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 , /PRNewswire/ -- 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 $1.2 billion, an increase of 13.5% year-over-year. 1. Refers to the sum of all future projected cash collections on the Company's nonperforming loan portfolios. 2. Calculated by dividing cash receipts less operating expenses by cash receipts. Cash receipts refers to cash collections on the Company's nonperforming loan portfolios, fees and revenue recognized from the Company's class action claims recovery services. 3. A reconciliation of net income, the most directly comparable financial measure calculated and reported in accordance with GAAP, to Adjusted EBITDA can be found at the end of this press release. Three Months Ended March 31, ($ 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." "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 RevenuesThe 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. 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. 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 StatementsStatements 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 March31, 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 31,2025 December 31,2024 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 sharesissued 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) Amounts in thousands, pre-tax Three Months Ended March 31,2025 December 31,2024 September 30,2024 June 30,2024 March 31,2024 December 31,2023 September 30,2023 June 30,2023 Noncash interest expense- amortization of debtdiscount/premium andissuance costs $ 1,901 $ 2,241 $ 3,795 $ 2,331 $ 2,200 $ 2,177 $ 2,220 $ 2,384 Change in fair value ofderivatives (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-basedcompensation expense 3,788 3,337 3,251 3,555 3,327 2,952 1,629 2,715 Purchase Price Multiples as of March 31, 2025 Amounts in thousands Purchase Period Purchase Price (1)(2) Total EstimatedCollections (3) Estimated RemainingCollections (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) PortfolioIncome (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) as of March 31, 2025 Amounts in millions Cash Collections Purchase Period PurchasePrice (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 EquityReconciliation (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 % 1. Amounts represent the average balances for the respective periods. 2. Based on annualized Net income attributable to PRA Group, Inc. Investor Contact:Najim Mostamand, CFAVice President, Investor Relations757-431-7913[email protected] News Media Contact:Elizabeth KerseySenior Vice President, Communications and Public Policy(757) 641-0558[email protected] SOURCE PRA Group, Inc. WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM? 440k+ Newsrooms & Influencers 9k+ Digital Media Outlets 270k+ Journalists Opted In

PRA Group Reports First Quarter 2025 Results

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