PRA Group Reports First Quarter 2026 Results
Strong Start to the Year with 11% Cash Collections Growth and Net Income of $28 Million
Continued Momentum in U.S. Business with Strong Results in Europe
On Track with PRA 3.0 Strategy to Drive Enhanced Results
NORFOLK, Va., May 7, 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 first quarter of 2026 ("Q1 2026").
Q1 2026 Highlights (vs. Q1 2025)
1.
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.
2.
A reconciliation of net income attributable to PRA Group, Inc. to Adjusted EBITDA can be found at the end of this press release.
3.
Refers to the sum of all future projected cash collections on the Company's nonperforming loan portfolios.
"We had a strong start to 2026, building on the success we achieved last year with continued improvement in our key financial and operational metrics," said Martin Sjolund, president and chief executive officer. "Cash collections grew 11% from the prior-year period, driven by the continued momentum of our operational initiatives, especially in the U.S. legal collections channel, which was supplemented by strong performance in Europe. Our cash efficiency ratio improved to 62%, even with the increase in legal collection costs to support future collections growth. Net income increased to $28 million and Adjusted EBITDA for the last twelve months was up 14%, growing faster than cash collections, as we continued to gain operating leverage."
"Overall, Q1 was another solid quarter, with strong execution across several operational initiatives and improved financial results. Looking ahead to the rest of the year, we plan to continue making progress on our new PRA 3.0 strategy, including modernizing our technology platforms and innovating with our new mobile app in the UK and global AI initiatives. We believe we are in a strong position to continue delivering enhanced results and value for our shareholders, as we transform PRA into a high-performing, technology-enabled global allocator of capital."
Cash Collections and Revenues
The following table presents cash collections by quarter and by source, as reported and on a constant currency-adjusted basis:
Cash Collection Source
2026
2025
($ in thousands)
Q1
Q4
Q3
Q2
Q1
U.S. Core
$ 268,409
$ 249,322
$ 258,277
$ 253,856
$ 240,467
U.S. Insolvency
20,141
20,223
21,131
21,175
20,589
Europe Core
192,019
188,277
185,910
185,652
164,371
Europe Insolvency
20,547
19,166
22,658
24,609
21,205
Other markets (1)
50,812
54,670
54,268
50,996
50,804
Total cash collections
$ 551,928
$ 531,658
$ 542,244
$ 536,288
$ 497,436
Cash Collection Source -
Constant Currency-Adjusted
2026
2025
($ in thousands)
Q1
Q1
U.S. Core
$ 268,409
$ 240,467
U.S. Insolvency
20,141
20,589
Europe Core
192,019
180,408
Europe Insolvency
20,547
22,720
Other markets (1)
50,812
55,931
Total cash collections
$ 551,928
$ 520,115
1.
Reflects total cash collections in South America, Canada and Australia.
Three Months Ended March 31,
($ in thousands)
2026
2025
Portfolio income
$ 269,579
$ 240,958
Recoveries collected in excess of forecast
22,698
16,500
Changes in expected future recoveries
21,188
11,422
Changes in expected recoveries
43,886
27,922
Total portfolio revenue
$ 313,465
$ 268,880
Expenses
Portfolio Purchases
Portfolio Purchase Source
2026
2025
($ in thousands)
Q1
Q4
Q3
Q2
Q1
U.S. Core
$ 105,469
$ 102,254
$ 119,672
$ 160,193
$ 148,903
U.S. Insolvency
13,043
10,088
14,809
22,134
12,059
Europe Core
86,715
152,375
95,239
142,465
108,390
Europe Insolvency
4,837
4,758
5,934
4,757
4,856
Other markets (1)
10,786
45,326
19,838
16,956
17,494
Total portfolio purchases
$ 220,850
$ 314,801
$ 255,492
$ 346,505
$ 291,702
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
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 May 7, 2027, or call 646-517-4150 in the U.S. or 1-888-660-6345 outside the U.S. and use access code 86103# until May 14, 2026.
About PRA Group, Inc.
As a global leader in acquiring and collecting nonperforming loan portfolios, PRA Group, Inc. returns capital to banks and other creditors to help expand financial services for consumers in the Americas, Europe and Australia. With thousands of employees worldwide, PRA Group, Inc. companies collaborate with customers to help them resolve their debt. 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
March 31,
2026
2025
Revenues
Portfolio income
$ 269,579
$ 240,958
Changes in expected recoveries
43,886
27,922
Total portfolio revenue
313,465
268,880
Other revenue
1,068
739
Total revenues
314,533
269,619
Operating expenses
Compensation and benefits
70,738
73,323
Legal collection costs
48,458
33,394
Legal collection fees
17,071
15,230
Agency fees
24,581
21,368
Professional and outside services
20,884
21,103
Communication
9,019
10,477
Rent and occupancy
3,258
3,480
Depreciation, amortization and impairment of long-lived assets
1,708
3,769
Other operating expenses
15,562
12,898
Total operating expenses
211,279
195,042
Income from operations
103,254
74,577
Other income/(expense)
Interest expense, net
(63,518)
(60,970)
Foreign exchange gain/(loss), net
1,054
(51)
Other
(254)
(180)
Income before income taxes
40,536
13,376
Income tax expense
8,764
4,312
Net income
31,772
9,064
Net income attributable to noncontrolling interests
3,562
5,405
Net income attributable to PRA Group, Inc.
$ 28,210
$ 3,659
Net income per common share attributable to PRA Group, Inc.
Basic
$ 0.74
$ 0.09
Diluted
$ 0.73
$ 0.09
Weighted average number of shares outstanding
Basic
38,368
39,549
Diluted
38,511
39,688
PRA Group, Inc.
Consolidated Balance Sheets
(Amounts in thousands)
(unaudited)
March 31,
2026
December 31,
2025
ASSETS
Cash and cash equivalents
$ 124,778
$ 104,409
Investments
143,358
66,628
Finance receivables, net
4,637,094
4,688,024
Income taxes receivable
15,700
17,702
Deferred tax assets, net
70,914
76,955
Right-of-use assets
28,715
29,206
Property and equipment, net
24,567
24,886
Goodwill
26,871
26,871
Prepaid expenses and other assets
134,833
68,641
Total assets
$ 5,206,830
$ 5,103,322
LIABILITIES AND EQUITY
Liabilities
Accrued expenses and accounts payable
$ 100,483
$ 131,812
Income taxes payable
30,083
29,845
Deferred tax liabilities, net
18,733
17,064
Lease liabilities
31,595
32,160
Interest-bearing deposits
78,740
106,148
Borrowings
3,779,167
3,697,338
Other liabilities
99,475
48,990
Total liabilities
4,138,276
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, 38,141 shares issued and
outstanding as of March 31, 2026; 100,000 shares authorized, 38,453 shares issued and
outstanding as of December 31, 2025
381
385
Additional paid-in capital
3,289
11,474
Retained earnings
1,283,217
1,255,007
Accumulated other comprehensive loss
(284,599)
(287,015)
Total stockholders' equity - PRA Group, Inc.
1,002,288
979,851
Noncontrolling interests
66,266
60,114
Total equity
1,068,554
1,039,965
Total liabilities and equity
$ 5,206,830
$ 5,103,322
Purchase Price Multiples
as of March 31, 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
$ 7,505,108
$ 94,785
274 %
224 %
2016
400,545
819,619
32,606
205 %
195 %
2017
511,902
1,168,721
68,438
228 %
193 %
2018
604,669
1,373,598
93,421
227 %
199 %
2019
432,222
1,017,206
70,674
235 %
209 %
2020
415,384
940,628
88,849
226 %
215 %
2021
339,885
603,675
118,686
178 %
191 %
2022
275,433
435,742
140,794
158 %
164 %
2023
506,319
947,969
447,691
187 %
191 %
2024
727,672
1,679,170
1,085,766
231 %
211 %
2025
531,021
1,144,614
975,398
216 %
216 %
2026
105,469
212,526
209,118
202 %
202 %
Subtotal
7,587,396
17,848,576
3,426,226
U.S. Insolvency
1996-2015
1,472,385
2,806,689
—
191 %
154 %
2016
67,454
85,669
21
127 %
124 %
2017
275,257
359,605
182
131 %
125 %
2018
97,879
137,302
59
140 %
127 %
2019
120,845
164,398
174
136 %
128 %
2020
62,130
90,300
1,584
145 %
136 %
2021
54,898
74,136
5,237
135 %
136 %
2022
33,442
47,860
11,718
143 %
139 %
2023
61,242
80,321
38,358
131 %
136 %
2024
68,168
99,364
58,508
146 %
149 %
2025
59,091
93,168
84,236
158 %
160 %
2026
13,043
20,891
20,790
160 %
160 %
Subtotal
2,385,834
4,059,703
220,867
Total U.S.
9,973,230
21,908,279
3,647,093
Europe Core
2012-2015
1,225,893
3,516,570
478,195
287 %
190 %
2016
333,090
601,998
142,105
181 %
167 %
2017
252,174
366,501
77,563
145 %
144 %
2018
341,775
574,229
151,942
168 %
148 %
2019
518,610
888,852
272,541
171 %
152 %
2020
324,119
609,550
212,981
188 %
172 %
2021
412,411
732,470
338,322
178 %
170 %
2022
359,447
600,333
370,631
167 %
162 %
2023
410,593
709,805
464,760
173 %
169 %
2024
451,786
821,118
685,317
182 %
180 %
2025
512,533
951,214
843,307
186 %
185 %
2026
85,057
157,440
154,812
185 %
185 %
Subtotal
5,227,488
10,530,080
4,192,476
Europe Insolvency
2014-2015
29,849
49,058
—
164 %
135 %
2016
39,338
58,616
440
149 %
130 %
2017
39,235
53,074
402
135 %
128 %
2018
44,908
53,386
543
119 %
123 %
2019
77,218
114,419
3,630
148 %
130 %
2020
105,440
162,032
5,399
154 %
129 %
2021
53,230
81,302
8,945
153 %
134 %
2022
44,604
66,962
20,325
150 %
137 %
2023
46,558
67,060
32,053
144 %
138 %
2024
43,459
64,128
38,821
148 %
147 %
2025
20,760
30,329
26,435
146 %
145 %
2026
4,752
7,346
7,301
155 %
155 %
Subtotal
549,351
807,712
144,294
Total Europe
5,776,839
11,337,792
4,336,770
Other markets (5)
951,094
2,229,871
564,685
234 %
204 %
Total PRA Group
$ 16,701,163
$ 35,475,942
$ 8,548,548
(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 March 31, 2026 exchange rate.
(5)
Reflects all vintages in South America, Canada and Australia.
Portfolio Financial Information (1)
(in thousands)
March 31, 2026 (year-to-date)
As of March 31, 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
$ 10,384
$ 5,487
$ 2,695
$ 8,182
$ 31,227
2016
2,583
1,544
(84)
1,460
13,786
2017
5,257
3,270
(775)
2,495
27,494
2018
8,281
4,151
(418)
3,733
45,382
2019
6,631
3,457
(608)
2,849
33,983
2020
9,056
4,407
(982)
3,425
44,546
2021
10,372
5,050
(486)
4,564
59,591
2022
11,381
4,636
309
4,945
82,701
2023
39,177
18,207
(5,753)
12,454
241,850
2024
98,754
47,239
14,278
61,517
574,230
2025
63,125
43,364
(2,313)
41,051
500,322
2026
3,408
2,796
140
2,936
104,934
Subtotal
268,409
143,608
6,003
149,611
1,760,046
U.S. Insolvency
1996-2015
235
—
234
234
—
2016
39
1
26
27
19
2017
189
10
112
122
160
2018
134
2
100
102
57
2019
430
6
316
322
168
2020
544
52
86
138
1,401
2021
2,231
191
(97)
94
4,943
2022
2,184
362
(45)
317
10,557
2023
4,590
1,054
(33)
1,021
33,215
2024
5,709
2,188
(318)
1,870
45,042
2025
3,753
2,800
(857)
1,943
57,786
2026
103
143
41
184
13,117
Subtotal
20,141
6,809
(435)
6,374
166,465
Total U.S.
288,550
150,417
5,568
155,985
1,926,511
Europe Core
2012-2015
29,774
16,872
7,948
24,820
141,516
2016
6,773
2,758
5,129
7,887
80,998
2017
3,812
1,290
502
1,792
51,383
2018
7,984
2,910
3,002
5,912
95,137
2019
14,181
4,758
1,506
6,264
183,088
2020
9,918
4,154
1,275
5,429
128,550
2021
14,216
6,146
1,182
7,328
204,281
2022
15,933
6,390
2,068
8,458
233,121
2023
21,308
8,862
4,282
13,144
277,845
2024
29,869
13,672
3,368
17,040
385,315
2025
35,581
17,411
240
17,651
458,722
2026
2,670
937
723
1,660
83,953
Subtotal
192,019
86,160
31,225
117,385
2,323,909
Europe Insolvency
2014-2015
98
—
98
98
—
2016
124
18
102
120
115
2017
176
8
230
238
242
2018
227
10
93
103
424
2019
809
88
(30)
58
3,003
2020
2,039
150
(11)
139
5,075
2021
3,682
263
1,236
1,499
8,218
2022
3,659
542
1,138
1,680
17,622
2023
4,222
863
751
1,614
27,020
2024
4,003
1,307
194
1,501
29,818
2025
1,463
700
229
929
19,481
2026
45
35
33
68
4,747
Subtotal
20,547
3,984
4,063
8,047
115,765
Total Europe
212,566
90,144
35,288
125,432
2,439,674
Other markets (4)
50,812
29,018
3,030
32,048
270,909
Total PRA Group
$ 551,928
$ 269,579
$ 43,886
$ 313,465
$ 4,637,094
(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 March 31, 2026 exchange rate.
(4)
Reflects all vintages in South America, Canada and Australia.
Cash Collections by Year, By Year of Purchase (1)
as of March 31, 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
$ 10.4
$ 7,403.2
2016
400.5
—
86.1
195.3
160.1
116.6
88.7
59.9
29.1
17.6
18.1
12.9
2.6
787.0
2017
511.9
—
—
94.3
264.4
247.1
185.6
124.8
73.1
41.6
37.5
26.6
5.3
1100.3
2018
604.7
—
—
—
106.3
320.2
304.7
214.8
131.6
83.2
68.1
42.9
8.3
1280.1
2019
432.2
—
—
—
—
93.4
282.2
237.4
141.7
86.1
61.8
37.3
6.6
946.5
2020
415.4
—
—
—
—
—
127.4
274.7
185.4
121.3
83.6
50.4
9.1
851.9
2021
339.9
—
—
—
—
—
—
73.8
149.9
115.3
82.8
52.8
10.4
485.0
2022
275.4
—
—
—
—
—
—
—
34.9
102.4
87.8
58.5
11.4
295.0
2023
506.3
—
—
—
—
—
—
—
—
63.5
211.8
185.9
39.2
500.4
2024
727.7
—
—
—
—
—
—
—
—
—
119.8
374.9
98.8
593.5
2025
531.0
—
—
—
—
—
—
—
—
—
—
106.1
63.1
169.2
2026
105.5
—
—
—
—
—
—
—
—
—
—
—
3.2
3.2
Subtotal
7,587.4
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
268.4
14,415.3
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
0.2
2,806.5
2016
67.5
—
10.1
18.9
18.2
16.4
13.0
6.6
1.3
0.6
0.4
0.1
—
85.6
2017
275.3
—
—
49.1
97.3
80.9
58.8
44.0
20.8
4.9
2.5
1.0
0.2
359.5
2018
97.9
—
—
—
6.7
27.4
30.5
31.6
24.6
12.7
2.5
1.0
0.1
137.1
2019
120.8
—
—
—
—
13.4
30.9
37.9
36.8
28.0
14.2
2.7
0.4
164.3
2020
62.1
—
—
—
—
—
6.5
16.1
20.4
19.5
17.0
8.7
0.5
88.7
2021
54.9
—
—
—
—
—
—
4.5
17.7
17.4
15.2
11.8
2.2
68.8
2022
33.4
—
—
—
—
—
—
—
3.2
9.2
11.1
10.5
2.2
36.2
2023
61.2
—
—
—
—
—
—
—
—
4.5
14.8
18.0
4.6
41.9
2024
68.2
—
—
—
—
—
—
—
—
—
12.1
23.1
5.7
40.9
2025
59.1
—
—
—
—
—
—
—
—
—
—
5.2
3.8
9.0
2026
13.0
—
—
—
—
—
—
—
—
—
—
—
0.2
0.2
Subtotal
2,385.8
2,290.4
240.5
210.6
200.8
177.2
153.3
145.2
127.7
98.6
91.2
83.1
20.1
3,838.7
Total U.S.
9,973.2
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
288.5
18,254.0
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
29.8
2,734.7
2016
333.1
—
40.4
78.9
72.6
58.0
48.3
46.7
36.9
29.7
27.4
27.1
6.8
472.8
2017
252.2
—
—
17.9
56.0
44.1
36.1
34.8
25.2
20.2
17.9
15.7
3.8
271.7
2018
341.8
—
—
—
24.3
88.7
71.3
69.1
50.7
41.6
37.1
34.3
8.0
425.1
2019
518.6
—
—
—
—
48.0
125.7
121.4
89.8
75.1
68.2
61.7
14.2
604.1
2020
324.1
—
—
—
—
—
32.3
91.7
69.0
56.1
50.1
45.1
9.9
354.2
2021
412.4
—
—
—
—
—
—
48.5
89.9
73.0
66.6
59.7
14.2
351.9
2022
359.4
—
—
—
—
—
—
—
33.9
83.8
74.7
67.8
15.9
276.1
2023
410.6
—
—
—
—
—
—
—
—
50.2
103.1
93.2
21.3
267.8
2024
451.9
—
—
—
—
—
—
—
—
—
46.3
135.6
29.9
211.8
2025
512.5
—
—
—
—
—
—
—
—
—
—
57.1
35.6
92.7
2026
85.1
—
—
—
—
—
—
—
—
—
—
—
2.6
2.6
Subtotal
5,227.5
538.4
390.6
407.1
443.4
480.2
519.7
614.6
559.7
572.1
623.5
724.2
192.0
6,065.5
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
0.1
44.4
2016
39.3
—
6.2
12.7
12.9
10.7
7.9
6.0
2.7
1.3
0.8
0.6
0.1
61.9
2017
39.2
—
—
1.2
7.9
9.2
9.8
9.4
6.5
3.8
1.5
1.0
0.2
50.5
2018
44.9
—
—
—
0.6
8.4
10.3
11.7
9.8
7.2
3.5
1.4
0.2
53.1
2019
77.2
—
—
—
—
5.0
21.1
23.9
21.0
17.5
12.9
6.1
0.8
108.3
2020
105.4
—
—
—
—
—
6.0
34.6
34.1
29.7
25.5
15.5
2.0
147.4
2021
53.2
—
—
—
—
—
—
5.5
14.4
14.7
15.4
14.6
3.7
68.3
2022
44.6
—
—
—
—
—
—
—
4.5
12.4
15.2
15.2
3.7
51.0
2023
46.7
—
—
—
—
—
—
—
—
4.2
12.7
15.7
4.2
36.8
2024
43.4
—
—
—
—
—
—
—
—
—
9.5
15.2
4.0
28.7
2025
20.8
—
—
—
—
—
—
—
—
—
—
1.9
1.5
3.4
2026
4.8
—
—
—
—
—
—
—
—
—
—
—
—
—
Subtotal
549.4
7.3
14.5
22.1
28.8
38.7
58.8
93.0
93.8
91.4
97.4
87.5
20.5
653.8
Total Europe
5,776.9
545.7
405.1
429.2
472.2
518.9
578.5
707.6
653.5
663.5
720.9
811.7
212.5
6,719.3
Other markets (3)
951.1
33.9
86.5
103.9
83.7
137.0
135.9
125.4
135.0
215.9
220.5
210.7
50.9
1,539.3
Total PRA Group
$ 16,701.2
$ 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
$ 551.9
$ 26,512.6
(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. Included below are reconciliations of the most directly comparable financial measures calculated in accordance with GAAP to the corresponding non-GAAP financial measure. The non-GAAP financial measures included below should not be considered as an alternative to the most directly comparable financial measure determined in accordance with GAAP. The calculation of the non-GAAP financial measures included below may not be comparable to the calculation of similarly titled financial measures reported by other companies.
Adjusted EBITDA
Adjusted EBITDA is calculated as net income (or loss) attributable to PRA Group, Inc. plus income tax expense (or less income tax benefit); less foreign exchange gain (or plus foreign exchange loss); 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.
The Company presents Adjusted EBITDA because the Company considers it an important supplemental measure of its operational and financial performance. Management believes Adjusted EBITDA helps provide enhanced period-to-period comparability of the Company's operational and financial performance and is useful to investors as other companies in the industry report similar financial measures.
Set forth below is a reconciliation of net loss attributable to PRA Group, Inc. to Adjusted EBITDA for the last twelve months (LTM) ended March 31, 2026 and for the year ended December 31, 2025.
LTM
Year Ended
Adjusted EBITDA Reconciliation ($ in thousands)
March 31, 2026
December 31, 2025
Net loss attributable to PRA Group, Inc.
$ (280,591)
$ (305,142)
Adjustments:
Income tax expense
51,187
46,735
Foreign exchange gain
(1,860)
(755)
Interest expense, net
254,336
251,788
Other expense
410
336
Depreciation and amortization
7,805
9,035
Impairment of real estate
573
1,404
Goodwill impairment
412,611
412,611
Net income attributable to noncontrolling interests
13,325
15,168
Gain on sale of equity method investment
(38,403)
(38,403)
Recoveries collected and applied to Finance receivables, net less
Changes in expected recoveries
929,206
922,697
Adjusted EBITDA
$ 1,348,599
$ 1,315,474
ROATE
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. Average tangible equity is defined as average Total stockholders' equity - PRA Group, Inc. less average goodwill and average other intangible assets. ROATE is calculated by dividing Net income attributable to PRA Group, Inc. by Average tangible equity. Return on equity ("ROE") is calculated by 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 and provides the Company's ROE and ROATE for the periods indicated (in thousands, except for ratio data):
Average Tangible Equity
Reconciliation (1)
Balance as of Period End
First Quarter
March 31, 2026
March 31, 2025
2026
2025
Total stockholders' equity - PRA Group, Inc.
$ 1,002,288
$ 1,219,108
$ 991,068
$ 1,177,070
Goodwill
26,871
420,715
26,871
408,536
Other intangible assets
1,344
1,488
1,390
1,471
Average tangible equity
$ 962,807
$ 767,063
ROE and ROATE (2)
First Quarter
2026
2025
Net income attributable to PRA Group, Inc.
$ 28,210
$ 3,659
Return on equity
11.4 %
1.2 %
Return on average tangible equity
11.7 %
1.9 %
1.
Amounts represent the average balances for the respective periods.
2.
Based on annualized Net income attributable to PRA Group, Inc.
Investor Contact:
Najim Mostamand, CFA
Vice President, Investor Relations
757-431-7913
[email protected]
SOURCE PRA Group, Inc.