PRA Group Reports Fourth Quarter and Full Year 2024 Results

Transformational Year Culminates in Return to Enhanced Profitability Record Portfolio Purchases of $1.4 Billion and Cash Collections Growth of 13% to $1.9 Billion Company Updates 2025 Financial Targets, Raising Portfolio Purchases Target to $1.2 Billion , /PRNewswire/ -- PRA Group, Inc. (Nasdaq: PRAA) (the "Company"), a global leader in acquiring and collecting nonperforming loans, today reported its financial results for the fourth quarter ("Q4 2024") and full year of 2024. Q4 2024 Highlights Net income attributable to PRA Group, Inc. of $18.5 million, or diluted earnings per share of $0.47. Total portfolio purchases of $432.7 million. Total cash collections of $468.1 million. Record estimated remaining collections ("ERC")1 of $7.5 billion. Cash efficiency ratio2 of 58.0%. Full Year 2024 Highlights Net income attributable to PRA Group, Inc. of $70.6 million, or diluted earnings per share of $1.79. Record total portfolio purchases of $1.4 billion. Total cash collections of $1.9 billion. Cash efficiency ratio2 of 58.8%. Adjusted EBITDA3 of $1.1 billion. 1. Refers to the sum of all future projected cash collections on the Company's nonperforming loan portfolios. 2. Calculated by dividing cash receipts less operating expenses by cash receipts. Cash receipts refers to cash collections on the Company's nonperforming loan portfolios, fees and revenue recognized from the Company's class action claims recovery services. 3. A reconciliation of net income, the most directly comparable financial measure calculated and reported in accordance with GAAP, to Adjusted EBITDA can be found at the end of this press release. Three Months Ended Dec 31, Year Ended Dec 31, ($ in thousands, except per share amounts) 2024 2023 2024 2023 Net income/(loss) attributable to PRA Group, Inc. $ 18,456 $ (8,782) $ 70,601 $ (83,477) Diluted earnings per share $ 0.47 $ (0.22) $ 1.79 $ (2.13) "2024 was a transformational year reflecting decisive action and rigorous execution, which drove significantly improved results. We expanded our senior leadership team, delivered on our cash-generating and operational initiatives in the U.S., further differentiated our European platform, and strengthened our capital structure," said Vikram Atal, president and chief executive officer. "We achieved record portfolio purchases of $1.4 billion, up 22% year-over-year, as we continued to invest with discipline and capitalize on the strong portfolio supply in the U.S., with pricing remaining attractive globally. Cash collections of $1.9 billion represented 13% year-over-year growth, as we not only benefited from recent purchases but, just as importantly, extracted additional value from our existing portfolios. With strong topline growth and expense management, we achieved net income attributable to PRA Group, Inc. of $70.6 million. The progress we have made over the last two years positions us to further optimize the platform, sustain profitable growth and drive shareholder value. As a result, we remain optimistic about the future and are updating our 2025 targets, including raising our portfolio purchases target to $1.2 billion." Cash Collections and Revenues The following table presents cash collections by quarter and by source on an as reported and constant currency-adjusted basis: Cash Collection Source 2024 2023 ($ in thousands) Q4 Q3 Q2 Q1 Q4 Americas and Australia Core $ 257,711 $ 266,977 $ 263,828 $ 256,861 $ 220,127 Americas Insolvency 24,067 26,065 26,971 25,209 24,293 Europe Core 162,564 158,242 156,739 145,933 144,361 Europe Insolvency 23,724 25,826 26,344 21,515 21,502 Total Cash Collections $ 468,066 $ 477,110 $ 473,882 $ 449,518 $ 410,283 Cash Collection Source - Constant Currency Adjusted 2024 2023 ($ in thousands) Q4 Q4 Americas and Australia Core $ 257,711 $ 212,783 Americas Insolvency 24,067 24,209 Europe Core 162,564 145,808 Europe Insolvency 23,724 22,145 Total Cash Collections $ 468,066 $ 404,945 Total cash collections in Q4 2024 increased 14.1% to $468.1 million compared to $410.3 million in the fourth quarter of 2023 ("Q4 2023"). For the full year, total cash collections increased 12.5% to $1.9 billion, compared to $1.7 billion in 2023. Three Months Ended Dec 31, Year Ended Dec 31, ($ in thousands) 2024 2023 2024 2023 Portfolio income $ 229,720 $ 194,636 $ 857,188 $ 757,128 Recoveries collected in excess of forecast $ 31,879 $ 17,856 $ 156,135 $ 65,132 Changes in expected future recoveries 23,381 4,898 84,733 (35,998) Changes in expected recoveries $ 55,260 $ 22,754 $ 240,868 $ 29,134 Total portfolio revenue $ 284,980 $ 217,390 $ 1,098,056 $ 786,262 Total portfolio revenue in Q4 2024 increased 31.1% to $285.0 million, compared to $217.4 million in Q4 2023. For the full year, total portfolio revenue increased 39.7% to $1.1 billion, compared to $786.3 million in 2023. Expenses Operating expenses in Q4 2024 increased 13.2% to $199.1 million, compared to $175.9 million in Q4 2023. Legal collection costs increased $11.1 million, primarily due to increased investments in our U.S. legal collections channel to drive future cash collections growth. Legal collection fees increased $6.4 million, primarily due to higher external legal collections in our U.S. Core portfolio. For the full year, operating expenses increased by 10.4% to $774.8 million, compared to $702.1 million in 2023. For the full year, interest expense, net increased by 26.2% to $229.3 million, compared to $181.7 million in 2023, primarily reflecting higher debt balances to support portfolio investments. The effective tax rate for the full year was 19.2%. Portfolio Purchases Portfolio Purchase Source 2024 2023 ($ in thousands) Q4 Q3 Q2 Q1 Q4 Americas and Australia Core $ 194,063 $ 263,613 $ 198,761 $ 174,660 $ 143,052 Americas Insolvency 9,460 10,162 26,627 22,156 18,608 Europe Core 220,875 71,507 127,991 43,997 110,780 Europe Insolvency 8,272 4,696 25,990 5,004 12,476 Total Portfolio Purchases $ 432,670 $ 349,978 $ 379,369 $ 245,817 $ 284,916 The Company purchased $432.7 million in portfolios of nonperforming loans in Q4 2024 and $1.4 billion in 2024, the latter of which represented a Company record. At the end of Q4 2024, the Company had in place estimated forward flow commitments1 of $498.9 million over the next 12 months, comprised of $403.1 million in the Americas and Australia and $95.8 million in Europe. Credit Availability Total availability under the Company's credit facilities as of December 31, 2024 was $1.0 billion, comprised of $564.3 million based on current ERC and subject to debt covenants, and $462.0 million of additional availability subject to borrowing base and debt covenants, including advance rates. Financial and Operational Targets for 2025 The Company has updated its financial and operational targets for the full year 2025: $1.2 billion of portfolio investments High single-digit cash collections growth 60%+ cash efficiency ratio ~12% return on average tangible equity2 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. 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. These targets exclude the impact of the Company exercising its right to sell its equity interest in RCB Investimentos S.A., the servicing company for the Company's nonperforming loans in Brazil. This transaction does not impact the Company's ownership of any portfolios in Brazil, and the Company does not expect this to impact its existing operations or future portfolio investment opportunities in this market. 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 February 19, 2026, or call 646-517-4150 in the U.S. or 1-888-660-6345 outside the U.S. and use access code 21638# until February 26, 2025. About PRA Group 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. Consolidated Income Statements (Amounts in thousands, except per share amounts) (unaudited) (unaudited) Three Months Ended December 31, Year Ended December 31, 2024 2023 2024 2023 Revenues: Portfolio income $ 229,720 $ 194,636 $ 857,188 $ 757,128 Changes in expected recoveries 55,260 22,754 240,868 29,134 Total portfolio revenue 284,980 217,390 1,098,056 786,262 Other revenue 8,252 4,028 16,468 16,292 Total revenues 293,232 221,418 1,114,524 802,554 Operating expenses: Compensation and benefits 74,959 71,070 298,903 288,778 Legal collection costs 34,036 22,903 124,782 89,131 Legal collection fees 16,270 9,844 56,623 38,072 Agency fees 21,583 20,208 83,334 74,699 Professional and outside services 19,592 20,555 83,218 82,619 Communication 9,230 9,905 43,433 40,430 Rent and occupancy 4,474 4,126 16,929 17,319 Depreciation, amortization and impairment 2,966 3,234 10,792 18,615 Other operating expenses 15,986 14,044 56,778 52,399 Total operating expenses 199,096 175,889 774,792 702,062 Income from operations 94,136 45,529 339,732 100,492 Other income and (expense): Interest expense, net (60,574) (50,946) (229,267) (181,724) Foreign exchange gain/(loss), net (147) (695) (9) 289 Other (15) (564) (851) (1,944) Income/(loss) before income taxes 33,400 (6,676) 109,605 (82,887) Income tax expense/(benefit) 10,616 (816) 21,032 (16,133) Net Income/(loss) 22,784 (5,860) 88,573 (66,754) Adjustment for net income attributable to noncontrollinginterests 4,328 2,922 17,972 16,723 Net income/(loss) attributableto PRA Group, Inc. $ 18,456 $ (8,782) $ 70,601 $ (83,477) Net income/(loss) per common share attributableto PRA Group, Inc.: Basic $ 0.47 $ (0.22) $ 1.79 $ (2.13) Diluted $ 0.47 $ (0.22) $ 1.79 $ (2.13) Weighted average number of shares outstanding: Basic 39,468 39,245 39,382 39,177 Diluted 39,681 39,245 39,542 39,177 PRA Group, Inc. Consolidated Balance Sheets (Amounts in thousands) (unaudited) December 31, 2024 December 31, 2023 Assets Cash and cash equivalents $ 105,938 $ 112,528 Investments 66,304 72,404 Finance receivables, net 4,140,742 3,656,598 Income taxes receivable 19,559 27,713 Deferred tax assets, net 75,134 74,694 Right-of-use assets 32,173 45,877 Property and equipment, net 29,498 36,450 Goodwill 396,357 431,564 Other assets 65,450 67,526 Total assets $ 4,931,155 $ 4,525,354 Liabilities and Equity Liabilities: Accrued expenses and accounts payable $ 141,211 $ 138,218 Income taxes payable 28,584 17,912 Deferred tax liabilities, net 16,813 17,051 Lease liabilities 36,437 50,300 Interest-bearing deposits 163,406 115,589 Borrowings 3,326,621 2,914,270 Other liabilities 24,476 32,638 Total liabilities 3,737,548 3,285,978 Equity: Preferred stock, $0.01 par value, 2,000 shares authorized, no shares issuedand outstanding — — Common stock, $0.01 par value, 100,000 shares authorized, 39,510 sharesissued and outstanding as of December 31, 2024; 100,000 shares authorized,39,247 shares issued and outstanding as of December 31, 2023 395 392 Additional paid-in capital 17,882 7,071 Retained earnings 1,560,149 1,489,548 Accumulated other comprehensive loss (443,394) (329,899) Total stockholders' equity - PRA Group, Inc. 1,135,032 1,167,112 Noncontrolling interests 58,575 72,264 Total equity 1,193,607 1,239,376 Total liabilities and equity $ 4,931,155 $ 4,525,354 Select Expenses (Income) Amounts in thousands, pre-tax Three Months Ended December 31,2024 September 30,2024 June 30,2024 March 31,2024 December 31,2023 September 30,2023 June 30,2023 March 31,2023 Noncash interest expense - amortization of debt discount/premium and issuance costs 2,241 3,795 2,331 2,200 2,177 2,220 2,384 2,441 Change in fair value ofderivatives (4,686) (5,706) (5,628) (5,930) (6,734) (6,545) (6,960) (5,470) Amortization ofintangibles 58 60 58 60 69 69 68 66 Impairment of real estate — — — — 202 5,037 — — Stock-based compensation expense 3,337 3,251 3,555 3,327 2,952 1,629 2,715 3,799 Purchase Price Multiples as of December 31, 2024 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 $ 6,666,570 $ 86,032 285 % 228 % 2015 443,114 927,658 46,128 209 % 205 % 2016 455,767 1,098,337 57,944 241 % 201 % 2017 532,851 1,224,240 88,789 230 % 193 % 2018 653,975 1,541,030 132,482 236 % 202 % 2019 581,476 1,318,780 123,568 227 % 206 % 2020 435,668 961,295 137,424 221 % 213 % 2021 435,846 736,453 237,332 169 % 191 % 2022 406,082 711,153 299,192 175 % 179 % 2023 622,583 1,222,214 800,016 196 % 197 % 2024 823,662 1,738,041 1,593,881 211 % 211 % Subtotal 7,727,863 18,145,771 3,602,788 Americas Insolvency 1996-2014 1,414,476 2,722,528 18 192 % 155 % 2015 63,170 88,142 14 140 % 125 % 2016 91,442 118,446 152 130 % 123 % 2017 275,257 359,007 773 130 % 125 % 2018 97,879 136,633 539 140 % 127 % 2019 123,077 167,054 1,987 136 % 128 % 2020 62,130 91,244 11,795 147 % 136 % 2021 55,187 74,384 19,064 135 % 136 % 2022 33,442 47,469 23,982 142 % 139 % 2023 91,282 119,560 83,007 131 % 135 % 2024 68,391 101,716 89,633 149 % 149 % Subtotal 2,375,733 4,026,183 230,964 Total Americas and Australia 10,103,596 22,171,954 3,833,752 Europe Core 2012-2014 814,553 2,669,874 379,300 328 % 205 % 2015 411,340 758,443 120,732 184 % 160 % 2016 333,090 583,379 140,510 175 % 167 % 2017 252,174 366,781 89,512 145 % 144 % 2018 341,775 561,190 168,307 164 % 148 % 2019 518,610 856,928 290,123 165 % 152 % 2020 324,119 581,309 219,274 179 % 172 % 2021 412,411 713,243 352,787 173 % 170 % 2022 359,447 587,410 398,171 163 % 162 % 2023 410,593 693,410 510,556 169 % 169 % 2024 451,786 815,403 770,745 180 % 180 % Subtotal 4,629,898 9,187,370 3,440,017 Europe Insolvency 2014 10,876 19,087 — 175 % 129 % 2015 18,973 29,488 — 155 % 139 % 2016 39,338 58,074 517 148 % 130 % 2017 39,235 52,129 571 133 % 128 % 2018 44,908 52,994 1,685 118 % 123 % 2019 77,218 114,028 9,631 148 % 130 % 2020 105,440 159,773 19,710 152 % 129 % 2021 53,230 75,089 19,991 141 % 134 % 2022 44,604 63,240 33,069 142 % 137 % 2023 46,558 65,196 47,203 140 % 138 % 2024 43,459 63,717 54,480 147 % 147 % Subtotal 523,839 752,815 186,857 Total Europe 5,153,737 9,940,185 3,626,874 Total PRA Group $ 15,257,333 $ 32,112,139 $ 7,460,626 (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 December 31, 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 Year Ended December 31, 2024 As of December 31, 2024 Purchase Period Cash Collections (2) PortfolioIncome (2) Changes in Expected Recoveries (2) Total Portfolio Revenue (2) Net Finance Receivables (3) Americas and Australia Core 1996-2014 $ 49,430 $ 20,182 $ 32,247 $ 52,429 $ 28,916 2015 17,254 7,416 15,087 22,503 20,325 2016 23,996 12,863 10,866 23,729 21,595 2017 39,179 17,745 15,041 32,786 36,691 2018 75,887 27,489 34,009 61,498 69,363 2019 77,702 31,575 17,210 48,785 69,098 2020 87,038 34,766 9,314 44,080 77,729 2021 98,398 49,853 (11,413) 38,440 124,903 2022 144,656 61,438 (4,581) 56,857 181,937 2023 285,853 162,745 (1,541) 161,204 450,432 2024 145,984 116,143 13,780 129,923 807,358 Subtotal 1,045,377 542,215 130,019 672,234 1,888,347 Americas Insolvency 1996-2014 1,269 170 1,104 1,274 — 2015 192 28 134 162 9 2016 560 39 429 468 133 2017 2,516 192 2,016 2,208 699 2018 2,503 117 1,043 1,160 511 2019 14,648 909 (1,651) (742) 1,903 2020 16,984 2,393 565 2,958 10,991 2021 15,316 2,942 612 3,554 17,067 2022 11,137 3,042 661 3,703 20,404 2023 25,104 10,831 (1,272) 9,559 66,685 2024 12,083 7,241 445 7,686 63,027 Subtotal 102,312 27,904 4,086 31,990 181,429 Total Americas and Australia 1,147,689 570,119 134,105 704,224 2,069,776 Europe Core 2012-2014 101,686 61,342 30,572 91,914 86,106 2015 30,431 13,316 6,116 19,432 59,318 2016 27,447 12,746 4,522 17,268 79,412 2017 17,868 6,600 (133) 6,467 59,637 2018 37,136 13,543 5,850 19,393 108,195 2019 68,188 21,935 11,709 33,644 195,751 2020 50,148 18,667 10,654 29,321 134,983 2021 66,645 28,048 8,116 36,164 213,432 2022 74,718 29,894 4,613 34,507 251,662 2023 103,129 42,584 4,380 46,964 303,553 2024 46,082 19,035 6,759 25,794 429,327 Subtotal 623,478 267,710 93,158 360,868 1,921,376 Europe Insolvency 2014 181 — 181 181 — 2015 193 2 164 166 — 2016 794 109 401 510 134 2017 1,542 115 121 236 428 2018 3,462 246 331 577 1,491 2019 12,916 1,326 1,717 3,043 8,378 2020 25,549 2,674 3,403 6,077 18,148 2021 15,376 2,580 2,190 4,770 17,754 2022 15,198 3,753 2,803 6,556 27,385 2023 12,744 5,001 1,068 6,069 37,503 2024 9,454 3,553 1,226 4,779 38,369 Subtotal 97,409 19,359 13,605 32,964 149,590 Total Europe 720,887 287,069 106,763 393,832 2,070,966 Total PRA Group $ 1,868,576 $ 857,188 $ 240,868 $ 1,098,056 $ 4,140,742 (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 year. (3) Non-U.S. amounts are presented at the December 31, 2024 exchange rate. Cash Collections by Year, By Year of Purchase (1) as of December 31, 2024 Amounts in millions Cash Collections Purchase Period Purchase Price (2)(3) 1996-2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 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 $ 6,564.4 2015 443.1 — 117.0 228.4 185.9 126.6 83.6 57.2 34.9 19.5 14.1 17.3 884.5 2016 455.8 — — 138.7 256.5 194.6 140.6 105.9 74.2 38.4 24.9 24.0 997.8 2017 532.9 — — — 107.3 278.7 256.5 192.5 130.0 76.3 43.8 39.2 1124.3 2018 654.0 — — — — 122.7 361.9 337.7 239.9 146.1 92.9 75.9 1377.1 2019 581.5 — — — — — 143.8 349.0 289.8 177.7 110.3 77.7 1148.3 2020 435.7 — — — — — — 132.9 284.3 192.0 125.8 87.0 822.0 2021 435.8 — — — — — — — 85.0 177.3 136.8 98.4 497.5 2022 406.1 — — — — — — — — 67.7 195.4 144.7 407.8 2023 622.5 — — — — — — — — — 108.5 285.9 394.4 2024 823.7 — — — — — — — — — — 145.9 145.9 Subtotal 7,727.9 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 14,364.0 Americas Insolvency 1996-2014 1,414.5 1,949.8 340.8 213.0 122.9 59.1 22.6 5.8 3.3 2.3 1.5 1.3 2,722.4 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 0.6 119.3 2017 275.3 — — — 49.1 97.3 80.9 58.8 44.0 20.8 4.9 2.5 358.3 2018 97.9 — — — — 6.7 27.4 30.5 31.6 24.6 12.7 2.5 136.0 2019 123.1 — — — — — 13.4 31.4 39.1 37.8 28.7 14.6 165.0 2020 62.1 — — — — — — 6.5 16.1 20.4 19.5 17.0 79.5 2021 55.2 — — — — — — — 4.6 17.9 17.5 15.3 55.3 2022 33.4 — — — — — — — — 3.2 9.2 11.1 23.5 2023 91.2 — — — — — — — — — 9.0 25.1 34.1 2024 68.4 — — — — — — — — — — 12.1 12.1 Subtotal 2,375.7 1,949.8 344.2 249.8 222.5 207.9 180.9 155.3 147.4 129.4 104.2 102.3 3,793.7 Total Americas and Australia 10,103.6 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 18,157.7 Europe Core 2012-2014 814.5 195.1 297.5 249.9 224.1 209.6 175.3 151.7 151.0 123.6 108.6 101.7 1,988.1 2015 411.3 — 45.8 100.3 86.2 80.9 66.1 54.3 51.4 40.7 33.8 30.4 589.9 2016 333.1 — — 40.4 78.9 72.6 58.0 48.3 46.7 36.9 29.7 27.4 438.9 2017 252.2 — — — 17.9 56.0 44.1 36.1 34.8 25.2 20.2 17.9 252.2 2018 341.8 — — — — 24.3 88.7 71.3 69.1 50.7 41.6 37.1 382.8 2019 518.6 — — — — — 48.0 125.7 121.4 89.8 75.1 68.2 528.2 2020 324.1 — — — — — — 32.3 91.7 69.0 56.1 50.1 299.2 2021 412.4 — — — — — — — 48.5 89.9 73.0 66.6 278.0 2022 359.4 — — — — — — — — 33.9 83.8 74.7 192.4 2023 410.6 — — — — — — — — — 50.2 103.1 153.3 2024 451.9 — — — — — — — — — — 46.3 46.3 Subtotal 4,629.9 195.1 343.3 390.6 407.1 443.4 480.2 519.7 614.6 559.7 572.1 623.5 5,149.3 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 61.2 2017 39.2 — — — 1.2 7.9 9.2 9.8 9.4 6.5 3.8 1.5 49.3 2018 44.9 — — — — 0.6 8.4 10.3 11.7 9.8 7.2 3.5 51.5 2019 77.2 — — — — — 5.0 21.1 23.9 21.0 17.5 12.9 101.4 2020 105.4 — — — — — — 6.0 34.6 34.1 29.7 25.5 129.9 2021 53.2 — — — — — — — 5.5 14.4 14.7 15.4 50.0 2022 44.6 — — — — — — — — 4.5 12.4 15.2 32.1 2023 46.7 — — — — — — — — — 4.2 12.7 16.9 2024 43.4 — — — — — — — — — — 9.5 9.5 Subtotal 523.8 — 7.3 14.5 22.1 28.8 38.7 58.8 93.0 93.8 91.4 97.4 545.8 Total Europe 5,153.7 195.1 350.6 405.1 429.2 472.2 518.9 578.5 707.6 653.5 663.5 720.9 5,695.1 Total PRA Group $ 15,257.3 $ 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 $ 23,852.8 (1) Non-U.S. amounts are presented using the average exchange rates during the respective year. (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 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 years ended December 31, 2024 and 2023. The calculation of Adjusted EBITDA below may not be comparable to the calculation of similarly titled measures reported by other companies. Adjusted EBITDA for PRA Group ($ in millions) 2024 2023 Net income/(loss) attributable to PRA Group, Inc. $ 71 $ (83) Adjustments: Income tax expense/(benefit) 21 (16) Interest expense, net 229 181 Other expense 1 2 Depreciation and amortization 11 13 Impairment of real estate — 5 Net income attributable to noncontrolling interests 18 17 Recoveries collected and applied to Finance receivables, net less Changesin expected recoveries 787 888 Adjusted EBITDA $ 1,138 $ 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 is defined as average Total stockholders' equity - PRA Group, Inc. less average goodwill and average other intangible assets. ROATE is calculated by dividing Net income/(loss) attributable to PRA Group, Inc. by average tangible equity. 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 average tangible equity for the years indicated (amounts in thousands, except for ratio data): Balance as of Year End Average Balance 2024 2023 2022 2024 2023 2022 Total stockholders' equity - PRA Group, Inc. $ 1,135,032 $ 1,167,112 $ 1,227,661 $ 1,159,163 $ 1,166,846 $ 1,231,546 Less: Goodwill 396,357 431,564 435,921 415,685 423,110 448,214 Less: Other intangible assets 1,453 1,742 1,847 1,616 1,786 2,017 Average tangible equity $ 741,862 $ 741,950 $ 781,315 Net income/(loss) attributable to PRA Group, Inc. $ 70,601 $ (83,477) $ 117,147 Return on average tangibleequity 9.5 % (11.3) % 15.0 % Investor Contact:Najim Mostamand, CFAVice President, Investor Relations(757) 431-7913[email protected] News Media Contact:Elizabeth KerseySenior Vice President, Communications and Public Policy(757) 641-0558[email protected] SOURCE PRA Group, Inc. 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PRA Group Reports Fourth Quarter and Full Year 2024 Results

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