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): | May 5, 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 May 5, 2025, PRA Group, Inc. (the “Company”) issued a press release announcing its first 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 May 5, 2025, webcast and conference call to discuss its first 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 May 5, 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: May 5, 2025 | By: | /s/ Rakesh Sehgal |
| Rakesh Sehgal | ||
| Executive Vice President and Chief Financial Officer |
Document
PRA Group Reports First Quarter 2025 Results
19% Growth in Portfolio Purchases Drives Record ERC of $7.8 Billion
Strong Portfolio Purchases and Execution of Strategic Initiatives Contributed to Double-Digit Cash Collections Growth
Company Positioned for Continued Success with Transition to Newly Appointed CEO
NORFOLK, Va., May 5, 2025 - PRA Group, Inc. (Nasdaq: PRAA) (the "Company"), a global leader in acquiring and collecting nonperforming loans, today reported its financial results for the first quarter of 2025 ("Q1 2025").
Q1 2025 Highlights
•Total portfolio purchases of $291.7 million, an increase of 18.7% year-over-year.
•Record estimated remaining collections (ERC)1 of $7.8 billion, an increase of 20.1% year-over-year.
•Total cash collections of $497.4 million, an increase of 10.7% year-over-year.
•Cash efficiency ratio2 of 60.8%, an increase of 284 basis points year-over-year.
•Net income attributable to PRA Group, Inc. of $3.7 million, an increase of 5.3% year-over-year, resulting in diluted earnings per share of $0.09.
•Adjusted EBITDA3 for the 12 months ended March 31, 2025 of $1.2 billion, an increase of 13.5% year-over-year.
| Three Months Ended March 31, | ||||
|---|---|---|---|---|
| ($ in thousands, except per share amounts) | 2025 | 2024 | ||
| Net income attributable to PRA Group, Inc. | $ | 3,659 | $ | 3,475 |
| Diluted earnings per share | $ | 0.09 | $ | 0.09 |
“Building on a successful 2024, we delivered another strong quarter, including an increase in portfolio purchases of 19%, record ERC, our fourth consecutive quarter of double-digit cash collections growth, and a nearly 300 basis point improvement in cash efficiency, as we continued to execute on our cash-generating and operational initiatives in the U.S.," said Vikram Atal, president and chief executive officer. "Changes in Expected Recoveries moderated from recent levels. Historically, our first quarter cash collections in the U.S. have experienced seasonality increases, typically driven by consumer tax refunds, that didn’t materialize this quarter to the extent that we modeled, resulting in lower profitability compared to prior quarters. I am very proud of the team's accomplishments to improve the cash-generation capabilities of the U.S. business—which we believe, coupled with the continued strength of our European business, sets us up for overall success moving forward."
"As we look ahead, we are excited to welcome our newly appointed president and CEO Martin Sjolund, who has been with the Company for 13 years and brings a successful European playbook to build on our global three-pillar strategy."
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.
"We are confident in the overall trajectory of the business and, at this time, we are not changing our previously provided financial targets, except for the return on average tangible equity, which is likely to be at a lower level than our target of approximately 12%. As we move through the coming quarters, we will reaffirm, raise, or lower these targets as appropriate. We continue to take a long-term approach to managing the business and we believe we are well-positioned to execute on our strategy to drive continued growth, profitability, and shareholder value."
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) | Q1 | Q4 | Q3 | Q2 | Q1 | |||||
| Americas and Australia Core | $ | 288,160 | $ | 257,711 | $ | 266,977 | $ | 263,828 | $ | 256,861 |
| Americas Insolvency | 23,700 | 24,067 | 26,065 | 26,971 | 25,209 | |||||
| Europe Core | 164,371 | 162,564 | 158,242 | 156,739 | 145,933 | |||||
| Europe Insolvency | 21,205 | 23,724 | 25,826 | 26,344 | 21,515 | |||||
| Total cash collections | $ | 497,436 | $ | 468,066 | $ | 477,110 | $ | 473,882 | $ | 449,518 |
| Cash Collection Source - | ||||||||||
| Constant Currency-Adjusted | 2025 | 2024 | ||||||||
| ($ in thousands) | Q1 | Q1 | ||||||||
| Americas and Australia Core | $ | 288,160 | $ | 249,195 | ||||||
| Americas Insolvency | 23,700 | 25,039 | ||||||||
| Europe Core | 164,371 | 143,377 | ||||||||
| Europe Insolvency | 21,205 | 21,352 | ||||||||
| Total cash collections | $ | 497,436 | $ | 438,963 |
•Total cash collections in Q1 2025 increased 10.7% to $497.4 million, compared to $449.5 million in the first quarter of 2024 ("Q1 2024").
| Three Months Ended March 31, | ||||
|---|---|---|---|---|
| ($ in thousands) | 2025 | 2024 | ||
| Portfolio income | $ | 240,958 | $ | 202,056 |
| Recoveries collected in excess of forecast | $ | 16,500 | $ | 35,838 |
| Changes in expected future recoveries | 11,422 | 15,836 | ||
| Changes in expected recoveries | $ | 27,922 | $ | 51,674 |
| Total portfolio revenue | $ | 268,880 | $ | 253,730 |
•Total portfolio revenue in Q1 2025 increased 6.0% to $268.9 million, compared to $253.7 million in Q1 2024.
Expenses
•Operating expenses in Q1 2025 increased 3.1% to $195.0 million, compared to $189.2 million in Q1 2024. The increase was primarily due to continued investments in our U.S. legal collections channel to drive future cash collections growth.
•Interest expense, net in Q1 2025 increased 16.6% to $61.0 million, compared to $52.3 million in Q1 2024, primarily reflecting higher debt balances to support portfolio investments.
•The effective tax rate for Q1 2025 was 32.2%.
Portfolio Purchases
| Portfolio Purchase Source | 2025 | 2024 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| ($ in thousands) | Q1 | Q4 | Q3 | Q2 | Q1 | |||||
| Americas & Australia Core | $ | 165,503 | $ | 194,063 | $ | 263,613 | $ | 198,761 | $ | 174,660 |
| Americas Insolvency | 12,953 | 9,460 | 10,162 | 26,627 | 22,156 | |||||
| Europe Core | 108,390 | 220,875 | 71,507 | 127,991 | 43,997 | |||||
| Europe Insolvency | 4,856 | 8,272 | 4,696 | 25,990 | 5,004 | |||||
| Total portfolio acquisitions | $ | 291,702 | $ | 432,670 | $ | 349,978 | $ | 379,369 | $ | 245,817 |
•The Company purchased $291.7 million in portfolios of nonperforming loans in Q1 2025, an 18.7% increase compared to $245.8 million in Q1 2024.
•At the end of Q1 2025, the Company had in place estimated forward flow commitments1 of $347.0 million over the next 12 months, comprised of $258.0 million in the Americas and Australia and $89.0 million in Europe.
Credit Availability
•Total availability under the Company's credit facilities as of March 31, 2025 was $918.9 million, comprised of $537.8 million based on current ERC and subject to debt covenants, and $381.1 million of additional availability subject to borrowing base and debt covenants, including advance rates.
Conference Call Information
PRA Group, Inc. will hold a conference call today at 5:00 p.m. ET to discuss its financial and operational results. To listen to a webcast of the call and view the accompanying slides, visit https://ir.pragroup.com/events-and-presentations. To listen by phone, call 646-357-8785 in the U.S. or 1-800-836-8184 outside the U.S. and ask for the PRA Group conference call. To listen to a replay of the call, either visit the same website until May 5, 2026, or call 646-517-4150 in the U.S. or 1-888-660-6345 outside the U.S. and use access code 47549# until May 12, 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.
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,
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.
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 March 31, | ||||
|---|---|---|---|---|
| 2025 | 2024 | |||
| Revenues | ||||
| Portfolio income | $ | 240,958 | $ | 202,056 |
| Changes in expected recoveries | 27,922 | 51,674 | ||
| Total portfolio revenue | 268,880 | 253,730 | ||
| Other revenue | 739 | 1,856 | ||
| Total revenues | 269,619 | 255,586 | ||
| Operating expenses | ||||
| Compensation and benefits | 73,323 | 73,597 | ||
| Legal collection costs | 33,394 | 26,691 | ||
| Legal collection fees | 15,230 | 12,112 | ||
| Agency fees | 21,368 | 19,723 | ||
| Professional and outside services | 21,103 | 25,050 | ||
| Communication | 10,477 | 12,578 | ||
| Rent and occupancy | 3,480 | 4,144 | ||
| Depreciation, amortization and impairment | 3,769 | 2,720 | ||
| Other operating expenses | 12,898 | 12,575 | ||
| Total operating expenses | 195,042 | 189,190 | ||
| Income from operations | 74,577 | 66,396 | ||
| Other income/(expense) | ||||
| Interest expense, net | (60,970) | (52,278) | ||
| Foreign exchange (loss)/gain, net | (51) | 227 | ||
| Other | (180) | (206) | ||
| Income before income taxes | 13,376 | 14,139 | ||
| Income tax expense | 4,312 | 2,386 | ||
| Net income | 9,064 | 11,753 | ||
| Net income attributable to noncontrolling interests | 5,405 | 8,278 | ||
| Net income attributable to PRA Group, Inc. | $ | 3,659 | $ | 3,475 |
| Net income per common share attributable to PRA Group, Inc. | ||||
| Basic | $ | 0.09 | $ | 0.09 |
| Diluted | $ | 0.09 | $ | 0.09 |
| Weighted average number of shares outstanding | ||||
| Basic | 39,549 | 39,274 | ||
| Diluted | 39,688 | 39,448 |
PRA Group, Inc.
Consolidated Balance Sheets
(Amounts in thousands)
| (unaudited) | ||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| March 31,<br>2025 | December 31,<br>2024 | |||||||||||||||
| ASSETS | ||||||||||||||||
| Cash and cash equivalents | $ | 128,654 | $ | 105,938 | ||||||||||||
| Investments | 70,155 | 66,304 | ||||||||||||||
| Finance receivables, net | 4,308,334 | 4,140,742 | ||||||||||||||
| Income taxes receivable | 23,456 | 19,559 | ||||||||||||||
| Deferred tax assets, net | 80,282 | 75,134 | ||||||||||||||
| Right-of-use assets | 27,166 | 32,173 | ||||||||||||||
| Property and equipment, net | 27,036 | 29,498 | ||||||||||||||
| Goodwill | 420,715 | 396,357 | ||||||||||||||
| Other assets | 62,271 | 65,450 | ||||||||||||||
| Total assets | $ | 5,148,069 | $ | 4,931,155 | ||||||||||||
| LIABILITIES AND EQUITY | ||||||||||||||||
| Liabilities | ||||||||||||||||
| Accrued expenses and accounts payable | $ | 103,111 | $ | 141,211 | ||||||||||||
| Income taxes payable | 29,346 | 28,584 | ||||||||||||||
| Deferred tax liabilities, net | 19,663 | 16,813 | ||||||||||||||
| Lease liabilities | 30,884 | 36,437 | ||||||||||||||
| Interest-bearing deposits | 187,717 | 163,406 | ||||||||||||||
| Borrowings | 3,466,075 | 3,326,621 | ||||||||||||||
| Other liabilities | 30,755 | 24,476 | ||||||||||||||
| Total liabilities | 3,867,551 | 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, 39,652 shares issued and outstanding as of March 31, 2025; 100,000 shares authorized, 39,510 shares issued and outstanding as of December 31, 2024 | 397 | 395 | ||||||||||||||
| Additional paid-in capital | 19,816 | 17,882 | ||||||||||||||
| Retained earnings | 1,563,808 | 1,560,149 | ||||||||||||||
| Accumulated other comprehensive loss | (364,913) | (443,394) | ||||||||||||||
| Total stockholders' equity - PRA Group, Inc. | 1,219,108 | 1,135,032 | ||||||||||||||
| Noncontrolling interests | 61,410 | 58,575 | ||||||||||||||
| Total equity | 1,280,518 | 1,193,607 | ||||||||||||||
| Total liabilities and equity | $ | 5,148,069 | $ | 4,931,155 | ||||||||||||
| Select Expenses (Income)<br><br>Amounts in thousands, pre-tax | ||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Three Months Ended | ||||||||||||||||
| March 31,<br>2025 | December 31,<br>2024 | September 30,<br>2024 | June 30,<br>2024 | March 31,<br>2024 | December 31,<br>2023 | September 30,<br>2023 | June 30,<br>2023 | |||||||||
| Noncash interest expense - amortization of debt discount/premium and issuance costs | $ | 1,901 | $ | 2,241 | $ | 3,795 | $ | 2,331 | $ | 2,200 | $ | 2,177 | $ | 2,220 | $ | 2,384 |
| Change in fair value of derivatives | (2,570) | (4,686) | (5,706) | (5,628) | (5,930) | (6,734) | (6,545) | (6,960) | ||||||||
| Amortization of intangibles | 49 | 58 | 60 | 58 | 60 | 69 | 69 | 68 | ||||||||
| Impairment of real estate | 831 | — | — | — | — | 202 | 5,037 | — | ||||||||
| Stock-based compensation expense | 3,788 | 3,337 | 3,251 | 3,555 | 3,327 | 2,952 | 1,629 | 2,715 | ||||||||
| Purchase Price Multiples<br><br>as of March 31, 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 | $ | 6,677,285 | $ | 85,170 | 286% | 228% | ||||||||
| 2015 | 443,114 | 927,707 | 42,421 | 209% | 205% | |||||||||||
| 2016 | 455,767 | 1,099,096 | 54,164 | 241% | 201% | |||||||||||
| 2017 | 532,851 | 1,227,754 | 84,362 | 230% | 193% | |||||||||||
| 2018 | 653,975 | 1,547,179 | 124,687 | 237% | 202% | |||||||||||
| 2019 | 581,476 | 1,319,705 | 111,295 | 227% | 206% | |||||||||||
| 2020 | 435,668 | 961,382 | 122,030 | 221% | 213% | |||||||||||
| 2021 | 435,846 | 736,278 | 221,820 | 169% | 191% | |||||||||||
| 2022 | 406,082 | 716,692 | 282,237 | 176% | 179% | |||||||||||
| 2023 | 622,583 | 1,227,308 | 745,906 | 197% | 197% | |||||||||||
| 2024 | 823,662 | 1,734,861 | 1,495,359 | 211% | 211% | |||||||||||
| 2025 | 165,428 | 360,600 | 354,271 | 218% | 218% | |||||||||||
| Subtotal | 7,893,291 | 18,535,847 | 3,723,722 | |||||||||||||
| Americas Insolvency | ||||||||||||||||
| 1996-2014 | 1,414,476 | 2,722,777 | 9 | 192% | 155% | |||||||||||
| 2015 | 63,170 | 88,173 | 9 | 140% | 125% | |||||||||||
| 2016 | 91,442 | 118,460 | 107 | 130% | 123% | |||||||||||
| 2017 | 275,257 | 359,185 | 624 | 130% | 125% | |||||||||||
| 2018 | 97,879 | 136,770 | 325 | 140% | 127% | |||||||||||
| 2019 | 123,077 | 167,034 | 1,045 | 136% | 128% | |||||||||||
| 2020 | 62,130 | 90,988 | 8,266 | 146% | 136% | |||||||||||
| 2021 | 55,187 | 74,324 | 15,857 | 135% | 136% | |||||||||||
| 2022 | 33,442 | 47,631 | 21,343 | 142% | 139% | |||||||||||
| 2023 | 91,282 | 119,326 | 75,553 | 131% | 135% | |||||||||||
| 2024 | 68,391 | 99,321 | 82,094 | 145% | 149% | |||||||||||
| 2025 | 12,952 | 20,687 | 20,514 | 160% | 160% | |||||||||||
| Subtotal | 2,388,685 | 4,044,676 | 225,746 | |||||||||||||
| Total Americas and Australia | 10,281,976 | 22,580,523 | 3,949,468 | |||||||||||||
| Europe Core | ||||||||||||||||
| 1996-2014 | 814,553 | 2,680,717 | 385,242 | 329% | 205% | |||||||||||
| 2015 | 411,340 | 763,617 | 123,063 | 186% | 160% | |||||||||||
| 2016 | 333,090 | 586,213 | 145,522 | 176% | 167% | |||||||||||
| 2017 | 252,174 | 363,859 | 87,133 | 144% | 144% | |||||||||||
| 2018 | 341,775 | 560,664 | 166,556 | 164% | 148% | |||||||||||
| 2019 | 518,610 | 862,626 | 293,354 | 166% | 152% | |||||||||||
| 2020 | 324,119 | 589,876 | 227,352 | 182% | 172% | |||||||||||
| 2021 | 412,411 | 718,256 | 362,383 | 174% | 170% | |||||||||||
| 2022 | 359,447 | 586,653 | 404,395 | 163% | 162% | |||||||||||
| 2023 | 410,593 | 694,061 | 513,613 | 169% | 169% | |||||||||||
| 2024 | 451,786 | 815,610 | 774,971 | 181% | 180% | |||||||||||
| 2025 | 109,910 | 192,014 | 190,318 | 175% | 175% | |||||||||||
| Subtotal | 4,739,808 | 9,414,166 | 3,673,902 | |||||||||||||
| Europe Insolvency | ||||||||||||||||
| 2014 | 10,876 | 19,126 | — | 176% | 129% | |||||||||||
| 2015 | 18,973 | 29,542 | — | 156% | 139% | |||||||||||
| 2016 | 39,338 | 58,202 | 512 | 148% | 130% | |||||||||||
| 2017 | 39,235 | 52,302 | 453 | 133% | 128% | |||||||||||
| 2018 | 44,908 | 53,090 | 1,357 | 118% | 123% | |||||||||||
| 2019 | 77,218 | 114,075 | 8,122 | 148% | 130% | |||||||||||
| 2020 | 105,440 | 160,291 | 16,121 | 152% | 129% | |||||||||||
| 2021 | 53,230 | 76,576 | 18,621 | 144% | 134% | |||||||||||
| 2022 | 44,604 | 63,631 | 30,937 | 143% | 137% | |||||||||||
| 2023 | 46,558 | 65,421 | 45,502 | 141% | 138% | |||||||||||
| 2024 | 43,459 | 63,596 | 52,694 | 146% | 147% | |||||||||||
| 2025 | 4,994 | 7,546 | 7,443 | 151% | 151% | |||||||||||
| Subtotal | 528,833 | 763,398 | 181,762 | |||||||||||||
| Total Europe | 5,268,641 | 10,177,564 | 3,855,664 | |||||||||||||
| Total PRA Group | $ | 15,550,617 | $ | 32,758,087 | $ | 7,805,132 |
(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 March 31, 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 | ||||||||||
| March 31, 2025 (year-to-date) | As of March 31, 2025 | |||||||||
| 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 | ||||||||||
| 1996-2014 | $ | 11,587 | $ | 5,208 | $ | 6,052 | $ | 11,260 | $ | 28,588 |
| 2015 | 3,756 | 2,257 | (538) | 1,719 | 18,289 | |||||
| 2016 | 4,794 | 2,925 | 406 | 3,331 | 20,128 | |||||
| 2017 | 7,854 | 4,056 | 1,777 | 5,833 | 34,684 | |||||
| 2018 | 13,926 | 6,122 | 1,997 | 8,119 | 63,730 | |||||
| 2019 | 13,659 | 6,353 | (1,874) | 4,479 | 60,339 | |||||
| 2020 | 15,569 | 6,683 | (1,597) | 5,086 | 67,290 | |||||
| 2021 | 18,306 | 9,653 | (2,256) | 7,397 | 115,217 | |||||
| 2022 | 25,886 | 11,365 | (315) | 11,050 | 169,095 | |||||
| 2023 | 63,352 | 32,874 | (8,290) | 24,584 | 413,774 | |||||
| 2024 | 103,139 | 66,232 | 8,837 | 75,069 | 775,565 | |||||
| 2025 | 6,332 | 4,310 | 1,250 | 5,560 | 164,578 | |||||
| Subtotal | 288,160 | 158,038 | 5,449 | 163,487 | 1,931,277 | |||||
| Americas Insolvency | ||||||||||
| 1996-2014 | 258 | 9 | 250 | 259 | — | |||||
| 2015 | 36 | 2 | 31 | 33 | 6 | |||||
| 2016 | 57 | 6 | 12 | 18 | 95 | |||||
| 2017 | 326 | 32 | 147 | 179 | 552 | |||||
| 2018 | 351 | 14 | 127 | 141 | 302 | |||||
| 2019 | 919 | 41 | (39) | 2 | 985 | |||||
| 2020 | 3,273 | 315 | (254) | 61 | 7,780 | |||||
| 2021 | 3,145 | 500 | (58) | 442 | 14,361 | |||||
| 2022 | 2,801 | 609 | 162 | 771 | 18,374 | |||||
| 2023 | 7,215 | 2,242 | (81) | 2,161 | 61,628 | |||||
| 2024 | 5,146 | 2,947 | (1,852) | 1,095 | 58,849 | |||||
| 2025 | 173 | 171 | 76 | 247 | 13,021 | |||||
| Subtotal | 23,700 | 6,888 | (1,479) | 5,409 | 175,953 | |||||
| Total Americas and Australia | 311,860 | 164,926 | 3,970 | 168,896 | 2,107,230 | |||||
| Europe Core | ||||||||||
| 1996-2014 | 22,484 | 14,317 | 5,193 | 19,510 | 87,666 | |||||
| 2015 | 7,291 | 2,947 | 3,749 | 6,696 | 60,970 | |||||
| 2016 | 6,410 | 2,873 | 1,107 | 3,980 | 82,180 | |||||
| 2017 | 3,858 | 1,444 | (1,566) | (122) | 58,090 | |||||
| 2018 | 8,525 | 3,081 | 866 | 3,947 | 107,905 | |||||
| 2019 | 15,087 | 4,885 | 3,312 | 8,197 | 197,307 | |||||
| 2020 | 11,349 | 4,228 | 4,087 | 8,315 | 138,955 | |||||
| 2021 | 15,145 | 6,323 | 2,524 | 8,847 | 219,283 | |||||
| 2022 | 16,122 | 6,720 | (1,206) | 5,514 | 255,679 | |||||
| 2023 | 22,895 | 9,421 | 1,828 | 11,249 | 307,010 | |||||
| 2024 | 33,535 | 14,734 | 433 | 15,167 | 431,168 | |||||
| 2025 | 1,670 | 475 | 549 | 1,024 | 109,374 | |||||
| Subtotal | 164,371 | 71,448 | 20,876 | 92,324 | 2,055,587 | |||||
| Europe Insolvency | ||||||||||
| 2014 | 34 | — | 34 | 34 | — | |||||
| 2015 | 46 | — | 46 | 46 | — | |||||
| 2016 | 159 | 21 | 131 | 152 | 133 | |||||
| 2017 | 293 | 13 | 156 | 169 | 318 | |||||
| 2018 | 471 | 29 | 94 | 123 | 1,186 | |||||
| 2019 | 1,823 | 194 | 48 | 242 | 7,028 | |||||
| 2020 | 4,602 | 396 | 481 | 877 | 14,915 | |||||
| 2021 | 3,356 | 459 | 1,256 | 1,715 | 16,624 | |||||
| 2022 | 3,572 | 764 | 510 | 1,274 | 25,950 | |||||
| 2023 | 3,397 | 1,096 | 227 | 1,323 | 36,605 | |||||
| 2024 | 3,350 | 1,549 | 18 | 1,567 | 37,729 | |||||
| 2025 | 102 | 63 | 75 | 138 | 5,029 | |||||
| Subtotal | 21,205 | 4,584 | 3,076 | 7,660 | 145,517 | |||||
| Total Europe | 185,576 | 76,032 | 23,952 | 99,984 | 2,201,104 | |||||
| Total PRA Group | $ | 497,436 | $ | 240,958 | $ | 27,922 | $ | 268,880 | $ | 4,308,334 |
(1) Includes the nonperforming loan portfolios that were acquired through our business acquisitions.
(2)Non-U.S. amounts are presented using the average exchange rates during the current reporting period.
(3)Non-U.S. amounts are presented at the March 31, 2025 exchange rate.
| Cash Collections by Year, By Year of Purchase (1)<br><br>as of March 31, 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 | $ | 11.6 | $ | 6,576.0 |
| 2015 | 443.1 | — | 117.0 | 228.4 | 185.9 | 126.6 | 83.6 | 57.2 | 34.9 | 19.5 | 14.1 | 17.3 | 3.8 | 888.3 | ||||||||||||||
| 2016 | 455.8 | — | — | 138.7 | 256.5 | 194.6 | 140.6 | 105.9 | 74.2 | 38.4 | 24.9 | 24.0 | 4.8 | 1002.6 | ||||||||||||||
| 2017 | 532.9 | — | — | — | 107.3 | 278.7 | 256.5 | 192.5 | 130.0 | 76.3 | 43.8 | 39.2 | 7.9 | 1132.2 | ||||||||||||||
| 2018 | 654.0 | — | — | — | — | 122.7 | 361.9 | 337.7 | 239.9 | 146.1 | 92.9 | 75.9 | 13.9 | 1391.0 | ||||||||||||||
| 2019 | 581.5 | — | — | — | — | — | 143.8 | 349.0 | 289.8 | 177.7 | 110.3 | 77.7 | 13.7 | 1162.0 | ||||||||||||||
| 2020 | 435.7 | — | — | — | — | — | — | 132.9 | 284.3 | 192.0 | 125.8 | 87.0 | 15.6 | 837.6 | ||||||||||||||
| 2021 | 435.8 | — | — | — | — | — | — | — | 85.0 | 177.3 | 136.8 | 98.4 | 18.3 | 515.8 | ||||||||||||||
| 2022 | 406.1 | — | — | — | — | — | — | — | — | 67.7 | 195.4 | 144.7 | 25.9 | 433.7 | ||||||||||||||
| 2023 | 622.5 | — | — | — | — | — | — | — | — | — | 108.5 | 285.9 | 63.4 | 457.8 | ||||||||||||||
| 2024 | 823.7 | — | — | — | — | — | — | — | — | — | — | 145.9 | 103.1 | 249.0 | ||||||||||||||
| 2025 | 165.4 | — | — | — | — | — | — | — | — | — | — | — | 6.2 | 6.2 | ||||||||||||||
| Subtotal | 7,893.3 | 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 | 288.2 | 14,652.2 | ||||||||||||||
| 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 | 0.3 | 2,722.7 | ||||||||||||||
| 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 | 0.6 | 0.1 | 119.4 | ||||||||||||||
| 2017 | 275.3 | — | — | — | 49.1 | 97.3 | 80.9 | 58.8 | 44.0 | 20.8 | 4.9 | 2.5 | 0.3 | 358.6 | ||||||||||||||
| 2018 | 97.9 | — | — | — | — | 6.7 | 27.4 | 30.5 | 31.6 | 24.6 | 12.7 | 2.5 | 0.4 | 136.4 | ||||||||||||||
| 2019 | 123.1 | — | — | — | — | — | 13.4 | 31.4 | 39.1 | 37.8 | 28.7 | 14.6 | 0.9 | 165.9 | ||||||||||||||
| 2020 | 62.1 | — | — | — | — | — | — | 6.5 | 16.1 | 20.4 | 19.5 | 17.0 | 3.3 | 82.8 | ||||||||||||||
| 2021 | 55.2 | — | — | — | — | — | — | — | 4.6 | 17.9 | 17.5 | 15.3 | 3.1 | 58.4 | ||||||||||||||
| 2022 | 33.4 | — | — | — | — | — | — | — | — | 3.2 | 9.2 | 11.1 | 2.8 | 26.3 | ||||||||||||||
| 2023 | 91.2 | — | — | — | — | — | — | — | — | — | 9.0 | 25.1 | 7.2 | 41.3 | ||||||||||||||
| 2024 | 68.4 | — | — | — | — | — | — | — | — | — | — | 12.1 | 5.1 | 17.2 | ||||||||||||||
| 2025 | 13.0 | — | — | — | — | — | — | — | — | — | — | — | 0.2 | 0.2 | ||||||||||||||
| Subtotal | 2,388.7 | 1,949.8 | 344.2 | 249.8 | 222.5 | 207.9 | 180.9 | 155.3 | 147.4 | 129.4 | 104.2 | 102.3 | 23.7 | 3,817.4 | ||||||||||||||
| Total Americas and Australia | 10,282.0 | 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 | 311.9 | 18,469.6 | ||||||||||||||
| 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 | 22.5 | 2,010.6 | ||||||||||||||
| 2015 | 411.3 | — | 45.8 | 100.3 | 86.2 | 80.9 | 66.1 | 54.3 | 51.4 | 40.7 | 33.8 | 30.4 | 7.3 | 597.2 | ||||||||||||||
| 2016 | 333.1 | — | — | 40.4 | 78.9 | 72.6 | 58.0 | 48.3 | 46.7 | 36.9 | 29.7 | 27.4 | 6.4 | 445.3 | ||||||||||||||
| 2017 | 252.2 | — | — | — | 17.9 | 56.0 | 44.1 | 36.1 | 34.8 | 25.2 | 20.2 | 17.9 | 3.9 | 256.1 | ||||||||||||||
| 2018 | 341.8 | — | — | — | — | 24.3 | 88.7 | 71.3 | 69.1 | 50.7 | 41.6 | 37.1 | 8.5 | 391.3 | ||||||||||||||
| 2019 | 518.6 | — | — | — | — | — | 48.0 | 125.7 | 121.4 | 89.8 | 75.1 | 68.2 | 15.1 | 543.3 | ||||||||||||||
| 2020 | 324.1 | — | — | — | — | — | — | 32.3 | 91.7 | 69.0 | 56.1 | 50.1 | 11.3 | 310.5 | ||||||||||||||
| 2021 | 412.4 | — | — | — | — | — | — | — | 48.5 | 89.9 | 73.0 | 66.6 | 15.1 | 293.1 | ||||||||||||||
| 2022 | 359.4 | — | — | — | — | — | — | — | — | 33.9 | 83.8 | 74.7 | 16.1 | 208.5 | ||||||||||||||
| 2023 | 410.6 | — | — | — | — | — | — | — | — | — | 50.2 | 103.1 | 22.9 | 176.2 | ||||||||||||||
| 2024 | 451.9 | — | — | — | — | — | — | — | — | — | — | 46.3 | 33.5 | 79.8 | ||||||||||||||
| 2025 | 109.9 | — | — | — | — | — | — | — | — | — | — | — | 1.7 | 1.7 | ||||||||||||||
| Subtotal | 4,739.8 | 195.1 | 343.3 | 390.6 | 407.1 | 443.4 | 480.2 | 519.7 | 614.6 | 559.7 | 572.1 | 623.5 | 164.3 | 5,313.6 | ||||||||||||||
| 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 | — | 17.2 | ||||||||||||||
| 2015 | 19.0 | — | 3.0 | 4.4 | 5.0 | 4.8 | 3.9 | 2.9 | 1.6 | 0.6 | 0.4 | 0.2 | — | 26.8 | ||||||||||||||
| 2016 | 39.3 | — | — | 6.2 | 12.7 | 12.9 | 10.7 | 7.9 | 6.0 | 2.7 | 1.3 | 0.8 | 0.2 | 61.4 | ||||||||||||||
| 2017 | 39.2 | — | — | — | 1.2 | 7.9 | 9.2 | 9.8 | 9.4 | 6.5 | 3.8 | 1.5 | 0.3 | 49.6 | ||||||||||||||
| 2018 | 44.9 | — | — | — | — | 0.6 | 8.4 | 10.3 | 11.7 | 9.8 | 7.2 | 3.5 | 0.5 | 52.0 | ||||||||||||||
| 2019 | 77.2 | — | — | — | — | — | 5.0 | 21.1 | 23.9 | 21.0 | 17.5 | 12.9 | 1.8 | 103.2 | ||||||||||||||
| 2020 | 105.4 | — | — | — | — | — | — | 6.0 | 34.6 | 34.1 | 29.7 | 25.5 | 4.6 | 134.5 | ||||||||||||||
| 2021 | 53.2 | — | — | — | — | — | — | — | 5.5 | 14.4 | 14.7 | 15.4 | 3.4 | 53.4 | ||||||||||||||
| 2022 | 44.6 | — | — | — | — | — | — | — | — | 4.5 | 12.4 | 15.2 | 3.6 | 35.7 | ||||||||||||||
| 2023 | 46.7 | — | — | — | — | — | — | — | — | — | 4.2 | 12.7 | 3.4 | 20.3 | ||||||||||||||
| 2024 | 43.4 | — | — | — | — | — | — | — | — | — | — | 9.5 | 3.3 | 12.8 | ||||||||||||||
| 2025 | 5.0 | — | — | — | — | — | — | — | — | — | — | — | 0.1 | 0.1 | ||||||||||||||
| Subtotal | 528.8 | — | 7.3 | 14.5 | 22.1 | 28.8 | 38.7 | 58.8 | 93.0 | 93.8 | 91.4 | 97.4 | 21.2 | 567.0 | ||||||||||||||
| Total Europe | 5,268.6 | 195.1 | 350.6 | 405.1 | 429.2 | 472.2 | 518.9 | 578.5 | 707.6 | 653.5 | 663.5 | 720.9 | 185.5 | 5,880.6 | ||||||||||||||
| Total PRA Group | $ | 15,550.6 | $ | 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 | $ | 497.4 | $ | 24,350.2 |
(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. In addition, any 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 income attributable to PRA Group, Inc. plus income tax expense; plus interest expense, net; plus other expense; plus depreciation and amortization; plus impairment of real estate; plus net income attributable to noncontrolling interests; 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 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 March 31, 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 | For the Year Ended | |||
|---|---|---|---|---|
| Adjusted EBITDA Reconciliation ($ in millions) | March 31, 2025 | December 31, 2024 | ||
| Net income attributable to PRA Group, Inc. | $ | 71 | $ | 71 |
| Adjustments: | ||||
| Income tax expense | 23 | 21 | ||
| Interest expense, net | 238 | 229 | ||
| Other expense | 1 | 1 | ||
| Depreciation and amortization | 11 | 11 | ||
| Impairment of real estate | 1 | — | ||
| Net income attributable to noncontrolling interests | 15 | 18 | ||
| Recoveries collected and applied to Finance receivables, net less Changes in expected recoveries | 824 | 787 | ||
| Adjusted EBITDA | $ | 1,184 | $ | 1,138 |
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 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 displays the Company's ROATE for the periods indicated (amounts in thousands, except for ratio data):
| Balance as of Period End | Average Tangible Equity Reconciliation (1) | |||||||
|---|---|---|---|---|---|---|---|---|
| March 31, 2025 | March 31, 2024 | Q1 2025 | Q1 2024 | |||||
| Total stockholders' equity - PRA Group, Inc. | $ | 1,219,108 | $ | 1,129,326 | $ | 1,177,070 | $ | 1,148,219 |
| Less: Goodwill | 420,715 | 411,846 | 408,536 | 421,705 | ||||
| Less: Other intangible assets | 1,488 | 1,666 | 1,471 | 1,704 | ||||
| Average tangible equity | $ | 767,063 | $ | 724,810 | ||||
| ROATE (2) | ||||||||
| Q1 2025 | Q1 2024 | |||||||
| Net income attributable to PRA Group, Inc. | $ | 3,659 | $ | 3,475 | ||||
| Return on average tangible equity | 1.9% | 1.9% |
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.Amounts represent the average balances for the respective periods.
2.Based on annualized Net income attributable to PRA Group, Inc.