8-K

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 4, 2024

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 4, 2024, PRA Group, Inc. (the “Company”) issued a press release announcing its third quarter 2024 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 4, 2024, webcast and conference call to discuss its third quarter 2024 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 4, 2024
	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 4, 2024	By:	/s/ Rakesh Sehgal
		Rakesh Sehgal
		Executive Vice President and Chief Financial Officer

Document

PRA Group Reports Third Quarter 2024 Results

Transformation in U.S. Business Clearly Visible

Company On Track to Achieve Financial and Operational Targets for 2024; Announces Targets for 2025

NORFOLK, Va., November 4, 2024 - 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 2024 ("Q3 2024").

Q3 2024 Highlights

•Net income attributable to PRA Group, Inc. of $27.2 million, or diluted earnings per share of $0.69, including a tax benefit item of $7.7 million, or $0.20 per share.

•Total portfolio purchases of $350.0 million.

•Total cash collections of $477.1 million.

•Record estimated remaining collections (ERC)1 of $7.3 billion.

•Cash efficiency ratio2 of 60.1%.

•Adjusted EBITDA3 for the 12 months ended September 30, 2024 of $1.1 billion.

	Three Months Ended Sept 30,				Nine Months Ended Sept 30,
($ in thousands, except per share amounts)	2024		2023		2024		2023
Net income/(loss) attributable to PRA Group, Inc.	$	27,154	$	(12,262)	$	52,145	$	(74,695)
Diluted earnings per share	$	0.69	$	(0.31)	$	1.32	$	(1.91)

“Our third quarter financial results reflected strong cash collections, robust portfolio buying, significant revenue increases and solid net income. Over the past 18 months, we have built out a highly experienced senior leadership team, capitalized on the rebound in U.S. portfolio supply, executed on our cash-generating and operational initiatives with intense focus, speed and discipline, and driven the financial and operational turnaround in our U.S. business, while continuing to differentiate ourselves in Europe at a time when certain of our competitors in that region have been under pressure," said Vikram Atal, president and chief executive officer.

"We invested $350 million during the quarter, which helped us achieve record ERC of $7.3 billion. Cash collections grew 14% year-over-year, reflecting both higher portfolio purchases and the positive impact of our operational initiatives. As we enter the fourth quarter, we are on track to exceed our 2024 targets. We are also announcing 2025 targets as we continue to gain momentum in our business and focus on driving growth, profitability, and shareholder value."

1.Refers to the sum of all future projected cash collections on the Company's nonperforming loan portfolios.

2.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.

3.A reconciliation of net income, 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.

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	2024						2023
($ in thousands)	Q3		Q2		Q1		Q4		Q3
Americas and Australia Core	$	266,977	$	263,828	$	256,861	$	220,127	$	223,714
Americas Insolvency	26,065		26,971		25,209		24,293		27,809
Europe Core	158,242		156,739		145,933		144,361		144,402
Europe Insolvency	25,826		26,344		21,515		21,502		23,639
Total cash collections	$	477,110	$	473,882	$	449,518	$	410,283	$	419,564
Cash Collection Source -
Constant Currency-Adjusted	2024								2023
($ in thousands)	Q3								Q3
Americas and Australia Core	$	266,977							$	218,303
Americas Insolvency	26,065								27,785
Europe Core	158,242								147,597
Europe Insolvency	25,826								24,255
Total cash collections	$	477,110							$	417,940

•Total cash collections in Q3 2024 increased 13.7% to $477.1 million compared to $419.6 million in the third quarter of 2023 ("Q3 2023"). The increase was driven by higher cash collections in both the U.S. and Europe. For the nine months ended September 30, 2024, cash collections increased $150.3 million, or 12.0%, compared to the same period last year.

•Total portfolio revenue in Q3 2024 increased 30.5% to $276.7 million compared to $212.1 million in Q3 2023. For the nine months ended September 30, 2024, total portfolio revenue increased 42.9% to $813.1 million compared to $568.9 million in the same period last year.

	Three Months Ended Sept 30,				Nine Months Ended Sept 30,
($ in thousands)	2024		2023		2024		2023
Portfolio income	$	216,122	$	189,960	$	627,468	$	562,492
Recoveries received in excess of forecast	$	34,158	$	18,090	$	124,256	$	47,276
Changes in expected future recoveries	26,456		4,066		61,352		(40,896)
Changes in expected recoveries	$	60,614	$	22,156	$	185,608	$	6,380
Total portfolio revenue	$	276,736	$	212,116	$	813,076	$	568,872

Expenses

•Operating expenses in Q3 2024 increased $18.1 million, or 10.4%, to $191.5 million compared to $173.4 million in Q3 2023.

◦Legal collection costs increased $8.0 million, primarily due to increased investments in our U.S. legal collections channel, which are expected to drive future cash collections growth.

◦Compensation and employee services expenses increased $6.6 million, primarily due to lower compensation accruals and benefits related expenses in Q3 2023 and higher wage costs in the current year period.

◦Legal collection fees increased $4.6 million, primarily due to higher external legal collections in our U.S. Core portfolio.

•For the nine months ended September 30, 2024, operating expenses increased by $49.5 million, or 9.4%, compared to the same period last year, which included higher legal collection costs of $24.5 million related to increased investments in our U.S. legal collections channel.

•Interest expense, net in Q3 2024 was $61.1 million, an increase of $11.6 million, or 23.4%, compared to $49.5 million in Q3 2023, primarily reflecting higher debt balances to support portfolio investments.

•The effective tax rate for the nine months ended September 30, 2024 was 13.7%.

Portfolio Acquisitions

•The Company purchased $350.0 million in portfolios of nonperforming loans in Q3 2024.

•At the end of Q3 2024, the Company had in place estimated forward flow commitments1 of $491.1 million over the next 12 months, comprised of $406.3 million in the Americas and Australia and $84.8 million in Europe.

Portfolio Purchase Source	2024						2023
($ in thousands)	Q3		Q2		Q1		Q4		Q3
Americas & Australia Core	$	263,613	$	198,761	$	174,660	$	143,052	$	187,554
Americas Insolvency	10,162		26,627		22,156		18,608		44,279
Europe Core	71,507		127,991		43,997		110,780		60,628
Europe Insolvency	4,696		25,990		5,004		12,476		18,722
Total portfolio acquisitions	$	349,978	$	379,369	$	245,817	$	284,916	$	311,183

Credit Availability

•Total availability under the Company's credit facilities as of September 30, 2024 was $1.0 billion, comprised of $412.7 million based on current ERC and subject to debt covenants, and $585.9 million of additional availability subject to borrowing base and debt covenants, including advance rates.

Financial and Operational Targets for 2024 and 2025

The Company is on track to achieve the following financial and operational targets for full year 2024:

•Strong portfolio investment levels

•Double-digit cash collections growth

•~60% cash efficiency ratio

•8%+ return on average tangible equity2 (up from 6% - 8% previously)

In addition, the Company announces the following financial and operational targets for full year 2025:

•Portfolio investment levels to exceed $1.0 billion

•Cash collections growth of 8% - 10%

•60%+ cash efficiency ratio

•Double-digit return on average tangible equity2

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 4, 2025, or call 646-517-4150 in the U.S. or 1-888-660-6345 outside the U.S. and use access code 29879# until November 11, 2024.

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

1.Contractual agreements with sellers of nonperforming loans that allow for the purchase of nonperforming 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 flow sales, and are dependent on actual delivery by the sellers. Accordingly, amounts purchased under these agreements may vary significantly.

2.A reconciliation of total stockholders' equity – PRA Group, Inc., the most directly comparable financial measure calculated and reported in accordance with GAAP, to average tangible equity can be found at the end of this press release.

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.

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 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,
	2024		2023		2024		2023
Revenues:
Portfolio income	$	216,122	$	189,960	$	627,468	$	562,492
Changes in expected recoveries	60,614		22,156		185,608		6,380
Total portfolio revenue	276,736		212,116		813,076		568,872
Other revenue	4,741		4,314		8,216		12,264
Total revenues	281,477		216,430		821,292		581,136
Operating expenses:
Compensation and employee services	76,106		69,517		223,944		217,708
Legal collection fees	14,479		9,839		40,353		28,228
Legal collection costs	28,781		20,761		90,746		66,228
Agency fees	21,020		19,436		61,751		54,491
Outside fees and services	20,452		18,858		63,626		62,064
Communication	10,048		9,881		34,203		30,525
Rent and occupancy	4,175		4,426		12,455		13,193
Depreciation and amortization	2,469		3,273		7,826		10,344
Impairment of real estate	—		5,037		—		5,037
Other operating expenses	13,969		12,356		40,792		38,355
Total operating expenses	191,499		173,384		575,696		526,173
Income from operations	89,978		43,046		245,596		54,963
Other income and (expense):
Interest expense, net	(61,062)		(49,473)		(168,693)		(130,778)
Foreign exchange gain, net	10		564		138		984
Other	(676)		(500)		(836)		(1,380)
Income/(loss) before income taxes	28,250		(6,363)		76,205		(76,211)
Income tax expense/(benefit)	(672)		1,788		10,416		(15,317)
Net income/(loss)	28,922		(8,151)		65,789		(60,894)
Adjustment for net income attributable to noncontrolling interests	1,768		4,111		13,644		13,801
Net income/(loss) attributable to PRA Group, Inc.	$	27,154	$	(12,262)	$	52,145	$	(74,695)
Net income/(loss) per common share attributable to PRA Group, Inc.:
Basic	$	0.69	$	(0.31)	$	1.33	$	(1.91)
Diluted	$	0.69	$	(0.31)	$	1.32	$	(1.91)
Weighted average number of shares outstanding:
Basic	39,421		39,242		39,353		39,155
Diluted	39,492		39,242		39,495		39,155

PRA Group, Inc.

Consolidated Balance Sheets

(Amounts in thousands)

	(unaudited)
	September 30,<br>2024		December 31,<br>2023
Assets
Cash and cash equivalents	$	141,135	$	112,528
Investments	61,322		72,404
Finance receivables, net	4,064,467		3,656,598
Income taxes receivable	33,368		27,713
Deferred tax assets, net	88,260		74,694
Right-of-use assets	40,831		45,877
Property and equipment, net	31,835		36,450
Goodwill	423,011		431,564
Other assets	51,841		67,526
Total assets	$	4,936,070	$	4,525,354
Liabilities and Equity
Liabilities:
Accounts payable	$	8,176	$	6,325
Accrued expenses	108,926		131,893
Income taxes payable	27,501		17,912
Deferred tax liabilities, net	19,881		17,051
Lease liabilities	45,222		50,300
Interest-bearing deposits	128,594		115,589
Borrowings	3,296,172		2,914,270
Other liabilities	19,806		32,638
Total liabilities	3,654,278		3,285,978
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, 39,426 shares issued and outstanding as of September 30, 2024; 100,000 shares authorized, 39,247 shares issued and outstanding as of December 31, 2023	394		392
Additional paid-in capital	15,415		7,071
Retained earnings	1,541,693		1,489,548
Accumulated other comprehensive loss	(338,620)		(329,899)
Total stockholders' equity - PRA Group, Inc.	1,218,882		1,167,112
Noncontrolling interests	62,910		72,264
Total equity	1,281,792		1,239,376
Total liabilities and equity	$	4,936,070	$	4,525,354
Select Expenses (Income)<br><br>Amounts in thousands, pre-tax
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
	Three Months Ended
	September 30,<br>2024		June 30,<br>2024		March 31,<br>2024		December 31,<br>2023		September 30,<br>2023		June 30,<br>2023		March 31,<br>2023		December 31,<br>2022
Noncash interest expense - amortization of debt issuance costs	$	3,795	$	2,331	$	2,200	$	2,177	$	2,220	$	2,384	$	2,441	$	2,444
Change in fair value of derivatives	(5,706)		(5,628)		(5,930)		(6,734)		(6,545)		(6,960)		(5,470)		(3,309)
Amortization of intangibles	60		58		60		69		69		68		66		73
Impairment of real estate	—		—		—		202		5,037		—		—		—
Stock-based compensation expense	3,251		3,555		3,327		2,952		1,629		2,715		3,799		2,206
Purchase Price Multiples<br><br>as of September 30, 2024<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
1996-2013	$	1,932,722	$	5,754,451	$	54,564	298%	233%
2014	404,117		899,280		30,956		223%	204%
2015	443,114		921,016		43,600		208%	205%
2016	455,767		1,094,043		60,873		240%	201%
2017	532,851		1,218,849		92,454		229%	193%
2018	653,975		1,520,429		128,845		232%	202%
2019	581,476		1,311,448		134,279		226%	206%
2020	435,668		956,953		150,536		220%	213%
2021	435,846		736,409		261,863		169%	191%
2022	406,082		708,712		334,578		175%	179%
2023	622,583		1,222,835		877,849		196%	197%
2024	638,147		1,339,929		1,261,602		210%	210%
Subtotal	7,542,348		17,684,354		3,431,999
Americas Insolvency
1996-2013	1,266,056		2,503,285		6		198%	159%
2014	148,420		218,963		30		148%	124%
2015	63,170		88,112		23		139%	125%
2016	91,442		118,378		188		129%	123%
2017	275,257		358,774		950		130%	125%
2018	97,879		136,385		692		139%	127%
2019	123,077		167,548		4,005		136%	128%
2020	62,130		91,718		16,018		148%	136%
2021	55,187		74,453		22,486		135%	136%
2022	33,442		47,352		26,688		142%	139%
2023	91,282		119,692		91,017		131%	135%
2024	58,945		87,085		79,949		148%	148%
Subtotal	2,366,287		4,011,745		242,052
Total Americas and Australia	9,908,635		21,696,099		3,674,051
Europe Core
2012-2013	40,742		72,994		1		179%	153%
2014	773,811		2,584,292		423,498		334%	208%
2015	411,340		756,321		134,898		184%	160%
2016	333,090		581,121		156,172		174%	167%
2017	252,174		369,927		102,638		147%	144%
2018	341,775		559,571		187,631		164%	148%
2019	518,610		852,264		323,682		164%	152%
2020	324,119		574,755		242,053		177%	172%
2021	412,411		707,823		390,545		172%	170%
2022	359,447		586,297		445,461		163%	162%
2023	410,593		693,472		574,464		169%	169%
2024	251,874		453,608		430,252		180%	180%
Subtotal	4,429,986		8,792,445		3,411,295
Europe Insolvency
2014	10,876		19,038		—		175%	129%
2015	18,973		29,429		—		155%	139%
2016	39,338		57,983		598		147%	130%
2017	39,235		52,046		841		133%	128%
2018	44,908		52,881		2,335		118%	123%
2019	77,218		113,945		12,563		148%	130%
2020	105,440		159,030		26,032		151%	129%
2021	53,230		74,452		24,736		140%	134%
2022	44,604		62,450		38,756		140%	137%
2023	46,558		64,602		53,683		139%	138%
2024	37,783		54,855		48,388		145%	145%
Subtotal	518,163		740,711		207,932
Total Europe	4,948,149		9,533,156		3,619,227
Total PRA Group	$	14,856,784	$	31,229,255	$	7,293,278

(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 year in which the portfolio was purchased. In addition, any purchase price adjustments that occur throughout the life of the portfolio are presented at the year-end exchange rate for the respective year of purchase.

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

(4)Non-U.S. amounts are presented at the September 30, 2024 exchange rate.

(5)The Original Purchase Price Multiple represents the purchase price multiple at the end of the year of acquisition.

Portfolio Financial Information (1)
Amounts in thousands
	September 30, 2024 (year-to-date)								As of September 30, 2024
Purchase Period	Cash Collections (2)		Portfolio Income (2)		Change in Expected Recoveries (2)		Total Portfolio Revenue (2)		Net Finance Receivables (3)
Americas and Australia Core
1996-2013	$	26,786	$	10,656	$	17,243	$	27,899	$	16,771
2014	10,691		4,303		8,039		12,342		12,019
2015	13,258		5,305		11,778		17,083		18,918
2016	18,506		9,782		8,634		18,416		21,833
2017	30,470		13,521		11,941		25,462		38,195
2018	60,243		21,259		25,535		46,794		70,664
2019	62,311		24,744		13,609		38,353		75,355
2020	70,086		27,464		6,632		34,096		85,017
2021	79,282		39,444		(10,559)		28,885		136,930
2022	116,142		49,024		(5,628)		43,396		202,091
2023	221,800		126,913		7,595		134,508		494,772
2024	78,091		60,269		11,125		71,394		630,678
Subtotal	787,666		392,684		105,944		498,628		1,803,243
Americas Insolvency
1996-2013	756		85		672		757		—
2014	216		68		151		219		—
2015	153		24		103		127		13
2016	458		31		363		394		163
2017	2,105		153		1,800		1,953		854
2018	2,102		98		802		900		653
2019	13,129		825		(1,169)		(344)		3,827
2020	13,236		1,961		1,014		2,975		14,760
2021	11,963		2,352		679		3,031		19,901
2022	8,314		2,370		542		2,912		22,440
2023	18,678		8,407		(983)		7,424		72,108
2024	7,134		4,419		189		4,608		55,878
Subtotal	78,244		20,793		4,163		24,956		190,597
Total Americas and Australia	865,910		413,477		110,107		523,584		1,993,840
Europe Core
2012-2013	789		—		789		789		—
2014	75,739		46,494		22,135		68,629		95,353
2015	23,089		10,203		4,535		14,738		66,317
2016	20,460		9,757		3,067		12,824		88,047
2017	13,600		5,048		1,309		6,357		68,268
2018	28,500		10,315		4,879		15,194		120,450
2019	51,635		16,799		8,537		25,336		218,471
2020	38,069		14,275		6,685		20,960		148,879
2021	50,687		21,458		5,636		27,094		236,349
2022	57,408		22,884		2,696		25,580		280,574
2023	78,264		32,685		2,517		35,202		340,067
2024	22,674		9,521		2,574		12,095		240,351
Subtotal	460,914		199,439		65,359		264,798		1,903,126
Europe Insolvency
2014	138		—		138		138		—
2015	141		2		113		115		—
2016	659		87		306		393		164
2017	1,246		97		44		141		669
2018	2,839		207		217		424		2,087
2019	10,653		1,083		1,620		2,703		10,971
2020	20,081		2,174		2,681		4,855		23,842
2021	11,540		2,041		1,546		3,587		21,779
2022	11,129		2,907		1,983		4,890		31,794
2023	9,057		3,827		449		4,276		42,090
2024	6,203		2,127		1,045		3,172		34,105
Subtotal	73,686		14,552		10,142		24,694		167,501
Total Europe	534,600		213,991		75,501		289,492		2,070,627
Total PRA Group	$	1,400,510	$	627,468	$	185,608	$	813,076	$	4,064,467

(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, 2024 exchange rate.

Cash Collections by Year, By Year of Purchase (1)<br><br>as of September 30, 2024<br><br>Amounts in millions
			Cash Collections
Purchase Period	Purchase Price (2)(3)		1996-2013		2014		2015		2016		2017		2018		2019		2020		2021		2022		2023		2024		Total
Americas and Australia Core
1996-2013	$	1,932.7	$	3,618.9	$	660.3	$	474.4	$	299.7	$	197.0	$	140.3	$	99.7	$	64.7	$	46.5	$	36.0	$	28.4	$	26.8	$	5,692.7
2014	404.1		—		92.7		253.4		170.3		114.2		82.2		55.3		31.9		22.3		15.0		11.8		10.7		859.8
2015	443.1		—		—		117.0		228.4		185.9		126.6		83.6		57.2		34.9		19.5		14.1		13.3		880.5
2016	455.8		—		—		—		138.7		256.5		194.6		140.6		105.9		74.2		38.4		24.9		18.5		992.3
2017	532.9		—		—		—		—		107.3		278.7		256.5		192.5		130.0		76.3		43.8		30.5		1115.6
2018	654.0		—		—		—		—		—		122.7		361.9		337.7		239.9		146.1		92.9		60.2		1361.4
2019	581.5		—		—		—		—		—		—		143.8		349.0		289.8		177.7		110.3		62.3		1132.9
2020	435.7		—		—		—		—		—		—		—		132.9		284.3		192.0		125.8		70.1		805.1
2021	435.8		—		—		—		—		—		—		—		—		85.0		177.3		136.8		79.3		478.4
2022	406.1		—		—		—		—		—		—		—		—		—		67.7		195.4		116.1		379.2
2023	622.5		—		—		—		—		—		—		—		—		—		—		108.5		221.8		330.3
2024	638.1		—		—		—		—		—		—		—		—		—		—		—		78.1		78.1
Subtotal	7,542.3		3,618.9		753.0		844.8		837.1		860.9		945.1		1,141.4		1,271.8		1,206.9		946.0		892.7		787.7		14,106.3
Americas Insolvency
1996-2013	1,266.1		1,491.4		421.4		289.9		168.7		85.5		30.3		6.8		3.6		2.2		1.6		1.1		0.8		2,503.3
2014	148.4		—		37.0		50.9		44.3		37.4		28.8		15.8		2.2		1.1		0.7		0.4		0.2		218.8
2015	63.2		—		—		3.4		17.9		20.1		19.8		16.7		7.9		1.3		0.6		0.3		0.2		88.2
2016	91.4		—		—		—		18.9		30.4		25.0		19.9		14.4		7.4		1.8		0.9		0.5		119.2
2017	275.3		—		—		—		—		49.1		97.3		80.9		58.8		44.0		20.8		4.9		2.1		357.9
2018	97.9		—		—		—		—		—		6.7		27.4		30.5		31.6		24.6		12.7		2.1		135.6
2019	123.1		—		—		—		—		—		—		13.4		31.4		39.1		37.8		28.7		13.1		163.5
2020	62.1		—		—		—		—		—		—		—		6.5		16.1		20.4		19.5		13.2		75.7
2021	55.2		—		—		—		—		—		—		—		—		4.6		17.9		17.5		12.0		52.0
2022	33.4		—		—		—		—		—		—		—		—		—		3.2		9.2		8.3		20.7
2023	91.2		—		—		—		—		—		—		—		—		—		—		9.0		18.7		27.7
2024	59.0		—		—		—		—		—		—		—		—		—		—		—		7.0		7.0
Subtotal	2,366.3		1,491.4		458.4		344.2		249.8		222.5		207.9		180.9		155.3		147.4		129.4		104.2		78.2		3,769.6
Total Americas and Australia	9,908.6		5,110.3		1,211.4		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		865.9		17,875.9
Europe Core
2012-2013	40.7		27.7		14.2		5.5		3.5		3.3		3.3		2.4		1.9		1.8		1.4		1.0		0.8		66.8
2014	773.8		—		153.2		292.0		246.4		220.8		206.3		172.9		149.8		149.2		122.2		107.6		75.7		1,896.1
2015	411.3		—		—		45.8		100.3		86.2		80.9		66.1		54.3		51.4		40.7		33.8		23.1		582.6
2016	333.1		—		—		—		40.4		78.9		72.6		58.0		48.3		46.7		36.9		29.7		20.5		432.0
2017	252.2		—		—		—		—		17.9		56.0		44.1		36.1		34.8		25.2		20.2		13.6		247.9
2018	341.8		—		—		—		—		—		24.3		88.7		71.3		69.1		50.7		41.6		28.5		374.2
2019	518.6		—		—		—		—		—		—		48.0		125.7		121.4		89.8		75.1		51.6		511.6
2020	324.1		—		—		—		—		—		—		—		32.3		91.7		69.0		56.1		38.1		287.2
2021	412.4		—		—		—		—		—		—		—		—		48.5		89.9		73.0		50.7		262.1
2022	359.4		—		—		—		—		—		—		—		—		—		33.9		83.8		57.4		175.1
2023	410.6		—		—		—		—		—		—		—		—		—		—		50.2		78.3		128.5
2024	252.0		—		—		—		—		—		—		—		—		—		—		—		22.6		22.6
Subtotal	4,430.0		27.7		167.4		343.3		390.6		407.1		443.4		480.2		519.7		614.6		559.7		572.1		460.9		4,986.7
Europe Insolvency
2014	10.9		—		—		4.3		3.9		3.2		2.6		1.5		0.8		0.3		0.2		0.2		0.1		17.1
2015	19.0		—		—		3.0		4.4		5.0		4.8		3.9		2.9		1.6		0.6		0.4		0.1		26.7
2016	39.3		—		—		—		6.2		12.7		12.9		10.7		7.9		6.0		2.7		1.3		0.7		61.1
2017	39.2		—		—		—		—		1.2		7.9		9.2		9.8		9.4		6.5		3.8		1.2		49.0
2018	44.9		—		—		—		—		—		0.6		8.4		10.3		11.7		9.8		7.2		2.8		50.8
2019	77.2		—		—		—		—		—		—		5.0		21.1		23.9		21.0		17.5		10.7		99.2
2020	105.4		—		—		—		—		—		—		—		6.0		34.6		34.1		29.7		20.1		124.5
2021	53.2		—		—		—		—		—		—		—		—		5.5		14.4		14.7		11.5		46.1
2022	44.6		—		—		—		—		—		—		—		—		—		4.5		12.4		11.1		28.0
2023	46.7		—		—		—		—		—		—		—		—		—		—		4.2		9.1		13.3
2024	37.8		—		—		—		—		—		—		—		—		—		—		—		6.3		6.3
Subtotal	518.2		—		—		7.3		14.5		22.1		28.8		38.7		58.8		93.0		93.8		91.4		73.7		522.1
Total Europe	4,948.2		27.7		167.4		350.6		405.1		429.2		472.2		518.9		578.5		707.6		653.5		663.5		534.6		5,508.8
Total PRA Group	$	14,856.8	$	5,138.0	$	1,378.8	$	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	$	1,400.5	$	23,384.7

(1)Non-U.S. amounts are presented using the average exchange rates during the cash collection 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 year in which the portfolio was purchased. In addition, any purchase price adjustments that occur throughout the life of the pool are presented at the year-end exchange rate for the respective year 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 income (or loss) attributable to PRA Group, Inc. plus income tax expense (or less income tax benefit); plus foreign exchange loss (or less foreign exchange gain); plus interest expense, net; plus other expense (or less other income); plus depreciation and amortization; plus impairment of real estate; plus net income attributable to noncontrolling interests; and plus recoveries applied to negative allowance 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 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 income determined in accordance with GAAP. Set forth below is a reconciliation of net income, 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, 2024 and for the year ended December 31, 2023. The calculation of Adjusted EBITDA below may not be comparable to the calculation of similarly titled measures reported by other companies.

Reconciliation of Non-GAAP Financial Measures
	LTM		For the Year Ended
Adjusted EBITDA for PRA Group ($ in millions)	September 30, 2024		December 31, 2023
Net income/(loss) attributable to PRA Group, Inc.	$	43	$	(83)
Adjustments:
Income tax expense/(benefit)	10		(16)
Foreign exchange loss	1		—
Interest expense, net	220		181
Other expense	1		2
Depreciation and amortization	11		13
Impairment of real estate	—		5
Net income attributable to noncontrolling interests	17		17
Recoveries applied to negative allowance less changes in expected recoveries	797		888
Adjusted EBITDA	$	1,100	$	1,007

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 shareholder return. Average tangible equity (ATE) 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 income/(loss) attributable to PRA Group, Inc. by ATE.

The following table displays the Company's ROATE and provides a reconciliation of Total stockholders' equity - PRA Group, Inc. as reported in accordance with GAAP to ATE for the periods indicated (amounts in thousands, except for ratio data):

					Average Balance
	Balance as of Period End				Third Quarter				Year-to-Date
	September 30, 2024		September 30, 2023		2024		2023		2024		2023
Total stockholders' equity - PRA Group, Inc.	$	1,218,882	$	1,115,590	$	1,182,173	$	1,140,558	$	1,165,196	$	1,166,780
Less: Goodwill	423,011		412,513		419,329		413,709		420,517		420,997
Less: Other intangible assets	1,620		1,670		1,609		1,753		1,656		1,797
Average tangible equity					$	761,235	$	725,096	$	743,023	$	743,986
Net income/(loss) attributable to PRA Group, Inc.					$	27,154	$	(12,262)	$	52,145	$	(74,695)
Return on average tangible equity (1)					14.3%		(6.8)%		9.4%		(13.4)%

Investor Contact:

Najim Mostamand, CFA

Vice President, Investor Relations

757-431-7913

IR@PRAGroup.com

News Media Contact:

Elizabeth Kersey

Senior Vice President, Communications and Public Policy

(757) 641-0558

Elizabeth.Kersey@PRAGroup.com

1.Based on annualized Net income/(loss) attributable to PRA Group, Inc.