PRA Group Reports Fourth Quarter and Full Year 2025 Results
Company Achieves 13% Cash Collections Growth Year-over-Year and $1.2 Billion of Purchases for Full Year 2025
Net Loss Attributable to PRA Group, Inc. of $305 Million for Full Year 2025, Primarily Driven by a Non-Cash Goodwill Impairment Charge of $413 Million in Q3 2025; Adjusted Net Income Attributable to PRA of $73 million for Full Year 2025
Continued to Improve U.S. Operations and Build on the Strong Track Record of our European Business
NORFOLK, Va., Feb. 26, 2026 /PRNewswire/ -- PRA Group, Inc. (Nasdaq: PRAA) (the "Company" or "PRA"), a global leader in acquiring and collecting nonperforming loan portfolios, today reported its financial results for the fourth quarter ("Q4 2025") and full year of 2025.
Q4 2025 Highlights
Full Year 2025 Highlights
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 is calculated by dividing cash receipts less adjusted operating expenses by cash receipts. Calculation of the adjusted cash efficiency ratio can be found at the end of this press release.
2.
Refers to the sum of all future projected cash collections on the Company's nonperforming loan portfolios.
3.
A reconciliation of net income/(loss) attributable to PRA Group, Inc. to adjusted net income/(loss) attributable to PRA can be found at the end of this press release.
4.
A reconciliation of diluted earnings per share to adjusted diluted earnings per share can be found at the end of this press release.
5.
A reconciliation of net income/(loss) attributable to PRA Group, Inc. to Adjusted EBITDA can be found at the end of this press release.
"PRA made significant progress in 2025. Since stepping into the CEO role in June, we have further strengthened our U.S. operational platform, built on the track record of our European franchise, and developed our longer-term strategy and key financial goals," said Martin Sjolund, president and chief executive officer. "In the U.S., we successfully executed against our near-term strategic priorities, including driving cost savings, reorganizing our operations, creating a new talent hub, and implementing our IT modernization roadmap."
"Our adjusted non-GAAP results demonstrate a stable earnings platform, underpinned by a strong and well-diversified capital structure with moderate leverage that has declined in recent quarters. During the fourth quarter, we repurchased $10 million of our shares, bringing the total amount repurchased in 2025 to $20 million, in line with our capital allocation strategy to drive shareholder value."
"Overall, we are moving in the right direction as we continue to improve our financial profile and focus on delivering higher returns while reducing leverage. Looking ahead, we are introducing our PRA 3.0 strategy to evolve the Company into a high-performing, technology-enabled global allocator of capital. We believe that the actions we are taking will drive stronger financial results and unlock meaningful long-term value for our shareholders."
Cash Collections and Revenues
The following table presents cash collections by quarter and by source on an as reported and constant currency-adjusted basis:
Cash Collection Source
2025
2024
($ in thousands)
Q4
Q3
Q2
Q1
Q4
U.S. Core
$ 249,322
$ 258,277
$ 253,856
$ 240,467
$ 208,624
U.S. Insolvency
20,223
21,131
21,175
20,589
21,722
Europe Core
188,277
185,910
185,652
164,371
162,564
Europe Insolvency
19,166
22,658
24,609
21,205
23,724
Other markets (1)
54,670
54,268
50,996
50,804
$ 51,432
Total Cash Collections
$ 531,658
$ 542,244
$ 536,288
$ 497,436
$ 468,066
Cash Collection Source -
Constant Currency Adjusted
2025
2024
($ in thousands)
Q4
Q4
U.S. Core
$ 249,322
$ 208,623
U.S. Insolvency
20,223
21,722
Europe Core
188,277
174,587
Europe Insolvency
19,166
24,680
Other markets (1)
54,670
$ 54,822
Total Cash Collections
$ 531,658
$ 484,434
1.
Reflects total cash collections in South America, Canada and Australia.
Three Months Ended Dec 31,
Year Ended Dec 31,
($ in thousands)
2025
2024
2025
2024
Portfolio income
$ 262,830
$ 229,720
$ 1,013,271
$ 857,188
Recoveries collected in excess of forecast
36,543
31,879
120,696
156,135
Changes in expected future recoveries
27,336
23,381
55,755
84,733
Changes in expected recoveries
63,879
55,260
176,451
240,868
Total portfolio revenue
$ 326,709
$ 284,980
$ 1,189,722
$ 1,098,056
Expenses
1.
A reconciliation of Total operating expenses to Adjusted operating expenses can be found at the end of this press release.
Portfolio Purchases
Portfolio Purchase Source
2025
2024
($ in thousands)
Q4
Q3
Q2
Q1
Q4
U.S. Core
$ 102,254
$ 119,672
$ 160,193
$ 148,903
$ 161,167
U.S. Insolvency
10,088
14,809
22,134
12,059
9,460
Europe Core
152,375
95,239
142,465
108,390
220,875
Europe Insolvency
4,758
5,934
4,757
4,856
8,272
Other markets (2)
45,326
$ 19,838
$ 16,956
$ 17,494
$ 32,896
Total Portfolio Purchases
$ 314,801
$ 255,492
$ 346,505
$ 291,702
$ 432,670
2.
Reflects total portfolio purchases in South America, Canada and Australia.
3.
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.
Credit Availability
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 February 26, 2027, or call 646-517-4150 in the U.S. or 1-888-660-6345 outside the U.S. and use access code 83300# until March 5, 2026.
About PRA Group
As a global leader in acquiring and collecting nonperforming loan portfolios, PRA Group, Inc. returns capital to banks and other creditors to help expand financial services for consumers in the Americas, Europe and Australia. With thousands of employees worldwide, PRA Group, Inc. companies collaborate with customers to help them resolve their debt. For more information, please visit www.pragroup.com.
About Forward-Looking Statements
Statements made herein that are not historical in nature, including PRA'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'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 PRA's expectations will prove to be correct. Forward-looking statements involve risks and uncertainties, some of which are not currently known to PRA. 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 risk factors and other risks that are described from time to time in PRA's filings with the Securities and Exchange Commission ("SEC"), including PRA'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's website and contain a detailed discussion of PRA'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 SEC or otherwise. Except as required by law, PRA assumes no obligation to publicly update or revise its forward-looking statements contained herein to reflect any change in PRA'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.
Consolidated Income Statements
(Amounts in thousands, except per share amounts)
(unaudited)
Three Months Ended
December 31,
Year Ended December 31,
2025
2024
2025
2024
Revenues
Portfolio income
$ 262,830
$ 229,720
$ 1,013,271
$ 857,188
Changes in expected recoveries
63,879
55,260
176,451
240,868
Total portfolio revenue
326,709
284,980
1,189,722
1,098,056
Other revenue
6,681
8,252
12,115
16,468
Total revenues
333,390
293,232
1,201,837
1,114,524
Operating expenses
Compensation and benefits
73,381
74,959
296,665
298,903
Legal collection costs
43,906
34,036
161,647
124,782
Legal collection fees
16,906
16,270
64,319
56,623
Agency fees
23,812
21,583
92,424
83,334
Professional and outside services
20,164
19,592
84,389
83,218
Communication
8,433
9,230
36,704
43,433
Rent and occupancy
3,879
4,474
14,517
16,929
Depreciation, amortization and impairment of long-lived assets
1,728
2,966
10,439
10,792
Goodwill impairment
—
—
412,611
—
Other operating expenses
15,595
15,986
58,395
56,778
Total operating expenses
207,804
199,096
1,232,110
774,792
Income/(loss) from operations
125,586
94,136
(30,273)
339,732
Other income and (expense)
Interest expense, net
(64,370)
(60,574)
(251,788)
(229,267)
Gain on sale of equity method investment
—
—
38,403
—
Other
646
(162)
419
(860)
Income/(loss) before income taxes
61,862
33,400
(243,239)
109,605
Income tax expense
2,647
10,616
46,735
21,032
Net Income/(loss)
59,215
22,784
(289,974)
88,573
Net income attributable to noncontrolling interests
2,687
4,328
15,168
17,972
Net income/(loss) attributable to PRA Group, Inc.
$ 56,528
$ 18,456
$ (305,142)
$ 70,601
Net income/(loss) per common share attributable to PRA Group, Inc.
Basic
$ 1.46
$ 0.47
$ (7.79)
$ 1.79
Diluted
$ 1.46
$ 0.47
$ (7.79)
$ 1.79
Weighted average number of shares outstanding
Basic
38,741
39,468
39,173
39,382
Diluted
38,845
39,681
39,173
39,542
PRA Group, Inc.
Consolidated Balance Sheets
(Amounts in thousands)
December 31, 2025
December 31, 2024
ASSETS
Cash and cash equivalents
$ 104,409
$ 105,938
Investments
66,628
66,304
Finance receivables, net
4,688,024
4,140,742
Income taxes receivable
17,702
19,559
Deferred tax assets, net
76,955
75,134
Right-of-use assets
29,206
32,173
Property and equipment, net
24,886
29,498
Goodwill
26,871
396,357
Other assets
68,641
65,450
Total assets
$ 5,103,322
$ 4,931,155
LIABILITIES AND EQUITY
Liabilities
Accrued expenses and accounts payable
$ 131,812
$ 141,211
Income taxes payable
29,845
28,584
Deferred tax liabilities, net
17,064
16,813
Lease liabilities
32,160
36,437
Interest-bearing deposits
106,148
163,406
Borrowings
3,697,338
3,326,621
Other liabilities
48,990
24,476
Total liabilities
4,063,357
3,737,548
Equity
Preferred stock, $0.01 par value, 2,000 shares authorized, no shares issued and outstanding
—
—
Common stock, $0.01par value, 100,000 shares authorized, 38,453 shares issued and
outstanding as of December 31, 2025; 100,000 shares authorized, 39,510 shares issued and
outstanding as of December 31, 2024
385
395
Additional paid-in capital
11,474
17,882
Retained earnings
1,255,007
1,560,149
Accumulated other comprehensive loss
(287,015)
(443,394)
Total stockholders' equity - PRA Group, Inc.
979,851
1,135,032
Noncontrolling interests
60,114
58,575
Total equity
1,039,965
1,193,607
Total liabilities and equity
$ 5,103,322
$ 4,931,155
Purchase Price Multiples
as of December 31, 2025
Amounts 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 (5)
U.S. Core
1996-2015
$ 2,736,875
$ 7,502,110
$ 102,171
274 %
224 %
2016
400,545
819,859
35,429
205 %
195 %
2017
511,902
1,168,721
73,695
228 %
193 %
2018
604,669
1,373,598
101,701
227 %
199 %
2019
432,222
1,017,197
77,296
235 %
209 %
2020
415,384
940,632
97,908
226 %
215 %
2021
339,885
605,109
130,492
178 %
191 %
2022
275,433
435,295
151,728
158 %
164 %
2023
506,319
956,536
495,435
189 %
191 %
2024
727,672
1,627,822
1,133,172
224 %
211 %
2025
531,021
1,144,436
1,038,346
216 %
216 %
Subtotal
7,481,927
17,591,315
3,437,373
U.S. Insolvency
1996-2015
1,472,385
2,806,455
1
191 %
154 %
2016
67,454
85,643
33
127 %
124 %
2017
275,257
359,492
257
131 %
125 %
2018
97,879
137,203
94
140 %
127 %
2019
120,845
164,082
289
136 %
128 %
2020
62,130
90,166
1,993
145 %
136 %
2021
54,898
74,234
7,566
135 %
136 %
2022
33,442
47,906
13,948
143 %
139 %
2023
61,242
80,354
42,982
131 %
136 %
2024
68,168
99,515
64,368
146 %
149 %
2025
59,091
94,574
89,396
160 %
160 %
Subtotal
2,372,791
4,039,624
220,927
Total U.S.
9,854,718
21,630,939
3,658,300
Europe Core
2012-2015
1,225,893
3,502,939
501,505
286 %
190 %
2016
333,090
592,884
139,586
178 %
167 %
2017
252,174
365,536
81,441
145 %
144 %
2018
341,775
565,847
154,776
166 %
148 %
2019
518,610
886,432
288,716
171 %
152 %
2020
324,119
606,494
222,958
187 %
172 %
2021
412,411
729,384
346,484
177 %
170 %
2022
359,447
596,537
391,041
166 %
162 %
2023
410,593
703,345
487,208
171 %
169 %
2024
451,786
817,788
724,434
181 %
180 %
2025
512,533
949,923
892,135
185 %
185 %
Subtotal
5,142,431
10,317,109
4,230,284
Europe Insolvency
2014-2015
29,849
48,955
—
164 %
135 %
2016
39,338
58,523
469
149 %
130 %
2017
39,235
52,785
300
135 %
128 %
2018
44,908
53,296
686
119 %
123 %
2019
77,218
114,448
4,538
148 %
130 %
2020
105,440
162,042
7,550
154 %
129 %
2021
53,230
80,047
11,541
150 %
134 %
2022
44,604
65,853
23,130
148 %
137 %
2023
46,558
66,329
36,108
142 %
138 %
2024
43,459
64,128
43,558
148 %
147 %
2025
20,760
30,102
28,167
145 %
145 %
Subtotal
544,599
796,508
156,047
Total Europe
5,687,030
11,113,617
4,386,331
Total other markets (6)
940,304
2,193,890
564,234
233 %
204 %
Total PRA Group
$ 16,482,052
$ 34,938,446
$ 8,608,865
(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 year in which the portfolio was purchased. Purchase price adjustments that occur throughout the life of the portfolio are presented at the year-end exchange rate for the respective year of purchase.
(3)
Non-U.S. amounts are presented at the year-end exchange rate for the respective year of purchase.
(4)
Non-U.S. amounts are presented at the December 31, 2025 exchange rate.
(5)
The original purchase price multiple represents the purchase price multiple at the end of the year of purchase.
(6)
Reflects all vintages in South America, Canada and Australia.
Portfolio Financial Information (1)
Amounts in thousands
Year Ended December 31, 2025
As of December 31, 2025
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
$ 53,587
$ 26,258
$ 13,387
$ 39,645
$ 33,430
2016
12,907
7,702
(636)
7,066
14,911
2017
26,648
14,363
6,487
20,850
30,259
2018
42,911
19,553
7,183
26,736
49,931
2019
37,333
16,692
3,072
19,764
37,766
2020
50,390
21,632
4,934
26,566
50,181
2021
52,793
28,021
(14,710)
13,311
65,403
2022
58,512
25,407
(19,249)
6,158
89,144
2023
185,870
91,451
(33,694)
57,757
268,624
2024
374,880
212,323
42,435
254,758
611,570
2025
106,091
89,455
9,235
98,690
522,814
Subtotal
1,001,922
552,857
18,444
571,301
1,774,033
U.S. Insolvency
1996-2015
1,024
24
1,009
1,033
1
2016
127
16
8
24
31
2017
1,000
92
448
540
227
2018
1,015
32
562
594
89
2019
2,682
85
1,004
1,089
276
2020
8,723
747
(1,207)
(460)
1,806
2021
11,760
1,510
275
1,785
7,080
2022
10,471
2,057
437
2,494
12,425
2023
18,040
5,243
(123)
5,120
36,785
2024
23,097
10,571
(1,091)
9,480
48,880
2025
5,179
5,377
1,461
6,838
59,772
Subtotal
83,118
25,754
2,783
28,537
167,372
Total U.S.
1,085,040
578,611
21,227
599,838
1,941,405
Europe Core
2012-2015
126,911
69,456
43,876
113,332
148,237
2016
27,114
11,577
5,547
17,124
79,003
2017
15,710
5,604
(857)
4,747
54,052
2018
34,331
12,302
3,333
15,635
99,338
2019
61,690
19,757
20,224
39,981
194,078
2020
45,146
17,288
12,576
29,864
134,890
2021
59,665
25,558
7,397
32,955
209,447
2022
67,772
26,901
4,471
31,372
246,086
2023
93,166
37,757
7,603
45,360
290,922
2024
135,606
58,624
6,222
64,846
405,324
2025
57,099
27,241
5,451
32,692
484,918
Subtotal
724,210
312,065
115,843
427,908
2,346,295
Europe Insolvency
2014-2015
347
—
347
347
—
2016
594
81
482
563
120
2017
952
42
630
672
183
2018
1,427
83
306
389
556
2019
6,105
606
424
1,030
3,811
2020
15,517
1,182
2,185
3,367
7,071
2021
14,619
1,591
4,658
6,249
10,553
2022
15,240
2,791
2,957
5,748
19,924
2023
15,679
4,160
1,421
5,581
30,139
2024
15,241
5,996
1,076
7,072
32,886
2025
1,917
1,349
517
1,866
20,382
Subtotal
87,638
17,881
15,003
32,884
125,625
Total Europe
811,848
329,946
130,846
460,792
2,471,920
Total other markets (4)
210,738
104,714
24,378
129,092
274,699
Total PRA Group
$ 2,107,626
$ 1,013,271
$ 176,451
$ 1,189,722
$ 4,688,024
(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 year.
(3)
Non-U.S. amounts are presented at the December 31, 2025 exchange rate.
(4)
Reflects all vintages in South America, Canada and Australia.
Cash Collections by Year, By Year of Purchase (1)
as of December 31, 2025
Amounts in millions
Cash Collections
Purchase Period
Purchase
Price (2)(3)
1996-2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
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
$ 7,392.8
2016
400.5
—
86.1
195.3
160.1
116.6
88.7
59.9
29.1
17.6
18.1
12.9
784.4
2017
511.9
—
—
94.3
264.4
247.1
185.6
124.8
73.1
41.6
37.5
26.6
1095.0
2018
604.7
—
—
—
106.3
320.2
304.7
214.8
131.6
83.2
68.1
42.9
1271.8
2019
432.2
—
—
—
—
93.4
282.2
237.4
141.7
86.1
61.8
37.3
939.9
2020
415.4
—
—
—
—
—
127.4
274.7
185.4
121.3
83.6
50.4
842.8
2021
339.9
—
—
—
—
—
—
73.8
149.9
115.3
82.8
52.8
474.6
2022
275.4
—
—
—
—
—
—
—
34.9
102.4
87.8
58.5
283.6
2023
506.3
—
—
—
—
—
—
—
—
63.5
211.8
185.9
461.2
2024
727.7
—
—
—
—
—
—
—
—
—
119.8
374.9
494.7
2025
531.0
—
—
—
—
—
—
—
—
—
—
106.1
106.1
Subtotal
7,481.9
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
14,146.9
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
2,806.3
2016
67.5
—
10.1
18.9
18.2
16.4
13.0
6.6
1.3
0.6
0.4
0.1
85.6
2017
275.3
—
—
49.1
97.3
80.9
58.8
44.0
20.8
4.9
2.5
1.0
359.3
2018
97.9
—
—
—
6.7
27.4
30.5
31.6
24.6
12.7
2.5
1.0
137.0
2019
120.8
—
—
—
—
13.4
30.9
37.9
36.8
28.0
14.2
2.7
163.9
2020
62.1
—
—
—
—
—
6.5
16.1
20.4
19.5
17.0
8.7
88.2
2021
54.9
—
—
—
—
—
—
4.5
17.7
17.4
15.2
11.8
66.6
2022
33.4
—
—
—
—
—
—
—
3.2
9.2
11.1
10.5
34.0
2023
61.2
—
—
—
—
—
—
—
—
4.5
14.8
18.0
37.3
2024
68.2
—
—
—
—
—
—
—
—
—
12.1
23.1
35.2
2025
59.1
—
—
—
—
—
—
—
—
—
—
5.2
5.2
Subtotal
2,372.8
2,290.4
240.5
210.6
200.8
177.2
153.3
145.2
127.7
98.6
91.2
83.1
3,818.6
Total U.S.
9,854.7
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
17,965.5
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
2,704.9
2016
333.1
—
40.4
78.9
72.6
58.0
48.3
46.7
36.9
29.7
27.4
27.1
466.0
2017
252.2
—
—
17.9
56.0
44.1
36.1
34.8
25.2
20.2
17.9
15.7
267.9
2018
341.8
—
—
—
24.3
88.7
71.3
69.1
50.7
41.6
37.1
34.3
417.1
2019
518.6
—
—
—
—
48.0
125.7
121.4
89.8
75.1
68.2
61.7
589.9
2020
324.1
—
—
—
—
—
32.3
91.7
69.0
56.1
50.1
45.1
344.3
2021
412.4
—
—
—
—
—
—
48.5
89.9
73.0
66.6
59.7
337.7
2022
359.4
—
—
—
—
—
—
—
33.9
83.8
74.7
67.8
260.2
2023
410.6
—
—
—
—
—
—
—
—
50.2
103.1
93.2
246.5
2024
451.9
—
—
—
—
—
—
—
—
—
46.3
135.6
181.9
2025
512.5
—
—
—
—
—
—
—
—
—
—
57.1
57.1
Subtotal
5,142.4
538.4
390.6
407.1
443.4
480.2
519.7
614.6
559.7
572.1
623.5
724.2
5,873.5
Europe Insolvency
2014-2015
29.9
7.3
8.3
8.2
7.4
5.4
3.7
1.9
0.8
0.6
0.4
0.3
44.3
2016
39.3
—
6.2
12.7
12.9
10.7
7.9
6.0
2.7
1.3
0.8
0.6
61.8
2017
39.2
—
—
1.2
7.9
9.2
9.8
9.4
6.5
3.8
1.5
1.0
50.3
2018
44.9
—
—
—
0.6
8.4
10.3
11.7
9.8
7.2
3.5
1.4
52.9
2019
77.2
—
—
—
—
5.0
21.1
23.9
21.0
17.5
12.9
6.1
107.5
2020
105.4
—
—
—
—
—
6.0
34.6
34.1
29.7
25.5
15.5
145.4
2021
53.2
—
—
—
—
—
—
5.5
14.4
14.7
15.4
14.6
64.6
2022
44.6
—
—
—
—
—
—
—
4.5
12.4
15.2
15.2
47.3
2023
46.7
—
—
—
—
—
—
—
—
4.2
12.7
15.7
32.6
2024
43.4
—
—
—
—
—
—
—
—
—
9.5
15.2
24.7
2025
20.8
—
—
—
—
—
—
—
—
—
—
1.9
1.9
Subtotal
544.6
7.3
14.5
22.1
28.8
38.7
58.8
93.0
93.8
91.4
97.4
87.6
633.3
Total Europe
5,687.0
545.7
405.1
429.2
472.2
518.9
578.5
707.6
653.5
663.5
720.9
811.8
6,506.8
Total other markets (4)
$ 940.3
$ 33.9
$ 86.5
$ 103.9
$ 83.7
$ 137.0
$ 135.9
$ 125.4
$ 135.0
$ 215.9
$ 220.5
$ 210.7
$ 1,488.4
Total PRA Group
$ 16,482.0
$ 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
$ 2,107.5
$ 25,960.7
(1)
Non-U.S. amounts are presented using the average exchange rates during the respective year.
(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 year in which the portfolio was purchased. Purchase price adjustments that occur throughout the life of the pool are presented at the year-end exchange rate for the respective year of purchase.
(4)
Reflects all vintages in South America, Canada and Australia.
Non-GAAP Financial Measures
The Company reports its financial results in accordance with U.S. generally accepted accounting principles ("GAAP"). However, management uses certain non-GAAP financial measures, including the non-GAAP financial measures referred to below, internally to evaluate the Company's performance and to set performance goals. Included below are reconciliations of the most directly comparable financial measures calculated in accordance with GAAP to the corresponding non-GAAP financial measure. The non-GAAP financial measures included below should not be considered as an alternative to the most directly comparable financial measure determined in accordance with GAAP. The calculation of the non-GAAP financial measures included below may not be comparable to the calculation of similarly titled financial measures reported by other companies.
Adjusted EBITDA
Adjusted EBITDA is calculated as net income (or loss) attributable to PRA Group, Inc. plus income tax expense (or less income tax benefit); less foreign exchange gain (or plus foreign exchange loss); plus interest expense, net; plus other expense; plus depreciation and amortization; plus impairment of real estate; plus goodwill impairment; plus net income attributable to noncontrolling interests; less gain on sale of equity method investment; and plus recoveries collected and applied to Finance receivables, net less Changes in expected recoveries. The Company presents Adjusted EBITDA because the Company considers it an important supplemental measure of its operational and financial performance. Management believes Adjusted EBITDA helps provide enhanced period-to-period comparability of the Company's operational and financial performance and is useful to investors as other companies in the industry report similar financial measures. Set forth below is a reconciliation of net income/(loss) attributable to PRA Group, Inc. to Adjusted EBITDA for the years ended December 31, 2025 and 2024.
Adjusted EBITDA Reconciliation ($ in thousands)
2025
2024
Net income/(loss) attributable to PRA Group, Inc.
$ (305,142)
$ 70,601
Adjustments:
Income tax expense
46,735
21,032
Foreign exchange (gain)/loss
(755)
9
Interest expense, net
251,788
229,267
Other expense
336
851
Depreciation and amortization
9,035
10,792
Impairment of real estate
1,404
—
Goodwill impairment
412,611
—
Net income attributable to noncontrolling interests
15,168
17,972
Gain on sale of equity method investment
(38,403)
—
Recoveries collected and applied to Finance receivables, net less Changes in expected recoveries
922,697
787,028
Adjusted EBITDA
$ 1,315,474
$ 1,137,552
Adjusted Cash Efficiency Ratio
The Company uses an adjusted cash efficiency ratio 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 years indicated (in thousands, except for ratio data):
Adjusted Operating Expenses Reconciliation
and Adjusted Cash Efficiency Ratio
2025
2024
2023
Cash collections
$ 2,107,626
$ 1,868,576
$ 1,660,450
Fee income
9,996
10,023
10,384
Cash receipts
2,117,622
1,878,599
1,670,834
Total operating expenses
1,232,110
774,792
702,062
Less: Goodwill impairment
412,611
—
—
Adjusted operating expenses
819,499
774,792
702,062
Cash receipts less Adjusted operating expenses
1,298,123
1,103,807
968,772
Adjusted cash efficiency ratio
61.3 %
58.8 %
58.0 %
Adjusted Net Income/(Loss) Attributable to PRA, Adjusted Diluted Earnings Per Share, ROATE and Adjusted ROATE
We use Net income/(loss) attributable to PRA Group, Inc. and Diluted earnings per share excluding the impact of certain transactions that are unusual or infrequent in nature and not reflective of our ongoing operations ("Adjusted net income/(loss) attributable to PRA" and "Adjusted diluted earnings per share", respectively) to monitor and evaluate our operating performance and allow for better comparability. Management believes Adjusted net income/(loss) attributable to PRA and Adjusted diluted earnings per share are useful financial measures for investors in evaluating our operating results.
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. Average tangible equity is defined as average Total stockholders' equity - PRA Group, Inc. less average goodwill and average other intangible assets. ROATE is calculated by dividing Net income/(loss) 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 is based on Adjusted net income/(loss) attributable to PRA. Adjusted ROATE is calculated by dividing Adjusted net income/(loss) attributable to PRA by average tangible equity.
The following table provides a reconciliation of Total stockholders' equity - PRA Group, Inc. to average tangible equity and a reconciliation of Net income/(loss) attributable to PRA Group, Inc. to Adjusted net income/(loss) attributable to PRA and provides the Company's ROATE and Adjusted ROATE for the years indicated (in thousands, except for ratio data):
Balance as of Year End
Average Tangible Equity Reconciliation (1)
2025
2024
2023
2025
2024
2023
Total stockholders' equity - PRA Group, Inc. (2)
$ 979,851
$ 1,135,032
$ 1,167,112
$ 1,119,881
$ 1,159,163
$ 1,166,846
Goodwill
26,871
396,357
431,564
(262,053)
(415,685)
(423,110)
Other intangible assets
1,435
1,453
1,742
(1,477)
(1,616)
(1,786)
Average tangible equity
$ 856,351
$ 741,862
$ 741,950
ROATE
2025
2024
2023
Net income/(loss) attributable to PRA Group, Inc.
$ (305,142)
$ 70,601
$ (83,477)
Return on average tangible equity
(35.6) %
9.5 %
(11.3) %
Adjusted Net Income/(Loss) Attributable to
PRA Reconciliation and Adjusted ROATE
2025
2024
2023
Net income/(loss) attributable to PRA Group, Inc.
$ (305,142)
$ 70,601
$ (83,477)
Gain on sale of equity method investment
(38,403)
—
—
Goodwill impairment
412,611
—
—
Tax effect of adjusting items (3)
3,515
—
—
Adjusted net income/(loss) attributable to PRA
72,581
70,601
(83,477)
Adjusted ROATE
8.5 %
9.5 %
(11.3) %
The following table provides a reconciliation of diluted earnings per share to Adjusted diluted earnings per share:
Adjusted Diluted Earnings Per Share Reconciliation
2025
2024
2023
Diluted earnings per share
$ (7.79)
$ 1.79
$ (2.13)
Effect of adjusting items and dilutive shares (4)
9.63
—
—
Adjusted diluted earnings per share
$ 1.84
$ 1.79
$ (2.13)
1. Amounts represent the average balances for the respective years.
2. Not adjusted for Gain on sale of equity method investment in 2025 due to the de minimis effect.
3. Based on the annual effective tax rate and pretax income excluding the effect of the adjusting items.
4. Impact of the non-GAAP adjusting items and dilutive effect of all potential shares of common stock.
Investor Contact:
Najim Mostamand, CFA
Vice President, Investor Relations
(757) 431-7913
[email protected]
SOURCE PRA Group, Inc.