAGroup.com

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Original: PRA Group Reports Fourth Quarter and Full Year 2025 Results