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PRA Group Reports Third Quarter 2025 Results

Double-Digit Growth in Cash-Based Metrics with Disciplined Purchases Focused on Maximizing Value Creation

Non-Cash $413 Million Goodwill Impairment Charge Resulted in Q3 Net Loss of $408 Million

Excluding the Non-Cash Charge, the Company Delivered Adjusted Net Income of $21 Million

NORFOLK, Va., November 3, 2025 - 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 2025 ("Q3 2025").

Q3 2025 Highlights (vs. Q3 2024)
•Total cash collections of $542.2 million, up 13.7%.
•Net loss attributable to PRA Group, Inc. of $407.7 million, or diluted earnings per share of ($10.43), which includes a $412.6 million non-recurring, non-cash goodwill impairment charge.
•Excluding the goodwill impairment charge, adjusted net income attributable to PRA Group, Inc.1 of $20.9 million, or diluted earnings per share of $0.53.
•Cash efficiency ratio2 of (15.4)%. Excluding the goodwill impairment charge, adjusted cash efficiency ratio2 of 60.6%.
•Adjusted EBITDA3 for the 12 months ended September 30, 2025 of $1.3 billion, up 15.1%.
•Total portfolio purchases of $255.5 million, down year-over-year, reflecting our focus on being selective and maximizing value. The Company remains on track to achieve its 2025 portfolio purchases target of $1.2 billion.
•Record estimated remaining collections (ERC)4 of $8.4 billion, up 15.2%.
"It has now been just over 100 days since I have stepped into the CEO role, and my focus has been on accelerating what is working well and tackling areas of our business that need to be improved," said Martin Sjolund, president and chief executive officer. "During this time, we achieved significant progress against our strategic priorities for the U.S. business that we shared last quarter, including driving cost efficiency, reorganizing our U.S. operations, creating a new talent hub, bringing our headquarters corporate and support staff back to the office, and developing our IT modernization roadmap. I am very pleased with how the team has responded and how fast we have been executing against these priorities."

"Q3 represented another step forward for PRA and our ability to create value for our stakeholders. Cash collections grew 14% year-over-year, reflecting recent purchases, the continued strong performance of our European business, and growing momentum in our U.S. operational initiatives. In particular, we have been ramping up our investments in the U.S. legal collections channel, which led to a 27% increase in U.S. legal cash collections for the quarter."




1.A reconciliation of net (loss)/income attributable to PRA Group, Inc. to adjusted net income attributable to PRA Group, Inc. can be found at the end of this press release.
2.Cash efficiency ratio is calculated by dividing cash receipts less operating expenses by cash receipts. Cash receipts refers to cash collections on the Company's nonperforming loan portfolios, fees and revenue recognized from the Company's class action claims recovery services. Adjusted cash efficiency ratio is calculated by dividing cash receipts less operating expenses, excluding the effect of goodwill impairment, by cash receipts. A calculation of adjusted cash efficiency can be found at the end of this press release.
3.A reconciliation of net (loss)/income attributable to PRA Group, Inc., the most directly comparable financial measure calculated and reported in accordance with GAAP, to Adjusted EBITDA can be found at the end of this press release
4.Refers to the sum of all future projected cash collections on the Company's nonperforming loan portfolios..

"During the quarter, we recorded a non-recurring, non-cash impairment charge of goodwill related to our Debt Buying and Collection reporting unit. This unit’s goodwill was primarily attributed to a European acquisition we made in 2014. The Q3 impairment test was triggered by a sustained decline in our stock price. The impairment charge had no impact on our operations, portfolio valuations, or ERC, and I would like to point out that our European business outperformed our cash collections expectations by 11% year-to-date, and it continues to perform strongly. Overall, we are heading in the right direction and are focused on continuing to improve the financial performance of our business."

Cash Collections and Revenues
The following table presents cash collections by quarter and by source on an as reported and constant currency-adjusted basis:

Cash Collection Source20252024
($ in thousands)Q3Q2Q1Q4Q3
Americas and Australia Core$310,108 $301,698 $288,160 $257,711 $266,977 
Americas Insolvency23,568 24,329 23,700 24,067 26,065 
Europe Core185,910 185,652 164,371 162,564 158,242 
Europe Insolvency22,658 24,609 21,205 23,724 25,826 
Total cash collections$542,244 $536,288 $497,436 $468,066 $477,110 
Cash Collection Source -
Constant Currency-Adjusted20252024
($ in thousands)Q3Q3
Americas and Australia Core$310,108 $267,649 
Americas Insolvency23,568 26,040 
Europe Core185,910 166,803 
Europe Insolvency22,658 26,802 
Total cash collections$542,244 $487,294 

•Total cash collections in Q3 2025 increased 13.7% to $542.2 million, compared to $477.1 million in the third quarter of 2024 ("Q3 2024"), driven by higher levels of recent portfolio purchases, strong performance in our European business, and an increase in cash generation from our investments in the U.S. legal collections channel.

Three Months Ended Sept 30,Nine Months Ended Sept 30,
($ in thousands)2025202420252024
Portfolio income$258,549 $216,122 $750,441 $627,468 
Recoveries collected in excess of forecast$27,351 $34,158 $84,153 $124,256 
Changes in expected future recoveries 24,007 26,456 28,419 61,352 
Changes in expected recoveries$51,358 $60,614 $112,572 $185,608 
Total portfolio revenue$309,907 $276,736 $863,013 $813,076 

•Portfolio income in Q3 2025 increased 19.6% to $258.5 million, compared to $216.1 million in Q3 2024, due to strong recent purchases at improved returns.
•Recoveries collected in excess of forecast of $27.4 million included a $15.0 million one-time purchase price adjustment payment to a seller that modified the terms and conditions of an existing contract and increases ERC for the related portfolios acquired.


•Total portfolio revenue in Q3 2025 increased 12.0% to $309.9 million, compared to $276.7 million in Q3 2024.

Expenses
•Operating expenses in Q3 2025 increased to $626.7 million, compared to $191.5 million in Q3 2024. This included a $412.6 million non-recurring, non-cash goodwill impairment charge. Excluding the goodwill impairment charge, adjusted operating expenses were $214.1 million.
•Interest expense, net in Q3 2025 increased to $64.1 million, compared to $61.1 million in Q3 2024, primarily reflecting an increase in debt balances.

Portfolio Purchases
Portfolio Purchase Source20252024
($ in thousands)Q3Q2Q1Q4Q3
Americas & Australia Core$139,484 $177,097 $165,503 $194,063 $263,613 
Americas Insolvency14,835 22,186 12,953 9,460 10,162 
Europe Core95,239 142,465 108,390 220,875 71,507 
Europe Insolvency5,934 4,757 4,856 8,272 4,696 
Total portfolio acquisitions$255,492 $346,505 $291,702 $432,670 $349,978 

•The Company purchased $255.5 million in portfolios of nonperforming loans in Q3 2025.
•At the end of Q3 2025, the Company had in place estimated forward flow commitments1 of $297.8 million over the next 12 months, comprised of $235.4 million in the Americas and Australia and $62.4 million in Europe.

Credit Availability
•Total availability under the Company's credit facilities as of September 30, 2025 was $1.2 billion, comprised of $888.9 million based on current ERC and subject to debt covenants, and $301.4 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 November 3, 2026, or call 646-517-4150 in the U.S. or 1-888-660-6345 outside the U.S. and use access code 30359# until November 10, 2025.

About PRA Group, Inc.
As a global leader in acquiring and collecting nonperforming loans, PRA Group, Inc. returns capital to banks and other creditors to help expand financial services for consumers in the Americas, Europe, and Australia. With thousands of employees worldwide, PRA Group, Inc. companies collaborate with customers to help them resolve their debt. For more information, please visit www.pragroup.com.

About Forward Looking Statements
Statements made herein that are not historical in nature, including PRA Group, Inc.’s or its management's intentions, hopes, beliefs, expectations, representations, projections, plans or predictions of the future, are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended.

1.Contractual agreements with sellers of nonperforming loans that allow for the purchase of nonperforming loan portfolios at pre-established prices. These amounts represent our estimated forward flow purchases over the next 12 months under the agreements in place based on projections and other factors, including sellers' estimates of future forward flow sales, and are dependent on actual delivery by the sellers and, in some cases, the impact of foreign exchange rate fluctuations. Accordingly, amounts purchased under these agreements may vary significantly.

The 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 September 30, Nine Months Ended September 30,
2025202420252024
Revenues
Portfolio income$258,549 $216,122 $750,441 $627,468 
Changes in expected recoveries51,358 60,614 112,572 185,608 
Total portfolio revenue309,907 276,736 863,013 813,076 
Other revenue1,233 4,741 5,434 8,216 
Total revenues311,140 281,477 868,447 821,292 
Operating expenses
Compensation and benefits74,237 76,106 223,284 223,944 
Legal collection costs46,764 28,781 117,741 90,746 
Legal collection fees16,558 14,479 47,413 40,353 
Agency fees24,556 21,020 68,612 61,751 
Professional and outside services22,051 20,452 64,225 63,626 
Communication8,377 10,048 28,271 34,203 
Rent and occupancy3,654 4,175 10,638 12,455 
Depreciation, amortization and impairment of long-lived assets2,439 2,469 8,711 7,826 
Goodwill impairment412,611 — 412,611 — 
Other operating expenses15,440 13,969 42,800 40,792 
Total operating expenses626,687 191,499 1,024,306 575,696 
    (Loss)/income from operations(315,547)89,978 (155,859)245,596 
Other income/(expense)
Interest expense, net(64,087)(61,062)(187,418)(168,693)
Gain on sale of equity method investment— — 38,403 — 
Foreign exchange gain, net67 10 66 138 
Other(38)(676)(293)(836)
(Loss)/income before income taxes(379,605)28,250 (305,101)76,205 
Income tax expense/(benefit)24,361 (672)44,088 10,416 
Net (loss)/income(403,966)28,922 (349,189)65,789 
Net income attributable to noncontrolling interests3,737 1,768 12,481 13,644 
Net (loss)/income attributable to PRA Group, Inc.$(407,703)$27,154 $(361,670)$52,145 
Net (loss)/income per common share attributable to PRA Group, Inc.
Basic$(10.43)$0.69 $(9.20)$1.33 
Diluted$(10.43)$0.69 $(9.20)$1.32 
Weighted average number of shares outstanding
Basic39,078 39,421 39,316 39,353 
Diluted39,078 39,492 39,316 39,495 



PRA Group, Inc.
Consolidated Balance Sheets
(Amounts in thousands)
(unaudited)
September 30,
2025		December 31,
2024
ASSETS
Cash and cash equivalents$107,454 $105,938 
Investments64,915 66,304 
Finance receivables, net4,572,167 4,140,742 
Income taxes receivable17,397 19,559 
Deferred tax assets, net93,872 75,134 
Right-of-use assets28,135 32,173 
Property and equipment, net25,119 29,498 
Goodwill26,871 396,357 
Other assets63,279 65,450 
Total assets$4,999,209 $4,931,155 
LIABILITIES AND EQUITY
Liabilities
Accrued expenses and accounts payable$115,518 $141,211 
Income taxes payable48,782 28,584 
Deferred tax liabilities, net17,663 16,813 
Lease liabilities31,175 36,437 
Interest-bearing deposits139,671 163,406 
Borrowings3,606,978 3,326,621 
Other liabilities55,450 24,476 
Total liabilities4,015,237 3,737,548 
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, 39,083 shares issued and outstanding as of September 30, 2025; 100,000 shares authorized, 39,510 shares issued and outstanding as of December 31, 2024391 395 
Additional paid-in capital17,981 17,882 
Retained earnings1,198,479 1,560,149 
Accumulated other comprehensive loss(288,358)(443,394)
Total stockholders' equity - PRA Group, Inc.928,493 1,135,032 
Noncontrolling interests55,479 58,575 
Total equity983,972 1,193,607 
Total liabilities and equity$4,999,209 $4,931,155 




Purchase Price Multiples
as of September 30, 2025
Amounts in thousands
Purchase Period
Purchase Price (1)(2)
Total Estimated Collections (3)
Estimated Remaining Collections (4)
Current Purchase Price Multiple
Original Purchase Price Multiple (5)
Americas and Australia Core
1996-2014$2,336,839 $6,698,114 $84,642 287%228%
2015443,114 920,784 28,969 208%205%
2016455,767 1,104,447 48,732 242%201%
2017532,851 1,234,254 76,722 232%193%
2018653,975 1,561,810 114,403 239%202%
2019581,476 1,336,705 104,678 230%206%
2020435,668 975,474 109,706 224%213%
2021435,846 734,910 191,471 169%191%
2022406,082 713,779 237,056 176%179%
2023622,583 1,217,624 620,578 196%197%
2024823,662 1,794,207 1,341,743 218%211%
2025483,333 1,033,958 961,063 214%214%
Subtotal8,211,196 19,326,066 3,919,763 
Americas Insolvency
1996-20141,414,476 2,723,230 2 193%155%
201563,170 88,214 3 140%125%
201691,442 118,571 51 130%123%
2017275,257 359,423 362 131%125%
201897,879 137,065 143 140%127%
2019123,077 167,787 447 136%128%
202062,130 90,248 3,060 145%136%
202155,187 74,696 10,147 135%136%
202233,442 47,948 16,283 143%139%
202391,282 119,910 62,374 131%135%
202468,391 99,788 70,538 146%149%
202550,001 80,059 77,368 160%160%
Subtotal2,425,734 4,106,939 240,778 
Total Americas and Australia10,636,930 23,433,005 4,160,541 
Europe Core
1996-2014814,553 2,705,950 384,326 332%205%
2015411,340 768,527 120,755 187%160%
2016333,090 590,863 144,627 177%167%
2017252,174 364,846 84,606 145%144%
2018341,775 563,250 159,355 165%148%
2019518,610 876,312 292,208 169%152%
2020324,119 602,714 229,314 186%172%
2021412,411 728,081 359,607 177%170%
2022359,447 593,532 399,825 165%162%
2023410,593 699,868 503,908 170%169%
2024451,786 817,307 752,460 181%180%
2025357,530 671,159 640,409 188%188%
Subtotal4,987,428 9,982,409 4,071,400 
Europe Insolvency
201410,876 19,233 — 177%129%
201518,973 29,622 — 156%139%
201639,338 58,382 497 148%130%
201739,235 52,653 335 134%128%
201844,908 53,300 871 119%123%
201977,218 114,458 5,579 148%130%
2020105,440 162,059 9,883 154%129%
202153,230 79,535 14,261 149%134%
202244,604 65,672 26,299 147%137%
202346,558 66,278 39,858 142%138%
202443,459 64,128 47,281 148%147%
202515,888 24,112 23,147 152%152%
Subtotal539,727 789,432 168,011 
Total Europe5,527,155 10,771,841 4,239,411 
Total PRA Group$16,164,085 $34,204,846 $8,399,952 
(1)    Includes the acquisition date finance receivables portfolios that were acquired through our business acquisitions.
(2)Non-U.S. amounts are presented at the exchange rate at the end of the period in which the portfolio was purchased. In addition, any purchase price adjustments that occur throughout the life of the portfolio are presented at the period-end exchange rate for 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, 2025 exchange rate.
(5)The original purchase price multiple represents the purchase price multiple at the end of the period of acquisition.



Portfolio Financial Information (1)
Amounts in thousands
September 30, 2025 (year-to-date)As of September 30, 2025
Purchase Period
Cash Collections (2)
Portfolio Income (2)
Changes in Expected Recoveries (2)
Total Portfolio Revenue (2)
Net Finance Receivables (3)
Americas and Australia Core
1996-2014$33,116 $15,076 $14,539 $29,615 $25,383 
201510,292 6,159 (3,525)2,634 12,630 
201614,478 8,358 1,599 9,957 17,005 
201721,888 11,477 5,393 16,870 31,608 
201838,675 16,918 8,963 25,881 56,671 
201937,963 16,735 4,280 21,015 53,085 
202042,193 17,485 4,356 21,841 57,455 
202149,989 26,763 (10,142)16,621 93,816 
202272,183 31,861 (9,887)21,974 135,737 
2023182,901 89,871 (33,376)56,495 332,260 
2024323,633 187,571 26,891 214,462 708,555 
202572,655 56,814 8,544 65,358 475,270 
Subtotal899,966 485,088 17,635 502,723 1,999,475 
Americas Insolvency
1996-2014716 16 715 731 — 
201583 5 72 77 2 
2016221 14 120 134 46 
2017827 78 381 459 318 
2018829 29 425 454 134 
20192,269 78 713 791 425 
20207,739 670 (1,131)(461)2,791 
20219,227 1,250 314 1,564 9,401 
20228,178 1,636 478 2,114 14,339 
202321,637 6,212 498 6,710 52,274 
202417,177 8,236 (1,177)7,059 52,606 
20252,694 2,971 1,335 4,306 50,889 
Subtotal71,597 21,195 2,743 23,938 183,225 
Total Americas and Australia971,563 506,283 20,378 526,661 2,182,700 
Europe Core
1996-201473,218 43,776 19,058 62,834 86,025 
201521,742 9,043 7,080 16,123 59,498 
201620,097 8,757 4,139 12,896 81,902 
201711,764 4,277 (1,251)3,026 56,212 
201826,250 9,330 1,789 11,119 102,423 
201946,787 14,952 12,991 27,943 196,370 
202034,169 13,046 10,509 23,555 138,912 
202145,708 19,334 6,760 26,094 216,925 
202251,788 20,379 3,229 23,608 251,939 
202370,508 28,642 5,439 34,081 300,972 
2024103,453 44,540 5,065 49,605 420,530 
202530,449 14,420 3,954 18,374 343,433 
Subtotal535,933 230,496 78,762 309,258 2,255,141 
Europe Insolvency
2014135 — 135 135 — 
2015119 — 119 119 — 
2016413 62 328 390 128 
2017787 34 501 535 210 
20181,247 70 311 381 728 
20195,073 498 433 931 4,745 
202013,206 988 2,212 3,200 9,221 
202111,394 1,269 4,102 5,371 12,901 
202211,855 2,183 2,759 4,942 22,487 
202311,830 3,225 1,314 4,539 32,904 
202411,455 4,610 1,020 5,630 35,178 
2025958 723 198 921 15,824 
Subtotal68,472 13,662 13,432 27,094 134,326 
Total Europe604,405 244,158 92,194 336,352 2,389,467 
Total PRA Group$1,575,968 $750,441 $112,572 $863,013 $4,572,167 
(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, 2025 exchange rate.






Cash Collections by Year, By Year of Purchase (1)
as of September 30, 2025
Amounts in millions
Cash Collections
Purchase Period
Purchase Price (2)(3)
1996-201420152016201720182019202020212022202320242025Total
Americas and Australia Core
1996-2014$2,336.8 $4,371.9 $727.8 $470.0 $311.2 $222.5 $155.0 $96.6 $68.8 $51.0 $40.2 $49.4 $33.1 $6,597.5 
2015443.1 — 117.0 228.4 185.9 126.6 83.6 57.2 34.9 19.5 14.1 17.3 10.3 894.8 
2016455.8 — — 138.7 256.5 194.6 140.6 105.9 74.2 38.4 24.9 24.0 14.5 1012.3 
2017532.9 — — — 107.3 278.7 256.5 192.5 130.0 76.3 43.8 39.2 21.9 1146.2 
2018654.0 — — — — 122.7 361.9 337.7 239.9 146.1 92.9 75.9 38.7 1415.8 
2019581.5 — — — — — 143.8 349.0 289.8 177.7 110.3 77.7 38.0 1186.3 
2020435.7 — — — — — — 132.9 284.3 192.0 125.8 87.0 42.2 864.2 
2021435.8 — — — — — — — 85.0 177.3 136.8 98.4 50.0 547.5 
2022406.1— — — — — — — — 67.7 195.4 144.7 72.2 480.0 
2023622.5 — — — — — — — — — 108.5 285.9 182.9 577.3 
2024823.7 — — — — — — — — — — 145.9 323.6 469.5 
2025483.3 — — — — — — — — — — — 72.6 72.6 
Subtotal8,211.2 4,371.9 844.8 837.1 860.9 945.1 1,141.4 1,271.8 1,206.9 946.0 892.7 1,045.4 900.0 15,264.0 
Americas Insolvency
1996-20141,414.5 1,949.8 340.8 213.0 122.9 59.1 22.6 5.8 3.3 2.3 1.5 1.3 0.7 2,723.1 
201563.2 — 3.4 17.9 20.1 19.8 16.7 7.9 1.3 0.6 0.3 0.2 0.1 88.3 
201691.4 — — 18.9 30.4 25.0 19.9 14.4 7.4 1.8 0.9 0.6 0.2 119.5 
2017275.3 — — — 49.1 97.3 80.9 58.8 44.0 20.8 4.9 2.5 0.8 359.1 
201897.9 — — — — 6.7 27.4 30.5 31.6 24.6 12.7 2.5 0.8 136.8 
2019123.1 — — — — — 13.4 31.4 39.1 37.8 28.7 14.6 2.3 167.3 
202062.1 — — — — — — 6.5 16.1 20.4 19.5 17.0 7.7 87.2 
202155.2 — — — — — — — 4.6 17.9 17.5 15.3 9.2 64.5 
202233.4 — — — — — — — — 3.2 9.2 11.1 8.2 31.7 
202391.2 — — — — — — — — — 9.0 25.1 21.6 55.7 
202468.4 — — — — — — — — — — 12.1 17.2 29.3 
202550.0 — — — — — — — — — — — 2.8 2.8 
Subtotal2,425.7 1,949.8 344.2 249.8 222.5 207.9 180.9 155.3 147.4 129.4 104.2 102.3 71.6 3,865.3 
Total Americas and Australia10,636.9 6,321.7 1,189.0 1,086.9 1,083.4 1,153.0 1,322.3 1,427.1 1,354.3 1,075.4 996.9 1,147.7 971.6 19,129.3 
Europe Core
1996-2014814.5 195.1 297.5 249.9 224.1 209.6 175.3 151.7 151.0 123.6 108.6 101.7 73.2 2,061.3 
2015411.3 — 45.8 100.3 86.2 80.9 66.1 54.3 51.4 40.7 33.8 30.4 21.7 611.6 
2016333.1 — — 40.4 78.9 72.6 58.0 48.3 46.7 36.9 29.7 27.4 20.1 459.0 
2017252.2 — — — 17.9 56.0 44.1 36.1 34.8 25.2 20.2 17.9 11.8 264.0 
2018341.8 — — — — 24.3 88.7 71.3 69.1 50.7 41.6 37.1 26.2 409.0 
2019518.6 — — — — — 48.0 125.7 121.4 89.8 75.1 68.2 46.8 575.0 
2020324.1 — — — — — — 32.3 91.7 69.0 56.1 50.1 34.2 333.4 
2021412.4 — — — — — — — 48.5 89.9 73.0 66.6 45.7 323.7 
2022359.4 — — — — — — — — 33.9 83.8 74.7 51.8 244.2 
2023410.6 — — — — — — — — — 50.2 103.1 70.5 223.8 
2024451.9 — — — — — — — — — — 46.3 103.5 149.8 
2025357.5 — — — — — — — — — — — 30.4 30.4 
Subtotal4,987.4 195.1 343.3 390.6 407.1 443.4 480.2 519.7 614.6 559.7 572.1 623.5 535.9 5,685.2 
Europe Insolvency
201410.9 — 4.3 3.9 3.2 2.6 1.5 0.8 0.3 0.2 0.2 0.2 0.1 17.3 
201519.0 — 3.0 4.4 5.0 4.8 3.9 2.9 1.6 0.6 0.4 0.2 0.1 26.9 
201639.3 — — 6.2 12.7 12.9 10.7 7.9 6.0 2.7 1.3 0.8 0.4 61.6 
201739.2 — — — 1.2 7.9 9.2 9.8 9.4 6.5 3.8 1.5 0.8 50.1 
201844.9 — — — — 0.6 8.4 10.3 11.7 9.8 7.2 3.5 1.2 52.7 
201977.2 — — — — — 5.0 21.1 23.9 21.0 17.5 12.9 5.1 106.5 
2020105.4 — — — — — — 6.0 34.6 34.1 29.7 25.5 13.2 143.1 
202153.2 — — — — — — — 5.5 14.4 14.7 15.4 11.4 61.4 
202244.6 — — — — — — — — 4.5 12.4 15.2 11.9 44.0 
202346.7 — — — — — — — — — 4.2 12.7 11.8 28.7 
202443.4 — — — — — — — — — — 9.5 11.5 21.0 
202515.9 — — — — — — — — — — — 1.0 1.0 
Subtotal539.7 — 7.3 14.5 22.1 28.8 38.7 58.8 93.0 93.8 91.4 97.4 68.5 614.3 
Total Europe5,527.1 195.1 350.6 405.1 429.2 472.2 518.9 578.5 707.6 653.5 663.5 720.9 604.4 6,299.5 
Total PRA Group$16,164.0 $6,516.8 $1,539.6 $1,492.0 $1,512.6 $1,625.2 $1,841.2 $2,005.6 $2,061.9 $1,728.9 $1,660.4 $1,868.6 $1,576.0 $25,428.8 
(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 are presented at the exchange rate at the end of the period in which the portfolio was purchased. Purchase price adjustments that occur throughout the life of the pool are presented at the period-end exchange rate for the respective period of purchase.





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 Adjusted EBITDA, internally to evaluate the Company’s performance and to set performance goals. Adjusted EBITDA is calculated as net (loss)/income attributable to PRA Group, Inc. plus income tax expense; 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. Adjusted EBITDA is a supplemental measure of performance that is not required by, or presented in accordance with, GAAP. 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 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. Adjusted EBITDA should not be considered as an alternative to net (loss)/income attributable to PRA Group, Inc. determined in accordance with GAAP. Set forth below is a reconciliation of net (loss)/income attributable to PRA Group, Inc., the most directly comparable financial measure calculated and reported in accordance with GAAP, to Adjusted EBITDA for the last twelve months (LTM) ended September 30, 2025 and for the year ended December 31, 2024. The calculation of Adjusted EBITDA below may not be comparable to the calculation of similarly titled measures reported by other companies.

LTMYear Ended
Adjusted EBITDA Reconciliation ($ in thousands)September 30, 2025December 31, 2024
Net (loss)/income attributable to PRA Group, Inc.$(343,214)$70,601 
Adjustments:
Income tax expense54,704 21,032 
Foreign exchange loss81 9 
Interest expense, net247,992 229,267 
Other expense308 851 
Depreciation and amortization10,273 10,792 
Impairment of real estate1,404 — 
Goodwill impairment412,611 — 
Net income attributable to noncontrolling interests16,809 17,972 
Gain on sale of equity method investment(38,403)— 
Recoveries collected and applied to Finance receivables, net less Changes in expected recoveries902,925 787,028 
Adjusted EBITDA$1,265,490 $1,137,552 
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 Adjusted cash efficiency ratios for the periods indicated (in thousands, except for ratio data):


Adjusted Operating Expenses Reconciliation and Adjusted Cash Efficiency Ratio
Third QuarterYear-to-Date
2025202420252024
Cash collections$542,244 $477,110 $1,575,968 $1,400,510 
Fee income622 3,138 3,745 4,036 
Cash receipts542,866 480,248 1,579,713 1,404,546 
Total operating expenses626,687 191,499 1,024,306 575,696 
Less: Goodwill impairment412,611 — 412,611 — 
Adjusted operating expenses214,076191,499611,695575,696
Cash receipts less Adjusted operating expenses328,790288,749968,018828,850
Adjusted cash efficiency ratio60.6%60.1%61.3%59.0%

In addition, the Company uses return on average tangible equity ("ROATE"), which is a supplemental measure of performance that is not required by, or presented in accordance with, GAAP, 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 stockholder 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 annualized Net (loss)/income attributable to PRA Group, Inc. by average tangible equity.
ROATE may include certain items that are not indicative of the ongoing operating results of the Company's business. Accordingly, the Company also uses Adjusted ROATE to monitor and evaluate operating performance relative to the Company's equity. Management believes that Adjusted ROATE is a useful financial measure for investors because it excludes the impact of certain transactions that are either unusual or infrequent in nature, or both ("Adjusted net income attributable to PRA Group, Inc."). Adjusted ROATE is calculated by dividing Adjusted net income attributable to PRA Group, Inc. by average tangible equity.
The following table provides a reconciliation of Total stockholders' equity - PRA Group, Inc. as reported in accordance with GAAP to average tangible equity and a reconciliation of Net (loss)/income attributable to PRA Group, Inc. to Adjusted net income attributable to PRA Group, Inc., and provides the Company's ROATE and Adjusted ROATE for the periods indicated (in thousands, except for ratio data):



Average Tangible Equity Reconciliation (1)
Balance as of Period EndThird QuarterYear-to-Date
September 30, 2025September 30, 20242025202420252024
Total stockholders' equity - PRA Group, Inc. (2)
$928,493 $1,218,882 $1,132,709 $1,182,173 $1,154,889 $1,165,196 
Less: Goodwill26,871 423,011 233,160 419,329 320,848 420,517 
Less: Other intangible assets1,470 1,620 1,506 1,609 1,488 1,656 
Average tangible equity$898,043 $761,235 $832,553 $743,023 
ROATE (3)
Third QuarterYear-to-Date
2025202420252024
Net (loss)/income attributable to PRA Group, Inc.$(407,703)$27,154 $(361,670)$52,145 
Return on average tangible equity(181.6)%14.3%(57.9)%9.4%
Adjusted Net Income Attributable to PRA Group, Inc. Reconciliation and Adjusted ROATE (4)
Third QuarterYear-to-Date
2025202420252024
Net (loss)/income attributable to PRA Group, Inc.$(407,703)$27,154 $(361,670)$52,145 
Less: Gain on sale of equity method investment, net of tax— — (29,686)— 
Plus: Goodwill impairment, net of tax428,580 — 428,580 — 
Adjusted net income attributable to PRA Group, Inc.20,877 27,154 37,224 52,145 
Adjusted ROATE9.3%14.3%6.0%9.4%
Investor Contact:
Najim Mostamand, CFA
Vice President, Investor Relations
757-431-7913
IR@PRAGroup.com

Media Contact:
Allison Herman
Manager, Public Relations and Strategic Communication
(757) 381-5205
mediainquiries@pragroup.com

1.Amounts represent the average balances for the respective periods.
2.Amounts not adjusted for Gain on sale of equity method investment due to the de minimus effect.
3.Based on annualized Net (loss)/income attributable to PRA Group, Inc.
4.Based on annualized Adjusted net income attributable to PRA Group, Inc.