$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)1 of $8.9 billion, up 7%.
•Adjusted EBITDA2 of $1.4 billion, up 10%.
•Cash efficiency ratio3 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 (1)
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 (1)
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 (1)
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 commitments2 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.
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 Multiples
as of June 30, 2026
(in thousands, except percentages)
Purchase Period
Purchase Price (1)(2)
Total Estimated Collections (3)
Estimated Remaining Collections (4)
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 (5)
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.
Portfolio Financial Information (1)
(in thousands)
June 30, 2026 (year-to-date)
As of June 30, 2026
Purchase Period
Cash Collections (2)
Portfolio Income (2)
Changes in Expected Recoveries (2)
Total Portfolio Revenue (2)
Net Finance Receivables (3)
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 (4)
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.
Cash Collections by Year, By Year of Purchase (1)
as of June 30, 2026
(in millions)
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 (3)
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 (1)
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 (2)
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 (3)
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 (4)
—
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
%
Investor Contact:
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.
4.Based on the annual effective tax rate and pretax income excluding the effect of the adjusting items.
