Earnings rebound at PRA Group (NASDAQ: PRAA) as collections and ERC rise

Rhea-AI Filing Summary

PRA Group, Inc. reported significantly stronger results for the quarter ended March 31, 2026, driven by higher collections and better portfolio performance in the U.S. and Europe. Net income attributable to PRA Group rose to $28.2 million from $3.7 million a year earlier, with diluted EPS increasing to $0.73 from $0.09.

Total revenues grew 16.7% to $314.5 million, as portfolio income increased and changes in expected recoveries contributed $43.9 million, reflecting collections outperforming forecasts and upward revisions to future recovery expectations, especially in Europe. Operating expenses rose 8.3%, mainly from higher legal collection and agency costs tied to expanded legal activity, but grew slower than revenue, lifting income from operations to $103.3 million from $74.6 million.

Cash collections reached $551.9 million, up 11.0%, and estimated remaining collections stood at $8.55 billion, with roughly half in Europe and 43% in the U.S. Finance receivables, net, were $4.64 billion, and borrowings were $3.78 billion. The company repurchased $10.0 million of stock and maintained ample liquidity, with nearly $1.0 billion of credit availability and a recently extended European revolving credit facility.

Insights

Credit & specialty finance analyst

Quarter shows strong earnings rebound on healthier collections and disciplined purchasing.

PRA Group (PRAA) delivered a sharp earnings improvement, with net income attributable to the company rising to $28.2 million and diluted EPS at $0.73. Portfolio revenue increased 16.6% as both the U.S. and Europe benefited from stronger cash collections and positive changes in expected recoveries.

Cash collections grew 11.0% to $551.9 million, while portfolio purchases fell 24.3% to $220.9 million, reflecting a disciplined focus on purchase price multiples and net returns rather than volume. Estimated remaining collections of $8.55 billion and finance receivables of $4.64 billion underline a sizeable future revenue base.

Leverage remains high with borrowings of $3.78 billion, but liquidity is solid: cash of $124.8 million plus total credit availability near $996 million. Extending the European revolving facility to 2031 stabilizes funding, while share repurchases and last-12-month Adjusted EBITDA of $1.35 billion point to continued cash generation, even though prior goodwill impairment keeps recent 12‑month GAAP results in a loss position.

Key Figures

Total revenues Q1 2026: $314.533M Net income attributable to PRA: $28.210M Diluted EPS: $0.73 +5 more

8 metrics

Total revenues Q1 2026 $314.533M Quarter ended March 31, 2026; up 16.7% year over year

Net income attributable to PRA $28.210M Quarter ended March 31, 2026; vs $3.659M in 2025

Diluted EPS $0.73 Quarter ended March 31, 2026; vs $0.09 in 2025

Cash collections $551.928M Quarter ended March 31, 2026; up 11.0% year over year

Estimated remaining collections $8.549B As of March 31, 2026 across all geographies

Finance receivables, net $4.637B As of March 31, 2026 balance sheet

Borrowings $3.779B As of March 31, 2026 including credit facilities and notes

Adjusted EBITDA (LTM) $1.349B Last 12 months ended March 31, 2026

Key Terms

nonperforming loan portfolios, Estimated remaining collections, purchase price multiple, goodwill impairment, +2 more

6 terms

nonperforming loan portfolios financial

"The Company's primary business is the purchase, collection and management of nonperforming loan portfolios."

A nonperforming loan portfolio is a group of loans for which borrowers are no longer making the required interest or principal payments, typically because they are overdue or in default. For investors, these portfolios matter because they signal rising credit losses and reduced future cash flow from a lender; like a basket of unpaid bills that may need to be written off or sold at a steep discount, they can erode a bank’s profits, capital and stock value.

Estimated remaining collections financial

"Estimated remaining collections (period-end) | 8,548,548 | 7,805,132 | 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.

purchase price multiple financial

"the PPM for our global Core vintage was 1.96x, slightly lower than the 2.01x for Q1 2025."

Purchase price multiple is the ratio of what a buyer pays for a company to a simple annual measure of that company’s income or cash flow, such as yearly earnings or operating cash. It tells investors how many years of the company’s current earnings are needed to 'pay back' the purchase price, much like comparing the price of a house to its annual rent. A higher multiple means the buyer paid more relative to current profits, signaling higher valuation and greater expectations for future growth.

goodwill impairment financial

"further impairment of goodwill; •our ability to manage risks associated with our international operations;"

Goodwill impairment occurs when a company’s valued reputation or brand strength, known as goodwill, is found to be worth less than previously recorded on its financial statements. This usually happens when the company's performance declines or market conditions change, signaling that the expected benefits from acquisitions or brand value are no longer as strong. It matters to investors because it can indicate that a company's assets are less valuable than initially thought, potentially affecting its overall financial health.

cash flow hedges financial

"The effects of interest rate swaps designated as cash flow hedging instruments for the three months ended March 31, 2026"

A cash flow hedge is an accounting label companies use when they enter financial contracts—like currency or interest-rate agreements—to protect expected future cash payments or receipts from unpredictable moves. For investors, it signals that the company is trying to smooth out future cash variability (think of locking in a price to avoid surprises), which can reduce reported profit swings but also means the company has exposure to derivative instruments and their associated risks.

Adjusted EBITDA financial

"Adjusted EBITDA of $1.3 billion for the last 12 months, an increase of 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.

10-Q Quarterly Reports: What Changes Quarter to Quarter →

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the quarterly period ended March 31, 2026

☐ Transition Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the transition period from ________ to ________

Commission File Number: 000-50058

PRA Group, Inc.

(Exact name of registrant as specified in its charter)

Delaware

75-3078675

(State or other jurisdiction of incorporation or organization)

(I.R.S. Employer Identification No.)

120 Corporate Boulevard

Norfolk, Virginia 23502

(Address of principal executive offices)

(888) 772-7326

(Registrant's Telephone No., including area code)

Not Applicable

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class			Trading Symbol(s)			Name of each exchange on which registered
Common Stock, $0.01 par value per share			PRAA			NASDAQ Global Select Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes  þ   No  ¨

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes  þ   No  ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer  þ   Accelerated filer  ¨   Non-accelerated filer  ¨   Smaller reporting company  ☐ Emerging growth company  ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes  ☐   No  þ

The number of shares of the registrant's common stock outstanding as of May 1, 2026 was 38,140,888.

PRA Group, Inc.

Form 10-Q for the Quarterly Period Ended March 31, 2026

TABLE OF CONTENTS

PART I. FINANCIAL INFORMATION						Page
Item 1.			Financial Statements			3
			Consolidated Balance Sheets			3
			Consolidated Income Statements			4
			Consolidated Statements of Comprehensive Income			5
			Consolidated Statements of Changes in Equity			6
			Consolidated Statements of Cash Flows			7
			Notes to Consolidated Financial Statements			8
			Note 1. Organization and Business			8
			Note 2. Finance Receivables, net			8
			Note 3. Investments			10
			Note 4. Goodwill			10
			Note 5. Borrowings			11
			Note 6. Derivatives			11
			Note 7. Fair Value			12
			Note 8. Accumulated Other Comprehensive Loss			14
			Note 9. Stockholders' Equity			14
			Note 10. Earnings per Share			14
			Note 11. Income Taxes			15
			Note 12. Commitments and Contingencies			15
			Note 13. Business Segments			15
			Note 14. Recently Issued Accounting Standards			17
			Note 15. Subsequent Event			17
Item 2.			Management's Discussion and Analysis of Financial Condition and Results of Operations			18
Item 3.			Quantitative and Qualitative Disclosures About Market Risk			35
Item 4.			Controls and Procedures			35
PART II. OTHER INFORMATION
Item 1.			Legal Proceedings			36
Item 1A.			Risk Factors			36
Item 2.			Unregistered Sales of Equity Securities and Use of Proceeds			36
Item 3.			Defaults Upon Senior Securities			36
Item 4.			Mine Safety Disclosures			36
Item 5.			Other Information			36
Item 6.			Exhibits			36
Signatures						38

2

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

PRA Group, Inc.

Consolidated Balance Sheets

March 31, 2026 and December 31, 2025

(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, $0.01 par 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

The accompanying notes are an integral part of these Consolidated Financial Statements.

3

PRA Group, Inc.

Consolidated Income Statements

For the Three Months Ended March 31, 2026 and 2025

(in thousands, except per share amounts)

(unaudited)

						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

The accompanying notes are an integral part of these Consolidated Financial Statements.

4

PRA Group, Inc.

Consolidated Statements of Comprehensive Income

For the Three Months Ended March 31, 2026 and 2025

(in thousands)

(unaudited)

			Three Months Ended March 31,
			2026						2025
Net income			$	31,772					$	9,064
Other comprehensive income/(loss), net of tax
Foreign currency translation adjustments			(2,488)						85,298
Cash flow hedges			8,336						(1,942)
Debt securities available-for-sale			(140)						(181)
Other comprehensive income			5,708						83,175
Total comprehensive income			37,480						92,239
Comprehensive income attributable to noncontrolling interests			6,855						10,099
Comprehensive income attributable to PRA Group, Inc.			$	30,625					$	82,140

The accompanying notes are an integral part of these Consolidated Financial Statements.

5

PRA Group, Inc.

Consolidated Statements of Changes in Equity

For the Three Months Ended March 31, 2026 and 2025

(in thousands)

(unaudited)

			Common Stock												Additional Paid-In						Retained						Accumulated Other Comprehensive						Noncontrolling						Total
			Shares						Amount						Capital						Earnings						Loss						Interests						Equity
Balance as of December 31, 2025			38,453						$	385					$	11,474					$	1,255,007					$	(287,015)					$	60,114					$	1,039,965
Net income			—						—						—						28,210						—						3,562						31,772
Other comprehensive income, net of tax			—						—						—						—						2,416						3,292						5,708
Distributions to noncontrolling interests			—						—						—						—						—						(702)						(702)
Vesting of restricted stock			235						1						(1)						—						—						—						—
Repurchase and cancellation of common stock			(547)						(5)						(9,995)						—						—						—						(10,000)
Share-based compensation expense			—						—						4,513						—						—						—						4,513
Employee stock relinquished for payment of taxes			—						—						(2,702)						—						—						—						(2,702)
Balance as of March 31, 2026			38,141						$	381					$	3,289					$	1,283,217					$	(284,599)					$	66,266					$	1,068,554

			Common Stock												Additional Paid-In						Retained						Accumulated Other Comprehensive						Noncontrolling						Total
			Shares						Amount						Capital						Earnings						Loss						Interests						Equity
Balance as of December 31, 2024			39,510						$	395					$	17,882					$	1,560,149					$	(443,394)					$	58,575					$	1,193,607
Net income			—						—						—						3,659						—						5,405						9,064
Other comprehensive income, net of tax			—						—						—						—						78,481						4,694						83,175
Distributions to noncontrolling interests			—						—						—						—						—						(7,264)						(7,264)
Vesting of restricted stock			142						2						(2)						—						—						—						—
Share-based compensation expense			—						—						3,788						—						—						—						3,788
Employee stock relinquished for payment of taxes			—						—						(1,852)						—						—						—						(1,852)
Balance as of March 31, 2025			39,652						$	397					$	19,816					$	1,563,808					$	(364,913)					$	61,410					$	1,280,518

The accompanying notes are an integral part of these Consolidated Financial Statements.

6

PRA Group, Inc.

Consolidated Statements of Cash Flows

For the Three Months Ended March 31, 2026 and 2025

(in thousands)

(unaudited)

			Three Months Ended March 31,
			2026						2025
CASH FLOWS FROM OPERATING ACTIVITIES
Net income			$	31,772					$	9,064
Adjustments to reconcile net income to net cash used in operating activities:
Share-based compensation			4,513						3,788
Depreciation, amortization and impairment of long-lived assets			1,708						3,769
Amortization of debt premium and issuance costs			2,184						1,901
Changes in expected recoveries			(43,886)						(27,922)
Deferred income taxes			5,415						786
Net unrealized foreign currency transaction gain			(6,658)						(5,480)
Other			(96)						1,291
Changes in operating assets and liabilities:
Prepaid expenses and other assets			(3,292)						956
Accrued expenses, accounts payable and other liabilities			33,277						(40,733)
Net cash provided by/(used in) operating activities			24,937						(52,580)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of property and equipment, net			(1,410)						(900)
Purchases of nonperforming loan portfolios			(223,122)						(289,595)
Recoveries collected and applied to Finance receivables, net			287,591						265,118
Purchases of investments			(136,315)						(47,733)
Proceeds from sales and maturities of investments			54,817						48,725
Net cash used in investing activities			(18,439)						(24,385)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from lines of credit			226,230						190,826
Principal payments on lines of credit			(124,460)						(99,923)
Principal payments on long-term debt			(2,500)						(2,500)
Repurchases of common stock			(10,000)						—
Payments of origination costs and fees			(30)						(878)
Tax withholdings related to share-based payments			(2,702)						(1,852)
Distributions to noncontrolling interests			(702)						(7,264)
Net increase/(decrease) in interest-bearing deposits			(25,413)						7,221
Net cash provided by financing activities			60,423						85,630
Effect of foreign exchange rates			10,733						14,216
Net increase in cash, cash equivalents and restricted cash			77,654						22,881
Cash, cash equivalents and restricted cash, beginning of period			108,643						107,431
Cash, cash equivalents and restricted cash, end of period			$	186,297					$	130,312
Supplemental disclosure of cash flow information
Cash paid for interest			$	83,846					$	86,878
Cash paid for income taxes			55						6,505
Reconciliation to Balance Sheet accounts
Cash and cash equivalents			$	124,778					$	128,654
Restricted cash included in Prepaid expenses and other assets			61,519						1,658
Cash, cash equivalents and restricted cash			$	186,297					$	130,312

The accompanying notes are an integral part of these Consolidated Financial Statements.

7

PRA Group, Inc.

Notes to Consolidated Financial Statements

(Unaudited)

Note 1. Organization and Business

As used herein, the terms "PRA Group," the "Company," or similar terms refer to PRA Group, Inc. and its subsidiaries.

Nature of operations

PRA Group, Inc. is a specialty finance company headquartered in Norfolk, Virginia and incorporated in Delaware. The Company's primary business is the purchase, collection and management of nonperforming loan portfolios. Most of the Company's purchases are from credit originators who have chosen not to pursue, or have been unsuccessful in collecting, the full balance owed to them ("Core" accounts). To a lesser extent, it also purchases loans in situations where the customer is involved in a bankruptcy or similar proceeding ("Insolvency" accounts). The Company's principal markets are the United States (“U.S.”) and Europe, and on a significantly smaller scale, it also operates in South America, Canada and Australia. As part of an ancillary business, the Company purchases and provides fee-based services for class action claims recoveries in the U.S.

Basis of presentation

The accompanying unaudited Consolidated Financial Statements have been prepared in accordance with U.S. generally accepted accounting principles ("GAAP") and the instructions for Quarterly Reports on Form 10-Q of the U.S. Securities and Exchange Commission ("SEC"). Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments, consisting of normal and recurring items, necessary for a fair presentation have been included. These unaudited Consolidated Financial Statements include the accounts of PRA Group and other entities in which the Company has a controlling interest. All significant intercompany accounts and transactions have been eliminated. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported and disclosed, and realized results could differ from those estimates and assumptions.

These unaudited Consolidated Financial Statements may not be indicative of future results and should be read in conjunction with the audited Consolidated Financial Statements and notes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2025 (the "2025 Form 10-K").

Prior period reclassifications

In the Consolidated Statements of Changes in Equity, certain prior period amounts have been reclassified for consistency with the current period presentation.

Note 2. Finance Receivables, net

Finance receivables, net consisted of the following as of March 31, 2026 and December 31, 2025 (in thousands):

			March 31, 2026						December 31, 2025
Amortized cost			$	—					$	—
Negative allowance for expected recoveries			4,637,094						4,688,024
Balance as of end of period			$	4,637,094					$	4,688,024

Changes in Finance receivables, net for the three months ended March 31, 2026 and 2025 were as follows (in thousands):

			Three Months Ended March 31,
			2026																					2025
			Core						Insolvency						Total									Core						Insolvency						Total
Balance as of beginning of period			$	4,383,201					$	304,823					$	4,688,024								$	3,809,723					$	331,019					$	4,140,742
Initial negative allowance for expected recoveries on current period purchases (1)			202,950						17,900						220,850									273,893						17,809						291,702
Recoveries collected and applied to Finance receivables, net (2)			(255,906)						(31,685)						(287,591)									(231,483)						(33,635)						(265,118)
Changes in expected recoveries (3)			40,354						3,532						43,886									26,325						1,597						27,922
Foreign currency translation adjustment			(25,774)						(2,301)						(28,075)									108,406						4,680						113,086
Balance as of end of period			$	4,344,825					$	292,269					$	4,637,094								$	3,986,864					$	321,470					$	4,308,334

8

(1) Initial negative allowance for expected recoveries on current period purchases

The initial negative allowance for expected recoveries on purchases made during the three months ended March 31, 2026 and 2025 was as follows (in thousands):

			Three Months Ended March 31,
			2026																					2025
			Core						Insolvency						Total									Core						Insolvency						Total
Allowance for credit losses at acquisition			$	(1,190,672)					$	(61,722)					$	(1,252,394)								$	(1,417,971)					$	(73,592)					$	(1,491,563)
Writeoffs, net			1,190,672						61,722						1,252,394									1,417,971						73,592						1,491,563
Expected recoveries			202,950						17,900						220,850									273,893						17,809						291,702
Initial negative allowance for expected recoveries on current period purchases			$	202,950					$	17,900					$	220,850								$	273,893					$	17,809					$	291,702

The purchase price for purchases made during the three months ended March 31, 2026 and 2025 was as follows (in thousands):

			Three Months Ended March 31,
			2026																					2025
			Core						Insolvency						Total									Core						Insolvency						Total
Face value			$	1,587,851					$	90,086					$	1,677,937								$	1,966,064					$	101,474					$	2,067,538
Noncredit discount			(194,229)						(10,464)						(204,693)									(274,200)						(10,073)						(284,273)
Allowance for credit losses at acquisition			(1,190,672)						(61,722)						(1,252,394)									(1,417,971)						(73,592)						(1,491,563)
Purchase price			$	202,950					$	17,900					$	220,850								$	273,893					$	17,809					$	291,702

(2) Recoveries collected and applied to Finance receivables, net

Recoveries collected and applied to Finance receivables, net for the three months ended March 31, 2026 and 2025 were as follows (in thousands):

			Three Months Ended March 31,
			2026																					2025
			Core						Insolvency						Total									Core						Insolvency						Total
Recoveries collected (a)			$	514,154					$	43,016					$	557,170								$	460,969					$	45,107					$	506,076
Amounts reclassified to portfolio income (b)			(258,248)						(11,331)						(269,579)									(229,486)						(11,472)						(240,958)
Recoveries collected and applied to Finance receivables, net			$	255,906					$	31,685					$	287,591								$	231,483					$	33,635					$	265,118

(a)Includes cash collections, buybacks and other cash-based adjustments.

(b)Reclassifications from Finance receivables, net to Portfolio income based on the effective interest rate of the underlying account pools.

(3) Changes in expected recoveries

Changes in expected recoveries for the three months ended March 31, 2026 and 2025 were as follows (in thousands):

			Three Months Ended March 31,
			2026																					2025
			Core						Insolvency						Total									Core						Insolvency						Total
Recoveries collected in excess of forecast			$	19,192					$	3,506					$	22,698								$	14,290					$	2,210					$	16,500
Changes in expected future recoveries			21,162						26						21,188									12,035						(613)						11,422
Changes in expected recoveries			$	40,354					$	3,532					$	43,886								$	26,325					$	1,597					$	27,922

Changes in expected recoveries for the three months ended March 31, 2026 were $43.9 million, which included $22.7 million in recoveries collected in excess of forecast and a $21.2 million positive adjustment to changes in expected future recoveries. Recoveries collected in excess of forecast were due primarily to cash collections overperformance in Europe, and to a lesser extent, in South America and the U.S. Changes in expected future recoveries were based on the Company's forecasting models and evaluations of recent performance and were due largely to an increase in the collections forecasts of certain European pools. In the U.S., the impact of an increase in the collections forecast for the 2024 Core pool was partially offset by a decrease in the forecast for the 2023 Core pool and the impact of changes in the expected timing of collections for the 2025 Core pool.

9

Changes in expected recoveries for the three months ended March 31, 2025 were $27.9 million, which included $16.5 million in recoveries collected in excess of forecast and $11.4 million in changes in expected future recoveries. Recoveries collected in excess of forecast were largely due to cash collections overperformance in Europe and South America, partially offset by underperformance in the U.S. Changes in expected future recoveries were primarily due to the impact of an increase in the collections forecasts on certain U.S. Core and European pools.

Note 3. Investments

Investments consisted of the following as of March 31, 2026 and December 31, 2025 (in thousands):

			March 31, 2026						December 31, 2025
Debt securities (available-for-sale)
Swedish treasury securities			$	114,754					$	64,934
Finnish corporate notes			27,162						—
Equity securities
Private equity funds			1,442						1,694
Total investments			$	143,358					$	66,628

Debt securities

As of March 31, 2026, the Company's investments in debt securities consisted of Swedish treasury securities maturing within one year and Finnish corporate notes maturing in approximately three years. As of March 31, 2026 and December 31, 2025, the amortized cost and fair value of these investments were as follows (in thousands):

			March 31, 2026																					December 31, 2025
			Amortized Cost												Gross Unrealized Losses						Aggregate Fair Value									Amortized Cost						Gross Unrealized Gains												Aggregate Fair Value
Swedish treasury securities			$	114,785											$	(31)					$	114,754								$	64,825					$	109											$	64,934
Finnish corporate notes			27,211												(49)						27,162									—						—												—

Note 4. Goodwill

Changes in goodwill for the three months ended March 31, 2026 and 2025, were as follows (in thousands):

			Three Months Ended March 31,
			2026						2025
Goodwill			$	439,482					$	396,357
Accumulated impairment loss			(412,611)						—
Balance as of beginning of period			26,871						396,357
Activity during the period
Foreign currency translation			—						24,358
Goodwill			439,482						420,715
Accumulated impairment loss			(412,611)						—
Balance as of end of period			$	26,871					$	420,715

The Company performs an annual impairment test of goodwill as of October 1 of each year, or more frequently if indicators of impairment exist. As of March 31, 2026, the Company determined there were no indicators that goodwill was more-likely-than-not impaired.

10

Note 5. Borrowings

Borrowings consisted of the following as of March 31, 2026 and December 31, 2025 (in thousands):

			March 31, 2026						December 31, 2025
North American revolving credit facility (1)			$	547,059					$	520,736
North American term loan (2)			457,611						460,111
United Kingdom revolving credit facility (3)			479,959						499,848
European revolving credit facility (4)			660,283						577,335
Colombian revolving credit facility			2,433						2,611
Credit facility borrowings			2,147,345						2,060,641
2028 senior notes			398,000						398,000
2029 senior notes			350,000						350,000
2030 senior notes			550,000						550,000
2032 senior notes			346,560						352,350
Senior notes			1,644,560						1,650,350
Credit facility borrowings and senior notes			3,791,905						3,710,991
Unamortized debt premium and issuance costs, net			(12,738)						(13,653)
Total borrowings			$	3,779,167					$	3,697,338

(1)Revolving credit facility under the Company's North American credit agreement with a combined domestic and Canadian limit of $1.1 billion (subject to the borrowing base and debt covenants, including advance rates), maturing on October 28, 2029.

(2)Term loan under the Company's North American credit agreement with a maturity date of October 28, 2029.

(3)Revolving credit facility with a limit of $725.0 million (subject to the borrowing base and debt covenants, including advance rates), maturing on October 30, 2029.

(4)Revolving credit facility with an aggregate limit of approximately €730.0 million (subject to the borrowing base and debt covenants, including advance rates), maturing on November 23, 2027. The Company amended and extended this facility on April 30, 2026 (refer to Note 15 for additional details).

For additional information about the Company's credit facilities, term loan and senior notes, refer to Note 7 to the Consolidated Financial Statements in the 2025 Form 10-K. The Company was in compliance with the covenants contained in its financing arrangements as of March 31, 2026.

Note 6. Derivatives

The Company periodically enters into interest rate swaps to reduce its exposure to fluctuations in interest rates on variable-rate debt (cash flow hedges) and foreign exchange forward contracts to reduce its exposure to foreign currency exchange rates (economic hedges).

The line-items and fair values for these instruments in the Consolidated Balance Sheets as of March 31, 2026 and December 31, 2025 was as follows (in thousands):

						March 31, 2026						December 31, 2025
Interest rate swaps (designated as hedging instruments)
Prepaid expenses and other assets						$	6,528					$	2,190
Other liabilities						3,642						10,323
Foreign exchange forward contracts (not designated as hedging instruments)
Prepaid expenses and other assets						4,911						914
Other liabilities						891						2,062

Prepaid expenses and other assets and Other liabilities as of March 31, 2026, totaled $134.8 million and $99.5 million, respectively. The increases compared to December 31, 2025 were due primarily to the receipt of a derivative settlement payment made in error by the financial institution counterparty on March 31, 2026. The funds were recorded as restricted cash on March 31, 2026, and returned to the counterparty the following day.

11

Derivatives designated as hedging instruments

The effects of interest rate swaps designated as cash flow hedging instruments for the three months ended March 31, 2026 and 2025 were as follows (in thousands):

						Gain recognized in OCI, net of tax
						Three Months Ended March 31,
Hedging instrument						2026						2025
Interest rate swaps						$	8,083					$	76
						Gain/(loss) reclassified from OCI into income
						Three Months Ended March 31,
Income statement line-item						2026						2025
Interest expense, net						$	(336)					$	2,663

As of March 31, 2026 and December 31, 2025, the notional amount of outstanding interest rate swaps was $675.8 million and $883.0 million, respectively. These swaps remained highly effective as of March 31, 2026 and have remaining terms ranging from 10 months to approximately four years. As of March 31, 2026, the Company estimates that approximately zero net derivative losses included in other comprehensive income ("OCI") will be reclassified into earnings within the next 12 months.

Derivatives not designated as hedging instruments

The effects of foreign exchange forward contracts not designated as hedging instruments for the three months ended March 31, 2026 and 2025 were as follows (in thousands):

												Three Months Ended March 31,
			Income statement line-item						2026						2025
						Foreign exchange gain/(loss), net						$	8,679					$	1,494
						Interest expense, net						350						(151)

As of March 31, 2026 and December 31, 2025, the notional amount of outstanding foreign exchange forward contracts was $432.9 million and $444.2 million, respectively.

Offsetting

The Company's policy is to report derivative asset and liability positions on a gross basis. As of March 31, 2026, none of the open derivative positions would have been eligible for offsetting under the terms of the Company's netting agreements.

12

Note 7. Fair Value

Financial instruments carried at fair value

As of March 31, 2026 and December 31, 2025, financial instruments measured at fair value on a recurring basis were as follows (in thousands):

			Quoted Prices in Active Markets (Level 1)						Other Observable Inputs (Level 2)												Total
March 31, 2026
Assets
Government securities			$	114,754					$	—											$	114,754
Corporate notes			27,162						—												27,162
Derivatives (1)			—						11,439												11,439
Liabilities
Derivatives (1)			—						4,533												4,533
December 31, 2025
Assets
Government securities			$	64,934					$	—											$	64,934
Derivatives (1)			—						3,104												3,104
Liabilities
Derivatives (1)			—						12,385												12,385

(1)Fair value of derivatives is estimated using industry standard valuation models, which project future cash flows and discount the future amounts to present value using market-based observable inputs, including interest rate curves and other factors.

Financial instruments not carried at fair value

As of March 31, 2026 and December 31, 2025, the estimated fair value and carrying amount of financial instruments not carried at fair value were as follows (in thousands):

			Estimated Fair Value
			Quoted Prices in Active Markets (Level 1)						Other Observable Inputs (Level 2)						Unobservable Inputs (Level 3)						Carrying Value
March 31, 2026
Financial assets
Cash and cash equivalents			$	124,778					$	—					$	—					$	124,778
Finance receivables, net (1)			—						—						4,355,224						4,637,094
Financial liabilities
Interest-bearing deposits (2)			—						78,740						—						78,740
Revolving lines of credit (3)			—						1,689,734						—						1,689,734
Term loan (3) (4)			—						457,611						—						457,611
Senior notes (4) (5)			—						1,609,165						—						1,644,560
December 31, 2025
Financial assets
Cash and cash equivalents			$	104,409					$	—					$	—					$	104,409
Finance receivables, net (1)			—						—						4,394,028						4,688,024
Financial liabilities
Interest-bearing deposits (2)			—						106,148						—						106,148
Revolving lines of credit (3)			—						1,600,530						—						1,600,530
Term loan (3) (4)			—						460,111						—						460,111
Senior notes (4) (5)			—						1,652,451						—						1,650,350

(1)Fair value is estimated using the proprietary pricing models the Company utilizes to make portfolio acquisition decisions.

(2)Fair value is based on quoted prices for similar instruments in active markets and approximates carrying value due to the short-term deposit periods.

(3)Fair value is based on quoted prices for similar instruments in active markets and approximates carrying value due to the short-term interest rate periods.

(4)The carrying amounts and fair values do not include debt issuance costs.

(5)Fair value is based on quoted market prices obtained from secondary market broker quotes.

13

Due to the inherent uncertainty of determining the fair value of Level 3 financial instruments, the fair value of these instruments may differ significantly from the values that would have been used had a ready market or observable inputs existed for such instruments and may differ materially from the values that may ultimately be received or settled.

Note 8. Accumulated Other Comprehensive Loss

Reclassifications out of Accumulated other comprehensive loss for the three months ended March 31, 2026 and 2025, were as follows (in thousands):

												Three Months Ended March 31,
Cash flow hedges						Income Statement line-item						2026						2025
Interest rate swaps						Interest expense, net						$	(336)					$	2,663
Income tax effect (1)						Income tax expense						83						(645)
Total gain/(loss) on cash flow hedges												$	(253)					$	2,018

(1)Income tax effects are released from Accumulated other comprehensive loss contemporaneously with the related gross pretax amount.

Changes in Accumulated other comprehensive loss for the three months ended March 31, 2026 and 2025, were as follows (in thousands):

						Three Months Ended March 31,
						2026																											2025
						Debt Securities						Cash						Currency						Accumulated									Debt Securities						Cash						Currency						Accumulated
						Available-for-sale						Flow Hedges						Translation Adjustments						Other Comp. Loss (1)									Available-for-sale						Flow Hedges						Translation Adjustments						Other Comp. Loss (1)
Balance as of beginning of period						$	126					$	(5,731)					$	(281,410)					$	(287,015)								$	205					$	2,111					$	(445,710)					$	(443,394)
Other comprehensive gain/(loss) before reclassifications						(140)						8,083						(5,780)						2,163									(181)						76						80,604						80,499
Reclassifications, net						—						253						—						253									—						(2,018)						—						(2,018)
Net current period other comprehensive gain/(loss)						(140)						8,336						(5,780)						2,416									(181)						(1,942)						80,604						78,481
Balance as of end of period						$	(14)					$	2,605					$	(287,190)					$	(284,599)								$	24					$	169					$	(365,106)					$	(364,913)

(1)Net of deferred taxes for unrealized gains from cash flow hedges of $0.8 million and $3.1 million for the three months ended March 31, 2026 and 2025, respectively.

9. Stockholders' Equity

In February 2022, the Board of Directors approved a share repurchase program under which the Company is authorized to repurchase up to $150.0 million of its outstanding common stock. During the three months ended March 31, 2026, the Company repurchased 546,681 shares of its common stock at an average price of $18.29 per share for a total of $10.0 million. Share repurchases are subject to restrictive covenants contained in the Company's credit facilities and the indentures that govern its senior notes. The Company's practice is to retire the shares it repurchases. As of March 31, 2026, there was $37.7 million remaining for share repurchases under the program.

Note 10. Earnings per Share

The following tables provide a reconciliation between basic earnings per share ("EPS") and diluted EPS for the three months ended March 31, 2026 and 2025 (in thousands, except per share amounts):

			Three Months Ended March 31,
			2026																					2025
			Net Income Attributable to PRA Group, Inc.						Weighted Average Common Shares						EPS									Net Income Attributable to PRA Group, Inc.						Weighted Average Common Shares						EPS
Basic EPS			$	28,210					38,368						$	0.74								$	3,659					39,549						$	0.09
Dilutive effect of nonvested share awards									143						(0.01)															139						—
Diluted EPS			$	28,210					38,511						$	0.73								$	3,659					39,688						$	0.09

14

Basic EPS are computed by dividing net income available to common stockholders of PRA Group, Inc. by weighted average common shares outstanding. Diluted EPS are computed using the same components as basic EPS, with the denominator adjusted for nonvested share awards, if dilutive. Share-based awards that are contingent upon the attainment of performance goals are included in the computation of diluted EPS if the effect is dilutive.

Note 11. Income Taxes

The Company's effective tax rate for the three months ended March 31, 2026 and 2025 was as follows (in thousands, except percentages):

			Three Months Ended March 31,
			2026						2025
Income before income taxes			$	40,536					$	13,376
Income tax expense			8,764						4,312
Effective tax rate			21.6		%				32.2		%

The relationship between Income before income taxes and Income tax expense for the three months ended March 31, 2026 and 2025 was impacted by the Company's pretax income, mix of income from different taxing jurisdictions and the timing and amount of discrete items.

Each interim period is considered an integral part of the annual period and tax expense or benefit is measured using an estimated annual effective income tax rate. The estimated annual effective tax rate for the full year is applied to the respective interim period, taking into account year-to-date amounts and projections for the remainder of the year. Since the Company operates in foreign countries with varying tax rates, the Company’s quarterly effective tax rate is dependent, in part, on the level of income or loss from its international operations.

Note 12. Commitments and Contingencies

Forward flow agreements

The Company enters into forward flow agreements for the purchase of nonperforming loans. These agreements typically have terms ranging from six to 12 months, or they can be open-ended, and establish purchase prices and specific criteria for the accounts to be purchased. Some of the agreements establish a volume reference for the contract term in the form of a target or maximum, however, very few agreements establish a minimum contractual obligation, and many of the contracts contain early termination provisions allowing either party to cancel the agreements in accordance with a specified notice period. The amounts purchased are also dependent on actual delivery by the sellers, and while purchases under these agreements comprise a significant portion of the Company's overall purchases, as of March 31, 2026, the estimated minimum contractual purchase obligation under forward flow agreements was not significant.

Litigation and regulatory matters

The Company and its subsidiaries are from time-to-time subject to a variety of legal and regulatory claims, inquiries, proceedings, and other matters, including those described in Note 15 to the Consolidated Financial Statements in the 2025 Form 10-K. The Company accrues for potential liability arising from legal proceedings and regulatory matters when it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. These estimates involve significant judgment, and accordingly, the Company's estimates will change from time-to-time, and actual expenses could exceed the current estimates.

As of March 31, 2026, there were no material developments in any of the previously disclosed legal proceedings.

15

Note 13. Business Segments

The Company has determined that its U.S. and European businesses are reportable segments. The U.S. reportable segment includes the operating results of the Company's class action claims recoveries business, which are not material to the segment as a whole.

The chief operating decision maker ("CODM") is the Company’s chief executive officer ("CEO"). The primary profitability measure used by the CEO to evaluate performance and allocate resources is Income from operations excluding goodwill impairment, when applicable, and certain unallocated corporate expenses ("Adjusted segment operating income"). The Company does not report a measure of segment assets as that information is not regularly provided to the CEO. Intersegment and other intercompany transactions are executed on an arms-length basis. All prior period disclosures have been recast to reflect the reportable segment reorganization that occurred as of December 31, 2025.

Segment financial information

Segment operating results and reconciliations to the consolidated totals for the three months ended March 31, 2026 and 2025 were as follows (in thousands):

			Three Months Ended March 31,
			2026																		2025
			U.S.						Europe						Total						U.S.						Europe						Total
Revenues from external customers			$	156,795					$	125,632					$	282,427					$	136,381					$	100,150					$	236,531
All other revenues (1)															32,106																		33,088
Total consolidated revenues															$	314,533																	$	269,619
Segment expenses (2)
Compensation and benefits			39,497						20,704						60,201						45,493						19,179						64,672
Legal collection expenses			53,140						9,462						62,602						36,862						8,639						45,501
Professional and outside services			11,812						4,479						16,291						12,826						4,185						17,011
Other segment items (3)			22,157						14,767						36,924						23,821						11,520						35,341
Adjusted segment operating income			30,189						76,220						106,409						17,379						56,627						74,006
Reconciliation to consolidated totals
All other operating income and corporate expenses (4)															(3,155)																		571
Income from operations															103,254																		74,577
Interest expense, net															(63,518)																		(60,970)
Other, net															800																		(231)
Income before income taxes															$	40,536																	$	13,376

(1)Reflects revenues from external customers in South America, Canada and Australia.

(2)Amounts include intersegment and intercompany expenses, which are not material.

(3)Primarily reflects Communication expenses, Agency fees and Other operating expenses.

(4)Includes operating income in South America, Canada and Australia and certain unallocated corporate personnel, administrative and other overhead expenses.

Other segment balances and reconciliations to the consolidated totals for the three months ended March 31, 2026 and 2025 were as follows (in thousands):

						U.S.						Europe						All Other (1)						Consolidated Total
Three months ended March 31, 2026
Interest expense, net						$	41,106					$	23,593					$	(1,181)					$	63,518
Depreciation and amortization						854						822						32						1,708
Income tax expense/(benefit)						(298)						8,860						202						8,764
Three months ended March 31, 2025
Interest expense, net						$	37,939					$	23,767					$	(736)					$	60,970
Depreciation and amortization						2,216						680						42						2,938
Income tax expense/(benefit)						(2,241)						5,221						1,332						4,312

(1)Reflects activity in South America, Canada and Australia. Interest expense, net also includes elimination of intersegment and intercompany interest.

16

Note 14. Recently Issued Accounting Pronouncements

Recently issued accounting pronouncements not yet adopted:

In November 2024, the FASB issued ASU 2024-03, "Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses" ("ASU 2024-03"). Subsequently, the FASB issued ASU 2025-01 to clarify the effective date of ASU 2024-03. The standard provides guidance to expand disclosures related to the disaggregation of income statement expenses. The guidance is effective for fiscal years beginning after December 15, 2026, and interim periods within annual reporting periods beginning after December 15, 2027, on a retrospective or prospective basis, with early adoption permitted. The Company is evaluating the impact of this ASU on its Consolidated Financial Statements and the related disclosures; however, it does not expect there will be a material impact upon adoption.

In November 2025, the FASB issued ASU 2025-08, "Financial Instruments – Credit Losses (Topic 326): Purchased Loans” ("ASU 2025-08"), under which loans (excluding credit cards) acquired without credit deterioration and deemed “seasoned” will be considered purchased seasoned loans and accounted for using the gross-up approach at acquisition. This ASU is effective for annual reporting periods beginning after December 15, 2026, with early adoption permitted. The Company currently applies the PCD accounting model to the loans it acquires and is evaluating the impact this ASU could have on its Consolidated Financial Statements; however, it does not expect there will be a material impact upon adoption.

In November 2025, the FASB issued ASU 2025-09, "Derivatives and Hedging (Topic 815): Hedge Accounting Improvements" ("ASU 2025-09"), which enables entities to apply hedge accounting to a greater number of highly effective economic hedges in the following five areas: (1) similar risk assessment for cash flow hedges; (2) hedging forecasted interest payments on choose-your-rate debt instruments; (3) cash flow hedges of nonfinancial forecasted transactions; (4) net written options as hedging instruments; and (5) foreign currency denominated debt instrument as hedging instrument and hedged item (dual hedge). This ASU is effective for annual reporting periods beginning after December 15, 2026, and interim periods within those annual reporting periods. Early adoption is permitted. The Company is evaluating the impact of this ASU on its Consolidated Financial Statements.

In December 2025, the FASB issued ASU 2025-11, "Interim Reporting (Topic 270): Narrow-Scope Improvements" (“ASU 2025-11"), which improves the guidance of Topic 270, Interim Reporting, by providing clarity on the current interim reporting requirements. This ASU provides additional guidance on what disclosures should be provided in interim reporting periods and adds a principle to Topic 270 requiring entities to disclose events since the end of the last annual reporting period that have a material impact on the reporting entity. This ASU is effective for interim reporting periods within annual reporting periods beginning after December 31, 2027. Early adoption is permitted, and this ASU can be applied either prospectively or retrospectively to any or all prior periods presented in the financial statements. The Company is evaluating the impact of this ASU on its Consolidated Financial Statements and the related disclosures.

All other recently issued accounting pronouncements not yet adopted have been deemed either immaterial or not applicable.

Note 15. Subsequent Event

On April 30, 2026, the Company amended and restated its European revolving credit facility. Among other modifications, the maturity date was extended from November 23, 2027 to April 30, 2031, the maximum ERC Ratio (as defined in the agreement) was reduced from 45.0% to 40.0%, and subject to certain conditions, joint venture investments and loans are permitted up to an aggregate amount of €100.0 million. The aggregate revolving borrowings available and funding costs remained unchanged.

17

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations

All references in this Quarterly Report on Form 10-Q ("Quarterly Report") to "PRA Group," "we," "our," "us," "the Company" or similar terms are to PRA Group, Inc. and its subsidiaries. This Quarterly Report should be read in conjunction with our Form 10-K for the year ended December 31, 2025 ("2025 10-K"). See Frequently Used Terms at the end of this Item 2 for certain definitions that may be used in this Quarterly Report. Except as specifically noted, all references to "Notes" in this Item 2 are to Notes to our Consolidated Financial Statements included in Part I, Item 1 of this Quarterly Report.

FORWARD-LOOKING STATEMENTS

This Quarterly Report contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Statements other than statements of historical fact are forward-looking statements, including statements regarding cash collection trends, operating cost trends, liquidity and capital needs and other statements of expectations, beliefs, future plans, strategies and anticipated events or trends. Our results could differ materially from those expressed or implied by such forward-looking statements, or our forward-looking statements could be wrong, as a result of risks, uncertainties and assumptions, including the following:

•a deterioration in general business and economic conditions, including from the ongoing geopolitical conflict and instability in the Middle East;

•our ability to purchase a sufficient volume of nonperforming loans at favorable pricing;

•our ability to collect sufficient amounts on our nonperforming loans to recover our costs and fund our operations;

•our reliance on internally developed models and the underlying data used in those models;

•a disruption or failure by any of our third-party service providers, or the vendors on whom they may depend, to meet their obligations and our service level expectations, or an ability to contract alternative providers;

•our ability to realize the expected benefits from our cash-generating and cost savings initiatives in our United States ("U.S.") business;

•changes in the regulatory environment for legal collections or our ability to effectively collect on legal recovery and post-judgment processes;

•disruptions of business operations caused by cybersecurity incidents or the underperformance or failure of our information technology ("IT") infrastructure, networks or communication systems;

•our ability to effectively manage change associated with ongoing enhancements to our key operational systems and processes;

•our ability to effectively utilize artificial intelligence ("AI") and machine learning technologies and to adequately safeguard our systems against AI-driven threats;

•our ability to execute our long-term (PRA 3.0) strategy effectively, including the targets related to improving our financial results;

•further impairment of goodwill;

•our ability to manage risks associated with our international operations;

•changes in local, state, federal or international laws or the interpretation of these laws, including tax, bankruptcy and collection laws that limit our ability to collect on our nonperforming loans;

•our ability to comply with existing and new regulations of the collection industry;

•investigations, reviews or enforcement actions by governmental authorities, including the Consumer Financial Protection Bureau ("CFPB");

•our ability to comply with data privacy regulations such as the General Data Protection Regulation ("GDPR");

•our ability to retain, expand, renegotiate or replace our credit facilities and our ability to comply with the covenants under our financing arrangements;

•our ability to manage our capital and liquidity needs effectively, including as a result of changes in credit or capital markets or adverse changes in our credit ratings, whether due to concerns about our industry in general, the financial condition of our competitors, or other factors;

•changes in interest or exchange rates;

•default by, or failure of, one or more of our counterparty financial institutions; and

•the "Risk Factors" in Item 1A of our 2025 Form 10-K and our other filings with the U.S. Securities and Exchange Commission ("SEC").

You should assume that the information appearing in this Quarterly Report is accurate only as of the date it was filed with the SEC. Our business, financial condition, results of operations and prospects may have changed since that date. The future events, developments or results described in, or implied by, this Quarterly Report could turn out to be materially different. Except as required by law, we assume no obligation to publicly update or revise our forward-looking statements after the date of this Quarterly Report and you should not expect us to do so.

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EXECUTIVE OVERVIEW

We are a global leader in acquiring and collecting nonperforming loans. Most of our purchases are from credit originators who have chosen not to pursue, or have been unsuccessful in collecting, the full balance owed to them ("Core" accounts). To a lesser extent, we also purchase loans in situations where the customer is involved in a bankruptcy or similar proceeding ("Insolvency" accounts). As part of an ancillary business, we purchase and provide fee-based services for class action claims recoveries in the U.S.

Our operations are organized on a geographic basis, and we have two reportable segments comprised of our U.S. and European businesses. On a significantly smaller scale, we also operate in South America, Canada and Australia. Subject to globally-established parameters for capital allocation, portfolio return thresholds and leverage, each market functions under a similar debt management business model, which is predicated on purchasing nonperforming loans and generating returns through disciplined collection strategies over extended collection periods.

For additional information about our business and reportable segments, refer to Part I, Item 1 "Business" of our 2025 Form 10-K and Note 13.

First quarter business trends and results

During the first quarter of 2026, we continued to gain momentum in improving our U.S. business and benefited from the strength of our European business, executing on our near-term priorities and long-term PRA 3.0 strategy. Our results for the first quarter of 2026 included the following:

•Net income attributable to PRA Group, Inc. of $28.2 million, an increase of $24.6 million compared to the prior year period.

•Adjusted EBITDA of $1.3 billion for the last 12 months, an increase of 13.9% compared to the prior 12 month period ("Adjusted EBITDA" is a non-GAAP financial measure; refer to section "Non-GAAP Financial Measures" below).

•Continued geographic diversification, with the U.S. and Europe accounting for 42.7% and 50.7%, respectively, of total ERC of $8.5 billion as of March 31, 2026.

•A diversified capital structure, consistent with our targeted leverage and liquidity objectives. In April 2026, we refinanced our European revolving credit facility for an additional five years with no change to the commitment levels or funding costs (refer to Note 15 for additional details).

Market environment

We expect portfolio supply to remain relatively stable in the U.S. and Europe over the next 12 to 18 months. We observed stability in our customers' payment activity in the U.S. and Europe during the first quarter of 2026, and we continue to monitor the ongoing geopolitical conflict and instability in the Middle East, and in particular, how it has led to elevated energy costs and gas prices.

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SELECTED CONSOLIDATED FINANCIAL DATA

As of or for the period ended (in thousands, except per share, ratio and headcount data)						First Quarter
						2026						2025						% Change
Income statement
Portfolio income						$	269,579					$	240,958					11.9		%
Changes in expected recoveries						43,886						27,922						57.2
Total revenues						314,533						269,619						16.7
Total operating expenses						211,279						195,042						8.3
Interest expense, net						63,518						60,970						4.2
Net income attributable to PRA Group, Inc.						28,210						3,659						671.0
Diluted earnings per share						0.73						0.09						711.1
Performance data and ratios
Net income/(loss) attributable to PRA Group, Inc. (last 12 months)						$	(280,591)					$	70,785					(496.4)		%
Adjusted net income attributable to PRA (last 12 months) (1)						97,132						70,785						37.2
Adjusted EBITDA (last 12 months) (2)						1,348,599						1,183,992						13.9
Cash efficiency ratio (3)						61.8		%				60.8		%
Return on average Total stockholders' equity - PRA Group, Inc. ("ROE") (4)						11.4						1.2
Return on average tangible equity ("ROATE") (5)						11.7						1.9
Portfolio volumes
Portfolio purchases						$	220,850					$	291,702					(24.3)		%
Cash collections						551,928						497,436						11.0
Estimated remaining collections (period-end)						8,548,548						7,805,132						9.5
Credit facility availability (period-end)
Based on current ERC						$	714,258					$	537,839					32.8
Additional availability						281,737						381,083						(26.1)
Total availability						995,995						918,922						8.4
Balance sheet (period-end)
Finance receivables, net						$	4,637,094					$	4,308,334					7.6		%
Borrowings						3,779,167						3,466,075						9.0
Total stockholders' equity - PRA Group, Inc.						1,002,288						1,219,108						(17.8)
Headcount (period-end)
Full-time equivalents						2,541						2,991						(15.0)		%

(1)Net income/(loss) 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"), is a non-GAAP financial measure. Refer to section "Non-GAAP Financial Measures" below.

(2)Adjusted earnings before interest, taxes, depreciation and amortization ("Adjusted EBITDA") is a non-GAAP financial measure. Refer to section "Non-GAAP Financial Measures" below.

(3)Calculated by dividing cash receipts less operating expenses by cash receipts.

(4)ROE is calculated by dividing annualized Net income attributable to PRA Group, Inc., by average Total stockholders' equity - PRA Group, Inc.

(5)ROATE is a non-GAAP financial measure calculated by dividing annualized Net income attributable to PRA Group, Inc. by Average tangible equity ("Average tangible equity"), which is also a non-GAAP financial measure. Refer to section "Non-GAAP Financial Measures" below.

20

RESULTS OF OPERATIONS

Three months ended March 31, 2026 ("First Quarter 2026" or "Q1 2026") compared to three months ended March 31, 2025 ("First Quarter 2025" or "Q1 2025").

Consolidated and business segment results

Portfolio purchases

Portfolio purchases were as follows (in thousands, except percentages):

			First Quarter
			2026						2025						$ Change						% Change
U.S.			$	118,512					$	160,962					$	(42,450)					(26.4)		%
Europe			91,552						113,246						(21,694)						(19.2)
Other markets (1)			10,786						17,494						(6,708)						(38.3)
Total portfolio purchases			$	220,850					$	291,702					$	(70,852)					(24.3)		%

(1)Reflects portfolio purchases in South America, Canada and Australia.

We use a global investment framework to optimize the deployment of capital across our markets with a focus on net returns. Our total portfolio purchases in Q1 2026 decreased by $70.9 million, or 24.3%, compared to Q1 2025. Total purchases of $220.9 million in Q1 2026 were in-line with our expectations for the quarter, and the PPM for our global Core vintage was 1.96x, slightly lower than the 2.01x for Q1 2025. PPMs can vary due to factors contributing to the cost to collect, including the loan type and age, geography and collections strategy, in addition to competitive and market dynamics. Our focus continued to be on net returns, which considers the amount and timing of the projected cash collections, estimated costs to collect, funding costs, risk and agreement terms.

•U.S.: Portfolio purchases decreased by $42.5 million as we remained disciplined in our purchasing and long-term approach focused on net returns. As of March 31, 2026, the PPM for our 2026 U.S. Core vintage was 2.02x, reflecting a 7% decrease compared to Q1 2025 due to purchases of a higher percentage of portfolios with lower costs to collect.

•Europe: Portfolio purchases decreased by $21.7 million reflecting the occurrence of a large spot purchase in Q1 2025 and continued purchasing discipline in Q1 2026. As of March 31, 2026, the PPM for our 2026 European Core vintage was 1.85x, reflecting a 6% increase compared to Q1 2025.

Cash collections

Cash collections were as follows (in thousands, except percentages):

			First Quarter
			2026						2025						$ Change						% Change
U.S.
Call center/other			$	127,393					$	129,255					$	(1,862)					(1.4)		%
Legal			141,016						111,212						29,804						26.8
Core			268,409						240,467						27,942						11.6
Insolvency			20,141						20,589						(448)						(2.2)
Cash collections - U.S.			288,550						261,056						27,494						10.5
Europe
Call center/other			118,049						102,408						15,641						15.3
Legal			73,970						61,963						12,007						19.4
Core			192,019						164,371						27,648						16.8
Insolvency			20,547						21,205						(658)						(3.1)
Cash collections - Europe			212,566						185,576						26,990						14.5
Other markets (1)			50,812						50,804						8						—
Total cash collections			$	551,928					$	497,436					$	54,492					11.0		%

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

21

Our total cash collections in Q1 2026 increased by $54.5 million, or 11.0%, compared to Q1 2025. Total collections of $551.9 million in Q1 2026 exceeded our expectations for the quarter.

•U.S.: Cash collections increased by $27.5 million driven by a $29.8 million increase in legal collections due primarily to an expansion in activity associated with our operational initiatives.

•Europe: Cash collections increased by $27.0 million due to the performance in several markets and in part, to favorable foreign exchange rate variation.

Portfolio revenue

Total portfolio revenue was as follows (in thousands, except percentages):

			First Quarter
			2026						2025						$ Change						% Change
U.S.			155,986						135,806						20,180						14.9
Europe			125,435						99,986						25,449						25.5
Other markets (1)			32,044						33,088						(1,044)						(3.2)
Total portfolio revenue			$	313,465					$	268,880					$	44,585					16.6		%
By component
Portfolio income			$	269,579					$	240,958					$	28,621					11.9		%
Recoveries collected in excess of forecast			22,698						16,500						6,198						37.6
Changes in expected future recoveries			21,188						11,422						9,766						85.5
Changes in expected recoveries			43,886						27,922						15,964						57.2
Total portfolio revenue			$	313,465					$	268,880					$	44,585					16.6		%

(1)Reflects portfolio revenue in South America, Canada and Australia.

Our total portfolio revenue in Q1 2026 increased by $44.6 million, or 16.6%, compared to Q1 2025. Portfolio income, the yield component of our revenue, which is more predictable than Changes in expected recoveries, increased by 11.9%.

•U.S.: Portfolio revenue increased by $20.2 million due to increases of $11.1 million in Portfolio income and $9.1 million in Changes in expected recoveries. The increase in Portfolio income was driven largely by higher recent purchasing and improved pricing on the 2025 Core vintage. The increase in Changes in expected recoveries was due to net cash collections overperformance in Q1 2026, driven primarily by the 2024 Core pool, compared to net underperformance in Q1 2025, driven by the 2019-2023 Core pools. This increase was partially offset by a lower net increase in the collections forecasts on certain Core pools compared to Q1 2025 and the impact of changes in the expected timing of collections on certain Core pools in Q1 2026.

•Europe: Portfolio revenue increased by $25.4 million due to increases of $14.1 million in Portfolio income and $11.3 million in Changes in expected recoveries, which were distributed across multiple pools. The increase in Portfolio income was driven by higher purchasing and favorable foreign exchange rate variation. The increase in Changes in expected recoveries was due primarily to a higher net increase in the collections forecasts on certain Core pools in Q1 2026.

22

Operating expenses

Operating expenses were as follows (in thousands, except percentages):

			First Quarter
			2026						2025						$ Change						% Change
U.S.			$	135,921					$	128,543					$	7,378					5.7		%
Europe			51,702						44,298						7,404						16.7
Other markets (1)			23,656						22,201						1,455						6.6
Total operating expenses			$	211,279					$	195,042					$	16,237					8.3		%
By component
Compensation and benefits			$	70,738					$	73,323					$	(2,585)					(3.5)		%
Legal collection costs (2)			48,458						33,394						15,064						45.1
Legal collection fees (3)			17,071						15,230						1,841						12.1
Agency fees (4)			24,581						21,368						3,213						15.0
Professional and outside services			20,884						21,103						(219)						(1.0)
Communication (5)			9,019						10,477						(1,458)						(13.9)
Rent and occupancy			3,258						3,480						(222)						(6.4)
Depreciation, amortization and impairment of long-lived assets			1,708						3,769						(2,061)						(54.7)
Other operating expenses (6)			15,562						12,898						2,664						20.7
Total operating expenses			$	211,279					$	195,042					$	16,237					8.3		%

(1)Reflects operating expenses in South America, Canada and Australia.

(2)Mainly costs paid to courts where a lawsuit is filed for the purpose of attempting to collect on an account.

(3)Contingent fees incurred for cash collections generated by our third-party attorney network.

(4)Mainly third-party collection fees.

(5)Mainly correspondence, network and calling costs associated with our collection efforts.

(6)Mainly IT-related costs and subscriptions, other taxes and fees.

Our Total operating expenses increased by $16.2 million, or 8.3%, compared to Q1 2025.

•U.S.: Operating expenses increased by $7.4 million due primarily to an increase in Legal collection costs associated with the expansion in activity in our legal collections channel, partially offset by a decrease in Compensation and benefits driven by continued rationalization of our U.S. call centers, increased use of external collectors, including offshore service providers, and the impact of our corporate headcount reduction in 2025.

•Europe: Operating expenses increased by $7.4 million due primarily to an increase in Compensation and benefits associated with organizational changes and higher non-collector wage costs, and to a lesser extent, an increase in Other operating expenses.

•Other markets: An increase in Agency fees of $3.2 million was due primarily to higher collection fees in South America.

Interest expense, net

Interest expense, net was as follows (in thousands, except percentages):

			First Quarter
			2026						2025						$ Change						% Change
Interest on revolving credit facilities and term loan, and unused line fees			$	33,978					$	36,582					$	(2,604)					(7.1)		%
Interest on senior notes			30,236						24,911						5,325						21.4
Amortization of debt premium and issuance costs, net			2,184						1,901						283						14.9
Interest income			(2,880)						(2,424)						(456)						(18.8)
Interest expense, net			$	63,518					$	60,970					$	2,548					4.2		%

Our Interest expense, net increased by $2.5 million, or 4.2%, compared to Q1 2025 primarily reflecting a higher average debt balance.

23

Foreign exchange gain/(loss), net

Foreign exchange gain/(loss), net, includes the remeasurement of our foreign currency transactions and changes in the fair value of foreign exchange forward contracts used to economically hedge a portion of our remeasurement exposure. Foreign exchange gain/(loss), net included the following components (in thousands):

			First Quarter
			2026						2025						$ Change						% Change
Foreign currency transaction losses			$	(7,625)					$	(1,545)					$	(6,080)					(393.5)		%
Foreign exchange forward gains			8,679						1,494						7,185						480.9		%
Foreign exchange gain/(loss), net			$	1,054					$	(51)					$	1,105					2,166.7		%

In addition to normal rate fluctuations and ongoing execution of our risk management strategies, our net foreign exchange result may be impacted by elevated volatility in the underlying exchange rates.

Income tax expense

Income tax expense and our effective tax rate were as follows (in thousands, except percentages):

			First Quarter
			2026						2025						$ Change						% Change
Income tax expense			$	8,764					$	4,312					$	4,452					103.2		%
Effective tax rate			21.6		%				32.2		%

Our Income tax expense increased by $4.5 million, or 103.2%, compared to Q1 2025, and the effective tax rate was 21.6% in Q1 2026 compared to 32.2% in Q1 2025. These results were primarily due to our pretax income, the mix of income from different taxing jurisdictions and the timing and amount of discrete items, including the reversal of a $3.2 million tax accrual in Q1 2026.

Business segment operating income

Our CEO evaluates the profitability of our U.S. and European business segments based primarily on Income from operations excluding goodwill impairment, when applicable, and certain unallocated corporate expenses ("Adjusted segment operating income"). Refer to Note 13 for further information and a reconciliation of Adjusted segment operating income to consolidated Income before income taxes.

Adjusted segment operating income for our U.S. and European businesses was as follows (in thousands, except percentages):

			U.S.																											Europe
			Q1 2026						Q1 2025						$ Change						% Change									Q1 2026						Q1 2025						$ Change						% Change
Revenues from external customers			$	156,795					$	136,381					$	20,414					15.0		%							$	125,632					$	100,150					$	25,482					25.4		%
Segment expenses (1)
Compensation and benefits			39,497						45,493						(5,996)						(13.2)									20,704						19,179						1,525						8.0
Legal collection expenses			53,140						36,862						16,278						44.2									9,462						8,639						823						9.5
Professional and outside services			11,812						12,826						(1,014)						(7.9)									4,479						4,185						294						7.0
Other segment items (2)			22,157						23,821						(1,664)						(7.0)									14,767						11,520						3,247						28.2
Adjusted segment operating income			$	30,189					$	17,379					$	12,810					73.7		%							$	76,220					$	56,627					$	19,593					34.6		%

(1)Amounts include intersegment and intercompany expenses, which are not material, and exclude certain unallocated corporate personnel, administrative and other overhead expenses.

(2)Primarily reflects Communication expenses, Agency fees and Other operating expenses.

Adjusted segment operating income increased by $12.8 million and $19.6 million in the U.S. and Europe, respectively, both reflecting an increase in segment revenues partially offset by an increase in segment operating expenses (refer to the above discussions of segment portfolio revenue and operating expenses for additional details).

24

Consolidated balance sheet

Investments

Investments were $143.4 million as of March 31, 2026, an increase of $76.7 million compared to December 31, 2025. The increase reflects purchases of government securities and corporate notes by our banking subsidiary, AK Nordic AB. Our banking subsidiary is part of our European operations, and it expects to continue to operate with higher levels of liquidity moving forward.

Finance receivables, net

Finance receivables, net were $4.6 billion as of March 31, 2026, decreasing marginally compared to December 31, 2025. Compared to March 31, 2025, Finance receivables, net increased $328.8 million, or 7.6%, due to portfolio purchases of $1.1 billion, Changes in expected recoveries of $192.4 million and foreign currency translation of $120.3 million, partially offset by $1.1 billion of recoveries collected and applied to Finance receivables, net.

Prepaid expenses and other assets

Prepaid expenses and other assets were $134.8 million as of March 31, 2026, an increase of $66.2 million compared to December 31, 2025. The increase was driven by the receipt of a derivative settlement payment made in error by the financial institution counterparty on March 31, 2026. The funds were returned the following day.

Borrowings

Borrowings were $3.8 billion as of March 31, 2026, increasing marginally compared to December 31, 2025. Compared to March 31, 2025, Borrowings increased $313.1 million, or 9.0%, primarily to fund portfolio purchases, and to a lesser extent, the purchases of investments discussed above under Investments.

Other liabilities

Other liabilities were $99.5 million as of March 31, 2026, an increase of $50.5 million compared to December 31, 2025. The increase was primarily due to the same payment error discussed above under Prepaid expenses and other assets.

NON-GAAP FINANCIAL MEASURES

We report our financial results in accordance with U.S. generally accepted accounting principles ("GAAP"). However, our management also uses certain non-GAAP financial measures, including the non-GAAP financial measures referred to below, internally to evaluate our performance and set performance goals. Also included below are reconciliations of the most directly comparable financial measures calculated in accordance with GAAP to the corresponding non-GAAP financial measure. 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.

Adjusted net income attributable to PRA

Adjusted net income attributable to PRA is defined as Net income/(loss) 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. The following table provides a reconciliation of Net income/(loss) attributable to PRA Group, Inc. to Adjusted net income attributable to PRA for the periods indicated (in thousands):

																		Last 12 Months
						First Quarter												March 31,
						2026						2025						2026						2025
Net income/(loss) attributable to PRA Group, Inc.						$	28,210					$	3,659					$	(280,591)					$	70,785
Gain on sale of equity method investment						—						—						(38,403)						—
Goodwill impairment						—						—						412,611						—
Tax effect of adjusting items (1)						—						—						3,515						—
Adjusted net income attributable to PRA						$	28,210					$	3,659					$	97,132					$	70,785

(1)Based on the annual effective tax rate and pretax income excluding the effect of the adjusting items.

25

Adjusted EBITDA

Adjusted EBITDA is calculated as Net income/(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 following table provides a reconciliation of Net loss attributable to PRA Group, Inc. as reported in accordance with GAAP to Adjusted EBITDA for the periods indicated (in thousands):

			Adjusted EBITDA Reconciliation
			Last 12 Months						Year Ended
			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 (1)			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

(1)Reflects non-operating expenses.

Return on average tangible equity

ROATE is calculated by dividing annualized Net income/(loss) attributable to PRA Group, Inc. by Average tangible equity, which is defined as average Total stockholders' equity - PRA Group, Inc. less average goodwill and average other intangible assets. The following table provides a reconciliation of Total stockholders' equity - PRA Group, Inc. as reported in accordance with GAAP to Average tangible equity and presents our 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
(1)Amounts represent the average balances for the respective periods.
																		ROE and ROATE (2)
																		First Quarter
																		2026						2025
Net income attributable to PRA Group, Inc.																		$	28,210					$	3,659
ROE																		11.4		%				1.2		%
ROATE																		11.7						1.9
(2)Based on annualized Net income attributable to PRA Group, Inc.

26

SUPPLEMENTAL PERFORMANCE DATA

The tables in this section provide supplemental performance data about our:

•ERC by business segment and expected year of collection; and

•nonperforming loan portfolios and collections by business segment, portfolio type and year of purchase.

For additional information about the supplemental data and our nonperforming loan portfolios, refer to Part II, Item 7 "Management's Discussion and Analysis of Financial Condition and Results of Operations - Supplemental Performance Data" in the 2025 Form 10-K and Note 2.

Estimated remaining collections

The following table displays our ERC by year as of March 31, 2026 (in thousands):

			U.S.						Europe (1)						Other Markets (2)									Total
2027			$	1,054,976					$	717,426					$	171,378								$	1,943,780
2028			813,894						590,906						123,298									1,528,098
2029			550,713						491,572						83,252									1,125,537
2030			371,720						415,290						59,185									846,195
2031			254,162						352,508						42,416									649,086
2032			173,709						302,766						28,531									505,006
2033			122,651						262,604						20,325									405,580
2034			87,754						229,145						13,291									330,190
2035			63,666						200,220						7,527									271,413
2036			47,141						176,397						4,547									228,085
Thereafter			106,707						597,936						10,935									715,578
Total ERC			$	3,647,093					$	4,336,770					$	564,685								$	8,548,548

(1)Reflects ERC of $1.7 billion for the UK, $1.1 billion for Central Europe, $1.0 billion for Northern Europe and $564.6 million for Southern Europe.

(2)Reflects ERC in South America, Canada and Australia.

27

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.

28

			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 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.

29

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			1,100.3
2018			604.7			—			—			—			106.3			320.2			304.7			214.8			131.6			83.2			68.1			42.9			8.3			1,280.1
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(4)			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.

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LIQUIDITY AND CAPITAL RESOURCES

We actively manage our liquidity to meet our business needs and financial obligations.

Sources of liquidity

Cash and cash equivalents

As of March 31, 2026, cash and cash equivalents totaled $124.8 million, of which $113.7 million was held by international operations with indefinitely reinvested earnings. For additional information about the unremitted earnings of our international subsidiaries, refer to Note 14 to our Consolidated Financial Statements in the 2025 Form 10-K.

Borrowings

As of March 31, 2026, we had the following committed amounts, outstanding borrowings and availability under our financing arrangements (in thousands):

																											Composition of Total Availability
						Committed Amounts						Outstanding Borrowings						Total Availability									Based on Current ERC (1)						Additional Availability (2)
North American revolving credit facility						$	1,075,000					$	547,059					$	527,941								$	355,383					$	172,558
North American term loan						457,611						457,611						—									—						—
European revolving credit facility						883,296						660,283						223,013									223,013						—
UK revolving credit facility						725,000						479,959						245,041									135,862						109,179
Colombian revolving credit facility						2,433						2,433						—									—						—
Senior notes						1,644,560						1,644,560						—									—						—
Debt premium and issuance costs, net						—						(12,738)						—									—						—
Total						$	4,787,900					$	3,779,167					$	995,995								$	714,258					$	281,737

(1)Available borrowings after calculation of borrowing base, subject to the committed amounts and debt covenants, which may be used for general corporate purposes, including portfolio purchases.

(2)Subject to borrowing base and debt covenants, including advance rates ranging from 35-55% of applicable ERC.

Interest-bearing deposits

As of March 31, 2026, interest-bearing deposits totaled $78.7 million. Under our European revolving credit facility, our interest-bearing deposit funding is limited to SEK 2.2 billion ($232.6 million as of March 31, 2026).

Uses of liquidity and material cash requirements

We believe that funds generated from our business activities, together with existing cash, available borrowings under our revolving credit facilities and access to the capital markets, will be sufficient to finance our operations, planned capital expenditures, forward flow purchase commitments, debt maturities and additional portfolio purchases for at least the next 12 months. Our long-term capital requirements will depend in large part on the level of nonperforming loan portfolios that we purchase.

Market conditions permitting, as we deem appropriate, we may seek to access the debt or equity capital markets or other sources of funding, and it may be necessary to raise additional funds to achieve our business objectives. Business acquisitions or higher than expected levels of portfolio purchasing could require additional financing. We may also from time-to-time repurchase common stock in the open market or otherwise. We also have the ability to slow the purchase of nonperforming loans without significantly impacting current year collections.

Forward flows

We enter into forward flow agreements for the purchase of nonperforming loans. These agreements typically have terms ranging from six to 12 months, or they can be open-ended, and establish purchase prices and specific criteria for the accounts to be purchased. Some of the agreements establish a volume reference for the contract term in the form of a target or maximum, however, very few agreements establish a minimum contractual obligation, and many of the contracts contain early termination provisions allowing either party to cancel the agreements in accordance with a specified notice period.

31

As of March 31, 2026, we had forward flow agreements in place with an estimated purchase price of approximately $321.8 million over the next 12 months. This total can vary significantly based on the remaining terms and renewal dates of the agreements and is comprised of $172.6 million in Europe, $132.2 million in the U.S. and $17.0 million in our other markets. 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.

Borrowings

As of March 31, 2026, we had $3.8 billion in outstanding borrowings. Our estimated interest, unused fees and principal payments for the next 12 months are $251.0 million. With the exception of $2.5 million in quarterly principal payments on our North American term loan, as of March 31, 2026, principal payments on our borrowings have maturity dates ranging from November 2027 through September 2032. Our financing arrangements include covenants with which we must comply, and as of March 31, 2026, we were in compliance with these covenants. For additional information about our borrowings, refer to Note 5.

Share repurchases

On February 25, 2022, our Board of Directors approved a share repurchase program under which we are authorized to repurchase up to $150.0 million of our outstanding common stock. The share repurchase program has no stated expiration date and does not obligate us to repurchase any specified amount of shares, remains subject to the discretion of our Board of Directors and, subject to compliance with applicable laws, may be modified, suspended or discontinued at any time. Repurchases are also subject to restrictive covenants contained in our credit facilities and the indentures that govern our senior notes.

Repurchases may be made from time-to-time in open market transactions, through privately negotiated transactions, in block transactions, through purchases made in accordance with trading plans adopted under Rule 10b5-1 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or other methods, subject to market and/or other conditions and applicable regulatory requirements. During the first quarter of 2026, we repurchased 546,681 shares of our common stock at an average price of $18.29 for a total of $10.0 million. As of March 31, 2026, we had $37.7 million remaining for share repurchases under the program, subject to the restrictive covenants mentioned above.

Leases

Our leases have remaining terms ranging from one to approximately seven years. As of March 31, 2026, we had $31.6 million in lease liabilities, of which $6.7 million is due within the next 12 months. For additional information, refer to Note 5 to our Consolidated Financial Statements in the 2025 Form 10-K.

Derivatives

We enter into derivative financial instruments to reduce our exposure to fluctuations in interest rates on variable rate debt and foreign currency exchange rates. As of March 31, 2026, we had $4.5 million of derivative liabilities, of which $0.9 million matures within the next 12 months and $3.6 million in 2028. For additional information, refer to Note 6.

Investments

As of March 31, 2026, we held $114.8 million in Swedish treasury securities and $27.2 million in Finnish corporate notes to meet liquidity requirements for our banking subsidiary, AK Nordic AB.

32

Cash flow analysis

The following table summarizes our cash flow activity for the periods indicated (in thousands):

			First Quarter
			2026						2025						Change
Net cash provided by/(used in):
Operating activities			$	24,937					$	(52,580)					$	77,517
Investing activities			(18,439)						(24,385)						5,946
Financing activities			60,423						85,630						(25,207)
Effect of foreign exchange rates			10,733						14,216						(3,483)
Net increase in cash, cash equivalents and restricted cash			$	77,654					$	22,881					$	54,773

Operating activities

Net cash provided by/(used in) in operating activities mainly reflects the portion of our cash collections recognized as revenue and cash paid for operating expenses, interest and income taxes. It does not include cash collections applied to the negative allowance, which are classified as investing activities. Net cash provided by operating activities increased by $77.5 million in Q1 2026 due primarily to lower cash paid for operating expenses and higher cash collections recognized as income.

Investing activities

Net cash used in investing activities decreased by $5.9 million in Q1 2026 due primarily to a decrease in purchases of nonperforming loan portfolios and an increase in recoveries collected and applied to Finance receivables, net, partially offset by an increase in purchases of investments.

Financing activities

Net cash provided by financing activities decreased by $25.2 million in Q1 2026 due primarily to activity within our interest-bearing deposits and the repurchase of $10.0 million shares of our common stock, partially offset by higher net proceeds from credit lines and lower noncontrolling interest distributions in Q1 2026.

CRITICAL ACCOUNTING ESTIMATES

Our Consolidated Financial Statements have been prepared in accordance with GAAP. Some of our significant accounting policies require that we use estimates, assumptions and judgments that affect the reported amounts of revenues, expenses, assets and liabilities. We consider accounting estimates to be critical if they (1) involve a significant level of estimation uncertainty and (2) have had, or are reasonably likely to have, a material impact on our financial condition or results of operations. We base our estimates on historical experience, current trends and various other assumptions that we believe are reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. If these estimates differ significantly from actual results, the impact on our Consolidated Financial Statements may be material.

Our critical accounting estimates include revenue recognition on finance receivables, goodwill and income taxes. For a detailed description of our critical accounting estimates, refer to Part II, Item 7 "Management's Discussion and Analysis of Financial Condition and Results of Operations - Critical Accounting Estimates" in the 2025 Form 10-K.

RECENT ACCOUNTING PRONOUNCEMENTS

For discussion of recent accounting pronouncements and the anticipated effects on our Consolidated Financial Statements, refer to Note 14.

33

FREQUENTLY USED TERMS

We may use the following terms throughout this Quarterly Report:

•"Buybacks" refers to purchase price refunded by the seller due to the return of ineligible nonperforming loan accounts.

•"Cash collections" refers to collections on our nonperforming loan portfolios.

•"Cash receipts" refers to cash collections on our nonperforming loan portfolios, fees and revenue recognized from our class action claims recovery services.

•"Changes in expected recoveries" refers to the difference between actual recoveries collected compared to expected recoveries and the net present value of changes in estimated remaining collections.

•"Core" accounts or portfolios refer to accounts or portfolios that are nonperforming loans and are not in an insolvent status upon acquisition. These accounts are aggregated separately from Insolvency accounts.

•"Estimated remaining collections" or "ERC" refers to the sum of all future projected cash collections on our nonperforming loan portfolios.

•"Finance receivables" or "receivables" refers to the negative allowance for expected recoveries recorded on our balance sheet as an asset.

•"Insolvency" accounts or portfolios refer to accounts or portfolios of nonperforming loans that are in an insolvent status when we purchase them and, as such, are purchased as pools of insolvent accounts. These accounts include IVAs, Trust Deeds in the UK, Consumer Proposals in Canada and bankruptcy accounts in the U.S., Canada, Germany and the UK.

•"Negative allowance" refers to the present value of cash flows expected to be collected on our finance receivables.

•"Portfolio acquisitions" refers to all nonperforming loan portfolios acquired as a result of a purchase or business acquisition.

•"Portfolio purchases" refers to all nonperforming loan portfolios purchased in the normal course of business and excludes those added as a result of business acquisitions.

•"Portfolio income" reflects revenue recorded due to the passage of time using the effective interest rate calculated based on the purchase price and estimated remaining collections of nonperforming loan portfolios.

•"Purchase price" refers to the cash paid to a seller to acquire nonperforming loans.

•"Purchase price multiple" or "PPM" refers to the total estimated collections on our nonperforming loan portfolios divided by purchase price.

•"Recoveries collected" refers to cash collections plus buybacks and other adjustments.

•"Total estimated collections" or "TEC" refers to actual cash collections plus estimated remaining collections on our nonperforming loan portfolios.

34

Item 3. Quantitative and Qualitative Disclosures About Market Risk

Our business is primarily subject to interest rate and foreign currency risk. Our exposure to these risks, as described in Part II, Item 7A in the 2025 Form 10-K, has not changed materially.

Interest rate exposure

Of our $3.8 billion in total borrowings as of March 31, 2026, approximately $1.6 billion was fixed rate debt. Considering these fixed rate borrowings and the interest rate hedges on our variable rate debt, with maturities ranging from 10 months to approximately four years, as of March 31, 2026, 60% of our total debt was either fixed rate or converted to a fixed rate. Based on our debt structure, assuming a 50 basis point decrease/increase in interest rates, interest expense over the following 12 months would decrease/increase by an estimated $7.7 million.

Foreign currency exposure

We operate internationally and enter into transactions denominated in various foreign currencies. During Q1 2026, our revenues from operations outside the U.S. were $157.7 million.

Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures. We maintain disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) that are designed to ensure that information required to be disclosed in our Exchange Act reports is recorded, processed, summarized and reported within the time periods specified in the SEC's rules and forms, and that such information is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure. In designing and evaluating the disclosure controls and procedures, management recognized that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives, and management necessarily was required to apply its judgment in evaluating the cost-benefit relationship of possible controls and procedures. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions or that the degree of compliance with the policies or procedures may deteriorate. We conducted an evaluation, under the supervision and with the participation of our principal executive officer and principal financial officer, of the effectiveness of our disclosure controls and procedures as of the end of the period covered by this Quarterly Report. Based on this evaluation, the principal executive officer and principal financial officer have concluded that, as of March 31, 2026, our disclosure controls and procedures were effective.

Changes in Internal Control over Financial Reporting. There was no change in our internal control over financial reporting that occurred during the quarter ended March 31, 2026, that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

35

PART II. OTHER INFORMATION

Item 1. Legal Proceedings

For information regarding legal proceedings as of March 31, 2026, refer to Note 12.

Item 1A. Risk Factors

There have been no material changes in our risk factors from those disclosed in Part I, Item 1A of the 2025 Form 10-K.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

On February 25, 2022, our Board of Directors approved a share repurchase program under which we are authorized to repurchase up to $150.0 million of our outstanding common stock. For additional information, refer to Part I, Item 2 "Management's Discussion and Analysis of Financial Condition and Results of Operations - Liquidity and Capital Resources" of this Quarterly Report.

Share repurchases during the three months ended March 31, 2026 were as follows:

						Total Number of Shares Purchased						Average Price Paid per Share						Total Number of Shares Purchased as Part of Publicly Announced Program						Maximum Remaining Purchase Price for Share Repurchases Under the Program (1)
Period
January 1, 2026 to January 31, 2026						—						$	—					—						$	47,742
February 1, 2026 to February 28, 2026						—						—						—						47,742
March 1, 2026 to March 31, 2026						546,681						18.29						546,681						37,742
Total						546,681						$	18.29					546,681						$	37,742

(1)In thousands.

Our credit facilities and the indentures governing our senior notes contain financial and other restrictive covenants, including restrictions on certain types of transactions and our ability to pay dividends to our stockholders and repurchase our common stock.

Item 3. Defaults Upon Senior Securities

Not applicable.

Item 4. Mine Safety Disclosures

Not applicable.

Item 5. Other Information

None of the Company's directors or officers adopted or terminated a Rule 10b5-1 trading arrangement or non-rule 10b5-1 trading arrangement during the first quarter of 2026.

Item 6. Exhibits

3.1			Fifth Amended and Restated Certificate of Incorporation of PRA Group, Inc. (Incorporated by reference to Exhibit 3.1 of the Current Report on Form 8-K filed June 17, 2020 (File No. 000-50058)).
3.2			Amended and Restated By-Laws of PRA Group, Inc. (Incorporated by reference to Exhibit 3.2 of the Current Report on Form 8-K filed June 17, 2020 (File No. 000-50058)).
4.1			Form of Common Stock Certificate (Incorporated by reference to Exhibit 4.1 of Amendment No. 1 to the Registration Statement on Form S-1 filed October 15, 2002 (Registration No. 333-99225)).
4.2			Form of Warrant (Incorporated by reference to Exhibit 4.2 of Amendment No. 2 to the Registration Statement on Form S-1 filed October 30, 2002 (Registration No. 333-99225)).
4.3			Indenture, dated as of September 22, 2021 among PRA Group Inc., the domestic subsidiaries of PRA Group Inc., party thereto and Regions Banks, as trustee (Incorporated by reference to Exhibit 4.1 to the Current Report on Form 8-K filed September 24, 2021 (File No. 000-50058)).
4.4			Indenture, dated as of February 6, 2023, among PRA Group, Inc., the domestic subsidiaries of PRA Group, Inc., party thereto and Regions Bank, as trustee (Incorporated by reference to Exhibit 4.1 to the Current Report on Form 8-K filed February 6, 2023 (File No. 000-50058)).
4.5			Indenture, dated as of May 20, 2024, among PRA Group, Inc., the domestic subsidiaries of PRA Group, Inc. party thereto and Regions Bank, as trustee (Incorporated by reference to Exhibit 4.1 to the Current Report on Form 8-K filed May 20, 2024 (File No. 000-50058)).
4.6			Indenture, dated as of September 30, 2025, among PRA Group Europe Holding II S.à r.l, PRA Group, Inc., the domestic subsidiaries of PRA Group, Inc., party thereto and U.S. Bank Trustees Limited, as trustee (Incorporated by reference to Exhibit 4.1 to the Current Report on Form 8-K filed October 1, 2025 (File No. 000-50058)).

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4.7			Description of the Registrant's Securities Registered pursuant to Section 12 of the Securities Exchange Act of 1934 (Incorporated by reference to Exhibit 4.3 of the Annual Report on Form 10-K filed February 26, 2021 (File No. 000-50058)).
10.1*			Form of Restricted Stock Unit Agreement (filed herewith).
10.2*			Form of Performance Stock Unit Agreement (filed herewith).
31.1			Certification of the Chief Executive Officer pursuant to Section 302 of the Sarbanes Oxley Act of 2002 (filed herewith).
31.2			Certification of the Chief Financial Officer pursuant to Section 302 of the Sarbanes Oxley Act of 2002 (filed herewith).
32.1			Certifications of Chief Executive Officer and Chief Financial Officer pursuant to Section 906 of the Sarbanes Oxley Act of 2002 (filed herewith).
101.INS			XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document
101.SCH			XBRL Taxonomy Extension Schema Document
101.CAL			XBRL Taxonomy Extension Calculation Linkable Document
101.LAB			XBRL Taxonomy Extension Label Linkable Document
101.PRE			XBRL Taxonomy Extension Presentation Linkable Document
101.DEF			XBRL Taxonomy Extension Definition Linkbase Document
104			Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)

* Denotes management contract or compensatory plan or arrangement in which directors or executive officers are eligible to participate.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

			PRA Group, Inc.
			(Registrant)
May 8, 2026			By:						/s/ Martin Sjolund
									Martin Sjolund
									President and Chief Executive Officer
									(Principal Executive Officer)

May 8, 2026			By:						/s/ Rakesh Sehgal
									Rakesh Sehgal
									Executive Vice President and Chief Financial Officer
									(Principal Financial and Accounting Officer)

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FAQ

How did PRA Group (PRAA) perform financially in the first quarter of 2026?

PRA Group posted much stronger results in Q1 2026, with net income attributable to the company of $28.2 million versus $3.7 million a year earlier. Total revenues rose 16.7% to $314.5 million, reflecting higher portfolio income and favorable changes in expected recoveries.

What happened to PRA Group (PRAA) cash collections and portfolio purchases in Q1 2026?

Cash collections increased to $551.9 million, up 11.0% year over year, driven by stronger U.S. legal collections and European performance. Portfolio purchases declined to $220.9 million, a 24.3% decrease, as the company prioritized purchase price multiples and net returns over sheer purchasing volume.

How significant were changes in expected recoveries for PRA Group (PRAA) in Q1 2026?

Changes in expected recoveries contributed $43.9 million of portfolio revenue in Q1 2026, up from $27.9 million in 2025. This included $22.7 million of recoveries collected above forecast and a $21.2 million positive adjustment to future recovery expectations, largely from European portfolios.

What is PRA Group (PRAA) estimated remaining collections and segment mix as of March 31, 2026?

Estimated remaining collections totaled $8.55 billion at March 31, 2026. The U.S. accounted for about $3.65 billion, Europe about $4.34 billion, and other markets $0.56 billion, showing a diversified geographic base with Europe slightly larger than the U.S. portfolio.

How leveraged is PRA Group (PRAA) and what liquidity does it have available?

Borrowings were $3.78 billion at March 31, 2026, mainly revolving credit facilities and senior notes. Liquidity remained strong, with $124.8 million in cash and total borrowing availability of about $996 million, including $714.3 million based on current estimated remaining collections.

Did PRA Group (PRAA) return capital to shareholders in the first quarter of 2026?

Yes. PRA Group repurchased 546,681 shares of common stock for $10.0 million at an average price of $18.29 per share. After these buybacks, the company still had $37.7 million remaining under its existing share repurchase authorization, subject to financing covenants.

What were PRA Group (PRAA) key non-GAAP metrics over the last 12 months?

Over the last 12 months, PRA Group reported Adjusted net income of $97.1 million and Adjusted EBITDA of $1.35 billion. These measures adjust for items such as a large goodwill impairment and a gain on sale of an equity method investment to highlight ongoing operating performance.