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., Nov. 3, 2025 /PRNewswire/ -- 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)

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.

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.

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

Refers to the sum of all future projected cash collections on the Company's nonperforming loan portfolios.

"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."

"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 Source

2025

2024

($ in thousands)

Americas and Australia Core

$ 310,108

$ 301,698

$ 288,160

$ 257,711

$ 266,977

Americas Insolvency

23,568

24,329

23,700

24,067

26,065

Europe Core

185,910

185,652

164,371

162,564

158,242

Europe Insolvency

22,658

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-Adjusted

2025

2024

($ in thousands)

Americas and Australia Core

$ 310,108

$ 267,649

Americas Insolvency

23,568

26,040

Europe Core

185,910

166,803

Europe Insolvency

22,658

26,802

Total cash collections

$ 542,244

$ 487,294

Three Months Ended Sept 30,

Nine Months Ended Sept 30,

($ in thousands)

2025

2024

2025

2024

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

Expenses

Portfolio Purchases

Portfolio Purchase Source

2025

2024

($ in thousands)

Americas & Australia Core

$ 139,484

$ 177,097

$ 165,503

$ 194,063

$ 263,613

Americas Insolvency

14,835

22,186

12,953

9,460

10,162

Europe Core

95,239

142,465

108,390

220,875

71,507

Europe Insolvency

5,934

4,757

4,856

8,272

4,696

Total portfolio acquisitions

$ 255,492

$ 346,505

$ 291,702

$ 432,670

$ 349,978

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 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.

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,

2025

2024

2025

2024

Revenues

Portfolio income

$ 258,549

$ 216,122

$ 750,441

$ 627,468

Changes in expected recoveries

51,358

60,614

112,572

185,608

Total portfolio revenue

309,907

276,736

863,013

813,076

Other revenue

1,233

4,741

5,434

8,216

Total revenues

311,140

281,477

868,447

821,292

Operating expenses

Compensation and benefits

74,237

76,106

223,284

223,944

Legal collection costs

46,764

28,781

117,741

90,746

Legal collection fees

16,558

14,479

47,413

40,353

Agency fees

24,556

21,020

68,612

61,751

Professional and outside services

22,051

20,452

64,225

63,626

Communication

8,377

10,048

28,271

34,203

Rent and occupancy

3,654

4,175

10,638

12,455

Depreciation, amortization and impairment of long-lived assets

2,439

2,469

8,711

7,826

Goodwill impairment

412,611

—

412,611

—

Other operating expenses

15,440

13,969

42,800

40,792

Total operating expenses

626,687

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, net

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 interests

3,737

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

Basic

39,078

39,421

39,316

39,353

Diluted

39,078

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

Investments

64,915

66,304

Finance receivables, net

4,572,167

4,140,742

Income taxes receivable

17,397

19,559

Deferred tax assets, net

93,872

75,134

Right-of-use assets

28,135

32,173

Property and equipment, net

25,119

29,498

Goodwill

26,871

396,357

Other assets

63,279

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 payable

48,782

28,584

Deferred tax liabilities, net

17,663

16,813

Lease liabilities

31,175

36,437

Interest-bearing deposits

139,671

163,406

Borrowings

3,606,978

3,326,621

Other liabilities

55,450

24,476

Total liabilities

4,015,237

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, 2024

391

395

Additional paid-in capital

17,981

17,882

Retained earnings

1,198,479

1,560,149

Accumulated other comprehensive loss

(288,358)

(443,394)

Total stockholders' equity - PRA Group, Inc.

928,493

1,135,032

Noncontrolling interests

55,479

58,575

Total equity

983,972

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 %

2015

443,114

920,784

28,969

208 %

205 %

2016

455,767

1,104,447

48,732

242 %

201 %

2017

532,851

1,234,254

76,722

232 %

193 %

2018

653,975

1,561,810

114,403

239 %

202 %

2019

581,476

1,336,705

104,678

230 %

206 %

2020

435,668

975,474

109,706

224 %

213 %

2021

435,846

734,910

191,471

169 %

191 %

2022

406,082

713,779

237,056

176 %

179 %

2023

622,583

1,217,624

620,578

196 %

197 %

2024

823,662

1,794,207

1,341,743

218 %

211 %

2025

483,333

1,033,958

961,063

214 %

Subtotal

8,211,196

19,326,066

3,919,763

Americas Insolvency

1996-2014

1,414,476

2,723,230

193 %

155 %

2015

63,170

88,214

140 %

125 %

2016

91,442

118,571

130 %

123 %

2017

275,257

359,423

362

131 %

125 %

2018

97,879

137,065

143

140 %

127 %

2019

123,077

167,787

447

136 %

128 %

2020

62,130

90,248

3,060

145 %

136 %

2021

55,187

74,696

10,147

135 %

136 %

2022

33,442

47,948

16,283

143 %

139 %

2023

91,282

119,910

62,374

131 %

135 %

2024

68,391

99,788

70,538

146 %

149 %

2025

50,001

80,059

77,368

160 %

Subtotal

2,425,734

4,106,939

240,778

Total Americas and Australia

10,636,930

23,433,005

4,160,541

Europe Core

1996-2014

814,553

2,705,950

384,326

332 %

205 %

2015

411,340

768,527

120,755

187 %

160 %

2016

333,090

590,863

144,627

177 %

167 %

2017

252,174

364,846

84,606

145 %

144 %

2018

341,775

563,250

159,355

165 %

148 %

2019

518,610

876,312

292,208

169 %

152 %

2020

324,119

602,714

229,314

186 %

172 %

2021

412,411

728,081

359,607

177 %

170 %

2022

359,447

593,532

399,825

165 %

162 %

2023

410,593

699,868

503,908

170 %

169 %

2024

451,786

817,307

752,460

181 %

180 %

2025

357,530

671,159

640,409

188 %

Subtotal

4,987,428

9,982,409

4,071,400

Europe Insolvency

2014

10,876

19,233

—

177 %

129 %

2015

18,973

29,622

—

156 %

139 %

2016

39,338

58,382

497

148 %

130 %

2017

39,235

52,653

335

134 %

128 %

2018

44,908

53,300

871

119 %

123 %

2019

77,218

114,458

5,579

148 %

130 %

2020

105,440

162,059

9,883

154 %

129 %

2021

53,230

79,535

14,261

149 %

134 %

2022

44,604

65,672

26,299

147 %

137 %

2023

46,558

66,278

39,858

142 %

138 %

2024

43,459

64,128

47,281

148 %

147 %

2025

15,888

24,112

23,147

152 %

Subtotal

539,727

789,432

168,011

Total Europe

5,527,155

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

2015

10,292

6,159

(3,525)

2,634

12,630

2016

14,478

8,358

1,599

9,957

17,005

2017

21,888

11,477

5,393

16,870

31,608

2018

38,675

16,918

8,963

25,881

56,671

2019

37,963

16,735

4,280

21,015

53,085

2020

42,193

17,485

4,356

21,841

57,455

2021

49,989

26,763

(10,142)

16,621

93,816

2022

72,183

31,861

(9,887)

21,974

135,737

2023

182,901

89,871

(33,376)

56,495

332,260

2024

323,633

187,571

26,891

214,462

708,555

2025

72,655

56,814

8,544

65,358

475,270

Subtotal

899,966

485,088

17,635

502,723

1,999,475

Americas Insolvency

1996-2014

716

715

731

—

2015

2016

221

120

134

2017

827

381

459

318

2018

829

425

454

134

2019

2,269

713

791

425

2020

7,739

670

(1,131)

(461)

2,791

2021

9,227

1,250

314

1,564

9,401

2022

8,178

1,636

478

2,114

14,339

2023

21,637

6,212

498

6,710

52,274

2024

17,177

8,236

(1,177)

7,059

52,606

2025

2,694

2,971

1,335

4,306

50,889

Subtotal

71,597

21,195

2,743

23,938

183,225

Total Americas and Australia

971,563

506,283

20,378

526,661

2,182,700

Europe Core

1996-2014

73,218

43,776

19,058

62,834

86,025

2015

21,742

9,043

7,080

16,123

59,498

2016

20,097

8,757

4,139

12,896

81,902

2017

11,764

4,277

(1,251)

3,026

56,212

2018

26,250

9,330

1,789

11,119

102,423

2019

46,787

14,952

12,991

27,943

196,370

2020

34,169

13,046

10,509

23,555

138,912

2021

45,708

19,334

6,760

26,094

216,925

2022

51,788

20,379

3,229

23,608

251,939

2023

70,508

28,642

5,439

34,081

300,972

2024

103,453

44,540

5,065

49,605

420,530

2025

30,449

14,420

3,954

18,374

343,433

Subtotal

535,933

230,496

78,762

309,258

2,255,141

Europe Insolvency

2014

135

—

135

—

2015

119

—

119

—

2016

413

328

390

128

2017

787

501

535

210

2018

1,247

311

381

728

2019

5,073

498

433

931

4,745

2020

13,206

988

2,212

3,200

9,221

2021

11,394

1,269

4,102

5,371

12,901

2022

11,855

2,183

2,759

4,942

22,487

2023

11,830

3,225

1,314

4,539

32,904

2024

11,455

4,610

1,020

5,630

35,178

2025

958

723

198

921

15,824

Subtotal

68,472

13,662

13,432

27,094

134,326

Total Europe

604,405

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)

1996-2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

Total

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

2015

443.1

—

117.0

228.4

185.9

126.6

83.6

57.2

34.9

19.5

14.1

17.3

10.3

894.8

2016

455.8

—

138.7

256.5

194.6

140.6

105.9

74.2

38.4

24.9

24.0

14.5

1012.3

2017

532.9

—

107.3

278.7

256.5

192.5

130.0

76.3

43.8

39.2

21.9

1146.2

2018

654.0

—

122.7

361.9

337.7

239.9

146.1

92.9

75.9

38.7

1415.8

2019

581.5

—

143.8

349.0

289.8

177.7

110.3

77.7

38.0

1186.3

2020

435.7

—

132.9

284.3

192.0

125.8

87.0

42.2

864.2

2021

435.8

—

85.0

177.3

136.8

98.4

50.0

547.5

2022

406.1

—

67.7

195.4

144.7

72.2

480.0

2023

622.5

—

108.5

285.9

182.9

577.3

2024

823.7

—

145.9

323.6

469.5

2025

483.3

—

72.6

Subtotal

8,211.2

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

1996-2014

1,414.5

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

2015

63.2

—

3.4

17.9

20.1

19.8

16.7

7.9

1.3

0.6

0.3

0.2

0.1

88.3

2016

91.4

—

18.9

30.4

25.0

19.9

14.4

7.4

1.8

0.9

0.6

0.2

119.5

2017

275.3

—

49.1

97.3

80.9

58.8

44.0

20.8

4.9

2.5

0.8

359.1

2018

97.9

—

6.7

27.4

30.5

31.6

24.6

12.7

2.5

0.8

136.8

2019

123.1

—

13.4

31.4

39.1

37.8

28.7

14.6

2.3

167.3

2020

62.1

—

6.5

16.1

20.4

19.5

17.0

7.7

87.2

2021

55.2

—

4.6

17.9

17.5

15.3

9.2

64.5

2022

33.4

—

3.2

9.2

11.1

8.2

31.7

2023

91.2

—

9.0

25.1

21.6

55.7

2024

68.4

—

12.1

17.2

29.3

2025

50.0

—

2.8

Subtotal

2,425.7

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 Australia

10,636.9

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

1996-2014

814.5

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

2015

411.3

—

45.8

100.3

86.2

80.9

66.1

54.3

51.4

40.7

33.8

30.4

21.7

611.6

2016

333.1

—

40.4

78.9

72.6

58.0

48.3

46.7

36.9

29.7

27.4

20.1

459.0

2017

252.2

—

17.9

56.0

44.1

36.1

34.8

25.2

20.2

17.9

11.8

264.0

2018

341.8

—

24.3

88.7

71.3

69.1

50.7

41.6

37.1

26.2

409.0

2019

518.6

—

48.0

125.7

121.4

89.8

75.1

68.2

46.8

575.0

2020

324.1

—

32.3

91.7

69.0

56.1

50.1

34.2

333.4

2021

412.4

—

48.5

89.9

73.0

66.6

45.7

323.7

2022

359.4

—

33.9

83.8

74.7

51.8

244.2

2023

410.6

—

50.2

103.1

70.5

223.8

2024

451.9

—

46.3

103.5

149.8

2025

357.5

—

30.4

Subtotal

4,987.4

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

2014

10.9

—

4.3

3.9

3.2

2.6

1.5

0.8

0.3

0.2

0.1

17.3

2015

19.0

—

3.0

4.4

5.0

4.8

3.9

2.9

1.6

0.6

0.4

0.2

0.1

26.9

2016

39.3

—

6.2

12.7

12.9

10.7

7.9

6.0

2.7

1.3

0.8

0.4

61.6

2017

39.2

—

1.2

7.9

9.2

9.8

9.4

6.5

3.8

1.5

0.8

50.1

2018

44.9

—

0.6

8.4

10.3

11.7

9.8

7.2

3.5

1.2

52.7

2019

77.2

—

5.0

21.1

23.9

21.0

17.5

12.9

5.1

106.5

2020

105.4

—

6.0

34.6

34.1

29.7

25.5

13.2

143.1

2021

53.2

—

5.5

14.4

14.7

15.4

11.4

61.4

2022

44.6

—

4.5

12.4

15.2

11.9

44.0

2023

46.7

—

4.2

12.7

11.8

28.7

2024

43.4

—

9.5

11.5

21.0

2025

15.9

—

1.0

Subtotal

539.7

—

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 Europe

5,527.1

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.

LTM

Year Ended

Adjusted EBITDA Reconciliation ($ in thousands)

September 30, 2025

December 31, 2024

Net (loss)/income attributable to PRA Group, Inc.

$ (343,214)

$ 70,601

Adjustments:

Income tax expense

54,704

21,032

Foreign exchange loss

Interest expense, net

247,992

229,267

Other expense

308

851

Depreciation and amortization

10,273

10,792

Impairment of real estate

1,404

—

Goodwill impairment

412,611

—

Net income attributable to noncontrolling interests

16,809

17,972

Gain on sale of equity method investment

(38,403)

—

Recoveries collected and applied to Finance receivables, net less Changes in expected recoveries

902,925

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 Quarter

Year-to-Date

2025

2024

2025

2024

Cash collections

$ 542,244

$ 477,110

$ 1,575,968

$ 1,400,510

Fee income

622

3,138

3,745

4,036

Cash receipts

542,866

480,248

1,579,713

1,404,546

Total operating expenses

626,687

191,499

1,024,306

575,696

Less: Goodwill impairment

412,611

—

412,611

—

Adjusted operating expenses

214,076

191,499

611,695

575,696

Cash receipts less Adjusted operating expenses

328,790

288,749

968,018

828,850

Adjusted cash efficiency ratio

60.6 %

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 End

Third Quarter

Year-to-Date

September 30,

2025

September 30,

2024

2025

2024

2025

2024

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: Goodwill

26,871

423,011

233,160

419,329

320,848

420,517

Less: Other intangible assets

1,470

1,620

1,506

1,609

1,488

1,656

Average tangible equity

$ 898,043

$ 761,235

$ 832,553

$ 743,023

ROATE (3)

Third Quarter

Year-to-Date

2025

2024

2025

2024

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 Quarter

Year-to-Date

2025

2024

2025

2024

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 tax

428,580

—

428,580

—

Adjusted net income attributable to PRA Group, Inc.

20,877

27,154

37,224

52,145

Adjusted ROATE

9.3 %

14.3 %

6.0 %

9.4 %

Amounts represent the average balances for the respective periods.

Amounts not adjusted for Gain on sale of equity method investment due to the de minimus effect.

Based on annualized Net (loss)/income attributable to PRA Group, Inc.

Based on annualized Adjusted net income attributable to PRA Group, Inc.

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

SOURCE PRA Group, Inc.