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PRA Group Reports Third Quarter 2026 Results

Continued Execution of PRA 3.0 Strategy Delivering Results and Building a Stronger Foundation for Long-Term Returns

$15M of Net Income Attributable to PRA Group, Inc.

NORFOLK, Va., November 5, 2026 - PRA Group, Inc. (Nasdaq: PRAA) (the "Company"), a global leader in acquiring and collecting nonperforming loans, today reported its financial results for the third quarter of 2026 ("Q3 2026").

Q3 2026 Highlights (vs. Q3 2025)
•Total cash collections of $536 million.
•Cash efficiency ratio1 of 63%. Adjusted cash efficiency ratio1 of 63%, an improvement of 200+ basis points, reflecting disciplined cost management.
•Portfolio income of $271 million, up 5%.
•Net income attributable to PRA Group, Inc. of $15 million, or diluted earnings per share of $0.39.
•Adjusted EBITDA2 for the twelve months ended September 30, 2026 of $1.4 billion, up 9%.
•Total portfolio purchases of $229 million, reflecting continued discipline in deploying capital toward opportunities meeting targeted return thresholds.
•Estimated remaining collections (ERC)3 of $8.8 billion, up 5%.

"Building on the positive momentum generated over the past year, we continued to execute against our PRA 3.0 strategy during the third quarter," said Martin Sjolund, President and Chief Executive Officer. "We generated healthy cash collections, grew portfolio income, lowered operating expenses, and continued making disciplined portfolio investments, while achieving meaningful operational progress across many of our strategic initiatives."

"During the quarter, our adjusted cash efficiency ratio also improved by more than 200 basis points and Adjusted EBITDA continued to grow, reflecting the operating leverage we are beginning to realize from our cost reduction actions and broader PRA 3.0 initiatives. At the same time, we continued to invest in the business through our legal collections channel and technology modernization efforts, while maintaining a disciplined approach to capital deployment focused on attractive net returns in a healthy supply environment."

"We also strengthened the foundation of the business through the issuance of $400 million in aggregate principal amount of senior notes due 2033 shortly after the quarter ended, further enhancing our funding flexibility and extending our debt maturity profile. I am pleased with the progress we have made since launching our PRA 3.0 strategy. We believe we are on a good trajectory and that our technology modernization and significant investments in legal will strengthen the business in the years to come."

1.Cash efficiency ratio is 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. Adjusted cash efficiency ratio, which is a non-GAAP financial measure, is calculated by dividing cash receipts less operating expenses, excluding goodwill impairment, by cash receipts. A calculation of the adjusted cash efficiency ratio can be found at the end of this press release.
2.Adjusted EBITDA is a non-GAAP financial measure. A reconciliation of net income/(loss) 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.

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 Source20262025
($ in thousands)Q3Q2Q1Q4Q3
U.S. Core$254,866 $269,678 $268,409 $249,322 $258,277 
U.S. Insolvency19,936 21,434 20,141 20,223 21,131 
Europe Core195,478 200,420 192,019 188,277 185,910 
Europe Insolvency17,574 17,658 20,547 19,166 22,658 
Other markets (1)
47,789 49,355 50,812 54,670 54,268 
Total cash collections$535,643 $558,545 $551,928 $531,658 $542,244 
Cash Collection Source -
Constant Currency-Adjusted20262025
($ in thousands)Q3Q3
U.S. Core$254,866 $258,277 
U.S. Insolvency19,936 21,131 
Europe Core195,478 184,788 
Europe Insolvency17,574 22,577 
Other markets (1)
47,789 58,108 
Total cash collections$535,643 $544,881 

•Total cash collections in Q3 2026 were $536 million, compared to $542 million in the third quarter of 2025 ("Q3 2025"). Growth in U.S. legal cash collections, coupled with continued growth in digital collections and Europe cash collections, partially offset decreases in other areas of the business.

Three Months Ended Sept 30,
($ in thousands)20262025
Portfolio income$270,779 $258,549 
Recoveries collected in excess of forecast6,486 27,351 
Changes in expected future recoveries 7,821 24,007 
Changes in expected recoveries14,307 51,358 
Total portfolio revenue$285,086 $309,907 

•Total portfolio revenue in Q3 2026 decreased 8% to $285 million, compared to $310 million in Q3 2025. The decrease reflects lower Changes in expected recoveries compared to the prior year, partially offset by higher Portfolio income.
•Portfolio income in Q3 2026 increased 5% to $271 million, compared to $259 million in Q3 2025, driven by recent purchases in Europe.
•Changes in expected recoveries in Q3 2026 totaled $14 million, compared to $51 million in Q3 2025. The year-over-year decline was driven, in part, by actions taken by the Company in recent quarters to enhance its cash collection projections. This included a $349 million increase in Europe ERC as part of the Company's comprehensive portfolio review completed in the second quarter of 2026.
1.Reflects total cash collections in South America, Canada and Australia.


Expenses
•Operating expenses decreased $426 million to $200 million, compared to $627 million in Q3 2025, which included a $413 million non-cash goodwill impairment charge.
•Adjusted operating expenses, which excludes the non-cash goodwill impairment charge, decreased $14 million to $200 million, compared with $214 million in Q3 2025, driven primarily by lower Compensation and benefits expense.
◦Compensation and benefits expense decreased $8 million, reflecting workforce reduction actions, organizational simplification efforts, and other cost initiatives implemented as part of the Company's PRA 3.0 strategy.
•Interest expense, net in Q3 2026 was $64 million, relatively unchanged from Q3 2025.
•The effective tax rate for the quarter was 16%.

Portfolio Purchases
Portfolio Purchase Source20262025
($ in thousands)Q3Q2Q1Q4Q3
U.S. Core$68,387 $90,227 $105,469 $102,254 $119,672 
U.S. Insolvency23,891 19,220 13,043 10,088 14,809 
Europe Core106,661 164,620 86,715 152,375 95,239 
Europe Insolvency23,279 9,817 4,837 4,758 5,934 
Other markets (1)
6,527 12,687 10,786 45,326 19,838 
Total portfolio purchases$228,745 $296,571 $220,850 $314,801 $255,492 

•The Company purchased $229 million in portfolios of nonperforming loans in Q3 2026. Consistent with its disciplined capital allocation approach, the Company remained focused on opportunities that met its return requirements across its global markets.
•At the end of Q3 2026, the Company had in place estimated forward flow commitments2 of $438 million over the next 12 months, comprised of $175 million in Europe, $247 million in the U.S., and $16 million in other markets.

Credit Availability and Funding Position
•Total availability under the Company's credit facilities as of September 30, 2026 was $1 billion, comprised of $770 million based on current ERC and subject to debt covenants, and $262 million of additional availability subject to borrowing base and debt covenants, including advance rates.
•In October 2026, the Company issued $400 million of senior notes due 2033, which extended its debt maturity profile.

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 November 5, 2027, or call 646-517-4150 in the U.S. or 1-888-660-6345 outside the U.S. and use access code 65294# until November 12, 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
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.

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 Sept 30,Nine Months Ended Sept 30,
2026202520262025
Revenues
Portfolio income$270,779 $258,549 $808,157 $750,441 
Changes in expected recoveries14,307 51,358 155,117 112,572 
Total portfolio revenue285,086 309,907 963,274 863,013 
Other revenue1,180 1,233 9,699 5,434 
Total revenues286,266 311,140 972,973 868,447 
Operating expenses
Compensation and benefits66,063 74,237 207,178 223,284 
Legal collection costs46,211 46,764 147,194 117,741 
Legal collection fees18,439 16,558 53,896 47,413 
Agency fees22,993 24,556 70,788 68,612 
Professional and outside services17,002 22,051 60,398 64,225 
Communication7,619 8,377 24,302 28,271 
Rent and occupancy3,451 3,654 10,439 10,638 
Depreciation, amortization and impairment of long-lived assets1,964 2,439 8,396 8,711 
Goodwill impairment— 412,611 — 412,611 
Other operating expenses16,621 15,440 47,943 42,800 
Total operating expenses200,363 626,687 630,534 1,024,306 
Income/(loss) from operations85,903 (315,547)342,439 (155,859)
Other income/(expense)
Interest expense, net(63,828)(64,087)(191,709)(187,418)
Gain on sale of equity method investment— — — 38,403 
Foreign exchange gain, net149 67 702 66 
Other(154)(38)(500)(293)
Income/(loss) before income taxes22,070 (379,605)150,932 (305,101)
Income tax expense3,465 24,361 41,614 44,088 
Net income/(loss)18,605 (403,966)109,318 (349,189)
Net income attributable to noncontrolling interests3,713 3,737 8,299 12,481 
Net income/(loss) attributable to PRA Group, Inc.$14,892 $(407,703)$101,019 $(361,670)
Net income/(loss) per common share attributable to PRA Group, Inc.
Basic$0.40 $(10.43)$2.66 $(9.20)
Diluted$0.39 $(10.43)$2.64 $(9.20)
Weighted average number of shares outstanding
Basic37,653 39,078 38,041 39,316 
Diluted38,021 39,078 38,278 39,316 



PRA Group, Inc.
Consolidated Balance Sheets
(Amounts in thousands)
(unaudited)
September 30,
2026		December 31,
2025
ASSETS
Cash and cash equivalents$139,096 $104,409 
Investments160,014 66,628 
Finance receivables, net4,683,573 4,688,024 
Income taxes receivable28,998 17,702 
Deferred tax assets, net58,448 76,955 
Right-of-use assets24,595 29,206 
Property and equipment, net20,396 24,886 
Goodwill26,871 26,871 
Prepaid expenses and other assets86,977 68,641 
Total assets$5,228,968 $5,103,322 
LIABILITIES AND EQUITY
Liabilities
Accrued expenses and accounts payable$102,595 $131,812 
Income taxes payable37,578 29,845 
Deferred tax liabilities, net31,256 17,064 
Lease liabilities27,344 32,160 
Interest-bearing deposits152,519 106,148 
Borrowings3,714,739 3,697,338 
Other liabilities31,099 48,990 
Total liabilities4,097,130 4,063,357 
Equity
Preferred stock, $0.01 par value, 2,000 shares authorized, no shares issued and outstanding— — 
Common stock, $0.01 par value, 100,000 shares authorized, 37,659 shares issued and outstanding as of September 30, 2026; 100,000 shares authorized, 38,453 shares issued and outstanding as of December 31, 2025377 385 
Additional paid-in capital2,609 11,474 
Retained earnings1,353,706 1,255,007 
Accumulated other comprehensive loss(289,691)(287,015)
Total stockholders' equity - PRA Group, Inc.1,067,001 979,851 
Noncontrolling interests64,837 60,114 
Total equity1,131,838 1,039,965 
Total liabilities and equity$5,228,968 $5,103,322 




Purchase Price Multiples
as of September 30, 2026
(in thousands, except percentages)
Purchase Period
Purchase Price (1)(2)
Total Estimated Collections (3)
Estimated Remaining Collections (4)
Current Purchase Price MultipleOriginal Purchase Price Multiple
U.S. Core
1996-2015$2,736,875 $7,510,730 $80,663 274%223%
2016400,545 819,321 27,487 205%195%
2017511,902 1,166,652 56,807 228%193%
2018604,669 1,377,953 82,203 228%199%
2019432,222 1,017,258 58,785 235%209%
2020415,384 940,623 73,528 226%215%
2021339,885 601,913 99,635 177%191%
2022275,433 429,136 115,300 156%164%
2023506,319 939,215 371,406 185%191%
2024727,672 1,678,881 910,152 231%211%
2025531,021 1,174,752 865,217 221%216%
2026264,083 554,953 523,311 210%210%
Subtotal7,746,010 18,211,387 3,264,494 
U.S. Insolvency
1996-20151,472,385 2,807,086 — 191%154%
201667,454 85,694 5 127%124%
2017275,257 359,955 204 131%125%
201897,879 137,611 124 141%127%
2019120,845 165,153 329 137%128%
202062,130 90,465 1,159 146%136%
202154,898 73,519 1,839 134%136%
202233,442 48,087 7,759 144%139%
202361,242 80,715 29,523 132%136%
202468,168 99,716 46,844 146%149%
202559,091 93,419 74,993 158%160%
202656,154 87,986 86,422 157%157%
Subtotal2,428,945 4,129,406 249,201 
Total U.S.10,174,955 22,340,793 3,513,695 
Europe Core
2012-20151,225,893 3,795,399 663,064 310%190%
2016333,090 637,389 164,887 191%167%
2017252,174 376,348 80,088 149%144%
2018341,775 590,677 149,974 173%148%
2019518,610 918,985 273,992 177%152%
2020324,119 618,771 200,428 191%172%
2021412,411 744,524 326,017 181%170%
2022359,447 596,112 328,347 166%162%
2023410,593 753,207 462,233 183%169%
2024451,786 819,958 617,798 181%180%
2025512,533 941,655 756,842 184%185%
2026350,953 646,394 610,770 184%184%
Subtotal5,493,384 11,439,419 4,634,440 
Europe Insolvency
2014-201529,849 49,205 — 165%135%
201639,338 60,228 1,977 153%130%
201739,235 54,137 1,090 138%128%
201844,908 53,754 566 120%123%
201977,218 115,180 3,367 149%130%
2020105,440 162,068 3,144 154%129%
202153,230 81,979 6,010 154%134%
202244,604 68,911 16,324 154%137%
202346,558 74,752 31,693 161%138%
202443,459 73,055 40,577 168%147%
202520,760 30,891 23,823 149%145%
202637,439 54,519 53,246 146%146%
Subtotal582,038 878,679 181,817 
Total Europe6,075,422 12,318,098 4,816,257 
Other markets (5)
969,781 2,223,865 463,683 229%205%
Total PRA Group$17,220,158 $36,882,756 $8,793,635 
(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 September 30, 2026 exchange rate.
(5)Reflects all vintages in South America, Canada and Australia.



Portfolio Financial Information (1)
(in thousands)
September 30, 2026 (year-to-date)As of September 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$30,128 $15,407 $7,383 $22,790 $26,090 
20167,404 4,300 (189)4,111 11,615 
201714,819 8,933 (1,500)7,433 22,868 
201823,854 11,450 2,639 14,089 40,158 
201918,572 9,354 (993)8,361 27,549 
202024,371 11,820 (1,709)10,111 35,911 
202127,661 13,802 (1,814)11,988 49,723 
202230,268 12,672 (4,400)8,272 67,132 
2023106,708 49,149 (13,524)35,625 197,418 
2024274,079 131,352 10,443 141,795 478,985 
2025203,444 123,502 8,645 132,147 450,801 
202631,645 31,779 (3,215)28,564 260,659 
Subtotal792,953 423,520 1,766 425,286 1,668,909 
U.S. Insolvency
1996-2015633 — 632 632 — 
201680 3 52 55 5 
2017517 22 450 472 182 
2018378 5 402 407 116 
20191,032 12 1,058 1,070 314 
20201,134 129 222 351 1,022 
20215,013 399 (793)(394)1,673 
20226,369 921 180 1,101 7,156 
202313,820 2,838 361 3,199 26,163 
202417,725 5,982 299 6,281 37,432 
202513,248 8,066 (537)7,529 53,783 
20261,562 2,739 241 2,980 57,290 
Subtotal61,511 21,116 2,567 23,683 185,136 
Total U.S.854,464 444,636 4,333 448,969 1,854,045 
Europe Core
2012-201589,822 53,207 65,801 119,008 173,353 
201619,643 8,622 21,271 29,893 89,712 
201710,727 3,870 3,926 7,796 50,421 
201823,571 8,813 6,212 15,025 87,585 
201940,824 14,061 18,046 32,107 180,188 
202029,087 12,059 5,490 17,549 120,068 
202140,606 18,087 5,619 23,706 194,211 
202245,904 18,260 (691)17,569 207,127 
202361,915 26,207 21,459 47,666 266,683 
202487,434 39,178 4,030 43,208 348,928 
2025102,142 49,656 (5,276)44,380 412,972 
202636,242 16,085 3,041 19,126 333,406 
Subtotal587,917 268,105 148,928 417,033 2,464,654 
Europe Insolvency
2014-2015236 — 236 236 — 
2016318 88 445 533 328 
2017497 45 851 896 570 
2018574 24 414 438 407 
20191,863 232 537 769 2,680 
20204,373 340 (79)261 2,908 
20217,354 647 1,679 2,326 5,440 
20229,888 1,484 2,962 4,446 14,227 
202312,772 2,513 7,401 9,914 26,889 
202411,931 3,864 7,083 10,947 31,465 
20254,686 2,044 637 2,681 18,031 
20261,287 961 227 1,188 37,290 
Subtotal55,779 12,242 22,393 34,635 140,235 
Total Europe643,696 280,347 171,321 451,668 2,604,889 
Other markets (4)
147,956 83,174 (20,537)62,637 224,639 
Total PRA Group$1,646,116 $808,157 $155,117 $963,274 $4,683,573 
(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 September 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 September 30, 2026
    (in millions)
Purchase Period
Purchase Price (2)(3)
1996-201520162017201820192020202120222023202420252026Total
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 $30.1 $7,422.9 
2016400.5 — 86.1 195.3 160.1 116.6 88.7 59.9 29.1 17.6 18.1 12.9 7.4 791.8 
2017511.9 — — 94.3 264.4 247.1 185.6 124.8 73.1 41.6 37.5 26.6 14.8 1,109.8 
2018604.7 — — — 106.3 320.2 304.7 214.8 131.6 83.2 68.1 42.9 23.9 1,295.7 
2019432.2 — — — — 93.4 282.2 237.4 141.7 86.1 61.8 37.3 18.6 958.5 
2020415.4 — — — — — 127.4 274.7 185.4 121.3 83.6 50.4 24.4 867.2 
2021339.9 — — — — — — 73.8 149.9 115.3 82.8 52.8 27.7 502.3 
2022275.4 — — — — — — — 34.9 102.4 87.8 58.5 30.3 313.9 
2023506.3— — — — — — — — 63.5 211.8 185.9 106.7 567.9 
2024727.7 — — — — — — — — — 119.8 374.9 274.1 768.8 
2025531.0 — — — — — — — — — — 106.1 203.4 309.5 
2026264.1 — — — — — — — — — — — 31.6 31.6 
Subtotal7,746.0 5,186.4 759.9 769.0 868.5 1,008.2 1,137.9 1,083.6 812.8 682.7 836.0 1,001.9 793.0 14,939.9 
U.S. Insolvency
1996-20151,472.4 2,290.4 230.4 142.6 78.6 39.1 13.6 4.5 2.9 1.8 1.4 1.0 0.6 2,806.9 
201667.5 — 10.1 18.9 18.2 16.4 13.0 6.6 1.3 0.6 0.4 0.1 0.1 85.7 
2017275.3 — — 49.1 97.3 80.9 58.8 44.0 20.8 4.9 2.5 1.0 0.5 359.8 
201897.9 — — — 6.7 27.4 30.5 31.6 24.6 12.7 2.5 1.0 0.4 137.4 
2019120.8 — — — — 13.4 30.9 37.9 36.8 28.0 14.2 2.7 1.0 164.9 
202062.1 — — — — — 6.5 16.1 20.4 19.5 17.0 8.7 1.1 89.3 
202154.9 — — — — — — 4.5 17.7 17.4 15.2 11.8 5.0 71.6 
202233.4 — — — — — — — 3.2 9.2 11.1 10.5 6.4 40.4 
202361.2 — — — — — — — — 4.5 14.8 18.0 13.8 51.1 
202468.2 — — — — — — — — — 12.1 23.1 17.7 52.9 
202559.1 — — — — — — — — — — 5.2 13.2 18.4 
202656.2 — — — — — — — — — — — 1.7 1.7 
Subtotal2,429.0 2,290.4 240.5 210.6 200.8 177.2 153.3 145.2 127.7 98.6 91.2 83.1 61.5 3,880.1 
Total U.S.10,175.0 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 1,085.0 854.5 18,820.0 
Europe Core
2012-20151,225.8 538.4 350.2 310.3 290.5 241.4 206.0 202.4 164.3 142.4 132.1 126.9 89.8 2,794.7 
2016333.1 — 40.4 78.9 72.6 58.0 48.3 46.7 36.9 29.7 27.4 27.1 19.6 485.6 
2017252.2 — — 17.9 56.0 44.1 36.1 34.8 25.2 20.2 17.9 15.7 10.7 278.6 
2018341.8 — — — 24.3 88.7 71.3 69.1 50.7 41.6 37.1 34.3 23.6 440.7 
2019518.6 — — — — 48.0 125.7 121.4 89.8 75.1 68.2 61.7 40.8 630.7 
2020324.1 — — — — — 32.3 91.7 69.0 56.1 50.1 45.1 29.1 373.4 
2021412.4 — — — — — — 48.5 89.9 73.0 66.6 59.7 40.6 378.3 
2022359.4 — — — — — — — 33.9 83.8 74.7 67.8 45.9 306.1 
2023410.6 — — — — — — — — 50.2 103.1 93.2 61.9 308.4 
2024451.9 — — — — — — — — — 46.3 135.6 87.4 269.3 
2025512.5 — — — — — — — — — — 57.1 102.1 159.2 
2026351.0 — — — — — — — — — — — 36.4 36.4 
Subtotal5,493.4 538.4 390.6 407.1 443.4 480.2 519.7 614.6 559.7 572.1 623.5 724.2 587.9 6,461.4 
Europe Insolvency
2014-201529.9 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 
201639.3 — 6.2 12.7 12.9 10.7 7.9 6.0 2.7 1.3 0.8 0.6 0.3 62.1 
201739.2 — — 1.2 7.9 9.2 9.8 9.4 6.5 3.8 1.5 1.0 0.5 50.8 
201844.9 — — — 0.6 8.4 10.3 11.7 9.8 7.2 3.5 1.4 0.6 53.5 
201977.2 — — — — 5.0 21.1 23.9 21.0 17.5 12.9 6.1 1.9 109.4 
2020105.4 — — — — — 6.0 34.6 34.1 29.7 25.5 15.5 4.4 149.8 
202153.2 — — — — — — 5.5 14.4 14.7 15.4 14.6 7.4 72.0 
202244.6 — — — — — — — 4.5 12.4 15.2 15.2 9.9 57.2 
202346.7 — — — — — — — — 4.2 12.7 15.7 12.8 45.4 
202443.4 — — — — — — — — — 9.5 15.2 11.9 36.6 
202520.8 — — — — — — — — — — 1.9 4.7 6.6 
202637.4 — — — — — — — — — — — 1.1 1.1 
Subtotal582.0 7.3 14.5 22.1 28.8 38.7 58.8 93.0 93.8 91.4 97.4 87.5 55.7 689.0 
Total Europe6,075.4 545.7 405.1 429.2 472.2 518.9 578.5 707.6 653.5 663.5 720.9 811.7 643.6 7,150.4 
Other markets (3)
969.8 33.9 86.5 103.9 83.7 137.0 135.9 125.4 135.0 215.9 220.5 210.7 148.0 1,636.4 
Total PRA Group$17,220.2 $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 $1,646.1 $27,606.8 
(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, operational effectiveness and management of operating 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 income/(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 income/(loss) attributable to PRA Group, Inc. to Adjusted EBITDA for the last twelve months (LTM) ended September 30, 2026 and for the year ended December 31, 2025.
LTMYear Ended
Adjusted EBITDA Reconciliation ($ in thousands)September 30, 2026December 31, 2025
Net income/(loss) attributable to PRA Group, Inc.$157,547 $(305,142)
Adjustments:
Income tax expense44,261 46,735 
Foreign exchange gain(1,391)(755)
Interest expense, net256,079 251,788 
Other expense543 336 
Depreciation and amortization7,281 9,035 
Impairment of real estate2,843 1,404 
Goodwill impairment— 412,611 
Net income attributable to noncontrolling interests10,986 15,168 
Gain on sale of equity method investment— (38,403)
Recoveries collected and applied to Finance receivables, net less Changes in expected recoveries899,605 922,697 
Adjusted EBITDA$1,377,754 $1,315,474 










Adjusted cash efficiency ratio
The Company uses an adjusted cash efficiency ratio, which is a supplemental measure of performance that is not required by, or presented in accordance with, GAAP, to monitor and evaluate operating expenses, excluding goodwill impairment ("Adjusted operating expenses"), relative to cash collections plus fees and revenue recognized from our class action claims recovery services. Management believes the adjusted cash efficiency ratio is a useful financial measure for investors in evaluating the Company's management of operating expenses. The adjusted cash efficiency ratio is calculated by dividing cash receipts less Adjusted operating expenses by cash receipts. The following table provides a reconciliation of Total operating expenses to Adjusted operating expenses and presents the Company's cash efficiency and Adjusted cash efficiency ratios for the periods indicated (in thousands, except for ratio data):
Adjusted Operating Expenses Reconciliation and Adjusted Cash Efficiency Ratio
Third QuarterYear-to-Date
2026202520262025
Cash collections$535,643 $542,244 $1,646,116 $1,575,968 
Fee income771 622 6,700 3,745 
Cash receipts536,414 542,866 1,652,816 1,579,713 
Total operating expenses200,363 626,687 630,534 1,024,306 
Goodwill impairment— (412,611)— (412,611)
Adjusted operating expenses200,363214,076630,534611,695
Cash efficiency ratio63%(15)%62%35%
Adjusted cash efficiency ratio63%61%62%61%

Adjusted net income attributable to PRA, Adjusted diluted earnings per share, ROATE and Adjusted ROATE
The Company uses Net income/(loss) attributable to PRA Group, Inc. excluding the impact of certain items that management does not consider indicative of the Company's 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/(loss) attributable to PRA Group, Inc. excluding the impact of certain items that management does not consider indicative of the Company's ongoing operations. Calculation of Adjusted diluted earnings per share excludes those same items and, if dilutive based on Adjusted net income attributable to PRA, may also include the impact of additional potentially dilutive shares.
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/(loss) 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 annualized Net income/(loss) 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/(loss) attributable to PRA Group, Inc. to Adjusted net income attributable to PRA, 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 EndThird QuarterYear-to-Date
September 30, 2026September 30, 20252026202520262025
Total stockholders' equity - PRA Group, Inc.$1,067,001 $928,493 $1,056,235$1,132,709 $1,023,652$1,154,889
Goodwill26,871 26,871 26,871233,16026,871320,848
Other intangible assets1,209 1,470 1,2461,5061,3181,488
Average tangible equity$1,028,118$898,043$995,463$832,553
ROE and ROATE (2)
Third QuarterYear-to-Date
2026202520262025
Net income/(loss) attributable to PRA Group, Inc.$14,892$(407,703)$101,019$(361,670)
Return on equity6 %(144)%13 %(42)%
ROATE6 %(182)%14 %(58)%
Adjusted Net Income Attributable to PRA Reconciliation and Adjusted ROATE (3)
Third QuarterYear-to-Date
2026202520262025
Net income/(loss) attributable to PRA Group, Inc.$14,892 $(407,703)$101,019 $(361,670)
Gain on sale of equity method investment— — — (38,403)
Goodwill impairment— 412,611 — 412,611 
Tax effect of adjusting items (4)
— 15,969 — 24,686 
Adjusted net income attributable to PRA$14,892 $20,877 $101,019 $37,224 
Adjusted ROATE6 %9 %14 %6 %









The following table provides a reconciliation of diluted earnings per share to Adjusted diluted earnings per share:
Adjusted Diluted Earnings Per Share Reconciliation
Third QuarterYear-to-Date
2026202520262025
Diluted earnings per share$0.39$(10.43)$2.64$(9.20)
Effect of adjusting items and dilutive shares (5)
—10.96—10.14
Adjusted diluted earnings per share$0.39$0.53$2.64$0.94




Investor Contact:
Najim Mostamand, CFA
Vice President, Investor Relations
757-431-7913
IR@PRAGroup.com

1.Amounts represent the average balances for the respective periods.
2.Based on annualized Net income/(loss) attributable to PRA Group, Inc.
3.Based on annualized Adjusted net income attributable to PRA.
4.Based on the annual effective tax rate and pretax income excluding the effect of the adjusting items.
5.Impact of the non-GAAP adjusting items and dilutive effect of all potential shares of common stock.