8-K
PRA GROUP INC (PRAA)
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): | November 3, 2025 |
|---|
PRA Group, Inc.
_________________________________________
(Exact name of registrant as specified in its charter)
| Delaware | 000-50058 | 75-3078675 | |||||
|---|---|---|---|---|---|---|---|
| (State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) | |||||
| 120 Corporate Boulevard | |||||||
| Norfolk, | Virginia | 23502 | |||||
| (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 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 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 November 3, 2025, PRA Group, Inc. (the “Company”) issued a press release announcing its third quarter 2025 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 November 3, 2025, webcast and conference call to discuss its third quarter 2025 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 November 3, 2025 | |
| 104 | Cover 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: November 3, 2025 | By: | /s/ Rakesh Sehgal |
| Rakesh Sehgal | ||
| Executive Vice President and Chief Financial Officer |
Document
PRA Group Reports Third Quarter 2025 Results
Double-Digit Growth in Cash-Based Metrics with Disciplined Purchases Focused on Maximizing Value Creation
Non-Cash $413 Million Goodwill Impairment Charge Resulted in Q3 Net Loss of $408 Million
Excluding the Non-Cash Charge, the Company Delivered Adjusted Net Income of $21 Million
NORFOLK, Va., November 3, 2025 - PRA Group, Inc. (Nasdaq: PRAA) (the "Company"), a global leader in acquiring and collecting nonperforming loans, today reported its financial results for the third quarter of 2025 ("Q3 2025").
Q3 2025 Highlights (vs. Q3 2024)
•Total cash collections of $542.2 million, up 13.7%.
•Net loss attributable to PRA Group, Inc. of $407.7 million, or diluted earnings per share of ($10.43), which includes a $412.6 million non-recurring, non-cash goodwill impairment charge.
•Excluding the goodwill impairment charge, adjusted net income attributable to PRA Group, Inc.1 of $20.9 million, or diluted earnings per share of $0.53.
•Cash efficiency ratio2 of (15.4)%. Excluding the goodwill impairment charge, adjusted cash efficiency ratio2 of 60.6%.
•Adjusted EBITDA3 for the 12 months ended September 30, 2025 of $1.3 billion, up 15.1%.
•Total portfolio purchases of $255.5 million, down year-over-year, reflecting our focus on being selective and maximizing value. The Company remains on track to achieve its 2025 portfolio purchases target of $1.2 billion.
•Record estimated remaining collections (ERC)4 of $8.4 billion, up 15.2%.
"It has now been just over 100 days since I have stepped into the CEO role, and my focus has been on accelerating what is working well and tackling areas of our business that need to be improved," said Martin Sjolund, president and chief executive officer. "During this time, we achieved significant progress against our strategic priorities for the U.S. business that we shared last quarter, including driving cost efficiency, reorganizing our U.S. operations, creating a new talent hub, bringing our headquarters corporate and support staff back to the office, and developing our IT modernization roadmap. I am very pleased with how the team has responded and how fast we have been executing against these priorities."
"Q3 represented another step forward for PRA and our ability to create value for our stakeholders. Cash collections grew 14% year-over-year, reflecting recent purchases, the continued strong performance of our European business, and growing momentum in our U.S. operational initiatives. In particular, we have been ramping up our investments in the U.S. legal collections channel, which led to a 27% increase in U.S. legal cash collections for the quarter."
1.A reconciliation of net (loss)/income attributable to PRA Group, Inc. to adjusted net income attributable to PRA Group, Inc. can be found at the end of this press release.
2.Cash efficiency ratio is 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. Adjusted cash efficiency ratio is calculated by dividing cash receipts less operating expenses, excluding the effect of goodwill impairment, by cash receipts. A calculation of adjusted cash efficiency can be found at the end of this press release.
3.A reconciliation of net (loss)/income attributable to PRA Group, Inc., the most directly comparable financial measure calculated and reported in accordance with GAAP, to Adjusted EBITDA can be found at the end of this press release
4.Refers to the sum of all future projected cash collections on the Company's nonperforming loan portfolios..
"During the quarter, we recorded a non-recurring, non-cash impairment charge of goodwill related to our Debt Buying and Collection reporting unit. This unit’s goodwill was primarily attributed to a European acquisition we made in 2014. The Q3 impairment test was triggered by a sustained decline in our stock price. The impairment charge had no impact on our operations, portfolio valuations, or ERC, and I would like to point out that our European business outperformed our cash collections expectations by 11% year-to-date, and it continues to perform strongly. Overall, we are heading in the right direction and are focused on continuing to improve the financial performance of our business."
Cash Collections and Revenues
The following table presents cash collections by quarter and by source on an as reported and constant currency-adjusted basis:
| Cash Collection Source | 2025 | 2024 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| ($ in thousands) | Q3 | Q2 | Q1 | Q4 | Q3 | |||||
| Americas and Australia Core | $ | 310,108 | $ | 301,698 | $ | 288,160 | $ | 257,711 | $ | 266,977 |
| Americas Insolvency | 23,568 | 24,329 | 23,700 | 24,067 | 26,065 | |||||
| Europe Core | 185,910 | 185,652 | 164,371 | 162,564 | 158,242 | |||||
| Europe Insolvency | 22,658 | 24,609 | 21,205 | 23,724 | 25,826 | |||||
| Total cash collections | $ | 542,244 | $ | 536,288 | $ | 497,436 | $ | 468,066 | $ | 477,110 |
| Cash Collection Source - | ||||||||||
| Constant Currency-Adjusted | 2025 | 2024 | ||||||||
| ($ in thousands) | Q3 | Q3 | ||||||||
| Americas and Australia Core | $ | 310,108 | $ | 267,649 | ||||||
| Americas Insolvency | 23,568 | 26,040 | ||||||||
| Europe Core | 185,910 | 166,803 | ||||||||
| Europe Insolvency | 22,658 | 26,802 | ||||||||
| Total cash collections | $ | 542,244 | $ | 487,294 |
•Total cash collections in Q3 2025 increased 13.7% to $542.2 million, compared to $477.1 million in the third quarter of 2024 ("Q3 2024"), driven by higher levels of recent portfolio purchases, strong performance in our European business, and an increase in cash generation from our investments in the U.S. legal collections channel.
| Three Months Ended Sept 30, | Nine Months Ended Sept 30, | |||||||
|---|---|---|---|---|---|---|---|---|
| ($ in thousands) | 2025 | 2024 | 2025 | 2024 | ||||
| Portfolio income | $ | 258,549 | $ | 216,122 | $ | 750,441 | $ | 627,468 |
| Recoveries collected in excess of forecast | $ | 27,351 | $ | 34,158 | $ | 84,153 | $ | 124,256 |
| Changes in expected future recoveries | 24,007 | 26,456 | 28,419 | 61,352 | ||||
| Changes in expected recoveries | $ | 51,358 | $ | 60,614 | $ | 112,572 | $ | 185,608 |
| Total portfolio revenue | $ | 309,907 | $ | 276,736 | $ | 863,013 | $ | 813,076 |
•Portfolio income in Q3 2025 increased 19.6% to $258.5 million, compared to $216.1 million in Q3 2024, due to strong recent purchases at improved returns.
•Recoveries collected in excess of forecast of $27.4 million included a $15.0 million one-time purchase price adjustment payment to a seller that modified the terms and conditions of an existing contract and increases ERC for the related portfolios acquired.
•Total portfolio revenue in Q3 2025 increased 12.0% to $309.9 million, compared to $276.7 million in Q3 2024.
Expenses
•Operating expenses in Q3 2025 increased to $626.7 million, compared to $191.5 million in Q3 2024. This included a $412.6 million non-recurring, non-cash goodwill impairment charge. Excluding the goodwill impairment charge, adjusted operating expenses were $214.1 million.
•Interest expense, net in Q3 2025 increased to $64.1 million, compared to $61.1 million in Q3 2024, primarily reflecting an increase in debt balances.
Portfolio Purchases
| Portfolio Purchase Source | 2025 | 2024 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| ($ in thousands) | Q3 | Q2 | Q1 | Q4 | Q3 | |||||
| Americas & Australia Core | $ | 139,484 | $ | 177,097 | $ | 165,503 | $ | 194,063 | $ | 263,613 |
| Americas Insolvency | 14,835 | 22,186 | 12,953 | 9,460 | 10,162 | |||||
| Europe Core | 95,239 | 142,465 | 108,390 | 220,875 | 71,507 | |||||
| Europe Insolvency | 5,934 | 4,757 | 4,856 | 8,272 | 4,696 | |||||
| Total portfolio acquisitions | $ | 255,492 | $ | 346,505 | $ | 291,702 | $ | 432,670 | $ | 349,978 |
•The Company purchased $255.5 million in portfolios of nonperforming loans in Q3 2025.
•At the end of Q3 2025, the Company had in place estimated forward flow commitments1 of $297.8 million over the next 12 months, comprised of $235.4 million in the Americas and Australia and $62.4 million in Europe.
Credit Availability
•Total availability under the Company's credit facilities as of September 30, 2025 was $1.2 billion, comprised of $888.9 million based on current ERC and subject to debt covenants, and $301.4 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 November 3, 2026, or call 646-517-4150 in the U.S. or 1-888-660-6345 outside the U.S. and use access code 30359# until November 10, 2025.
About PRA Group, Inc.
As a global leader in acquiring and collecting nonperforming loans, PRA Group, Inc. returns capital to banks and other creditors to help expand financial services for consumers in the Americas, Europe, and Australia. With thousands of employees worldwide, PRA Group, Inc. companies collaborate with customers to help them resolve their debt. For more information, please visit www.pragroup.com.
About Forward Looking Statements
Statements made herein that are not historical in nature, including PRA Group, Inc.’s or its management's intentions, hopes, beliefs, expectations, representations, projections, plans or predictions of the future, are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended.
1.Contractual agreements with sellers of nonperforming loans that allow for the purchase of nonperforming loan portfolios at pre-established prices. These amounts represent our estimated forward flow purchases over the next 12 months under the agreements in place based on projections and other factors, including sellers' estimates of future forward flow sales, and are dependent on actual delivery by the sellers and, in some cases, the impact of foreign exchange rate fluctuations. Accordingly, amounts purchased under these agreements may vary significantly.
The 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 September 30, | Nine Months Ended September 30, | |||||||
|---|---|---|---|---|---|---|---|---|
| 2025 | 2024 | 2025 | 2024 | |||||
| Revenues | ||||||||
| Portfolio income | $ | 258,549 | $ | 216,122 | $ | 750,441 | $ | 627,468 |
| Changes in expected recoveries | 51,358 | 60,614 | 112,572 | 185,608 | ||||
| Total portfolio revenue | 309,907 | 276,736 | 863,013 | 813,076 | ||||
| Other revenue | 1,233 | 4,741 | 5,434 | 8,216 | ||||
| Total revenues | 311,140 | 281,477 | 868,447 | 821,292 | ||||
| Operating expenses | ||||||||
| Compensation and benefits | 74,237 | 76,106 | 223,284 | 223,944 | ||||
| Legal collection costs | 46,764 | 28,781 | 117,741 | 90,746 | ||||
| Legal collection fees | 16,558 | 14,479 | 47,413 | 40,353 | ||||
| Agency fees | 24,556 | 21,020 | 68,612 | 61,751 | ||||
| Professional and outside services | 22,051 | 20,452 | 64,225 | 63,626 | ||||
| Communication | 8,377 | 10,048 | 28,271 | 34,203 | ||||
| Rent and occupancy | 3,654 | 4,175 | 10,638 | 12,455 | ||||
| Depreciation, amortization and impairment of long-lived assets | 2,439 | 2,469 | 8,711 | 7,826 | ||||
| Goodwill impairment | 412,611 | — | 412,611 | — | ||||
| Other operating expenses | 15,440 | 13,969 | 42,800 | 40,792 | ||||
| Total operating expenses | 626,687 | 191,499 | 1,024,306 | 575,696 | ||||
| (Loss)/income from operations | (315,547) | 89,978 | (155,859) | 245,596 | ||||
| Other income/(expense) | ||||||||
| Interest expense, net | (64,087) | (61,062) | (187,418) | (168,693) | ||||
| Gain on sale of equity method investment | — | — | 38,403 | — | ||||
| Foreign exchange gain, net | 67 | 10 | 66 | 138 | ||||
| Other | (38) | (676) | (293) | (836) | ||||
| (Loss)/income before income taxes | (379,605) | 28,250 | (305,101) | 76,205 | ||||
| Income tax expense/(benefit) | 24,361 | (672) | 44,088 | 10,416 | ||||
| Net (loss)/income | (403,966) | 28,922 | (349,189) | 65,789 | ||||
| Net income attributable to noncontrolling interests | 3,737 | 1,768 | 12,481 | 13,644 | ||||
| Net (loss)/income attributable to PRA Group, Inc. | $ | (407,703) | $ | 27,154 | $ | (361,670) | $ | 52,145 |
| Net (loss)/income per common share attributable to PRA Group, Inc. | ||||||||
| Basic | $ | (10.43) | $ | 0.69 | $ | (9.20) | $ | 1.33 |
| Diluted | $ | (10.43) | $ | 0.69 | $ | (9.20) | $ | 1.32 |
| Weighted average number of shares outstanding | ||||||||
| Basic | 39,078 | 39,421 | 39,316 | 39,353 | ||||
| Diluted | 39,078 | 39,492 | 39,316 | 39,495 |
PRA Group, Inc.
Consolidated Balance Sheets
(Amounts in thousands)
| (unaudited) | ||||||||
|---|---|---|---|---|---|---|---|---|
| September 30,<br>2025 | December 31,<br>2024 | |||||||
| ASSETS | ||||||||
| Cash and cash equivalents | $ | 107,454 | $ | 105,938 | ||||
| Investments | 64,915 | 66,304 | ||||||
| Finance receivables, net | 4,572,167 | 4,140,742 | ||||||
| Income taxes receivable | 17,397 | 19,559 | ||||||
| Deferred tax assets, net | 93,872 | 75,134 | ||||||
| Right-of-use assets | 28,135 | 32,173 | ||||||
| Property and equipment, net | 25,119 | 29,498 | ||||||
| Goodwill | 26,871 | 396,357 | ||||||
| Other assets | 63,279 | 65,450 | ||||||
| Total assets | $ | 4,999,209 | $ | 4,931,155 | ||||
| LIABILITIES AND EQUITY | ||||||||
| Liabilities | ||||||||
| Accrued expenses and accounts payable | $ | 115,518 | $ | 141,211 | ||||
| Income taxes payable | 48,782 | 28,584 | ||||||
| Deferred tax liabilities, net | 17,663 | 16,813 | ||||||
| Lease liabilities | 31,175 | 36,437 | ||||||
| Interest-bearing deposits | 139,671 | 163,406 | ||||||
| Borrowings | 3,606,978 | 3,326,621 | ||||||
| Other liabilities | 55,450 | 24,476 | ||||||
| Total liabilities | 4,015,237 | 3,737,548 | ||||||
| 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, 39,083 shares issued and outstanding as of September 30, 2025; 100,000 shares authorized, 39,510 shares issued and outstanding as of December 31, 2024 | 391 | 395 | ||||||
| Additional paid-in capital | 17,981 | 17,882 | ||||||
| Retained earnings | 1,198,479 | 1,560,149 | ||||||
| Accumulated other comprehensive loss | (288,358) | (443,394) | ||||||
| Total stockholders' equity - PRA Group, Inc. | 928,493 | 1,135,032 | ||||||
| Noncontrolling interests | 55,479 | 58,575 | ||||||
| Total equity | 983,972 | 1,193,607 | ||||||
| Total liabilities and equity | $ | 4,999,209 | $ | 4,931,155 | ||||
| Purchase Price Multiples<br><br>as of September 30, 2025<br><br>Amounts in thousands | ||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Purchase Period | Purchase Price (1)(2) | Total Estimated Collections (3) | Estimated Remaining Collections (4) | Current Purchase Price Multiple | Original Purchase Price Multiple (5) | |||
| Americas and Australia Core | ||||||||
| 1996-2014 | $ | 2,336,839 | $ | 6,698,114 | $ | 84,642 | 287% | 228% |
| 2015 | 443,114 | 920,784 | 28,969 | 208% | 205% | |||
| 2016 | 455,767 | 1,104,447 | 48,732 | 242% | 201% | |||
| 2017 | 532,851 | 1,234,254 | 76,722 | 232% | 193% | |||
| 2018 | 653,975 | 1,561,810 | 114,403 | 239% | 202% | |||
| 2019 | 581,476 | 1,336,705 | 104,678 | 230% | 206% | |||
| 2020 | 435,668 | 975,474 | 109,706 | 224% | 213% | |||
| 2021 | 435,846 | 734,910 | 191,471 | 169% | 191% | |||
| 2022 | 406,082 | 713,779 | 237,056 | 176% | 179% | |||
| 2023 | 622,583 | 1,217,624 | 620,578 | 196% | 197% | |||
| 2024 | 823,662 | 1,794,207 | 1,341,743 | 218% | 211% | |||
| 2025 | 483,333 | 1,033,958 | 961,063 | 214% | 214% | |||
| Subtotal | 8,211,196 | 19,326,066 | 3,919,763 | |||||
| Americas Insolvency | ||||||||
| 1996-2014 | 1,414,476 | 2,723,230 | 2 | 193% | 155% | |||
| 2015 | 63,170 | 88,214 | 3 | 140% | 125% | |||
| 2016 | 91,442 | 118,571 | 51 | 130% | 123% | |||
| 2017 | 275,257 | 359,423 | 362 | 131% | 125% | |||
| 2018 | 97,879 | 137,065 | 143 | 140% | 127% | |||
| 2019 | 123,077 | 167,787 | 447 | 136% | 128% | |||
| 2020 | 62,130 | 90,248 | 3,060 | 145% | 136% | |||
| 2021 | 55,187 | 74,696 | 10,147 | 135% | 136% | |||
| 2022 | 33,442 | 47,948 | 16,283 | 143% | 139% | |||
| 2023 | 91,282 | 119,910 | 62,374 | 131% | 135% | |||
| 2024 | 68,391 | 99,788 | 70,538 | 146% | 149% | |||
| 2025 | 50,001 | 80,059 | 77,368 | 160% | 160% | |||
| Subtotal | 2,425,734 | 4,106,939 | 240,778 | |||||
| Total Americas and Australia | 10,636,930 | 23,433,005 | 4,160,541 | |||||
| Europe Core | ||||||||
| 1996-2014 | 814,553 | 2,705,950 | 384,326 | 332% | 205% | |||
| 2015 | 411,340 | 768,527 | 120,755 | 187% | 160% | |||
| 2016 | 333,090 | 590,863 | 144,627 | 177% | 167% | |||
| 2017 | 252,174 | 364,846 | 84,606 | 145% | 144% | |||
| 2018 | 341,775 | 563,250 | 159,355 | 165% | 148% | |||
| 2019 | 518,610 | 876,312 | 292,208 | 169% | 152% | |||
| 2020 | 324,119 | 602,714 | 229,314 | 186% | 172% | |||
| 2021 | 412,411 | 728,081 | 359,607 | 177% | 170% | |||
| 2022 | 359,447 | 593,532 | 399,825 | 165% | 162% | |||
| 2023 | 410,593 | 699,868 | 503,908 | 170% | 169% | |||
| 2024 | 451,786 | 817,307 | 752,460 | 181% | 180% | |||
| 2025 | 357,530 | 671,159 | 640,409 | 188% | 188% | |||
| Subtotal | 4,987,428 | 9,982,409 | 4,071,400 | |||||
| Europe Insolvency | ||||||||
| 2014 | 10,876 | 19,233 | — | 177% | 129% | |||
| 2015 | 18,973 | 29,622 | — | 156% | 139% | |||
| 2016 | 39,338 | 58,382 | 497 | 148% | 130% | |||
| 2017 | 39,235 | 52,653 | 335 | 134% | 128% | |||
| 2018 | 44,908 | 53,300 | 871 | 119% | 123% | |||
| 2019 | 77,218 | 114,458 | 5,579 | 148% | 130% | |||
| 2020 | 105,440 | 162,059 | 9,883 | 154% | 129% | |||
| 2021 | 53,230 | 79,535 | 14,261 | 149% | 134% | |||
| 2022 | 44,604 | 65,672 | 26,299 | 147% | 137% | |||
| 2023 | 46,558 | 66,278 | 39,858 | 142% | 138% | |||
| 2024 | 43,459 | 64,128 | 47,281 | 148% | 147% | |||
| 2025 | 15,888 | 24,112 | 23,147 | 152% | 152% | |||
| Subtotal | 539,727 | 789,432 | 168,011 | |||||
| Total Europe | 5,527,155 | 10,771,841 | 4,239,411 | |||||
| Total PRA Group | $ | 16,164,085 | $ | 34,204,846 | $ | 8,399,952 |
(1) Includes the acquisition date finance receivables portfolios that were acquired through our business acquisitions.
(2)Non-U.S. amounts are presented at the exchange rate at the end of the period in which the portfolio was purchased. In addition, any purchase price adjustments that occur throughout the life of the portfolio are presented at the period-end exchange rate for 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, 2025 exchange rate.
(5)The original purchase price multiple represents the purchase price multiple at the end of the period of acquisition.
| Portfolio Financial Information (1) | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Amounts in thousands | ||||||||||
| September 30, 2025 (year-to-date) | As of September 30, 2025 | |||||||||
| Purchase Period | Cash Collections (2) | Portfolio Income (2) | Changes in Expected Recoveries (2) | Total Portfolio Revenue (2) | Net Finance Receivables (3) | |||||
| Americas and Australia Core | ||||||||||
| 1996-2014 | $ | 33,116 | $ | 15,076 | $ | 14,539 | $ | 29,615 | $ | 25,383 |
| 2015 | 10,292 | 6,159 | (3,525) | 2,634 | 12,630 | |||||
| 2016 | 14,478 | 8,358 | 1,599 | 9,957 | 17,005 | |||||
| 2017 | 21,888 | 11,477 | 5,393 | 16,870 | 31,608 | |||||
| 2018 | 38,675 | 16,918 | 8,963 | 25,881 | 56,671 | |||||
| 2019 | 37,963 | 16,735 | 4,280 | 21,015 | 53,085 | |||||
| 2020 | 42,193 | 17,485 | 4,356 | 21,841 | 57,455 | |||||
| 2021 | 49,989 | 26,763 | (10,142) | 16,621 | 93,816 | |||||
| 2022 | 72,183 | 31,861 | (9,887) | 21,974 | 135,737 | |||||
| 2023 | 182,901 | 89,871 | (33,376) | 56,495 | 332,260 | |||||
| 2024 | 323,633 | 187,571 | 26,891 | 214,462 | 708,555 | |||||
| 2025 | 72,655 | 56,814 | 8,544 | 65,358 | 475,270 | |||||
| Subtotal | 899,966 | 485,088 | 17,635 | 502,723 | 1,999,475 | |||||
| Americas Insolvency | ||||||||||
| 1996-2014 | 716 | 16 | 715 | 731 | — | |||||
| 2015 | 83 | 5 | 72 | 77 | 2 | |||||
| 2016 | 221 | 14 | 120 | 134 | 46 | |||||
| 2017 | 827 | 78 | 381 | 459 | 318 | |||||
| 2018 | 829 | 29 | 425 | 454 | 134 | |||||
| 2019 | 2,269 | 78 | 713 | 791 | 425 | |||||
| 2020 | 7,739 | 670 | (1,131) | (461) | 2,791 | |||||
| 2021 | 9,227 | 1,250 | 314 | 1,564 | 9,401 | |||||
| 2022 | 8,178 | 1,636 | 478 | 2,114 | 14,339 | |||||
| 2023 | 21,637 | 6,212 | 498 | 6,710 | 52,274 | |||||
| 2024 | 17,177 | 8,236 | (1,177) | 7,059 | 52,606 | |||||
| 2025 | 2,694 | 2,971 | 1,335 | 4,306 | 50,889 | |||||
| Subtotal | 71,597 | 21,195 | 2,743 | 23,938 | 183,225 | |||||
| Total Americas and Australia | 971,563 | 506,283 | 20,378 | 526,661 | 2,182,700 | |||||
| Europe Core | ||||||||||
| 1996-2014 | 73,218 | 43,776 | 19,058 | 62,834 | 86,025 | |||||
| 2015 | 21,742 | 9,043 | 7,080 | 16,123 | 59,498 | |||||
| 2016 | 20,097 | 8,757 | 4,139 | 12,896 | 81,902 | |||||
| 2017 | 11,764 | 4,277 | (1,251) | 3,026 | 56,212 | |||||
| 2018 | 26,250 | 9,330 | 1,789 | 11,119 | 102,423 | |||||
| 2019 | 46,787 | 14,952 | 12,991 | 27,943 | 196,370 | |||||
| 2020 | 34,169 | 13,046 | 10,509 | 23,555 | 138,912 | |||||
| 2021 | 45,708 | 19,334 | 6,760 | 26,094 | 216,925 | |||||
| 2022 | 51,788 | 20,379 | 3,229 | 23,608 | 251,939 | |||||
| 2023 | 70,508 | 28,642 | 5,439 | 34,081 | 300,972 | |||||
| 2024 | 103,453 | 44,540 | 5,065 | 49,605 | 420,530 | |||||
| 2025 | 30,449 | 14,420 | 3,954 | 18,374 | 343,433 | |||||
| Subtotal | 535,933 | 230,496 | 78,762 | 309,258 | 2,255,141 | |||||
| Europe Insolvency | ||||||||||
| 2014 | 135 | — | 135 | 135 | — | |||||
| 2015 | 119 | — | 119 | 119 | — | |||||
| 2016 | 413 | 62 | 328 | 390 | 128 | |||||
| 2017 | 787 | 34 | 501 | 535 | 210 | |||||
| 2018 | 1,247 | 70 | 311 | 381 | 728 | |||||
| 2019 | 5,073 | 498 | 433 | 931 | 4,745 | |||||
| 2020 | 13,206 | 988 | 2,212 | 3,200 | 9,221 | |||||
| 2021 | 11,394 | 1,269 | 4,102 | 5,371 | 12,901 | |||||
| 2022 | 11,855 | 2,183 | 2,759 | 4,942 | 22,487 | |||||
| 2023 | 11,830 | 3,225 | 1,314 | 4,539 | 32,904 | |||||
| 2024 | 11,455 | 4,610 | 1,020 | 5,630 | 35,178 | |||||
| 2025 | 958 | 723 | 198 | 921 | 15,824 | |||||
| Subtotal | 68,472 | 13,662 | 13,432 | 27,094 | 134,326 | |||||
| Total Europe | 604,405 | 244,158 | 92,194 | 336,352 | 2,389,467 | |||||
| Total PRA Group | $ | 1,575,968 | $ | 750,441 | $ | 112,572 | $ | 863,013 | $ | 4,572,167 |
(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 September 30, 2025 exchange rate.
| Cash Collections by Year, By Year of Purchase (1)<br><br>as of September 30, 2025<br><br>Amounts in millions | ||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash Collections | ||||||||||||||||||||||||||||
| Purchase Period | Purchase Price (2)(3) | 1996-2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Total | ||||||||||||||
| Americas and Australia Core | ||||||||||||||||||||||||||||
| 1996-2014 | $ | 2,336.8 | $ | 4,371.9 | $ | 727.8 | $ | 470.0 | $ | 311.2 | $ | 222.5 | $ | 155.0 | $ | 96.6 | $ | 68.8 | $ | 51.0 | $ | 40.2 | $ | 49.4 | $ | 33.1 | $ | 6,597.5 |
| 2015 | 443.1 | — | 117.0 | 228.4 | 185.9 | 126.6 | 83.6 | 57.2 | 34.9 | 19.5 | 14.1 | 17.3 | 10.3 | 894.8 | ||||||||||||||
| 2016 | 455.8 | — | — | 138.7 | 256.5 | 194.6 | 140.6 | 105.9 | 74.2 | 38.4 | 24.9 | 24.0 | 14.5 | 1012.3 | ||||||||||||||
| 2017 | 532.9 | — | — | — | 107.3 | 278.7 | 256.5 | 192.5 | 130.0 | 76.3 | 43.8 | 39.2 | 21.9 | 1146.2 | ||||||||||||||
| 2018 | 654.0 | — | — | — | — | 122.7 | 361.9 | 337.7 | 239.9 | 146.1 | 92.9 | 75.9 | 38.7 | 1415.8 | ||||||||||||||
| 2019 | 581.5 | — | — | — | — | — | 143.8 | 349.0 | 289.8 | 177.7 | 110.3 | 77.7 | 38.0 | 1186.3 | ||||||||||||||
| 2020 | 435.7 | — | — | — | — | — | — | 132.9 | 284.3 | 192.0 | 125.8 | 87.0 | 42.2 | 864.2 | ||||||||||||||
| 2021 | 435.8 | — | — | — | — | — | — | — | 85.0 | 177.3 | 136.8 | 98.4 | 50.0 | 547.5 | ||||||||||||||
| 2022 | 406.1 | — | — | — | — | — | — | — | — | 67.7 | 195.4 | 144.7 | 72.2 | 480.0 | ||||||||||||||
| 2023 | 622.5 | — | — | — | — | — | — | — | — | — | 108.5 | 285.9 | 182.9 | 577.3 | ||||||||||||||
| 2024 | 823.7 | — | — | — | — | — | — | — | — | — | — | 145.9 | 323.6 | 469.5 | ||||||||||||||
| 2025 | 483.3 | — | — | — | — | — | — | — | — | — | — | — | 72.6 | 72.6 | ||||||||||||||
| Subtotal | 8,211.2 | 4,371.9 | 844.8 | 837.1 | 860.9 | 945.1 | 1,141.4 | 1,271.8 | 1,206.9 | 946.0 | 892.7 | 1,045.4 | 900.0 | 15,264.0 | ||||||||||||||
| Americas Insolvency | ||||||||||||||||||||||||||||
| 1996-2014 | 1,414.5 | 1,949.8 | 340.8 | 213.0 | 122.9 | 59.1 | 22.6 | 5.8 | 3.3 | 2.3 | 1.5 | 1.3 | 0.7 | 2,723.1 | ||||||||||||||
| 2015 | 63.2 | — | 3.4 | 17.9 | 20.1 | 19.8 | 16.7 | 7.9 | 1.3 | 0.6 | 0.3 | 0.2 | 0.1 | 88.3 | ||||||||||||||
| 2016 | 91.4 | — | — | 18.9 | 30.4 | 25.0 | 19.9 | 14.4 | 7.4 | 1.8 | 0.9 | 0.6 | 0.2 | 119.5 | ||||||||||||||
| 2017 | 275.3 | — | — | — | 49.1 | 97.3 | 80.9 | 58.8 | 44.0 | 20.8 | 4.9 | 2.5 | 0.8 | 359.1 | ||||||||||||||
| 2018 | 97.9 | — | — | — | — | 6.7 | 27.4 | 30.5 | 31.6 | 24.6 | 12.7 | 2.5 | 0.8 | 136.8 | ||||||||||||||
| 2019 | 123.1 | — | — | — | — | — | 13.4 | 31.4 | 39.1 | 37.8 | 28.7 | 14.6 | 2.3 | 167.3 | ||||||||||||||
| 2020 | 62.1 | — | — | — | — | — | — | 6.5 | 16.1 | 20.4 | 19.5 | 17.0 | 7.7 | 87.2 | ||||||||||||||
| 2021 | 55.2 | — | — | — | — | — | — | — | 4.6 | 17.9 | 17.5 | 15.3 | 9.2 | 64.5 | ||||||||||||||
| 2022 | 33.4 | — | — | — | — | — | — | — | — | 3.2 | 9.2 | 11.1 | 8.2 | 31.7 | ||||||||||||||
| 2023 | 91.2 | — | — | — | — | — | — | — | — | — | 9.0 | 25.1 | 21.6 | 55.7 | ||||||||||||||
| 2024 | 68.4 | — | — | — | — | — | — | — | — | — | — | 12.1 | 17.2 | 29.3 | ||||||||||||||
| 2025 | 50.0 | — | — | — | — | — | — | — | — | — | — | — | 2.8 | 2.8 | ||||||||||||||
| Subtotal | 2,425.7 | 1,949.8 | 344.2 | 249.8 | 222.5 | 207.9 | 180.9 | 155.3 | 147.4 | 129.4 | 104.2 | 102.3 | 71.6 | 3,865.3 | ||||||||||||||
| Total Americas and Australia | 10,636.9 | 6,321.7 | 1,189.0 | 1,086.9 | 1,083.4 | 1,153.0 | 1,322.3 | 1,427.1 | 1,354.3 | 1,075.4 | 996.9 | 1,147.7 | 971.6 | 19,129.3 | ||||||||||||||
| Europe Core | ||||||||||||||||||||||||||||
| 1996-2014 | 814.5 | 195.1 | 297.5 | 249.9 | 224.1 | 209.6 | 175.3 | 151.7 | 151.0 | 123.6 | 108.6 | 101.7 | 73.2 | 2,061.3 | ||||||||||||||
| 2015 | 411.3 | — | 45.8 | 100.3 | 86.2 | 80.9 | 66.1 | 54.3 | 51.4 | 40.7 | 33.8 | 30.4 | 21.7 | 611.6 | ||||||||||||||
| 2016 | 333.1 | — | — | 40.4 | 78.9 | 72.6 | 58.0 | 48.3 | 46.7 | 36.9 | 29.7 | 27.4 | 20.1 | 459.0 | ||||||||||||||
| 2017 | 252.2 | — | — | — | 17.9 | 56.0 | 44.1 | 36.1 | 34.8 | 25.2 | 20.2 | 17.9 | 11.8 | 264.0 | ||||||||||||||
| 2018 | 341.8 | — | — | — | — | 24.3 | 88.7 | 71.3 | 69.1 | 50.7 | 41.6 | 37.1 | 26.2 | 409.0 | ||||||||||||||
| 2019 | 518.6 | — | — | — | — | — | 48.0 | 125.7 | 121.4 | 89.8 | 75.1 | 68.2 | 46.8 | 575.0 | ||||||||||||||
| 2020 | 324.1 | — | — | — | — | — | — | 32.3 | 91.7 | 69.0 | 56.1 | 50.1 | 34.2 | 333.4 | ||||||||||||||
| 2021 | 412.4 | — | — | — | — | — | — | — | 48.5 | 89.9 | 73.0 | 66.6 | 45.7 | 323.7 | ||||||||||||||
| 2022 | 359.4 | — | — | — | — | — | — | — | — | 33.9 | 83.8 | 74.7 | 51.8 | 244.2 | ||||||||||||||
| 2023 | 410.6 | — | — | — | — | — | — | — | — | — | 50.2 | 103.1 | 70.5 | 223.8 | ||||||||||||||
| 2024 | 451.9 | — | — | — | — | — | — | — | — | — | — | 46.3 | 103.5 | 149.8 | ||||||||||||||
| 2025 | 357.5 | — | — | — | — | — | — | — | — | — | — | — | 30.4 | 30.4 | ||||||||||||||
| Subtotal | 4,987.4 | 195.1 | 343.3 | 390.6 | 407.1 | 443.4 | 480.2 | 519.7 | 614.6 | 559.7 | 572.1 | 623.5 | 535.9 | 5,685.2 | ||||||||||||||
| Europe Insolvency | ||||||||||||||||||||||||||||
| 2014 | 10.9 | — | 4.3 | 3.9 | 3.2 | 2.6 | 1.5 | 0.8 | 0.3 | 0.2 | 0.2 | 0.2 | 0.1 | 17.3 | ||||||||||||||
| 2015 | 19.0 | — | 3.0 | 4.4 | 5.0 | 4.8 | 3.9 | 2.9 | 1.6 | 0.6 | 0.4 | 0.2 | 0.1 | 26.9 | ||||||||||||||
| 2016 | 39.3 | — | — | 6.2 | 12.7 | 12.9 | 10.7 | 7.9 | 6.0 | 2.7 | 1.3 | 0.8 | 0.4 | 61.6 | ||||||||||||||
| 2017 | 39.2 | — | — | — | 1.2 | 7.9 | 9.2 | 9.8 | 9.4 | 6.5 | 3.8 | 1.5 | 0.8 | 50.1 | ||||||||||||||
| 2018 | 44.9 | — | — | — | — | 0.6 | 8.4 | 10.3 | 11.7 | 9.8 | 7.2 | 3.5 | 1.2 | 52.7 | ||||||||||||||
| 2019 | 77.2 | — | — | — | — | — | 5.0 | 21.1 | 23.9 | 21.0 | 17.5 | 12.9 | 5.1 | 106.5 | ||||||||||||||
| 2020 | 105.4 | — | — | — | — | — | — | 6.0 | 34.6 | 34.1 | 29.7 | 25.5 | 13.2 | 143.1 | ||||||||||||||
| 2021 | 53.2 | — | — | — | — | — | — | — | 5.5 | 14.4 | 14.7 | 15.4 | 11.4 | 61.4 | ||||||||||||||
| 2022 | 44.6 | — | — | — | — | — | — | — | — | 4.5 | 12.4 | 15.2 | 11.9 | 44.0 | ||||||||||||||
| 2023 | 46.7 | — | — | — | — | — | — | — | — | — | 4.2 | 12.7 | 11.8 | 28.7 | ||||||||||||||
| 2024 | 43.4 | — | — | — | — | — | — | — | — | — | — | 9.5 | 11.5 | 21.0 | ||||||||||||||
| 2025 | 15.9 | — | — | — | — | — | — | — | — | — | — | — | 1.0 | 1.0 | ||||||||||||||
| Subtotal | 539.7 | — | 7.3 | 14.5 | 22.1 | 28.8 | 38.7 | 58.8 | 93.0 | 93.8 | 91.4 | 97.4 | 68.5 | 614.3 | ||||||||||||||
| Total Europe | 5,527.1 | 195.1 | 350.6 | 405.1 | 429.2 | 472.2 | 518.9 | 578.5 | 707.6 | 653.5 | 663.5 | 720.9 | 604.4 | 6,299.5 | ||||||||||||||
| Total PRA Group | $ | 16,164.0 | $ | 6,516.8 | $ | 1,539.6 | $ | 1,492.0 | $ | 1,512.6 | $ | 1,625.2 | $ | 1,841.2 | $ | 2,005.6 | $ | 2,061.9 | $ | 1,728.9 | $ | 1,660.4 | $ | 1,868.6 | $ | 1,576.0 | $ | 25,428.8 |
(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 are presented at the exchange rate at the end of the period in which the portfolio was purchased. Purchase price adjustments that occur throughout the life of the pool are presented at the period-end exchange rate for the respective period of purchase.
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 Adjusted EBITDA, internally to evaluate the Company’s performance and to set performance goals. Adjusted EBITDA is calculated as net (loss)/income attributable to PRA Group, Inc. plus income tax expense; 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. Adjusted EBITDA is a supplemental measure of performance that is not required by, or presented in accordance with, GAAP. 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 as it excludes certain items whose fluctuations from period-to-period do not necessarily correspond to changes in the operations of the Company's business, and is useful to investors as other companies in the industry report similar financial measures. Adjusted EBITDA should not be considered as an alternative to net (loss)/income attributable to PRA Group, Inc. determined in accordance with GAAP. Set forth below is a reconciliation of net (loss)/income attributable to PRA Group, Inc., the most directly comparable financial measure calculated and reported in accordance with GAAP, to Adjusted EBITDA for the last twelve months (LTM) ended September 30, 2025 and for the year ended December 31, 2024. The calculation of Adjusted EBITDA below may not be comparable to the calculation of similarly titled measures reported by other companies.
| LTM | Year Ended | |||
|---|---|---|---|---|
| Adjusted EBITDA Reconciliation ($ in thousands) | September 30, 2025 | December 31, 2024 | ||
| Net (loss)/income attributable to PRA Group, Inc. | $ | (343,214) | $ | 70,601 |
| Adjustments: | ||||
| Income tax expense | 54,704 | 21,032 | ||
| Foreign exchange loss | 81 | 9 | ||
| Interest expense, net | 247,992 | 229,267 | ||
| Other expense | 308 | 851 | ||
| Depreciation and amortization | 10,273 | 10,792 | ||
| Impairment of real estate | 1,404 | — | ||
| Goodwill impairment | 412,611 | — | ||
| Net income attributable to noncontrolling interests | 16,809 | 17,972 | ||
| Gain on sale of equity method investment | (38,403) | — | ||
| Recoveries collected and applied to Finance receivables, net less Changes in expected recoveries | 902,925 | 787,028 | ||
| Adjusted EBITDA | $ | 1,265,490 | $ | 1,137,552 |
The Company uses an adjusted cash efficiency ratio, which is a supplemental measure of performance that is not required by, or presented in accordance with, GAAP, to monitor and evaluate operating expenses, excluding goodwill impairment ("Adjusted operating expenses"), relative to cash collections plus fees and revenue recognized from our class action claims recovery services. Management believes the adjusted cash efficiency ratio is a useful financial measure for investors in evaluating the Company's management of operating expenses. 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 the Company's 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 | |||||||
| 2025 | 2024 | 2025 | 2024 | |||||
| Cash collections | $ | 542,244 | $ | 477,110 | $ | 1,575,968 | $ | 1,400,510 |
| Fee income | 622 | 3,138 | 3,745 | 4,036 | ||||
| Cash receipts | 542,866 | 480,248 | 1,579,713 | 1,404,546 | ||||
| Total operating expenses | 626,687 | 191,499 | 1,024,306 | 575,696 | ||||
| Less: Goodwill impairment | 412,611 | — | 412,611 | — | ||||
| Adjusted operating expenses | 214,076 | 191,499 | 611,695 | 575,696 | ||||
| Cash receipts less Adjusted operating expenses | 328,790 | 288,749 | 968,018 | 828,850 | ||||
| Adjusted cash efficiency ratio | 60.6% | 60.1% | 61.3% | 59.0% |
In addition, the Company uses return on average tangible equity ("ROATE"), which is a supplemental measure of performance that is not required by, or presented in accordance with, GAAP, 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 stockholder 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 annualized Net (loss)/income attributable to PRA Group, Inc. by average tangible equity.
ROATE may include certain items that are not indicative of the ongoing operating results of the Company's business. Accordingly, the Company also uses Adjusted ROATE to monitor and evaluate operating performance relative to the Company's equity. Management believes that Adjusted ROATE is a useful financial measure for investors because it excludes the impact of certain transactions that are either unusual or infrequent in nature, or both ("Adjusted net income attributable to PRA Group, Inc."). Adjusted ROATE is calculated by dividing Adjusted net income attributable to PRA Group, Inc. by average tangible equity.
The following table provides a reconciliation of Total stockholders' equity - PRA Group, Inc. as reported in accordance with GAAP to average tangible equity and a reconciliation of Net (loss)/income attributable to PRA Group, Inc. to Adjusted net income attributable to PRA Group, Inc., and provides the Company's 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, 2025 | September 30, 2024 | 2025 | 2024 | 2025 | 2024 | |||||||
| Total stockholders' equity - PRA Group, Inc. (2) | $ | 928,493 | $ | 1,218,882 | $ | 1,132,709 | $ | 1,182,173 | $ | 1,154,889 | $ | 1,165,196 |
| Less: Goodwill | 26,871 | 423,011 | 233,160 | 419,329 | 320,848 | 420,517 | ||||||
| Less: Other intangible assets | 1,470 | 1,620 | 1,506 | 1,609 | 1,488 | 1,656 | ||||||
| Average tangible equity | $ | 898,043 | $ | 761,235 | $ | 832,553 | $ | 743,023 | ||||
| ROATE (3) | ||||||||||||
| Third Quarter | Year-to-Date | |||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||
| Net (loss)/income attributable to PRA Group, Inc. | $ | (407,703) | $ | 27,154 | $ | (361,670) | $ | 52,145 | ||||
| Return on average tangible equity | (181.6)% | 14.3% | (57.9)% | 9.4% | ||||||||
| Adjusted Net Income Attributable to PRA Group, Inc. Reconciliation and Adjusted ROATE (4) | ||||||||||||
| Third Quarter | Year-to-Date | |||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||
| Net (loss)/income attributable to PRA Group, Inc. | $ | (407,703) | $ | 27,154 | $ | (361,670) | $ | 52,145 | ||||
| Less: Gain on sale of equity method investment, net of tax | — | — | (29,686) | — | ||||||||
| Plus: Goodwill impairment, net of tax | 428,580 | — | 428,580 | — | ||||||||
| Adjusted net income attributable to PRA Group, Inc. | 20,877 | 27,154 | 37,224 | 52,145 | ||||||||
| Adjusted ROATE | 9.3% | 14.3% | 6.0% | 9.4% |
Investor Contact:
Najim Mostamand, CFA
Vice President, Investor Relations
757-431-7913
IR@PRAGroup.com
Media Contact:
Allison Herman
Manager, Public Relations and Strategic Communication
(757) 381-5205
mediainquiries@pragroup.com
1.Amounts represent the average balances for the respective periods.
2.Amounts not adjusted for Gain on sale of equity method investment due to the de minimus effect.
3.Based on annualized Net (loss)/income attributable to PRA Group, Inc.
4.Based on annualized Adjusted net income attributable to PRA Group, Inc.