Open the filing on EDGARPRA Group Reports First Quarter 2026 Results
Strong Start to the Year with 11% Cash Collections Growth and Net Income of $28 Million
Continued Momentum in U.S. Business with Strong Results in Europe
On Track with PRA 3.0 Strategy to Drive Enhanced Results
NORFOLK, Va., May 7, 2026 - 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 ratio of 61.8%.
- Net income attributable to PRA Group, Inc. of $28.2 million, or diluted earnings per share of $0.73.
- Adjusted EBITDA 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) of $8.5 billion, up 9.5%.
"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 $28 million and Adjusted EBITDA for the last twelve months was up 14%, growing faster than cash collections, as we continued to gain operating leverage."
"Overall, Q1 was another solid quarter, with strong execution across several operational initiatives and improved financial results. Looking ahead to the rest of the year, we plan to continue making progress on our new PRA 3.0 strategy, including modernizing our technology platforms and innovating with our new mobile app in the UK and global AI initiatives. We believe we are in a strong position to continue delivering enhanced results and value for our shareholders, as we transform PRA into a high-performing, technology-enabled global allocator of capital."
1.Calculated by dividing cash receipts less operating expenses by cash receipts. Cash receipts refers to cash collections on the Company's nonperforming loan portfolios, fees and revenue recognized from the Company's class action claims recovery services.
2.A reconciliation of net income attributable to PRA Group, Inc. to Adjusted EBITDA can be found at the end of this press release.
3.Refers to the sum of all future projected cash collections on the Company's nonperforming loan portfolios.
Cash Collections and Revenues
The following table presents cash collections by quarter and by source, as reported and on a constant currency-adjusted basis:
| Cash Collection Source | | 2026 | | | | | 2025 |
| ($ in thousands) | Q1 | Q4 | Q3 | Q2 | Q1 |
| U.S. Core | $268,409 | | $249,322 | $258,277 | $253,856 | $240,467 | |
| U.S. Insolvency | 20,141 | | 20,223 | 21,131 | 21,175 | 20,589 | |
| Europe Core | 192,019 | | 188,277 | 185,910 | 185,652 | 164,371 | |
| Europe Insolvency | 20,547 | | 19,166 | 22,658 | 24,609 | 21,205 | |
| Other markets | 50,812 | | 54,670 | 54,268 | 50,996 | 50,804 | |
| Total cash collections | $551,928 | | $531,658 | $542,244 | $536,288 | $497,436 | |
| Cash Collection Source - | | | | | |
| Constant Currency-Adjusted | | 2026 | | | | | 2025 |
| ($ in thousands) | Q1 | | | | Q1 |
| U.S. Core | $268,409 | | | | | $240,467 | |
| U.S. Insolvency | 20,141 | | | | | 20,589 | |
| Europe Core | 192,019 | | | | | 180,408 | |
| Europe Insolvency | 20,547 | | | | | 22,720 | |
| Other markets | 50,812 | | | | | 55,931 | |
| Total cash collections | $551,928 | | | | | $520,115 | |
- 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 | | 2025 |
| Portfolio income | $269,579 | | $240,958 | |
| Recoveries collected in excess of forecast | 22,698 | | 16,500 | |
| Changes in expected future recoveries | 21,188 | | 11,422 | |
| Changes in expected recoveries | 43,886 | | 27,922 | |
| Total 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
1.Reflects total cash collections in South America, Canada and Australia.
- 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 | Q1 |
| U.S. Core | $105,469 | | $102,254 | $119,672 | $160,193 | $148,903 | |
| U.S. Insolvency | 13,043 | | 10,088 | 14,809 | 22,134 | 12,059 | |
| Europe Core | 86,715 | | 152,375 | 95,239 | 142,465 | 108,390 | |
| Europe Insolvency | 4,837 | | 4,758 | 5,934 | 4,757 | 4,856 | |
| Other markets | 10,786 | | 45,326 | 19,838 | 16,956 | 17,494 | |
| Total portfolio purchases | $220,850 | | $314,801 | $255,492 | $346,505 | $291,702 | |
- 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 commitments 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 Availability
- Total 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.
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.
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.
Forward-looking statements notice
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 | 2025 |
|---|
| Revenues | | |
| Portfolio income | $269,579 | | $240,958 | |
| Changes in expected recoveries | 43,886 | | 27,922 | |
| Total portfolio revenue | 313,465 | | 268,880 | |
| Other revenue | 1,068 | | 739 | |
| Total revenues | 314,533 | | 269,619 | |
| Operating expenses | | |
| Compensation and benefits | 70,738 | | 73,323 | |
| Legal collection costs | 48,458 | | 33,394 | |
| Legal collection fees | 17,071 | | 15,230 | |
| Agency fees | 24,581 | | 21,368 | |
| Professional and outside services | 20,884 | | 21,103 | |
| Communication | 9,019 | | 10,477 | |
| Rent and occupancy | 3,258 | | 3,480 | |
| Depreciation, amortization and impairment of long-lived assets | 1,708 | | 3,769 | |
| Other operating expenses | 15,562 | | 12,898 | |
| Total operating expenses | 211,279 | | 195,042 | |
| Income from operations | 103,254 | | 74,577 | |
| Other income/(expense) | | |
| Interest expense, net | (63,518) | | (60,970) | |
| Foreign exchange gain/(loss), net | 1,054 | | (51) | |
| Other | (254) | | (180) | |
| Income before income taxes | 40,536 | | 13,376 | |
| Income tax expense | 8,764 | | 4,312 | |
| Net income | 31,772 | | 9,064 | |
| Net income attributable to noncontrolling interests | 3,562 | | 5,405 | |
| Net income attributable to PRA Group, Inc. | $28,210 | | $3,659 | |
| Net income per common share attributable to PRA Group, Inc. | | |
| Basic | $0.74 | | $0.09 | |
| Diluted | $0.73 | | $0.09 | |
| Weighted average number of shares outstanding | | |
| Basic | 38,368 | | 39,549 | |
| Diluted | 38,511 | | 39,688 | |
PRA Group, Inc.
Consolidated Balance Sheets
(Amounts in thousands)
| (unaudited) | |
|---|
| March 31, 2026 | December 31, 2025 |
|---|
| ASSETS | | |
| Cash and cash equivalents | $124,778 | $104,409 |
| Investments | 143,358 | 66,628 |
| Finance receivables, net | 4,637,094 | 4,688,024 |
| Income taxes receivable | 15,700 | 17,702 |
| Deferred tax assets, net | 70,914 | 76,955 |
| Right-of-use assets | 28,715 | 29,206 |
| Property and equipment, net | 24,567 | 24,886 |
| Goodwill | 26,871 | 26,871 |
| Prepaid expenses and other assets | 134,833 | 68,641 |
| Total assets | $5,206,830 | $5,103,322 |
| LIABILITIES AND EQUITY | | |
| Liabilities | | |
| Accrued expenses and accounts payable | $100,483 | $131,812 |
| Income taxes payable | 30,083 | 29,845 |
| Deferred tax liabilities, net | 18,733 | 17,064 |
| Lease liabilities | 31,595 | 32,160 |
| Interest-bearing deposits | 78,740 | 106,148 |
| Borrowings | 3,779,167 | 3,697,338 |
| Other liabilities | 99,475 | 48,990 |
| Total liabilities | 4,138,276 | 4,063,357 |
| 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, 38,141 shares issued and outstanding as of March 31, 2026; 100,000 shares authorized, 38,453 shares issued and outstanding as of December 31, 2025 | 381 | 385 |
| Additional paid-in capital | 3,289 | 11,474 |
| Retained earnings | 1,283,217 | 1,255,007 |
| Accumulated other comprehensive loss | (284,599) | (287,015) |
| Total stockholders' equity - PRA Group, Inc. | 1,002,288 | 979,851 |
| Noncontrolling interests | 66,266 | 60,114 |
| Total equity | 1,068,554 | 1,039,965 |
| Total liabilities and equity | $5,206,830 | $5,103,322 |
| Purchase Price Multiplesas of March 31, 2026(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 | $7,505,108 | $94,785 | 274% | 224% |
| 2016 | 400,545 | 819,619 | 32,606 | 205% | 195% |
| 2017 | 511,902 | 1,168,721 | 68,438 | 228% | 193% |
| 2018 | 604,669 | 1,373,598 | 93,421 | 227% | 199% |
| 2019 | 432,222 | 1,017,206 | 70,674 | 235% | 209% |
| 2020 | 415,384 | 940,628 | 88,849 | 226% | 215% |
| 2021 | 339,885 | 603,675 | 118,686 | 178% | 191% |
| 2022 | 275,433 | 435,742 | 140,794 | 158% | 164% |
| 2023 | 506,319 | 947,969 | 447,691 | 187% | 191% |
| 2024 | 727,672 | 1,679,170 | 1,085,766 | 231% | 211% |
| 2025 | 531,021 | 1,144,614 | 975,398 | 216% | 216% |
| 2026 | 105,469 | 212,526 | 209,118 | 202% | 202% |
| Subtotal | 7,587,396 | 17,848,576 | 3,426,226 | | |
| U.S. Insolvency | | | | |
| 1996-2015 | 1,472,385 | 2,806,689 | - | 191% | 154% |
| 2016 | 67,454 | 85,669 | 21 | 127% | 124% |
| 2017 | 275,257 | 359,605 | 182 | 131% | 125% |
| 2018 | 97,879 | 137,302 | 59 | 140% | 127% |
| 2019 | 120,845 | 164,398 | 174 | 136% | 128% |
| 2020 | 62,130 | 90,300 | 1,584 | 145% | 136% |
| 2021 | 54,898 | 74,136 | 5,237 | 135% | 136% |
| 2022 | 33,442 | 47,860 | 11,718 | 143% | 139% |
| 2023 | 61,242 | 80,321 | 38,358 | 131% | 136% |
| 2024 | 68,168 | 99,364 | 58,508 | 146% | 149% |
| 2025 | 59,091 | 93,168 | 84,236 | 158% | 160% |
| 2026 | 13,043 | 20,891 | 20,790 | 160% | 160% |
| Subtotal | 2,385,834 | 4,059,703 | 220,867 | | |
| Total U.S. | 9,973,230 | 21,908,279 | 3,647,093 | | |
| Europe Core | | | | | |
| 2012-2015 | 1,225,893 | 3,516,570 | 478,195 | 287% | 190% |
| 2016 | 333,090 | 601,998 | 142,105 | 181% | 167% |
| 2017 | 252,174 | 366,501 | 77,563 | 145% | 144% |
| 2018 | 341,775 | 574,229 | 151,942 | 168% | 148% |
| 2019 | 518,610 | 888,852 | 272,541 | 171% | 152% |
| 2020 | 324,119 | 609,550 | 212,981 | 188% | 172% |
| 2021 | 412,411 | 732,470 | 338,322 | 178% | 170% |
| 2022 | 359,447 | 600,333 | 370,631 | 167% | 162% |
| 2023 | 410,593 | 709,805 | 464,760 | 173% | 169% |
| 2024 | 451,786 | 821,118 | 685,317 | 182% | 180% |
| 2025 | 512,533 | 951,214 | 843,307 | 186% | 185% |
| 2026 | 85,057 | 157,440 | 154,812 | 185% | 185% |
| Subtotal | 5,227,488 | 10,530,080 | 4,192,476 | | |
| Europe Insolvency | | | | |
| 2014-2015 | 29,849 | 49,058 | - | 164% | 135% |
| 2016 | 39,338 | 58,616 | 440 | 149% | 130% |
| 2017 | 39,235 | 53,074 | 402 | 135% | 128% |
| 2018 | 44,908 | 53,386 | 543 | 119% | 123% |
| 2019 | 77,218 | 114,419 | 3,630 | 148% | 130% |
| 2020 | 105,440 | 162,032 | 5,399 | 154% | 129% |
| 2021 | 53,230 | 81,302 | 8,945 | 153% | 134% |
| 2022 | 44,604 | 66,962 | 20,325 | 150% | 137% |
| 2023 | 46,558 | 67,060 | 32,053 | 144% | 138% |
| 2024 | 43,459 | 64,128 | 38,821 | 148% | 147% |
| 2025 | 20,760 | 30,329 | 26,435 | 146% | 145% |
| 2026 | 4,752 | 7,346 | 7,301 | 155% | 155% |
| Subtotal | 549,351 | 807,712 | 144,294 | | |
| Total Europe | 5,776,839 | 11,337,792 | 4,336,770 | | |
| Other markets | 951,094 | 2,229,871 | 564,685 | 234% | 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.
| March 31, 2026 (year-to-date) | As of March 31, 2026 |
|---|
| Portfolio Financial Information |
| (in thousands) |
| Purchase Period | Cash Collections | Portfolio Income | Changes in Expected Recoveries | Total Portfolio Revenue | Net Finance Receivables |
| U.S. Core | | | | | |
| 1996-2015 | $10,384 | $5,487 | $2,695 | $8,182 | $31,227 |
| 2016 | 2,583 | 1,544 | (84) | 1,460 | 13,786 |
| 2017 | 5,257 | 3,270 | (775) | 2,495 | 27,494 |
| 2018 | 8,281 | 4,151 | (418) | 3,733 | 45,382 |
| 2019 | 6,631 | 3,457 | (608) | 2,849 | 33,983 |
| 2020 | 9,056 | 4,407 | (982) | 3,425 | 44,546 |
| 2021 | 10,372 | 5,050 | (486) | 4,564 | 59,591 |
| 2022 | 11,381 | 4,636 | 309 | 4,945 | 82,701 |
| 2023 | 39,177 | 18,207 | (5,753) | 12,454 | 241,850 |
| 2024 | 98,754 | 47,239 | 14,278 | 61,517 | 574,230 |
| 2025 | 63,125 | 43,364 | (2,313) | 41,051 | 500,322 |
| 2026 | 3,408 | 2,796 | 140 | 2,936 | 104,934 |
| Subtotal | 268,409 | 143,608 | 6,003 | 149,611 | 1,760,046 |
| U.S. Insolvency | | | | | |
| 1996-2015 | 235 | - | 234 | 234 | - |
| 2016 | 39 | 1 | 26 | 27 | 19 |
| 2017 | 189 | 10 | 112 | 122 | 160 |
| 2018 | 134 | 2 | 100 | 102 | 57 |
| 2019 | 430 | 6 | 316 | 322 | 168 |
| 2020 | 544 | 52 | 86 | 138 | 1,401 |
| 2021 | 2,231 | 191 | (97) | 94 | 4,943 |
| 2022 | 2,184 | 362 | (45) | 317 | 10,557 |
| 2023 | 4,590 | 1,054 | (33) | 1,021 | 33,215 |
| 2024 | 5,709 | 2,188 | (318) | 1,870 | 45,042 |
| 2025 | 3,753 | 2,800 | (857) | 1,943 | 57,786 |
| 2026 | 103 | 143 | 41 | 184 | 13,117 |
| Subtotal | 20,141 | 6,809 | (435) | 6,374 | 166,465 |
| Total U.S. | 288,550 | 150,417 | 5,568 | 155,985 | 1,926,511 |
| Europe Core | | | | | |
| 2012-2015 | 29,774 | 16,872 | 7,948 | 24,820 | 141,516 |
| 2016 | 6,773 | 2,758 | 5,129 | 7,887 | 80,998 |
| 2017 | 3,812 | 1,290 | 502 | 1,792 | 51,383 |
| 2018 | 7,984 | 2,910 | 3,002 | 5,912 | 95,137 |
| 2019 | 14,181 | 4,758 | 1,506 | 6,264 | 183,088 |
| 2020 | 9,918 | 4,154 | 1,275 | 5,429 | 128,550 |
| 2021 | 14,216 | 6,146 | 1,182 | 7,328 | 204,281 |
| 2022 | 15,933 | 6,390 | 2,068 | 8,458 | 233,121 |
| 2023 | 21,308 | 8,862 | 4,282 | 13,144 | 277,845 |
| 2024 | 29,869 | 13,672 | 3,368 | 17,040 | 385,315 |
| 2025 | 35,581 | 17,411 | 240 | 17,651 | 458,722 |
| 2026 | 2,670 | 937 | 723 | 1,660 | 83,953 |
| Subtotal | 192,019 | 86,160 | 31,225 | 117,385 | 2,323,909 |
| Europe Insolvency | | | | | |
| 2014-2015 | 98 | - | 98 | 98 | - |
| 2016 | 124 | 18 | 102 | 120 | 115 |
| 2017 | 176 | 8 | 230 | 238 | 242 |
| 2018 | 227 | 10 | 93 | 103 | 424 |
| 2019 | 809 | 88 | (30) | 58 | 3,003 |
| 2020 | 2,039 | 150 | (11) | 139 | 5,075 |
| 2021 | 3,682 | 263 | 1,236 | 1,499 | 8,218 |
| 2022 | 3,659 | 542 | 1,138 | 1,680 | 17,622 |
| 2023 | 4,222 | 863 | 751 | 1,614 | 27,020 |
| 2024 | 4,003 | 1,307 | 194 | 1,501 | 29,818 |
| 2025 | 1,463 | 700 | 229 | 929 | 19,481 |
| 2026 | 45 | 35 | 33 | 68 | 4,747 |
| Subtotal | 20,547 | 3,984 | 4,063 | 8,047 | 115,765 |
| Total Europe | 212,566 | 90,144 | 35,288 | 125,432 | 2,439,674 |
| Other markets | 50,812 | 29,018 | 3,030 | 32,048 | 270,909 |
| Total 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.
| | | | | | (in millions) | | | | | | | |
|---|
| Cash Collections by Year, By Year of Purchase as of March 31, 2026 |
| Purchase Period | Purchase Price (2)(3) | 1996-2015 | | 2016 | | 2017 | | 2018 | | 2019 | | 2020 | | 2021 | | 2022 | | 2023 | | 2024 | | 2025 | | 2026 | 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 | | $10.4 | | $7,403.2 |
| 2016 | 400.5 | | - | 86.1 | | 195.3 | | 160.1 | | 116.6 | | 88.7 | | 59.9 | | 29.1 | | 17.6 | | 18.1 | | 12.9 | | 2.6 | | 787.0 |
| 2017 | 511.9 | | - | - | | 94.3 | | 264.4 | | 247.1 | | 185.6 | | 124.8 | | 73.1 | | 41.6 | | 37.5 | | 26.6 | | 5.3 | | 1100.3 |
| 2018 | 604.7 | | - | - | | - | | 106.3 | | 320.2 | | 304.7 | | 214.8 | | 131.6 | | 83.2 | | 68.1 | | 42.9 | | 8.3 | | 1280.1 |
| 2019 | 432.2 | | - | - | | - | | - | | 93.4 | | 282.2 | | 237.4 | | 141.7 | | 86.1 | | 61.8 | | 37.3 | | 6.6 | | 946.5 |
| 2020 | 415.4 | | - | - | | - | | - | | - | | 127.4 | | 274.7 | | 185.4 | | 121.3 | | 83.6 | | 50.4 | | 9.1 | | 851.9 |
| 2021 | 339.9 | | - | - | | - | | - | | - | | - | | 73.8 | | 149.9 | | 115.3 | | 82.8 | | 52.8 | | 10.4 | | 485.0 |
| 2022 | 275.4 | | - | - | | - | | - | | - | | - | | - | | 34.9 | | 102.4 | | 87.8 | | 58.5 | | 11.4 | | 295.0 |
| 2023 | | 506.3 | - | - | | - | | - | | - | | - | | - | | - | | 63.5 | | 211.8 | | 185.9 | | 39.2 | | 500.4 |
| 2024 | 727.7 | | - | - | | - | | - | | - | | - | | - | | - | | - | | 119.8 | | 374.9 | | 98.8 | | 593.5 |
| 2025 | 531.0 | | - | - | | - | | - | | - | | - | | - | | - | | - | | - | | 106.1 | | 63.1 | | 169.2 |
| 2026 | 105.5 | | - | - | | - | | - | | - | | - | | - | | - | | - | | - | | - | | 3.2 | | 3.2 |
| Subtotal | 7,587.4 | | 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 | | 268.4 | | 14,415.3 |
| 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 | | 0.2 | | 2,806.5 |
| 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 | | 0.2 | | 359.5 |
| 2018 | 97.9 | | - | - | | - | | 6.7 | | 27.4 | | 30.5 | | 31.6 | | 24.6 | | 12.7 | | 2.5 | | 1.0 | | 0.1 | | 137.1 |
| 2019 | 120.8 | | - | - | | - | | - | | 13.4 | | 30.9 | | 37.9 | | 36.8 | | 28.0 | | 14.2 | | 2.7 | | 0.4 | | 164.3 |
| 2020 | 62.1 | | - | - | | - | | - | | - | | 6.5 | | 16.1 | | 20.4 | | 19.5 | | 17.0 | | 8.7 | | 0.5 | | 88.7 |
| 2021 | 54.9 | | - | - | | - | | - | | - | | - | | 4.5 | | 17.7 | | 17.4 | | 15.2 | | 11.8 | | 2.2 | | 68.8 |
| 2022 | 33.4 | | - | - | | - | | - | | - | | - | | - | | 3.2 | | 9.2 | | 11.1 | | 10.5 | | 2.2 | | 36.2 |
| 2023 | 61.2 | | - | - | | - | | - | | - | | - | | - | | - | | 4.5 | | 14.8 | | 18.0 | | 4.6 | | 41.9 |
| 2024 | 68.2 | | - | - | | - | | - | | - | | - | | - | | - | | - | | 12.1 | | 23.1 | | 5.7 | | 40.9 |
| 2025 | 59.1 | | - | - | | - | | - | | - | | - | | - | | - | | - | | - | | 5.2 | | 3.8 | | 9.0 |
| 2026 | 13.0 | | - | - | | - | | - | | - | | - | | - | | - | | - | | - | | - | | 0.2 | | 0.2 |
| Subtotal | 2,385.8 | | 2,290.4 | 240.5 | | 210.6 | | 200.8 | | 177.2 | | 153.3 | | 145.2 | | 127.7 | | 98.6 | | 91.2 | | 83.1 | | 20.1 | | 3,838.7 |
| Total U.S. | 9,973.2 | | 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 | | 288.5 | | 18,254.0 |
| 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 | | 29.8 | | 2,734.7 |
| 2016 | 333.1 | | - | 40.4 | | 78.9 | | 72.6 | | 58.0 | | 48.3 | | 46.7 | | 36.9 | | 29.7 | | 27.4 | | 27.1 | | 6.8 | | 472.8 |
| 2017 | 252.2 | | - | - | | 17.9 | | 56.0 | | 44.1 | | 36.1 | | 34.8 | | 25.2 | | 20.2 | | 17.9 | | 15.7 | | 3.8 | | 271.7 |
| 2018 | 341.8 | | - | - | | - | | 24.3 | | 88.7 | | 71.3 | | 69.1 | | 50.7 | | 41.6 | | 37.1 | | 34.3 | | 8.0 | | 425.1 |
| 2019 | 518.6 | | - | - | | - | | - | | 48.0 | | 125.7 | | 121.4 | | 89.8 | | 75.1 | | 68.2 | | 61.7 | | 14.2 | | 604.1 |
| 2020 | 324.1 | | - | - | | - | | - | | - | | 32.3 | | 91.7 | | 69.0 | | 56.1 | | 50.1 | | 45.1 | | 9.9 | | 354.2 |
| 2021 | 412.4 | | - | - | | - | | - | | - | | - | | 48.5 | | 89.9 | | 73.0 | | 66.6 | | 59.7 | | 14.2 | | 351.9 |
| 2022 | 359.4 | | - | - | | - | | - | | - | | - | | - | | 33.9 | | 83.8 | | 74.7 | | 67.8 | | 15.9 | | 276.1 |
| 2023 | 410.6 | | - | - | | - | | - | | - | | - | | - | | - | | 50.2 | | 103.1 | | 93.2 | | 21.3 | | 267.8 |
| 2024 | 451.9 | | - | - | | - | | - | | - | | - | | - | | - | | - | | 46.3 | | 135.6 | | 29.9 | | 211.8 |
| 2025 | 512.5 | | - | - | | - | | - | | - | | - | | - | | - | | - | | - | | 57.1 | | 35.6 | | 92.7 |
| 2026 | 85.1 | | - | - | | - | | - | | - | | - | | - | | - | | - | | - | | - | | 2.6 | | 2.6 |
| Subtotal | 5,227.5 | | 538.4 | 390.6 | | 407.1 | | 443.4 | | 480.2 | | 519.7 | | 614.6 | | 559.7 | | 572.1 | | 623.5 | | 724.2 | | 192.0 | | 6,065.5 |
| 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 | | 0.1 | | 44.4 |
| 2016 | 39.3 | | - | 6.2 | | 12.7 | | 12.9 | | 10.7 | | 7.9 | | 6.0 | | 2.7 | | 1.3 | | 0.8 | | 0.6 | | 0.1 | | 61.9 |
| 2017 | 39.2 | | - | - | | 1.2 | | 7.9 | | 9.2 | | 9.8 | | 9.4 | | 6.5 | | 3.8 | | 1.5 | | 1.0 | | 0.2 | | 50.5 |
| 2018 | 44.9 | | - | - | | - | | 0.6 | | 8.4 | | 10.3 | | 11.7 | | 9.8 | | 7.2 | | 3.5 | | 1.4 | | 0.2 | | 53.1 |
| 2019 | 77.2 | | - | - | | - | | - | | 5.0 | | 21.1 | | 23.9 | | 21.0 | | 17.5 | | 12.9 | | 6.1 | | 0.8 | | 108.3 |
| 2020 | 105.4 | | - | - | | - | | - | | - | | 6.0 | | 34.6 | | 34.1 | | 29.7 | | 25.5 | | 15.5 | | 2.0 | | 147.4 |
| 2021 | 53.2 | | - | - | | - | | - | | - | | - | | 5.5 | | 14.4 | | 14.7 | | 15.4 | | 14.6 | | 3.7 | | 68.3 |
| 2022 | 44.6 | | - | - | | - | | - | | - | | - | | - | | 4.5 | | 12.4 | | 15.2 | | 15.2 | | 3.7 | | 51.0 |
| 2023 | 46.7 | | - | - | | - | | - | | - | | - | | - | | - | | 4.2 | | 12.7 | | 15.7 | | 4.2 | | 36.8 |
| 2024 | 43.4 | | - | - | | - | | - | | - | | - | | - | | - | | - | | 9.5 | | 15.2 | | 4.0 | | 28.7 |
| 2025 | 20.8 | | - | - | | - | | - | | - | | - | | - | | - | | - | | - | | 1.9 | | 1.5 | | 3.4 |
| 2026 | 4.8 | | - | - | | - | | - | | - | | - | | - | | - | | - | | - | | - | | - | | - |
| Subtotal | 549.4 | | 7.3 | 14.5 | | 22.1 | | 28.8 | | 38.7 | | 58.8 | | 93.0 | | 93.8 | | 91.4 | | 97.4 | | 87.5 | | 20.5 | | 653.8 |
| Total Europe | 5,776.9 | | 545.7 | 405.1 | | 429.2 | | 472.2 | | 518.9 | | 578.5 | | 707.6 | | 653.5 | | 663.5 | | 720.9 | | 811.7 | | 212.5 | | 6,719.3 |
| Other markets | 951.1 | | 33.9 | 86.5 | | 103.9 | | 83.7 | | 137.0 | | 135.9 | | 125.4 | | 135.0 | | 215.9 | | 220.5 | | 210.7 | | 50.9 | | 1,539.3 |
| Total 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 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 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.
| LTM | Year Ended |
|---|
| Adjusted EBITDA Reconciliation ($ in thousands) | March 31, 2026 | December 31, 2025 |
| Net loss attributable to PRA Group, Inc. | $(280,591) | $(305,142) |
| Adjustments: | | |
| Income tax expense | 51,187 | 46,735 |
| Foreign exchange gain | (1,860) | (755) |
| Interest expense, net | 254,336 | 251,788 |
| Other expense | 410 | 336 |
| Depreciation and amortization | 7,805 | 9,035 |
| Impairment of real estate | 573 | 1,404 |
| Goodwill impairment | 412,611 | 412,611 |
| Net income attributable to noncontrolling interests | 13,325 | 15,168 |
| Gain on sale of equity method investment | (38,403) | (38,403) |
| Recoveries collected and applied to Finance receivables, net less Changes in expected recoveries | 929,206 | 922,697 |
| Adjusted EBITDA | $1,348,599 | $1,315,474 |
ROATE
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 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 |
|---|
| Balance as of Period End | First Quarter |
|---|
| March 31, 2026 | March 31, 2025 | 2026 | 2025 |
|---|
| Total stockholders' equity - PRA Group, Inc. | $1,002,288 | $1,219,108 | | $991,068 | $1,177,070 | |
| Goodwill | 26,871 | 420,715 | | 26,871 | | 408,536 |
| Other intangible assets | 1,344 | 1,488 | | 1,390 | | 1,471 |
| Average tangible equity | | | | $962,807 | | $767,063 |
| | | ROE and ROATE |
| | | First Quarter |
| | | | 2026 | | 2025 |
| Net income attributable to PRA Group, Inc. | | | | $28,210 | | $3,659 |
| Return on equity | | | 11.4% | | 1.2% | |
| Return on average tangible equity | | | 11.7% | | 1.9% | |
Contacts
Najim Mostamand, CFA
Vice President, Investor Relations
757-431-7913
IR@PRAGroup.com
1.Amounts represent the average balances for the respective periods.
2.Based on annualized Net income attributable to PRA Group, Inc.