Slide 1: PRA Group Q4 and FY 2025 Conference Call Presentation
PRA Group Q4 and FY 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: Q4 and FY 2025 Highlights
Q4 and FY 2025 Highlights Key Metrics Improving, with Adjusted Net Income Attributable to PRA of $73 Million $ in millions 3rd Highest Annual Purchases Level in Company History Double-Digit Collections Growth w/ 60%+ Adjusted Cash Efficiency Portfolio Purchases Cash Collections & Adjusted Cash Effic
Slide 4: We Have Come a Long Way in the Last Three Years
We Have Come a Long Way in the Last Three Years 2025 Was Another Year of Significant Improvement, But More Work to Be Done 2023 2024 2025 Adjusted Net Income/(Loss) Attributable to PRA1 ($83M) $71M $73M Increased Portfolio • U.S. Core PPM: 1.91x • U.S. Core PPM: 2.11x • U.S. Core PPM: 2.16x Returns2
Slide 5: Purchase Price Multiples Continued to Improve As We Remain Focused on Driving Higher Returns
Purchase Price Multiples Continued to Improve As We Remain Focused on Driving Higher Returns $ in millions Core PPMs1 and Portfolio Purchases Estimated Remaining Collections (ERC)2 Europe 1.69x 1.80x 1.85x +15% $8,609 U.S. 1.91x 2.11x 2.16x $564 $7,461 $1,408 $6,399 $1,154 $1,209 U.S. $3,658 Europe
Slide 6: Strong Cash Generation Supported by Continued Growth in U.S. Legal Collections Channel
Strong Cash Generation Supported by Continued Growth in U.S. Legal Collections Channel $ in millions Total Cash Collections U.S. Legal Collections Channel +13% +28% $2,108 $1,869 $211 $483 $1,660 $220 +13% $216 $376 $812 $721 $264 $664 +17% $125 $781 $927 $1,085 $63 $89 2023 2024 2025 2023 2024 2025
Slide 7: Growing Portfolio Income with Cash Overperformance Representing Majority of Changes in Expected Recoveries
Growing Portfolio Income with Cash Overperformance Representing Majority of Changes in Expected Recoveries $ in millions Portfolio Revenue1 Changes in Expected Recoveries $156 $1,190 $1,098 $121 $176 $786 $241 +18% $85 $29 $65 $56 $857 $1,013 $757 2023 2024 2025 ($36) 2023 2024 2025 Portfolio Income
Slide 8: 5 Consecutive Years of Cash Overperformance Suggest That Portfolio Income Contribution Can Increase
5 Consecutive Years of Cash Overperformance Suggest That Portfolio Income Contribution Can Increase Actual Cash Collections vs. Estimated Cash Collections Factors Driving Higher Portfolio Income: • Higher PPMs, as we become more selective in our buying and more effective in our collection capabiliti
Slide 9: Adjusted Net Income Attributable to PRA Increased 3% Year-over-Year
Adjusted Net Income Attributable to PRA Increased 3% Year-over-Year $ in millions Adjusted Net Income/(Loss) Operating Expenses and Total Revenue Attributable to PRA2 & Adjusted Operating Expenses1 Adjusted ROATE3 +3% +8% +6% $71 $73 $1,202 $1,232 $1,115 $413 $819 9.5% 8.5% $803 $775 $775 $702 $702
Slide 10: Continued Adjusted EBITDA Growth Supporting Decreasing Net Leverage
Continued Adjusted EBITDA Growth Supporting Decreasing Net Leverage $ 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 2.87x • Net leverage continued to 2.81x 2.83x 2.82x 2.81x decline from
Slide 11: Diversified and Strong Capital Structure
Diversified and Strong Capital Structure Ample Liquidity with No Maturities in 2026; $20M of Shares Repurchased in 2025 Debt Maturity Profile1 $ in millions $1,831 • $1.1 billion available under credit facilities as of December 31, 2025 • $825 million available based on current ERC • $274 million of
Slide 12: 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 13: 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 14: 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 15: 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 16: Bringing Together The Three Vectors of PRA 3.0 to Drive Improved Financial Results
Bringing Together The Three Vectors of PRA 3.0 to Drive Improved Financial Results Disciplined Growing Declining Higher Returns Investments Adjusted EBITDA1 Net Leverage2 $ in billions $ in billions $ in millions $1.4 $1.3 2.78x 2.83x 2.73x $1.0 $1.1 $1.2 $1.2 $71 $73 -$83 23 24 25 23 24 25 23 24 25
Slide 17: Q&A
Q&A 16 Nasdaq: PRAA
Slide 18: 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 19: 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 20: Reconciliation of Total Operating Expenses to Adjusted Operating Expenses and Calculation of Adjusted Cash Efficiency Ratio
Reconciliation of Total Operating Expenses to Adjusted Operating Expenses and Calculation of Adjusted Cash Efficiency Ratio Non-GAAP Financial Measures The following table provides a reconciliation of Total operating expenses to Adjusted operating expenses and presents the Company's Adjusted cash ef
Slide 21: 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/(Loss) Attributable to PRA Non-GAAP Financial Measures The following table provides a reconciliation of Total stock
Slide 22: Reconciliation of Diluted Earnings Per Share to Adjusted Diluted Earnings Per Share
Reconciliation of Diluted Earnings Per Share to Adjusted Diluted Earnings Per Share Non-GAAP Financial Measures The following table provides a reconciliation of diluted earnings per share to Adjusted diluted earnings per share: 2023 2024 2025 Diluted earnings per share $ (2.13) $ 1.79 $ (7.79) Effec
Slide 23: Najim Mostamand, CFA
Najim Mostamand, CFA VP, Investor Relations (757) 431-7913 IR@pragroup.com IR.PRAGROUP.COM