Open the filing on EDGARPRA Group Reports Fourth Quarter and Full Year 2025 Results
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 2025
Continued to Improve U.S. Operations and Build on the Strong Track Record of our European Business
NORFOLK, Va., February 26, 2026 - 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 ratio 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") of $8.6 billion.
Full Year 2025 Highlights
- Total cash collections of $2.1 billion, up 12.8%.
- Cash efficiency ratio of 41.8%. Excluding the $412.6 million non-cash goodwill impairment charge recorded in Q3 2025, adjusted cash efficiency ratio 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 of $72.6 million, or adjusted diluted earnings per share of $1.84.
- Total portfolio purchases of $1.2 billion, representing the third highest level of investments in Company history.
- Adjusted EBITDA 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 | Q4 |
| U.S. Core | $249,322 | | $258,277 | $253,856 | $240,467 | | $208,624 | |
| U.S. Insolvency | 20,223 | | 21,131 | 21,175 | 20,589 | | 21,722 | |
| Europe Core | 188,277 | | 185,910 | 185,652 | 164,371 | | 162,564 | |
| Europe Insolvency | 19,166 | | 22,658 | 24,609 | 21,205 | | 23,724 | |
| Other markets | 54,670 | | 54,268 | 50,996 | 50,804 | | $51,432 | |
| Total Cash Collections | $531,658 | | $542,244 | $536,288 | $497,436 | | $468,066 | |
| Cash Collection Source - | | | | | |
| Constant Currency Adjusted | | 2025 | | | | | 2024 |
| ($ in thousands) | Q4 | | | | Q4 |
| U.S. Core | $249,322 | | | | | $208,623 | |
| U.S. Insolvency | 20,223 | | | | | 21,722 | |
| Europe Core | 188,277 | | | | | 174,587 | |
| Europe Insolvency | 19,166 | | | | | 24,680 | |
| Other markets | 54,670 | | | | | $54,822 | |
| Total Cash Collections | $531,658 | | | | | $484,434 | |
- 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 $1.9 billion in 2024. The increase in both periods was driven by the continued increase in cash generation from our investments in the U.S. legal collections channel as well as strong performance in our European business.
1.Reflects total cash collections in South America, Canada and Australia.
| Three Months Ended Dec 31, | Year Ended Dec 31, |
|---|
| ($ in thousands) | | 2025 | | 2024 | | 2025 | | 2024 |
| Portfolio income | $262,830 | | $229,720 | | $1,013,271 | | $857,188 | |
| Recoveries collected in excess of forecast | 36,543 | | 31,879 | | 120,696 | | 156,135 | |
| Changes in expected future recoveries | 27,336 | | 23,381 | | 55,755 | | 84,733 | |
| Changes in expected recoveries | 63,879 | | 55,260 | | 176,451 | | 240,868 | |
| Total 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 expenses 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 $229.3 million in 2024, primarily reflecting higher debt balances to support portfolio investments.
- The effective tax rate for the full year was (19.2)%.
Portfolio Purchases
| Portfolio Purchase Source | | | | | 2025 | | 2024 |
| ($ in thousands) | Q4 | Q3 | Q2 | Q1 | Q4 |
| U.S. Core | $102,254 | $119,672 | $160,193 | $148,903 | | $161,167 | |
| U.S. Insolvency | 10,088 | 14,809 | 22,134 | 12,059 | | 9,460 | |
| Europe Core | 152,375 | 95,239 | 142,465 | 108,390 | | 220,875 | |
| Europe Insolvency | 4,758 | 5,934 | 4,757 | 4,856 | | 8,272 | |
| Other markets | 45,326 | $19,838 | $16,956 | $17,494 | | $32,896 | |
| Total 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 commitments 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.
1.A reconciliation of Total operating expenses to Adjusted operating expenses can be found at the end of this press release.
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 Availability
- Total 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 | 2024 |
|---|
| Revenues | | | | |
| Portfolio income | $262,830 | | $229,720 | | $1,013,271 | | $857,188 | |
| Changes in expected recoveries | 63,879 | | 55,260 | | 176,451 | | 240,868 | |
| Total portfolio revenue | 326,709 | | 284,980 | | 1,189,722 | | 1,098,056 | |
| Other revenue | 6,681 | | 8,252 | | 12,115 | | 16,468 | |
| Total revenues | 333,390 | | 293,232 | | 1,201,837 | | 1,114,524 | |
| Operating expenses | | | | |
| Compensation and benefits | 73,381 | | 74,959 | | 296,665 | | 298,903 | |
| Legal collection costs | 43,906 | | 34,036 | | 161,647 | | 124,782 | |
| Legal collection fees | 16,906 | | 16,270 | | 64,319 | | 56,623 | |
| Agency fees | 23,812 | | 21,583 | | 92,424 | | 83,334 | |
| Professional and outside services | 20,164 | | 19,592 | | 84,389 | | 83,218 | |
| Communication | 8,433 | | 9,230 | | 36,704 | | 43,433 | |
| Rent and occupancy | 3,879 | | 4,474 | | 14,517 | | 16,929 | |
| Depreciation, amortization and impairment of long-lived assets | 1,728 | | 2,966 | | 10,439 | | 10,792 | |
| Goodwill impairment | - | | - | | 412,611 | | - | |
| Other operating expenses | 15,595 | | 15,986 | | 58,395 | | 56,778 | |
| Total operating expenses | 207,804 | | 199,096 | | 1,232,110 | | 774,792 | |
| Income/(loss) from operations | 125,586 | | 94,136 | | (30,273) | | 339,732 | |
| Other income and (expense) | | | | |
| Interest expense, net | (64,370) | | (60,574) | | (251,788) | | (229,267) | |
| Gain on sale of equity method investment | - | | - | | 38,403 | | - | |
| Other | 646 | | (162) | | 419 | | (860) | |
| Income/(loss) before income taxes | 61,862 | | 33,400 | | (243,239) | | 109,605 | |
| Income tax expense | 2,647 | | 10,616 | | 46,735 | | 21,032 | |
| Net Income/(loss) | 59,215 | | 22,784 | | (289,974) | | 88,573 | |
| Net income attributable to noncontrolling interests | 2,687 | | 4,328 | | 15,168 | | 17,972 | |
| Net income/(loss) attributable to PRA Group, Inc. | $56,528 | | $18,456 | | $(305,142) | | $70,601 | |
| Net income/(loss) per common share attributable to PRA Group, Inc. | | | | |
| Basic | $1.46 | | $0.47 | | $(7.79) | | $1.79 | |
| Diluted | $1.46 | | $0.47 | | $(7.79) | | $1.79 | |
| Weighted average number of shares outstanding | | | | |
| Basic | 38,741 | | 39,468 | | 39,173 | | 39,382 | |
| Diluted | 38,845 | | 39,681 | | 39,173 | | 39,542 | |
PRA Group, Inc.
Consolidated Balance Sheets
(Amounts in thousands)
| December 31, 2025 | December 31, 2024 |
|---|
| ASSETS | | |
| Cash and cash equivalents | $104,409 | $105,938 |
| Investments | 66,628 | 66,304 |
| Finance receivables, net | 4,688,024 | 4,140,742 |
| Income taxes receivable | 17,702 | 19,559 |
| Deferred tax assets, net | 76,955 | 75,134 |
| Right-of-use assets | 29,206 | 32,173 |
| Property and equipment, net | 24,886 | 29,498 |
| Goodwill | 26,871 | 396,357 |
| Other assets | 68,641 | 65,450 |
| Total assets | $5,103,322 | $4,931,155 |
| LIABILITIES AND EQUITY | | |
| Liabilities | | |
| Accrued expenses and accounts payable | $131,812 | $141,211 |
| Income taxes payable | 29,845 | 28,584 |
| Deferred tax liabilities, net | 17,064 | 16,813 |
| Lease liabilities | 32,160 | 36,437 |
| Interest-bearing deposits | 106,148 | 163,406 |
| Borrowings | 3,697,338 | 3,326,621 |
| Other liabilities | 48,990 | 24,476 |
| Total liabilities | 4,063,357 | 3,737,548 |
| Equity | | |
| 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, 2024 | 385 | 395 |
| Additional paid-in capital | 11,474 | 17,882 |
| Retained earnings | 1,255,007 | 1,560,149 |
| Accumulated other comprehensive loss | (287,015) | (443,394) |
| Total stockholders' equity - PRA Group, Inc. | 979,851 | 1,135,032 |
| Noncontrolling interests | 60,114 | 58,575 |
| Total equity | 1,039,965 | 1,193,607 |
| Total liabilities and equity | $5,103,322 | $4,931,155 |
| Purchase Price Multiplesas of December 31, 2025Amounts in thousands, except percentages |
| Purchase Period | Purchase Price (1)(2) | Total Estimated Collections | Estimated Remaining Collections | Current Purchase Price Multiple | Original Purchase Price Multiple |
| U.S. Core | | | | | |
| 1996-2015 | $2,736,875 | $7,502,110 | $102,171 | 274% | 224% |
| 2016 | 400,545 | 819,859 | 35,429 | 205% | 195% |
| 2017 | 511,902 | 1,168,721 | 73,695 | 228% | 193% |
| 2018 | 604,669 | 1,373,598 | 101,701 | 227% | 199% |
| 2019 | 432,222 | 1,017,197 | 77,296 | 235% | 209% |
| 2020 | 415,384 | 940,632 | 97,908 | 226% | 215% |
| 2021 | 339,885 | 605,109 | 130,492 | 178% | 191% |
| 2022 | 275,433 | 435,295 | 151,728 | 158% | 164% |
| 2023 | 506,319 | 956,536 | 495,435 | 189% | 191% |
| 2024 | 727,672 | 1,627,822 | 1,133,172 | 224% | 211% |
| 2025 | 531,021 | 1,144,436 | 1,038,346 | 216% | 216% |
| Subtotal | 7,481,927 | 17,591,315 | 3,437,373 | | |
| U.S. Insolvency | | | | |
| 1996-2015 | 1,472,385 | 2,806,455 | 1 | 191% | 154% |
| 2016 | 67,454 | 85,643 | 33 | 127% | 124% |
| 2017 | 275,257 | 359,492 | 257 | 131% | 125% |
| 2018 | 97,879 | 137,203 | 94 | 140% | 127% |
| 2019 | 120,845 | 164,082 | 289 | 136% | 128% |
| 2020 | 62,130 | 90,166 | 1,993 | 145% | 136% |
| 2021 | 54,898 | 74,234 | 7,566 | 135% | 136% |
| 2022 | 33,442 | 47,906 | 13,948 | 143% | 139% |
| 2023 | 61,242 | 80,354 | 42,982 | 131% | 136% |
| 2024 | 68,168 | 99,515 | 64,368 | 146% | 149% |
| 2025 | 59,091 | 94,574 | 89,396 | 160% | 160% |
| Subtotal | 2,372,791 | 4,039,624 | 220,927 | | |
| Total U.S. | 9,854,718 | 21,630,939 | 3,658,300 | | |
| Europe Core | | | | | |
| 2012-2015 | 1,225,893 | 3,502,939 | 501,505 | 286% | 190% |
| 2016 | 333,090 | 592,884 | 139,586 | 178% | 167% |
| 2017 | 252,174 | 365,536 | 81,441 | 145% | 144% |
| 2018 | 341,775 | 565,847 | 154,776 | 166% | 148% |
| 2019 | 518,610 | 886,432 | 288,716 | 171% | 152% |
| 2020 | 324,119 | 606,494 | 222,958 | 187% | 172% |
| 2021 | 412,411 | 729,384 | 346,484 | 177% | 170% |
| 2022 | 359,447 | 596,537 | 391,041 | 166% | 162% |
| 2023 | 410,593 | 703,345 | 487,208 | 171% | 169% |
| 2024 | 451,786 | 817,788 | 724,434 | 181% | 180% |
| 2025 | 512,533 | 949,923 | 892,135 | 185% | 185% |
| Subtotal | 5,142,431 | 10,317,109 | 4,230,284 | | |
| Europe Insolvency | | | | |
| 2014-2015 | 29,849 | 48,955 | - | 164% | 135% |
| 2016 | 39,338 | 58,523 | 469 | 149% | 130% |
| 2017 | 39,235 | 52,785 | 300 | 135% | 128% |
| 2018 | 44,908 | 53,296 | 686 | 119% | 123% |
| 2019 | 77,218 | 114,448 | 4,538 | 148% | 130% |
| 2020 | 105,440 | 162,042 | 7,550 | 154% | 129% |
| 2021 | 53,230 | 80,047 | 11,541 | 150% | 134% |
| 2022 | 44,604 | 65,853 | 23,130 | 148% | 137% |
| 2023 | 46,558 | 66,329 | 36,108 | 142% | 138% |
| 2024 | 43,459 | 64,128 | 43,558 | 148% | 147% |
| 2025 | 20,760 | 30,102 | 28,167 | 145% | 145% |
| Subtotal | 544,599 | 796,508 | 156,047 | | |
| Total Europe | 5,687,030 | 11,113,617 | 4,386,331 | | |
| Total other markets | 940,304 | 2,193,890 | 564,234 | 233% | 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.
| Year Ended December 31, 2025 | As of December 31, 2025 |
|---|
| Portfolio Financial Information |
| Amounts in thousands |
| Purchase Period | CashCollections | Portfolio Income | Changes in Expected Recoveries | Total Portfolio Revenue | Net Finance Receivables |
| U.S. Core | | | | | |
| 1996-2015 | $53,587 | $26,258 | $13,387 | $39,645 | $33,430 |
| 2016 | 12,907 | 7,702 | (636) | 7,066 | 14,911 |
| 2017 | 26,648 | 14,363 | 6,487 | 20,850 | 30,259 |
| 2018 | 42,911 | 19,553 | 7,183 | 26,736 | 49,931 |
| 2019 | 37,333 | 16,692 | 3,072 | 19,764 | 37,766 |
| 2020 | 50,390 | 21,632 | 4,934 | 26,566 | 50,181 |
| 2021 | 52,793 | 28,021 | (14,710) | 13,311 | 65,403 |
| 2022 | 58,512 | 25,407 | (19,249) | 6,158 | 89,144 |
| 2023 | 185,870 | 91,451 | (33,694) | 57,757 | 268,624 |
| 2024 | 374,880 | 212,323 | 42,435 | 254,758 | 611,570 |
| 2025 | 106,091 | 89,455 | 9,235 | 98,690 | 522,814 |
| Subtotal | 1,001,922 | 552,857 | 18,444 | 571,301 | 1,774,033 |
| U.S. Insolvency | | | | | |
| 1996-2015 | 1,024 | 24 | 1,009 | 1,033 | 1 |
| 2016 | 127 | 16 | 8 | 24 | 31 |
| 2017 | 1,000 | 92 | 448 | 540 | 227 |
| 2018 | 1,015 | 32 | 562 | 594 | 89 |
| 2019 | 2,682 | 85 | 1,004 | 1,089 | 276 |
| 2020 | 8,723 | 747 | (1,207) | (460) | 1,806 |
| 2021 | 11,760 | 1,510 | 275 | 1,785 | 7,080 |
| 2022 | 10,471 | 2,057 | 437 | 2,494 | 12,425 |
| 2023 | 18,040 | 5,243 | (123) | 5,120 | 36,785 |
| 2024 | 23,097 | 10,571 | (1,091) | 9,480 | 48,880 |
| 2025 | 5,179 | 5,377 | 1,461 | 6,838 | 59,772 |
| Subtotal | 83,118 | 25,754 | 2,783 | 28,537 | 167,372 |
| Total U.S. | 1,085,040 | 578,611 | 21,227 | 599,838 | 1,941,405 |
| Europe Core | | | | | |
| 2012-2015 | 126,911 | 69,456 | 43,876 | 113,332 | 148,237 |
| 2016 | 27,114 | 11,577 | 5,547 | 17,124 | 79,003 |
| 2017 | 15,710 | 5,604 | (857) | 4,747 | 54,052 |
| 2018 | 34,331 | 12,302 | 3,333 | 15,635 | 99,338 |
| 2019 | 61,690 | 19,757 | 20,224 | 39,981 | 194,078 |
| 2020 | 45,146 | 17,288 | 12,576 | 29,864 | 134,890 |
| 2021 | 59,665 | 25,558 | 7,397 | 32,955 | 209,447 |
| 2022 | 67,772 | 26,901 | 4,471 | 31,372 | 246,086 |
| 2023 | 93,166 | 37,757 | 7,603 | 45,360 | 290,922 |
| 2024 | 135,606 | 58,624 | 6,222 | 64,846 | 405,324 |
| 2025 | 57,099 | 27,241 | 5,451 | 32,692 | 484,918 |
| Subtotal | 724,210 | 312,065 | 115,843 | 427,908 | 2,346,295 |
| Europe Insolvency | | | | | |
| 2014-2015 | 347 | - | 347 | 347 | - |
| 2016 | 594 | 81 | 482 | 563 | 120 |
| 2017 | 952 | 42 | 630 | 672 | 183 |
| 2018 | 1,427 | 83 | 306 | 389 | 556 |
| 2019 | 6,105 | 606 | 424 | 1,030 | 3,811 |
| 2020 | 15,517 | 1,182 | 2,185 | 3,367 | 7,071 |
| 2021 | 14,619 | 1,591 | 4,658 | 6,249 | 10,553 |
| 2022 | 15,240 | 2,791 | 2,957 | 5,748 | 19,924 |
| 2023 | 15,679 | 4,160 | 1,421 | 5,581 | 30,139 |
| 2024 | 15,241 | 5,996 | 1,076 | 7,072 | 32,886 |
| 2025 | 1,917 | 1,349 | 517 | 1,866 | 20,382 |
| Subtotal | 87,638 | 17,881 | 15,003 | 32,884 | 125,625 |
| Total Europe | 811,848 | 329,946 | 130,846 | 460,792 | 2,471,920 |
| Total other markets | 210,738 | 104,714 | 24,378 | 129,092 | 274,699 |
| Total 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 | |
|---|
| Cash Collections by Year, By Year of Purchaseas of December 31, 2025Amounts in millions |
| Purchase Period | Purchase Price (2)(3) | 1996-2015 | | 2016 | | 2017 | | 2018 | | 2019 | | 2020 | | 2021 | | 2022 | | 2023 | | 2024 | | 2025 | Total |
| U.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 | | $7,392.8 |
| 2016 | 400.5 | | - | 86.1 | | 195.3 | | 160.1 | | 116.6 | | 88.7 | | 59.9 | | 29.1 | | 17.6 | | 18.1 | | 12.9 | | 784.4 |
| 2017 | 511.9 | | - | - | | 94.3 | | 264.4 | | 247.1 | | 185.6 | | 124.8 | | 73.1 | | 41.6 | | 37.5 | | 26.6 | | 1095.0 |
| 2018 | 604.7 | | - | - | | - | | 106.3 | | 320.2 | | 304.7 | | 214.8 | | 131.6 | | 83.2 | | 68.1 | | 42.9 | | 1271.8 |
| 2019 | 432.2 | | - | - | | - | | - | | 93.4 | | 282.2 | | 237.4 | | 141.7 | | 86.1 | | 61.8 | | 37.3 | | 939.9 |
| 2020 | 415.4 | | - | - | | - | | - | | - | | 127.4 | | 274.7 | | 185.4 | | 121.3 | | 83.6 | | 50.4 | | 842.8 |
| 2021 | 339.9 | | - | - | | - | | - | | - | | - | | 73.8 | | 149.9 | | 115.3 | | 82.8 | | 52.8 | | 474.6 |
| 2022 | 275.4 | | - | - | | - | | - | | - | | - | | - | | 34.9 | | 102.4 | | 87.8 | | 58.5 | | 283.6 |
| 2023 | | 506.3 | - | - | | - | | - | | - | | - | | - | | - | | 63.5 | | 211.8 | | 185.9 | | 461.2 |
| 2024 | 727.7 | | - | - | | - | | - | | - | | - | | - | | - | | - | | 119.8 | | 374.9 | | 494.7 |
| 2025 | 531.0 | | - | - | | - | | - | | - | | - | | - | | - | | - | | - | | 106.1 | | 106.1 |
| Subtotal | 7,481.9 | | 5,186.4 | 759.9 | | 769.0 | | 868.5 | | 1,008.2 | | 1,137.9 | | 1,083.6 | | 812.8 | | 682.7 | | 836.0 | | 1,001.9 | | 14,146.9 |
| U.S. Insolvency | | | | | | | | | | | |
| 1996-2015 | 1,472.4 | | 2,290.4 | 230.4 | | 142.6 | | 78.6 | | 39.1 | | 13.6 | | 4.5 | | 2.9 | | 1.8 | | 1.4 | | 1.0 | | 2,806.3 |
| 2016 | 67.5 | | - | 10.1 | | 18.9 | | 18.2 | | 16.4 | | 13.0 | | 6.6 | | 1.3 | | 0.6 | | 0.4 | | 0.1 | | 85.6 |
| 2017 | 275.3 | | - | - | | 49.1 | | 97.3 | | 80.9 | | 58.8 | | 44.0 | | 20.8 | | 4.9 | | 2.5 | | 1.0 | | 359.3 |
| 2018 | 97.9 | | - | - | | - | | 6.7 | | 27.4 | | 30.5 | | 31.6 | | 24.6 | | 12.7 | | 2.5 | | 1.0 | | 137.0 |
| 2019 | 120.8 | | - | - | | - | | - | | 13.4 | | 30.9 | | 37.9 | | 36.8 | | 28.0 | | 14.2 | | 2.7 | | 163.9 |
| 2020 | 62.1 | | - | - | | - | | - | | - | | 6.5 | | 16.1 | | 20.4 | | 19.5 | | 17.0 | | 8.7 | | 88.2 |
| 2021 | 54.9 | | - | - | | - | | - | | - | | - | | 4.5 | | 17.7 | | 17.4 | | 15.2 | | 11.8 | | 66.6 |
| 2022 | 33.4 | | - | - | | - | | - | | - | | - | | - | | 3.2 | | 9.2 | | 11.1 | | 10.5 | | 34.0 |
| 2023 | 61.2 | | - | - | | - | | - | | - | | - | | - | | - | | 4.5 | | 14.8 | | 18.0 | | 37.3 |
| 2024 | 68.2 | | - | - | | - | | - | | - | | - | | - | | - | | - | | 12.1 | | 23.1 | | 35.2 |
| 2025 | 59.1 | | - | - | | - | | - | | - | | - | | - | | - | | - | | - | | 5.2 | | 5.2 |
| Subtotal | 2,372.8 | | 2,290.4 | 240.5 | | 210.6 | | 200.8 | | 177.2 | | 153.3 | | 145.2 | | 127.7 | | 98.6 | | 91.2 | | 83.1 | | 3,818.6 |
| Total U.S. | 9,854.7 | | 7,476.8 | 1,000.4 | | 979.6 | | 1,069.3 | | 1,185.4 | | 1,291.2 | | 1,228.8 | | 940.5 | | 781.3 | | 927.2 | | 1,085.0 | | 17,965.5 |
| Europe Core | | | | | | | | | | | |
| 2012-2015 | 1,225.8 | | 538.4 | 350.2 | | 310.3 | | 290.5 | | 241.4 | | 206.0 | | 202.4 | | 164.3 | | 142.4 | | 132.1 | | 126.9 | | 2,704.9 |
| 2016 | 333.1 | | - | 40.4 | | 78.9 | | 72.6 | | 58.0 | | 48.3 | | 46.7 | | 36.9 | | 29.7 | | 27.4 | | 27.1 | | 466.0 |
| 2017 | 252.2 | | - | - | | 17.9 | | 56.0 | | 44.1 | | 36.1 | | 34.8 | | 25.2 | | 20.2 | | 17.9 | | 15.7 | | 267.9 |
| 2018 | 341.8 | | - | - | | - | | 24.3 | | 88.7 | | 71.3 | | 69.1 | | 50.7 | | 41.6 | | 37.1 | | 34.3 | | 417.1 |
| 2019 | 518.6 | | - | - | | - | | - | | 48.0 | | 125.7 | | 121.4 | | 89.8 | | 75.1 | | 68.2 | | 61.7 | | 589.9 |
| 2020 | 324.1 | | - | - | | - | | - | | - | | 32.3 | | 91.7 | | 69.0 | | 56.1 | | 50.1 | | 45.1 | | 344.3 |
| 2021 | 412.4 | | - | - | | - | | - | | - | | - | | 48.5 | | 89.9 | | 73.0 | | 66.6 | | 59.7 | | 337.7 |
| 2022 | 359.4 | | - | - | | - | | - | | - | | - | | - | | 33.9 | | 83.8 | | 74.7 | | 67.8 | | 260.2 |
| 2023 | 410.6 | | - | - | | - | | - | | - | | - | | - | | - | | 50.2 | | 103.1 | | 93.2 | | 246.5 |
| 2024 | 451.9 | | - | - | | - | | - | | - | | - | | - | | - | | - | | 46.3 | | 135.6 | | 181.9 |
| 2025 | 512.5 | | - | - | | - | | - | | - | | - | | - | | - | | - | | - | | 57.1 | | 57.1 |
| Subtotal | 5,142.4 | | 538.4 | 390.6 | | 407.1 | | 443.4 | | 480.2 | | 519.7 | | 614.6 | | 559.7 | | 572.1 | | 623.5 | | 724.2 | | 5,873.5 |
| Europe Insolvency | | | | | | | | | | | |
| 2014-2015 | 29.9 | | 7.3 | 8.3 | | 8.2 | | 7.4 | | 5.4 | | 3.7 | | 1.9 | | 0.8 | | 0.6 | | 0.4 | | 0.3 | | 44.3 |
| 2016 | 39.3 | | - | 6.2 | | 12.7 | | 12.9 | | 10.7 | | 7.9 | | 6.0 | | 2.7 | | 1.3 | | 0.8 | | 0.6 | | 61.8 |
| 2017 | 39.2 | | - | - | | 1.2 | | 7.9 | | 9.2 | | 9.8 | | 9.4 | | 6.5 | | 3.8 | | 1.5 | | 1.0 | | 50.3 |
| 2018 | 44.9 | | - | - | | - | | 0.6 | | 8.4 | | 10.3 | | 11.7 | | 9.8 | | 7.2 | | 3.5 | | 1.4 | | 52.9 |
| 2019 | 77.2 | | - | - | | - | | - | | 5.0 | | 21.1 | | 23.9 | | 21.0 | | 17.5 | | 12.9 | | 6.1 | | 107.5 |
| 2020 | 105.4 | | - | - | | - | | - | | - | | 6.0 | | 34.6 | | 34.1 | | 29.7 | | 25.5 | | 15.5 | | 145.4 |
| 2021 | 53.2 | | - | - | | - | | - | | - | | - | | 5.5 | | 14.4 | | 14.7 | | 15.4 | | 14.6 | | 64.6 |
| 2022 | 44.6 | | - | - | | - | | - | | - | | - | | - | | 4.5 | | 12.4 | | 15.2 | | 15.2 | | 47.3 |
| 2023 | 46.7 | | - | - | | - | | - | | - | | - | | - | | - | | 4.2 | | 12.7 | | 15.7 | | 32.6 |
| 2024 | 43.4 | | - | - | | - | | - | | - | | - | | - | | - | | - | | 9.5 | | 15.2 | | 24.7 |
| 2025 | 20.8 | | - | - | | - | | - | | - | | - | | - | | - | | - | | - | | 1.9 | | 1.9 |
| Subtotal | 544.6 | | 7.3 | 14.5 | | 22.1 | | 28.8 | | 38.7 | | 58.8 | | 93.0 | | 93.8 | | 91.4 | | 97.4 | | 87.6 | | 633.3 |
| Total Europe | 5,687.0 | | 545.7 | 405.1 | | 429.2 | | 472.2 | | 518.9 | | 578.5 | | 707.6 | | 653.5 | | 663.5 | | 720.9 | | 811.8 | | 6,506.8 |
| Total other markets | $940.3 | | $33.9 | $86.5 | | $103.9 | | $83.7 | | $137.0 | | $135.9 | | $125.4 | | $135.0 | | $215.9 | | $220.5 | | $210.7 | | $1,488.4 |
| Total 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 Measures
The 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 EBITDA
Adjusted 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) | | 2025 | | 2024 |
| Net income/(loss) attributable to PRA Group, Inc. | $(305,142) | | $70,601 | |
| Adjustments: | | |
| Income tax expense | 46,735 | | 21,032 | |
| Foreign exchange (gain)/loss | (755) | | 9 | |
| Interest expense, net | 251,788 | | 229,267 | |
| Other expense | 336 | | 851 | |
| Depreciation and amortization | 9,035 | | 10,792 | |
| Impairment of real estate | 1,404 | | - | |
| Goodwill impairment | 412,611 | | - | |
| Net income attributable to noncontrolling interests | 15,168 | | 17,972 | |
| Gain on sale of equity method investment | (38,403) | | - | |
| Recoveries collected and applied to Finance receivables, net less Changes in expected recoveries | 922,697 | | 787,028 | |
| Adjusted EBITDA | $1,315,474 | | $1,137,552 | |
Adjusted Cash Efficiency Ratio
The 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 | 2023 |
|---|
| Cash collections | | $2,107,626 | | $1,868,576 | | $1,660,450 |
| Fee income | | 9,996 | | 10,023 | | 10,384 |
| Cash receipts | | 2,117,622 | | 1,878,599 | | 1,670,834 |
| Total operating expenses | | 1,232,110 | | 774,792 | | 702,062 |
| Less: Goodwill impairment | | 412,611 | | - | | - |
| Adjusted operating expenses | | 819,499 | | 774,792 | | 702,062 |
| Cash receipts less Adjusted operating expenses | | 1,298,123 | | 1,103,807 | | 968,772 |
| Adjusted cash efficiency ratio | 61.3% | | 58.8% | | 58.0% | |
Adjusted Net Income/(Loss) Attributable to PRA, Adjusted Diluted Earnings Per Share, ROATE and Adjusted ROATE
We 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 |
|---|
| 2025 | 2024 | 2023 | 2025 | 2024 | 2023 |
|---|
| Total stockholders' equity - PRA Group, Inc. | $979,851 | | $1,135,032 | | $1,167,112 | | | $1,119,881 | | $1,159,163 | | $1,166,846 |
| Goodwill | 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 | | 2023 |
| Net 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 | | 2023 |
| Net 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 | | | | | 3,515 | | - | | - |
| 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 | 2023 |
|---|
| Diluted earnings per share | $(7.79) | $1.79 | $(2.13) |
| Effect of adjusting items and dilutive shares | 9.63 | - | - |
| Adjusted diluted earnings per share | $1.84 | $1.79 | $(2.13) |
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.
Contacts
Najim Mostamand, CFA
Vice President, Investor Relations
(757) 431-7913
IR@PRAGroup.com
1.Amounts represent the average balances for the respective years.