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[8-K] PRA GROUP INC Reports Material Event

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(Neutral)
Form Type
8-K

Rhea-AI Filing Summary

PRA Group, Inc. reported sharply improved first quarter 2026 results, with total revenues of $314.5 million and net income attributable to the company of $28.2 million, or $0.73 diluted EPS, up from $3.7 million and $0.09 a year earlier.

Total cash collections rose 11.0% to $551.9 million, driven by U.S. core and European portfolios, while portfolio revenue increased 16.6% to $313.5 million. Operating expenses grew to $211.3 million, largely from higher legal collection costs to support future growth, and net interest expense was $63.5 million.

The company purchased $220.9 million of nonperforming loan portfolios in the quarter and reported estimated remaining collections of $8.5 billion, up 9.5%. For the twelve months ended March 31, 2026, Adjusted EBITDA was $1.35 billion, up 13.9%, and return on average tangible equity for the quarter was 11.7%.

Positive

  • None.

Negative

  • None.

Insights

PRA Group shows strong Q1 rebound with higher collections, margins and ROATE.

PRA Group delivered a notable turnaround in profitability in Q1 2026. Net income attributable to the company increased to $28.2 million from $3.7 million, and diluted EPS rose to $0.73. Total portfolio revenue grew 16.6% to $313.5 million, supported by 11.0% growth in cash collections to $551.9 million.

Operating leverage improved: the cash efficiency ratio reached 61.8%, while legal collection costs increased to build future recoveries. For the twelve months ended March 31, 2026, Adjusted EBITDA was $1.35 billion, up 13.9% and exceeding cash collections growth, even though LTM GAAP results still show a net loss due largely to goodwill impairment.

Balance sheet capacity appears solid, with $996.0 million of availability under credit facilities and estimated remaining collections of $8.5 billion, up 9.5%. First-quarter return on average tangible equity of 11.7% versus 1.9% a year earlier underscores the scale of the earnings rebound disclosed for Q1 2026.

Item 2.02 Results of Operations and Financial Condition Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 7.01 Regulation FD Disclosure Disclosure
Material non-public information disclosed under Regulation Fair Disclosure, often investor presentations or guidance.
Item 9.01 Financial Statements and Exhibits Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Total revenues $314.5 million Three months ended March 31, 2026
Net income attributable to PRA Group, Inc. $28.2 million Q1 2026 vs $3.7 million in Q1 2025
Diluted EPS $0.73 per share Q1 2026 diluted earnings per share
Total cash collections $551.9 million Q1 2026, up 11.0% vs Q1 2025
Total portfolio revenue $313.5 million Q1 2026 portfolio revenue, up 16.6% YoY
Adjusted EBITDA (LTM) $1.35 billion Last twelve months ended March 31, 2026, up 13.9%
Estimated remaining collections $8.5 billion ERC as of March 31, 2026, up 9.5%
Credit facility availability $996.0 million Total availability under credit facilities as of March 31, 2026
cash efficiency ratio financial
"Cash efficiency ratio1 of 61.8%."
Cash efficiency ratio measures how much actual cash a company generates from its sales or operations, typically by comparing operating cash flow to revenue. Think of it like the share of your paycheck that ends up in your bank account after all routine deductions: the higher the ratio, the more of each dollar of sales turns into usable cash, which matters to investors because cash funds growth, pays debts, and supports dividends or buybacks.
Estimated remaining collections financial
"Estimated remaining collections (ERC)3 of $8.5 billion, up 9.5%."
Estimated remaining collections is the amount of money a company expects to still receive from its customers for goods or services already provided. It helps investors understand how much income is still expected to come in from current sales, similar to predicting how much money is left to collect from a partially paid bill. This figure provides insight into the company's future cash flow and financial health.
forward flow commitments financial
"estimated forward flow commitments2 of $321.8 million over the next 12 months"
Forward flow commitments are agreements in which one party promises to buy a stream of future assets or receivables from another party over a set period, often at pre-agreed terms. For investors this matters because such contracts create predictable sales or cash flow for the seller and shift credit and liquidity risk to the buyer, like a standing grocery order that guarantees steady deliveries and payments but also locks in quality and timing risks.
Adjusted EBITDA financial
"Adjusted EBITDA2 for the 12 months ended March 31, 2026 of $1.3 billion, up 13.9%"
Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.
return on average tangible equity financial
"Return on average tangible equity ("ROATE") to monitor and evaluate operating performance"
A measure of how much profit a company generates from the physical, measurable capital actually owned by shareholders, calculated as after‑tax profit available to owners divided by the average tangible equity over a period. It matters to investors because it strips out intangible items like goodwill and patents, giving a clearer picture of how efficiently the firm turns real, balance‑sheet capital into returns — like judging a farm by the crop yield per acre rather than including the value of a nearby trademark.
Total revenues $314.5 million
Net income attributable to PRA Group, Inc. $28.2 million
Diluted EPS $0.73
Total cash collections $551.9 million +11.0% vs Q1 2025
Total portfolio revenue $313.5 million +16.6% vs Q1 2025
Adjusted EBITDA (LTM) $1.35 billion +13.9% vs prior year
Estimated remaining collections $8.5 billion +9.5% vs prior year
Understanding 8-K Material Events →
false000118534800011853482026-05-072026-05-07

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of Earliest Event Reported):May 7, 2026
PRA Group, Inc.
_________________________________________
(Exact name of registrant as specified in its charter)
Delaware000-5005875-3078675
(State or other jurisdiction of incorporation)(Commission File Number)(I.R.S. Employer Identification No.)
120 Corporate Boulevard
Norfolk, Virginia23502
(Address of principal executive offices)(Zip Code)
Registrant’s telephone number, including area code:(888)772-7326
Not Applicable
______________________________________________
Former name or former address, if changed since last report

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐  Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐  Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐  Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐  Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, $0.01 par value per sharePRAANASDAQ Global Select Market
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).

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.☐



Item 2.02 Results of Operations and Financial Condition.

On May 7, 2026, PRA Group, Inc. (the “Company”) issued a press release announcing its first quarter 2026 results. A copy of the press release is furnished as Exhibit 99.1 to this Form 8-K and is incorporated into this Item 2.02 by reference.

Item 7.01 Regulation FD Disclosure.

The slide presentation being used in connection with the Company’s previously announced May 7, 2026, webcast and conference call to discuss its first quarter 2026 results is available in the Investor Relations section of the Company’s website at https://ir.pragroup.com/events-and-presentations.

None of the information furnished in Item 2.02, Item 7.01 or Exhibit 99.1 of this Form 8-K shall be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liability of that Section. Unless expressly set forth by specific reference in such filings, none of the information furnished in this Form 8-K shall be incorporated by reference in any filing under the Securities Act of 1933, as amended, whether made before or after the date hereof and regardless of any general incorporation language in such filings.

Item 9.01 Financial Statements and Exhibits
(d)Exhibits
99.1
Press release dated May 7, 2026
104Cover Page Interactive Data File (embedded within the Inline XBRL document)



SIGNATURE

    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 hereunto duly authorized.
PRA Group, Inc.
Date: May 7, 2026By:/s/ Rakesh Sehgal
Rakesh Sehgal
Executive Vice President and Chief Financial Officer





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PRA Group Reports First Quarter 2026 Results

Strong Start to the Year with 11% Cash Collections Growth and Net Income of $28 Million

Continued Momentum in U.S. Business with Strong Results in Europe

On Track with PRA 3.0 Strategy to Drive Enhanced Results

NORFOLK, Va., May 7, 2026 - PRA Group, Inc. (Nasdaq: PRAA) (the "Company"), a global leader in acquiring and collecting nonperforming loans, today reported its financial results for the first quarter of 2026 ("Q1 2026").

Q1 2026 Highlights (vs. Q1 2025)
•Total cash collections of $551.9 million, up 11.0%.
•Cash efficiency ratio1 of 61.8%.
•Net income attributable to PRA Group, Inc. of $28.2 million, or diluted earnings per share of $0.73.
•Adjusted EBITDA2 for the 12 months ended March 31, 2026 of $1.3 billion, up 13.9%, which exceeded cash collections growth.
•Total portfolio purchases of $220.9 million, in line with expectations, as we continue to focus on driving higher returns and net income while balancing investments with leverage.
•Estimated remaining collections (ERC)3 of $8.5 billion, up 9.5%.

"We had a strong start to 2026, building on the success we achieved last year with continued improvement in our key financial and operational metrics," said Martin Sjolund, president and chief executive officer. "Cash collections grew 11% from the prior-year period, driven by the continued momentum of our operational initiatives, especially in the U.S. legal collections channel, which was supplemented by strong performance in Europe. Our cash efficiency ratio improved to 62%, even with the increase in legal collection costs to support future collections growth. Net income increased to $28 million and Adjusted EBITDA for the last twelve months was up 14%, growing faster than cash collections, as we continued to gain operating leverage."

"Overall, Q1 was another solid quarter, with strong execution across several operational initiatives and improved financial results. Looking ahead to the rest of the year, we plan to continue making progress on our new PRA 3.0 strategy, including modernizing our technology platforms and innovating with our new mobile app in the UK and global AI initiatives. We believe we are in a strong position to continue delivering enhanced results and value for our shareholders, as we transform PRA into a high-performing, technology-enabled global allocator of capital."


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

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

Cash Collection Source20262025
($ in thousands)Q1Q4Q3Q2Q1
U.S. Core$268,409 $249,322 $258,277 $253,856 $240,467 
U.S. Insolvency20,141 20,223 21,131 21,175 20,589 
Europe Core192,019 188,277 185,910 185,652 164,371 
Europe Insolvency20,547 19,166 22,658 24,609 21,205 
Other markets (1)
50,812 54,670 54,268 50,996 50,804 
Total cash collections$551,928 $531,658 $542,244 $536,288 $497,436 
Cash Collection Source -
Constant Currency-Adjusted20262025
($ in thousands)Q1Q1
U.S. Core$268,409 $240,467 
U.S. Insolvency20,141 20,589 
Europe Core192,019 180,408 
Europe Insolvency20,547 22,720 
Other markets (1)
50,812 55,931 
Total cash collections$551,928 $520,115 

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

Three Months Ended March 31,
($ in thousands)20262025
Portfolio income$269,579 $240,958 
Recoveries collected in excess of forecast22,698 16,500 
Changes in expected future recoveries 21,188 11,422 
Changes in expected recoveries43,886 27,922 
Total portfolio revenue$313,465 $268,880 

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

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

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

Portfolio Purchases
Portfolio Purchase Source20262025
($ in thousands)Q1Q4Q3Q2Q1
U.S. Core$105,469 $102,254 $119,672 $160,193 $148,903 
U.S. Insolvency13,043 10,088 14,809 22,134 12,059 
Europe Core86,715 152,375 95,239 142,465 108,390 
Europe Insolvency4,837 4,758 5,934 4,757 4,856 
Other markets (1)
10,786 45,326 19,838 16,956 17,494 
Total portfolio purchases$220,850 $314,801 $255,492 $346,505 $291,702 

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

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

Conference Call Information
PRA Group, Inc. will hold a conference call today at 5:00 p.m. ET to discuss its financial and operational results. To listen to a webcast of the call and view the accompanying slides, visit https://ir.pragroup.com/events-and-presentations. To listen by phone, call 646-357-8785 in the U.S. or 1-800-836-8184 outside the U.S. and ask for the PRA Group conference call. To listen to a replay of the call, either visit the same website until May 7, 2027, or call 646-517-4150 in the U.S. or 1-888-660-6345 outside the U.S. and use access code 86103# until May 14, 2026.

About PRA Group, Inc.
As a global leader in acquiring and collecting nonperforming loan portfolios, PRA Group, Inc. returns capital to banks and other creditors to help expand financial services for consumers in the Americas, Europe and Australia. With thousands of employees worldwide, PRA Group, Inc. companies collaborate with customers to help them resolve their debt. For more information, please visit www.pragroup.com.

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

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

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

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




PRA Group, Inc.
Unaudited Consolidated Income Statements
(Amounts in thousands, except per share amounts)
Three Months Ended March 31,
20262025
Revenues
Portfolio income$269,579 $240,958 
Changes in expected recoveries43,886 27,922 
Total portfolio revenue313,465 268,880 
Other revenue1,068 739 
Total revenues314,533 269,619 
Operating expenses
Compensation and benefits70,738 73,323 
Legal collection costs48,458 33,394 
Legal collection fees17,071 15,230 
Agency fees24,581 21,368 
Professional and outside services20,884 21,103 
Communication9,019 10,477 
Rent and occupancy3,258 3,480 
Depreciation, amortization and impairment of long-lived assets1,708 3,769 
Other operating expenses15,562 12,898 
Total operating expenses211,279 195,042 
Income from operations103,254 74,577 
Other income/(expense)
Interest expense, net(63,518)(60,970)
Foreign exchange gain/(loss), net1,054 (51)
Other(254)(180)
Income before income taxes40,536 13,376 
Income tax expense8,764 4,312 
Net income31,772 9,064 
Net income attributable to noncontrolling interests3,562 5,405 
Net income attributable to PRA Group, Inc.$28,210 $3,659 
Net income per common share attributable to PRA Group, Inc.
Basic$0.74 $0.09 
Diluted$0.73 $0.09 
Weighted average number of shares outstanding
Basic38,368 39,549 
Diluted38,511 39,688 



PRA Group, Inc.
Consolidated Balance Sheets
(Amounts in thousands)
(unaudited)
March 31,
2026		December 31,
2025
ASSETS
Cash and cash equivalents$124,778 $104,409 
Investments143,358 66,628 
Finance receivables, net4,637,094 4,688,024 
Income taxes receivable15,700 17,702 
Deferred tax assets, net70,914 76,955 
Right-of-use assets28,715 29,206 
Property and equipment, net24,567 24,886 
Goodwill26,871 26,871 
Prepaid expenses and other assets134,833 68,641 
Total assets$5,206,830 $5,103,322 
LIABILITIES AND EQUITY
Liabilities
Accrued expenses and accounts payable$100,483 $131,812 
Income taxes payable30,083 29,845 
Deferred tax liabilities, net18,733 17,064 
Lease liabilities31,595 32,160 
Interest-bearing deposits78,740 106,148 
Borrowings3,779,167 3,697,338 
Other liabilities99,475 48,990 
Total liabilities4,138,276 4,063,357 
Equity
Preferred stock, $0.01 par value, 2,000 shares authorized, no shares issued and outstanding— — 
Common stock, $0.01par value, 100,000 shares authorized, 38,141 shares issued and outstanding as of March 31, 2026; 100,000 shares authorized, 38,453 shares issued and outstanding as of December 31, 2025381 385 
Additional paid-in capital3,289 11,474 
Retained earnings1,283,217 1,255,007 
Accumulated other comprehensive loss(284,599)(287,015)
Total stockholders' equity - PRA Group, Inc.1,002,288 979,851 
Noncontrolling interests66,266 60,114 
Total equity1,068,554 1,039,965 
Total liabilities and equity$5,206,830 $5,103,322 




Purchase Price Multiples
as of March 31, 2026
(in thousands, except percentages)
Purchase Period
Purchase Price (1)(2)
Total Estimated Collections (3)
Estimated Remaining Collections (4)
Current Purchase Price MultipleOriginal Purchase Price Multiple
U.S. Core
1996-2015$2,736,875 $7,505,108 $94,785 274%224%
2016400,545 819,619 32,606 205%195%
2017511,902 1,168,721 68,438 228%193%
2018604,669 1,373,598 93,421 227%199%
2019432,222 1,017,206 70,674 235%209%
2020415,384 940,628 88,849 226%215%
2021339,885 603,675 118,686 178%191%
2022275,433 435,742 140,794 158%164%
2023506,319 947,969 447,691 187%191%
2024727,672 1,679,170 1,085,766 231%211%
2025531,021 1,144,614 975,398 216%216%
2026105,469 212,526 209,118 202%202%
Subtotal7,587,396 17,848,576 3,426,226 
U.S. Insolvency
1996-20151,472,385 2,806,689 — 191%154%
201667,454 85,669 21 127%124%
2017275,257 359,605 182 131%125%
201897,879 137,302 59 140%127%
2019120,845 164,398 174 136%128%
202062,130 90,300 1,584 145%136%
202154,898 74,136 5,237 135%136%
202233,442 47,860 11,718 143%139%
202361,242 80,321 38,358 131%136%
202468,168 99,364 58,508 146%149%
202559,091 93,168 84,236 158%160%
202613,043 20,891 20,790 160%160%
Subtotal2,385,834 4,059,703 220,867 
Total U.S.9,973,230 21,908,279 3,647,093 
Europe Core
2012-20151,225,893 3,516,570 478,195 287%190%
2016333,090 601,998 142,105 181%167%
2017252,174 366,501 77,563 145%144%
2018341,775 574,229 151,942 168%148%
2019518,610 888,852 272,541 171%152%
2020324,119 609,550 212,981 188%172%
2021412,411 732,470 338,322 178%170%
2022359,447 600,333 370,631 167%162%
2023410,593 709,805 464,760 173%169%
2024451,786 821,118 685,317 182%180%
2025512,533 951,214 843,307 186%185%
202685,057 157,440 154,812 185%185%
Subtotal5,227,488 10,530,080 4,192,476 
Europe Insolvency
2014-201529,849 49,058 — 164%135%
201639,338 58,616 440 149%130%
201739,235 53,074 402 135%128%
201844,908 53,386 543 119%123%
201977,218 114,419 3,630 148%130%
2020105,440 162,032 5,399 154%129%
202153,230 81,302 8,945 153%134%
202244,604 66,962 20,325 150%137%
202346,558 67,060 32,053 144%138%
202443,459 64,128 38,821 148%147%
202520,760 30,329 26,435 146%145%
20264,752 7,346 7,301 155%155%
Subtotal549,351 807,712 144,294 
Total Europe5,776,839 11,337,792 4,336,770 
Other markets (5)
951,094 2,229,871 564,685 234%204%
Total PRA Group$16,701,163 $35,475,942 $8,548,548 
(1)    Includes the acquisition date finance receivables portfolios that were acquired through our business acquisitions.
(2)Non-U.S. amounts, including purchase price adjustments that occur throughout the life of a portfolio, are presented at the exchange rate at the end of the respective period of purchase.
(3)Non-U.S. amounts are presented at the period-end exchange rate for the respective period of purchase.
(4)Non-U.S. amounts are presented at the March 31, 2026 exchange rate.
(5)Reflects all vintages in South America, Canada and Australia.



Portfolio Financial Information (1)
(in thousands)
March 31, 2026 (year-to-date)As of March 31, 2026
Purchase Period
Cash Collections (2)
Portfolio Income (2)
Changes in Expected Recoveries (2)
Total Portfolio Revenue (2)
Net Finance Receivables (3)
U.S. Core
1996-2015$10,384 $5,487 $2,695 $8,182 $31,227 
20162,583 1,544 (84)1,460 13,786 
20175,257 3,270 (775)2,495 27,494 
20188,281 4,151 (418)3,733 45,382 
20196,631 3,457 (608)2,849 33,983 
20209,056 4,407 (982)3,425 44,546 
202110,372 5,050 (486)4,564 59,591 
202211,381 4,636 309 4,945 82,701 
202339,177 18,207 (5,753)12,454 241,850 
202498,754 47,239 14,278 61,517 574,230 
202563,125 43,364 (2,313)41,051 500,322 
20263,408 2,796 140 2,936 104,934 
Subtotal268,409 143,608 6,003 149,611 1,760,046 
U.S. Insolvency
1996-2015235 — 234 234 — 
201639 1 26 27 19 
2017189 10 112 122 160 
2018134 2 100 102 57 
2019430 6 316 322 168 
2020544 52 86 138 1,401 
20212,231 191 (97)94 4,943 
20222,184 362 (45)317 10,557 
20234,590 1,054 (33)1,021 33,215 
20245,709 2,188 (318)1,870 45,042 
20253,753 2,800 (857)1,943 57,786 
2026103 143 41 184 13,117 
Subtotal20,141 6,809 (435)6,374 166,465 
Total U.S.288,550 150,417 5,568 155,985 1,926,511 
Europe Core
2012-201529,774 16,872 7,948 24,820 141,516 
20166,773 2,758 5,129 7,887 80,998 
20173,812 1,290 502 1,792 51,383 
20187,984 2,910 3,002 5,912 95,137 
201914,181 4,758 1,506 6,264 183,088 
20209,918 4,154 1,275 5,429 128,550 
202114,216 6,146 1,182 7,328 204,281 
202215,933 6,390 2,068 8,458 233,121 
202321,308 8,862 4,282 13,144 277,845 
202429,869 13,672 3,368 17,040 385,315 
202535,581 17,411 240 17,651 458,722 
20262,670 937 723 1,660 83,953 
Subtotal192,019 86,160 31,225 117,385 2,323,909 
Europe Insolvency
2014-201598 — 98 98 — 
2016124 18 102 120 115 
2017176 8 230 238 242 
2018227 10 93 103 424 
2019809 88 (30)58 3,003 
20202,039 150 (11)139 5,075 
20213,682 263 1,236 1,499 8,218 
20223,659 542 1,138 1,680 17,622 
20234,222 863 751 1,614 27,020 
20244,003 1,307 194 1,501 29,818 
20251,463 700 229 929 19,481 
202645 35 33 68 4,747 
Subtotal20,547 3,984 4,063 8,047 115,765 
Total Europe212,566 90,144 35,288 125,432 2,439,674 
Other markets (4)
50,812 29,018 3,030 32,048 270,909 
Total PRA Group$551,928 $269,579 $43,886 $313,465 $4,637,094 
(1)    Includes the nonperforming loan portfolios that were acquired through our business acquisitions.
(2)Non-U.S. amounts are presented using the average exchange rates during the current reporting period.
(3)Non-U.S. amounts are presented at the March 31, 2026 exchange rate.
(4)Reflects all vintages in South America, Canada and Australia.






Cash Collections by Year, By Year of Purchase (1)
as of March 31, 2026
    (in millions)
Purchase Period
Purchase Price (2)(3)
1996-201520162017201820192020202120222023202420252026Total
U.S. Core
1996-2015$2,736.9 $5,186.4 $673.8 $479.4 $337.7 $230.9 $149.3 $98.2 $67.1 $51.7 $64.7 $53.6 $10.4 $7,403.2 
2016400.5 — 86.1 195.3 160.1 116.6 88.7 59.9 29.1 17.6 18.1 12.9 2.6 787.0 
2017511.9 — — 94.3 264.4 247.1 185.6 124.8 73.1 41.6 37.5 26.6 5.3 1100.3 
2018604.7 — — — 106.3 320.2 304.7 214.8 131.6 83.2 68.1 42.9 8.3 1280.1 
2019432.2 — — — — 93.4 282.2 237.4 141.7 86.1 61.8 37.3 6.6 946.5 
2020415.4 — — — — — 127.4 274.7 185.4 121.3 83.6 50.4 9.1 851.9 
2021339.9 — — — — — — 73.8 149.9 115.3 82.8 52.8 10.4 485.0 
2022275.4 — — — — — — — 34.9 102.4 87.8 58.5 11.4 295.0 
2023506.3— — — — — — — — 63.5 211.8 185.9 39.2 500.4 
2024727.7 — — — — — — — — — 119.8 374.9 98.8 593.5 
2025531.0 — — — — — — — — — — 106.1 63.1 169.2 
2026105.5 — — — — — — — — — — — 3.2 3.2 
Subtotal7,587.4 5,186.4 759.9 769.0 868.5 1,008.2 1,137.9 1,083.6 812.8 682.7 836.0 1,001.9 268.4 14,415.3 
U.S. Insolvency
1996-20151,472.4 2,290.4 230.4 142.6 78.6 39.1 13.6 4.5 2.9 1.8 1.4 1.0 0.2 2,806.5 
201667.5 — 10.1 18.9 18.2 16.4 13.0 6.6 1.3 0.6 0.4 0.1 — 85.6 
2017275.3 — — 49.1 97.3 80.9 58.8 44.0 20.8 4.9 2.5 1.0 0.2 359.5 
201897.9 — — — 6.7 27.4 30.5 31.6 24.6 12.7 2.5 1.0 0.1 137.1 
2019120.8 — — — — 13.4 30.9 37.9 36.8 28.0 14.2 2.7 0.4 164.3 
202062.1 — — — — — 6.5 16.1 20.4 19.5 17.0 8.7 0.5 88.7 
202154.9 — — — — — — 4.5 17.7 17.4 15.2 11.8 2.2 68.8 
202233.4 — — — — — — — 3.2 9.2 11.1 10.5 2.2 36.2 
202361.2 — — — — — — — — 4.5 14.8 18.0 4.6 41.9 
202468.2 — — — — — — — — — 12.1 23.1 5.7 40.9 
202559.1 — — — — — — — — — — 5.2 3.8 9.0 
202613.0 — — — — — — — — — — — 0.2 0.2 
Subtotal2,385.8 2,290.4 240.5 210.6 200.8 177.2 153.3 145.2 127.7 98.6 91.2 83.1 20.1 3,838.7 
Total U.S.9,973.2 7,476.8 1,000.4 979.6 1,069.3 1,185.4 1,291.2 1,228.8 940.5 781.3 927.2 1,085.0 288.5 18,254.0 
Europe Core
2012-20151,225.8 538.4 350.2 310.3 290.5 241.4 206.0 202.4 164.3 142.4 132.1 126.9 29.8 2,734.7 
2016333.1 — 40.4 78.9 72.6 58.0 48.3 46.7 36.9 29.7 27.4 27.1 6.8 472.8 
2017252.2 — — 17.9 56.0 44.1 36.1 34.8 25.2 20.2 17.9 15.7 3.8 271.7 
2018341.8 — — — 24.3 88.7 71.3 69.1 50.7 41.6 37.1 34.3 8.0 425.1 
2019518.6 — — — — 48.0 125.7 121.4 89.8 75.1 68.2 61.7 14.2 604.1 
2020324.1 — — — — — 32.3 91.7 69.0 56.1 50.1 45.1 9.9 354.2 
2021412.4 — — — — — — 48.5 89.9 73.0 66.6 59.7 14.2 351.9 
2022359.4 — — — — — — — 33.9 83.8 74.7 67.8 15.9 276.1 
2023410.6 — — — — — — — — 50.2 103.1 93.2 21.3 267.8 
2024451.9 — — — — — — — — — 46.3 135.6 29.9 211.8 
2025512.5 — — — — — — — — — — 57.1 35.6 92.7 
202685.1 — — — — — — — — — — — 2.6 2.6 
Subtotal5,227.5 538.4 390.6 407.1 443.4 480.2 519.7 614.6 559.7 572.1 623.5 724.2 192.0 6,065.5 
Europe Insolvency
2014-201529.9 7.3 8.3 8.2 7.4 5.4 3.7 1.9 0.8 0.6 0.4 0.3 0.1 44.4 
201639.3 — 6.2 12.7 12.9 10.7 7.9 6.0 2.7 1.3 0.8 0.6 0.1 61.9 
201739.2 — — 1.2 7.9 9.2 9.8 9.4 6.5 3.8 1.5 1.0 0.2 50.5 
201844.9 — — — 0.6 8.4 10.3 11.7 9.8 7.2 3.5 1.4 0.2 53.1 
201977.2 — — — — 5.0 21.1 23.9 21.0 17.5 12.9 6.1 0.8 108.3 
2020105.4 — — — — — 6.0 34.6 34.1 29.7 25.5 15.5 2.0 147.4 
202153.2 — — — — — — 5.5 14.4 14.7 15.4 14.6 3.7 68.3 
202244.6 — — — — — — — 4.5 12.4 15.2 15.2 3.7 51.0 
202346.7 — — — — — — — — 4.2 12.7 15.7 4.2 36.8 
202443.4 — — — — — — — — — 9.5 15.2 4.0 28.7 
202520.8 — — — — — — — — — — 1.9 1.5 3.4 
20264.8 — — — — — — — — — — — — — 
Subtotal549.4 7.3 14.5 22.1 28.8 38.7 58.8 93.0 93.8 91.4 97.4 87.5 20.5 653.8 
Total Europe5,776.9 545.7 405.1 429.2 472.2 518.9 578.5 707.6 653.5 663.5 720.9 811.7 212.5 6,719.3 
Other markets (3)
951.1 33.9 86.5 103.9 83.7 137.0 135.9 125.4 135.0 215.9 220.5 210.7 50.9 1,539.3 
Total PRA Group$16,701.2 $8,056.4 $1,492.0 $1,512.7 $1,625.2 $1,841.3 $2,005.6 $2,061.8 $1,729.0 $1,660.7 $1,868.6 $2,107.4 $551.9 $26,512.6 
(1)Non-U.S. amounts are presented at the average exchange rates during the cash collections period.
(2)Includes the acquisition date finance receivables portfolios acquired through our business acquisitions.
(3)Non-U.S. amounts, including purchase price adjustments that occur throughout the life of a portfolio, are presented at the exchange rate at the end of the respective period of purchase.
(4)Reflects all vintages in South America, Canada and Australia.



Use of Non-GAAP Financial Measures

The Company reports its financial results in accordance with U.S. generally accepted accounting principles (GAAP). However, management uses certain non-GAAP financial measures, including the non-GAAP financial measures referred to below, internally to evaluate the Company’s performance and to set performance goals. Included below are reconciliations of the most directly comparable financial measures calculated in accordance with GAAP to the corresponding non-GAAP financial measure. The non-GAAP financial measures included below should not be considered as an alternative to the most directly comparable financial measure determined in accordance with GAAP. The calculation of the non-GAAP financial measures included below may not be comparable to the calculation of similarly titled financial measures reported by other companies.

Adjusted EBITDA

Adjusted EBITDA is calculated as net income (or loss) attributable to PRA Group, Inc. plus income tax expense (or less income tax benefit); less foreign exchange gain (or plus foreign exchange loss); plus interest expense, net; plus other expense; plus depreciation and amortization; plus impairment of real estate; plus goodwill impairment; plus net income attributable to noncontrolling interests; less gain on sale of equity method investment; and plus recoveries collected and applied to Finance receivables, net less Changes in expected recoveries.

The Company presents Adjusted EBITDA because the Company considers it an important supplemental measure of its operational and financial performance. Management believes Adjusted EBITDA helps provide enhanced period-to-period comparability of the Company's operational and financial performance and is useful to investors as other companies in the industry report similar financial measures.

Set forth below is a reconciliation of net loss attributable to PRA Group, Inc. to Adjusted EBITDA for the last twelve months (LTM) ended March 31, 2026 and for the year ended December 31, 2025.
LTMYear Ended
Adjusted EBITDA Reconciliation ($ in thousands)March 31, 2026December 31, 2025
Net loss attributable to PRA Group, Inc.$(280,591)$(305,142)
Adjustments:
Income tax expense51,187 46,735 
Foreign exchange gain(1,860)(755)
Interest expense, net254,336 251,788 
Other expense410 336 
Depreciation and amortization7,805 9,035 
Impairment of real estate573 1,404 
Goodwill impairment412,611 412,611 
Net income attributable to noncontrolling interests13,325 15,168 
Gain on sale of equity method investment(38,403)(38,403)
Recoveries collected and applied to Finance receivables, net less Changes in expected recoveries929,206 922,697 
Adjusted EBITDA$1,348,599 $1,315,474 
ROATE
The Company uses return on average tangible equity ("ROATE") to monitor and evaluate operating performance relative to the Company's equity. Management believes ROATE is a useful financial measure for investors in evaluating the effective use of equity, and is an important component of its long-term shareholder return. Average tangible equity is defined as average Total stockholders' equity - PRA Group, Inc. less average goodwill and average other intangible assets. ROATE is calculated by dividing Net income attributable to PRA Group, Inc. by Average tangible equity. Return on equity ("ROE") is calculated by by dividing Net income attributable to PRA Group, Inc. by average Total stockholders' equity - PRA Group, Inc.


The following table provides a reconciliation of Total stockholders' equity - PRA Group, Inc. as reported in accordance with GAAP to Average tangible equity and provides the Company's ROE and ROATE for the periods indicated (in thousands, except for ratio data):
Average Tangible Equity Reconciliation (1)
Balance as of Period EndFirst Quarter
March 31, 2026March 31, 202520262025
Total stockholders' equity - PRA Group, Inc.$1,002,288 $1,219,108 $991,068$1,177,070 
Goodwill26,871 420,715 26,871408,536
Other intangible assets1,344 1,488 1,3901,471
Average tangible equity$962,807$767,063
ROE and ROATE (2)
First Quarter
20262025
Net income attributable to PRA Group, Inc.$28,210$3,659
Return on equity11.4 %1.2 %
Return on average tangible equity11.7 %1.9 %

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

1.Amounts represent the average balances for the respective periods.
2.Based on annualized Net income attributable to PRA Group, Inc.

Source: View Original Filing on SEC EDGAR

FAQ

How did PRA Group (PRAA) perform financially in Q1 2026?

PRA Group posted significantly stronger results in Q1 2026. Net income attributable to the company was $28.2 million versus $3.7 million a year earlier, and diluted EPS rose to $0.73. Total revenues reached $314.5 million, reflecting higher portfolio revenue and collections.

What were PRA Group (PRAA) cash collections in Q1 2026?

Total cash collections were $551.9 million in Q1 2026, an 11.0% increase from $497.4 million in Q1 2025. Growth was driven by U.S. core operations and strong performance in Europe, including both core and insolvency portfolios across those regions.

How much portfolio revenue did PRA Group (PRAA) generate in Q1 2026?

PRA Group’s total portfolio revenue reached $313.5 million in Q1 2026, up 16.6% from $268.9 million in Q1 2025. This included portfolio income of $269.6 million and $43.9 million of changes in expected recoveries from its nonperforming loan portfolios.

What is PRA Group (PRAA) Adjusted EBITDA and ROATE for the latest period?

For the twelve months ended March 31, 2026, PRA Group reported Adjusted EBITDA of $1.35 billion, up 13.9% from the prior year. For Q1 2026, return on average tangible equity (ROATE) was 11.7%, compared with 1.9% in Q1 2025.

How much did PRA Group (PRAA) invest in portfolio purchases in Q1 2026?

PRA Group purchased $220.9 million of nonperforming loan portfolios in Q1 2026. These purchases spanned U.S. core, U.S. insolvency, Europe core, Europe insolvency, and other markets, supporting future collections and portfolio revenue across the company’s global operations.

What are PRA Group (PRAA) estimated remaining collections and credit availability?

Estimated remaining collections were $8.5 billion, up 9.5% as of March 31, 2026. Total availability under the company’s credit facilities was $996.0 million, including $714.3 million based on current ERC and $281.7 million of additional availability subject to borrowing base and covenant conditions.

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