PRA Group Reports Second Quarter 2026 Results

Rhea-AI Summary

PRA Group (Nasdaq: PRAA) reported Q2 2026 net income attributable to the company of $58 million, or $1.51 diluted EPS, supported by a comprehensive review of European portfolios that produced an approximately $349 million increase in European estimated remaining collections (ERC).

Total cash collections rose 4% year over year to $559 million, while ERC reached $8.9 billion, up 7%. Total portfolio revenue increased 28% to $365 million, driven by 7% growth in portfolio income to $268 million and higher positive changes in expected recoveries of $97 million. For the 12 months ended June 30, 2026, Adjusted EBITDA was $1.4 billion, up 10%.

Operating expenses rose to $219 million, including $5 million of U.S. reorganization costs, and net interest expense increased to $64 million. PRA Group purchased $297 million of nonperforming loan portfolios, had $219 million in estimated forward flow commitments, $998 million of credit availability, repurchased $10 million of shares, and obtained board authorization for a new $150 million share repurchase program.

Positive

• Net income $58M, EPS $1.51 in Q2 2026
• Total portfolio revenue $365M, up 28% vs. Q2 2025
• ERC $8.9B, up 7% including ~$349M European ERC increase
• Total cash collections $559M, up 4% year over year
• Adjusted EBITDA $1.4B for 12 months ended June 30, 2026, up 10%
• New $150M share repurchase authorization plus $10M bought in Q2

Negative

• Operating expenses up to $219M from $203M year over year
• Legal collection costs increased by $15M vs. Q2 2025
• Interest expense, net $64M, up from $62M in Q2 2025
• $5M in reorganization, severance and call center consolidation costs in Q2 2026

News Explained

The quarter’s $8.9 billion ERC is projected future collections, while $219 million of forward-flow purchases remains delivery-dependent.

The new PRA Group share-repurchase program permits up to $150 million of future common-stock purchases, but the release commits no spend beyond the $10 million repurchased in Q2; timing and amount remain board-discretionary.

ERC means the sum of all future projected cash collections on nonperforming-loan portfolios, so the $8.9 billion figure is a projection rather than cash already received.

The $219 million forward-flow figure is an estimate of purchases over the next 12 months under seller agreements; actual purchases can vary significantly because delivery depends on sellers and, in some cases, foreign-exchange movements.

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$58 Million Net Income Driven by $349 Million Increase in Europe ERC Following Comprehensive European Portfolio Review and Strong Long-Term Performance

Continued to Deliver on Significant Execution Milestones Under PRA 3.0 Strategy, Including Additional Cost Reductions, Call Center Footprint Consolidation and Technology Modernization  

Repurchased $10 Million of Shares During the Quarter; Board of Directors Authorized New Share Repurchase Program for up to $150 Million

NORFOLK, Va., Aug. 6, 2026 /PRNewswire/ -- PRA Group, Inc. (Nasdaq: PRAA) (the "Company"), a global leader in acquiring and collecting nonperforming loans, today reported its financial results for the second quarter of 2026 ("Q2 2026").

Q2 2026 Highlights (vs. Q2 2025)

• Total cash collections of $559 million, up 4%.
• Net income attributable to PRA Group, Inc. of $58 million, or diluted earnings per share of $1.51.
• Estimated remaining collections (ERC)¹ of $8.9 billion, up 7%.
• Adjusted EBITDA² of $1.4 billion, up 10%.
• Cash efficiency ratio³ of 61%.
• Total portfolio purchases of $297 million, in line with expectations.

1.	Refers to the sum of all future projected cash collections on the Company's nonperforming loan portfolios.
2.	For the 12 months ended June 30, 2026. A reconciliation of net income attributable to PRA Group, Inc. to Adjusted EBITDA can be found at the end of this press release.
3.	Calculated by dividing cash receipts less operating expenses by cash receipts. Cash receipts refers to cash collections on the Company's nonperforming loan portfolios, fees and revenue recognized from the Company's class action claims recovery services.

"We continued to execute against our PRA 3.0 strategy during the second quarter to drive higher returns and long-term shareholder value," said Martin Sjolund, president and chief executive officer. "We generated continued growth in cash collections, maintained strong cash efficiency, invested nearly $300 million in portfolio purchases, and delivered higher earnings. We also performed a comprehensive review of our European portfolios as part of our quarterly portfolio assessment. This review resulted in an approximately $349 million increase in European ERC, reflecting more than six years of sustained cash overperformance in Europe, as well as enhancements to our analytical processes and forecasting capabilities. We believe this is an important milestone that better aligns our European ERC with the long trend of historical overperformance of the European portfolios. As a result of this change, we expect higher levels of portfolio income going forward and more moderate levels of changes in expected recoveries over the long-term."

"We also achieved a number of important execution milestones during the quarter. We continued reducing costs and simplifying the organization, further consolidated our U.S. call center footprint, expanded our AI capabilities, and maintained a disciplined approach to capital allocation. Our teams are moving with pace and rigor across all three vectors of our PRA 3.0 strategy, and we are beginning to see the benefits of these actions reflected in our financial results through record ERC levels, growing adjusted EBITDA, and a strong funding profile. We remain focused on improving financial performance, further strengthening the balance sheet, and delivering long-term value for shareholders."

Cash Collections and Revenues
The following table presents cash collections by quarter and by source, as reported and on a constant currency-adjusted basis:

Cash Collection Source		2026				2025
($ in thousands)		Q2		Q1		Q4		Q3		Q2
U.S. Core		$    269,678		$    268,409		$    249,322		$    258,277		$    253,856
U.S. Insolvency		21,434		20,141		20,223		21,131		21,175
Europe Core		200,420		192,019		188,277		185,910		185,652
Europe Insolvency		17,658		20,547		19,166		22,658		24,609
Other markets (1)		49,355		50,812		54,670		54,268		50,996
Total cash collections		$    558,545		$    551,928		$    531,658		$    542,244		$    536,288
Cash Collection Source -
Constant Currency-Adjusted		2026								2025
($ in thousands)		Q2								Q2
U.S. Core		$    269,678								$    253,856
U.S. Insolvency		21,434								21,175
Europe Core		200,420								189,826
Europe Insolvency		17,658								24,761
Other markets (1)		49,355								56,025
Total cash collections		$    558,545								$    545,643

1.	Reflects total cash collections in South America, Canada and Australia.

• Total cash collections in Q2 2026 increased 4% to $559 million, compared to $536 million in the second quarter of 2025 ("Q2 2025"), driven by continued strength in the U.S. legal and digital collections channels and in our European business.

		Three Months Ended June 30,
($ in thousands)		2026		2025
Portfolio income		$      267,799		$       250,934
Recoveries collected in excess of forecast		22,742		40,302
Changes in expected future recoveries		74,182		(7,010)
Changes in expected recoveries		96,924		33,292
Total portfolio revenue		$      364,723		$       284,226

• Portfolio income in Q2 2026 increased 7% to $268 million, compared to $251 million in Q2 2025, driven by strong recent purchases at attractive returns.
• Changes in expected recoveries in Q2 2026 increased to $97 million, compared to $33 million in Q2 2025. The increase was primarily driven by the approximately $349 million increase in European ERC following a comprehensive review as part of the Company's quarterly portfolio assessment. The comprehensive review reflected more than six years of sustained cash overperformance across the Company's European business.
• Total portfolio revenue in Q2 2026 increased 28% to $365 million, compared to $284 million in Q2 2025.

Expenses

• Operating expenses in Q2 2026 increased $16 million to $219 million, compared to $203 million in Q2 2025, driven primarily by a $15 million increase in legal collection costs to support future cash collections growth.
  • Compensation and benefits expense decreased $5 million, primarily due to workforce reductions and other cost actions implemented during the past year.
  • Communication expense decreased $2 million, reflecting the increased use of more cost-efficient digital collection strategies.
  • Operating expenses in Q2 2026 included $5 million of expenses to reorganize the Company's U.S. business. This was comprised of $2 million of severance expenses related to the corporate and overhead headcount reduction during the quarter, as well as $3 million of real estate impairment and other expenses related to the consolidation of the Company's owned and leased call center facilities.
• Interest expense, net in Q2 2026 increased to $64 million, compared to $62 million in Q2 2025, primarily reflecting an increase in debt balances.
• The effective tax rate for the quarter was 33%.

Portfolio Purchases

Portfolio Purchase Source		2026				2025
($ in thousands)		Q2		Q1		Q4		Q3		Q2
U.S. Core		$      90,227		$     105,469		$     102,254		$     119,672		$     160,193
U.S. Insolvency		19,220		13,043		10,088		14,809		22,134
Europe Core		164,620		86,715		152,375		95,239		142,465
Europe Insolvency		9,817		4,837		4,758		5,934		4,757
Other markets (1)		12,687		10,786		45,326		19,838		16,956
Total portfolio purchases		$    296,571		$     220,850		$     314,801		$     255,492		$     346,505

• The Company purchased $297 million in portfolios of nonperforming loans in Q2 2026, as it continues to be disciplined with its investments and return thresholds.
• At the end of Q2 2026, the Company had in place estimated forward flow commitments² of $219 million over the next 12 months, comprised of $117 million in Europe, $86 million in the U.S., and $15 million in other markets.

1.

Reflects total portfolio purchases in South America, Canada and Australia.

2.

Contractual agreements with sellers of nonperforming loans that allow for the purchase of nonperforming loan portfolios at pre-established prices. These amounts represent our estimated forward flow purchases over the next 12 months under the agreements in place based on projections and other factors, including sellers' estimates of future forward flow sales, and are dependent on actual delivery by the sellers and, in some cases, the impact of foreign exchange rate fluctuations. Accordingly, amounts purchased under these agreements may vary significantly.

Credit Availability

• Total availability under the Company's credit facilities as of June 30, 2026 was $998 million, comprised of $733 million based on current ERC and subject to debt covenants, and $265 million of additional availability subject to borrowing base and debt covenants, including advance rates.

Share Repurchases

• During Q2 2026, the Company repurchased $10 million of its outstanding common stock.
• On August 3, 2026, the Company's board of directors authorized a new $150 million program.

The new share repurchase program has no stated expiration date and repurchases may be made through open market purchases or other available means at the Company's discretion, subject to applicable regulatory requirements. The amount and timing of share repurchases depend on several factors, including the Company's capital allocation priorities, financial performance, market conditions, valuation, leverage, liquidity, and the terms of its existing debt agreements. The new share repurchase program remains subject to the discretion of the Company's board of directors.

"We continue to maintain a disciplined capital allocation framework that prioritizes portfolio purchases at attractive returns and investments that enhance our operating performance, while also undertaking opportunistic share repurchases when we see an opportunity to drive value for our shareholders," said Rakesh Sehgal, executive vice president and chief financial officer. "This new share repurchase program provides additional flexibility in how we deploy capital and reflects our commitment to long-term shareholder value."

Conference Call Information
PRA Group, Inc. will hold a conference call today at 5:00 p.m. ET to discuss its financial and operational results. To listen to a webcast of the call and view the accompanying slides, visit https://ir.pragroup.com/events-and-presentations. To listen by phone, call 646-357-8785 in the U.S. or 1-800-836-8184 outside the U.S. and ask for the PRA Group conference call. To listen to a replay of the call, either visit the same website until August 6, 2027, or call 646-517-4150 in the U.S. or 1-888-660-6345 outside the U.S. and use access code 53963# until August 13, 2026.                                                                               

About PRA Group, Inc.
As a global industry leader with more than 30 years of experience, PRA Group, Inc. (Nasdaq: PRAA) specializes in acquiring and collecting nonperforming loans. PRA Group purchases portfolios from banks and other creditors and, through its subsidiaries, collaborates with customers to help them resolve their debt. Headquartered in Norfolk, Virginia, PRA Group has operations in the U.S., Europe, and other markets. For more information, please visit www.pragroup.com. 

About Forward Looking Statements
Statements made herein that are not historical in nature, including PRA Group, Inc.'s or its management's intentions, hopes, beliefs, expectations, representations, projections, plans or predictions of the future, are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended.

The forward-looking statements in this press release are based upon management's current beliefs, estimates, assumptions and expectations of PRA Group, Inc.'s future operations and financial and economic performance, taking into account currently available information. These statements are not statements of historical fact or guarantees of future performance, and there can be no assurance that anticipated events will transpire or that the Company's expectations will prove to be correct. Forward-looking statements involve risks and uncertainties, some of which are not currently known to PRA Group, Inc. Actual events or results may differ materially from those expressed or implied in any such forward-looking statements as a result of various factors, including the risk factors and other risks that are described from time to time in PRA Group, Inc.'s filings with the Securities and Exchange Commission, including PRA Group, Inc.'s annual reports on Form 10-K, its quarterly reports on Form 10-Q and its current reports on Form 8-K, which are available through PRA Group, Inc.'s website and contain a detailed discussion of PRA Group, Inc.'s business, including risks and uncertainties that may affect future results.

Due to such uncertainties and risks, you are cautioned not to place undue reliance on such forward-looking statements, which speak only as of today. Information in this press release may be superseded by more recent information or statements, which may be disclosed in later press releases, subsequent filings with the Securities and Exchange Commission or otherwise. Except as required by law, PRA Group, Inc. assumes no obligation to publicly update or revise its forward-looking statements contained herein to reflect any change in PRA Group, Inc.'s expectations with regard thereto or to reflect any change in events, conditions or circumstances on which any such forward-looking statements are based, in whole or in part.

PRA Group, Inc. Unaudited Consolidated Income Statements (Amounts in thousands, except per share amounts)
	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
Revenues
Portfolio income	$      267,799		$     250,934		$      537,378		$       491,892
Changes in expected recoveries	96,924		33,292		140,810		61,214
Total portfolio revenue	364,723		284,226		678,188		553,106
Other revenue	7,451		3,462		8,519		4,201
Total revenues	372,174		287,688		686,707		557,307
Operating expenses
Compensation and benefits	70,377		75,724		141,115		149,047
Legal collection costs	52,525		37,583		100,983		70,977
Legal collection fees	18,386		15,625		35,457		30,855
Agency fees	23,214		22,688		47,795		44,056
Professional and outside services	22,512		21,071		43,396		42,174
Communication	7,664		9,417		16,683		19,894
Rent and occupancy	3,730		3,504		6,988		6,984
Depreciation, amortization and impairment of long-lived assets	4,724		2,503		6,432		6,272
Other operating expenses	15,760		14,462		31,322		27,360
Total operating expenses	218,892		202,577		430,171		397,619
Income from operations	153,282		85,111		256,536		159,688
Other income/(expense)
Interest expense, net	(64,363)		(62,361)		(127,881)		(123,331)
Gain on sale of equity method investment	—		38,403		—		38,403
Foreign exchange gain/(loss), net	(501)		50		553		(1)
Other	(92)		(75)		(346)		(255)
Income before income taxes	88,326		61,128		128,862		74,504
Income tax expense	29,385		15,415		38,149		19,727
Net income	58,941		45,713		90,713		54,777
Net income attributable to noncontrolling interests	1,024		3,339		4,586		8,744
Net income attributable to PRA Group, Inc.	$        57,917		$       42,374		$       86,127		$         46,033
Net income per common share attributable to PRA Group, Inc.
Basic	$          1.52		$          1.08		$          2.25		$           1.17
Diluted	$          1.51		$          1.08		$          2.24		$           1.16
Weighted average number of shares outstanding
Basic	38,104		39,323		38,236		39,436
Diluted	38,303		39,385		38,407		39,536

 

PRA Group, Inc. Consolidated Balance Sheets (Amounts in thousands)
	(unaudited)
	June 30, 2026		December 31, 2025
ASSETS
Cash and cash equivalents	$          132,431		$          104,409
Investments	145,473		66,628
Finance receivables, net	4,717,204		4,688,024
Income taxes receivable	20,912		17,702
Deferred tax assets, net	64,936		76,955
Right-of-use assets	27,836		29,206
Property and equipment, net	22,213		24,886
Goodwill	26,871		26,871
Prepaid expenses and other assets	80,891		68,641
Total assets	$        5,238,767		$        5,103,322
LIABILITIES AND EQUITY
Liabilities
Accrued expenses and accounts payable	$          129,175		$          131,812
Income taxes payable	36,356		29,845
Deferred tax liabilities, net	32,240		17,064
Lease liabilities	30,681		32,160
Interest-bearing deposits	100,460		106,148
Borrowings	3,759,353		3,697,338
Other liabilities	37,605		48,990
Total liabilities	4,125,870		4,063,357
Equity
Preferred stock, $0.01 par value, 2,000 shares authorized, no shares issued and outstanding	—		—
Common stock, $0.01par value, 100,000 shares authorized, 37,648 shares issued and outstanding as of June 30, 2026; 100,000 shares authorized, 38,453 shares issued and outstanding as of December 31, 2025	376		385
Additional paid-in capital	—		11,474
Retained earnings	1,338,814		1,255,007
Accumulated other comprehensive loss	(293,721)		(287,015)
Total stockholders' equity - PRA Group, Inc.	1,045,469		979,851
Noncontrolling interests	67,428		60,114
Total equity	1,112,897		1,039,965
Total liabilities and equity	$        5,238,767		$        5,103,322

 

Purchase Price Multiples as of June 30, 2026 (in thousands, except percentages)
Purchase Period	Purchase Price (1)(2)	Total Estimated Collections (3)	Estimated Remaining Collections (4)	Current Purchase Price Multiple	Original Purchase Price Multiple
U.S. Core
1996-2015	$           2,736,875	$        7,509,514	$           88,885	274 %	223 %
2016	400,545	820,678	31,073	205 %	195 %
2017	511,902	1,168,691	63,472	228 %	193 %
2018	604,669	1,376,064	87,769	228 %	199 %
2019	432,222	1,017,231	64,379	235 %	209 %
2020	415,384	940,625	80,613	226 %	215 %
2021	339,885	602,989	108,705	177 %	191 %
2022	275,433	429,264	124,219	156 %	164 %
2023	506,319	942,514	405,841	186 %	191 %
2024	727,672	1,679,034	993,374	231 %	211 %
2025	531,021	1,160,216	920,909	218 %	216 %
2026	195,696	407,198	392,750	208 %	208 %
Subtotal	7,677,623	18,054,018	3,361,989
U.S. Insolvency
1996-2015	1,472,385	2,806,860	—	191 %	154 %
2016	67,454	85,680	12	127 %	124 %
2017	275,257	359,737	126	131 %	125 %
2018	97,879	137,413	34	140 %	127 %
2019	120,845	164,637	90	136 %	128 %
2020	62,130	90,396	1,343	145 %	136 %
2021	54,898	73,841	3,209	135 %	136 %
2022	33,442	48,002	9,676	144 %	139 %
2023	61,242	80,697	33,878	132 %	136 %
2024	68,168	99,458	52,263	146 %	149 %
2025	59,091	93,346	79,735	158 %	160 %
2026	32,264	51,036	50,466	158 %	158 %
Subtotal	2,405,055	4,091,103	230,832
Total U.S.	10,082,678	22,145,121	3,592,821
Europe Core
2012-2015	1,225,893	3,793,428	693,140	309 %	190 %
2016	333,090	636,868	169,208	191 %	167 %
2017	252,174	375,695	82,828	149 %	144 %
2018	341,775	589,860	158,170	173 %	148 %
2019	518,610	917,830	287,242	177 %	152 %
2020	324,119	617,610	208,905	191 %	172 %
2021	412,411	743,743	334,084	180 %	170 %
2022	359,447	593,873	344,363	165 %	162 %
2023	410,593	750,983	482,569	183 %	169 %
2024	451,786	812,676	641,676	180 %	180 %
2025	512,533	938,291	790,093	183 %	185 %
2026	247,303	461,433	447,812	187 %	187 %
Subtotal	5,389,734	11,232,290	4,640,090
Europe Insolvency
2014-2015	29,849	49,127	—	165 %	135 %
2016	39,338	60,180	2,051	153 %	130 %
2017	39,235	54,033	1,161	138 %	128 %
2018	44,908	53,667	622	120 %	123 %
2019	77,218	115,235	3,878	149 %	130 %
2020	105,440	162,142	4,144	154 %	129 %
2021	53,230	82,097	7,770	154 %	134 %
2022	44,604	68,715	19,227	154 %	137 %
2023	46,558	74,356	35,647	160 %	138 %
2024	43,459	72,755	44,187	167 %	147 %
2025	20,760	30,862	25,485	149 %	145 %
2026	14,420	22,458	21,920	156 %	156 %
Subtotal	559,019	845,627	166,092
Total Europe	5,948,753	12,077,917	4,806,182
Other markets (5)	963,416	2,208,916	495,513	229 %	204 %
Total PRA Group	$         16,994,847	$      36,431,954	$        8,894,515

(1)	Includes the acquisition date finance receivables portfolios that were acquired through our business acquisitions.
(2)	Non-U.S. amounts, including purchase price adjustments that occur throughout the life of a portfolio, are presented at the exchange rate at the end of the respective period of purchase.
(3)	Non-U.S. amounts are presented at the period-end exchange rate for the respective period of purchase.
(4)	Non-U.S. amounts are presented at the June 30, 2026 exchange rate.
(5)	Reflects all vintages in South America, Canada and Australia.

 

Portfolio Financial Information (1)
(in thousands)
	June 30, 2026 (year-to-date)					As of June 30, 2026
Purchase Period	Cash Collections (2)	Portfolio Income (2)	Changes in Expected Recoveries (2)	Total Portfolio Revenue (2)		Net Finance Receivables (3)
U.S. Core
1996-2015	$       20,689	$       10,589	$       6,121	$       16,710		$       29,450
2016	5,175	2,958	340	3,298		13,032
2017	10,193	6,227	(1,249)	4,978		25,041
2018	16,399	7,906	1,328	9,234		42,763
2019	12,951	6,560	(771)	5,789		30,599
2020	17,289	8,301	(1,029)	7,272		40,157
2021	19,667	9,619	(1,052)	8,567		54,296
2022	21,478	8,915	(4,280)	4,635		72,290
2023	75,573	34,498	(10,805)	23,693		216,652
2024	191,009	91,298	9,645	100,943		521,294
2025	133,216	84,546	1,459	86,005		474,993
2026	14,448	13,730	(632)	13,098		194,158
Subtotal	538,087	285,147	(925)	284,222		1,714,725
U.S. Insolvency
1996-2015	406	—	405	405		—
2016	59	2	38	40		11
2017	376	17	243	260		111
2018	270	4	211	215		33
2019	754	10	556	566		88
2020	880	94	168	262		1,186
2021	3,965	321	(384)	(63)		3,053
2022	4,368	668	96	764		8,821
2023	9,447	1,999	343	2,342		29,679
2024	12,048	4,187	46	4,233		41,062
2025	8,432	5,485	(613)	4,872		55,943
2026	570	1,005	188	1,193		32,709
Subtotal	41,575	13,792	1,297	15,089		172,696
Total U.S.	579,662	298,939	372	299,311		1,887,421
Europe Core
2012-2015	61,643	33,175	63,974	97,149		180,405
2016	13,511	5,487	20,775	26,262		91,080
2017	7,298	2,534	3,658	6,192		52,160
2018	16,225	5,781	5,941	11,722		92,394
2019	28,033	9,302	17,828	27,130		188,972
2020	19,976	8,144	5,302	13,446		125,429
2021	28,007	12,137	6,374	18,511		199,304
2022	31,880	12,504	(1,447)	11,057		217,449
2023	42,435	17,442	21,478	38,920		279,253
2024	59,650	26,827	164	26,991		362,683
2025	69,949	34,057	(6,091)	27,966		430,938
2026	13,831	5,543	1,770	7,313		240,509
Subtotal	392,438	172,933	139,726	312,659		2,460,576
Europe Insolvency
2014-2015	162	—	162	162		—
2016	207	36	393	429		337
2017	332	18	748	766		610
2018	430	17	322	339		454
2019	1,399	158	586	744		3,111
2020	3,433	258	(6)	252		3,825
2021	5,687	470	1,798	2,268		7,025
2022	6,740	1,027	2,744	3,771		16,675
2023	8,348	1,644	6,984	8,628		29,984
2024	7,937	2,505	6,769	9,274		33,743
2025	2,987	1,378	610	1,988		19,038
2026	543	361	197	558		14,391
Subtotal	38,205	7,872	21,307	29,179		129,193
Total Europe	430,643	180,805	161,033	341,838		2,589,769
Other markets (4)	100,168	57,634	(20,595)	37,039		240,014
Total PRA Group	$      1,110,473	$       537,378	$      140,810	$       678,188		$      4,717,204

(1)	Includes the nonperforming loan portfolios that were acquired through our business acquisitions.
(2)	Non-U.S. amounts are presented using the average exchange rates during the current reporting period.
(3)	Non-U.S. amounts are presented at the June 30, 2026 exchange rate.
(4)	Reflects all vintages in South America, Canada and Australia.

 

Cash Collections by Year, By Year of Purchase (1) as of June 30, 2026
						(in millions)
Purchase Period	Purchase Price (2)(3)	1996-2015	2016	2017	2018	2019	2020	2021	2022	2023	2024	2025	2026	Total
U.S. Core
1996-2015	$ 2,736.9	$ 5,186.4	$ 673.8	$ 479.4	$ 337.7	$ 230.9	$ 149.3	$  98.2	$  67.1	$  51.7	$  64.7	$  53.6	$  20.7	$ 7,413.5
2016	400.5	—	86.1	195.3	160.1	116.6	88.7	59.9	29.1	17.6	18.1	12.9	5.2	789.6
2017	511.9	—	—	94.3	264.4	247.1	185.6	124.8	73.1	41.6	37.5	26.6	10.2	1105.2
2018	604.7	—	—	—	106.3	320.2	304.7	214.8	131.6	83.2	68.1	42.9	16.4	1288.2
2019	432.2	—	—	—	—	93.4	282.2	237.4	141.7	86.1	61.8	37.3	13.0	952.9
2020	415.4	—	—	—	—	—	127.4	274.7	185.4	121.3	83.6	50.4	17.3	860.1
2021	339.9	—	—	—	—	—	—	73.8	149.9	115.3	82.8	52.8	19.7	494.3
2022	275.4	—	—	—	—	—	—	—	34.9	102.4	87.8	58.5	21.5	305.1
2023	506.3	—	—	—	—	—	—	—	—	63.5	211.8	185.9	75.6	536.8
2024	727.7	—	—	—	—	—	—	—	—	—	119.8	374.9	191.0	685.7
2025	531.0	—	—	—	—	—	—	—	—	—	—	106.1	133.2	239.3
2026	195.7	—	—	—	—	—	—	—	—	—	—	—	14.3	14.3
Subtotal	7,677.6	5,186.4	759.9	769.0	868.5	1,008.2	1,137.9	1,083.6	812.8	682.7	836.0	1,001.9	538.1	14,685.0
U.S. Insolvency
1996-2015	1,472.4	2,290.4	230.4	142.6	78.6	39.1	13.6	4.5	2.9	1.8	1.4	1.0	0.4	2,806.7
2016	67.5	—	10.1	18.9	18.2	16.4	13.0	6.6	1.3	0.6	0.4	0.1	0.1	85.7
2017	275.3	—	—	49.1	97.3	80.9	58.8	44.0	20.8	4.9	2.5	1.0	0.4	359.7
2018	97.9	—	—	—	6.7	27.4	30.5	31.6	24.6	12.7	2.5	1.0	0.3	137.3
2019	120.8	—	—	—	—	13.4	30.9	37.9	36.8	28.0	14.2	2.7	0.8	164.7
2020	62.1	—	—	—	—	—	6.5	16.1	20.4	19.5	17.0	8.7	0.9	89.1
2021	54.9	—	—	—	—	—	—	4.5	17.7	17.4	15.2	11.8	4.0	70.6
2022	33.4	—	—	—	—	—	—	—	3.2	9.2	11.1	10.5	4.4	38.4
2023	61.2	—	—	—	—	—	—	—	—	4.5	14.8	18.0	9.4	46.7
2024	68.2	—	—	—	—	—	—	—	—	—	12.1	23.1	12.0	47.2
2025	59.1	—	—	—	—	—	—	—	—	—	—	5.2	8.4	13.6
2026	32.3	—	—	—	—	—	—	—	—	—	—	—	0.5	0.5
Subtotal	2,405.1	2,290.4	240.5	210.6	200.8	177.2	153.3	145.2	127.7	98.6	91.2	83.1	41.6	3,860.2
Total U.S.	10,082.7	7,476.8	1,000.4	979.6	1,069.3	1,185.4	1,291.2	1,228.8	940.5	781.3	927.2	1,085.0	579.7	18,545.2
Europe Core
2012-2015	1,225.8	538.4	350.2	310.3	290.5	241.4	206.0	202.4	164.3	142.4	132.1	126.9	61.6	2,766.5
2016	333.1	—	40.4	78.9	72.6	58.0	48.3	46.7	36.9	29.7	27.4	27.1	13.5	479.5
2017	252.2	—	—	17.9	56.0	44.1	36.1	34.8	25.2	20.2	17.9	15.7	7.3	275.2
2018	341.8	—	—	—	24.3	88.7	71.3	69.1	50.7	41.6	37.1	34.3	16.2	433.3
2019	518.6	—	—	—	—	48.0	125.7	121.4	89.8	75.1	68.2	61.7	28.0	617.9
2020	324.1	—	—	—	—	—	32.3	91.7	69.0	56.1	50.1	45.1	20.0	364.3
2021	412.4	—	—	—	—	—	—	48.5	89.9	73.0	66.6	59.7	28.0	365.7
2022	359.4	—	—	—	—	—	—	—	33.9	83.8	74.7	67.8	31.9	292.1
2023	410.6	—	—	—	—	—	—	—	—	50.2	103.1	93.2	42.4	288.9
2024	451.9	—	—	—	—	—	—	—	—	—	46.3	135.6	59.7	241.6
2025	512.5	—	—	—	—	—	—	—	—	—	—	57.1	69.9	127.0
2026	247.3	—	—	—	—	—	—	—	—	—	—	—	13.9	13.9
Subtotal	5,389.7	538.4	390.6	407.1	443.4	480.2	519.7	614.6	559.7	572.1	623.5	724.2	392.4	6,265.9
Europe Insolvency
2014-2015	29.9	7.3	8.3	8.2	7.4	5.4	3.7	1.9	0.8	0.6	0.4	0.3	0.2	44.5
2016	39.3	—	6.2	12.7	12.9	10.7	7.9	6.0	2.7	1.3	0.8	0.6	0.2	62.0
2017	39.2	—	—	1.2	7.9	9.2	9.8	9.4	6.5	3.8	1.5	1.0	0.3	50.6
2018	44.9	—	—	—	0.6	8.4	10.3	11.7	9.8	7.2	3.5	1.4	0.4	53.3
2019	77.2	—	—	—	—	5.0	21.1	23.9	21.0	17.5	12.9	6.1	1.4	108.9
2020	105.4	—	—	—	—	—	6.0	34.6	34.1	29.7	25.5	15.5	3.4	148.8
2021	53.2	—	—	—	—	—	—	5.5	14.4	14.7	15.4	14.6	5.7	70.3
2022	44.6	—	—	—	—	—	—	—	4.5	12.4	15.2	15.2	6.7	54.0
2023	46.7	—	—	—	—	—	—	—	—	4.2	12.7	15.7	8.3	40.9
2024	43.4	—	—	—	—	—	—	—	—	—	9.5	15.2	7.9	32.6
2025	20.8	—	—	—	—	—	—	—	—	—	—	1.9	3.0	4.9
2026	14.4	—	—	—	—	—	—	—	—	—	—	—	0.7	0.7
Subtotal	559.0	7.3	14.5	22.1	28.8	38.7	58.8	93.0	93.8	91.4	97.4	87.5	38.2	671.5
Total Europe	5,948.7	545.7	405.1	429.2	472.2	518.9	578.5	707.6	653.5	663.5	720.9	811.7	430.6	6,937.4
Other markets (3)	963.4	33.9	86.5	103.9	83.7	137.0	135.9	125.4	135.0	215.9	220.5	210.7	100.2	1,588.6
Total PRA Group	$ 16,994.8	$ 8,056.4	$ 1,492.0	$ 1,512.7	$  1,625.2	$ 1,841.3	$ 2,005.6	$ 2,061.8	$ 1,729.0	$ 1,660.7	$ 1,868.6	$ 2,107.4	$ 1,110.5	$ 27,071.2

(1)	Non-U.S. amounts are presented at the average exchange rates during the cash collections period.
(2)	Includes the acquisition date finance receivables portfolios acquired through our business acquisitions.
(3)	Non-U.S. amounts, including purchase price adjustments that occur throughout the life of a portfolio, are presented at the exchange rate at the end of the respective period of purchase.
(4)	Reflects all vintages in South America, Canada and Australia.

Use of Non-GAAP Financial Measures

The Company reports its financial results in accordance with U.S. generally accepted accounting principles (GAAP). However, management uses certain non-GAAP financial measures, including the non-GAAP financial measures referred to below, internally to evaluate the Company's performance and to set performance goals. Management believes these non-GAAP financial measures are useful to investors in evaluating the Company's performance and operational effectiveness and provide for greater comparability. These non-GAAP financial measures should not be considered as an alternative to the most directly comparable financial measure determined in accordance with GAAP and may not be comparable to the calculation of similarly titled financial measures reported by other companies. Included below are reconciliations of the non-GAAP financial measures to the most directly comparable financial measures calculated in accordance with GAAP.

Adjusted EBITDA

The Company presents Adjusted EBITDA because the Company considers it an important supplemental measure of its operational and financial performance. Adjusted EBITDA is calculated as Net loss attributable to PRA Group, Inc. plus Income tax expense; less Foreign exchange gain; plus Interest expense, net; plus Other expense; plus Depreciation and amortization; plus Impairment of real estate; plus Goodwill impairment; plus Net income attributable to noncontrolling interests; less Gain on sale of equity method investment; and plus Recoveries collected and applied to Finance receivables, net less Changes in expected recoveries. Management believes Adjusted EBITDA helps provide enhanced period-to-period comparability of the Company's operational and financial performance as it excludes certain items whose fluctuations from period-to-period do not necessarily correspond to changes in the operations of the Company's business and is useful to investors as other companies in the industry report similar financial measures.

The following table provides a reconciliation of Net loss attributable to PRA Group, Inc. to Adjusted EBITDA for the last twelve months (LTM) ended June 30, 2026 and for the year ended December 31, 2025.

	LTM	Year Ended
Adjusted EBITDA Reconciliation ($ in thousands)	June 30, 2026	December 31, 2025
Net loss attributable to PRA Group, Inc.	$               (265,048)	$               (305,142)
Adjustments:
Income tax expense	65,157	46,735
Foreign exchange gain	(1,309)	(755)
Interest expense, net	256,338	251,788
Other expense	427	336
Depreciation and amortization	7,188	9,035
Impairment of real estate	3,411	1,404
Goodwill impairment	412,611	412,611
Net income attributable to noncontrolling interests	11,010	15,168
Gain on sale of equity method investment	—	(38,403)
Recoveries collected and applied to Finance receivables, net less Changes in expected recoveries	869,128	922,697
Adjusted EBITDA	$              1,358,913	$              1,315,474

Adjusted net income attributable to PRA, ROATE and Adjusted ROATE

The Company uses Net income attributable to PRA Group, Inc. excluding the impact of certain transactions that are unusual or infrequent in nature and not reflective of our ongoing operations ("Adjusted net income attributable to PRA") to monitor and evaluate our operating performance and allow for better comparability. Management believes Adjusted net income attributable to PRA is a useful financial measure for investors in evaluating our operating results.

Adjusted net income attributable to PRA is calculated as Net income attributable to PRA Group, Inc. excluding the impact of certain transactions that are unusual or infrequent in nature and not reflective of our ongoing operations.

In addition, the Company uses return on average tangible equity ("ROATE") to monitor and evaluate operating performance relative to the Company's equity. Management believes ROATE is a useful financial measure for investors in evaluating the effective use of equity, and is an important component of its long-term shareholder return. ROATE is calculated by dividing annualized Net income attributable to PRA Group, Inc. by average Total stockholders' equity - PRA Group, Inc. less average goodwill and average other intangible assets ("Average tangible equity").

ROATE may include certain items that are not indicative of the ongoing operating results of the Company's business. Accordingly, the Company also uses Adjusted ROATE to monitor and evaluate operating performance relative to the Company's equity. Management believes that Adjusted ROATE is a useful financial measure for investors because it is based on Adjusted net income attributable to PRA. Adjusted ROATE is calculated by dividing annualized Adjusted net income attributable to PRA by average tangible equity. Return on equity ("ROE") is calculated by dividing Net income attributable to PRA Group, Inc. by average Total stockholders' equity - PRA Group, Inc.

The following table provides a reconciliation of Total stockholders' equity - PRA Group, Inc. as reported in accordance with GAAP to Average tangible equity, a reconciliation of Net income attributable to PRA Group, Inc. to Adjusted net income attributable to PRA Group, Inc., and provides our ROE, ROATE and Adjusted ROATE for the periods indicated (in thousands, except for ratio data):

						Average Tangible Equity Reconciliation (1)
		Balance as of Period End				Second Quarter				Year-to-Date
		June 30, 2026		June 30, 2025		2026		2025		2026		2025
Total stockholders' equity - PRA Group, Inc.		$ 1,045,469		$ 1,336,925		$ 1,023,879		$ 1,278,016		$ 1,009,202		$ 1,230,355
Goodwill		26,871		439,449		26,871		430,082		26,871		418,840
Other intangible assets		1,282		1,541		1,313		1,515		1,354		1,494
Average tangible equity						$  995,695		$  846,419		$ 980,977		$ 810,021
						ROE and ROATE (2)
						Second Quarter				Year-to-Date
						2026		2025		2026		2025
Net income attributable to PRA Group, Inc.						$ 57,917		$ 42,374		$ 86,127		$ 46,033
Return on equity						22.6 %		13.3 %		17.1 %		7.5 %
Return on average tangible equity						23.3 %		20.0 %		17.6 %		11.4 %
						Adjusted Net Income Attributable to PRA Group, Inc. Reconciliation and Adjusted ROATE (3)
						Second Quarter				Year-to-Date
						2026		2025		2026		2025
Net income attributable to PRA Group, Inc.						$ 57,917		$ 42,374		$ 86,127		$ 46,033
Gain on sale of equity method investment						—		(38,403)		—		(38,403)
Tax effect of adjusting items (4)						—		8,717		—		8,717
Adjusted net income attributable to PRA Group, Inc.						$ 57,917		$ 12,688		$ 86,127		$ 16,347
Adjusted ROATE						23.3 %		6.0 %		17.6 %		4.0 %

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

(1)	Amounts represent the average balances for the respective periods.
(2)	Based on annualized Net income attributable to PRA Group, Inc.
(3)	Based on annualized Adjusted net income attributable to PRA Group, Inc.
(4)	Based on the annual effective tax rate and pretax income excluding the effect of the adjusting items.

View original content to download multimedia:https://www.prnewswire.com/news-releases/pra-group-reports-second-quarter-2026-results-302845380.html

SOURCE PRA Group, Inc.

FAQ

How did PRA Group (NASDAQ: PRAA) perform financially in Q2 2026?

PRA Group reported Q2 2026 net income of $58 million, or $1.51 diluted EPS. According to PRA Group, total revenues were $372 million, with total portfolio revenue of $365 million and operating income of $153 million for the quarter.

What drove PRA Group’s $58 million net income in Q2 2026?

Net income of $58 million was supported by higher portfolio revenue and increased ERC. According to PRA Group, total portfolio revenue rose 28% to $365 million, helped by a roughly $349 million increase in European ERC and 7% growth in portfolio income.

What is PRA Group’s ERC as of Q2 2026 and how did it change?

Estimated remaining collections (ERC) reached $8.9 billion at Q2 2026, up 7% year over year. According to PRA Group, this included an approximately $349 million increase in European ERC following a comprehensive portfolio review reflecting sustained cash overperformance.

How much did PRA Group invest in portfolio purchases in Q2 2026?

PRA Group purchased about $297 million in nonperforming loan portfolios in Q2 2026. According to PRA Group, these purchases spanned U.S. core and insolvency, Europe core and insolvency, and other markets, and were described as disciplined against return thresholds.

What does PRA Group’s new $150 million share repurchase program mean for PRAA shareholders?

The board authorized a new $150 million share repurchase program with no expiration. According to PRA Group, it adds flexibility to capital deployment, complements the $10 million repurchased in Q2 2026, and is subject to market conditions and board discretion.

What is PRA Group’s credit availability and leverage capacity as of June 30, 2026?

Total credit facility availability was $998 million as of June 30, 2026. According to PRA Group, this included $733 million based on current ERC and $265 million of additional availability, all subject to borrowing base limits and debt covenants.

How did PRA Group’s operating expenses and interest costs change in Q2 2026?

Operating expenses increased to $219 million, up from $203 million in Q2 2025, while net interest expense rose to $64 million. According to PRA Group, the expense increase reflected higher legal collection costs and about $5 million of U.S. reorganization-related charges.