PRA Group Reports First Quarter 2026 Results

Rhea-AI Summary

PRA Group (Nasdaq: PRAA) reported Q1 2026 results on May 7, 2026, with total cash collections of $551.9M (up 11.0% YoY) and net income of $28.2M (diluted EPS $0.73). Adjusted EBITDA for the 12 months ended March 31, 2026 was $1.3B (up 13.9%).

Estimated remaining collections were $8.5B (up 9.5%). Portfolio purchases totaled $220.9M. Cash efficiency ratio improved to 61.8%. Credit availability was $996.0M.

Positive

• Total cash collections +11.0% YoY to $551.9M
• Adjusted EBITDA +13.9% to $1.3B (12 months ended Mar 31,2026)
• Estimated remaining collections (ERC) $8.5B, up 9.5%

Negative

• Total portfolio purchases fell 29.8% QoQ to $220.9M
• Operating expenses increased $16.2M to $211.3M
• Interest expense rose to $63.5M, reflecting higher debt balances

Key Figures

Total cash collections: $551.9M Net income: $28.2M Diluted EPS: $0.73 +5 more

8 metrics

Total cash collections $551.9M Q1 2026, up 11.0% vs Q1 2025

Net income $28.2M Q1 2026 attributable to PRA Group, Inc.

Diluted EPS $0.73 Q1 2026

Adjusted EBITDA $1.3B 12 months ended March 31, 2026; up 13.9%

Estimated remaining collections $8.5B ERC as of Q1 2026; up 9.5%

Portfolio purchases $220.9M Q1 2026 nonperforming loan portfolios

Forward flow commitments $321.8M Estimated over next 12 months at end of Q1 2026

Credit facility availability $996.0M Total availability as of March 31, 2026

Market Reality Check

Price: $21.27 Vol: Volume 276,825 is below t...

normal vol

$21.27 Last Close

Volume Volume 276,825 is below the 20-day average of 319,747 (about 0.87x typical activity). normal

Technical Shares at $21.27 are trading above the 200-day MA of $16.26 and sit 5.68% below the 52-week high of $22.55.

Peers on Argus

PRAA slipped 0.42% while key peers showed mixed moves: WRLD up 3.72%, QD up 1.86...

PRAA slipped 0.42% while key peers showed mixed moves: WRLD up 3.72%, QD up 1.86%, GDOT up 0.48%, with XYF and ATLC slightly negative. The pattern points to stock-specific trading rather than a coordinated credit-services move.

Previous Earnings Reports

5 past events · Latest: Feb 26 (Positive)

Same Type Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Feb 26	Q4/FY 2025 earnings	Positive	+24.3%	Strong collections and EBITDA overshadowed by prior goodwill impairment-driven loss.
Nov 03	Q3 2025 earnings	Negative	-11.0%	Large non-cash goodwill impairment caused a significant quarterly net loss.
Aug 04	Q2 2025 earnings	Positive	-0.5%	Strong net income and record ERC with double-digit cash collections growth.
May 05	Q1 2025 earnings	Negative	-29.3%	Solid operational metrics but reduced return-on-equity target unsettled investors.
Feb 19	Q4/FY 2024 earnings	Positive	-4.2%	Record portfolio purchases and cash collections despite later negative price reaction.

Pattern Detected

Earnings releases have produced mixed reactions: strong fundamentals sometimes sold off, especially when paired with impairments or guidance shifts.

Recent Company History

Over the past year, PRA Group’s earnings reports have highlighted consistent cash collections growth, rising Adjusted EBITDA near $1.3 billion, and record ERC levels above $8 billion. However, a large $412.6 million goodwill impairment in 2025 drove a substantial net loss, and some strong quarters were followed by negative share reactions. Today’s Q1 2026 update, with higher cash collections and a return to net income, continues the operational improvement trend after the impairment-heavy 2025 period.

Historical Comparison

-4.1% avg move · Over the last five earnings releases, PRAA’s average move was -4.13%, with both sharp rallies and se...

earnings

-4.1%

Average Historical Move earnings

Over the last five earnings releases, PRAA’s average move was -4.13%, with both sharp rallies and selloffs. Today’s modest -0.42% pre-news level sits well within this historical range.

Earnings updates show a shift from 2024–2025 impairment-driven losses toward improving cash collections, rising Adjusted EBITDA near $1.3B, and a return to positive net income in early 2026.

Market Pulse Summary

This announcement highlights a solid start to 2026, with Q1 cash collections of $551.9M, net income ...

Analysis

This announcement highlights a solid start to 2026, with Q1 cash collections of $551.9M, net income of $28.2M, and ERC of $8.5B. Adjusted EBITDA over the last twelve months reached $1.3B, growing faster than collections, suggesting operating leverage. Against a backdrop of prior goodwill impairments, investors may focus on continued collections growth, disciplined $220.9M portfolio purchases, and execution of the PRA 3.0 strategy.

Key Terms

cash efficiency ratio, adjusted EBITDA, estimated remaining collections, nonperforming loans, +4 more

8 terms

cash efficiency ratio financial

"Cash efficiency ratio1 of 61.8%."

Cash efficiency ratio measures how much actual cash a company generates from its sales or operations, typically by comparing operating cash flow to revenue. Think of it like the share of your paycheck that ends up in your bank account after all routine deductions: the higher the ratio, the more of each dollar of sales turns into usable cash, which matters to investors because cash funds growth, pays debts, and supports dividends or buybacks.

adjusted EBITDA financial

"Adjusted EBITDA2 for the 12 months ended March 31, 2026 of $1.3 billion, up 13.9%"

Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.

estimated remaining collections financial

"Estimated remaining collections (ERC)3 of $8.5 billion, up 9.5%."

Estimated remaining collections is the amount of money a company expects to still receive from its customers for goods or services already provided. It helps investors understand how much income is still expected to come in from current sales, similar to predicting how much money is left to collect from a partially paid bill. This figure provides insight into the company's future cash flow and financial health.

nonperforming loans financial

"a global leader in acquiring and collecting nonperforming loans, today reported its financial results"

Nonperforming loans are loans on which borrowers have stopped making the scheduled interest or principal payments for an extended period (commonly 90 days or more) or are otherwise in serious danger of default. Think of them as IOUs that aren’t being repaid: they tie up a lender’s money, reduce future interest income, and force the lender to hold extra reserves or take losses. For investors, a rising share of nonperforming loans signals weakening credit quality, higher potential losses, and greater risk to a bank’s profitability and capital.

constant currency-adjusted financial

"Cash Collection Source - Constant Currency-Adjusted | | 2026 | | 2025"

A financial measure adjusted to remove the effects of changes in exchange rates so that revenue or profit comparisons across different reporting periods reflect only underlying business performance. Think of it as comparing the same recipe using a fixed ingredient price rather than letting fluctuating currency values change the cost — this helps investors see whether sales or margins moved because the company performed differently, not because money converted into a stronger or weaker currency.

effective tax rate financial

"The effective tax rate for the quarter was 21.6%."

The effective tax rate is the percentage of a company's profits that it pays in taxes. It shows how much of its earnings go to taxes after all deductions and credits are considered. For investors, it indicates how much of the company's income is taken by taxes, impacting overall profitability and financial health.

forward flow commitments financial

"estimated forward flow commitments2 of $321.8 million over the next 12 months"

Forward flow commitments are agreements in which one party promises to buy a stream of future assets or receivables from another party over a set period, often at pre-agreed terms. For investors this matters because such contracts create predictable sales or cash flow for the seller and shift credit and liquidity risk to the buyer, like a standing grocery order that guarantees steady deliveries and payments but also locks in quality and timing risks.

revolving credit facility financial

"European Credit Agreement for its €730 million revolving credit facility."

A revolving credit facility is a type of loan that a business can borrow from whenever it needs money, up to a set limit. It’s like having a credit card for companies—allowing them to borrow, pay back, and borrow again as needed, providing flexibility for managing cash flow or funding short-term expenses.

AI-generated analysis. Not financial advice.

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)

• Total cash collections of $551.9 million, up 11.0%.
• Cash efficiency ratio¹ of 61.8%.
• Net income attributable to PRA Group, Inc. of $28.2 million, or diluted earnings per share of $0.73.
• Adjusted EBITDA² for the 12 months ended March 31, 2026 of $1.3 billion, up 13.9%, which exceeded cash collections growth.
• Total portfolio purchases of $220.9 million, in line with expectations, as we continue to focus on driving higher returns and net income while balancing investments with leverage.
• Estimated remaining collections (ERC)³ of $8.5 billion, up 9.5%.

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.

• Total cash collections in Q1 2026 increased 11.0% to $551.9 million, compared to $497.4 million in the first quarter of 2025 ("Q1 2025"), driven by the continued increase in cash generation from our investments in the U.S. legal collections channel, as well as strong performance in our European business.

		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

• Portfolio income in Q1 2026 increased 11.9% to $269.6 million, compared to $241.0 million in Q1 2025, driven by strong recent purchases at improved returns.
• Changes in expected recoveries in Q1 2026 increased to $43.9 million, compared to $27.9 million in Q1 2025.
• Total portfolio revenue in Q1 2026 increased 16.6% to $313.5 million, compared to $268.9 million in Q1 2025.

Expenses

• Operating expenses in Q1 2026 increased $16.2 million to $211.3 million, compared to $195.0 million in Q1 2025, driven primarily by a $15.1 million increase in legal collection costs to support future cash collections growth.
  • Compensation and benefits expense decreased $2.6 million, primarily due to our efforts to right-size our agent headcount, leverage more external collections resources (including offshore agents), and eliminate more than 115 corporate roles in the fourth quarter of 2025.
  • Communication expense decreased $1.5 million, due to the use of more cost-efficient collection strategies.
• Interest expense, net in Q1 2026 increased to $63.5 million, compared to $61.0 million in Q1 2025, primarily reflecting an increase in debt balances.
• The effective tax rate for the quarter was 21.6%.

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.

• The Company purchased $220.9 million in portfolios of nonperforming loans in Q1 2026.
• At the end of Q1 2026, the Company had in place estimated forward flow commitments² of $321.8 million over the next 12 months, comprised of $172.6 million in Europe, $132.2 million in the U.S., and $17.0 million in other markets.

Credit Availability

• Total availability under the Company's credit facilities as of March 31, 2026 was $996.0 million, comprised of $714.3 million based on current ERC and subject to debt covenants, and $281.7 million of additional availability subject to borrowing base and debt covenants, including advance rates.

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
IR@PRAGroup.com

 

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SOURCE PRA Group, Inc.

FAQ

What were PRA Group (PRAA) Q1 2026 cash collections and how did they change year-over-year?

Total cash collections were $551.9 million in Q1 2026, an 11.0% increase year-over-year. According to the company, growth was driven by U.S. legal collections momentum and strong performance in Europe, with constant-currency collections rising versus Q1 2025.

How much net income and EPS did PRA Group (PRAA) report for Q1 2026?

PRA Group reported net income of $28.2 million and diluted EPS of $0.73 for Q1 2026. According to the company, results reflected higher portfolio revenue and operating leverage despite increased legal collection costs.

What was PRA Group's (PRAA) Adjusted EBITDA and ERC reported May 7, 2026?

Adjusted EBITDA for the 12 months ended March 31, 2026 was $1.3 billion, up 13.9%. According to the company, estimated remaining collections (ERC) were $8.5 billion, up 9.5%, supporting future cash flows.

How much did PRA Group (PRAA) purchase in portfolios in Q1 2026 and what are forward commitments?

PRA Group purchased $220.9 million of portfolios in Q1 2026. According to the company, estimated forward flow commitments over the next 12 months totaled $321.8 million, split across Europe, the U.S., and other markets.

What credit availability did PRA Group (PRAA) report at March 31, 2026 and what limits apply?

Total credit availability was $996.0 million as of March 31, 2026. According to the company, $714.3 million is based on current ERC and covenants, with an additional $281.7 million subject to borrowing base and debt covenants.