PRA Group Q3 adjusted profit falls 28.7% in 2026

Net proceeds and available cash from a $400.0 million note issue repaid approximately $400.0 million of North American revolver borrowings.

Available on EDGAR 11/09/2026 - 04:06 PM EST Accepted by SEC EDGAR 11/09/2026 - 04:05 PM EST Learn about SEC filing dates

Rhea-AI Filing Summary

PRA Group, Inc. (PRAA) reported third-quarter 2026 revenue of $286.3 million, down 8.0% year over year. Net income attributable to PRA Group was $14.9 million ($0.39 diluted earnings per share), compared with a $407.7 million loss a year earlier; the prior-year quarter included a $412.6 million pretax goodwill impairment. Adjusted net income attributable to PRA was $14.9 million, down 28.7%.

For the first nine months, revenue rose 12.0% to $973.0 million, and net income attributable to PRA was $101.0 million versus a $361.7 million loss in 2025, which included that impairment. Cash collections increased 4.5% to $1.646 billion, while portfolio purchases fell 16.5% to $746.2 million. Operating activities used $33.9 million in cash, compared with $75.6 million used in the prior-year period.

On October 2, 2026, PRA Group completed a private offering of $400.0 million of 8.500% senior notes due October 15, 2033; net proceeds and available cash repaid approximately $400.0 million of borrowings under its North American revolving credit facility. A program approved August 3, 2026 authorizes repurchases of up to $150.0 million, subject to restrictive covenants in the credit facilities and senior-note indentures.

2 points · 0 major

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Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.

It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.

Rhea-AI Sentiment measures something else, the tone of the wording.

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0 major · 2 points

How the balance works

Positive

• Moderate pointNine-month revenue rose 12.0% to $973.0 million.
• Moderate pointNine-month adjusted net income rose 171.4% to $101.0 million.

Negative

• Moderate pointThird-quarter revenue declined 8.0% to $286.3 million.
• Moderate pointThird-quarter adjusted net income fell 28.7% to $14.9 million.

Filing Explained

PRA bought back $20.0 million of common stock (1,134,323 shares) in the nine months ended September 30, 2026, with no purchases in the third quarter, and reports that repurchased shares are retired—recording a completed share-count reduction, not just permission under its buyback program.

Key Figures

Total revenue: $286.3 million Net income attributable to PRA Group: $14.9 million Adjusted net income attributable to PRA: $14.9 million +5 more

8 metrics

Total revenue $286.3 million Three months ended September 30, 2026; down 8.0% from 2025

Net income attributable to PRA Group $14.9 million Three months ended September 30, 2026

Adjusted net income attributable to PRA $14.9 million Three months ended September 30, 2026; down 28.7% from 2025

Total revenue $973.0 million Nine months ended September 30, 2026; up 12.0% from 2025

Adjusted net income attributable to PRA $101.0 million Nine months ended September 30, 2026; up 171.4% from 2025

Cash collections $1.646 billion Nine months ended September 30, 2026; up 4.5% from 2025

Net cash used in operating activities $33.9 million used Nine months ended September 30, 2026

Senior notes aggregate principal amount $400.0 million 8.500% senior notes due October 15, 2033

Key Terms

nonperforming loan portfolios, estimated remaining collections, purchase price multiples, Changes in expected recoveries, +2 more

6 terms

nonperforming loan portfolios financial

"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

"total estimated remaining collections (ERC) of $8.8 billion"

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 multiples financial

"purchase price multiples (PPMs) for our global Core vintage"

Changes in expected recoveries financial

"Changes in expected recoveries were $14.3 million"

Adjusted cash efficiency ratio financial

"The Adjusted cash efficiency ratio is calculated by dividing"

forward flow agreements financial

"enters into forward flow agreements for the purchase of nonperforming loans"

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

How much revenue and net income did PRAA report for Q3 2026?

PRA Group reported $286.3 million in revenue and $14.9 million in net income attributable to PRA Group for the quarter ended September 30, 2026. Revenue was down 8.0% from $311.1 million a year earlier. The prior-year quarter included a $412.6 million pretax goodwill impairment charge.

What were PRAA's 2033 senior-note terms and use of proceeds?

PRA Group completed a private offering on October 2, 2026, of $400.0 million aggregate principal amount of 8.500% senior notes due October 15, 2033. Interest is payable semiannually in arrears on April 15 and October 15, beginning April 15, 2027. Net proceeds and available cash were used to repay approximately $400.0 million of borrowings under the North American revolving credit facility.

How much is PRAA authorized to repurchase?

A program approved August 3, 2026 authorizes repurchases of up to $150.0 million of common stock. It replaced the prior program, which was terminated on August 3, 2026. PRA Group made no repurchases in the third quarter, and repurchases are subject to restrictive covenants in its credit facilities and senior-note indentures.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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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 September 30, 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 October 30, 2026 was 37,662,408.

PRA Group, Inc.

Form 10-Q for the Quarterly Period Ended September 30, 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			8
			Notes to Consolidated Financial Statements			9
			Note 1. Organization and Business			9
			Note 2. Finance Receivables, net			9
			Note 3. Investments			12
			Note 4. Goodwill			12
			Note 5. Borrowings			13
			Note 6. Derivatives			14
			Note 7. Fair Value			15
			Note 8. Accumulated Other Comprehensive Loss			16
			Note 9. Stockholders' Equity			17
			Note 10. Earnings per Share			17
			Note 11. Income Taxes			17
			Note 12. Commitments and Contingencies			18
			Note 13. Business Segments			18
			Note 14. Recent Accounting Pronouncements			20
			Note 15. Subsequent Event			21
Item 2.			Management's Discussion and Analysis of Financial Condition and Results of Operations			22
Item 3.			Quantitative and Qualitative Disclosures About Market Risk			42
Item 4.			Controls and Procedures			42
PART II. OTHER INFORMATION
Item 1.			Legal Proceedings			43
Item 1A.			Risk Factors			43
Item 2.			Unregistered Sales of Equity Securities and Use of Proceeds			43
Item 3.			Defaults Upon Senior Securities			43
Item 4.			Mine Safety Disclosures			43
Item 5.			Other Information			43
Item 6.			Exhibits			43
Signatures						45

2

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

PRA Group, Inc.

Consolidated Balance Sheets

September 30, 2026 and December 31, 2025

(in thousands)

			(unaudited)
			September 30, 2026						December 31, 2025
ASSETS
Cash and cash equivalents			$	139,096					$	104,409
Investments			160,014						66,628
Finance receivables, net			4,683,573						4,688,024
Income taxes receivable			28,998						17,702
Deferred tax assets, net			58,448						76,955
Right-of-use assets			24,595						29,206
Property and equipment, net			20,396						24,886
Goodwill			26,871						26,871
Prepaid expenses and other assets			86,977						68,641
Total assets			$	5,228,968					$	5,103,322
LIABILITIES AND EQUITY
Liabilities
Accrued expenses and accounts payable			$	102,595					$	131,812
Income taxes payable			37,578						29,845
Deferred tax liabilities, net			31,256						17,064
Lease liabilities			27,344						32,160
Interest-bearing deposits			152,519						106,148
Borrowings			3,714,739						3,697,338
Other liabilities			31,099						48,990
Total liabilities			4,097,130						4,063,357
Equity
Preferred stock, $0.01 par value, 2,000 shares authorized, no shares issued and outstanding			—						—
Common stock, $0.01 par value; 100,000 shares authorized, 37,659 shares issued and outstanding as of September 30, 2026; 100,000 shares authorized, 38,453 shares issued and outstanding as of December 31, 2025			377						385
Additional paid-in capital			2,609						11,474
Retained earnings			1,353,706						1,255,007
Accumulated other comprehensive loss			(289,691)						(287,015)
Total stockholders' equity - PRA Group, Inc.			1,067,001						979,851
Noncontrolling interests			64,837						60,114
Total equity			1,131,838						1,039,965
Total liabilities and equity			$	5,228,968					$	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 and Nine Months Ended September 30, 2026 and 2025

(in thousands, except per share amounts)

(unaudited)

						Three Months Ended September 30,												Nine Months Ended September 30,
						2026						2025						2026						2025
Revenues
Portfolio income						$	270,779					$	258,549					$	808,157					$	750,441
Changes in expected recoveries						14,307						51,358						155,117						112,572
Total portfolio revenue						285,086						309,907						963,274						863,013
Other revenue						1,180						1,233						9,699						5,434
Total revenues						286,266						311,140						972,973						868,447
Operating expenses
Compensation and benefits						66,063						74,237						207,178						223,284
Legal collection costs						46,211						46,764						147,194						117,741
Legal collection fees						18,439						16,558						53,896						47,413
Agency fees						22,993						24,556						70,788						68,612
Professional and outside services						17,002						22,051						60,398						64,225
Communication						7,619						8,377						24,302						28,271
Rent and occupancy						3,451						3,654						10,439						10,638
Depreciation, amortization and impairment of long-lived assets						1,964						2,439						8,396						8,711
Goodwill impairment						—						412,611						—						412,611
Other operating expenses						16,621						15,440						47,943						42,800
Total operating expenses						200,363						626,687						630,534						1,024,306
Income/(loss) from operations						85,903						(315,547)						342,439						(155,859)
Other income/(expense)
Interest expense, net						(63,828)						(64,087)						(191,709)						(187,418)
Gain on sale of equity method investment						—						—						—						38,403
Foreign exchange gain, net						149						67						702						66
Other						(154)						(38)						(500)						(293)
Income/(loss) before income taxes						22,070						(379,605)						150,932						(305,101)
Income tax expense						3,465						24,361						41,614						44,088
Net income/(loss)						18,605						(403,966)						109,318						(349,189)
Net income attributable to noncontrolling interests						3,713						3,737						8,299						12,481
Net income/(loss) attributable to PRA Group, Inc.						$	14,892					$	(407,703)					$	101,019					$	(361,670)
Net income/(loss) per common share attributable to PRA Group, Inc.
Basic						$	0.40					$	(10.43)					$	2.66					$	(9.20)
Diluted						$	0.39					$	(10.43)					$	2.64					$	(9.20)
Weighted average number of shares outstanding
Basic						37,653						39,078						38,041						39,316
Diluted						38,021						39,078						38,278						39,316

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

4

PRA Group, Inc.

Consolidated Statements of Comprehensive Income

For the Three and Nine Months Ended September 30, 2026 and 2025

(in thousands)

(unaudited)

			Three Months Ended September 30,												Nine Months Ended September 30,
			2026						2025						2026						2025
Net income/(loss)			$	18,605					$	(403,966)					$	109,318					$	(349,189)
Other comprehensive income/(loss), net of tax
Foreign currency translation adjustments			(4,745)						(6,394)						(13,327)						168,945
Cash flow hedges			9,148						2,815						15,286						(5,424)
Debt securities available-for-sale			(83)						(24)						(95)						(57)
Other comprehensive income/(loss)			4,320						(3,603)						1,864						163,464
Total comprehensive income/(loss)			22,925						(407,569)						111,182						(185,725)
Comprehensive income attributable to noncontrolling interests			4,003						4,759						12,838						20,910
Comprehensive income/(loss) attributable to PRA Group, Inc.			$	18,922					$	(412,328)					$	98,344					$	(206,635)

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

5

PRA Group, Inc.

Consolidated Statements of Changes in Equity

For the Nine Months Ended September 30, 2026

(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
Net income			—						—						—						57,917						—						1,024						58,941
Other comprehensive income/(loss), net of tax			—						—						—						—						(9,122)						958						(8,164)
Distributions to noncontrolling interests			—						—						—						—						—						(820)						(820)
Vesting of restricted stock			95						1						(1)						—						—						—						—
Repurchase and cancellation of common stock			(588)						(6)						(7,674)						(2,320)						—						—						(10,000)
Share-based compensation expense			—						—						4,589						—						—						—						4,589
Employee stock relinquished for payment of taxes			—						—						(203)						—						—						—						(203)
Balance as of June 30, 2026			37,648						$	376					$	—					$	1,338,814					$	(293,721)					$	67,428					$	1,112,897
Net income			—						—						—						14,892						—						3,713						18,605
Other comprehensive income, net of tax			—						—						—						—						4,030						290						4,320
Distributions to noncontrolling interests			—						—						—						—						—						(6,594)						(6,594)
Vesting of restricted stock			11						1						(1)						—						—						—						—
Share-based compensation expense			—						—						2,798						—						—						—						2,798
Employee stock relinquished for payment of taxes			—						—						(188)						—						—						—						(188)
Balance as of September 30, 2026			37,659						$	377					$	2,609					$	1,353,706					$	(289,691)					$	64,837					$	1,131,838

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

6

PRA Group, Inc.

Consolidated Statements of Changes in Equity

For the Nine Months Ended September 30, 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, 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
Net income			—						—						—						42,374						—						3,339						45,713
Other comprehensive income, net of tax			—						—						—						—						81,179						2,713						83,892
Distributions to noncontrolling interests			—						—						—						—						—						(7,776)						(7,776)
Vesting of restricted stock			82						1						(1)						—						—						—						—
Repurchase and cancellation of common stock			(660)						(7)						(9,993)						—						—						—						(10,000)
Share-based compensation expense			—						—						4,464						—						—						—						4,464
Employee stock relinquished for payment of taxes			—						—						(200)						—						—						—						(200)
Balance as of June 30, 2025			39,074						$	391					$	14,086					$	1,606,182					$	(283,734)					$	59,686					$	1,396,611
Net (loss)/income			—						—						—						(407,703)						—						3,737						(403,966)
Other comprehensive income/(loss), net of tax			—						—						—						—						(4,624)						1,021						(3,603)
Distributions to noncontrolling interests			—						—						—						—						—						(8,965)						(8,965)
Vesting of restricted stock			9						—						—						—						—						—						—
Share-based compensation expense			—						—						4,027						—						—						—						4,027
Employee stock relinquished for payment of taxes			—						—						(132)						—						—						—						(132)
Balance as of September 30, 2025			39,083						$	391					$	17,981					$	1,198,479					$	(288,358)					$	55,479					$	983,972

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

7

PRA Group, Inc.

Consolidated Statements of Cash Flows

For the Nine Months Ended September 30, 2026 and 2025

(in thousands)

(unaudited)

			Nine Months Ended September 30,
			2026						2025
CASH FLOWS FROM OPERATING ACTIVITIES
Net income/(loss)			$	109,318					$	(349,189)
Adjustments to reconcile net income/(loss) to net cash used in operating activities:
Share-based compensation			11,900						12,279
Depreciation, amortization and impairment of long-lived assets			8,396						8,711
Goodwill impairment			—						412,611
Gain on sale of equity method investment			—						(38,403)
Amortization of debt premium and issuance costs			6,351						5,839
Changes in expected recoveries			(155,117)						(112,572)
Deferred income taxes			29,199						(10,420)
Net unrealized foreign currency transaction gain			(5,109)						(11,015)
Other			(1,307)						629
Changes in operating assets and liabilities:
Prepaid expenses and other assets			(4,250)						(4,293)
Accrued expenses, accounts payable and other liabilities			(33,291)						10,201
Net cash used in operating activities			(33,910)						(75,622)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of property and equipment, net			(3,904)						(3,392)
Purchases of nonperforming loan portfolios			(750,625)						(890,241)
Recoveries collected and applied to Finance receivables, net			846,643						827,190
Purchases of investments			(238,799)						(57,898)
Proceeds from sales and maturities of investments			132,939						107,366
Net cash used in investing activities			(13,746)						(16,975)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from lines of credit			451,397						739,727
Principal payments on lines of credit			(400,409)						(916,273)
Principal payments on long-term debt			(7,500)						(7,500)
Proceeds from issuance of 2032 senior notes			—						351,990
Repurchases of common stock			(20,000)						(10,000)
Payments of origination costs and fees			(8,351)						(4,878)
Tax withholdings related to share-based payments			(3,093)						(2,184)
Distributions to noncontrolling interests			(8,116)						(24,005)
Net increase/(decrease) in interest-bearing deposits			56,336						(52,315)
Net cash provided by financing activities			60,264						74,562
Effect of foreign exchange rates			18,610						21,431
Net increase in cash, cash equivalents and restricted cash			31,218						3,396
Cash, cash equivalents and restricted cash, beginning of period			108,643						107,431
Cash, cash equivalents and restricted cash, end of period			$	139,861					$	110,827
Supplemental disclosure of cash flow information
Cash paid for interest			$	211,809					$	213,888
Cash paid for income taxes			11,630						33,042
Reconciliation to Balance Sheet accounts
Cash and cash equivalents			$	139,096					$	107,454
Restricted cash included in Prepaid expenses and other assets			765						3,373
Cash, cash equivalents and restricted cash			$	139,861					$	110,827

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

8

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 September 30, 2026 and December 31, 2025 (in thousands):

			September 30, 2026						December 31, 2025
Amortized cost			$	—					$	—
Negative allowance for expected recoveries			4,683,573						4,688,024
Balance as of end of period			$	4,683,573					$	4,688,024

Changes in Finance receivables, net for the three and nine months ended September 30, 2026 and 2025 were as follows (in thousands):

			Three Months Ended September 30,
			2026																					2025
			Core						Insolvency						Total									Core						Insolvency						Total
Balance as of beginning of period			$	4,406,963					$	310,241					$	4,717,204								$	4,234,269					$	328,307					$	4,562,576
Initial negative allowance for expected recoveries on current period purchases (1)			181,562						47,183						228,745									234,724						20,768						255,492
Recoveries collected and applied to Finance receivables, net (2)			(238,895)						(27,006)						(265,901)									(237,624)						(34,851)						(272,475)
Changes in expected recoveries (3)			12,214						2,093						14,307									44,730						6,628						51,358
Foreign currency translation adjustment			(10,670)						(112)						(10,782)									(21,483)						(3,301)						(24,784)
Balance as of end of period			$	4,351,174					$	332,399					$	4,683,573								$	4,254,616					$	317,551					$	4,572,167

9

			Nine Months Ended September 30,
			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)			652,029						94,137						746,166									828,179						65,520						893,699
Recoveries collected and applied to Finance receivables, net (2)			(757,721)						(88,922)						(846,643)									(720,764)						(106,426)						(827,190)
Changes in expected recoveries (3)			130,340						24,777						155,117									96,397						16,175						112,572
Foreign currency translation adjustment			(56,675)						(2,416)						(59,091)									241,081						11,263						252,344
Balance as of end of period			$	4,351,174					$	332,399					$	4,683,573								$	4,254,616					$	317,551					$	4,572,167

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

The initial negative allowance for expected recoveries on purchases made during the three and nine months ended September 30, 2026 and 2025 was as follows (in thousands):

			Three Months Ended September 30,
			2026																					2025
			Core						Insolvency						Total									Core						Insolvency						Total
Allowance for credit losses at acquisition			$	(844,601)					$	(181,707)					$	(1,026,308)								$	(1,354,100)					$	(75,733)					$	(1,429,833)
Writeoffs, net			844,601						181,707						1,026,308									1,354,100						75,733						1,429,833
Expected recoveries			181,562						47,183						228,745									234,724						20,768						255,492
Initial negative allowance for expected recoveries on current period purchases			$	181,562					$	47,183					$	228,745								$	234,724					$	20,768					$	255,492

			Nine Months Ended September 30,
			2026																					2025
			Core						Insolvency						Total									Core						Insolvency						Total
Allowance for credit losses at acquisition			$	(3,489,056)					$	(343,835)					$	(3,832,891)								$	(4,407,773)					$	(237,067)					$	(4,644,840)
Writeoffs, net			3,489,056						343,835						3,832,891									4,407,773						237,067						4,644,840
Expected recoveries			652,029						94,137						746,166									828,179						65,520						893,699
Initial negative allowance for expected recoveries on current period purchases			$	652,029					$	94,137					$	746,166								$	828,179					$	65,520					$	893,699

The purchase price for purchases made during the three and nine months ended September 30, 2026 and 2025 was as follows (in thousands):

			Three Months Ended September 30,
			2026																					2025
			Core						Insolvency						Total									Core						Insolvency						Total
Face value			$	1,196,277					$	251,125					$	1,447,402								$	1,841,010					$	108,649					$	1,949,659
Noncredit discount			(170,114)						(22,235)						(192,349)									(252,186)						(12,148)						(264,334)
Allowance for credit losses at acquisition			(844,601)						(181,707)						(1,026,308)									(1,354,100)						(75,733)						(1,429,833)
Purchase price			$	181,562					$	47,183					$	228,745								$	234,724					$	20,768					$	255,492

			Nine Months Ended September 30,
			2026																					2025
			Core						Insolvency						Total									Core						Insolvency						Total
Face value			$	4,767,941					$	487,003					$	5,254,944								$	6,076,491					$	339,965					$	6,416,456
Noncredit discount			(626,856)						(49,031)						(675,887)									(840,539)						(37,378)						(877,917)
Allowance for credit losses at acquisition			(3,489,056)						(343,835)						(3,832,891)									(4,407,773)						(237,067)						(4,644,840)
Purchase price			$	652,029					$	94,137					$	746,166								$	828,179					$	65,520					$	893,699

10

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

Recoveries collected and applied to Finance receivables, net for the three and nine months ended September 30, 2026 and 2025 were as follows (in thousands):

			Three Months Ended September 30,
			2026																					2025
			Core						Insolvency						Total									Core						Insolvency						Total
Recoveries collected (a)			$	497,598					$	39,082					$	536,680								$	484,305					$	46,719					$	531,024
Amounts reclassified to portfolio income (b)			(258,703)						(12,076)						(270,779)									(246,681)						(11,868)						(258,549)
Recoveries collected and applied to Finance receivables, net			$	238,895					$	27,006					$	265,901								$	237,624					$	34,851					$	272,475

			Nine Months Ended September 30,
			2026																					2025
			Core						Insolvency						Total									Core						Insolvency						Total
Recoveries collected (a)			$	1,531,145					$	123,655					$	1,654,800								$	1,436,348					$	141,283					$	1,577,631
Amounts reclassified to portfolio income (b)			(773,424)						(34,733)						(808,157)									(715,584)						(34,857)						(750,441)
Recoveries collected and applied to Finance receivables, net			$	757,721					$	88,922					$	846,643								$	720,764					$	106,426					$	827,190

(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 September 30, 2026 and 2025 were as follows (in thousands):

			Three Months Ended September 30,
			2026																					2025
			Core						Insolvency						Total									Core						Insolvency						Total
Recoveries collected in excess of forecast			$	5,298					$	1,188					$	6,486								$	21,406					$	5,945					$	27,351
Changes in expected future recoveries			6,916						905						7,821									23,324						683						24,007
Changes in expected recoveries			$	12,214					$	2,093					$	14,307								$	44,730					$	6,628					$	51,358

Changes in expected recoveries for the three months ended September 30, 2026 were $14.3 million, which included a $7.8 million positive adjustment to changes in expected future recoveries and $6.5 million in recoveries collected in excess of forecast (cash collections overperformance). Changes in expected future recoveries were primarily due to increases and the impact of timing adjustments in the collections forecasts on the 2024 and 2025 U.S. Core pools and certain European pools, partially offset by decreases in the collections forecasts on the 2021-2023 U.S. Core pools. Recoveries collected in excess of forecast were due primarily to cash collections overperformance in Europe.

Changes in expected recoveries for the three months ended September 30, 2025 were $51.4 million, which included $27.4 million in recoveries collected in excess of forecast and a $24.0 million positive adjustment to changes in expected future recoveries. Recoveries collected in excess of forecast were due largely to cash collections overperformance in Europe, and also included overperformance in South America and the U.S. Collections overperformance in the U.S. was net of a one-time payment of $15.0 million to a seller to modify the terms and conditions of certain previously purchased portfolios to allow for increased use of legal collections. Changes in expected future recoveries were driven by the results of the Company's forecasting models, combined with evaluations of recent performance, and were due, in large part, to increases in the collections forecasts for certain European and South American pools and the 2024 U.S. Core pool (driven by the increase in estimated remaining collections resulting from the above-mentioned contract modification) and 2017-2020 U.S. Core pools. These increases were partially offset by negative changes in expected future recoveries on the 2021-2023 U.S. Core pools, a portion of which was driven by changes in the expected timing of the recoveries.

11

Changes in expected recoveries for the nine months ended September 30, 2026 and 2025 were as follows (in thousands):

			Nine Months Ended September 30,
			2026																					2025
			Core						Insolvency						Total									Core						Insolvency						Total
Recoveries collected in excess of forecast			$	43,628					$	8,298					$	51,926								$	68,012					$	16,141					$	84,153
Changes in expected future recoveries			86,712						16,479						103,191									28,385						34						28,419
Changes in expected recoveries			$	130,340					$	24,777					$	155,117								$	96,397					$	16,175					$	112,572

Changes in expected recoveries for the nine months ended September 30, 2026 were $155.1 million, which included a $103.2 million positive adjustment to changes in expected future recoveries and $51.9 million in recoveries collected in excess of forecast. As described in the Form 10-Q for the quarterly period ended June 30, 2026, the Company updated the forecasts for a majority of the pools in its European markets as of June 30, 2026, which resulted in a positive adjustment to changes in expected future recoveries of approximately $105 million. Recoveries collected in excess of forecast were due primarily to cash collections overperformance in Europe.

Changes in expected recoveries for the nine months ended September 30, 2025 were $112.6 million, which included $84.2 million in recoveries collected in excess of forecast and a $28.4 million positive adjustment to changes in expected future recoveries. Recoveries collected in excess of forecast were primarily due to cash collections overperformance in Europe, South America and, to a lesser extent, the U.S., where collections overperformance was impacted by a one-time payment of $15.0 million to a seller to modify the terms and conditions of certain previously purchased portfolios to allow for increased use of legal collections. Changes in expected future recoveries were driven by the results of the Company's forecasting models, combined with evaluations of recent performance, and were due, in large part, to increases in the collections forecasts for certain European and South American pools and the U.S. 2024 Core pool (driven by the increase in estimated remaining collections resulting from the above-mentioned contract modification). These increases were partially offset by negative changes in expected future recoveries on the 2021-2023 U.S. Core pools, a portion of which was driven by changes in the expected timing of the recoveries.

Note 3. Investments

Investments consisted of the following as of September 30, 2026 and December 31, 2025 (in thousands):

			September 30, 2026						December 31, 2025
Debt securities (available-for-sale)
Swedish treasury securities			$	133,137					$	64,934
Finnish corporate notes			25,670						—
Equity securities
Private equity funds			1,207						1,694
Total investments			$	160,014					$	66,628

Debt securities

As of September 30, 2026, the Company's investments in debt securities consisted of Swedish treasury securities maturing within one year and Finnish corporate notes maturing in approximately two years. As of September 30, 2026 and December 31, 2025, the amortized cost and fair value of these investments were as follows (in thousands):

			September 30, 2026																					December 31, 2025
			Amortized Cost						Gross Unrealized Gains												Aggregate Fair Value									Amortized Cost						Gross Unrealized Gains												Aggregate Fair Value
Swedish treasury securities			$	133,123					$	14											$	133,137								$	64,825					$	109											$	64,934
Finnish corporate notes			25,652						18												25,670									—						—												—

12

Note 4. Goodwill

Changes in goodwill for the three and nine months ended September 30, 2026 and 2025, were as follows (in thousands):

			Three Months Ended September 30,															Nine Months Ended September 30,
			2026						2025									2026						2025
Goodwill			$	439,482					$	439,449								$	439,482					$	396,357
Accumulated impairment loss			(412,611)						—									(412,611)						—
Balance as of beginning of period			26,871						439,449									26,871						396,357
Activity during the period
Goodwill impairment			—						(412,611)									—						(412,611)
Foreign currency translation			—						33									—						43,125
Goodwill			439,482						439,482									439,482						439,482
Accumulated impairment loss			(412,611)						(412,611)									(412,611)						(412,611)
Balance as of end of period			$	26,871					$	26,871								$	26,871					$	26,871

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 September 30, 2026, the Company determined there were no indicators that goodwill was more-likely-than-not impaired. As of September 30, 2025, the Company determined that the goodwill in its Debt Buying and Collection ("DBC") reporting unit was fully impaired, and as a result, recorded a pretax goodwill impairment charge of $412.6 million in the Consolidated Income Statement for the three months ended September 30, 2025.

Note 5. Borrowings

Borrowings consisted of the following as of September 30, 2026 and December 31, 2025 (in thousands):

			September 30, 2026						December 31, 2025
North American revolving credit facility (1)			$	561,438					$	520,736
North American term loan (2)			452,611						460,111
United Kingdom revolving credit facility (3)			510,703						499,848
European revolving credit facility (4)			562,904						577,335
Colombian revolving credit facility			228						2,611
Credit facility borrowings			2,087,884						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			339,840						352,350
Senior notes			1,637,840						1,650,350
Credit facility borrowings and senior notes			3,725,724						3,710,991
Unamortized debt premium and issuance costs, net			(10,985)						(13,653)
Total borrowings			$	3,714,739					$	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 April 30, 2031.

On October 2, 2026, the Company completed the private offering of $400.0 million in aggregate principal amount of 8.500% senior notes due October 15, 2033. Refer to Note 15 for additional information.

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 September 30, 2026.

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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 included in the Consolidated Balance Sheets as of September 30, 2026 and December 31, 2025 were as follows (in thousands):

						September 30, 2026						December 31, 2025
Interest rate swaps (designated as hedging instruments)
Prepaid expenses and other assets						$	13,482					$	2,190
Other liabilities						1,145						10,323
Foreign exchange forward contracts (not designated as hedging instruments)
Prepaid expenses and other assets						4,292						914
Other liabilities						614						2,062

Derivatives designated as hedging instruments

The effects of interest rate swaps designated as cash flow hedging instruments for the three and nine months ended September 30, 2026 and 2025 were as follows (in thousands):

						Gain/(loss) recognized in OCI, net of tax
						Three Months Ended September 30,															Nine Months Ended September 30,
Hedging instrument						2026						2025									2026						2025
Interest rate swaps						$	8,746					$	3,647								$	14,176					$	(364)
						Gain/(loss) reclassified from OCI into income
						Three Months Ended September 30,															Nine Months Ended September 30,
Included in Income statement line-item						2026						2025									2026						2025
Interest expense, net						$	(534)					$	1,100								$	(1,474)					$	6,675

As of September 30, 2026 and December 31, 2025, the notional amount of outstanding interest rate swaps was $717.6 million and $883.0 million, respectively. These swaps remained highly effective as of September 30, 2026 and have remaining terms ranging from four months to approximately four years. As of September 30, 2026, the Company estimates that approximately $1.4 million of net derivative gains 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 and nine months ended September 30, 2026 and 2025 were as follows (in thousands):

												Three Months Ended September 30,															Nine Months Ended September 30,
			Included in Income Statement line-item						2026						2025									2026						2025
						Foreign exchange gain/(loss), net						$	1,855					$	5,079								$	10,743					$	(10,617)
						Interest expense, net						592						271									1,211						270

As of September 30, 2026 and December 31, 2025, the notional amount of outstanding foreign exchange forward contracts was $433.7 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 September 30, 2026, none of the open derivative positions would have been eligible for offsetting under the terms of the Company's netting agreements.

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Note 7. Fair Value

Financial instruments carried at fair value

As of September 30, 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
September 30, 2026
Assets
Government securities			$	133,137					$	—											$	133,137
Corporate notes (1)			—						25,670												25,670
Derivatives (2)			—						17,774												17,774
Liabilities
Derivatives (2)			—						1,759												1,759
December 31, 2025
Assets
Government securities			$	64,934					$	—											$	64,934
Derivatives (2)			—						3,104												3,104
Liabilities
Derivatives (2)			—						12,385												12,385

(1)Fair value of corporate notes is based on prices obtained from a third-party pricing service. The pricing service uses a model that incorporates contributed dealer quotes and reported trades for the same security.

(2)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 September 30, 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
September 30, 2026
Financial assets
Cash and cash equivalents			$	139,096					$	—					$	—					$	139,096
Finance receivables, net (1)			—						—						4,623,170						4,683,573
Financial liabilities
Interest-bearing deposits (2)			—						152,519						—						152,519
Revolving lines of credit (3)			—						1,635,273						—						1,635,273
Term loan (3) (4)			—						452,611						—						452,611
Senior notes (4) (5)			—						1,627,732						—						1,637,840
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.

15

During the three months ended September 30, 2025, the Company assessed the goodwill in its DBC reporting unit for impairment and determined that the goodwill was fully impaired. The estimated fair value of the DBC reporting unit represents a Level 3 nonrecurring fair value measurement.

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 and nine months ended September 30, 2026 and 2025, were as follows (in thousands):

												Three Months Ended September 30,																					Nine Months Ended September 30,
Cash flow hedges						Included in Income Statement line-item						2026						2025																					2026						2025
Interest rate swaps						Interest expense, net						$	(534)					$	1,100																				$	(1,474)					$	6,675
Income tax effect (1)						Income tax expense						132						(269)																					364						(1,615)
Total gain/(loss) on cash flow hedges												$	(402)					$	831																				$	(1,110)					$	5,060

(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 and nine months ended September 30, 2026 and 2025, were as follows (in thousands):

						Three Months Ended September 30,
						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						$	114					$	407					$	(294,242)					$	(293,721)								$	172					$	(6,128)					$	(277,778)					$	(283,734)
Other comprehensive gain/(loss) before reclassifications						(83)						8,746						(5,035)						3,628									(24)						3,646						(7,415)						(3,793)
Reclassifications, net						—						402						—						402									—						(831)						—						(831)
Net current period other comprehensive gain/(loss)						(83)						9,148						(5,035)						4,030									(24)						2,815						(7,415)						(4,624)
Balance as of end of period						$	31					$	9,555					$	(299,277)					$	(289,691)								$	148					$	(3,313)					$	(285,193)					$	(288,358)

(1)Net of deferred taxes for unrealized gains from cash flow hedges of $(2.9) million and $(0.9) million for the three months ended September 30, 2026 and 2025, respectively.

						Nine Months Ended September 30,
						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						(95)						14,176						(17,867)						(3,786)									(57)						(364)						160,517						160,096
Reclassifications, net						—						1,110						—						1,110									—						(5,060)						—						(5,060)
Net current period other comprehensive gain/(loss)						(95)						15,286						(17,867)						(2,676)									(57)						(5,424)						160,517						155,036
Balance as of end of period						$	31					$	9,555					$	(299,277)					$	(289,691)								$	148					$	(3,313)					$	(285,193)					$	(288,358)

(1)Net of deferred taxes for unrealized (gains)/losses from cash flow hedges of $(3.0) million and $1.1 million for the nine months ended September 30, 2026 and 2025, respectively.

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Note 9. Stockholders' Equity

On August 3, 2026, the Board of Directors approved a new share repurchase program under which the Company is authorized to repurchase up to $150.0 million of its outstanding common stock. The new share repurchase program replaces the Company's prior share repurchase program, which was terminated on August 3, 2026, and under which no additional shares can be repurchased. The Company did not repurchase any shares during the three months ended September 30, 2026. During the nine months ended September 30, 2026, the Company repurchased 1,134,323 shares of its common stock for a total of $20.0 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 September 30, 2026, there was $150.0 million remaining for share repurchases under the new share repurchase program.

Note 10. Earnings per Share

The following tables provide a reconciliation between basic earnings per share ("EPS") and diluted EPS for the three and nine months ended September 30, 2026 and 2025 (in thousands, except per share amounts):

			Three Months Ended September 30,
			2026																					2025
			Net Income Attributable to PRA Group, Inc.						Weighted Average Common Shares						EPS									Net Loss Attributable to PRA Group, Inc.						Weighted Average Common Shares						EPS
Basic EPS			$	14,892					37,653						$	0.40								$	(407,703)					39,078						$	(10.43)
Dilutive effect of nonvested share awards									368						(0.01)															—						—
Diluted EPS			$	14,892					38,021						$	0.39								$	(407,703)					39,078						$	(10.43)
			Nine Months Ended September 30,
			2026																					2025
			Net Income Attributable to PRA Group, Inc.						Weighted Average Common Shares						EPS									Net Loss Attributable to PRA Group, Inc.						Weighted Average Common Shares						EPS
Basic EPS			$	101,019					38,041						$	2.66								$	(361,670)					39,316						$	(9.20)
Dilutive effect of nonvested share awards									237						(0.02)															—						—
Diluted EPS			$	101,019					38,278						$	2.64								$	(361,670)					39,316						$	(9.20)

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 and nine months ended September 30, 2026 and 2025 was as follows (in thousands, except percentages):

			Three Months Ended September 30,															Nine Months Ended September 30,
			2026						2025									2026						2025
Income/(loss) before income taxes			$	22,070					$	(379,605)								$	150,932					$	(305,101)
Income tax expense			3,465						24,361									41,614						44,088
Effective tax rate			15.7		%				(6.4)		%							27.6		%				(14.5)		%

The relationship between Income/(loss) before income taxes and Income tax expense for the three and nine months ended September 30, 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. The effective tax rate for the three months ended September 30, 2026, reflects a decrease in the forecasted annual effective tax rate due to changes in the forecasted mix of income across jurisdictions. The effective tax rate for the prior year periods was impacted by the goodwill impairment charge recorded during the three months ended September 30, 2025.

17

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 September 30, 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 September 30, 2026, there were no material developments in the legal proceeding disclosed in the 2025 Form 10-K.

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.

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Segment financial information

Segment operating results and reconciliations to the consolidated totals for the three and nine months ended September 30, 2026 and 2025 were as follows (in thousands):

			Three Months Ended September 30,
			2026																		2025
			U.S.						Europe						Total						U.S.						Europe						Total
Revenues from external customers			$	150,336					$	110,198					$	260,534					$	158,868					$	117,142					$	276,010
All other revenues (1)															25,732																		35,130
Total consolidated revenues															$	286,266																	$	311,140
Segment expenses (2)
Compensation and benefits			35,646						20,344						55,990						44,077						21,168						65,245
Legal collection expenses			52,155						9,186						61,341						51,641						8,153						59,794
Professional and outside services			11,856						4,260						16,116						13,576						4,065						17,641
Other segment items (3)			21,469						15,200						36,669						21,220						14,567						35,787
Adjusted segment operating income			29,210						61,208						90,418						28,354						69,189						97,543
Reconciliation to consolidated totals
All other operating income and corporate expenses (4)															(4,515)																		(479)
Goodwill impairment															—																		(412,611)
Income/(loss) from operations															85,903																		(315,547)
Interest expense, net															(63,828)																		(64,087)
Other, net															(5)																		29
Income/(loss) before income taxes															$	22,070																	$	(379,605)

			Nine Months Ended September 30,
			2026																		2025
			U.S.						Europe						Total						U.S.						Europe						Total
Revenues from external customers			$	457,607					$	452,443					$	910,050					$	432,697					$	336,739					$	769,436
All other revenues (1)															62,923																		99,011
Total consolidated revenues															$	972,973																	$	868,447
Segment expenses (2)
Compensation and benefits			114,340						58,542						172,882						134,973						60,582						195,555
Legal collection expenses			162,532						29,048						191,580						129,220						26,198						155,418
Professional and outside services			36,580						13,800						50,380						40,078						12,786						52,864
Other segment items (3)			67,441						45,479						112,920						65,182						40,634						105,816
Adjusted segment operating income			76,714						305,574						382,288						63,244						196,539						259,783
Reconciliation to consolidated totals
All other operating income and corporate expenses (4)															(39,849)																		(3,031)
Goodwill impairment															—																		(412,611)
Income/(loss) from operations															342,439																		(155,859)
Interest expense, net															(191,709)																		(187,418)
Gain on sale of equity method investment															—																		38,403
Other, net															202																		(227)
Income/(loss) before income taxes															$	150,932																	$	(305,101)

(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.

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Other segment balances and reconciliations to the consolidated totals for the three and nine months ended September 30, 2026 and 2025 were as follows (in thousands):

						U.S.						Europe						All Other (1)						Consolidated Total
Three months ended September 30, 2026
Interest expense, net						$	40,421					$	25,089					$	(1,682)					$	63,828
Depreciation and amortization						992						943						24						1,959
Income tax expense/(benefit)						114						7,912						(4,561)						3,465
Three months ended September 30, 2025
Interest expense, net						$	39,006					$	26,706					$	(1,625)					$	64,087
Depreciation and amortization						1,060						775						31						1,866
Goodwill impairment						15,761						361,249						35,601						412,611
Income tax expense/(benefit)						(4,072)						12,737						15,696						24,361

						U.S.						Europe						All Other (1)						Consolidated Total
Nine months ended September 30, 2026
Interest expense, net						$	116,713					$	79,438					$	(4,442)					$	191,709
Depreciation and amortization						2,773						2,697						83						5,553
Income tax expense/(benefit)						(2,606)						47,466						(3,246)						41,614
Nine months ended September 30, 2025
Interest expense, net						$	115,555					$	75,568					$	(3,705)					$	187,418
Depreciation and amortization						4,947						2,255						105						7,307
Goodwill impairment						15,761						361,249						35,601						412,611
Income tax expense/(benefit)						(11,039)						25,599						29,528						44,088

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

Note 14. Recent 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 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 15, 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.

20

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

Note 15. Subsequent Event

2033 senior notes

On October 2, 2026, the Company completed the private offering of $400.0 million in aggregate principal amount of its 8.500% senior notes due October 15, 2033. Interest on the notes is payable semiannually in arrears on April 15 and October 15 of each year, commencing on April 15, 2027. The Company used the net proceeds from this offering and available cash to repay approximately $400.0 million aggregate principal amount of outstanding borrowings under its North American revolving credit facility.

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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 ongoing geopolitical conflicts 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 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;

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

•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.

22

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.

Third quarter and year-to-date business trends and results

During the third quarter of 2026, we continued to execute against our PRA 3.0 strategic plan, generating higher portfolio income and lower operating expenses while continuing to invest in our legal collections channel, technology modernization and other initiatives. We purchased $228.7 million in portfolios and collected $535.6 million during the quarter. Our results also included the following:

•Third quarter Net income attributable to PRA Group, Inc. of $14.9 million, an increase of $422.6 million compared to the prior year period, which included a pretax goodwill impairment charge of $412.6 million. Year-to-date Net income attributable to PRA Group, Inc. of $101.0 million, an increase of $462.7 million compared to the prior year period, which included a pretax goodwill impairment charge of $412.6 million.

•Third quarter Adjusted net income attributable to PRA of $14.9 million, a decrease of $6.0 million compared to the prior year period. Year-to-date Adjusted net income attributable to PRA of $101.0 million, an increase of $63.8 million compared to the prior year period ("Adjusted net income attributable to PRA" is a non-GAAP financial measure; refer to section "Non-GAAP Financial Measures" below).

•Third quarter Cash efficiency and Adjusted cash efficiency ratios of 62.6%; an improvement of more than 200 basis points in the Adjusted cash efficiency ratio compared to the prior year period, which reflected workforce reductions, organizational simplification and other cost initiatives implemented as part of our PRA 3.0 strategy ("Adjusted cash efficiency ratio" 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 40.0% and 54.8%, respectively, of September 30, 2026 total estimated remaining collections ("ERC") of $8.8 billion.

•Maintenance of a diversified capital structure, consistent with our targeted leverage and liquidity objectives. Subsequent to quarter-end, we issued $400.0 million of 8.500% senior notes due October 15, 2033, further extending our debt maturity profile (refer to Note 15).

Market environment

We observed heightened competition in the U.S. market, while credit card balances have remained elevated and charge-off rates continued to support portfolio supply. In Europe, portfolio supply continued to trend higher, and we expect that trend will continue into the fourth quarter. Consistent with our PRA 3.0 strategy, we remained focused on deploying capital globally where we see the most attractive net returns.

23

SELECTED CONSOLIDATED FINANCIAL DATA

As of or for the period ended (in thousands, except per share, ratio and headcount data)						Third Quarter																		Year-to-Date
						2026						2025						% Change						2026						2025						% Change
Income statement
Portfolio income						$	270,779					$	258,549					4.7		%				$	808,157					$	750,441					7.7		%
Changes in expected recoveries						14,307						51,358						(72.1)						155,117						112,572						37.8
Total revenues						286,266						311,140						(8.0)						972,973						868,447						12.0
Total operating expenses						200,363						626,687						(68.0)						630,534						1,024,306						(38.4)
Adjusted operating expenses (1)						200,363						214,076						(6.4)						630,534						611,695						3.1
Interest expense, net						63,828						64,087						(0.4)						191,709						187,418						2.3
Net income/(loss) attributable to PRA Group, Inc.						14,892						(407,703)						NM						101,019						(361,670)						NM
Adjusted net income attributable to PRA (2)						14,892						20,877						(28.7)						101,019						37,224						171.4
Diluted earnings per share						0.39						(10.43)						NM						2.64						(9.20)						NM
Adjusted diluted earnings per share (2)						0.39						0.53						(26.4)						2.64						0.94						180.9
Performance data and ratios
Net income/(loss) attributable to PRA Group, Inc. (last 12 months)						$	157,547					$	(343,214)					NM
Adjusted net income attributable to PRA (last 12 months) (2)						136,376						55,680						144.9
Adjusted EBITDA (last 12 months) (3)						1,377,754						1,265,490						8.9
Cash efficiency ratio (4)						62.6		%				(15.4)		%										61.9		%				35.2		%
Adjusted cash efficiency ratio (5)						62.6						60.6												61.9						61.3
Return on average Total stockholders' equity - PRA Group, Inc. ("ROE") (6)						5.6						(144.0)												13.2						(41.8)
Return on average tangible equity ("ROATE") (7)						5.8						(181.6)												13.5						(57.9)
Adjusted return on average tangible equity ("Adjusted ROATE") (8)						5.8						9.3												13.5						6.0
Portfolio volumes
Portfolio purchases						$	228,745					$	255,492					(10.5)		%				$	746,166					$	893,699					(16.5)		%
Cash collections						535,643						542,244						(1.2)						1,646,116						1,575,968						4.5
Estimated remaining collections (period-end)						8,793,635						8,399,952						4.7
Credit facility availability (period-end)
Based on current ERC						$	769,663					$	888,904					(13.4)%
Additional availability						262,236						301,371						(13.0)
Total availability						1,031,899						1,190,275						(13.3)
Balance sheet (period-end)
Finance receivables, net						$	4,683,573					$	4,572,167					2.4%
Borrowings						3,714,739						3,606,978						3.0
Total stockholders' equity - PRA Group, Inc.						1,067,001						928,493						14.9
Headcount (period-end)
Full-time equivalents						2,367						2,814						(15.9)		%

(1)Total operating expenses excluding the impact of Goodwill impairment ("Adjusted operating expenses") is a non-GAAP financial measure. Refer to section "Non-GAAP Financial Measures" below.

(2)Net income/(loss) attributable to PRA Group, Inc. and Diluted earnings per share excluding the impact of certain items that management does not consider indicative of our ongoing operations ("Adjusted net income attributable to PRA" and "Adjusted diluted earnings per share", respectively), are non-GAAP financial measures. Refer to section "Non-GAAP Financial Measures" below.

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

(4)Calculated by dividing cash receipts less operating expenses by cash receipts, both of which are determined based on GAAP.

(5)Calculated by dividing cash receipts less Adjusted operating expenses by cash receipts ("Adjusted cash efficiency ratio"), which is a non-GAAP financial measure. Refer to section "Non-GAAP Financial Measures" below.

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

(7)ROATE is a non-GAAP financial measure calculated by dividing annualized Net income/(loss) attributable to PRA Group, Inc. by average Total stockholders' equity - PRA Group, Inc. less average goodwill and average other intangible assets ("Average tangible equity"), which is also a non-GAAP financial measure. Refer to section "Non-GAAP Financial Measures" below.

(8)Adjusted ROATE is a non-GAAP financial measure. Refer to section "Non-GAAP Financial Measures" below.

NM Not meaningful.

24

RESULTS OF OPERATIONS

Three months ended September 30, 2026 ("Third Quarter 2026" or "Q3 2026") compared to three months ended September 30, 2025 ("Third Quarter 2025" or "Q3 2025"); and nine months ended September 30, 2026 ("Year-to-Date 2026") compared to nine months ended September 30, 2025 ("Year-to-Date 2025").

Consolidated and business segment results

Portfolio purchases

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

			Third Quarter																											Year-to-Date
			2026						2025						$ Change						% Change									2026						2025						$ Change						% Change
U.S.			$	92,278					$	134,481					$	(42,203)					(31.4)		%							$	320,237					$	477,769					$	(157,532)					(33.0)
Europe			129,940						101,173						28,767						28.4									395,929						361,641						34,288						9.5
Other markets (1)			6,527						19,838						(13,311)						(67.1)									30,000						54,289						(24,289)						(44.7)
Total portfolio purchases			$	228,745					$	255,492					$	(26,747)					(10.5)		%							$	746,166					$	893,699					$	(147,533)					(16.5)		%

(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 Q3 2026 decreased by $26.7 million, or 10.5%, compared to Q3 2025. Total purchases of $228.7 million in Q3 2026 reflected the allocation of a greater portion of our capital to Europe, where we observed better relative returns in select markets. Year-to-date 2026 portfolio purchases decreased by $147.5 million, or 16.5%, compared to the prior year period. The Q3 2026 and year-to-date 2026 purchase price multiples ("PPMs") for our global Core vintage were 1.94x and 1.97x, respectively. 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 continues 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.: Q3 2026 portfolio purchases decreased by $42.2 million as pricing remained competitive and we remained disciplined in our purchasing and long-term approach focused on net returns. Year-to-date 2026 portfolio purchases decreased by $157.5 million compared to the prior year period. The Q3 2026 PPM for our U.S. Core vintage of 2.20x was an increase compared to the second quarter of 2026. The year-to-date 2026 PPM for our U.S. Core vintage was 2.10x.

•Europe: Q3 2026 portfolio purchases increased by $28.8 million as we continued to invest in portfolios that met our return requirements. Year-to-date 2026 portfolio purchases increased by $34.3 million compared to the prior year period. The Q3 2026 and year-to-date 2026 PPMs for our European Core vintage were 1.76x and 1.84x, respectively. The decrease in the Q3 2026 PPM reflected purchase of a higher mix of portfolios with a lower cost to collect.

25

Cash collections

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

			Third Quarter																											Year-to-Date
			2026						2025						$ Change						% Change									2026						2025						$ Change						% Change
U.S.
Call center/other			$	106,586					$	133,462					$	(26,876)					(20.1)		%							$	353,515					$	397,518					$	(44,003)					(11.1)		%
Legal			148,280						124,815						23,465						18.8									439,438						355,082						84,356						23.8
Core			254,866						258,277						(3,411)						(1.3)									792,953						752,600						40,353						5.4
Insolvency			19,936						21,131						(1,195)						(5.7)									61,511						62,895						(1,384)						(2.2)
Cash collections - U.S.			274,802						279,408						(4,606)						(1.6)									854,464						815,495						38,969						4.8
Europe
Call center/other			121,623						113,330						8,293						7.3									357,884						324,619						33,265						10.2
Legal			73,855						72,580						1,275						1.8									230,033						211,314						18,719						8.9
Core			195,478						185,910						9,568						5.1									587,917						535,933						51,984						9.7
Insolvency			17,574						22,658						(5,084)						(22.4)									55,779						68,472						(12,693)						(18.5)
Cash collections - Europe			213,052						208,568						4,484						2.1									643,696						604,405						39,291						6.5
Other markets (1)			47,789						54,268						(6,479)						(11.9)									147,956						156,068						(8,112)						(5.2)
Total cash collections			$	535,643					$	542,244					$	(6,601)					(1.2)		%							$	1,646,116					$	1,575,968					$	70,148					4.5		%

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

Our total cash collections of $535.6 million in Q3 2026 were slightly above our expectations for the quarter and decreased by $6.6 million, or 1.2%, compared to Q3 2025, reflecting lower levels of portfolio purchases over the past 18 months, consistent with our focus on net returns. Year-to-date 2026 cash collections increased by $70.1 million, or 4.5%, compared to the prior year period.

•U.S.: Q3 2026 cash collections decreased by $4.6 million driven by a net decrease of $26.9 million from call center and other channels, partially offset by a $23.5 million increase in legal collections due to higher volume. Legal collections represented 58.2% of Core cash collections. Year-to-date 2026 cash collections increased by $39.0 million driven by an $84.4 million increase in legal collections, partially offset by a net decrease of $44.0 million from call center and other channels.

•Europe: Q3 2026 cash collections increased by $4.5 million driven by an increase of $9.6 million in Core collections distributed broadly across our markets, partially offset by a decrease of $5.1 million in Insolvency collections. Year-to-date 2026 cash collections in Europe increased by $39.3 million driven by an increase of $52.0 million in Core collections, partially offset by a decrease of $12.7 million in Insolvency collections, and was due, in part, to favorable foreign exchange rate variation.

26

Portfolio revenue

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

			Third Quarter																											Year-to-Date
			2026						2025						$ Change						% Change									2026						2025						$ Change						% Change
U.S.			$	149,656					$	157,861					$	(8,205)					(5.2)		%							$	448,969					$	427,748					$	21,221					5.0		%
Europe			109,830						117,013						(7,183)						(6.1)									451,667						336,352						115,315						34.3
Other markets (1)			25,600						35,033						(9,433)						(26.9)									62,638						98,913						(36,275)						(36.7)
Total portfolio revenue			$	285,086					$	309,907					$	(24,821)					(8.0)		%							$	963,274					$	863,013					$	100,261					11.6		%
By component
Portfolio income			$	270,779					$	258,549					$	12,230					4.7		%							$	808,157					$	750,441					$	57,716					7.7		%
Recoveries collected in excess of forecast			6,486						27,351						(20,865)						(76.3)									51,926						84,153						(32,227)						(38.3)
Changes in expected future recoveries			7,821						24,007						(16,186)						(67.4)									103,191						28,419						74,772						263.1
Changes in expected recoveries			14,307						51,358						(37,051)						(72.1)									155,117						112,572						42,545						37.8
Total portfolio revenue			$	285,086					$	309,907					$	(24,821)					(8.0)		%							$	963,274					$	863,013					$	100,261					11.6		%

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

Our total portfolio revenue in Q3 2026 decreased by $24.8 million, or 8.0%, compared to Q3 2025, driven by lower Changes in expected recoveries, which decreased by $37.1 million, partially offset by higher Portfolio income, which increased by $12.2 million. The decrease in Changes in expected recoveries reflected lower recoveries collected in excess of forecast and lower changes in expected future recoveries following the June 30, 2026 update to the forecasts for the majority of our European pools, which reflected sustained cash collections overperformance across multiple markets, among other factors. The increase in Portfolio income was driven primarily by recent portfolio purchases in Europe. Year-to-date 2026 portfolio revenue increased by $100.3 million, or 11.6%, compared to the prior year period, driven by higher Portfolio income, which increased by $57.7 million, and higher Changes in expected recoveries, which increased by $42.5 million. Portfolio income, the yield component of our revenue, which is more predictable than Changes in expected recoveries, increased by 4.7% for the quarter and 7.7% year-to-date.

•U.S.: Q3 2026 portfolio revenue decreased by $8.2 million due primarily to a decrease of $7.4 million in Changes in expected recoveries, reflecting lower net increases in the collections forecasts compared to the prior year period and net underperformance in Q3 2026 compared to net overperformance in Q3 2025. Q3 2026 Changes in expected recoveries were mainly impacted by an increase in the collections forecasts and the impact of timing adjustments on the 2024 and 2025 Core pools, partially offset by decreases in the collections forecasts on the 2021-2023 Core pools. Net underperformance in Q3 2026 was driven mainly by the 2021-2024 Core pools, partially offset by overperformance on the 2020 and earlier Core pools and the 2025 Core pool. Year-to-date 2026 portfolio revenue increased by $21.2 million due to increases of $15.3 million in Portfolio income and $5.9 million in Changes in expected recoveries. The increase in Portfolio income was due primarily to improved pricing. The increase in Changes in expected recoveries was due primarily to higher net overperformance, reflecting the absence of a one-time payment of $15.0 million to a seller in Q3 2025 to modify the terms and conditions of certain previously purchased portfolios, and a net decrease in the collections forecasts on certain U.S. Core pools in the prior year period.

•Europe: Q3 2026 portfolio revenue decreased by $7.2 million due to a decrease of $20.6 million in Changes in expected recoveries, partially offset by an increase of $13.5 million in Portfolio income. The decrease in Changes in expected recoveries was due to lower net overperformance and lower net increases in the collections forecasts compared to Q3 2025. Overperformance in Europe moderated following the update to the forecasts for the majority of our European pools as of June 30, 2026. The increase in Portfolio income was due primarily to higher recent purchasing in several markets. Year-to-date 2026 portfolio revenue increased by $115.3 million, due to increases of $79.1 million in Changes in expected recoveries, driven by the June 30, 2026 forecast updates, and $36.2 million in Portfolio income, due to higher recent purchasing and favorable foreign exchange rate variation.

•Other markets: Q3 2026 and year-to-date 2026 portfolio revenue decreased by $9.4 million and $36.3 million, respectively. The quarterly decrease reflected lower net overperformance and net decreases in the collections forecasts in Q3 2026 compared to net increases in Q3 2025. The year-to-date decrease reflected net decreases in the collections forecasts on certain pools within these markets.

27

Operating expenses

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

			Third Quarter																											Year-to-Date
			2026						2025						$ Change						% Change									2026						2025						$ Change						% Change
U.S.			$	130,324					$	156,232					$	(25,908)					(16.6)		%							$	412,490					$	414,318					$	(1,828)					(0.4)		%
Europe			50,593						409,977						(359,384)						(87.7)									152,630						503,774						(351,144)						(69.7)
Other markets (1)			19,446						60,478						(41,032)						(67.8)									65,414						106,214						(40,800)						(38.4)
Total operating expenses			$	200,363					$	626,687					$	(426,324)					(68.0)		%							$	630,534					$	1,024,306					$	(393,772)					(38.4)		%
By component
Compensation and benefits			$	66,063					$	74,237					$	(8,174)					(11.0)		%							$	207,178					$	223,284					$	(16,106)					(7.2)		%
Legal collection costs (2)			46,211						46,764						(553)						(1.2)									147,194						117,741						29,453						25.0
Legal collection fees (3)			18,439						16,558						1,881						11.4									53,896						47,413						6,483						13.7
Agency fees (4)			22,993						24,556						(1,563)						(6.4)									70,788						68,612						2,176						3.2
Professional and outside services			17,002						22,051						(5,049)						(22.9)									60,398						64,225						(3,827)						(6.0)
Communication (5)			7,619						8,377						(758)						(9.0)									24,302						28,271						(3,969)						(14.0)
Rent and occupancy			3,451						3,654						(203)						(5.6)									10,439						10,638						(199)						(1.9)
Depreciation, amortization and impairment of long-lived assets			1,964						2,439						(475)						(19.5)									8,396						8,711						(315)						(3.6)
Goodwill impairment			—						412,611						(412,611)						NM									—						412,611						(412,611)						NM
Other operating expenses (6)			16,621						15,440						1,181						7.6									47,943						42,800						5,143						12.0
Total operating expenses			$	200,363					$	626,687					$	(426,324)					(68.0)		%							$	630,534					$	1,024,306					$	(393,772)					(38.4)		%

(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.

NM Not meaningful.

Our Total operating expenses decreased by $426.3 million, or 68.0%, compared to Q3 2025. Year-to-date 2026 operating expenses decreased by $393.8 million, or 38.4%, compared to the prior year period. These decreases were due largely to the goodwill impairment charge of $412.6 million recognized in Q3 2025.

•U.S.: Q3 2026 operating expenses decreased by $25.9 million compared to Q3 2025 due primarily to $15.8 million of goodwill impairment allocated to the U.S. in Q3 2025 and an $8.8 million decrease in Compensation and benefits, driven by workforce reductions, organizational simplification and other cost initiatives implemented as part of our PRA 3.0 strategy; and to lower Professional and outside services. Year-to-date 2026 operating expenses decreased by $1.8 million due primarily to a decrease of $18.0 million in Compensation and benefits and the goodwill impairment allocated to the U.S. in 2025. These decreases were partially offset by increases of $26.8 million in Legal collection costs and $6.5 million in Legal collection fees, both associated with the expansion of activity in our legal collections channel.

•Europe: Q3 2026 operating expenses decreased by $359.4 million compared to Q3 2025 due largely to $361.2 million of goodwill impairment allocated to Europe in Q3 2025, partially offset by an increase in Legal collection costs. Year-to-date 2026 operating expenses decreased by $351.1 million due primarily to the goodwill impairment allocated to Europe in 2025, partially offset by increases in Legal collection costs; Other operating expenses, reflecting a value added tax reimbursement in the prior year period; Agency fees, reflecting higher outsourced collections; and Compensation and benefits.

•Other markets: Q3 2026 and year-to-date 2026 operating expenses decreased by $41.0 million and $40.8 million, respectively, due primarily to the goodwill impairment charge in Q3 2025.

28

Interest expense, net

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

			Third Quarter																											Year-to-Date
			2026						2025						$ Change						% Change									2026						2025						$ Change						% Change
Interest on revolving credit facilities and term loan, and unused line fees			$	35,176					$	40,207					$	(5,031)					(12.5)		%							$	104,479					$	115,323					$	(10,844)					(9.4)		%
Interest on senior notes			30,177						24,911						5,266						21.1									90,678						74,734						15,944						21.3
Amortization of debt premium and issuance costs, net			2,112						1,976						136						6.9									6,351						5,839						512						8.8
Interest income			(3,637)						(3,007)						(630)						21.0									(9,799)						(8,478)						(1,321)						15.6
Interest expense, net			$	63,828					$	64,087					$	(259)					(0.4)		%							$	191,709					$	187,418					$	4,291					2.3		%

Our Interest expense, net decreased by $0.3 million, or 0.4%, compared to Q3 2025. Year-to-date 2026 Interest expense, net increased by $4.3 million, or 2.3%, compared to the prior year period. Both periods reflect higher interest on senior notes following the issuance of our 2032 senior notes in September 2025, the proceeds of which were used to repay borrowings under our revolving credit facilities. In Q3 2026, this increase was offset by lower interest on our revolving credit facilities and term loan, along with higher interest income. Year-to-date 2026, the increase in interest on our senior notes was partially offset by these same factors.

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, except percentages):

			Third Quarter																											Year-to-Date
			2026						2025						$ Change						% Change									2026						2025						$ Change						% Change
Foreign currency transaction gains/(losses)			$	(1,706)					$	(5,012)					$	3,306					NM									$	(10,041)					$	10,683					$	(20,724)					NM
Foreign exchange forward gains/(losses)			1,855						5,079						(3,224)						NM									10,743						(10,617)						21,360						NM
Foreign exchange gain, net			$	149					$	67					$	82					NM									$	702					$	66					$	636					NM

NM Not meaningful.

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. For additional information about our foreign exchange forward gains/(losses), refer to Note 6.

Income tax expense

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

			Third Quarter																											Year-to-Date
			2026						2025						$ Change						% Change									2026						2025						$ Change						% Change
Income tax expense			$	3,465					$	24,361					$	(20,896)					(85.8)		%							$	41,614					$	44,088					$	(2,474)					(5.6)		%
Effective tax rate			15.7		%				(6.4)		%																			27.6		%				(14.5)		%

Our Income tax expense decreased by $20.9 million, or 85.8%, compared to Q3 2025, and our effective tax rate was 15.7% in Q3 2026 compared to (6.4)% in Q3 2025. Year-to-date 2026 Income tax expense decreased by $2.5 million, or 5.6%, and our year-to-date 2026 effective tax rate was 27.6% compared to (14.5)% in the prior year period. The negative effective tax rates in the prior year periods were due primarily to the impact of the goodwill impairment recognized in Q3 2025. The current year effective tax rates reflect 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 during the first quarter of 2026. The effective tax rate for the three months ended September 30, 2026, reflects a decrease in the forecasted annual effective tax rate due to changes in the forecasted mix of income across jurisdictions.

29

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
			Third Quarter																											Third Quarter
			2026						2025						$ Change						% Change									2026						2025						$ Change						% Change
Revenues from external customers			$	150,336					$	158,868					$	(8,532)					(5.4)		%							$	110,198					$	117,142					$	(6,944)					(5.9)		%
Segment expenses (1)
Compensation and benefits			35,646						44,077						(8,431)						(19.1)									20,344						21,168						(824)						(3.9)
Legal collection expenses			52,155						51,641						514						1.0									9,186						8,153						1,033						12.7
Professional and outside services			11,856						13,576						(1,720)						(12.7)									4,260						4,065						195						4.8
Other segment items (2)			21,469						21,220						249						1.2									15,200						14,567						633						4.3
Adjusted segment operating income			$	29,210					$	28,354					$	856					3.0		%							$	61,208					$	69,189					$	(7,981)					(11.5)		%

			U.S.																											Europe
			Year-to-Date																											Year-to-Date
			2026						2025						$ Change						% Change									2026						2025						$ Change						% Change
Revenues from external customers			$	457,607					$	432,697					$	24,910					5.8		%							$	452,443					$	336,739					$	115,704					34.4		%
Segment expenses (1)
Compensation and benefits			114,340						134,973						(20,633)						(15.3)									58,542						60,582						(2,040)						(3.4)
Legal collection expenses			162,532						129,220						33,312						25.8									29,048						26,198						2,850						10.9
Professional and outside services			36,580						40,078						(3,498)						(8.7)									13,800						12,786						1,014						7.9
Other segment items (2)			67,441						65,182						2,259						3.5									45,479						40,634						4,845						11.9
Adjusted segment operating income			$	76,714					$	63,244					$	13,470					21.3		%							$	305,574					$	196,539					$	109,035					55.5		%

(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.

•U.S.: Q3 2026 Adjusted segment operating income increased by $0.9 million, reflecting a decrease in segment expenses, partially offset by a decrease in segment revenues. Year-to-date 2026 Adjusted segment operating income increased by $13.5 million, or 21.3%, reflecting an increase in segment revenues, partially offset by an increase in segment expenses.

•Europe: Q3 2026 Adjusted segment operating income decreased by $8.0 million, or 11.5%, due primarily to a decrease in segment revenues. Year-to-date 2026 Adjusted segment operating income increased by $109.0 million, or 55.5%, reflecting an increase in segment revenues, partially offset by an increase in segment expenses.

Refer to the above discussions of portfolio revenue and operating expenses for additional information.

Consolidated balance sheet

Investments

Investments were $160.0 million as of September 30, 2026, an increase of $93.4 million compared to December 31, 2025. The increase reflects purchases of government securities and corporate notes by our banking subsidiary, AK Nordic AB, which is part of our European operations and is expected to continue to operate with similarly higher levels of liquidity moving forward.

30

Finance receivables, net

Finance receivables, net of $4.7 billion as of September 30, 2026, were stable compared to December 31, 2025. Compared to September 30, 2025, Finance receivables, net increased by $111.4 million, or 2.4%, due to portfolio purchases of $1.1 billion and Changes in expected recoveries of $219.0 million, partially offset by $1.1 billion of recoveries collected and applied to Finance receivables, net, and foreign currency translation of $50.0 million.

Interest-bearing deposits

Interest-bearing deposits were $152.5 million as of September 30, 2026, an increase of $46.4 million compared to December 31, 2025. The increase reflects net deposit inflows at our banking subsidiary, AK Nordic AB, partially offset by foreign exchange rate variation.

Borrowings

Borrowings of $3.7 billion as of September 30, 2026, were stable compared to December 31, 2025, as net borrowings of $34.7 million under our revolving credit facilities were largely offset by the impact of foreign currency translation on our euro-denominated senior notes and principal payments of $7.5 million on our term loan. Compared to September 30, 2025, borrowings increased by $107.8 million, or 3.0%, due primarily to net borrowings under our UK and North American revolving credit facilities, partially offset by principal payments of $10.0 million on our term loan and the impact of foreign currency translation on our euro-denominated senior notes.

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. We believe these non-GAAP financial measures are useful to investors in evaluating our performance, operational effectiveness and management of operating expenses and provide for greater comparability. These non-GAAP financial measures should not be considered as an alternative to the most directly comparable financial measure determined in accordance with GAAP and may not be comparable to the calculation of similarly titled financial measures reported by other companies. Included below are reconciliations of the non-GAAP financial measures to the most directly comparable financial measures calculated in accordance with GAAP.

Adjusted EBITDA

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 income/(loss) attributable to PRA Group, Inc. to Adjusted EBITDA for the periods indicated (in thousands):

			Adjusted EBITDA Reconciliation
			Last 12 Months						Year Ended
			September 30, 2026						December 31, 2025
Net income/(loss) attributable to PRA Group, Inc.			$	157,547					$	(305,142)
Adjustments:
Income tax expense			44,261						46,735
Foreign exchange gain			(1,391)						(755)
Interest expense, net			256,079						251,788
Other expense (1)			543						336
Depreciation and amortization			7,281						9,035
Impairment of real estate			2,843						1,404
Goodwill impairment			—						412,611
Net income attributable to noncontrolling interests			10,986						15,168
Gain on sale of equity method investment			—						(38,403)
Recoveries collected and applied to Finance receivables, net less Changes in expected recoveries			899,605						922,697
Adjusted EBITDA			$	1,377,754					$	1,315,474

(1)Reflects non-operating expenses.

31

Adjusted cash efficiency ratio

The Adjusted cash efficiency ratio is calculated by dividing cash receipts less Adjusted operating expenses by cash receipts. The following table provides a reconciliation of Total operating expenses to Adjusted operating expenses and presents our cash efficiency and Adjusted cash efficiency ratios for the periods indicated (in thousands, except for ratio data):

						Adjusted Operating Expenses Reconciliation and Adjusted Cash Efficiency Ratio
						Third Quarter															Year-to-Date
						2026						2025									2026						2025
Cash collections						$	535,643					$	542,244								$	1,646,116					$	1,575,968
Fee income						771						622									6,700						3,745
Cash receipts						536,414						542,866									1,652,816						1,579,713
Total operating expenses						200,363						626,687									630,534						1,024,306
Goodwill impairment						—						(412,611)									—						(412,611)
Adjusted operating expenses						200,363						214,076									630,534						611,695
Cash efficiency ratio						62.6		%				(15.4)		%							61.9		%				35.2		%
Adjusted cash efficiency ratio						62.6		%				60.6		%							61.9		%				61.3		%

Adjusted net income attributable to PRA, Adjusted diluted earnings per share, ROATE and Adjusted ROATE

Adjusted net income attributable to PRA is calculated as Net income/(loss) attributable to PRA Group, Inc. excluding the impact of certain items that management does not consider indicative of our ongoing operations. Calculation of Adjusted diluted earnings per share excludes those same items and, if dilutive based on Adjusted net income attributable to PRA, may also include the impact of additional potentially dilutive shares.

ROATE is calculated by dividing annualized Net income/(loss) attributable to PRA Group, Inc. by Average tangible equity. Adjusted ROATE is calculated by dividing annualized Adjusted net income attributable to PRA by Average tangible equity.

32

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

																					Average Tangible Equity Reconciliation (1)
						Balance as of Period End															Third Quarter															Year-to-Date
						September 30, 2026						September 30, 2025									2026						2025									2026						2025
Total stockholders' equity - PRA Group, Inc.						$	1,067,001					$	928,493								$	1,056,235					$	1,132,709								$	1,023,652					$	1,154,889
Goodwill						26,871						26,871									26,871						233,160									26,871						320,848
Other intangible assets						1,209						1,470									1,246						1,506									1,318						1,488
Average tangible equity																					$	1,028,118					$	898,043								$	995,463					$	832,553
(1)Amounts represent the average balances for the respective periods.
																					ROE and ROATE (2)
																					Third Quarter															Year-to-Date
																					2026						2025									2026						2025
Net income/(loss) attributable to PRA Group, Inc.																					$	14,892					$	(407,703)								$	101,019					$	(361,670)
ROE																					5.6		%				(144.0)		%							13.2		%				(41.8)		%
ROATE																					5.8						(181.6)									13.5						(57.9)
(2)Based on annualized Net income/(loss) attributable to PRA Group, Inc.
						Adjusted Net Income Attributable to PRA Reconciliation
																					Adjusted ROATE (3)
						Last 12 Months															Third Quarter															Year-to-Date
						September 30, 2026						September 30, 2025									2026						2025									2026						2025
Net income/(loss) attributable to PRA Group, Inc.						$	157,547					$	(343,214)								$	14,892					$	(407,703)								$	101,019					$	(361,670)
Gain on sale of equity method investment						—						(38,403)									—						—									—						(38,403)
Goodwill impairment						—						412,611									—						412,611									—						412,611
Tax effect of adjusting items (4)						(21,171)						24,686									—						15,969									—						24,686
Adjusted net income attributable to PRA						$	136,376					$	55,680								$	14,892					$	20,877								$	101,019					$	37,224
Adjusted ROATE																					5.8		%				9.3		%							13.5		%				6.0		%
(3) Based on annualized Adjusted net income attributable to PRA.
(4) Based on the annual effective tax rate and pretax income excluding the effect of the adjusting items. The tax
effect for the last 12 month period ended September 30, 2026 relates to adjusting items from earlier periods.

The following table provides a reconciliation of Diluted earnings per share to Adjusted diluted earnings per share for the periods indicated:

						Adjusted Diluted Earnings Per Share Reconciliation
						Third Quarter															Year-to-Date
						2026						2025									2026						2025
Diluted earnings per share						$	0.39					$	(10.43)								$	2.64					$	(9.20)
Effect of adjusting items and dilutive shares (1)						—						10.96									—						10.14
Adjusted diluted earnings per share						$	0.39					$	0.53								$	2.64					$	0.94

(1)Impact of the non-GAAP adjusting items and dilutive effect of all potential shares of common stock.

33

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 for the 12 months ending September 30, (in thousands):

			U.S.						Europe (1)						Other Markets (2)									Total
2027			$	1,041,598					$	764,539					$	148,855								$	1,954,992
2028			766,864						644,718						101,729									1,513,311
2029			509,413						546,469						70,477									1,126,359
2030			354,741						462,845						49,978									867,564
2031			249,003						394,011						34,112									677,126
2032			170,924						339,332						22,695									532,951
2033			120,567						295,897						15,492									431,956
2034			86,788						259,274						8,339									354,401
2035			63,095						228,811						4,720									296,626
2036			46,459						202,802						2,750									252,011
Thereafter			104,243						677,559						4,536									786,338
Total ERC			$	3,513,695					$	4,816,257					$	463,683								$	8,793,635

(1)Reflects ERC of $1.9 billion for the UK, $1.4 billion for Central Europe, $1.0 billion for Northern Europe and $583.6 million for Southern Europe.

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

34

Purchase Price Multiples
as of September 30, 2026
(in thousands, except percentages)
Purchase Period			Purchase Price (1)(2)									Total Estimated Collections (3)			Estimated Remaining Collections (4)			Current Purchase Price Multiple			Original Purchase Price Multiple
U.S. Core
1996-2015			$	2,736,875								$	7,510,730		$	80,663		274%			223%
2016			400,545									819,321			27,487			205%			195%
2017			511,902									1,166,652			56,807			228%			193%
2018			604,669									1,377,953			82,203			228%			199%
2019			432,222									1,017,258			58,785			235%			209%
2020			415,384									940,623			73,528			226%			215%
2021			339,885									601,913			99,635			177%			191%
2022			275,433									429,136			115,300			156%			164%
2023			506,319									939,215			371,406			185%			191%
2024			727,672									1,678,881			910,152			231%			211%
2025			531,021									1,174,752			865,217			221%			216%
2026			264,083									554,953			523,311			210%			210%
Subtotal			7,746,010									18,211,387			3,264,494
U.S. Insolvency
1996-2015			1,472,385									2,807,086			—			191%			154%
2016			67,454									85,694			5			127%			124%
2017			275,257									359,955			204			131%			125%
2018			97,879									137,611			124			141%			127%
2019			120,845									165,153			329			137%			128%
2020			62,130									90,465			1,159			146%			136%
2021			54,898									73,519			1,839			134%			136%
2022			33,442									48,087			7,759			144%			139%
2023			61,242									80,715			29,523			132%			136%
2024			68,168									99,716			46,844			146%			149%
2025			59,091									93,419			74,993			158%			160%
2026			56,154									87,986			86,422			157%			157%
Subtotal			2,428,945									4,129,406			249,201
Total U.S.			10,174,955									22,340,793			3,513,695
Europe Core
2012-2015			1,225,893									3,795,399			663,064			310%			190%
2016			333,090									637,389			164,887			191%			167%
2017			252,174									376,348			80,088			149%			144%
2018			341,775									590,677			149,974			173%			148%
2019			518,610									918,985			273,992			177%			152%
2020			324,119									618,771			200,428			191%			172%
2021			412,411									744,524			326,017			181%			170%
2022			359,447									596,112			328,347			166%			162%
2023			410,593									753,207			462,233			183%			169%
2024			451,786									819,958			617,798			181%			180%
2025			512,533									941,655			756,842			184%			185%
2026			350,953									646,394			610,770			184%			184%
Subtotal			5,493,384									11,439,419			4,634,440
Europe Insolvency
2014-2015			29,849									49,205			—			165%			135%
2016			39,338									60,228			1,977			153%			130%
2017			39,235									54,137			1,090			138%			128%
2018			44,908									53,754			566			120%			123%
2019			77,218									115,180			3,367			149%			130%
2020			105,440									162,068			3,144			154%			129%
2021			53,230									81,979			6,010			154%			134%
2022			44,604									68,911			16,324			154%			137%
2023			46,558									74,752			31,693			161%			138%
2024			43,459									73,055			40,577			168%			147%
2025			20,760									30,891			23,823			149%			145%
2026			37,439									54,519			53,246			146%			146%
Subtotal			582,038									878,679			181,817
Total Europe			6,075,422									12,318,098			4,816,257
Other markets (5)			969,781									2,223,865			463,683			229%			205%
Total PRA Group			$	17,220,158								$	36,882,756		$	8,793,635

(1)Includes the acquisition date finance receivables portfolios that were acquired through our business acquisitions.

(2)Non-U.S. amounts, including purchase price adjustments that occur throughout the life of a portfolio, are presented at the exchange rate at the end of the respective period of purchase.

(3)Non-U.S. amounts are presented at the period-end exchange rate for the respective period of purchase.

(4)Non-U.S. amounts are presented at the September 30, 2026 exchange rate.

(5)Reflects all vintages in South America, Canada and Australia.

35

			Portfolio Financial Information (1)
			(in thousands)
			September 30, 2026 (year-to-date)															As of September 30, 2026
Purchase Period			Cash Collections (2)			Portfolio Income (2)			Changes in Expected Recoveries (2)			Total Portfolio Revenue (2)						Net Finance Receivables (3)
U.S. Core
1996-2015			$	30,128		$	15,407		$	7,383		$	22,790					$	26,090
2016			7,404			4,300			(189)			4,111						11,615
2017			14,819			8,933			(1,500)			7,433						22,868
2018			23,854			11,450			2,639			14,089						40,158
2019			18,572			9,354			(993)			8,361						27,549
2020			24,371			11,820			(1,709)			10,111						35,911
2021			27,661			13,802			(1,814)			11,988						49,723
2022			30,268			12,672			(4,400)			8,272						67,132
2023			106,708			49,149			(13,524)			35,625						197,418
2024			274,079			131,352			10,443			141,795						478,985
2025			203,444			123,502			8,645			132,147						450,801
2026			31,645			31,779			(3,215)			28,564						260,659
Subtotal			792,953			423,520			1,766			425,286						1,668,909
U.S. Insolvency
1996-2015			633			—			632			632						—
2016			80			3			52			55						5
2017			517			22			450			472						182
2018			378			5			402			407						116
2019			1,032			12			1,058			1,070						314
2020			1,134			129			222			351						1,022
2021			5,013			399			(793)			(394)						1,673
2022			6,369			921			180			1,101						7,156
2023			13,820			2,838			361			3,199						26,163
2024			17,725			5,982			299			6,281						37,432
2025			13,248			8,066			(537)			7,529						53,783
2026			1,562			2,739			241			2,980						57,290
Subtotal			61,511			21,116			2,567			23,683						185,136
Total U.S.			854,464			444,636			4,333			448,969						1,854,045
Europe Core
2012-2015			89,822			53,207			65,801			119,008						173,353
2016			19,643			8,622			21,271			29,893						89,712
2017			10,727			3,870			3,926			7,796						50,421
2018			23,571			8,813			6,212			15,025						87,585
2019			40,824			14,061			18,046			32,107						180,188
2020			29,087			12,059			5,490			17,549						120,068
2021			40,606			18,087			5,619			23,706						194,211
2022			45,904			18,260			(691)			17,569						207,127
2023			61,915			26,207			21,459			47,666						266,683
2024			87,434			39,178			4,030			43,208						348,928
2025			102,142			49,656			(5,276)			44,380						412,972
2026			36,242			16,085			3,041			19,126						333,406
Subtotal			587,917			268,105			148,928			417,033						2,464,654
Europe Insolvency
2014-2015			236			—			236			236						—
2016			318			88			445			533						328
2017			497			45			851			896						570
2018			574			24			414			438						407
2019			1,863			232			537			769						2,680
2020			4,373			340			(79)			261						2,908
2021			7,354			647			1,679			2,326						5,440
2022			9,888			1,484			2,962			4,446						14,227
2023			12,772			2,513			7,401			9,914						26,889
2024			11,931			3,864			7,083			10,947						31,465
2025			4,686			2,044			637			2,681						18,031
2026			1,287			961			227			1,188						37,290
Subtotal			55,779			12,242			22,393			34,635						140,235
Total Europe			643,696			280,347			171,321			451,668						2,604,889
Other markets (4)			147,956			83,174			(20,537)			62,637						224,639
Total PRA Group			$	1,646,116		$	808,157		$	155,117		$	963,274					$	4,683,573

(1)     Includes the nonperforming loan portfolios that were acquired through our business acquisitions.

(2)Non-U.S. amounts are presented using the average exchange rates during the current period.

(3)Non-U.S. amounts are presented at the September 30, 2026 exchange rate.

(4)Reflects all vintages in South America, Canada and Australia.

36

Cash Collections by Year, By Year of Purchase (1)
as of September 30, 2026
(in millions)
Purchase Period			Purchase Price (2)(3)			1996-2015			2016			2017			2018			2019			2020			2021			2022			2023			2024			2025			2026			Total
U.S. Core
1996-2015			$	2,736.9		$	5,186.4		$	673.8		$	479.4		$	337.7		$	230.9		$	149.3		$	98.2		$	67.1		$	51.7		$	64.7		$	53.6		$	30.1		$	7,422.9
2016			400.5			—			86.1			195.3			160.1			116.6			88.7			59.9			29.1			17.6			18.1			12.9			7.4			791.8
2017			511.9			—			—			94.3			264.4			247.1			185.6			124.8			73.1			41.6			37.5			26.6			14.8			1,109.8
2018			604.7			—			—			—			106.3			320.2			304.7			214.8			131.6			83.2			68.1			42.9			23.9			1,295.7
2019			432.2			—			—			—			—			93.4			282.2			237.4			141.7			86.1			61.8			37.3			18.6			958.5
2020			415.4			—			—			—			—			—			127.4			274.7			185.4			121.3			83.6			50.4			24.4			867.2
2021			339.9			—			—			—			—			—			—			73.8			149.9			115.3			82.8			52.8			27.7			502.3
2022			275.4			—			—			—			—			—			—			—			34.9			102.4			87.8			58.5			30.3			313.9
2023			506.3			—			—			—			—			—			—			—			—			63.5			211.8			185.9			106.7			567.9
2024			727.7			—			—			—			—			—			—			—			—			—			119.8			374.9			274.1			768.8
2025			531.0			—			—			—			—			—			—			—			—			—			—			106.1			203.4			309.5
2026			264.1			—			—			—			—			—			—			—			—			—			—			—			31.6			31.6
Subtotal			7,746.0			5,186.4			759.9			769.0			868.5			1,008.2			1,137.9			1,083.6			812.8			682.7			836.0			1,001.9			793.0			14,939.9
U.S. Insolvency
1996-2015			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			0.6			2,806.9
2016			67.5			—			10.1			18.9			18.2			16.4			13.0			6.6			1.3			0.6			0.4			0.1			0.1			85.7
2017			275.3			—			—			49.1			97.3			80.9			58.8			44.0			20.8			4.9			2.5			1.0			0.5			359.8
2018			97.9			—			—			—			6.7			27.4			30.5			31.6			24.6			12.7			2.5			1.0			0.4			137.4
2019			120.8			—			—			—			—			13.4			30.9			37.9			36.8			28.0			14.2			2.7			1.0			164.9
2020			62.1			—			—			—			—			—			6.5			16.1			20.4			19.5			17.0			8.7			1.1			89.3
2021			54.9			—			—			—			—			—			—			4.5			17.7			17.4			15.2			11.8			5.0			71.6
2022			33.4			—			—			—			—			—			—			—			3.2			9.2			11.1			10.5			6.4			40.4
2023			61.2			—			—			—			—			—			—			—			—			4.5			14.8			18.0			13.8			51.1
2024			68.2			—			—			—			—			—			—			—			—			—			12.1			23.1			17.7			52.9
2025			59.1			—			—			—			—			—			—			—			—			—			—			5.2			13.2			18.4
2026			56.2			—			—			—			—			—			—			—			—			—			—			—			1.7			1.7
Subtotal			2,429.0			2,290.4			240.5			210.6			200.8			177.2			153.3			145.2			127.7			98.6			91.2			83.1			61.5			3,880.1
Total U.S.			10,175.0			7,476.8			1,000.4			979.6			1,069.3			1,185.4			1,291.2			1,228.8			940.5			781.3			927.2			1,085.0			854.5			18,820.0
Europe Core
2012-2015			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			89.8			2,794.7
2016			333.1			—			40.4			78.9			72.6			58.0			48.3			46.7			36.9			29.7			27.4			27.1			19.6			485.6
2017			252.2			—			—			17.9			56.0			44.1			36.1			34.8			25.2			20.2			17.9			15.7			10.7			278.6
2018			341.8			—			—			—			24.3			88.7			71.3			69.1			50.7			41.6			37.1			34.3			23.6			440.7
2019			518.6			—			—			—			—			48.0			125.7			121.4			89.8			75.1			68.2			61.7			40.8			630.7
2020			324.1			—			—			—			—			—			32.3			91.7			69.0			56.1			50.1			45.1			29.1			373.4
2021			412.4			—			—			—			—			—			—			48.5			89.9			73.0			66.6			59.7			40.6			378.3
2022			359.4			—			—			—			—			—			—			—			33.9			83.8			74.7			67.8			45.9			306.1
2023			410.6			—			—			—			—			—			—			—			—			50.2			103.1			93.2			61.9			308.4
2024			451.9			—			—			—			—			—			—			—			—			—			46.3			135.6			87.4			269.3
2025			512.5			—			—			—			—			—			—			—			—			—			—			57.1			102.1			159.2
2026			351.0			—			—			—			—			—			—			—			—			—			—			—			36.4			36.4
Subtotal			5,493.4			538.4			390.6			407.1			443.4			480.2			519.7			614.6			559.7			572.1			623.5			724.2			587.9			6,461.4
Europe Insolvency
2014-2015			29.9			7.3			8.3			8.2			7.4			5.4			3.7			1.9			0.8			0.6			0.4			0.3			0.2			44.5
2016			39.3			—			6.2			12.7			12.9			10.7			7.9			6.0			2.7			1.3			0.8			0.6			0.3			62.1
2017			39.2			—			—			1.2			7.9			9.2			9.8			9.4			6.5			3.8			1.5			1.0			0.5			50.8
2018			44.9			—			—			—			0.6			8.4			10.3			11.7			9.8			7.2			3.5			1.4			0.6			53.5
2019			77.2			—			—			—			—			5.0			21.1			23.9			21.0			17.5			12.9			6.1			1.9			109.4
2020			105.4			—			—			—			—			—			6.0			34.6			34.1			29.7			25.5			15.5			4.4			149.8
2021			53.2			—			—			—			—			—			—			5.5			14.4			14.7			15.4			14.6			7.4			72.0
2022			44.6			—			—			—			—			—			—			—			4.5			12.4			15.2			15.2			9.9			57.2
2023			46.7			—			—			—			—			—			—			—			—			4.2			12.7			15.7			12.8			45.4
2024			43.4			—			—			—			—			—			—			—			—			—			9.5			15.2			11.9			36.6
2025			20.8			—			—			—			—			—			—			—			—			—			—			1.9			4.7			6.6
2026			37.4			—			—			—			—			—			—			—			—			—			—			—			1.1			1.1
Subtotal			582.0			7.3			14.5			22.1			28.8			38.7			58.8			93.0			93.8			91.4			97.4			87.5			55.7			689.0
Total Europe			6,075.4			545.7			405.1			429.2			472.2			518.9			578.5			707.6			653.5			663.5			720.9			811.7			643.6			7,150.4
Other markets (4)			969.8			33.9			86.5			103.9			83.7			137.0			135.9			125.4			135.0			215.9			220.5			210.7			148.0			1,636.4
Total PRA Group			$	17,220.2		$	8,056.4		$	1,492.0		$	1,512.7		$	1,625.2		$	1,841.3		$	2,005.6		$	2,061.8		$	1,729.0		$	1,660.7		$	1,868.6		$	2,107.4		$	1,646.1		$	27,606.8

(1)Non-U.S. amounts are presented at the average exchange rates during the cash collections period.

(2)Includes the acquisition date finance receivables portfolios acquired through our business acquisitions.

(3)Non-U.S. amounts, including purchase price adjustments that occur throughout the life of a portfolio, are presented at the exchange rate at the end of the respective period of purchase.

(4)Reflects all vintages in South America, Canada and Australia.

37

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 September 30, 2026, cash and cash equivalents totaled $139.1 million, of which $127.7 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 September 30, 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					$	561,438					$	513,562								$	301,130					$	212,432
North American term loan						452,611						452,611						—									—						—
European revolving credit facility						866,944						562,904						304,040									304,040						—
UK revolving credit facility						725,000						510,703						214,297									164,493						49,804
Colombian revolving credit facility						228						228						—									—						—
Senior notes						1,637,840						1,637,840						—									—						—
Debt premium and issuance costs, net						—						(10,985)						—									—						—
Total						$	4,757,623					$	3,714,739					$	1,031,899								$	769,663					$	262,236

(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 September 30, 2026, interest-bearing deposits totaled $152.5 million. Under our European revolving credit facility, our interest-bearing deposit funding is limited to SEK 2.2 billion ($219.9 million as of September 30, 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.

38

As of September 30, 2026, we had forward flow agreements in place with an estimated purchase price of approximately $438.5 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 $175.5 million in Europe, $247.3 million in the U.S. and $15.7 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 September 30, 2026, we had $3.7 billion in outstanding borrowings. Our estimated interest, unused fees and principal payments for the next 12 months are $251.7 million. With the exception of $2.5 million in quarterly principal payments on our North American term loan, as of September 30, 2026, principal payments on our borrowings have maturity dates ranging from February 2028 through September 2032. Our financing arrangements include covenants with which we must comply, and as of September 30, 2026, we were in compliance with these covenants.

On October 2, 2026, the Company completed the private offering of $400.0 million in aggregate principal amount of 8.500% senior notes due October 15, 2033. Refer to Note 15 for additional information.

For additional information about our borrowings, refer to Note 5.

Share repurchases

On August 3, 2026, our Board of Directors approved a new share repurchase program under which we are authorized to repurchase up to $150.0 million of our outstanding common stock. The new share repurchase program replaces the Company's prior share repurchase program, which was terminated on August 3, 2026, and under which no additional shares can be repurchased. 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, applicable regulatory requirements and the restrictive covenants contained in our credit facilities and the indentures that govern our senior notes. The new share repurchase program does not obligate us to repurchase any specified amount of shares, remains subject to the discretion of our Board of Directors and may be modified, suspended or discontinued at any time.

The amount and timing of any share repurchases under the new share repurchase program also depend on several other factors, including our capital allocation priorities; financial performance; leverage and liquidity levels; and the price of our common stock. As of September 30, 2026, we had $150.0 million remaining for share repurchases under the new program, subject to the restrictive covenants mentioned above.

Leases

Our leases have remaining terms ranging from one to approximately seven years. As of September 30, 2026, we had $27.3 million in lease liabilities, of which $6.1 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 September 30, 2026, we had $1.8 million of derivative liabilities, of which $0.6 million matures within the next 12 months and $1.1 million in 2028. For additional information, refer to Note 6.

Investments

As of September 30, 2026, we held $133.1 million in Swedish treasury securities and $25.7 million in Finnish corporate notes to meet liquidity requirements for our banking subsidiary, AK Nordic AB.

39

Cash flow analysis

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

			Year-to-Date
			2026						2025						$ Change
Net cash provided by/(used in):
Operating activities			$	(33,910)					$	(75,622)					$	41,712
Investing activities			(13,746)						(16,975)						3,229
Financing activities			60,264						74,562						(14,298)
Effect of foreign exchange rates			18,610						21,431						(2,821)
Net increase in cash, cash equivalents and restricted cash			$	31,218					$	3,396					$	27,822

Operating activities

Net cash used 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 used in operating activities decreased by $41.7 million compared to the prior year period due primarily to higher cash collections recognized as income and lower cash paid for taxes, partially offset by higher cash paid for operating expenses.

Investing activities

Net cash used in investing activities decreased by $3.2 million compared to the prior year period due primarily to a decrease in purchases of nonperforming loan portfolios, increases in recoveries collected and applied to Finance receivables, net, and proceeds from sales and maturities of investments, partially offset by an increase in purchases of investments and the impact of the proceeds received from the sale of our interest in RCB Investimentos S.A., a servicing company for nonperforming loans in Brazil, in the prior year period.

Financing activities

Net cash provided by financing activities decreased by $14.3 million compared to the prior year period due primarily to lower net proceeds from credit lines and senior notes, partially offset by fluctuations in our interest-bearing deposits.

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 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.

40

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.

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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 $3.7 billion in total borrowings as of September 30, 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 four months to approximately four years, as of September 30, 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 $7.9 million.

Foreign currency exposure

We operate internationally and enter into transactions denominated in various foreign currencies. During Q3 2026, our revenues from operations outside the U.S. were $135.9 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 September 30, 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 September 30, 2026, that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

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PART II. OTHER INFORMATION

Item 1. Legal Proceedings

For information regarding legal proceedings as of September 30, 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 August 3, 2026, 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.

We did not repurchase any shares of our common stock during the third quarter of 2026.

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 third 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 Bank, 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)).
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)).
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).

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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)
November 9, 2026			By:						/s/ Martin Sjolund
									Martin Sjolund
									President and Chief Executive Officer
									(Principal Executive Officer)

November 9, 2026			By:						/s/ Rakesh Sehgal
									Rakesh Sehgal
									Executive Vice President and Chief Financial Officer
									(Principal Financial and Accounting Officer)

45