Slide 1: PRA Group Q1 2025 Conference Call Presentation
PRA Group Q1 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: Q1 2025 Highlights
Q1 2025 Highlights Started 2025 with Momentum and Delivered Strong Results Metric Q1 2025 Q1 2024 Change • Strong purchasing led to record ERC ($ in M, except per share amounts) Portfolio Purchases $292 $246 +19% ERC1 $7,805 $6,498 +20% • Double-digit cash collections growth for fourth quarter in a
Slide 4: Three Strategic Pillars to Enhanced Profitability
Three Strategic Pillars to Enhanced Profitability Latest Update • Higher investment levels in Europe in Q1, with attractive pricing globally 1 Optimizing Investments Increase ERC and portfolio returns • Achieved record ERC of $7.8 billion as of March 31, 2025 • Continued focus on reducing U.S. legal
Slide 5: Seamless Leadership Transition for Next Phase of Growth
Seamless Leadership Transition for Next Phase of Growth Leveraging Successful European Playbook to Build on Three-Pillar Strategy ✓ 13 years at PRA Group (7 as President of PRA Group Europe) ✓ Member of the senior leadership team, overseeing 15 of PRA Group’s 18 markets ✓ Member of the Global Invest
Slide 6: PRA Europe: A Track Record of Consistent Growth
PRA Europe A Track Record of Consistent Growth PRA Europe ERC1 Optimizing Investments: $5.0 CAGR: +6% $4.0 $3.9 • Track record of disciplined investments with $3.4 $3.6 $2.9 $3.2 $3.1 $3.0 deep seller relationships $3.0 $2.4 $2.5 $2.0 $2.1 $2.0 $1.5 • Successfully purchased $3B+ in portfolios while
Slide 7: Q1 Investments Up 19% Year-Over-Year
Q1 Investments Up 19% Year-Over-Year Achieved Record ERC of $7.8 Billion Quarterly Portfolio Purchases1 ERC2 +20% +19% $7.8 $433 $7.3 $7.5 $6.8 $379 $6.4 $6.5 $350 $5.9 $6.0 $328 $5.7 $311 $285 $292 $230 $246 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 3/31 6/30 9/30 12/31 3/31 6/30 9/30 12/31 3/31 2023 2024 2025 20
Slide 8: Q1 Cash Collections Increased 11% Year-Over-Year
Q1 Cash Collections Increased 11% Year-Over-Year $ in millions +11% +9% $497 $474 $477 $468 $450 $411 $419 $420 $410 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2023 2024 2025 Americas and Australia Europe 7 Nasdaq: PRAA
Slide 9: The Two Components of Portfolio Revenue
The Two Components of Portfolio Revenue Both Represent an Important Part of Revenue & Profitability $ in millions Portfolio Income Changes in Expected Recoveries +19% $73 $61 $241 $55 $230 $52 $209 $216 Avg: $195 $202 $188 $184 $190 $33 $28 $21 $22 $23 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 ($37) Q1 Q2 Q3 Q4 Q1
Slide 10: Q1 2025 Financial Results
Q1 2025 Financial Results Revenue Growth and Disciplined Cost Management Drive Profitability $ in millions +5% $284 $281 $293 $270 $221 $256 $209 $216 $155 Revenues +3% $189 $189 $195 $191 $199 $195 $164 $173 $176 Operating Expenses +5% 40 $27 1.0 $22 $18 20 $3 $4 0.8 0 0.6 ($4) Net Income-20 ($12)
Slide 11: 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 +13% +3% $1,184 $1,100 $1,138 $1,044 $1,065 $1,015 $993 $998 $1,007 2.92x 3.00x 2.92x 2.93x 2.89x 2.76x 2.84x 2.89x 2.83x 3/31 6/30 9/30 12/31 3/31 6/30 9/30 12/31 3/31 2023 2024 2
Slide 12: Strong Capital Structure
Strong Capital Structure Well-Positioned to Continue Capitalizing on Elevated Portfolio Supply $ in millions Debt Maturity Profile • $919 million available under our credit facilities as of March 31, 2025 $1,913 • $538 million available based on current ERC • $381 million of additional availability
Slide 13: Key Takeaways
Key Takeaways d Positive start to the year with encouraging results on key financial metrics Confident about the overall trajectory of the business Company is positioned for continued success with transition to new CEO 12 Nasdaq: PRAA
Slide 14: Q&A
Q&A 13 Nasdaq: PRAA
Slide 15: 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 16: Najim Mostamand, CFA, VP, Investor Relations
Najim Mostamand, CFA VP, Investor Relations (757) 431-7913 IR@pragroup.com IR.PRAGROUP.COM