Pra Group, Inc. · NASDAQ:PRAA
Pra — Investor Presentation (August 2025)
37 slides from Pra's investor presentation, August 2025
Slide 1: August 2025 Investor Presentation
August 2025 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 Investment Thesis Financial Performance 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) $1.4B $2.0B ✓ 25+ years in business, led by highly experienced management team LTM Portfolio LTM Cash Purchases Collections 16% YoY Growth 13% YoY Growth ✓ A leading acquirer and collector of NPLs across 18 countries ✓ Key
Slide 5: Our Operating Principles Have Shaped How We Do Business Across Market Cycles
Our Operating Principles Have Shaped How We Do Business Across Market Cycles Invest with • Assess investments objectively and price them Discipline to achieve attractive returns Focus on • Operate the business with a Drive Creating Value • Maximize the cash collected long-term orientation that Opera
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: Agenda
Agenda Company Overview Investment Thesis Financial Performance Appendix 6 Nasdaq: PRAA
Slide 8: A Strong Foundation for Shareholder Value Creation
A Strong Foundation for Shareholder Value Creation Multiple Catalysts to Drive Near- and Long-Term Value 1 2 3 4 5 6 Strong Geographically Deep global Strong Opportunity to Ample leadership diversified seller European accelerate funding team with business in 18 relationships business transformation
Slide 9: Deep Expertise and Industry Experience to Drive Next Phase of Profitable Growth
1 Deep Expertise and Industry Experience to Drive Next Phase of Profitable Growth 25+ 25+ 25+ 30+ 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 30+ 30+
Slide 10: Resilient Global Business Model
2 Resilient Global Business Model Levers for Mitigating Potential Consumer Pressure ~50/50 57% 24% Total Core of Total Core of Total Core Collections Mix Collections from Collections from Between U.S. Global Call U.S. Legal and Rest of Centers & Other Channel World Channels ✓ One of the most geograp
Slide 11: Strong Track Record Through the Cycle with Growth From Pre-Pandemic Levels
2 Strong Track Record Through the Cycle with Growth From Pre-Pandemic Levels $ in millions Global Financial Crisis1 COVID-192 +15% $1,408 $1,421 $1,241 $1,154 $1,109 $1,118 $964 $905 $905 $972 $850 $657 $705 $367 $408 $470 Portfolio $264 $280 $289 $112 Purchases3 +7% $2,006 $2,062 $1,979 $1,841 $1,7
Slide 12: Over Time We Generally Collect More Than We Underwrote, Leading to PPM Expansion
2 Over Time We Generally Collect More Than We Underwrote, Leading to PPM1 Expansion Americas and Australia Core PPMs1 Europe Core PPMs1 Key Highlights ✓ Strong track record of cash 250% 250% overperformance has driven expansion of multiples 200% 200% ✓ Americas and Australia Core original PPMs on ne
Slide 13: Continued Favorable Supply Across the U.S. and Europe
3 Continued Favorable Supply Across the U.S. and Europe Current Environment PRA’s Competitive Advantage • Healthy supply with attractive pricing • Key buyer in the world’s largest NPL market dynamics • Strong seller relationships with a focus on further • Stable competitive landscape expanding selle
Slide 14: Record Credit Card Balances & High Charge-Off Rates Continue to Drive Elevated U.S. Supply
3 Record Credit Card Balances & High Charge-Off Rates Continue to Drive Elevated U.S. Supply U.S. Credit Card Balances1 and Charge-Off Rates2 $ in billions $1,200 +33% 10% Key highlights 9% $1,000 8% ✓ U.S. credit card balances up 7% 33% since pre-pandemic $800 6% (end of 2019) $600 5% 4% ✓ Balances
Slide 15: Strong, Differentiated European Business with Consistent ERC & Collections Growth
4 Strong, Differentiated European Business with Consistent ERC & Collections Growth PRA Europe ERC1 $5.0 CAGR: +7% $4.2 $4.0 Key highlights $3.4 $3.6 $2.9 $3.2 $3.1 $3.0 $3.0 $2.4 $2.5 $2.1 $2.0 $1.5 $2.0 ✓ Experienced and tenured management $1.0 $0.0 ✓ Diversified presence across 13 countries 2014
Slide 16: Europe's Transformation Under Martin's Leadership
4 Europe’s Transformation Under Martin’s Leadership 2018 Now • Low-cost, front-line mass-dialing • Focus on talent, technology, digital, and data & analytics • Patchwork of collection systems across various markets • One standard, cloud-based omni-channel contact platform • No chat or text, limited
Slide 17: Three Strategic Pillars Continuing to Drive U.S. Transformation
5 Three Strategic Pillars Continuing to Drive U.S. Transformation Optimizing Operational Managing Enhanced Value Investments Execution Expenses Increase ERC and portfolio Maximize cash collected Optimize cost structure returns per dollar invested ✓ Continue allocating capital ✓ Build on progress mad
Slide 18: Strong Capital Structure
6 Strong Capital Structure No Near-Term Maturities; Repurchased $10 million of Shares During the Quarter $ in millions Debt Maturity Profile Key Highlights ✓ No maturities until 2027 $1,962 ✓ $841 million available under our credit facilities as of June 30, 2025 ✓ Strong long-term relationships with
Slide 19: Capital Allocation Strategy
6 Capital Allocation Strategy Focused on Delivering Optimal Value to Shareholders Capital Allocation Strategy Portfolio Return Capital Strategic M&A Purchases to Shareholders • Disciplined • Repurchased • If, and when, investments at ~$10 million of appropriate attractive shares in Q2 – returns limi
Slide 20: Agenda
Agenda Company Overview Investment Thesis Financial Performance Appendix 19 Nasdaq: PRAA
Slide 21: Continued Purchasing Discipline Drives Improvement in Purchase Price Multiples
Continued Purchasing Discipline Drives Improvement in Purchase Price Multiples (PPM)1 Core Quarterly PPMs1 and Portfolio Portfolio Purchases Purchases 1 2 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
Slide 22: 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 23: Portfolio Income Growth Accelerating, Driven by Strong Recent Investments at Higher PPMs
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 24: 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 25: 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 26: Agenda
Agenda Company Overview Investment Thesis Financial Performance Appendix 25 Nasdaq: PRAA
Slide 27: One of the Largest and Most Established Debt Buyers
One of the Largest and Most Established Debt Buyers Disciplined Organic and Inorganic Growth Through Multiple Credit Cycles 2004 2008 2023 2025 1996 Diversified U.S. Navigated Vik Atal Martin Sjolund Founded by portfolio into Global Financial 2014 2018 appointed CEO, appointed CEO, Steve acquisition
Slide 28: Our Mission & Core Values
Our Mission & Core Values OUR MISSION To deliver nonperforming loan solutions that drive success through a long-term focus and customer care to always doing for our actions in our in every because we our best work interactions situation work together with each other as a team 27 Nasdaq: PRAA
Slide 29: 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 30: 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 31: 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 32: How Cash Overperformance Can Lead to Same Lifetime Collections as Portfolio With No Overperformance
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 33: Reconciliation of Non-GAAP Financial Measures to GAAP
Reconciliation of Non-GAAP Financial Measures to GAAP $ in millions Use of Non-GAAP Financial Measures PRA Group, Inc. reports its financial results in accordance with U.S. generally accepted accounting principles (GAAP). However, management uses certain non-GAAP financial measures, including Adjust
Slide 34: Reconciliation of Non-GAAP Financial Measures to GAAP (Cont.)
Reconciliation of Non-GAAP Financial Measures to GAAP (Cont.) $ in millions Use of Non-GAAP Financial Measures (Cont.) The Company also evaluates its business using certain ratios that use Adjusted EBITDA. Net debt to Adjusted EBITDA is calculated by dividing borrowings less cash and cash equivalent
Slide 35: 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 36: U.S. Portfolio Acquisitions by Major Asset Type & Delinquency Category
U.S. Portfolio Acquisitions by Major Asset Type & Delinquency Category $ in thousands 2025 2024 Major Asset Type Q2 % Q1 % Q4 % Q3 % Q2 % Major Credit Cards 99,192 54% 73,486 46% $ 87,477 51% 128,420 56% 67,505 33% Private Label Credit Cards 73,235 40% 79,366 49% 77,255 45% 96,733 42% 117,612 57% Co
Slide 37: Najim Mostamand, CFA
Najim Mostamand, CFA VP, Investor Relations (757) 431-7913 IR@pragroup.com IR.PRAGROUP.COM