Slide 1: PRA Group Q2 2025 Conference Call Presentation
PRA Group Q2 2025 Conference Call Presentation Nasdaq: PRAA
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: Starting New Chapter at PRA on the Front Foot
Starting New Chapter at PRA on the Front Foot d Working with urgency to drive shareholder value Strong European track record provides playbook for U.S. transformation Company building on a solid foundation, with many key strengths 2 Nasdaq: PRAA
Slide 4: A Strong Foundation for Shareholder Value Creation
A Strong Foundation for Shareholder Value Creation Multiple Catalysts to Drive Near- and Long-Term Value Strong Geographically Deep global Strong Opportunity to Ample leadership diversified seller European accelerate funding team with business in 18 relationships business transformation with no deca
Slide 5: Near-Term Focus Centered Around Three Strategic Pillars to Enhanced Value
Near-Term Focus Centered Around Three Strategic Pillars to Enhanced Value Optimizing Operational Managing Enhanced Value Investments Execution Expenses Increase ERC1 and portfolio Maximize cash collected Optimize cost structure returns per dollar invested ✓ Continue allocating capital ✓ Build on pro
Slide 6: Continued Purchasing Discipline Drives Improvement in Purchase Price Multiples
Continued Purchasing Discipline Drives Improvement in Purchase Price Multiples (PPM)1 PPMs Quarterly 1 and Portfolio PortfolioPurchases Purchases12 ERC32 2023: 2024: 1H 2025: 1.69x 1.80x 1.82x PPM 2023: 2024: 1H 2025: +22% 1.97x 2.11x 2.14x $8.3 $7.8 $7.3 $7.5 $433 $6.8 $6.4 $6.5 $379 $5.9 $6.0 $350
Slide 7: Double-Digit Collections Growth Driven by Recent Portfolio Purchases and Investments in the U.S. Legal Channel
Double-Digit Collections Growth Driven by Recent Portfolio Purchases and Investments in the U.S. Legal Channel $ in millions Total Cash Collections U.S. Legal Cash Collections +13% +24% $536 $119 ✓ Legal is an important $497 $111 channel but not the channel $474 $477 $468 of first resort $450 $411 $
Slide 8: Portfolio Income Growth Accelerating, Driven by Strong Recent Investments at Higher Purchase Price Multiples
Portfolio Income Growth Accelerating, Driven by Strong Recent Investments at Higher Purchase Price Multiples $ in millions Portfolio Income Changes in Expected Recoveries +20% $73 +14% $251 $61 $241 $55 $230 $52 $216 $195 $202 $209 Avg: $188 $184 $190 $33 $33 $28 $21 $22 $23 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Slide 9: Six Consecutive Quarters of Profitability
Six Consecutive Quarters of Profitability $42 Million in Net Income in Q2; $13 Million Excluding After-Tax Gain from RCB Sale in Brazil $ in millions +1% $284 $281 $293 $270 $288 $221 $256 $209 $216 $155 Revenues +4% $189 $189 $195 $191 $199 $195 $203 $164 $173 $176 Operating Expenses +97% 50 $42 $2
Slide 10: Strong Cash Collections Drive Adjusted EBITDA Growth
Strong Cash Collections Drive Adjusted EBITDA Growth Leverage Remains Stable and Within 2-3x Target Range $ in millions -28% -8% +2% +4% +16% +8% +13% +15% +17% +20% +16% $1,240 $1,184 $1,100 $1,138 $1,044 $1,065 $1,015 $993 $998 $1,007 2.81x 2.87x 2.83x 2.82x 2.81x 2.78x 2.65x 2.73x 2.78x 2.73x 3/3
Slide 11: Strong Capital Structure
Strong Capital Structure No Near-Term Maturities; Repurchased $10 million of Shares During the Quarter $ in millions Debt Maturity Profile • $841 million available under our credit facilities as of June 30, 2025 $1,962 • $522 million available based on current ERC • $319 million of additional availa
Slide 12: Key Takeaways
Key Takeaways d Another quarter of solid results: robust portfolio purchases, record ERC, double-digit cash collections growth and 60%+ cash efficiency Entering second half of 2025 with momentum and accelerating transformation of U.S. business Focused intensely on shareholder value creation 11 Nasda
Slide 13: Q&A
Q&A 12 Nasdaq: PRAA
Slide 14: Reconciliation of Non-GAAP Financial Measures to GAAP
Reconciliation of Non-GAAP Financial Measures to GAAP $ in millions 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 E
Slide 15: Reconciliation of Non-GAAP Financial Measures to GAAP (Cont.)
Reconciliation of Non-GAAP Financial Measures to GAAP (Cont.) Use of Non-GAAP Financial Measures (Cont.) 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
Slide 16: Najim Mostamand, CFA
Najim Mostamand, CFA VP, Investor Relations (757) 431-7913 IR@pragroup.com IR.PRAGROUP.COM