praa-20251103

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, 2025		December 31, 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 as of September 30, 2025 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) as of September 30, 2025 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

[email protected]

Media Contact:

Allison Herman

Manager, Public Relations and Strategic Communication

(757) 381-5205

[email protected]

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.


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



(d)	Exhibits
	99.1	Press release dated November 3, 2025
	104	Cover Page Interactive Data File (embedded within the Inline XBRL document)


	PRA Group, Inc.

Date: November 3, 2025	By:	/s/ Rakesh Sehgal
		Rakesh Sehgal
		Executive Vice President and Chief Financial Officer


Date of Report (Date of Earliest Event Reported):			November 3, 2025


Registrant’s telephone number, including area code:						(888)			772-7326