PRA : Reports Second Quarter 2026 Results

About this update from Pra Group, Inc.

$58 Million Net Income Driven by $349 Million Increase in Europe ERC Following Comprehensive European Portfolio Review and Strong Long-Term Performance Continued to Deliver on Significant Execution Milestones Under PRA 3.0 Strategy, Including Additional Cost Reductions, Call Center Footprint Consolidation and Technology Modernization Repurchased $10 Million of Shares During the Quarter; Board of Directors Authorized New Share Repurchase Program for up to $150 Million NORFOLK, Va. , Aug. 6, 2026 / PRNewswire / -- PRA Group, Inc. (Nasdaq: PRAA) (the "Company"), a global leader in acquiring and collecting nonperforming loans, today reported its financial results for the second quarter of 2026 ("Q2 2026"). Q2 2026 Highlights (vs. Q2 2025) Total cash collections of $559 million, up 4%. Net income attributable to PRA Group, Inc. of $58 million, or diluted earnings per share of $1.51. Estimated remaining collections (ERC) 1 of $8.9 billion, up 7%. Adjusted EBITDA 2 of $1.4 billion, up 10%. Cash efficiency ratio 3 of 61%. Total portfolio purchases of $297 million, in line with expectations. 1. Refers to the sum of all future projected cash collections on the Company's nonperforming loan portfolios. 2. For the 12 months ended June 30, 2026. A reconciliation of net income attributable to PRA Group, Inc. to Adjusted EBITDA can be found at the end of this press release. 3. Calculated by dividing cash receipts less operating expenses by cash receipts. Cash receipts refers to cash collections on the Company's nonperforming loan portfolios, fees and revenue recognized from the Company's class action claims recovery services. "We continued to execute against our PRA 3.0 strategy during the second quarter to drive higher returns and long-term shareholder value," said Martin Sjolund, president and chief executive officer. "We generated continued growth in cash collections, maintained strong cash efficiency, invested nearly $300 million in portfolio purchases, and delivered higher earnings. We also performed a comprehensive review of our European portfolios as part of our quarterly portfolio assessment. This review resulted in an approximately $349 million increase in European ERC, reflecting more than six years of sustained cash overperformance in Europe, as well as enhancements to our analytical processes and forecasting capabilities. We believe this is an important milestone that better aligns our European ERC with the long trend of historical overperformance of the European portfolios. As a result of this change, we expect higher levels of portfolio income going forward and more moderate levels of changes in expected recoveries over the long-term." "We also achieved a number of important execution milestones during the quarter. We continued reducing costs and simplifying the organization, further consolidated our U.S. call center footprint, expanded our AI capabilities, and maintained a disciplined approach to capital allocation. Our teams are moving with pace and rigor across all three vectors of our PRA 3.0 strategy, and we are beginning to see the benefits of these actions reflected in our financial results through record ERC levels, growing adjusted EBITDA, and a strong funding profile. We remain focused on improving financial performance, further strengthening the balance sheet, and delivering long-term value for shareholders." Cash Collections and Revenues The following table presents cash collections by quarter and by source, as reported and on a constant currency-adjusted basis: Cash Collection Source 2026 2025 ($ in thousands) Q2 Q1 Q4 Q3 Q2 U.S. Core $ 269,678 $ 268,409 $ 249,322 $ 258,277 $ 253,856 U.S. Insolvency 21,434 20,141 20,223 21,131 21,175 Europe Core 200,420 192,019 188,277 185,910 185,652 Europe Insolvency 17,658 20,547 19,166 22,658 24,609 Other markets (1) 49,355 50,812 54,670 54,268 50,996 Total cash collections $ 558,545 $ 551,928 $ 531,658 $ 542,244 $ 536,288 Cash Collection Source - Constant Currency-Adjusted 2026 2025 ($ in thousands) Q2 Q2 U.S. Core $ 269,678 $ 253,856 U.S. Insolvency 21,434 21,175 Europe Core 200,420 189,826 Europe Insolvency 17,658 24,761 Other markets (1) 49,355 56,025 Total cash collections $ 558,545 $ 545,643 1. Reflects total cash collections in South America, Canada and Australia. Total cash collections in Q2 2026 increased 4% to $559 million, compared to $536 million in the second quarter of 2025 ("Q2 2025"), driven by continued strength in the U.S. legal and digital collections channels and in our European business. Three Months Ended June 30, ($ in thousands) 2026 2025 Portfolio income $ 267,799 $ 250,934 Recoveries collected in excess of forecast 22,742 40,302 Changes in expected future recoveries 74,182 (7,010) Changes in expected recoveries 96,924 33,292 Total portfolio revenue $ 364,723 $ 284,226 Portfolio income in Q2 2026 increased 7% to $268 million, compared to $251 million in Q2 2025, driven by strong recent purchases at attractive returns. Changes in expected recoveries in Q2 2026 increased to $97 million, compared to $33 million in Q2 2025. The increase was primarily driven by the approximately $349 million increase in European ERC following a comprehensive review as part of the Company's quarterly portfolio assessment. The comprehensive review reflected more than six years of sustained cash overperformance across the Company's European business. Total portfolio revenue in Q2 2026 increased 28% to $365 million, compared to $284 million in Q2 2025. Expenses Operating expenses in Q2 2026 increased $16 million to $219 million, compared to $203 million in Q2 2025, driven primarily by a $15 million increase in legal collection costs to support future cash collections growth. Compensation and benefits expense decreased $5 million, primarily due to workforce reductions and other cost actions implemented during the past year. Communication expense decreased $2 million, reflecting the increased use of more cost-efficient digital collection strategies. Operating expenses in Q2 2026 included $5 million of expenses to reorganize the Company's U.S. business. This was comprised of $2 million of severance expenses related to the corporate and overhead headcount reduction during the quarter, as well as $3 million of real estate impairment and other expenses related to the consolidation of the Company's owned and leased call center facilities. Interest expense, net in Q2 2026 increased to $64 million, compared to $62 million in Q2 2025, primarily reflecting an increase in debt balances. The effective tax rate for the quarter was 33%. Portfolio Purchases Portfolio Purchase Source 2026 2025 ($ in thousands) Q2 Q1 Q4 Q3 Q2 U.S. Core $ 90,227 $ 105,469 $ 102,254 $ 119,672 $ 160,193 U.S. Insolvency 19,220 13,043 10,088 14,809 22,134 Europe Core 164,620 86,715 152,375 95,239 142,465 Europe Insolvency 9,817 4,837 4,758 5,934 4,757 Other markets (1) 12,687 10,786 45,326 19,838 16,956 Total portfolio purchases $ 296,571 $ 220,850 $ 314,801 $ 255,492 $ 346,505 The Company purchased $297 million in portfolios of nonperforming loans in Q2 2026, as it continues to be disciplined with its investments and return thresholds. At the end of Q2 2026, the Company had in place estimated forward flow commitments 2 of $219 million over the next 12 months, comprised of $117 million in Europe, $86 million in the U.S., and $15 million in other markets. 1. Reflects total portfolio purchases in South America, Canada and Australia. 2. Contractual agreements with sellers of nonperforming loans that allow for the purchase of nonperforming loan portfolios at pre-established prices. These amounts represent our estimated forward flow purchases over the next 12 months under the agreements in place based on projections and other factors, including sellers' estimates of future forward flow sales, and are dependent on actual delivery by the sellers and, in some cases, the impact of foreign exchange rate fluctuations. Accordingly, amounts purchased under these agreements may vary significantly. Credit Availability Total availability under the Company's credit facilities as of June 30, 2026 was $998 million, comprised of $733 million based on current ERC and subject to debt covenants, and $265 million of additional availability subject to borrowing base and debt covenants, including advance rates. Share Repurchases During Q2 2026, the Company repurchased $10 million of its outstanding common stock. On August 3, 2026, the Company's board of directors authorized a new $150 million program. The new share repurchase program has no stated expiration date and repurchases may be made through open market purchases or other available means at the Company's discretion, subject to applicable regulatory requirements. The amount and timing of share repurchases depend on several factors, including the Company's capital allocation priorities, financial performance, market conditions, valuation, leverage, liquidity, and the terms of its existing debt agreements. The new share repurchase program remains subject to the discretion of the Company's board of directors. "We continue to maintain a disciplined capital allocation framework that prioritizes portfolio purchases at attractive returns and investments that enhance our operating performance, while also undertaking opportunistic share repurchases when we see an opportunity to drive value for our shareholders," said Rakesh Sehgal, executive vice president and chief financial officer. "This new share repurchase program provides additional flexibility in how we deploy capital and reflects our commitment to long-term shareholder value." Conference Call Information PRA Group, Inc. will hold a conference call today at 5:00 p.m. ET to discuss its financial and operational results. To listen to a webcast of the call and view the accompanying slides, visit https://ir.pragroup.com/events-and-presentations . To listen by phone, call 646-357-8785 in the U.S. or 1-800-836-8184 outside the U.S. and ask for the PRA Group conference call. To listen to a replay of the call, either visit the same website until August 6, 2027, or call 646-517-4150 in the U.S. or 1-888-660-6345 outside the U.S. and use access code 53963# until August 13, 2026. About PRA Group, Inc. As a global industry leader with more than 30 years of experience, PRA Group, Inc. (Nasdaq: PRAA) specializes in acquiring and collecting nonperforming loans. PRA Group purchases portfolios from banks and other creditors and, through its subsidiaries, collaborates with customers to help them resolve their debt. Headquartered in Norfolk, Virginia, PRA Group has operations in the U.S., Europe, and other markets. For more information, please visit www.pragroup.com . About Forward Looking Statements Statements made herein that are not historical in nature, including PRA Group, Inc.'s or its management's intentions, hopes, beliefs, expectations, representations, projections, plans or predictions of the future, are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The forward-looking statements in this press release are based upon management's current beliefs, estimates, assumptions and expectations of PRA Group, Inc.'s future operations and financial and economic performance, taking into account currently available information. These statements are not statements of historical fact or guarantees of future performance, and there can be no assurance that anticipated events will transpire or that the Company's expectations will prove to be correct. Forward-looking statements involve risks and uncertainties, some of which are not currently known to PRA Group, Inc. Actual events or results may differ materially from those expressed or implied in any such forward-looking statements as a result of various factors, including the risk factors and other risks that are described from time to time in PRA Group, Inc.'s filings with the Securities and Exchange Commission, including PRA Group, Inc.'s annual reports on Form 10-K, its quarterly reports on Form 10-Q and its current reports on Form 8-K, which are available through PRA Group, Inc.'s website and contain a detailed discussion of PRA Group, Inc.'s business, including risks and uncertainties that may affect future results. Due to such uncertainties and risks, you are cautioned not to place undue reliance on such forward-looking statements, which speak only as of today. Information in this press release may be superseded by more recent information or statements, which may be disclosed in later press releases, subsequent filings with the Securities and Exchange Commission or otherwise. Except as required by law, PRA Group, Inc. assumes no obligation to publicly update or revise its forward-looking statements contained herein to reflect any change in PRA Group, Inc.'s expectations with regard thereto or to reflect any change in events, conditions or circumstances on which any such forward-looking statements are based, in whole or in part. PRA Group, Inc. Unaudited Consolidated Income Statements (Amounts in thousands, except per share amounts) Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Revenues Portfolio income $ 267,799 $ 250,934 $ 537,378 $ 491,892 Changes in expected recoveries 96,924 33,292 140,810 61,214 Total portfolio revenue 364,723 284,226 678,188 553,106 Other revenue 7,451 3,462 8,519 4,201 Total revenues 372,174 287,688 686,707 557,307 Operating expenses Compensation and benefits 70,377 75,724 141,115 149,047 Legal collection costs 52,525 37,583 100,983 70,977 Legal collection fees 18,386 15,625 35,457 30,855 Agency fees 23,214 22,688 47,795 44,056 Professional and outside services 22,512 21,071 43,396 42,174 Communication 7,664 9,417 16,683 19,894 Rent and occupancy 3,730 3,504 6,988 6,984 Depreciation, amortization and impairment of long-lived assets 4,724 2,503 6,432 6,272 Other operating expenses 15,760 14,462 31,322 27,360 Total operating expenses 218,892 202,577 430,171 397,619 Income from operations 153,282 85,111 256,536 159,688 Other income/(expense) Interest expense, net (64,363) (62,361) (127,881) (123,331) Gain on sale of equity method investment - 38,403 - 38,403 Foreign exchange gain/(loss), net (501) 50 553 (1) Other (92) (75) (346) (255) Income before income taxes 88,326 61,128 128,862 74,504 Income tax expense 29,385 15,415 38,149 19,727 Net income 58,941 45,713 90,713 54,777 Net income attributable to noncontrolling interests 1,024 3,339 4,586 8,744 Net income attributable to PRA Group, Inc. $ 57,917 $ 42,374 $ 86,127 $ 46,033 Net income per common share attributable to PRA Group, Inc. Basic $ 1.52 $ 1.08 $ 2.25 $ 1.17 Diluted $ 1.51 $ 1.08 $ 2.24 $ 1.16 Weighted average number of shares outstanding Basic 38,104 39,323 38,236 39,436 Diluted 38,303 39,385 38,407 39,536 PRA Group, Inc. Consolidated Balance Sheets (Amounts in thousands) (unaudited) June 30, 2026 December 31, 2025 ASSETS Cash and cash equivalents $ 132,431 $ 104,409 Investments 145,473 66,628 Finance receivables, net 4,717,204 4,688,024 Income taxes receivable 20,912 17,702 Deferred tax assets, net 64,936 76,955 Right-of-use assets 27,836 29,206 Property and equipment, net 22,213 24,886 Goodwill 26,871 26,871 Prepaid expenses and other assets 80,891 68,641 Total assets $ 5,238,767 $ 5,103,322 LIABILITIES AND EQUITY Liabilities Accrued expenses and accounts payable $ 129,175 $ 131,812 Income taxes payable 36,356 29,845 Deferred tax liabilities, net 32,240 17,064 Lease liabilities 30,681 32,160 Interest-bearing deposits 100,460 106,148 Borrowings 3,759,353 3,697,338 Other liabilities 37,605 48,990 Total liabilities 4,125,870 4,063,357 Equity Preferred stock, $0.01 par value, 2,000 shares authorized, no shares issued and outstanding - - Common stock, $0.01par value, 100,000 shares authorized, 37,648 shares issued and outstanding as of June 30, 2026; 100,000 shares authorized, 38,453 shares issued and outstanding as of December 31, 2025 376 385 Additional paid-in capital - 11,474 Retained earnings 1,338,814 1,255,007 Accumulated other comprehensive loss (293,721) (287,015) Total stockholders' equity - PRA Group, Inc. 1,045,469 979,851 Noncontrolling interests 67,428 60,114 Total equity 1,112,897 1,039,965 Total liabilities and equity $ 5,238,767 $ 5,103,322 Purchase Price Multiples as of June 30, 2026 (in thousands, except percentages) Purchase Period Purchase Price (1)(2) Total Estimated Collections (3) Estimated Remaining Collections (4) Current Purchase Price Multiple Original Purchase Price Multiple U.S. Core 1996-2015 $ 2,736,875 $ 7,509,514 $ 88,885 274 % 223 % 2016 400,545 820,678 31,073 205 % 195 % 2017 511,902 1,168,691 63,472 228 % 193 % 2018 604,669 1,376,064 87,769 228 % 199 % 2019 432,222 1,017,231 64,379 235 % 209 % 2020 415,384 940,625 80,613 226 % 215 % 2021 339,885 602,989 108,705 177 % 191 % 2022 275,433 429,264 124,219 156 % 164 % 2023 506,319 942,514 405,841 186 % 191 % 2024 727,672 1,679,034 993,374 231 % 211 % 2025 531,021 1,160,216 920,909 218 % 216 % 2026 195,696 407,198 392,750 208 % 208 % Subtotal 7,677,623 18,054,018 3,361,989 U.S. Insolvency 1996-2015 1,472,385 2,806,860 - 191 % 154 % 2016 67,454 85,680 12 127 % 124 % 2017 275,257 359,737 126 131 % 125 % 2018 97,879 137,413 34 140 % 127 % 2019 120,845 164,637 90 136 % 128 % 2020 62,130 90,396 1,343 145 % 136 % 2021 54,898 73,841 3,209 135 % 136 % 2022 33,442 48,002 9,676 144 % 139 % 2023 61,242 80,697 33,878 132 % 136 % 2024 68,168 99,458 52,263 146 % 149 % 2025 59,091 93,346 79,735 158 % 160 % 2026 32,264 51,036 50,466 158 % 158 % Subtotal 2,405,055 4,091,103 230,832 Total U.S. 10,082,678 22,145,121 3,592,821 Europe Core 2012-2015 1,225,893 3,793,428 693,140 309 % 190 % 2016 333,090 636,868 169,208 191 % 167 % 2017 252,174 375,695 82,828 149 % 144 % 2018 341,775 589,860 158,170 173 % 148 % 2019 518,610 917,830 287,242 177 % 152 % 2020 324,119 617,610 208,905 191 % 172 % 2021 412,411 743,743 334,084 180 % 170 % 2022 359,447 593,873 344,363 165 % 162 % 2023 410,593 750,983 482,569 183 % 169 % 2024 451,786 812,676 641,676 180 % 180 % 2025 512,533 938,291 790,093 183 % 185 % 2026 247,303 461,433 447,812 187 % 187 % Subtotal 5,389,734 11,232,290 4,640,090 Europe Insolvency 2014-2015 29,849 49,127 - 165 % 135 % 2016 39,338 60,180 2,051 153 % 130 % 2017 39,235 54,033 1,161 138 % 128 % 2018 44,908 53,667 622 120 % 123 % 2019 77,218 115,235 3,878 149 % 130 % 2020 105,440 162,142 4,144 154 % 129 % 2021 53,230 82,097 7,770 154 % 134 % 2022 44,604 68,715 19,227 154 % 137 % 2023 46,558 74,356 35,647 160 % 138 % 2024 43,459 72,755 44,187 167 % 147 % 2025 20,760 30,862 25,485 149 % 145 % 2026 14,420 22,458 21,920 156 % 156 % Subtotal 559,019 845,627 166,092 Total Europe 5,948,753 12,077,917 4,806,182 Other markets (5) 963,416 2,208,916 495,513 229 % 204 % Total PRA Group $ 16,994,847 $ 36,431,954 $ 8,894,515 (1) Includes the acquisition date finance receivables portfolios that were acquired through our business acquisitions. (2) Non-U.S. amounts, including purchase price adjustments that occur throughout the life of a portfolio, are presented at the exchange rate at the end of the respective period of purchase. (3) Non-U.S. amounts are presented at the period-end exchange rate for the respective period of purchase. (4) Non-U.S. amounts are presented at the June 30, 2026 exchange rate. (5) Reflects all vintages in South America, Canada and Australia. Portfolio Financial Information (1) (in thousands) June 30, 2026 (year-to-date) As of June 30, 2026 Purchase Period Cash Collections (2) Portfolio Income (2) Changes in Expected Recoveries (2) Total Portfolio Revenue (2) Net Finance Receivables (3) U.S. Core 1996-2015 $ 20,689 $ 10,589 $ 6,121 $ 16,710 $ 29,450 2016 5,175 2,958 340 3,298 13,032 2017 10,193 6,227 (1,249) 4,978 25,041 2018 16,399 7,906 1,328 9,234 42,763 2019 12,951 6,560 (771) 5,789 30,599 2020 17,289 8,301 (1,029) 7,272 40,157 2021 19,667 9,619 (1,052) 8,567 54,296 2022 21,478 8,915 (4,280) 4,635 72,290 2023 75,573 34,498 (10,805) 23,693 216,652 2024 191,009 91,298 9,645 100,943 521,294 2025 133,216 84,546 1,459 86,005 474,993 2026 14,448 13,730 (632) 13,098 194,158 Subtotal 538,087 285,147 (925) 284,222 1,714,725 U.S. Insolvency 1996-2015 406 - 405 405 - 2016 59 2 38 40 11 2017 376 17 243 260 111 2018 270 4 211 215 33 2019 754 10 556 566 88 2020 880 94 168 262 1,186 2021 3,965 321 (384) (63) 3,053 2022 4,368 668 96 764 8,821 2023 9,447 1,999 343 2,342 29,679 2024 12,048 4,187 46 4,233 41,062 2025 8,432 5,485 (613) 4,872 55,943 2026 570 1,005 188 1,193 32,709 Subtotal 41,575 13,792 1,297 15,089 172,696 Total U.S. 579,662 298,939 372 299,311 1,887,421 Europe Core 2012-2015 61,643 33,175 63,974 97,149 180,405 2016 13,511 5,487 20,775 26,262 91,080 2017 7,298 2,534 3,658 6,192 52,160 2018 16,225 5,781 5,941 11,722 92,394 2019 28,033 9,302 17,828 27,130 188,972 2020 19,976 8,144 5,302 13,446 125,429 2021 28,007 12,137 6,374 18,511 199,304 2022 31,880 12,504 (1,447) 11,057 217,449 2023 42,435 17,442 21,478 38,920 279,253 2024 59,650 26,827 164 26,991 362,683 2025 69,949 34,057 (6,091) 27,966 430,938 2026 13,831 5,543 1,770 7,313 240,509 Subtotal 392,438 172,933 139,726 312,659 2,460,576 Europe Insolvency 2014-2015 162 - 162 162 - 2016 207 36 393 429 337 2017 332 18 748 766 610 2018 430 17 322 339 454 2019 1,399 158 586 744 3,111 2020 3,433 258 (6) 252 3,825 2021 5,687 470 1,798 2,268 7,025 2022 6,740 1,027 2,744 3,771 16,675 2023 8,348 1,644 6,984 8,628 29,984 2024 7,937 2,505 6,769 9,274 33,743 2025 2,987 1,378 610 1,988 19,038 2026 543 361 197 558 14,391 Subtotal 38,205 7,872 21,307 29,179 129,193 Total Europe 430,643 180,805 161,033 341,838 2,589,769 Other markets (4) 100,168 57,634 (20,595) 37,039 240,014 Total PRA Group $ 1,110,473 $ 537,378 $ 140,810 $ 678,188 $ 4,717,204 (1) Includes the nonperforming loan portfolios that were acquired through our business acquisitions. (2) Non-U.S. amounts are presented using the average exchange rates during the current reporting period. (3) Non-U.S. amounts are presented at the June 30, 2026 exchange rate. (4) Reflects all vintages in South America, Canada and Australia. Cash Collections by Year, By Year of Purchase (1) as of June 30, 2026 (in millions) Purchase Period Purchase Price (2)(3) 1996-2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 Total U.S. Core 1996-2015 $ 2,736.9 $ 5,186.4 $ 673.8 $ 479.4 $ 337.7 $ 230.9 $ 149.3 $ 98.2 $ 67.1 $ 51.7 $ 64.7 $ 53.6 $ 20.7 $ 7,413.5 2016 400.5 - 86.1 195.3 160.1 116.6 88.7 59.9 29.1 17.6 18.1 12.9 5.2 789.6 2017 511.9 - - 94.3 264.4 247.1 185.6 124.8 73.1 41.6 37.5 26.6 10.2 1105.2 2018 604.7 - - - 106.3 320.2 304.7 214.8 131.6 83.2 68.1 42.9 16.4 1288.2 2019 432.2 - - - - 93.4 282.2 237.4 141.7 86.1 61.8 37.3 13.0 952.9 2020 415.4 - - - - - 127.4 274.7 185.4 121.3 83.6 50.4 17.3 860.1 2021 339.9 - - - - - - 73.8 149.9 115.3 82.8 52.8 19.7 494.3 2022 275.4 - - - - - - - 34.9 102.4 87.8 58.5 21.5 305.1 2023 506.3 - - - - - - - - 63.5 211.8 185.9 75.6 536.8 2024 727.7 - - - - - - - - - 119.8 374.9 191.0 685.7 2025 531.0 - - - - - - - - - - 106.1 133.2 239.3 2026 195.7 - - - - - - - - - - - 14.3 14.3 Subtotal 7,677.6 5,186.4 759.9 769.0 868.5 1,008.2 1,137.9 1,083.6 812.8 682.7 836.0 1,001.9 538.1 14,685.0 U.S. Insolvency 1996-2015 1,472.4 2,290.4 230.4 142.6 78.6 39.1 13.6 4.5 2.9 1.8 1.4 1.0 0.4 2,806.7 2016 67.5 - 10.1 18.9 18.2 16.4 13.0 6.6 1.3 0.6 0.4 0.1 0.1 85.7 2017 275.3 - - 49.1 97.3 80.9 58.8 44.0 20.8 4.9 2.5 1.0 0.4 359.7 2018 97.9 - - - 6.7 27.4 30.5 31.6 24.6 12.7 2.5 1.0 0.3 137.3 2019 120.8 - - - - 13.4 30.9 37.9 36.8 28.0 14.2 2.7 0.8 164.7 2020 62.1 - - - - - 6.5 16.1 20.4 19.5 17.0 8.7 0.9 89.1 2021 54.9 - - - - - - 4.5 17.7 17.4 15.2 11.8 4.0 70.6 2022 33.4 - - - - - - - 3.2 9.2 11.1 10.5 4.4 38.4 2023 61.2 - - - - - - - - 4.5 14.8 18.0 9.4 46.7 2024 68.2 - - - - - - - - - 12.1 23.1 12.0 47.2 2025 59.1 - - - - - - - - - - 5.2 8.4 13.6 2026 32.3 - - - - - - - - - - - 0.5 0.5 Subtotal 2,405.1 2,290.4 240.5 210.6 200.8 177.2 153.3 145.2 127.7 98.6 91.2 83.1 41.6 3,860.2 Total U.S. 10,082.7 7,476.8 1,000.4 979.6 1,069.3 1,185.4 1,291.2 1,228.8 940.5 781.3 927.2 1,085.0 579.7 18,545.2 Europe Core 2012-2015 1,225.8 538.4 350.2 310.3 290.5 241.4 206.0 202.4 164.3 142.4 132.1 126.9 61.6 2,766.5 2016 333.1 - 40.4 78.9 72.6 58.0 48.3 46.7 36.9 29.7 27.4 27.1 13.5 479.5 2017 252.2 - - 17.9 56.0 44.1 36.1 34.8 25.2 20.2 17.9 15.7 7.3 275.2 2018 341.8 - - - 24.3 88.7 71.3 69.1 50.7 41.6 37.1 34.3 16.2 433.3 2019 518.6 - - - - 48.0 125.7 121.4 89.8 75.1 68.2 61.7 28.0 617.9 2020 324.1 - - - - - 32.3 91.7 69.0 56.1 50.1 45.1 20.0 364.3 2021 412.4 - - - - - - 48.5 89.9 73.0 66.6 59.7 28.0 365.7 2022 359.4 - - - - - - - 33.9 83.8 74.7 67.8 31.9 292.1 2023 410.6 - - - - - - - - 50.2 103.1 93.2 42.4 288.9 2024 451.9 - - - - - - - - - 46.3 135.6 59.7 241.6 2025 512.5 - - - - - - - - - - 57.1 69.9 127.0 2026 247.3 - - - - - - - - - - - 13.9 13.9 Subtotal 5,389.7 538.4 390.6 407.1 443.4 480.2 519.7 614.6 559.7 572.1 623.5 724.2 392.4 6,265.9 Europe Insolvency 2014-2015 29.9 7.3 8.3 8.2 7.4 5.4 3.7 1.9 0.8 0.6 0.4 0.3 0.2 44.5 2016 39.3 - 6.2 12.7 12.9 10.7 7.9 6.0 2.7 1.3 0.8 0.6 0.2 62.0 2017 39.2 - - 1.2 7.9 9.2 9.8 9.4 6.5 3.8 1.5 1.0 0.3 50.6 2018 44.9 - - - 0.6 8.4 10.3 11.7 9.8 7.2 3.5 1.4 0.4 53.3 2019 77.2 - - - - 5.0 21.1 23.9 21.0 17.5 12.9 6.1 1.4 108.9 2020 105.4 - - - - - 6.0 34.6 34.1 29.7 25.5 15.5 3.4 148.8 2021 53.2 - - - - - - 5.5 14.4 14.7 15.4 14.6 5.7 70.3 2022 44.6 - - - - - - - 4.5 12.4 15.2 15.2 6.7 54.0 2023 46.7 - - - - - - - - 4.2 12.7 15.7 8.3 40.9 2024 43.4 - - - - - - - - - 9.5 15.2 7.9 32.6 2025 20.8 - - - - - - - - - - 1.9 3.0 4.9 2026 14.4 - - - - - - - - - - - 0.7 0.7 Subtotal 559.0 7.3 14.5 22.1 28.8 38.7 58.8 93.0 93.8 91.4 97.4 87.5 38.2 671.5 Total Europe 5,948.7 545.7 405.1 429.2 472.2 518.9 578.5 707.6 653.5 663.5 720.9 811.7 430.6 6,937.4 Other markets (3) 963.4 33.9 86.5 103.9 83.7 137.0 135.9 125.4 135.0 215.9 220.5 210.7 100.2 1,588.6 Total PRA Group $ 16,994.8 $ 8,056.4 $ 1,492.0 $ 1,512.7 $ 1,625.2 $ 1,841.3 $ 2,005.6 $ 2,061.8 $ 1,729.0 $ 1,660.7 $ 1,868.6 $ 2,107.4 $ 1,110.5 $ 27,071.2 (1) Non-U.S. amounts are presented at the average exchange rates during the cash collections period. (2) Includes the acquisition date finance receivables portfolios acquired through our business acquisitions. (3) Non-U.S. amounts, including purchase price adjustments that occur throughout the life of a portfolio, are presented at the exchange rate at the end of the respective period of purchase. (4) Reflects all vintages in South America, Canada and Australia. 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 the non-GAAP financial measures referred to below, internally to evaluate the Company's performance and to set performance goals. Management believes these non-GAAP financial measures are useful to investors in evaluating the Company's performance and operational effectiveness and provide for greater comparability. These non-GAAP financial measures should not be considered as an alternative to the most directly comparable financial measure determined in accordance with GAAP and may not be comparable to the calculation of similarly titled financial measures reported by other companies. Included below are reconciliations of the non-GAAP financial measures to the most directly comparable financial measures calculated in accordance with GAAP. Adjusted EBITDA The Company presents Adjusted EBITDA because the Company considers it an important supplemental measure of its operational and financial performance. Adjusted EBITDA is calculated as Net loss attributable to PRA Group, Inc. plus Income tax expense; less Foreign exchange gain; plus Interest expense, net; plus Other expense; plus Depreciation and amortization; plus Impairment of real estate; plus Goodwill impairment; plus Net income attributable to noncontrolling interests; less Gain on sale of equity method investment; and plus Recoveries collected and applied to Finance receivables, net less Changes in expected recoveries. Management believes Adjusted EBITDA helps provide enhanced period-to-period comparability of the Company's operational and financial performance as it excludes certain items whose fluctuations from period-to-period do not necessarily correspond to changes in the operations of the Company's business and is useful to investors as other companies in the industry report similar financial measures. The following table provides a reconciliation of Net loss attributable to PRA Group, Inc. to Adjusted EBITDA for the last twelve months (LTM) ended June 30, 2026 and for the year ended December 31, 2025. LTM Year Ended Adjusted EBITDA Reconciliation ($ in thousands) June 30, 2026 December 31, 2025 Net loss attributable to PRA Group, Inc. $ (265,048) $ (305,142) Adjustments: Income tax expense 65,157 46,735 Foreign exchange gain (1,309) (755) Interest expense, net 256,338 251,788 Other expense 427 336 Depreciation and amortization 7,188 9,035 Impairment of real estate 3,411 1,404 Goodwill impairment 412,611 412,611 Net income attributable to noncontrolling interests 11,010 15,168 Gain on sale of equity method investment - (38,403) Recoveries collected and applied to Finance receivables, net less Changes in expected recoveries 869,128 922,697 Adjusted EBITDA $ 1,358,913 $ 1,315,474 Adjusted net income attributable to PRA, ROATE and Adjusted ROATE The Company uses Net income attributable to PRA Group, Inc. excluding the impact of certain transactions that are unusual or infrequent in nature and not reflective of our ongoing operations ("Adjusted net income attributable to PRA") to monitor and evaluate our operating performance and allow for better comparability. Management believes Adjusted net income attributable to PRA is a useful financial measure for investors in evaluating our operating results. Adjusted net income attributable to PRA is calculated as Net income attributable to PRA Group, Inc. excluding the impact of certain transactions that are unusual or infrequent in nature and not reflective of our ongoing operations. In addition, the Company uses return on average tangible equity ("ROATE") to monitor and evaluate operating performance relative to the Company's equity. Management believes ROATE is a useful financial measure for investors in evaluating the effective use of equity, and is an important component of its long-term shareholder return. ROATE is calculated by dividing annualized Net income attributable to PRA Group, Inc. by average Total stockholders' equity - PRA Group, Inc. less average goodwill and average other intangible assets ("Average tangible equity"). ROATE may include certain items that are not indicative of the ongoing operating results of the Company's business. Accordingly, the Company also uses Adjusted ROATE to monitor and evaluate operating performance relative to the Company's equity. Management believes that Adjusted ROATE is a useful financial measure for investors because it is based on Adjusted net income attributable to PRA. Adjusted ROATE is calculated by dividing annualized Adjusted net income attributable to PRA by average tangible equity. Return on equity ("ROE") is calculated by dividing Net income attributable to PRA Group, Inc. by average Total stockholders' equity - PRA Group, Inc. The following table provides a reconciliation of Total stockholders' equity - PRA Group, Inc. as reported in accordance with GAAP to Average tangible equity, a reconciliation of Net income attributable to PRA Group, Inc. to Adjusted net income attributable to PRA Group, Inc., and provides our ROE, ROATE and Adjusted ROATE for the periods indicated (in thousands, except for ratio data): Average Tangible Equity Reconciliation (1) Balance as of Period End Second Quarter Year-to-Date June 30, 2026 June 30, 2025 2026 2025 2026 2025 Total stockholders' equity - PRA Group, Inc. $ 1,045,469 $ 1,336,925 $ 1,023,879 $ 1,278,016 $ 1,009,202 $ 1,230,355 Goodwill 26,871 439,449 26,871 430,082 26,871 418,840 Other intangible assets 1,282 1,541 1,313 1,515 1,354 1,494 Average tangible equity $ 995,695 $ 846,419 $ 980,977 $ 810,021 ROE and ROATE (2) Second Quarter Year-to-Date 2026 2025 2026 2025 Net income attributable to PRA Group, Inc. $ 57,917 $ 42,374 $ 86,127 $ 46,033 Return on equity 22.6 % 13.3 % 17.1 % 7.5 % Return on average tangible equity 23.3 % 20.0 % 17.6 % 11.4 % Adjusted Net Income Attributable to PRA Group, Inc. Reconciliation and Adjusted ROATE (3) Second Quarter Year-to-Date 2026 2025 2026 2025 Net income attributable to PRA Group, Inc. $ 57,917 $ 42,374 $ 86,127 $ 46,033 Gain on sale of equity method investment - (38,403) - (38,403) Tax effect of adjusting items (4) - 8,717 - 8,717 Adjusted net income attributable to PRA Group, Inc. $ 57,917 $ 12,688 $ 86,127 $ 16,347 Adjusted ROATE 23.3 % 6.0 % 17.6 % 4.0 % Investor Contact: Najim Mostamand, CFA Vice President, Investor Relations 757-431-7913 [email protected] (1) Amounts represent the average balances for the respective periods. (2) Based on annualized Net income attributable to PRA Group, Inc. (3) Based on annualized Adjusted net income attributable to PRA Group, Inc. (4) Based on the annual effective tax rate and pretax income excluding the effect of the adjusting items. SOURCE PRA Group, Inc.

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