PRA Group, Inc. (PRAA) Q1 2026 Earnings Call

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WEBVTT 00:00:00.031 -- 00:00:04.196 digital, and offshoring to transform the business. 00:00:04.196 -- 00:00:09.542 We are focused on building on this momentum by continuing to execute against our PRA 00:00:09.542 -- 00:00:12.262 3.0 strategy. 00:00:13.126 -- 00:00:18.131 In addition to net income, we also focus on adjusted EBITDA, which we 00:00:18.131 -- 00:00:24.599 believe provides a more cash-driven perspective on our operating success. 00:00:24.599 -- 00:00:28.921 Adjusted EBITDA for the last 12 months was $1.3 billion. 00:00:28.921 -- 00:00:33.926 up 14% year over year, exceeding cash collections growth of 11%. 00:00:33.926 -- 00:00:35.467 Our 00:00:35.467 -- 00:00:40.612 net leverage, defined as net debt to adjusted EBITDA, continued to tick 00:00:40.612 -- 00:00:46.358 down, ending the quarter at 2.71 times compared to 2.73 times 00:00:46.358 -- 00:00:51.422 as of December 31, and compared to 2.82 times in the prior 00:00:51.422 -- 00:00:53.244 year period. 00:00:53.244 -- 00:00:59.482 This is due to the strong adjusted EBITDA growth coupled with disciplined purchasing, 00:00:59.482 -- 00:01:04.628 In line with our 3.0 strategy, our goal is to have our net leverage continue 00:01:04.628 -- 00:01:09.754 to decline over the next few years as we aim to land in the mid two 00:01:09.754 -- 00:01:12.034 times area. 00:01:12.337 -- 00:01:17.483 In terms of our funding, we have ample liquidity and a strong capital structure that 00:01:17.483 -- 00:01:21.227 is well diversified between bank and bond debt. 00:01:21.227 -- 00:01:26.713 As of March 31, we had $3.1 billion in total committed capital 00:01:26.713 -- 00:01:31.742 under our credit facilities with total availability of approximately $1 00:01:31.742 -- 00:01:33.264 billion, 00:01:33.264 -- 00:01:39.152 compri...