Pra Group, Inc. · NASDAQ:PRAA
Pra — Investor Presentation (August 2026)
37 slides from Pra's investor presentation, August 2026
Slide 1: August 2026 Investor Presentation
August 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 (Q2 2026) 1. 30+ years in business, led by highly experienced 1 management team $297M $559M Portfolio Purchases Cash Collections 2. Significant global scale and diversification across 18 Discipline
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 $1,085 9% $1,000 8% ✓ U.S. credit card balances up 7% 30%+ 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: Agenda
Agenda Company Overview Financial Performance PRA 3.0 Strategy Appendix 11 Nasdaq: PRAA
Slide 13: Q2 2026 Highlights: Continued Execution Against PRA 3.0
Q2 2026 Highlights: Continued Execution Against PRA 3.0 $ in millions Continued Growth in Cash Collections Disciplined Capital Deployment While Maintaining Strong Operating Efficiency with Portfolio Purchases in Line with Expectations Cash Collections & Cash Efficiency Ratio1 Portfolio Purchases +4%
Slide 14: Q2 Portfolio Purchases Remained in Line with Expectations
Q2 Portfolio Purchases Remained in Line with Expectations $ in millions Core PPMs1 and Portfolio Purchases PRA 1.98x 2.07x 1.98x 1.96x 1.98x (global) Capital Deployed Only to Portfolios That Meet Europe 1.87x 2.01x 1.78x 1.84x 1.86x Return Thresholds • Global allocation framework provides flexibilit
Slide 15: Continued Cash Collections Growth Driven by U.S. Legal & Digital and Europe
Continued Cash Collections Growth Driven by U.S. Legal & Digital and Europe 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 Collections
Slide 16: Financial Impact of the European Portfolio Review
Financial Impact of the European Portfolio Review Europe Performance What We Did Expected Future Impact • Europe cash collections exceeded • Performed comprehensive review • Higher portfolio income, the underwriting targets for 6+ of European portfolios, as part of more predictable component of cons
Slide 17: Higher Revenues Supported by Europe ERC Increase and Portfolio Income Growth
Higher Revenues Supported by Europe ERC Increase and Portfolio Income Growth $ in millions Total Revenues Changes in Expected Recoveries +29% $372 $74 $311 $333 $315 $7 $288 $7 $44 $1 $97 $33 $3 $51 $1 $64 +7% $40 $37 $27 $24 $27 $23 $21 $23 $251 $259 $263 $270 $268 Q2 25 Q3 25 Q4 25 Q1 26 Q2 26 ($7
Slide 18: Strong Earnings Growth Supported by Revenue Growth and Continued Cost Discipline
Strong Earnings Growth Supported by Revenue Growth and Continued Cost Discipline $ in millions Total Operating Expenses Adjusted Net Income1 & Adjusted ROATE2 15.3% 23.3% $219 6.0% 9.3% 11.7% $203 $58 $89 $96 $35 $28 $38 $53 -7% $13 $21 $76 $70 Q2 25 Q2 26 Q2 25 Q3 25 Q4 25 Q1 26 Q2 26 Compensation
Slide 19: Adjusted EBITDA Growth Continued to Reduce Net Leverage
Adjusted EBITDA Growth Continued to Reduce Net Leverage $ in millions Borrowings, LTM Adjusted EBITDA1, and Net Leverage2 Borrowings $2,953 $3,114 $3,296 $3,327 $3,466 $3,614 $3,607 $3,697 $3,779 $3,759 Net leverage declined to 2.67x, 2.87x 2.81x 2.83x 2.82x 2.81x down from its peak 2.77x 2.73x 2.73
Slide 20: Strong Funding Profile Supports Disciplined Capital Allocation
Strong Funding Profile Supports Disciplined Capital Allocation Staggered Maturities (None Until 2028) Flexible Capital Allocation Strategy Debt Maturity Profile1 $ in millions 1 Disciplined portfolio purchases that meet return $1,862 thresholds $550 $618 $398 $343 $0 $0 2026 2027 2028 2029 2030 2031
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 Executing PRA 3.0
Recent Progress Executing PRA 3.0 Major Milestones Achieved Across All Three Vectors During Q2 and Early Q3 Capital & Investing Operations, Tech & Data People & Culture ✓ Increased Europe ERC by $349M ✓ Completed second wave of cost reduction ✓ Reduced management following sustained overperformance
Slide 27: Clear Strategy, Strong Execution, and Significant Opportunities Ahead
Clear Strategy, Strong Execution, and Significant Opportunities Ahead Financial Targets Over Next 2-3 Years Focus Areas for Remainder of 2026 with PRA 3.0 Execution Capital & Investing $1.0 - $1.3 Billion • Disciplined investments • Deploy capital to opportunities meeting return thresholds of Purcha
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: 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 34: 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, 2024 through t
Slide 35: Reconciliation of Total Stockholders' Equity to Average Tangible Equity and Adjusted Net Income
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 36: 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 Q2 % Q3 % Q4 % Q1 % Q2 % Major Credit Cards 99,192 54% 74,171 55% 32,323 29% 20,288 17% 32,910 30% Private Label Credit Cards 73,235 40% 54,050 40% 70,685 63% 85,427 72% 66,101 60% Consum
Slide 37: Najim Mostamand, CFA
Najim Mostamand, CFA VP, Investor Relations (757) 431-7913 IR@pragroup.com IR.PRAGROUP.COM