Open the filing on EDGARPRA Group Reports Third Quarter 2026 Results
Continued Execution of PRA 3.0 Strategy Delivering Results and Building a Stronger Foundation for Long-Term Returns
$15M of Net Income Attributable to PRA Group, Inc.
NORFOLK, Va., November 5, 2026 - PRA Group, Inc. (Nasdaq: PRAA) (the "Company"), a global leader in acquiring and collecting nonperforming loans, today reported its financial results for the third quarter of 2026 ("Q3 2026").
Q3 2026 Highlights (vs. Q3 2025)
- Total cash collections of $536 million.
- Cash efficiency ratio of 63%. Adjusted cash efficiency ratio of 63%, an improvement of 200+ basis points, reflecting disciplined cost management.
- Portfolio income of $271 million, up 5%.
- Net income attributable to PRA Group, Inc. of $15 million, or diluted earnings per share of $0.39.
- Adjusted EBITDAfor the twelve months ended September 30, 2026 of $1.4 billion, up 9%.
- Total portfolio purchases of $229 million, reflecting continued discipline in deploying capital toward opportunities meeting targeted return thresholds.
- Estimated remaining collections (ERC) of $8.8 billion, up 5%.
"Building on the positive momentum generated over the past year, we continued to execute against our PRA 3.0 strategy during the third quarter," said Martin Sjolund, President and Chief Executive Officer. "We generated healthy cash collections, grew portfolio income, lowered operating expenses, and continued making disciplined portfolio investments, while achieving meaningful operational progress across many of our strategic initiatives."
"During the quarter, our adjusted cash efficiency ratio also improved by more than 200 basis points and Adjusted EBITDA continued to grow, reflecting the operating leverage we are beginning to realize from our cost reduction actions and broader PRA 3.0 initiatives. At the same time, we continued to invest in the business through our legal collections channel and technology modernization efforts, while maintaining a disciplined approach to capital deployment focused on attractive net returns in a healthy supply environment."
"We also strengthened the foundation of the business through the issuance of $400 million in aggregate principal amount of senior notes due 2033 shortly after the quarter ended, further enhancing our funding flexibility and extending our debt maturity profile. I am pleased with the progress we have made since launching our PRA 3.0 strategy. We believe we are on a good trajectory and that our technology modernization and significant investments in legal will strengthen the business in the years to come."
1.Cash efficiency ratio is calculated by dividing cash receipts less operating expenses by cash receipts. Cash receipts refers to cash collections on the Company's nonperforming loan portfolios, fees and revenue recognized from the Company's class action claims recovery services. Adjusted cash efficiency ratio, which is a non-GAAP financial measure, is calculated by dividing cash receipts less operating expenses, excluding goodwill impairment, by cash receipts. A calculation of the adjusted cash efficiency ratio can be found at the end of this press release.
2.Adjusted EBITDA is a non-GAAP financial measure. A reconciliation of net income/(loss) attributable to PRA Group, Inc. to Adjusted EBITDA can be found at the end of this press release.
3.Refers to the sum of all future projected cash collections on the Company's nonperforming loan portfolios.
Cash Collections and Revenues
The following table presents cash collections by quarter and by source, as reported and on a constant currency-adjusted basis:
| Cash Collection Source | | | | | 2026 | | | 2025 |
| ($ in thousands) | Q3 | Q2 | Q1 | Q4 | Q3 |
| U.S. Core | $254,866 | | $269,678 | $268,409 | | $249,322 | $258,277 | |
| U.S. Insolvency | 19,936 | | 21,434 | 20,141 | | 20,223 | 21,131 | |
| Europe Core | 195,478 | | 200,420 | 192,019 | | 188,277 | 185,910 | |
| Europe Insolvency | 17,574 | | 17,658 | 20,547 | | 19,166 | 22,658 | |
| Other markets | 47,789 | | 49,355 | 50,812 | | 54,670 | 54,268 | |
| Total cash collections | $535,643 | | $558,545 | $551,928 | | $531,658 | $542,244 | |
| Cash Collection Source - | | | | | |
| Constant Currency-Adjusted | | 2026 | | | | | 2025 |
| ($ in thousands) | Q3 | | | | Q3 |
| U.S. Core | $254,866 | | | | | $258,277 | |
| U.S. Insolvency | 19,936 | | | | | 21,131 | |
| Europe Core | 195,478 | | | | | 184,788 | |
| Europe Insolvency | 17,574 | | | | | 22,577 | |
| Other markets | 47,789 | | | | | 58,108 | |
| Total cash collections | $535,643 | | | | | $544,881 | |
- Total cash collections in Q3 2026 were $536 million, compared to $542 million in the third quarter of 2025 ("Q3 2025"). Growth in U.S. legal cash collections, coupled with continued growth in digital collections and Europe cash collections, partially offset decreases in other areas of the business.
| Three Months Ended Sept 30, |
|---|
| ($ in thousands) | | 2026 | | 2025 |
| Portfolio income | $270,779 | | $258,549 | |
| Recoveries collected in excess of forecast | 6,486 | | 27,351 | |
| Changes in expected future recoveries | 7,821 | | 24,007 | |
| Changes in expected recoveries | 14,307 | | 51,358 | |
| Total portfolio revenue | $285,086 | | $309,907 | |
- Total portfolio revenue in Q3 2026 decreased 8% to $285 million, compared to $310 million in Q3 2025. The decrease reflects lower Changes in expected recoveries compared to the prior year, partially offset by higher Portfolio income.
- Portfolio income in Q3 2026 increased 5% to $271 million, compared to $259 million in Q3 2025, driven by recent purchases in Europe.
- Changes in expected recoveries in Q3 2026 totaled $14 million, compared to $51 million in Q3 2025. The year-over-year decline was driven, in part, by actions taken by the Company in recent quarters to enhance its cash collection projections. This included a $349 million increase in Europe ERC as part of the Company's comprehensive portfolio review completed in the second quarter of 2026.
1.Reflects total cash collections in South America, Canada and Australia.
Expenses
- Operating expenses decreased $426 million to $200 million, compared to $627 million in Q3 2025, which included a $413 million non-cash goodwill impairment charge.
- Adjusted operating expenses, which excludes the non-cash goodwill impairment charge, decreased $14 million to $200 million, compared with $214 million in Q3 2025, driven primarily by lower Compensation and benefits expense.
- Compensation and benefits expense decreased $8 million, reflecting workforce reduction actions, organizational simplification efforts, and other cost initiatives implemented as part of the Company's PRA 3.0 strategy.
- Interest expense, net in Q3 2026 was $64 million, relatively unchanged from Q3 2025.
- The effective tax rate for the quarter was 16%.
Portfolio Purchases
| Portfolio Purchase Source | | | | 2026 | | | 2025 |
| ($ in thousands) | Q3 | Q2 | Q1 | Q4 | Q3 |
| U.S. Core | $68,387 | $90,227 | $105,469 | | $102,254 | $119,672 | |
| U.S. Insolvency | 23,891 | 19,220 | 13,043 | | 10,088 | 14,809 | |
| Europe Core | 106,661 | 164,620 | 86,715 | | 152,375 | 95,239 | |
| Europe Insolvency | 23,279 | 9,817 | 4,837 | | 4,758 | 5,934 | |
| Other markets | 6,527 | 12,687 | 10,786 | | 45,326 | 19,838 | |
| Total portfolio purchases | $228,745 | $296,571 | $220,850 | | $314,801 | $255,492 | |
- The Company purchased $229 million in portfolios of nonperforming loans in Q3 2026. Consistent with its disciplined capital allocation approach, the Company remained focused on opportunities that met its return requirements across its global markets.
- At the end of Q3 2026, the Company had in place estimated forward flow commitments of $438 million over the next 12 months, comprised of $175 million in Europe, $247 million in the U.S., and $16 million in other markets.
Credit Availability and Funding Position
- Total availability under the Company's credit facilities as of September 30, 2026 was $1 billion, comprised of $770 million based on current ERC and subject to debt covenants, and $262 million of additional availability subject to borrowing base and debt covenants, including advance rates.
- In October 2026, the Company issued $400 million of senior notes due 2033, which extended its debt maturity profile.
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 November 5, 2027, or call 646-517-4150 in the U.S. or 1-888-660-6345 outside the U.S. and use access code 65294# until November 12, 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
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.
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 Sept 30, | Nine Months Ended Sept 30, |
|---|
| 2026 | 2025 | 2026 | 2025 |
|---|
| Revenues | | | | |
| Portfolio income | $270,779 | | $258,549 | | $808,157 | | $750,441 | |
| Changes in expected recoveries | 14,307 | | 51,358 | | 155,117 | | 112,572 | |
| Total portfolio revenue | 285,086 | | 309,907 | | 963,274 | | 863,013 | |
| Other revenue | 1,180 | | 1,233 | | 9,699 | | 5,434 | |
| Total revenues | 286,266 | | 311,140 | | 972,973 | | 868,447 | |
| Operating expenses | | | | |
| Compensation and benefits | 66,063 | | 74,237 | | 207,178 | | 223,284 | |
| Legal collection costs | 46,211 | | 46,764 | | 147,194 | | 117,741 | |
| Legal collection fees | 18,439 | | 16,558 | | 53,896 | | 47,413 | |
| Agency fees | 22,993 | | 24,556 | | 70,788 | | 68,612 | |
| Professional and outside services | 17,002 | | 22,051 | | 60,398 | | 64,225 | |
| Communication | 7,619 | | 8,377 | | 24,302 | | 28,271 | |
| Rent and occupancy | 3,451 | | 3,654 | | 10,439 | | 10,638 | |
| Depreciation, amortization and impairment of long-lived assets | 1,964 | | 2,439 | | 8,396 | | 8,711 | |
| Goodwill impairment | - | | 412,611 | | - | | 412,611 | |
| Other operating expenses | 16,621 | | 15,440 | | 47,943 | | 42,800 | |
| Total operating expenses | 200,363 | | 626,687 | | 630,534 | | 1,024,306 | |
| Income/(loss) from operations | 85,903 | | (315,547) | | 342,439 | | (155,859) | |
| Other income/(expense) | | | | |
| Interest expense, net | (63,828) | | (64,087) | | (191,709) | | (187,418) | |
| Gain on sale of equity method investment | - | | - | | - | | 38,403 | |
| Foreign exchange gain, net | 149 | | 67 | | 702 | | 66 | |
| Other | (154) | | (38) | | (500) | | (293) | |
| Income/(loss) before income taxes | 22,070 | | (379,605) | | 150,932 | | (305,101) | |
| Income tax expense | 3,465 | | 24,361 | | 41,614 | | 44,088 | |
| Net income/(loss) | 18,605 | | (403,966) | | 109,318 | | (349,189) | |
| Net income attributable to noncontrolling interests | 3,713 | | 3,737 | | 8,299 | | 12,481 | |
| Net income/(loss) attributable to PRA Group, Inc. | $14,892 | | $(407,703) | | $101,019 | | $(361,670) | |
| Net income/(loss) per common share attributable to PRA Group, Inc. | | | | |
| Basic | $0.40 | | $(10.43) | | $2.66 | | $(9.20) | |
| Diluted | $0.39 | | $(10.43) | | $2.64 | | $(9.20) | |
| Weighted average number of shares outstanding | | | | |
| Basic | 37,653 | | 39,078 | | 38,041 | | 39,316 | |
| Diluted | 38,021 | | 39,078 | | 38,278 | | 39,316 | |
PRA Group, Inc.
Consolidated Balance Sheets
(Amounts in thousands)
| (unaudited) | |
|---|
| September 30, 2026 | December 31, 2025 |
|---|
| ASSETS | | |
| Cash and cash equivalents | $139,096 | $104,409 |
| Investments | 160,014 | 66,628 |
| Finance receivables, net | 4,683,573 | 4,688,024 |
| Income taxes receivable | 28,998 | 17,702 |
| Deferred tax assets, net | 58,448 | 76,955 |
| Right-of-use assets | 24,595 | 29,206 |
| Property and equipment, net | 20,396 | 24,886 |
| Goodwill | 26,871 | 26,871 |
| Prepaid expenses and other assets | 86,977 | 68,641 |
| Total assets | $5,228,968 | $5,103,322 |
| LIABILITIES AND EQUITY | | |
| Liabilities | | |
| Accrued expenses and accounts payable | $102,595 | $131,812 |
| Income taxes payable | 37,578 | 29,845 |
| Deferred tax liabilities, net | 31,256 | 17,064 |
| Lease liabilities | 27,344 | 32,160 |
| Interest-bearing deposits | 152,519 | 106,148 |
| Borrowings | 3,714,739 | 3,697,338 |
| Other liabilities | 31,099 | 48,990 |
| Total liabilities | 4,097,130 | 4,063,357 |
| Equity | | |
| Preferred stock, $0.01 par value, 2,000 shares authorized, no shares issued and outstanding | - | - |
| Common stock, $0.01 par value, 100,000 shares authorized, 37,659 shares issued and outstanding as of September 30, 2026; 100,000 shares authorized, 38,453 shares issued and outstanding as of December 31, 2025 | 377 | 385 |
| Additional paid-in capital | 2,609 | 11,474 |
| Retained earnings | 1,353,706 | 1,255,007 |
| Accumulated other comprehensive loss | (289,691) | (287,015) |
| Total stockholders' equity - PRA Group, Inc. | 1,067,001 | 979,851 |
| Noncontrolling interests | 64,837 | 60,114 |
| Total equity | 1,131,838 | 1,039,965 |
| Total liabilities and equity | $5,228,968 | $5,103,322 |
| Purchase Price Multiplesas of September 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 | $7,510,730 | $80,663 | 274% | 223% |
| 2016 | 400,545 | 819,321 | 27,487 | 205% | 195% |
| 2017 | 511,902 | 1,166,652 | 56,807 | 228% | 193% |
| 2018 | 604,669 | 1,377,953 | 82,203 | 228% | 199% |
| 2019 | 432,222 | 1,017,258 | 58,785 | 235% | 209% |
| 2020 | 415,384 | 940,623 | 73,528 | 226% | 215% |
| 2021 | 339,885 | 601,913 | 99,635 | 177% | 191% |
| 2022 | 275,433 | 429,136 | 115,300 | 156% | 164% |
| 2023 | 506,319 | 939,215 | 371,406 | 185% | 191% |
| 2024 | 727,672 | 1,678,881 | 910,152 | 231% | 211% |
| 2025 | 531,021 | 1,174,752 | 865,217 | 221% | 216% |
| 2026 | 264,083 | 554,953 | 523,311 | 210% | 210% |
| Subtotal | 7,746,010 | 18,211,387 | 3,264,494 | | |
| U.S. Insolvency | | | | |
| 1996-2015 | 1,472,385 | 2,807,086 | - | 191% | 154% |
| 2016 | 67,454 | 85,694 | 5 | 127% | 124% |
| 2017 | 275,257 | 359,955 | 204 | 131% | 125% |
| 2018 | 97,879 | 137,611 | 124 | 141% | 127% |
| 2019 | 120,845 | 165,153 | 329 | 137% | 128% |
| 2020 | 62,130 | 90,465 | 1,159 | 146% | 136% |
| 2021 | 54,898 | 73,519 | 1,839 | 134% | 136% |
| 2022 | 33,442 | 48,087 | 7,759 | 144% | 139% |
| 2023 | 61,242 | 80,715 | 29,523 | 132% | 136% |
| 2024 | 68,168 | 99,716 | 46,844 | 146% | 149% |
| 2025 | 59,091 | 93,419 | 74,993 | 158% | 160% |
| 2026 | 56,154 | 87,986 | 86,422 | 157% | 157% |
| Subtotal | 2,428,945 | 4,129,406 | 249,201 | | |
| Total U.S. | 10,174,955 | 22,340,793 | 3,513,695 | | |
| Europe Core | | | | | |
| 2012-2015 | 1,225,893 | 3,795,399 | 663,064 | 310% | 190% |
| 2016 | 333,090 | 637,389 | 164,887 | 191% | 167% |
| 2017 | 252,174 | 376,348 | 80,088 | 149% | 144% |
| 2018 | 341,775 | 590,677 | 149,974 | 173% | 148% |
| 2019 | 518,610 | 918,985 | 273,992 | 177% | 152% |
| 2020 | 324,119 | 618,771 | 200,428 | 191% | 172% |
| 2021 | 412,411 | 744,524 | 326,017 | 181% | 170% |
| 2022 | 359,447 | 596,112 | 328,347 | 166% | 162% |
| 2023 | 410,593 | 753,207 | 462,233 | 183% | 169% |
| 2024 | 451,786 | 819,958 | 617,798 | 181% | 180% |
| 2025 | 512,533 | 941,655 | 756,842 | 184% | 185% |
| 2026 | 350,953 | 646,394 | 610,770 | 184% | 184% |
| Subtotal | 5,493,384 | 11,439,419 | 4,634,440 | | |
| Europe Insolvency | | | | |
| 2014-2015 | 29,849 | 49,205 | - | 165% | 135% |
| 2016 | 39,338 | 60,228 | 1,977 | 153% | 130% |
| 2017 | 39,235 | 54,137 | 1,090 | 138% | 128% |
| 2018 | 44,908 | 53,754 | 566 | 120% | 123% |
| 2019 | 77,218 | 115,180 | 3,367 | 149% | 130% |
| 2020 | 105,440 | 162,068 | 3,144 | 154% | 129% |
| 2021 | 53,230 | 81,979 | 6,010 | 154% | 134% |
| 2022 | 44,604 | 68,911 | 16,324 | 154% | 137% |
| 2023 | 46,558 | 74,752 | 31,693 | 161% | 138% |
| 2024 | 43,459 | 73,055 | 40,577 | 168% | 147% |
| 2025 | 20,760 | 30,891 | 23,823 | 149% | 145% |
| 2026 | 37,439 | 54,519 | 53,246 | 146% | 146% |
| Subtotal | 582,038 | 878,679 | 181,817 | | |
| Total Europe | 6,075,422 | 12,318,098 | 4,816,257 | | |
| Other markets | 969,781 | 2,223,865 | 463,683 | 229% | 205% |
| Total PRA Group | $17,220,158 | $36,882,756 | $8,793,635 | | |
(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 September 30, 2026 exchange rate.
(5)Reflects all vintages in South America, Canada and Australia.
| September 30, 2026 (year-to-date) | As of September 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 | $30,128 | $15,407 | $7,383 | $22,790 | $26,090 |
| 2016 | 7,404 | 4,300 | (189) | 4,111 | 11,615 |
| 2017 | 14,819 | 8,933 | (1,500) | 7,433 | 22,868 |
| 2018 | 23,854 | 11,450 | 2,639 | 14,089 | 40,158 |
| 2019 | 18,572 | 9,354 | (993) | 8,361 | 27,549 |
| 2020 | 24,371 | 11,820 | (1,709) | 10,111 | 35,911 |
| 2021 | 27,661 | 13,802 | (1,814) | 11,988 | 49,723 |
| 2022 | 30,268 | 12,672 | (4,400) | 8,272 | 67,132 |
| 2023 | 106,708 | 49,149 | (13,524) | 35,625 | 197,418 |
| 2024 | 274,079 | 131,352 | 10,443 | 141,795 | 478,985 |
| 2025 | 203,444 | 123,502 | 8,645 | 132,147 | 450,801 |
| 2026 | 31,645 | 31,779 | (3,215) | 28,564 | 260,659 |
| Subtotal | 792,953 | 423,520 | 1,766 | 425,286 | 1,668,909 |
| U.S. Insolvency | | | | | |
| 1996-2015 | 633 | - | 632 | 632 | - |
| 2016 | 80 | 3 | 52 | 55 | 5 |
| 2017 | 517 | 22 | 450 | 472 | 182 |
| 2018 | 378 | 5 | 402 | 407 | 116 |
| 2019 | 1,032 | 12 | 1,058 | 1,070 | 314 |
| 2020 | 1,134 | 129 | 222 | 351 | 1,022 |
| 2021 | 5,013 | 399 | (793) | (394) | 1,673 |
| 2022 | 6,369 | 921 | 180 | 1,101 | 7,156 |
| 2023 | 13,820 | 2,838 | 361 | 3,199 | 26,163 |
| 2024 | 17,725 | 5,982 | 299 | 6,281 | 37,432 |
| 2025 | 13,248 | 8,066 | (537) | 7,529 | 53,783 |
| 2026 | 1,562 | 2,739 | 241 | 2,980 | 57,290 |
| Subtotal | 61,511 | 21,116 | 2,567 | 23,683 | 185,136 |
| Total U.S. | 854,464 | 444,636 | 4,333 | 448,969 | 1,854,045 |
| Europe Core | | | | | |
| 2012-2015 | 89,822 | 53,207 | 65,801 | 119,008 | 173,353 |
| 2016 | 19,643 | 8,622 | 21,271 | 29,893 | 89,712 |
| 2017 | 10,727 | 3,870 | 3,926 | 7,796 | 50,421 |
| 2018 | 23,571 | 8,813 | 6,212 | 15,025 | 87,585 |
| 2019 | 40,824 | 14,061 | 18,046 | 32,107 | 180,188 |
| 2020 | 29,087 | 12,059 | 5,490 | 17,549 | 120,068 |
| 2021 | 40,606 | 18,087 | 5,619 | 23,706 | 194,211 |
| 2022 | 45,904 | 18,260 | (691) | 17,569 | 207,127 |
| 2023 | 61,915 | 26,207 | 21,459 | 47,666 | 266,683 |
| 2024 | 87,434 | 39,178 | 4,030 | 43,208 | 348,928 |
| 2025 | 102,142 | 49,656 | (5,276) | 44,380 | 412,972 |
| 2026 | 36,242 | 16,085 | 3,041 | 19,126 | 333,406 |
| Subtotal | 587,917 | 268,105 | 148,928 | 417,033 | 2,464,654 |
| Europe Insolvency | | | | | |
| 2014-2015 | 236 | - | 236 | 236 | - |
| 2016 | 318 | 88 | 445 | 533 | 328 |
| 2017 | 497 | 45 | 851 | 896 | 570 |
| 2018 | 574 | 24 | 414 | 438 | 407 |
| 2019 | 1,863 | 232 | 537 | 769 | 2,680 |
| 2020 | 4,373 | 340 | (79) | 261 | 2,908 |
| 2021 | 7,354 | 647 | 1,679 | 2,326 | 5,440 |
| 2022 | 9,888 | 1,484 | 2,962 | 4,446 | 14,227 |
| 2023 | 12,772 | 2,513 | 7,401 | 9,914 | 26,889 |
| 2024 | 11,931 | 3,864 | 7,083 | 10,947 | 31,465 |
| 2025 | 4,686 | 2,044 | 637 | 2,681 | 18,031 |
| 2026 | 1,287 | 961 | 227 | 1,188 | 37,290 |
| Subtotal | 55,779 | 12,242 | 22,393 | 34,635 | 140,235 |
| Total Europe | 643,696 | 280,347 | 171,321 | 451,668 | 2,604,889 |
| Other markets | 147,956 | 83,174 | (20,537) | 62,637 | 224,639 |
| Total PRA Group | $1,646,116 | $808,157 | $155,117 | $963,274 | $4,683,573 |
(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 September 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 September 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 | | $30.1 | | $7,422.9 |
| 2016 | 400.5 | | - | 86.1 | | 195.3 | | 160.1 | | 116.6 | | 88.7 | | 59.9 | | 29.1 | | 17.6 | | 18.1 | | 12.9 | | 7.4 | | 791.8 |
| 2017 | 511.9 | | - | - | | 94.3 | | 264.4 | | 247.1 | | 185.6 | | 124.8 | | 73.1 | | 41.6 | | 37.5 | | 26.6 | | 14.8 | | 1,109.8 |
| 2018 | 604.7 | | - | - | | - | | 106.3 | | 320.2 | | 304.7 | | 214.8 | | 131.6 | | 83.2 | | 68.1 | | 42.9 | | 23.9 | | 1,295.7 |
| 2019 | 432.2 | | - | - | | - | | - | | 93.4 | | 282.2 | | 237.4 | | 141.7 | | 86.1 | | 61.8 | | 37.3 | | 18.6 | | 958.5 |
| 2020 | 415.4 | | - | - | | - | | - | | - | | 127.4 | | 274.7 | | 185.4 | | 121.3 | | 83.6 | | 50.4 | | 24.4 | | 867.2 |
| 2021 | 339.9 | | - | - | | - | | - | | - | | - | | 73.8 | | 149.9 | | 115.3 | | 82.8 | | 52.8 | | 27.7 | | 502.3 |
| 2022 | 275.4 | | - | - | | - | | - | | - | | - | | - | | 34.9 | | 102.4 | | 87.8 | | 58.5 | | 30.3 | | 313.9 |
| 2023 | | 506.3 | - | - | | - | | - | | - | | - | | - | | - | | 63.5 | | 211.8 | | 185.9 | | 106.7 | | 567.9 |
| 2024 | 727.7 | | - | - | | - | | - | | - | | - | | - | | - | | - | | 119.8 | | 374.9 | | 274.1 | | 768.8 |
| 2025 | 531.0 | | - | - | | - | | - | | - | | - | | - | | - | | - | | - | | 106.1 | | 203.4 | | 309.5 |
| 2026 | 264.1 | | - | - | | - | | - | | - | | - | | - | | - | | - | | - | | - | | 31.6 | | 31.6 |
| Subtotal | 7,746.0 | | 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 | | 793.0 | | 14,939.9 |
| 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 | | 0.6 | | 2,806.9 |
| 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 | | 0.5 | | 359.8 |
| 2018 | 97.9 | | - | - | | - | | 6.7 | | 27.4 | | 30.5 | | 31.6 | | 24.6 | | 12.7 | | 2.5 | | 1.0 | | 0.4 | | 137.4 |
| 2019 | 120.8 | | - | - | | - | | - | | 13.4 | | 30.9 | | 37.9 | | 36.8 | | 28.0 | | 14.2 | | 2.7 | | 1.0 | | 164.9 |
| 2020 | 62.1 | | - | - | | - | | - | | - | | 6.5 | | 16.1 | | 20.4 | | 19.5 | | 17.0 | | 8.7 | | 1.1 | | 89.3 |
| 2021 | 54.9 | | - | - | | - | | - | | - | | - | | 4.5 | | 17.7 | | 17.4 | | 15.2 | | 11.8 | | 5.0 | | 71.6 |
| 2022 | 33.4 | | - | - | | - | | - | | - | | - | | - | | 3.2 | | 9.2 | | 11.1 | | 10.5 | | 6.4 | | 40.4 |
| 2023 | 61.2 | | - | - | | - | | - | | - | | - | | - | | - | | 4.5 | | 14.8 | | 18.0 | | 13.8 | | 51.1 |
| 2024 | 68.2 | | - | - | | - | | - | | - | | - | | - | | - | | - | | 12.1 | | 23.1 | | 17.7 | | 52.9 |
| 2025 | 59.1 | | - | - | | - | | - | | - | | - | | - | | - | | - | | - | | 5.2 | | 13.2 | | 18.4 |
| 2026 | 56.2 | | - | - | | - | | - | | - | | - | | - | | - | | - | | - | | - | | 1.7 | | 1.7 |
| Subtotal | 2,429.0 | | 2,290.4 | 240.5 | | 210.6 | | 200.8 | | 177.2 | | 153.3 | | 145.2 | | 127.7 | | 98.6 | | 91.2 | | 83.1 | | 61.5 | | 3,880.1 |
| Total U.S. | 10,175.0 | | 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 | | 854.5 | | 18,820.0 |
| 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 | | 89.8 | | 2,794.7 |
| 2016 | 333.1 | | - | 40.4 | | 78.9 | | 72.6 | | 58.0 | | 48.3 | | 46.7 | | 36.9 | | 29.7 | | 27.4 | | 27.1 | | 19.6 | | 485.6 |
| 2017 | 252.2 | | - | - | | 17.9 | | 56.0 | | 44.1 | | 36.1 | | 34.8 | | 25.2 | | 20.2 | | 17.9 | | 15.7 | | 10.7 | | 278.6 |
| 2018 | 341.8 | | - | - | | - | | 24.3 | | 88.7 | | 71.3 | | 69.1 | | 50.7 | | 41.6 | | 37.1 | | 34.3 | | 23.6 | | 440.7 |
| 2019 | 518.6 | | - | - | | - | | - | | 48.0 | | 125.7 | | 121.4 | | 89.8 | | 75.1 | | 68.2 | | 61.7 | | 40.8 | | 630.7 |
| 2020 | 324.1 | | - | - | | - | | - | | - | | 32.3 | | 91.7 | | 69.0 | | 56.1 | | 50.1 | | 45.1 | | 29.1 | | 373.4 |
| 2021 | 412.4 | | - | - | | - | | - | | - | | - | | 48.5 | | 89.9 | | 73.0 | | 66.6 | | 59.7 | | 40.6 | | 378.3 |
| 2022 | 359.4 | | - | - | | - | | - | | - | | - | | - | | 33.9 | | 83.8 | | 74.7 | | 67.8 | | 45.9 | | 306.1 |
| 2023 | 410.6 | | - | - | | - | | - | | - | | - | | - | | - | | 50.2 | | 103.1 | | 93.2 | | 61.9 | | 308.4 |
| 2024 | 451.9 | | - | - | | - | | - | | - | | - | | - | | - | | - | | 46.3 | | 135.6 | | 87.4 | | 269.3 |
| 2025 | 512.5 | | - | - | | - | | - | | - | | - | | - | | - | | - | | - | | 57.1 | | 102.1 | | 159.2 |
| 2026 | 351.0 | | - | - | | - | | - | | - | | - | | - | | - | | - | | - | | - | | 36.4 | | 36.4 |
| Subtotal | 5,493.4 | | 538.4 | 390.6 | | 407.1 | | 443.4 | | 480.2 | | 519.7 | | 614.6 | | 559.7 | | 572.1 | | 623.5 | | 724.2 | | 587.9 | | 6,461.4 |
| 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 | | 0.3 | | 62.1 |
| 2017 | 39.2 | | - | - | | 1.2 | | 7.9 | | 9.2 | | 9.8 | | 9.4 | | 6.5 | | 3.8 | | 1.5 | | 1.0 | | 0.5 | | 50.8 |
| 2018 | 44.9 | | - | - | | - | | 0.6 | | 8.4 | | 10.3 | | 11.7 | | 9.8 | | 7.2 | | 3.5 | | 1.4 | | 0.6 | | 53.5 |
| 2019 | 77.2 | | - | - | | - | | - | | 5.0 | | 21.1 | | 23.9 | | 21.0 | | 17.5 | | 12.9 | | 6.1 | | 1.9 | | 109.4 |
| 2020 | 105.4 | | - | - | | - | | - | | - | | 6.0 | | 34.6 | | 34.1 | | 29.7 | | 25.5 | | 15.5 | | 4.4 | | 149.8 |
| 2021 | 53.2 | | - | - | | - | | - | | - | | - | | 5.5 | | 14.4 | | 14.7 | | 15.4 | | 14.6 | | 7.4 | | 72.0 |
| 2022 | 44.6 | | - | - | | - | | - | | - | | - | | - | | 4.5 | | 12.4 | | 15.2 | | 15.2 | | 9.9 | | 57.2 |
| 2023 | 46.7 | | - | - | | - | | - | | - | | - | | - | | - | | 4.2 | | 12.7 | | 15.7 | | 12.8 | | 45.4 |
| 2024 | 43.4 | | - | - | | - | | - | | - | | - | | - | | - | | - | | 9.5 | | 15.2 | | 11.9 | | 36.6 |
| 2025 | 20.8 | | - | - | | - | | - | | - | | - | | - | | - | | - | | - | | 1.9 | | 4.7 | | 6.6 |
| 2026 | 37.4 | | - | - | | - | | - | | - | | - | | - | | - | | - | | - | | - | | 1.1 | | 1.1 |
| Subtotal | 582.0 | | 7.3 | 14.5 | | 22.1 | | 28.8 | | 38.7 | | 58.8 | | 93.0 | | 93.8 | | 91.4 | | 97.4 | | 87.5 | | 55.7 | | 689.0 |
| Total Europe | 6,075.4 | | 545.7 | 405.1 | | 429.2 | | 472.2 | | 518.9 | | 578.5 | | 707.6 | | 653.5 | | 663.5 | | 720.9 | | 811.7 | | 643.6 | | 7,150.4 |
| Other markets | 969.8 | | 33.9 | 86.5 | | 103.9 | | 83.7 | | 137.0 | | 135.9 | | 125.4 | | 135.0 | | 215.9 | | 220.5 | | 210.7 | | 148.0 | | 1,636.4 |
| Total PRA Group | $17,220.2 | | $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 | | $1,646.1 | | $27,606.8 |
(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, operational effectiveness and management of operating 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 income/(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 income/(loss) attributable to PRA Group, Inc. to Adjusted EBITDA for the last twelve months (LTM) ended September 30, 2026 and for the year ended December 31, 2025.
| LTM | Year Ended |
|---|
| Adjusted EBITDA Reconciliation ($ in thousands) | September 30, 2026 | December 31, 2025 |
| Net income/(loss) attributable to PRA Group, Inc. | $157,547 | $(305,142) |
| Adjustments: | | |
| Income tax expense | 44,261 | 46,735 |
| Foreign exchange gain | (1,391) | (755) |
| Interest expense, net | 256,079 | 251,788 |
| Other expense | 543 | 336 |
| Depreciation and amortization | 7,281 | 9,035 |
| Impairment of real estate | 2,843 | 1,404 |
| Goodwill impairment | - | 412,611 |
| Net income attributable to noncontrolling interests | 10,986 | 15,168 |
| Gain on sale of equity method investment | - | (38,403) |
| Recoveries collected and applied to Finance receivables, net less Changes in expected recoveries | 899,605 | 922,697 |
| Adjusted EBITDA | $1,377,754 | $1,315,474 |
Adjusted cash efficiency ratio
The Company uses an adjusted cash efficiency ratio, which is a supplemental measure of performance that is not required by, or presented in accordance with, GAAP, 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 cash efficiency and Adjusted cash efficiency ratios for the periods indicated (in thousands, except for ratio data):
| Adjusted Operating Expenses Reconciliation and Adjusted Cash Efficiency Ratio |
|---|
| Third Quarter | Year-to-Date |
|---|
| 2026 | 2025 | 2026 | 2025 |
|---|
| Cash collections | $535,643 | | $542,244 | | $1,646,116 | | $1,575,968 | |
| Fee income | 771 | | 622 | | 6,700 | | 3,745 | |
| Cash receipts | 536,414 | | 542,866 | | 1,652,816 | | 1,579,713 | |
| Total operating expenses | 200,363 | | 626,687 | | 630,534 | | 1,024,306 | |
| Goodwill impairment | - | | (412,611) | | - | | (412,611) | |
| Adjusted operating expenses | | 200,363 | | 214,076 | | 630,534 | | 611,695 |
| Cash efficiency ratio | | 63% | | (15)% | | 62% | | 35% |
| Adjusted cash efficiency ratio | | 63% | | 61% | | 62% | | 61% |
Adjusted net income attributable to PRA, Adjusted diluted earnings per share, ROATE and Adjusted ROATE
The Company uses Net income/(loss) attributable to PRA Group, Inc. excluding the impact of certain items that management does not consider indicative of the Company's 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/(loss) attributable to PRA Group, Inc. excluding the impact of certain items that management does not consider indicative of the Company's ongoing operations. Calculation of Adjusted diluted earnings per share excludes those same items and, if dilutive based on Adjusted net income attributable to PRA, may also include the impact of additional potentially dilutive shares.
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/(loss) 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 annualized Net income/(loss) 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/(loss) attributable to PRA Group, Inc. to Adjusted net income attributable to PRA, 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 | Third Quarter | Year-to-Date |
|---|
| September 30, 2026 | September 30, 2025 | 2026 | 2025 | 2026 | 2025 |
|---|
| Total stockholders' equity - PRA Group, Inc. | $1,067,001 | $928,493 | | $1,056,235 | $1,132,709 | | | $1,023,652 | | $1,154,889 |
| Goodwill | 26,871 | 26,871 | | 26,871 | | 233,160 | | 26,871 | | 320,848 |
| Other intangible assets | 1,209 | 1,470 | | 1,246 | | 1,506 | | 1,318 | | 1,488 |
| Average tangible equity | | | | $1,028,118 | | $898,043 | | $995,463 | | $832,553 |
| | | ROE and ROATE |
| | | Third Quarter | Year-to-Date |
| | | | 2026 | | 2025 | | 2026 | | 2025 |
| Net income/(loss) attributable to PRA Group, Inc. | | | | $14,892 | | $(407,703) | | $101,019 | | $(361,670) |
| Return on equity | | | 6% | | (144)% | | 13% | | (42)% | |
| ROATE | | | 6% | | (182)% | | 14% | | (58)% | |
| | | Adjusted Net Income Attributable to PRA Reconciliation and Adjusted ROATE |
| | Third Quarter | Year-to-Date |
| | | | 2026 | | 2025 | | 2026 | | 2025 |
| Net income/(loss) attributable to PRA Group, Inc. | | | $14,892 | | $(407,703) | | $101,019 | | $(361,670) | |
| Gain on sale of equity method investment | | | - | | - | | - | | (38,403) | |
| Goodwill impairment | | | - | | 412,611 | | - | | 412,611 | |
| Tax effect of adjusting items | | | - | | 15,969 | | - | | 24,686 | |
| Adjusted net income attributable to PRA | | | $14,892 | | $20,877 | | $101,019 | | $37,224 | |
| Adjusted ROATE | | | 6% | | 9% | | 14% | | 6% | |
The following table provides a reconciliation of diluted earnings per share to Adjusted diluted earnings per share:
| Adjusted Diluted Earnings Per Share Reconciliation |
|---|
| Third Quarter | Year-to-Date |
|---|
| 2026 | 2025 | 2026 | 2025 |
|---|
| Diluted earnings per share | $0.39 | $(10.43) | $2.64 | $(9.20) |
| Effect of adjusting items and dilutive shares | - | 10.96 | - | 10.14 |
| Adjusted diluted earnings per share | $0.39 | $0.53 | $2.64 | $0.94 |
4.Based on the annual effective tax rate and pretax income excluding the effect of the adjusting items.
5.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 periods.
2.Based on annualized Net income/(loss) attributable to PRA Group, Inc.
3.Based on annualized Adjusted net income attributable to PRA.