PRA Group Reports Third Quarter 2026 Results
Continued Execution of PRA 3.0 Strategy Delivering Results and Building a Stronger Foundation for Long-Term Returns
$15M of Net Income Attributable to PRA Group, Inc.
NORFOLK, Va., Nov. 5, 2026 /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 2026 ("Q3 2026").
Q3 2026 Highlights (vs. Q3 2025)
1.
Cash efficiency ratio is calculated by dividing cash receipts less operating expenses by cash receipts. Cash receipts refers to cash collections on the Company's nonperforming loan portfolios, fees and revenue recognized from the Company's class action claims recovery services. Adjusted cash efficiency ratio, which is a non-GAAP financial measure, is calculated by dividing cash receipts less operating expenses, excluding goodwill impairment, by cash receipts. A calculation of the adjusted cash efficiency ratio can be found at the end of this press release.
2.
Adjusted EBITDA is a non-GAAP financial measure. A reconciliation of net income/(loss) attributable to PRA Group, Inc. to Adjusted EBITDA can be found at the end of this press release.
3.
Refers to the sum of all future projected cash collections on the Company's nonperforming loan portfolios.
"Building on the positive momentum generated over the past year, we continued to execute against our PRA 3.0 strategy during the third quarter," said Martin Sjolund, President and Chief Executive Officer. "We generated healthy cash collections, grew portfolio income, lowered operating expenses, and continued making disciplined portfolio investments, while achieving meaningful operational progress across many of our strategic initiatives."
"During the quarter, our adjusted cash efficiency ratio also improved by more than 200 basis points and Adjusted EBITDA continued to grow, reflecting the operating leverage we are beginning to realize from our cost reduction actions and broader PRA 3.0 initiatives. At the same time, we continued to invest in the business through our legal collections channel and technology modernization efforts, while maintaining a disciplined approach to capital deployment focused on attractive net returns in a healthy supply environment."
"We also strengthened the foundation of the business through the issuance of $400 million in aggregate principal amount of senior notes due 2033 shortly after the quarter ended, further enhancing our funding flexibility and extending our debt maturity profile. I am pleased with the progress we have made since launching our PRA 3.0 strategy. We believe we are on a good trajectory and that our technology modernization and significant investments in legal will strengthen the business in the years to come."
Cash Collections and Revenues
The following table presents cash collections by quarter and by source, as reported and on a constant currency-adjusted basis:
Cash Collection Source
2026
2025
($ in thousands)
Q3
Q2
Q1
Q4
Q3
U.S. Core
$ 254,866
$ 269,678
$ 268,409
$ 249,322
$ 258,277
U.S. Insolvency
19,936
21,434
20,141
20,223
21,131
Europe Core
195,478
200,420
192,019
188,277
185,910
Europe Insolvency
17,574
17,658
20,547
19,166
22,658
Other markets (1)
47,789
49,355
50,812
54,670
54,268
Total cash collections
$ 535,643
$ 558,545
$ 551,928
$ 531,658
$ 542,244
Cash Collection Source -
Constant Currency-Adjusted
2026
2025
($ in thousands)
Q3
Q3
U.S. Core
$ 254,866
$ 258,277
U.S. Insolvency
19,936
21,131
Europe Core
195,478
184,788
Europe Insolvency
17,574
22,577
Other markets (1)
47,789
58,108
Total cash collections
$ 535,643
$ 544,881
Three Months Ended Sept 30,
($ in thousands)
2026
2025
Portfolio income
$ 270,779
$ 258,549
Recoveries collected in excess of forecast
6,486
27,351
Changes in expected future recoveries
7,821
24,007
Changes in expected recoveries
14,307
51,358
Total portfolio revenue
$ 285,086
$ 309,907
Expenses
Portfolio Purchases
Portfolio Purchase Source
2026
2025
($ in thousands)
Q3
Q2
Q1
Q4
Q3
U.S. Core
$ 68,387
$ 90,227
$ 105,469
$ 102,254
$ 119,672
U.S. Insolvency
23,891
19,220
13,043
10,088
14,809
Europe Core
106,661
164,620
86,715
152,375
95,239
Europe Insolvency
23,279
9,817
4,837
4,758
5,934
Other markets (1)
6,527
12,687
10,786
45,326
19,838
Total portfolio purchases
$ 228,745
$ 296,571
$ 220,850
$ 314,801
$ 255,492
Credit Availability and Funding Position
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.
Conference Call Information
PRA Group, Inc. will hold a conference call today at 5:00 p.m. ET to discuss its financial and operational results. To listen to a webcast of the call and view the accompanying slides, visit https://ir.pragroup.com/events-and-presentations. To listen by phone, call 646-357-8785 in the U.S. or 1-800-836-8184 outside the U.S. and ask for the PRA Group conference call. To listen to a replay of the call, either visit the same website until November 5, 2027, or call 646-517-4150 in the U.S. or 1-888-660-6345 outside the U.S. and use access code 65294# until November 12, 2026.
About PRA Group, Inc.
As a global industry leader with more than 30 years of experience, PRA Group, Inc. (Nasdaq: PRAA) specializes in acquiring and collecting nonperforming loans. PRA Group purchases portfolios from banks and other creditors and, through its subsidiaries, collaborates with customers to help them resolve their 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 Sept 30,
Nine Months Ended Sept 30,
2026
2025
2026
2025
Revenues
Portfolio income
$ 270,779
$ 258,549
$ 808,157
$ 750,441
Changes in expected recoveries
14,307
51,358
155,117
112,572
Total portfolio revenue
285,086
309,907
963,274
863,013
Other revenue
1,180
1,233
9,699
5,434
Total revenues
286,266
311,140
972,973
868,447
Operating expenses
Compensation and benefits
66,063
74,237
207,178
223,284
Legal collection costs
46,211
46,764
147,194
117,741
Legal collection fees
18,439
16,558
53,896
47,413
Agency fees
22,993
24,556
70,788
68,612
Professional and outside services
17,002
22,051
60,398
64,225
Communication
7,619
8,377
24,302
28,271
Rent and occupancy
3,451
3,654
10,439
10,638
Depreciation, amortization and impairment of long-
lived assets
1,964
2,439
8,396
8,711
Goodwill impairment
—
412,611
—
412,611
Other operating expenses
16,621
15,440
47,943
42,800
Total operating expenses
200,363
626,687
630,534
1,024,306
Income/(loss) from operations
85,903
(315,547)
342,439
(155,859)
Other income/(expense)
Interest expense, net
(63,828)
(64,087)
(191,709)
(187,418)
Gain on sale of equity method investment
—
—
—
38,403
Foreign exchange gain, net
149
67
702
66
Other
(154)
(38)
(500)
(293)
Income/(loss) before income taxes
22,070
(379,605)
150,932
(305,101)
Income tax expense
3,465
24,361
41,614
44,088
Net income/(loss)
18,605
(403,966)
109,318
(349,189)
Net income attributable to noncontrolling
interests
3,713
3,737
8,299
12,481
Net income/(loss) attributable to PRA
Group, Inc.
$ 14,892
$ (407,703)
$ 101,019
$ (361,670)
Net income/(loss) per common share attributable to
PRA Group, Inc.
Basic
$ 0.40
$ (10.43)
$ 2.66
$ (9.20)
Diluted
$ 0.39
$ (10.43)
$ 2.64
$ (9.20)
Weighted average number of shares outstanding
Basic
37,653
39,078
38,041
39,316
Diluted
38,021
39,078
38,278
39,316
PRA Group, Inc.
Consolidated Balance Sheets
(Amounts in thousands)
(unaudited)
September 30,
2026
December 31,
2025
ASSETS
Cash and cash equivalents
$ 139,096
$ 104,409
Investments
160,014
66,628
Finance receivables, net
4,683,573
4,688,024
Income taxes receivable
28,998
17,702
Deferred tax assets, net
58,448
76,955
Right-of-use assets
24,595
29,206
Property and equipment, net
20,396
24,886
Goodwill
26,871
26,871
Prepaid expenses and other assets
86,977
68,641
Total assets
$ 5,228,968
$ 5,103,322
LIABILITIES AND EQUITY
Liabilities
Accrued expenses and accounts payable
$ 102,595
$ 131,812
Income taxes payable
37,578
29,845
Deferred tax liabilities, net
31,256
17,064
Lease liabilities
27,344
32,160
Interest-bearing deposits
152,519
106,148
Borrowings
3,714,739
3,697,338
Other liabilities
31,099
48,990
Total liabilities
4,097,130
4,063,357
Equity
Preferred stock, $0.01 par value, 2,000 shares authorized, no shares issued and
outstanding
—
—
Common stock, $0.01 par value, 100,000 shares authorized, 37,659 shares issued
and outstanding as of September 30, 2026; 100,000 shares authorized, 38,453
shares issued and outstanding as of December 31, 2025
377
385
Additional paid-in capital
2,609
11,474
Retained earnings
1,353,706
1,255,007
Accumulated other comprehensive loss
(289,691)
(287,015)
Total stockholders' equity - PRA Group, Inc.
1,067,001
979,851
Noncontrolling interests
64,837
60,114
Total equity
1,131,838
1,039,965
Total liabilities and equity
$ 5,228,968
$ 5,103,322
Purchase Price Multiples
as of September 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
$ 7,510,730
$ 80,663
274 %
223 %
2016
400,545
819,321
27,487
205 %
195 %
2017
511,902
1,166,652
56,807
228 %
193 %
2018
604,669
1,377,953
82,203
228 %
199 %
2019
432,222
1,017,258
58,785
235 %
209 %
2020
415,384
940,623
73,528
226 %
215 %
2021
339,885
601,913
99,635
177 %
191 %
2022
275,433
429,136
115,300
156 %
164 %
2023
506,319
939,215
371,406
185 %
191 %
2024
727,672
1,678,881
910,152
231 %
211 %
2025
531,021
1,174,752
865,217
221 %
216 %
2026
264,083
554,953
523,311
210 %
210 %
Subtotal
7,746,010
18,211,387
3,264,494
U.S. Insolvency
1996-2015
1,472,385
2,807,086
—
191 %
154 %
2016
67,454
85,694
5
127 %
124 %
2017
275,257
359,955
204
131 %
125 %
2018
97,879
137,611
124
141 %
127 %
2019
120,845
165,153
329
137 %
128 %
2020
62,130
90,465
1,159
146 %
136 %
2021
54,898
73,519
1,839
134 %
136 %
2022
33,442
48,087
7,759
144 %
139 %
2023
61,242
80,715
29,523
132 %
136 %
2024
68,168
99,716
46,844
146 %
149 %
2025
59,091
93,419
74,993
158 %
160 %
2026
56,154
87,986
86,422
157 %
157 %
Subtotal
2,428,945
4,129,406
249,201
Total U.S.
10,174,955
22,340,793
3,513,695
Europe Core
2012-2015
1,225,893
3,795,399
663,064
310 %
190 %
2016
333,090
637,389
164,887
191 %
167 %
2017
252,174
376,348
80,088
149 %
144 %
2018
341,775
590,677
149,974
173 %
148 %
2019
518,610
918,985
273,992
177 %
152 %
2020
324,119
618,771
200,428
191 %
172 %
2021
412,411
744,524
326,017
181 %
170 %
2022
359,447
596,112
328,347
166 %
162 %
2023
410,593
753,207
462,233
183 %
169 %
2024
451,786
819,958
617,798
181 %
180 %
2025
512,533
941,655
756,842
184 %
185 %
2026
350,953
646,394
610,770
184 %
184 %
Subtotal
5,493,384
11,439,419
4,634,440
Europe Insolvency
2014-2015
29,849
49,205
—
165 %
135 %
2016
39,338
60,228
1,977
153 %
130 %
2017
39,235
54,137
1,090
138 %
128 %
2018
44,908
53,754
566
120 %
123 %
2019
77,218
115,180
3,367
149 %
130 %
2020
105,440
162,068
3,144
154 %
129 %
2021
53,230
81,979
6,010
154 %
134 %
2022
44,604
68,911
16,324
154 %
137 %
2023
46,558
74,752
31,693
161 %
138 %
2024
43,459
73,055
40,577
168 %
147 %
2025
20,760
30,891
23,823
149 %
145 %
2026
37,439
54,519
53,246
146 %
146 %
Subtotal
582,038
878,679
181,817
Total Europe
6,075,422
12,318,098
4,816,257
Other markets (5)
969,781
2,223,865
463,683
229 %
205 %
Total PRA Group
$ 17,220,158
$ 36,882,756
$ 8,793,635
(1)
Includes the acquisition date finance receivables portfolios that were acquired through our business acquisitions.
(2)
Non-U.S. amounts, including purchase price adjustments that occur throughout the life of a portfolio, are presented at the exchange rate at the end of the respective period of purchase.
(3)
Non-U.S. amounts are presented at the period-end exchange rate for the respective period of purchase.
(4)
Non-U.S. amounts are presented at the September 30, 2026 exchange rate.
(5)
Reflects all vintages in South America, Canada and Australia.
Portfolio Financial Information (1)
(in thousands)
September 30, 2026 (year-to-date)
As of September 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
$ 30,128
$ 15,407
$ 7,383
$ 22,790
$ 26,090
2016
7,404
4,300
(189)
4,111
11,615
2017
14,819
8,933
(1,500)
7,433
22,868
2018
23,854
11,450
2,639
14,089
40,158
2019
18,572
9,354
(993)
8,361
27,549
2020
24,371
11,820
(1,709)
10,111
35,911
2021
27,661
13,802
(1,814)
11,988
49,723
2022
30,268
12,672
(4,400)
8,272
67,132
2023
106,708
49,149
(13,524)
35,625
197,418
2024
274,079
131,352
10,443
141,795
478,985
2025
203,444
123,502
8,645
132,147
450,801
2026
31,645
31,779
(3,215)
28,564
260,659
Subtotal
792,953
423,520
1,766
425,286
1,668,909
U.S. Insolvency
1996-2015
633
—
632
632
—
2016
80
3
52
55
5
2017
517
22
450
472
182
2018
378
5
402
407
116
2019
1,032
12
1,058
1,070
314
2020
1,134
129
222
351
1,022
2021
5,013
399
(793)
(394)
1,673
2022
6,369
921
180
1,101
7,156
2023
13,820
2,838
361
3,199
26,163
2024
17,725
5,982
299
6,281
37,432
2025
13,248
8,066
(537)
7,529
53,783
2026
1,562
2,739
241
2,980
57,290
Subtotal
61,511
21,116
2,567
23,683
185,136
Total U.S.
854,464
444,636
4,333
448,969
1,854,045
Europe Core
2012-2015
89,822
53,207
65,801
119,008
173,353
2016
19,643
8,622
21,271
29,893
89,712
2017
10,727
3,870
3,926
7,796
50,421
2018
23,571
8,813
6,212
15,025
87,585
2019
40,824
14,061
18,046
32,107
180,188
2020
29,087
12,059
5,490
17,549
120,068
2021
40,606
18,087
5,619
23,706
194,211
2022
45,904
18,260
(691)
17,569
207,127
2023
61,915
26,207
21,459
47,666
266,683
2024
87,434
39,178
4,030
43,208
348,928
2025
102,142
49,656
(5,276)
44,380
412,972
2026
36,242
16,085
3,041
19,126
333,406
Subtotal
587,917
268,105
148,928
417,033
2,464,654
Europe Insolvency
2014-2015
236
—
236
236
—
2016
318
88
445
533
328
2017
497
45
851
896
570
2018
574
24
414
438
407
2019
1,863
232
537
769
2,680
2020
4,373
340
(79)
261
2,908
2021
7,354
647
1,679
2,326
5,440
2022
9,888
1,484
2,962
4,446
14,227
2023
12,772
2,513
7,401
9,914
26,889
2024
11,931
3,864
7,083
10,947
31,465
2025
4,686
2,044
637
2,681
18,031
2026
1,287
961
227
1,188
37,290
Subtotal
55,779
12,242
22,393
34,635
140,235
Total Europe
643,696
280,347
171,321
451,668
2,604,889
Other markets (4)
147,956
83,174
(20,537)
62,637
224,639
Total PRA Group
$ 1,646,116
$ 808,157
$ 155,117
$ 963,274
$ 4,683,573
(1)
Includes the nonperforming loan portfolios that were acquired through our business acquisitions.
(2)
Non-U.S. amounts are presented using the average exchange rates during the current reporting period.
(3)
Non-U.S. amounts are presented at the September 30, 2026 exchange rate.
(4)
Reflects all vintages in South America, Canada and Australia.
Cash Collections by Year, By Year of Purchase (1)
as of September 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
$ 30.1
$ 7,422.9
2016
400.5
—
86.1
195.3
160.1
116.6
88.7
59.9
29.1
17.6
18.1
12.9
7.4
791.8
2017
511.9
—
—
94.3
264.4
247.1
185.6
124.8
73.1
41.6
37.5
26.6
14.8
1,109.8
2018
604.7
—
—
—
106.3
320.2
304.7
214.8
131.6
83.2
68.1
42.9
23.9
1,295.7
2019
432.2
—
—
—
—
93.4
282.2
237.4
141.7
86.1
61.8
37.3
18.6
958.5
2020
415.4
—
—
—
—
—
127.4
274.7
185.4
121.3
83.6
50.4
24.4
867.2
2021
339.9
—
—
—
—
—
—
73.8
149.9
115.3
82.8
52.8
27.7
502.3
2022
275.4
—
—
—
—
—
—
—
34.9
102.4
87.8
58.5
30.3
313.9
2023
506.3
—
—
—
—
—
—
—
—
63.5
211.8
185.9
106.7
567.9
2024
727.7
—
—
—
—
—
—
—
—
—
119.8
374.9
274.1
768.8
2025
531.0
—
—
—
—
—
—
—
—
—
—
106.1
203.4
309.5
2026
264.1
—
—
—
—
—
—
—
—
—
—
—
31.6
31.6
Subtotal
7,746.0
5,186.4
759.9
769.0
868.5
1,008.2
1,137.9
1,083.6
812.8
682.7
836.0
1,001.9
793.0
14,939.9
U.S. Insolvency
1996-2015
1,472.4
2,290.4
230.4
142.6
78.6
39.1
13.6
4.5
2.9
1.8
1.4
1.0
0.6
2,806.9
2016
67.5
—
10.1
18.9
18.2
16.4
13.0
6.6
1.3
0.6
0.4
0.1
0.1
85.7
2017
275.3
—
—
49.1
97.3
80.9
58.8
44.0
20.8
4.9
2.5
1.0
0.5
359.8
2018
97.9
—
—
—
6.7
27.4
30.5
31.6
24.6
12.7
2.5
1.0
0.4
137.4
2019
120.8
—
—
—
—
13.4
30.9
37.9
36.8
28.0
14.2
2.7
1.0
164.9
2020
62.1
—
—
—
—
—
6.5
16.1
20.4
19.5
17.0
8.7
1.1
89.3
2021
54.9
—
—
—
—
—
—
4.5
17.7
17.4
15.2
11.8
5.0
71.6
2022
33.4
—
—
—
—
—
—
—
3.2
9.2
11.1
10.5
6.4
40.4
2023
61.2
—
—
—
—
—
—
—
—
4.5
14.8
18.0
13.8
51.1
2024
68.2
—
—
—
—
—
—
—
—
—
12.1
23.1
17.7
52.9
2025
59.1
—
—
—
—
—
—
—
—
—
—
5.2
13.2
18.4
2026
56.2
—
—
—
—
—
—
—
—
—
—
—
1.7
1.7
Subtotal
2,429.0
2,290.4
240.5
210.6
200.8
177.2
153.3
145.2
127.7
98.6
91.2
83.1
61.5
3,880.1
Total U.S.
10,175.0
7,476.8
1,000.4
979.6
1,069.3
1,185.4
1,291.2
1,228.8
940.5
781.3
927.2
1,085.0
854.5
18,820.0
Europe Core
2012-2015
1,225.8
538.4
350.2
310.3
290.5
241.4
206.0
202.4
164.3
142.4
132.1
126.9
89.8
2,794.7
2016
333.1
—
40.4
78.9
72.6
58.0
48.3
46.7
36.9
29.7
27.4
27.1
19.6
485.6
2017
252.2
—
—
17.9
56.0
44.1
36.1
34.8
25.2
20.2
17.9
15.7
10.7
278.6
2018
341.8
—
—
—
24.3
88.7
71.3
69.1
50.7
41.6
37.1
34.3
23.6
440.7
2019
518.6
—
—
—
—
48.0
125.7
121.4
89.8
75.1
68.2
61.7
40.8
630.7
2020
324.1
—
—
—
—
—
32.3
91.7
69.0
56.1
50.1
45.1
29.1
373.4
2021
412.4
—
—
—
—
—
—
48.5
89.9
73.0
66.6
59.7
40.6
378.3
2022
359.4
—
—
—
—
—
—
—
33.9
83.8
74.7
67.8
45.9
306.1
2023
410.6
—
—
—
—
—
—
—
—
50.2
103.1
93.2
61.9
308.4
2024
451.9
—
—
—
—
—
—
—
—
—
46.3
135.6
87.4
269.3
2025
512.5
—
—
—
—
—
—
—
—
—
—
57.1
102.1
159.2
2026
351.0
—
—
—
—
—
—
—
—
—
—
—
36.4
36.4
Subtotal
5,493.4
538.4
390.6
407.1
443.4
480.2
519.7
614.6
559.7
572.1
623.5
724.2
587.9
6,461.4
Europe Insolvency
2014-2015
29.9
7.3
8.3
8.2
7.4
5.4
3.7
1.9
0.8
0.6
0.4
0.3
0.2
44.5
2016
39.3
—
6.2
12.7
12.9
10.7
7.9
6.0
2.7
1.3
0.8
0.6
0.3
62.1
2017
39.2
—
—
1.2
7.9
9.2
9.8
9.4
6.5
3.8
1.5
1.0
0.5
50.8
2018
44.9
—
—
—
0.6
8.4
10.3
11.7
9.8
7.2
3.5
1.4
0.6
53.5
2019
77.2
—
—
—
—
5.0
21.1
23.9
21.0
17.5
12.9
6.1
1.9
109.4
2020
105.4
—
—
—
—
—
6.0
34.6
34.1
29.7
25.5
15.5
4.4
149.8
2021
53.2
—
—
—
—
—
—
5.5
14.4
14.7
15.4
14.6
7.4
72.0
2022
44.6
—
—
—
—
—
—
—
4.5
12.4
15.2
15.2
9.9
57.2
2023
46.7
—
—
—
—
—
—
—
—
4.2
12.7
15.7
12.8
45.4
2024
43.4
—
—
—
—
—
—
—
—
—
9.5
15.2
11.9
36.6
2025
20.8
—
—
—
—
—
—
—
—
—
—
1.9
4.7
6.6
2026
37.4
—
—
—
—
—
—
—
—
—
—
—
1.1
1.1
Subtotal
582.0
7.3
14.5
22.1
28.8
38.7
58.8
93.0
93.8
91.4
97.4
87.5
55.7
689.0
Total Europe
6,075.4
545.7
405.1
429.2
472.2
518.9
578.5
707.6
653.5
663.5
720.9
811.7
643.6
7,150.4
Other markets (3)
969.8
33.9
86.5
103.9
83.7
137.0
135.9
125.4
135.0
215.9
220.5
210.7
148.0
1,636.4
Total PRA Group
$ 17,220.2
$ 8,056.4
$ 1,492.0
$ 1,512.7
$ 1,625.2
$ 1,841.3
$ 2,005.6
$ 2,061.8
$ 1,729.0
$ 1,660.7
$ 1,868.6
$ 2,107.4
$ 1,646.1
$ 27,606.8
(1)
Non-U.S. amounts are presented at the average exchange rates during the cash collections period.
(2)
Includes the acquisition date finance receivables portfolios acquired through our business acquisitions.
(3)
Non-U.S. amounts, including purchase price adjustments that occur throughout the life of a portfolio, are presented at the exchange rate at the end of the respective period of purchase.
(4)
Reflects all vintages in South America, Canada and Australia.
Use of Non-GAAP Financial Measures
The Company reports its financial results in accordance with U.S. generally accepted accounting principles (GAAP). However, management uses certain non-GAAP financial measures, including the non-GAAP financial measures referred to below, internally to evaluate the Company's performance and to set performance goals. Management believes these non-GAAP financial measures are useful to investors in evaluating the Company's performance, operational effectiveness and management of operating effectiveness, and provide for greater comparability. These non-GAAP financial measures should not be considered as an alternative to the most directly comparable financial measure determined in accordance with GAAP and may not be comparable to the calculation of similarly titled financial measures reported by other companies. Included below are reconciliations of the non-GAAP financial measures to the most directly comparable financial measures calculated in accordance with GAAP.
Adjusted EBITDA
The Company presents Adjusted EBITDA because the Company considers it an important supplemental measure of its operational and financial performance. Adjusted EBITDA is calculated as Net income/(loss) attributable to PRA Group, Inc. plus Income tax expense; less Foreign exchange gain; plus Interest expense, net; plus Other expense; plus Depreciation and amortization; plus Impairment of real estate; plus Goodwill impairment; plus Net income attributable to noncontrolling interests; less Gain on sale of equity method investment; and plus Recoveries collected and applied to Finance receivables, net less Changes in expected recoveries. Management believes Adjusted EBITDA helps provide enhanced period-to-period comparability of the Company's operational and financial performance as it excludes certain items whose fluctuations from period-to-period do not necessarily correspond to changes in the operations of the Company's business and is useful to investors as other companies in the industry report similar financial measures.
The following table provides a reconciliation of Net income/(loss) attributable to PRA Group, Inc. to Adjusted EBITDA for the last twelve months (LTM) ended September 30, 2026 and for the year ended December 31, 2025.
LTM
Year Ended
Adjusted EBITDA Reconciliation ($ in thousands)
September 30, 2026
December 31, 2025
Net income/(loss) attributable to PRA Group, Inc.
$ 157,547
$ (305,142)
Adjustments:
Income tax expense
44,261
46,735
Foreign exchange gain
(1,391)
(755)
Interest expense, net
256,079
251,788
Other expense
543
336
Depreciation and amortization
7,281
9,035
Impairment of real estate
2,843
1,404
Goodwill impairment
—
412,611
Net income attributable to noncontrolling interests
10,986
15,168
Gain on sale of equity method investment
—
(38,403)
Recoveries collected and applied to Finance receivables, net less
Changes in expected recoveries
899,605
922,697
Adjusted EBITDA
$ 1,377,754
$ 1,315,474
Adjusted cash efficiency ratio
The Company uses an adjusted cash efficiency ratio, which is a supplemental measure of performance that is not required by, or presented in accordance with, GAAP, to monitor and evaluate operating expenses, excluding goodwill impairment ("Adjusted operating expenses"), relative to cash collections plus fees and revenue recognized from our class action claims recovery services. Management believes the adjusted cash efficiency ratio is a useful financial measure for investors in evaluating the Company's management of operating expenses. The adjusted cash efficiency ratio is calculated by dividing cash receipts less Adjusted operating expenses by cash receipts. The following table provides a reconciliation of Total operating expenses to Adjusted operating expenses and presents the Company's cash efficiency and Adjusted cash efficiency ratios for the periods indicated (in thousands, except for ratio data):
Adjusted Operating Expenses Reconciliation
and Adjusted Cash Efficiency Ratio
Third Quarter
Year-to-Date
2026
2025
2026
2025
Cash collections
$ 535,643
$ 542,244
$ 1,646,116
$ 1,575,968
Fee income
771
622
6,700
3,745
Cash receipts
536,414
542,866
1,652,816
1,579,713
Total operating expenses
200,363
626,687
630,534
1,024,306
Goodwill impairment
—
(412,611)
—
(412,611)
Adjusted operating expenses
200,363
214,076
630,534
611,695
Cash efficiency ratio
63 %
(15) %
62 %
35 %
Adjusted cash efficiency ratio
63 %
61 %
62 %
61 %
Adjusted net income attributable to PRA, Adjusted diluted earnings per share, ROATE and Adjusted ROATE
The Company uses Net income/(loss) attributable to PRA Group, Inc. excluding the impact of certain items that management does not consider indicative of the Company's ongoing operations ("Adjusted net income attributable to PRA") to monitor and evaluate our operating performance and allow for better comparability. Management believes Adjusted net income attributable to PRA is a useful financial measure for investors in evaluating our operating results.
Adjusted net income attributable to PRA is calculated as Net income/(loss) attributable to PRA Group, Inc. excluding the impact of certain items that management does not consider indicative of the Company's ongoing operations. Calculation of Adjusted diluted earnings per share excludes those same items and, if dilutive based on Adjusted net income attributable to PRA, may also include the impact of additional potentially dilutive shares.
In addition, the Company uses return on average tangible equity ("ROATE") to monitor and evaluate operating performance relative to the Company's equity. Management believes ROATE is a useful financial measure for investors in evaluating the effective use of equity, and is an important component of its long-term shareholder return. ROATE is calculated by dividing annualized Net income/(loss) attributable to PRA Group, Inc. by average Total stockholders' equity - PRA Group, Inc. less average goodwill and average other intangible assets ("Average tangible equity").
ROATE may include certain items that are not indicative of the ongoing operating results of the Company's business. Accordingly, the Company also uses Adjusted ROATE to monitor and evaluate operating performance relative to the Company's equity. Management believes that Adjusted ROATE is a useful financial measure for investors because it is based on Adjusted net income attributable to PRA. Adjusted ROATE is calculated by dividing annualized Adjusted net income attributable to PRA by average tangible equity. Return on equity ("ROE") is calculated by dividing annualized Net income/(loss) attributable to PRA Group, Inc. by average Total stockholders' equity - PRA Group, Inc.
The following table provides a reconciliation of Total stockholders' equity - PRA Group, Inc. as reported in accordance with GAAP to Average tangible equity, a reconciliation of Net income/(loss) attributable to PRA Group, Inc. to Adjusted net income attributable to PRA, and provides our ROE, ROATE and Adjusted ROATE for the periods indicated (in thousands, except for ratio data):
Average Tangible Equity Reconciliation (1)
Balance as of Period End
Third Quarter
Year-to-Date
September
30, 2026
September
30, 2025
2026
2025
2026
2025
Total stockholders' equity - PRA
Group, Inc.
$ 1,067,001
$ 928,493
$ 1,056,235
$ 1,132,709
$ 1,023,652
$ 1,154,889
Goodwill
26,871
26,871
26,871
233,160
26,871
320,848
Other intangible assets
1,209
1,470
1,246
1,506
1,318
1,488
Average tangible equity
$ 1,028,118
$ 898,043
$ 995,463
$ 832,553
ROE and ROATE (2)
Third Quarter
Year-to-Date
2026
2025
2026
2025
Net income/(loss) attributable to
PRA Group, Inc.
$ 14,892
$ (407,703)
$ 101,019
$ (361,670)
Return on equity
6 %
(144) %
13 %
(42) %
ROATE
6 %
(182) %
14 %
(58) %
Adjusted Net Income Attributable to PRA
Reconciliation and Adjusted ROATE (3)
Third Quarter
Year-to-Date
2026
2025
2026
2025
Net income/(loss) attributable to
PRA Group, Inc.
$ 14,892
$ (407,703)
$ 101,019
$ (361,670)
Gain on sale of equity method
investment
—
—
—
(38,403)
Goodwill impairment
—
412,611
—
412,611
Tax effect of adjusting items (4)
—
15,969
—
24,686
Adjusted net income attributable to
PRA
$ 14,892
$ 20,877
$ 101,019
$ 37,224
Adjusted ROATE
6 %
9 %
14 %
6 %
The following table provides a reconciliation of diluted earnings per share to Adjusted diluted earnings per share:
Adjusted Diluted Earnings Per Share Reconciliation
Third Quarter
Year-to-Date
2026
2025
2026
2025
Diluted earnings per share
$ 0.39
$ (10.43)
$ 2.64
$ (9.20)
Effect of adjusting items and dilutive shares (5)
—
10.96
—
10.14
Adjusted diluted earnings per share
$ 0.39
$ 0.53
$ 2.64
$ 0.94
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/(loss) attributable to PRA Group, Inc.
(3)
Based on annualized Adjusted net income attributable to PRA.
(4)
Based on the annual effective tax rate and pretax income excluding the effect of the adjusting items.
(5)
Impact of the non-GAAP adjusting items and dilutive effect of all potential shares of common stock.
SOURCE PRA Group, Inc.