Open the filing on EDGARPRA Group Reports Second Quarter 2026 Results
$58 Million Net Income Driven by $349 Million Increase in Europe ERC Following Comprehensive European Portfolio Review and Strong Long-Term Performance
Continued to Deliver on Significant Execution Milestones Under PRA 3.0 Strategy, Including Additional Cost Reductions, Call Center Footprint Consolidation and Technology Modernization
Repurchased $10 Million of Shares During the Quarter; Board of Directors Authorized New Share Repurchase Program for up to $150 Million
NORFOLK, Va., August 6, 2026 - PRA Group, Inc. (Nasdaq: PRAA) (the "Company"), a global leader in acquiring and collecting nonperforming loans, today reported its financial results for the second quarter of 2026 ("Q2 2026").
Q2 2026 Highlights (vs. Q2 2025)
- Total cash collections of $559 million, up 4%.
- Net income attributable to PRA Group, Inc. of $58 million, or diluted earnings per share of $1.51.
- Estimated remaining collections (ERC) of $8.9 billion, up 7%.
- Adjusted EBITDA of $1.4 billion, up 10%.
- Cash efficiency ratio of 61%.
- Total portfolio purchases of $297 million, in line with expectations.
"We continued to execute against our PRA 3.0 strategy during the second quarter to drive higher returns and long-term shareholder value," said Martin Sjolund, president and chief executive officer. "We generated continued growth in cash collections, maintained strong cash efficiency, invested nearly $300 million in portfolio purchases, and delivered higher earnings. We also performed a comprehensive review of our European portfolios as part of our quarterly portfolio assessment. This review resulted in an approximately $349 million increase in European ERC, reflecting more than six years of sustained cash overperformance in Europe, as well as enhancements to our analytical processes and forecasting capabilities. We believe this is an important milestone that better aligns our European ERC with the long trend of historical overperformance of the European portfolios. As a result of this change, we expect higher levels of portfolio income going forward and more moderate levels of changes in expected recoveries over the long-term."
"We also achieved a number of important execution milestones during the quarter. We continued reducing costs and simplifying the organization, further consolidated our U.S. call center footprint, expanded our AI capabilities, and maintained a disciplined approach to capital allocation. Our teams are moving with pace and rigor across all three vectors of our PRA 3.0 strategy, and we are beginning to see the benefits of these actions reflected in our financial results through record ERC levels, growing adjusted EBITDA, and a strong funding profile. We remain focused on improving financial performance, further strengthening the balance sheet, and delivering long-term value for shareholders."
1.Refers to the sum of all future projected cash collections on the Company's nonperforming loan portfolios.
2.For the 12 months ended June 30, 2026. A reconciliation of net income attributable to PRA Group, Inc. to Adjusted EBITDA can be found at the end of this press release.
3.Calculated by dividing cash receipts less operating expenses by cash receipts. Cash receipts refers to cash collections on the Company's nonperforming loan portfolios, fees and revenue recognized from the Company's class action claims recovery services.
Cash Collections and Revenues
The following table presents cash collections by quarter and by source, as reported and on a constant currency-adjusted basis:
| Cash Collection Source | | | | 2026 | | | | 2025 |
| ($ in thousands) | Q2 | Q1 | Q4 | Q3 | Q2 |
| U.S. Core | $269,678 | | $268,409 | | $249,322 | $258,277 | $253,856 | |
| U.S. Insolvency | 21,434 | | 20,141 | | 20,223 | 21,131 | 21,175 | |
| Europe Core | 200,420 | | 192,019 | | 188,277 | 185,910 | 185,652 | |
| Europe Insolvency | 17,658 | | 20,547 | | 19,166 | 22,658 | 24,609 | |
| Other markets | 49,355 | | 50,812 | | 54,670 | 54,268 | 50,996 | |
| Total cash collections | $558,545 | | $551,928 | | $531,658 | $542,244 | $536,288 | |
| Cash Collection Source - | | | | | |
| Constant Currency-Adjusted | | 2026 | | | | | 2025 |
| ($ in thousands) | Q2 | | | | Q2 |
| U.S. Core | $269,678 | | | | | $253,856 | |
| U.S. Insolvency | 21,434 | | | | | 21,175 | |
| Europe Core | 200,420 | | | | | 189,826 | |
| Europe Insolvency | 17,658 | | | | | 24,761 | |
| Other markets | 49,355 | | | | | 56,025 | |
| Total cash collections | $558,545 | | | | | $545,643 | |
- Total cash collections in Q2 2026 increased 4% to $559 million, compared to $536 million in the second quarter of 2025 ("Q2 2025"), driven by continued strength in the U.S. legal and digital collections channels and in our European business.
| Three Months Ended June 30, |
|---|
| ($ in thousands) | | 2026 | | 2025 |
| Portfolio income | $267,799 | | $250,934 | |
| Recoveries collected in excess of forecast | 22,742 | | 40,302 | |
| Changes in expected future recoveries | 74,182 | | (7,010) | |
| Changes in expected recoveries | 96,924 | | 33,292 | |
| Total portfolio revenue | $364,723 | | $284,226 | |
- Portfolio income in Q2 2026 increased 7% to $268 million, compared to $251 million in Q2 2025, driven by strong recent purchases at attractive returns.
- Changes in expected recoveries in Q2 2026 increased to $97 million, compared to $33 million in Q2 2025. The increase was primarily driven by the approximately $349 million increase in European ERC following a comprehensive review as part of the Company's quarterly portfolio assessment. The comprehensive review reflected more than six years of sustained cash overperformance across the Company's European business.
- Total portfolio revenue in Q2 2026 increased 28% to $365 million, compared to $284 million in Q2 2025.
1.Reflects total cash collections in South America, Canada and Australia.
Expenses
- Operating expenses in Q2 2026 increased $16 million to $219 million, compared to $203 million in Q2 2025, driven primarily by a $15 million increase in legal collection costs to support future cash collections growth.
- Compensation and benefits expense decreased $5 million, primarily due to workforce reductions and other cost actions implemented during the past year.
- Communication expense decreased $2 million, reflecting the increased use of more cost-efficient digital collection strategies.
- Operating expenses in Q2 2026 included $5 million of expenses to reorganize the Company's U.S. business. This was comprised of $2 million of severance expenses related to the corporate and overhead headcount reduction during the quarter, as well as $3 million of real estate impairment and other expenses related to the consolidation of the Company's owned and leased call center facilities.
- Interest expense, net in Q2 2026 increased to $64 million, compared to $62 million in Q2 2025, primarily reflecting an increase in debt balances.
- The effective tax rate for the quarter was 33%.
Portfolio Purchases
| Portfolio Purchase Source | | | 2026 | | | | 2025 |
| ($ in thousands) | Q2 | Q1 | Q4 | Q3 | Q2 |
| U.S. Core | $90,227 | $105,469 | | $102,254 | $119,672 | $160,193 | |
| U.S. Insolvency | 19,220 | 13,043 | | 10,088 | 14,809 | 22,134 | |
| Europe Core | 164,620 | 86,715 | | 152,375 | 95,239 | 142,465 | |
| Europe Insolvency | 9,817 | 4,837 | | 4,758 | 5,934 | 4,757 | |
| Other markets | 12,687 | 10,786 | | 45,326 | 19,838 | 16,956 | |
| Total portfolio purchases | $296,571 | $220,850 | | $314,801 | $255,492 | $346,505 | |
- The Company purchased $297 million in portfolios of nonperforming loans in Q2 2026, as it continues to be disciplined with its investments and return thresholds.
- At the end of Q2 2026, the Company had in place estimated forward flow commitments of $219 million over the next 12 months, comprised of $117 million in Europe, $86 million in the U.S., and $15 million in other markets.
Credit Availability
- Total availability under the Company's credit facilities as of June 30, 2026 was $998 million, comprised of $733 million based on current ERC and subject to debt covenants, and $265 million of additional availability subject to borrowing base and debt covenants, including advance rates.
Share Repurchases
- During Q2 2026, the Company repurchased $10 million of its outstanding common stock.
- On August 3, 2026, the Company's board of directors authorized a new $150 million program.
The new share repurchase program has no stated expiration date and repurchases may be made through open market purchases or other available means at the Company's discretion, subject to applicable regulatory requirements. The amount and timing of share repurchases depend on several factors, including the Company's capital allocation priorities, financial performance, market conditions,
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.
valuation, leverage, liquidity, and the terms of its existing debt agreements. The new share repurchase program remains subject to the discretion of the Company's board of directors.
“We continue to maintain a disciplined capital allocation framework that prioritizes portfolio purchases at attractive returns and investments that enhance our operating performance, while also undertaking opportunistic share repurchases when we see an opportunity to drive value for our shareholders,” said Rakesh Sehgal, executive vice president and chief financial officer. "This new share repurchase program provides additional flexibility in how we deploy capital and reflects our commitment to long-term shareholder value."
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 August 6, 2027, or call 646-517-4150 in the U.S. or 1-888-660-6345 outside the U.S. and use access code 53963# until August 13, 2026.
About PRA Group, Inc.
As a global industry leader with more than 30 years of experience, PRA Group, Inc. (Nasdaq: PRAA) specializes in acquiring and collecting nonperforming loans. PRA Group purchases portfolios from banks and other creditors and, through its subsidiaries, collaborates with customers to help them resolve their debt. Headquartered in Norfolk, Virginia, PRA Group has operations in the U.S., Europe, and other markets. 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.
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 June 30, | Six Months Ended June 30, |
|---|
| 2026 | 2025 | 2026 | 2025 |
|---|
| Revenues | | | | |
| Portfolio income | $267,799 | | $250,934 | | $537,378 | | $491,892 | |
| Changes in expected recoveries | 96,924 | | 33,292 | | 140,810 | | 61,214 | |
| Total portfolio revenue | 364,723 | | 284,226 | | 678,188 | | 553,106 | |
| Other revenue | 7,451 | | 3,462 | | 8,519 | | 4,201 | |
| Total revenues | 372,174 | | 287,688 | | 686,707 | | 557,307 | |
| Operating expenses | | | | |
| Compensation and benefits | 70,377 | | 75,724 | | 141,115 | | 149,047 | |
| Legal collection costs | 52,525 | | 37,583 | | 100,983 | | 70,977 | |
| Legal collection fees | 18,386 | | 15,625 | | 35,457 | | 30,855 | |
| Agency fees | 23,214 | | 22,688 | | 47,795 | | 44,056 | |
| Professional and outside services | 22,512 | | 21,071 | | 43,396 | | 42,174 | |
| Communication | 7,664 | | 9,417 | | 16,683 | | 19,894 | |
| Rent and occupancy | 3,730 | | 3,504 | | 6,988 | | 6,984 | |
| Depreciation, amortization and impairment of long-lived assets | 4,724 | | 2,503 | | 6,432 | | 6,272 | |
| Other operating expenses | 15,760 | | 14,462 | | 31,322 | | 27,360 | |
| Total operating expenses | 218,892 | | 202,577 | | 430,171 | | 397,619 | |
| Income from operations | 153,282 | | 85,111 | | 256,536 | | 159,688 | |
| Other income/(expense) | | | | |
| Interest expense, net | (64,363) | | (62,361) | | (127,881) | | (123,331) | |
| Gain on sale of equity method investment | - | | 38,403 | | - | | 38,403 | |
| Foreign exchange gain/(loss), net | (501) | | 50 | | 553 | | (1) | |
| Other | (92) | | (75) | | (346) | | (255) | |
| Income before income taxes | 88,326 | | 61,128 | | 128,862 | | 74,504 | |
| Income tax expense | 29,385 | | 15,415 | | 38,149 | | 19,727 | |
| Net income | 58,941 | | 45,713 | | 90,713 | | 54,777 | |
| Net income attributable to noncontrolling interests | 1,024 | | 3,339 | | 4,586 | | 8,744 | |
| Net income attributable to PRA Group, Inc. | $57,917 | | $42,374 | | $86,127 | | $46,033 | |
| Net income per common share attributable to PRA Group, Inc. | | | | |
| Basic | $1.52 | | $1.08 | | $2.25 | | $1.17 | |
| Diluted | $1.51 | | $1.08 | | $2.24 | | $1.16 | |
| Weighted average number of shares outstanding | | | | |
| Basic | 38,104 | | 39,323 | | 38,236 | | 39,436 | |
| Diluted | 38,303 | | 39,385 | | 38,407 | | 39,536 | |
PRA Group, Inc.
Consolidated Balance Sheets
(Amounts in thousands)
| (unaudited) | |
|---|
| June 30, 2026 | December 31, 2025 |
|---|
| ASSETS | | |
| Cash and cash equivalents | $132,431 | $104,409 |
| Investments | 145,473 | 66,628 |
| Finance receivables, net | 4,717,204 | 4,688,024 |
| Income taxes receivable | 20,912 | 17,702 |
| Deferred tax assets, net | 64,936 | 76,955 |
| Right-of-use assets | 27,836 | 29,206 |
| Property and equipment, net | 22,213 | 24,886 |
| Goodwill | 26,871 | 26,871 |
| Prepaid expenses and other assets | 80,891 | 68,641 |
| Total assets | $5,238,767 | $5,103,322 |
| LIABILITIES AND EQUITY | | |
| Liabilities | | |
| Accrued expenses and accounts payable | $129,175 | $131,812 |
| Income taxes payable | 36,356 | 29,845 |
| Deferred tax liabilities, net | 32,240 | 17,064 |
| Lease liabilities | 30,681 | 32,160 |
| Interest-bearing deposits | 100,460 | 106,148 |
| Borrowings | 3,759,353 | 3,697,338 |
| Other liabilities | 37,605 | 48,990 |
| Total liabilities | 4,125,870 | 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, 37,648 shares issued and outstanding as of June 30, 2026; 100,000 shares authorized, 38,453 shares issued and outstanding as of December 31, 2025 | 376 | 385 |
| Additional paid-in capital | - | 11,474 |
| Retained earnings | 1,338,814 | 1,255,007 |
| Accumulated other comprehensive loss | (293,721) | (287,015) |
| Total stockholders' equity - PRA Group, Inc. | 1,045,469 | 979,851 |
| Noncontrolling interests | 67,428 | 60,114 |
| Total equity | 1,112,897 | 1,039,965 |
| Total liabilities and equity | $5,238,767 | $5,103,322 |
| Purchase Price Multiplesas of June 30, 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 | $7,509,514 | $88,885 | 274% | 223% |
| 2016 | 400,545 | 820,678 | 31,073 | 205% | 195% |
| 2017 | 511,902 | 1,168,691 | 63,472 | 228% | 193% |
| 2018 | 604,669 | 1,376,064 | 87,769 | 228% | 199% |
| 2019 | 432,222 | 1,017,231 | 64,379 | 235% | 209% |
| 2020 | 415,384 | 940,625 | 80,613 | 226% | 215% |
| 2021 | 339,885 | 602,989 | 108,705 | 177% | 191% |
| 2022 | 275,433 | 429,264 | 124,219 | 156% | 164% |
| 2023 | 506,319 | 942,514 | 405,841 | 186% | 191% |
| 2024 | 727,672 | 1,679,034 | 993,374 | 231% | 211% |
| 2025 | 531,021 | 1,160,216 | 920,909 | 218% | 216% |
| 2026 | 195,696 | 407,198 | 392,750 | 208% | 208% |
| Subtotal | 7,677,623 | 18,054,018 | 3,361,989 | | |
| U.S. Insolvency | | | | |
| 1996-2015 | 1,472,385 | 2,806,860 | - | 191% | 154% |
| 2016 | 67,454 | 85,680 | 12 | 127% | 124% |
| 2017 | 275,257 | 359,737 | 126 | 131% | 125% |
| 2018 | 97,879 | 137,413 | 34 | 140% | 127% |
| 2019 | 120,845 | 164,637 | 90 | 136% | 128% |
| 2020 | 62,130 | 90,396 | 1,343 | 145% | 136% |
| 2021 | 54,898 | 73,841 | 3,209 | 135% | 136% |
| 2022 | 33,442 | 48,002 | 9,676 | 144% | 139% |
| 2023 | 61,242 | 80,697 | 33,878 | 132% | 136% |
| 2024 | 68,168 | 99,458 | 52,263 | 146% | 149% |
| 2025 | 59,091 | 93,346 | 79,735 | 158% | 160% |
| 2026 | 32,264 | 51,036 | 50,466 | 158% | 158% |
| Subtotal | 2,405,055 | 4,091,103 | 230,832 | | |
| Total U.S. | 10,082,678 | 22,145,121 | 3,592,821 | | |
| Europe Core | | | | | |
| 2012-2015 | 1,225,893 | 3,793,428 | 693,140 | 309% | 190% |
| 2016 | 333,090 | 636,868 | 169,208 | 191% | 167% |
| 2017 | 252,174 | 375,695 | 82,828 | 149% | 144% |
| 2018 | 341,775 | 589,860 | 158,170 | 173% | 148% |
| 2019 | 518,610 | 917,830 | 287,242 | 177% | 152% |
| 2020 | 324,119 | 617,610 | 208,905 | 191% | 172% |
| 2021 | 412,411 | 743,743 | 334,084 | 180% | 170% |
| 2022 | 359,447 | 593,873 | 344,363 | 165% | 162% |
| 2023 | 410,593 | 750,983 | 482,569 | 183% | 169% |
| 2024 | 451,786 | 812,676 | 641,676 | 180% | 180% |
| 2025 | 512,533 | 938,291 | 790,093 | 183% | 185% |
| 2026 | 247,303 | 461,433 | 447,812 | 187% | 187% |
| Subtotal | 5,389,734 | 11,232,290 | 4,640,090 | | |
| Europe Insolvency | | | | |
| 2014-2015 | 29,849 | 49,127 | - | 165% | 135% |
| 2016 | 39,338 | 60,180 | 2,051 | 153% | 130% |
| 2017 | 39,235 | 54,033 | 1,161 | 138% | 128% |
| 2018 | 44,908 | 53,667 | 622 | 120% | 123% |
| 2019 | 77,218 | 115,235 | 3,878 | 149% | 130% |
| 2020 | 105,440 | 162,142 | 4,144 | 154% | 129% |
| 2021 | 53,230 | 82,097 | 7,770 | 154% | 134% |
| 2022 | 44,604 | 68,715 | 19,227 | 154% | 137% |
| 2023 | 46,558 | 74,356 | 35,647 | 160% | 138% |
| 2024 | 43,459 | 72,755 | 44,187 | 167% | 147% |
| 2025 | 20,760 | 30,862 | 25,485 | 149% | 145% |
| 2026 | 14,420 | 22,458 | 21,920 | 156% | 156% |
| Subtotal | 559,019 | 845,627 | 166,092 | | |
| Total Europe | 5,948,753 | 12,077,917 | 4,806,182 | | |
| Other markets | 963,416 | 2,208,916 | 495,513 | 229% | 204% |
| Total PRA Group | $16,994,847 | $36,431,954 | $8,894,515 | | |
(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 June 30, 2026 exchange rate.
(5)Reflects all vintages in South America, Canada and Australia.
| June 30, 2026 (year-to-date) | As of June 30, 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 | $20,689 | $10,589 | $6,121 | $16,710 | $29,450 |
| 2016 | 5,175 | 2,958 | 340 | 3,298 | 13,032 |
| 2017 | 10,193 | 6,227 | (1,249) | 4,978 | 25,041 |
| 2018 | 16,399 | 7,906 | 1,328 | 9,234 | 42,763 |
| 2019 | 12,951 | 6,560 | (771) | 5,789 | 30,599 |
| 2020 | 17,289 | 8,301 | (1,029) | 7,272 | 40,157 |
| 2021 | 19,667 | 9,619 | (1,052) | 8,567 | 54,296 |
| 2022 | 21,478 | 8,915 | (4,280) | 4,635 | 72,290 |
| 2023 | 75,573 | 34,498 | (10,805) | 23,693 | 216,652 |
| 2024 | 191,009 | 91,298 | 9,645 | 100,943 | 521,294 |
| 2025 | 133,216 | 84,546 | 1,459 | 86,005 | 474,993 |
| 2026 | 14,448 | 13,730 | (632) | 13,098 | 194,158 |
| Subtotal | 538,087 | 285,147 | (925) | 284,222 | 1,714,725 |
| U.S. Insolvency | | | | | |
| 1996-2015 | 406 | - | 405 | 405 | - |
| 2016 | 59 | 2 | 38 | 40 | 11 |
| 2017 | 376 | 17 | 243 | 260 | 111 |
| 2018 | 270 | 4 | 211 | 215 | 33 |
| 2019 | 754 | 10 | 556 | 566 | 88 |
| 2020 | 880 | 94 | 168 | 262 | 1,186 |
| 2021 | 3,965 | 321 | (384) | (63) | 3,053 |
| 2022 | 4,368 | 668 | 96 | 764 | 8,821 |
| 2023 | 9,447 | 1,999 | 343 | 2,342 | 29,679 |
| 2024 | 12,048 | 4,187 | 46 | 4,233 | 41,062 |
| 2025 | 8,432 | 5,485 | (613) | 4,872 | 55,943 |
| 2026 | 570 | 1,005 | 188 | 1,193 | 32,709 |
| Subtotal | 41,575 | 13,792 | 1,297 | 15,089 | 172,696 |
| Total U.S. | 579,662 | 298,939 | 372 | 299,311 | 1,887,421 |
| Europe Core | | | | | |
| 2012-2015 | 61,643 | 33,175 | 63,974 | 97,149 | 180,405 |
| 2016 | 13,511 | 5,487 | 20,775 | 26,262 | 91,080 |
| 2017 | 7,298 | 2,534 | 3,658 | 6,192 | 52,160 |
| 2018 | 16,225 | 5,781 | 5,941 | 11,722 | 92,394 |
| 2019 | 28,033 | 9,302 | 17,828 | 27,130 | 188,972 |
| 2020 | 19,976 | 8,144 | 5,302 | 13,446 | 125,429 |
| 2021 | 28,007 | 12,137 | 6,374 | 18,511 | 199,304 |
| 2022 | 31,880 | 12,504 | (1,447) | 11,057 | 217,449 |
| 2023 | 42,435 | 17,442 | 21,478 | 38,920 | 279,253 |
| 2024 | 59,650 | 26,827 | 164 | 26,991 | 362,683 |
| 2025 | 69,949 | 34,057 | (6,091) | 27,966 | 430,938 |
| 2026 | 13,831 | 5,543 | 1,770 | 7,313 | 240,509 |
| Subtotal | 392,438 | 172,933 | 139,726 | 312,659 | 2,460,576 |
| Europe Insolvency | | | | | |
| 2014-2015 | 162 | - | 162 | 162 | - |
| 2016 | 207 | 36 | 393 | 429 | 337 |
| 2017 | 332 | 18 | 748 | 766 | 610 |
| 2018 | 430 | 17 | 322 | 339 | 454 |
| 2019 | 1,399 | 158 | 586 | 744 | 3,111 |
| 2020 | 3,433 | 258 | (6) | 252 | 3,825 |
| 2021 | 5,687 | 470 | 1,798 | 2,268 | 7,025 |
| 2022 | 6,740 | 1,027 | 2,744 | 3,771 | 16,675 |
| 2023 | 8,348 | 1,644 | 6,984 | 8,628 | 29,984 |
| 2024 | 7,937 | 2,505 | 6,769 | 9,274 | 33,743 |
| 2025 | 2,987 | 1,378 | 610 | 1,988 | 19,038 |
| 2026 | 543 | 361 | 197 | 558 | 14,391 |
| Subtotal | 38,205 | 7,872 | 21,307 | 29,179 | 129,193 |
| Total Europe | 430,643 | 180,805 | 161,033 | 341,838 | 2,589,769 |
| Other markets | 100,168 | 57,634 | (20,595) | 37,039 | 240,014 |
| Total PRA Group | $1,110,473 | $537,378 | $140,810 | $678,188 | $4,717,204 |
(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 June 30, 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 June 30, 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 | | $20.7 | | $7,413.5 |
| 2016 | 400.5 | | - | 86.1 | | 195.3 | | 160.1 | | 116.6 | | 88.7 | | 59.9 | | 29.1 | | 17.6 | | 18.1 | | 12.9 | | 5.2 | | 789.6 |
| 2017 | 511.9 | | - | - | | 94.3 | | 264.4 | | 247.1 | | 185.6 | | 124.8 | | 73.1 | | 41.6 | | 37.5 | | 26.6 | | 10.2 | | 1105.2 |
| 2018 | 604.7 | | - | - | | - | | 106.3 | | 320.2 | | 304.7 | | 214.8 | | 131.6 | | 83.2 | | 68.1 | | 42.9 | | 16.4 | | 1288.2 |
| 2019 | 432.2 | | - | - | | - | | - | | 93.4 | | 282.2 | | 237.4 | | 141.7 | | 86.1 | | 61.8 | | 37.3 | | 13.0 | | 952.9 |
| 2020 | 415.4 | | - | - | | - | | - | | - | | 127.4 | | 274.7 | | 185.4 | | 121.3 | | 83.6 | | 50.4 | | 17.3 | | 860.1 |
| 2021 | 339.9 | | - | - | | - | | - | | - | | - | | 73.8 | | 149.9 | | 115.3 | | 82.8 | | 52.8 | | 19.7 | | 494.3 |
| 2022 | 275.4 | | - | - | | - | | - | | - | | - | | - | | 34.9 | | 102.4 | | 87.8 | | 58.5 | | 21.5 | | 305.1 |
| 2023 | | 506.3 | - | - | | - | | - | | - | | - | | - | | - | | 63.5 | | 211.8 | | 185.9 | | 75.6 | | 536.8 |
| 2024 | 727.7 | | - | - | | - | | - | | - | | - | | - | | - | | - | | 119.8 | | 374.9 | | 191.0 | | 685.7 |
| 2025 | 531.0 | | - | - | | - | | - | | - | | - | | - | | - | | - | | - | | 106.1 | | 133.2 | | 239.3 |
| 2026 | 195.7 | | - | - | | - | | - | | - | | - | | - | | - | | - | | - | | - | | 14.3 | | 14.3 |
| Subtotal | 7,677.6 | | 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 | | 538.1 | | 14,685.0 |
| 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 | | 0.4 | | 2,806.7 |
| 2016 | 67.5 | | - | 10.1 | | 18.9 | | 18.2 | | 16.4 | | 13.0 | | 6.6 | | 1.3 | | 0.6 | | 0.4 | | 0.1 | | 0.1 | | 85.7 |
| 2017 | 275.3 | | - | - | | 49.1 | | 97.3 | | 80.9 | | 58.8 | | 44.0 | | 20.8 | | 4.9 | | 2.5 | | 1.0 | | 0.4 | | 359.7 |
| 2018 | 97.9 | | - | - | | - | | 6.7 | | 27.4 | | 30.5 | | 31.6 | | 24.6 | | 12.7 | | 2.5 | | 1.0 | | 0.3 | | 137.3 |
| 2019 | 120.8 | | - | - | | - | | - | | 13.4 | | 30.9 | | 37.9 | | 36.8 | | 28.0 | | 14.2 | | 2.7 | | 0.8 | | 164.7 |
| 2020 | 62.1 | | - | - | | - | | - | | - | | 6.5 | | 16.1 | | 20.4 | | 19.5 | | 17.0 | | 8.7 | | 0.9 | | 89.1 |
| 2021 | 54.9 | | - | - | | - | | - | | - | | - | | 4.5 | | 17.7 | | 17.4 | | 15.2 | | 11.8 | | 4.0 | | 70.6 |
| 2022 | 33.4 | | - | - | | - | | - | | - | | - | | - | | 3.2 | | 9.2 | | 11.1 | | 10.5 | | 4.4 | | 38.4 |
| 2023 | 61.2 | | - | - | | - | | - | | - | | - | | - | | - | | 4.5 | | 14.8 | | 18.0 | | 9.4 | | 46.7 |
| 2024 | 68.2 | | - | - | | - | | - | | - | | - | | - | | - | | - | | 12.1 | | 23.1 | | 12.0 | | 47.2 |
| 2025 | 59.1 | | - | - | | - | | - | | - | | - | | - | | - | | - | | - | | 5.2 | | 8.4 | | 13.6 |
| 2026 | 32.3 | | - | - | | - | | - | | - | | - | | - | | - | | - | | - | | - | | 0.5 | | 0.5 |
| Subtotal | 2,405.1 | | 2,290.4 | 240.5 | | 210.6 | | 200.8 | | 177.2 | | 153.3 | | 145.2 | | 127.7 | | 98.6 | | 91.2 | | 83.1 | | 41.6 | | 3,860.2 |
| Total U.S. | 10,082.7 | | 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 | | 579.7 | | 18,545.2 |
| 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 | | 61.6 | | 2,766.5 |
| 2016 | 333.1 | | - | 40.4 | | 78.9 | | 72.6 | | 58.0 | | 48.3 | | 46.7 | | 36.9 | | 29.7 | | 27.4 | | 27.1 | | 13.5 | | 479.5 |
| 2017 | 252.2 | | - | - | | 17.9 | | 56.0 | | 44.1 | | 36.1 | | 34.8 | | 25.2 | | 20.2 | | 17.9 | | 15.7 | | 7.3 | | 275.2 |
| 2018 | 341.8 | | - | - | | - | | 24.3 | | 88.7 | | 71.3 | | 69.1 | | 50.7 | | 41.6 | | 37.1 | | 34.3 | | 16.2 | | 433.3 |
| 2019 | 518.6 | | - | - | | - | | - | | 48.0 | | 125.7 | | 121.4 | | 89.8 | | 75.1 | | 68.2 | | 61.7 | | 28.0 | | 617.9 |
| 2020 | 324.1 | | - | - | | - | | - | | - | | 32.3 | | 91.7 | | 69.0 | | 56.1 | | 50.1 | | 45.1 | | 20.0 | | 364.3 |
| 2021 | 412.4 | | - | - | | - | | - | | - | | - | | 48.5 | | 89.9 | | 73.0 | | 66.6 | | 59.7 | | 28.0 | | 365.7 |
| 2022 | 359.4 | | - | - | | - | | - | | - | | - | | - | | 33.9 | | 83.8 | | 74.7 | | 67.8 | | 31.9 | | 292.1 |
| 2023 | 410.6 | | - | - | | - | | - | | - | | - | | - | | - | | 50.2 | | 103.1 | | 93.2 | | 42.4 | | 288.9 |
| 2024 | 451.9 | | - | - | | - | | - | | - | | - | | - | | - | | - | | 46.3 | | 135.6 | | 59.7 | | 241.6 |
| 2025 | 512.5 | | - | - | | - | | - | | - | | - | | - | | - | | - | | - | | 57.1 | | 69.9 | | 127.0 |
| 2026 | 247.3 | | - | - | | - | | - | | - | | - | | - | | - | | - | | - | | - | | 13.9 | | 13.9 |
| Subtotal | 5,389.7 | | 538.4 | 390.6 | | 407.1 | | 443.4 | | 480.2 | | 519.7 | | 614.6 | | 559.7 | | 572.1 | | 623.5 | | 724.2 | | 392.4 | | 6,265.9 |
| 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 | | 0.2 | | 44.5 |
| 2016 | 39.3 | | - | 6.2 | | 12.7 | | 12.9 | | 10.7 | | 7.9 | | 6.0 | | 2.7 | | 1.3 | | 0.8 | | 0.6 | | 0.2 | | 62.0 |
| 2017 | 39.2 | | - | - | | 1.2 | | 7.9 | | 9.2 | | 9.8 | | 9.4 | | 6.5 | | 3.8 | | 1.5 | | 1.0 | | 0.3 | | 50.6 |
| 2018 | 44.9 | | - | - | | - | | 0.6 | | 8.4 | | 10.3 | | 11.7 | | 9.8 | | 7.2 | | 3.5 | | 1.4 | | 0.4 | | 53.3 |
| 2019 | 77.2 | | - | - | | - | | - | | 5.0 | | 21.1 | | 23.9 | | 21.0 | | 17.5 | | 12.9 | | 6.1 | | 1.4 | | 108.9 |
| 2020 | 105.4 | | - | - | | - | | - | | - | | 6.0 | | 34.6 | | 34.1 | | 29.7 | | 25.5 | | 15.5 | | 3.4 | | 148.8 |
| 2021 | 53.2 | | - | - | | - | | - | | - | | - | | 5.5 | | 14.4 | | 14.7 | | 15.4 | | 14.6 | | 5.7 | | 70.3 |
| 2022 | 44.6 | | - | - | | - | | - | | - | | - | | - | | 4.5 | | 12.4 | | 15.2 | | 15.2 | | 6.7 | | 54.0 |
| 2023 | 46.7 | | - | - | | - | | - | | - | | - | | - | | - | | 4.2 | | 12.7 | | 15.7 | | 8.3 | | 40.9 |
| 2024 | 43.4 | | - | - | | - | | - | | - | | - | | - | | - | | - | | 9.5 | | 15.2 | | 7.9 | | 32.6 |
| 2025 | 20.8 | | - | - | | - | | - | | - | | - | | - | | - | | - | | - | | 1.9 | | 3.0 | | 4.9 |
| 2026 | 14.4 | | - | - | | - | | - | | - | | - | | - | | - | | - | | - | | - | | 0.7 | | 0.7 |
| Subtotal | 559.0 | | 7.3 | 14.5 | | 22.1 | | 28.8 | | 38.7 | | 58.8 | | 93.0 | | 93.8 | | 91.4 | | 97.4 | | 87.5 | | 38.2 | | 671.5 |
| Total Europe | 5,948.7 | | 545.7 | 405.1 | | 429.2 | | 472.2 | | 518.9 | | 578.5 | | 707.6 | | 653.5 | | 663.5 | | 720.9 | | 811.7 | | 430.6 | | 6,937.4 |
| Other markets | 963.4 | | 33.9 | 86.5 | | 103.9 | | 83.7 | | 137.0 | | 135.9 | | 125.4 | | 135.0 | | 215.9 | | 220.5 | | 210.7 | | 100.2 | | 1,588.6 |
| Total PRA Group | $16,994.8 | | $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 | | $1,110.5 | | $27,071.2 |
(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. Management believes these non-GAAP financial measures are useful to investors in evaluating the Company's performance and operational effectiveness and provide for greater comparability. These non-GAAP financial measures should not be considered as an alternative to the most directly comparable financial measure determined in accordance with GAAP and may not be comparable to the calculation of similarly titled financial measures reported by other companies. Included below are reconciliations of the non-GAAP financial measures to the most directly comparable financial measures calculated in accordance with GAAP.
Adjusted EBITDA
The Company presents Adjusted EBITDA because the Company considers it an important supplemental measure of its operational and financial performance. Adjusted EBITDA is calculated as Net loss attributable to PRA Group, Inc. plus Income tax expense; less Foreign exchange gain; 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. Management believes Adjusted EBITDA helps provide enhanced period-to-period comparability of the Company’s operational and financial performance as it excludes certain items whose fluctuations from period-to-period do not necessarily correspond to changes in the operations of the Company’s business and is useful to investors as other companies in the industry report similar financial measures.
The following table provides a reconciliation of Net loss attributable to PRA Group, Inc. to Adjusted EBITDA for the last twelve months (LTM) ended June 30, 2026 and for the year ended December 31, 2025.
| LTM | Year Ended |
|---|
| Adjusted EBITDA Reconciliation ($ in thousands) | June 30, 2026 | December 31, 2025 |
| Net loss attributable to PRA Group, Inc. | $(265,048) | $(305,142) |
| Adjustments: | | |
| Income tax expense | 65,157 | 46,735 |
| Foreign exchange gain | (1,309) | (755) |
| Interest expense, net | 256,338 | 251,788 |
| Other expense | 427 | 336 |
| Depreciation and amortization | 7,188 | 9,035 |
| Impairment of real estate | 3,411 | 1,404 |
| Goodwill impairment | 412,611 | 412,611 |
| Net income attributable to noncontrolling interests | 11,010 | 15,168 |
| Gain on sale of equity method investment | - | (38,403) |
| Recoveries collected and applied to Finance receivables, net less Changes in expected recoveries | 869,128 | 922,697 |
| Adjusted EBITDA | $1,358,913 | $1,315,474 |
Adjusted net income attributable to PRA, ROATE and Adjusted ROATE
The Company uses Net income attributable to PRA Group, Inc. excluding the impact of certain transactions that are unusual or infrequent in nature and not reflective of our ongoing operations (“Adjusted net income attributable to PRA”) to monitor and evaluate our operating performance and allow for better comparability. Management believes Adjusted net income attributable to PRA is a useful financial measure for investors in evaluating our operating results.
Adjusted net income attributable to PRA is calculated as Net income attributable to PRA Group, Inc. excluding the impact of certain transactions that are unusual or infrequent in nature and not reflective of our ongoing operations.
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. ROATE is calculated by dividing annualized Net income attributable to PRA Group, Inc. by average Total stockholders' equity - PRA Group, Inc. less average goodwill and average other intangible assets ("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 attributable to PRA. Adjusted ROATE is calculated by dividing annualized Adjusted net income attributable to PRA by average tangible equity. Return on equity ("ROE") is calculated 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, a reconciliation of Net income attributable to PRA Group, Inc. to Adjusted net income attributable to PRA Group, Inc., and provides our ROE, ROATE and Adjusted ROATE for the periods indicated (in thousands, except for ratio data):
| | Average Tangible Equity Reconciliation |
|---|
| Balance as of Period End | Second Quarter | Year-to-Date |
|---|
| June 30, 2026 | June 30, 2025 | 2026 | 2025 | 2026 | 2025 |
|---|
| Total stockholders' equity - PRA Group, Inc. | $1,045,469 | $1,336,925 | | $1,023,879 | $1,278,016 | | | $1,009,202 | | $1,230,355 |
| Goodwill | 26,871 | 439,449 | | 26,871 | | 430,082 | | 26,871 | | 418,840 |
| Other intangible assets | 1,282 | 1,541 | | 1,313 | | 1,515 | | 1,354 | | 1,494 |
| Average tangible equity | | | | $995,695 | | $846,419 | | $980,977 | | $810,021 |
| | | ROE and ROATE |
| | | Second Quarter | Year-to-Date |
| | | | 2026 | | 2025 | | 2026 | | 2025 |
| Net income attributable to PRA Group, Inc. | | | | $57,917 | | $42,374 | | $86,127 | | $46,033 |
| Return on equity | | | 22.6% | | 13.3% | | 17.1% | | 7.5% | |
| Return on average tangible equity | | | 23.3% | | 20.0% | | 17.6% | | 11.4% | |
| | | Adjusted Net Income Attributable to PRA Group, Inc. Reconciliation and Adjusted ROATE |
| | Second Quarter | Year-to-Date |
| | | | 2026 | | 2025 | | 2026 | | 2025 |
| Net income attributable to PRA Group, Inc. | | | $57,917 | | $42,374 | | $86,127 | | $46,033 | |
| Gain on sale of equity method investment | | | - | | (38,403) | | - | | (38,403) | |
| Tax effect of adjusting items | | | - | | 8,717 | | - | | 8,717 | |
| Adjusted net income attributable to PRA Group, Inc. | | | $57,917 | | $12,688 | | $86,127 | | $16,347 | |
| Adjusted ROATE | | | 23.3% | | 6.0% | | 17.6% | | 4.0% | |
4.Based on the annual effective tax rate and pretax income excluding the effect of the adjusting items.
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.
3.Based on annualized Adjusted net income attributable to PRA Group, Inc.