Pra Group, Inc. · NASDAQ:PRAA
Pra — Investor Presentation (May 2026)
39 slides from Pra's investor presentation, May 2026
Slide 1: May 2026 Investor Presentation
May 2026 Investor Presentation A Global Leader in Acquiring and Collecting Nonperforming Loans
Slide 2: Forward-Looking Statements
Forward-Looking Statements Statements in this presentation, other than statements of historical fact, are forward-looking statements, which are based on our current beliefs, projections, assumptions and expectations concerning future operations and financial performance. Such statements involve unce
Slide 3: Agenda
Agenda Company Overview Financial Performance PRA 3.0 Strategy Appendix 2 Nasdaq: PRAA
Slide 4: We Are a Global Leader in Acquiring and Collecting Nonperforming Loans (NPLs)
We Are a Global Leader in Acquiring and Collecting Nonperforming Loans (NPLs) Key Highlights Key Stats (Q1 2026) 1. 30 years in business, led by highly experienced 1 management team $221M $552M Portfolio Purchases Cash Collections 2. Significant global scale and diversification across 18 Focused on
Slide 5: Deep Expertise and Industry Experience to Drive Improved Results
Deep Expertise and Industry Experience to Drive Improved Results Martin Sjolund Rakesh Sehgal LaTisha Tarrant Owen James President & Chief Financial Officer General Counsel and President, Chief Executive Officer Chief Human PRA Group Europe Resources Officer Steve Macke Jan Husby Adrian Murphy Keith
Slide 6: Serving a Core Part of the Consumer Credit Ecosystem
Serving a Core Part of the Consumer Credit Ecosystem We Specialize in Purchasing Portfolios at Attractive Returns & Collecting Efficiently Account is PRA purchases a Creditor If Consumers managed portfolio of PRA works to extends unresolved, become internally or charged-off resolve credit to account
Slide 7: Our Global Perspective on the Markets
Our Global Perspective on the Markets Managing Complexity Across Distinct Global Environments U.S. Market European Market • Complex and stringent regulatory environment • Fragmented regulatory environment o Federal Regulator: CFPB o Very different application of collections rules in different o U.S.
Slide 8: U.S. Supply Remains Elevated Due to High Credit Card Balances & Charge-Off Rates
U.S. Supply Remains Elevated Due to High Credit Card Balances & Charge-Off Rates U.S. Credit Card Balances1 and Charge-Off Rates2 $ in billions $1,200 10% Key highlights $1,073 9% $1,000 8% ✓ U.S. credit card balances up 7% 25%+ since pre-pandemic $800 6% (end of 2019) $600 5% 4% ✓ Charge-off rates
Slide 9: Disciplined & Diversified Purchaser of NPLs With Long Track Record
Disciplined & Diversified Purchaser of NPLs With Long Track Record Diversified set of markets enables us to be Disciplined investment process and selective in our investments experienced underwriters U.S. Total Portfolio Purchases $ in millions Europe Other • Experienced underwriting teams $1,408 $1
Slide 10: We Use Data & Analytics to Underwrite Portfolios and Determine the Most Efficient Collection Strategy
We Use Data & Analytics to Underwrite Portfolios and Determine the Most Efficient Collection Strategy Underwriting Operational Analytics • Underwriting multi-year future collections and • Aiming to optimize customer engagement – costs tailoring collection efforts based on customers’ ability and will
Slide 11: PRA Europe
PRA Europe A Decade of Consistent Deployment, Cash Generation and Operational Focus $ in millions PRA Europe Investments1 Key Europe Highlights ✓ Experienced and stable management (investment committee average tenure of ~12 years) $589 $477 $508 $519 $450 $408 $407 $444 $371 $361 ✓ Successfully inve
Slide 12: Europe's Transformation Under Martin's Leadership
Europe’s Transformation Under Martin’s Leadership Pre-2018 Now • Low-cost, front-line mass dialing • Focus on talent, technology, digital, and data & analytics • Multiple contact platforms across various markets • One standard, cloud-based omni-channel contact platform • No customer chat or text, li
Slide 13: Agenda
Agenda Company Overview Financial Performance PRA 3.0 Strategy Appendix 12 Nasdaq: PRAA
Slide 14: Building on the Success of 2025 with Strong Start to 2026
Building on the Success of 2025 with Strong Start to 2026 $ in millions 11% Cash Collections Growth and 62% Cash Efficiency Ratio1 Disciplined Buying and Focused on Returns Cash Collections & Cash Efficiency Ratio1 Portfolio Purchases $1,209 +11% $497 $552 $292 $221 61% 62% Q1 25 Q1 26 FY 25 Q1 25 Q
Slide 15: Q1 Portfolio Purchases and Expected Net Returns Tracked According to Plan
Q1 Portfolio Purchases and Expected Net Returns Tracked According to Plan $ in millions Core PPMs1 and Portfolio Purchases – in Line with Our Expectations Our Focus is on Net Returns PPMs can vary based on mix PRA • PPMs can vary due to multiple factors 2.00x 1.98x 2.07x 1.98x 1.96x (global) (geogra
Slide 16: Strong Cash Generation Supported by U.S. Legal Collections and European Growth
Strong Cash Generation Supported by U.S. Legal Collections and European Growth Estimated Remaining Collections (ERC)1 Total Cash Collections U.S. Legal Cash Collections $ in billions $ in millions $ in millions U.S. Legal Collection Costs U.S. Europe Other U.S. Europe Other U.S. Legal Cash Collectio
Slide 17: Growing Portfolio Income and Strong Cash Overperformance
Growing Portfolio Income and Strong Cash Overperformance $ in millions Total Revenues Changes in Expected Recoveries +17% $333 $40 $311 $315 $37 $270 $288 $7 $33 $3 $51 $1 $64 $44 $1 $27 $24 $27 $28 $1 +12% $23 $21 $17 $11 $241 $251 $259 $263 $270 Q1 25 Q2 25 Q3 25 Q4 25 Q1 26 ($7) Q1 25 Q2 25 Q3 25
Slide 18: Adjusted Net Income Attributable to PRA Increased Significantly Year-over-Year
Adjusted Net Income Attributable to PRA Increased Significantly Year-over-Year $ in millions Total Operating Expenses Adjusted Net Income Attributable to PRA1 & Adjusted ROATE2 $211 15.3% 11.7% $195 6.0% 9.3% 1.9% $33 $48 $35 $28 $24 $162 $163 $18 $21 $18 $13 $15 $14 $4 Q1 25 Q1 26 Q1 25 Q2 25 Q3 25
Slide 19: Net Leverage Continued to Decline
Net Leverage Continued to Decline Driven by Growing Adjusted EBITDA & Disciplined Investing $ in millions Borrowings, LTM Adjusted EBITDA1, and Net Leverage2 Borrowings $2,938 $2,740 $2,832 $2,914 $2,953 $3,114 $3,296 $3,327 $3,466 $3,614 $3,607 $3,697 $3,779 2.87x Net leverage 2.81x 2.83x 2.82x 2.8
Slide 20: Strong & Diversified Funding with Prudent Capital Allocation Approach
Strong & Diversified Funding with Prudent Capital Allocation Approach Multiple Levers to Drive Staggered Maturities (None Until 2028) Shareholder Value Creation Pro Forma Debt Maturity Profile1 $ in millions 1 Prioritize disciplined portfolio purchases with $1,835 attractive returns $550 $660 $398 $
Slide 21: Agenda
Agenda Company Overview Financial Performance PRA 3.0 Strategy Appendix 20 Nasdaq: PRAA
Slide 22: PRA 3.0: A High-Performing, Technology-Enabled Global Allocator of Capital
PRA 3.0: A High-Performing, Technology-Enabled Global Allocator of Capital 1 Capital & Invest with Discipline – allocate capital to highest-return Investing opportunities 2 Operations, Tech Modernize the Engine – become leaner, more flexible, tech- & Data driven 3 Establish a Winning Culture – embed
Slide 23: Invest with Discipline
Invest with Discipline Allocate Capital to Highest-Return Opportunities Strong financial Disciplined global Strong diversified Prudent capital profile through the NPL investor funding allocation strategy cycle • Leverage our global • Drive more predictable • Multiple sources of • Prioritize investme
Slide 24: Modernize the Engine
Modernize the Engine Become Leaner, More Flexible, Tech-Driven Fully leverage Enhanced data & Disciplined cost Transform operations technology analytics management • Balance internal • Leverage technology • Invest in talent & • Zero-based cost platform with flexible standardization to capabilities,
Slide 25: Establish a Winning Culture
Establish a Winning Culture Embed High-Performance Ownership Mindset Strong Governance & Invest in Talent Performance Culture Aligned Incentives Values • Talent hubs in • Enhance high- • Continue to align • Continued strong locations with strong performance incentives with compliance culture talent
Slide 26: Recent Progress on Executing Our PRA 3.0 Strategy
Recent Progress on Executing Our PRA 3.0 Strategy 1 Allocate capital to highest-return opportunities ✓ Disciplined purchasing globally and testing adjacent products in U.S. Capital & ✓ Continued to de-leverage Investing ✓ Refinanced European RCF ✓ Opportunistic share repurchase of $10M in Q1 2 Build
Slide 27: Strong Start to 2026 and On Track with PRA 3.0 Strategy to Drive Enhanced Results
Strong Start to 2026 and On Track with PRA 3.0 Strategy to Drive Enhanced Results 2026 Initiatives Driving PRA 3.0 Financial Targets Over Next 2-3 Years Capital & Investing $1.0 - $1.3 Billion • Disciplined investments • Continue to invest with discipline and focus on driving returns of Purchases •
Slide 28: Agenda
Agenda Company Overview Investment Thesis Financial Performance Appendix 27 Nasdaq: PRAA
Slide 29: PPMs Capture Gross Cash but Not Net Value Creation
PPMs Capture Gross Cash but Not Net Value Creation We Solve For Net Returns After Cost to Collect, Funding & Timing • PPMs are a measure of Gross Dollars Collected Per Dollar Factors U.S. Core Europe Core Insolvency Invested…not necessarily a measure of profitability. We target net returns. Cost to
Slide 30: Understanding PRA Group Financials
Understanding PRA Group Financials Total Portfolio Revenue has two components: Total Portfolio Revenue • Portfolio Income is the yield component • Changes in Expected Recoveries is current period over/underperformance + NPV of ERC changes Portfolio Income Changes in Expected Recoveries Effective int
Slide 31: The Basis of Portfolio Income
The Basis of Portfolio Income If Cash is Collected as Expected in Original Underwriting 1. Purchase of Portfolio • Purchase Price of $1,000 with Total Estimated Collections of $2,200 = Purchase Price Multiple of 2.20x • Effective Interest Rate (EIR) = 28.8% (Gross IRR of purchase price and projected
Slide 32: What Happens When Cash IS NOT Collected As Expected
What Happens When Cash IS NOT Collected As Expected There is Always Some Level of Changes in Expected Recoveries Collecting More Cash Than Expected Collecting Less Cash Than Expected (Overperformance) (Underperformance) • Cash in excess of expectations is recognized as an increase • Cash lower than
Slide 33: How Cash Overperformance Can Lead to Same Lifetime Collections
How Cash Overperformance Can Lead to Same Lifetime Collections as Portfolio With No Overperformance Total Cash Collected Over the Entire Collections Curve Per $1,000 Invested $2,400 $2,400 $0 $400 Original Final Original Final PPM PPM $2,400 PPM PPM 2.4x 2.4x $2,000 2.0x 2.4x No Overperformance 20%
Slide 34: Non-GAAP Financial Measures
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
Slide 35: Reconciliation of Net Income/(Loss) to Adjusted EBITDA and Calculation of Net Leverage
Reconciliation of Net Income/(Loss) to Adjusted EBITDA and Calculation of Net Leverage $ in millions Non-GAAP Financial Measures Set forth below is a reconciliation of net income/(loss) attributable to PRA Group, Inc. to Adjusted EBITDA for the last twelve months (LTM) as of March 31, 2023 through t
Slide 36: Reconciliation of Total Stockholders' Equity to Average Tangible Equity
Reconciliation of Total Stockholders’ Equity – PRA Group, Inc. to Average Tangible Equity and Reconciliation of Net Income/(Loss) Attributable to PRA Group, Inc. to Adjusted Net Income Attributable to PRA Non-GAAP Financial Measures The following table provides a reconciliation of Total stockholders
Slide 37: Reconciliation of Net Income to Adjusted Net Income Attributable to PRA
Reconciliation of Net Income/(Loss) Attributable to PRA Group, Inc. to Adjusted Net Income Attributable to PRA and Calculation of 4-Quarter Average Adjusted Net Income Attributable to PRA Non-GAAP Financial Measures The following table provides a reconciliation of Net income/(loss) attributable to P
Slide 38: U.S. Portfolio Acquisitions by Major Asset Type & Delinquency Category
U.S. Portfolio Acquisitions by Major Asset Type & Delinquency Category $ in thousands 2025 2026 Major Asset Type Q1 % Q2 % Q3 % Q4 % Q1 % Major Credit Cards 73,486 46% 99,192 54% 74,171 55% 32,323 29% 20,288 17% Private Label Credit Cards 79,366 49% 73,235 40% 54,050 40% 70,685 63% 85,427 72% Consum
Slide 39: Najim Mostamand, CFA
Najim Mostamand, CFA VP, Investor Relations (757) 431-7913 IR@pragroup.com IR.PRAGROUP.COM