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PRA Group Reports Fourth Quarter and Full Year 2025 Results

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PRA Group Inc 21,075 $ PRA Group Inc Chart +3,26%
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NORFOLK, Va., Feb. 26, 2026

Company Achieves 13% Cash Collections Growth Year-over-Year and $1.2 Billion of Purchases for Full Year 2025 

Net Loss Attributable to PRA Group, Inc. of $305 Million for Full Year 2025, Primarily Driven by a Non-Cash Goodwill Impairment Charge of $413 Million in Q3 2025; Adjusted Net Income Attributable to PRA of $73 million for Full Year 2025

Continued to Improve U.S. Operations and Build on the Strong Track Record of our European Business

NORFOLK, Va., Feb. 26, 2026 /PRNewswire/ -- PRA Group, Inc. (Nasdaq: PRAA) (the "Company" or "PRA"), a global leader in acquiring and collecting nonperforming loan portfolios, today reported its financial results for the fourth quarter ("Q4 2025") and full year of 2025.  

Q4 2025 Highlights

  • Total cash collections of $531.7 million, up 13.6%.
  • Cash efficiency ratio1 of 61.4%.
  • Net income attributable to PRA Group, Inc. of $56.5 million, or diluted earnings per share of $1.46.
  • Total portfolio purchases of $314.8 million.
  • Record estimated remaining collections ("ERC")2 of $8.6 billion.

Full Year 2025 Highlights
  • Total cash collections of $2.1 billion, up 12.8%.
  • Cash efficiency ratio1 of 41.8%. Excluding the $412.6 million non-cash goodwill impairment charge recorded in Q3 2025, adjusted cash efficiency ratio1 of 61.3%.
  • Net loss attributable to PRA Group, Inc. of $305.1 million, or diluted earnings per share of $(7.79).
  • Excluding the goodwill impairment charge and gain from the sale of the Company's equity interest in RCB (the servicing company for its nonperforming loan investments in Brazil), adjusted net income attributable to PRA 3 of $72.6 million, or adjusted diluted earnings per share4 of $1.84.
  • Total portfolio purchases of $1.2 billion, representing the third highest level of investments in Company history.
  • Adjusted EBITDA 5 of $1.3 billion, up 16%.
1. Cash efficiency ratio is calculated by dividing cash receipts less operating expenses by cash receipts. Cash receipts refers to cash collections on the Company's nonperforming loan portfolios, fees and revenue recognized from the Company's class action claims recovery services. Adjusted cash efficiency ratio is calculated by dividing cash receipts less adjusted operating expenses by cash receipts. Calculation of the adjusted cash efficiency ratio can be found at the end of this press release.
2. Refers to the sum of all future projected cash collections on the Company's nonperforming loan portfolios.
3. A reconciliation of net income/(loss) attributable to PRA Group, Inc. to adjusted net income/(loss) attributable to PRA can be found at the end of this press release.
4. A reconciliation of diluted earnings per share to adjusted diluted earnings per share can be found at the end of this press release.
5. A reconciliation of net income/(loss) attributable to PRA Group, Inc. to Adjusted EBITDA can be found at the end of this press release.

"PRA made significant progress in 2025. Since stepping into the CEO role in June, we have further strengthened our U.S. operational platform, built on the track record of our European franchise, and developed our longer-term strategy and key financial goals," said Martin Sjolund, president and chief executive officer. "In the U.S., we successfully executed against our near-term strategic priorities, including driving cost savings, reorganizing our operations, creating a new talent hub, and implementing our IT modernization roadmap."

"Our adjusted non-GAAP results demonstrate a stable earnings platform, underpinned by a strong and well-diversified capital structure with moderate leverage that has declined in recent quarters. During the fourth quarter, we repurchased $10 million of our shares, bringing the total amount repurchased in 2025 to $20 million, in line with our capital allocation strategy to drive shareholder value."

"Overall, we are moving in the right direction as we continue to improve our financial profile and focus on delivering higher returns while reducing leverage. Looking ahead, we are introducing our PRA 3.0 strategy to evolve the Company into a high-performing, technology-enabled global allocator of capital. We believe that the actions we are taking will drive stronger financial results and unlock meaningful long-term value for our shareholders."

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)
Q4
Q3
Q2
Q1
Q4
U.S. Core
$       249,322
$       258,277
$       253,856
$       240,467
$       208,624
U.S. Insolvency
20,223
21,131
21,175
20,589
21,722
Europe Core
188,277
185,910
185,652
164,371
162,564
Europe Insolvency
19,166
22,658
24,609
21,205
23,724
Other markets (1)
54,670
54,268
50,996
50,804
$         51,432
Total Cash Collections
$       531,658
$       542,244
$       536,288
$       497,436
$       468,066

































Cash Collection Source -









Constant Currency Adjusted                                                            
2025






2024
($ in thousands)
Q4






Q4
U.S. Core
$       249,322






$       208,623
U.S. Insolvency
20,223






21,722
Europe Core
188,277






174,587
Europe Insolvency
19,166






24,680
Other markets (1)
54,670






$         54,822
Total Cash Collections
$       531,658






$       484,434













1. Reflects total cash collections in South America, Canada and Australia.
  • Total cash collections in Q4 2025 increased 13.6% to $531.7 million compared to $468.1 million in the fourth quarter of 2024 ("Q4 2024"). For the full year, total cash collections increased 12.8% to $2.1 billion, compared to $1.9 billion in 2024. The increase in both periods was driven by the continued increase in cash generation from our investments in the U.S. legal collections channel as well as strong performance in our European business.









Three Months Ended Dec 31,
Year Ended Dec 31,
($ in thousands)
2025
2024
2025
2024
Portfolio income
$          262,830
$          229,720
$     1,013,271
$         857,188
Recoveries collected in excess of forecast                                                            
36,543
31,879
120,696
156,135
Changes in expected future recoveries
27,336
23,381
55,755
84,733
Changes in expected recoveries
63,879
55,260
176,451
240,868
Total portfolio revenue
$          326,709
$          284,980
$     1,189,722
$      1,098,056









  • Portfolio income in Q4 2025 increased 14.4% to $262.8 million, compared to $229.7 million in Q4 2024. For the full year, total portfolio income increased 18.2% to $1.0 billion, compared to $857.2 million in 2024. The increase in both periods was driven by strong recent purchases at improved returns.
  • Changes in expected recoveries in Q4 2025 increased to $63.9 million, compared to $55.3 million in Q4 2024. For the full year, Changes in expected recoveries decreased to $176.5 million, compared to $240.9 million in 2024.
  • Total portfolio revenue in Q4 2025 increased 14.6% to $326.7 million, compared to $285.0 million in Q4 2024. For the full year, total portfolio revenue increased 8.3% to $1.2 billion, compared to $1.1 billion in 2024.
Expenses
  • Operating expenses in Q4 2025 increased 4.4% to $207.8 million, compared to $199.1 million in Q4 2024.
  • For the full year, operating expenses increased by 59.0% to $1.2 billion, compared to $774.8 million in 2024. Excluding the goodwill impairment charge in Q3 2025, adjusted operating expenses1 increased 5.8% to $819.5 million, compared to $774.8 million in 2024. The increase was primarily due to continued investments in our U.S. legal collections channel to drive future cash collections growth.
  • For the full year, interest expense, net increased by 9.8% to $251.8 million, compared to $229.3 million in 2024, primarily reflecting higher debt balances to support portfolio investments.
  • The effective tax rate for the full year was (19.2)%.

1.

 A reconciliation of Total operating expenses to Adjusted operating expenses can be found at the end of this press release.

Portfolio Purchases











Portfolio Purchase Source                                                            
2025
2024
($ in thousands)
Q4
Q3
Q2
Q1
Q4
U.S. Core
$       102,254
$         119,672
$         160,193
$         148,903
$         161,167
U.S. Insolvency
10,088
14,809
22,134
12,059
9,460
Europe Core
152,375
95,239
142,465
108,390
220,875
Europe Insolvency
4,758
5,934
4,757
4,856
8,272
Other markets (2)
45,326
$           19,838
$           16,956
$           17,494
$           32,896
Total Portfolio Purchases
$       314,801
$         255,492
$         346,505
$         291,702
$         432,670











  • The Company purchased $314.8 million of nonperforming loan portfolios in Q4 2025 and $1.2 billion in 2025.
  • At the end of Q4 2025, the Company had in place estimated forward flow commitments3 of $378.0 million over the next 12 months, comprised of $167.4 million in the U.S, $194.8 million in Europe, and $15.8 million in other markets.
2. Reflects total portfolio purchases in South America, Canada and Australia.
3. 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 December 31, 2025 was $1.1 billion, comprised of $825.2 million based on current ERC and subject to debt covenants, and $274.3 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 February 26, 2027, or call 646-517-4150 in the U.S. or 1-888-660-6345 outside the U.S. and use access code 83300# until March 5, 2026.  

About PRA Group
As a global leader in acquiring and collecting nonperforming loan portfolios, 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'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'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 PRA's expectations will prove to be correct. Forward-looking statements involve risks and uncertainties, some of which are not currently known to PRA. 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's filings with the Securities and Exchange Commission ("SEC"), including PRA'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's website and contain a detailed discussion of PRA'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 SEC or otherwise. Except as required by law, PRA assumes no obligation to publicly update or revise its forward-looking statements contained herein to reflect any change in PRA'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)




Three Months Ended
December 31,
Year Ended December 31,

2025
2024
2025
2024
Revenues






Portfolio income $              262,830
$             229,720
$           1,013,271
$               857,188
Changes in expected recoveries 63,879
55,260
176,451
240,868
        Total portfolio revenue 326,709
284,980
1,189,722
1,098,056
Other revenue 6,681
8,252
12,115
16,468
Total revenues 333,390
293,232
1,201,837
1,114,524
Operating expenses






Compensation and benefits 73,381
74,959
296,665
298,903
Legal collection costs 43,906
34,036
161,647
124,782
Legal collection fees 16,906
16,270
64,319
56,623
Agency fees 23,812
21,583
92,424
83,334
Professional and outside services 20,164
19,592
84,389
83,218
Communication 8,433
9,230
36,704
43,433
Rent and occupancy 3,879
4,474
14,517
16,929
Depreciation, amortization and impairment of long-lived assets 1,728
2,966
10,439
10,792
Goodwill impairment —
—
412,611
—
Other operating expenses 15,595
15,986
58,395
56,778
Total operating expenses 207,804
199,096
1,232,110
774,792
Income/(loss) from operations 125,586
94,136
(30,273)
339,732
Other income and (expense)






Interest expense, net (64,370)
(60,574)
(251,788)
(229,267)
Gain on sale of equity method investment —
—
38,403
—
Other 646
(162)
419
(860)
Income/(loss) before income taxes 61,862
33,400
(243,239)
109,605
Income tax expense 2,647
10,616
46,735
21,032
Net Income/(loss) 59,215
22,784
(289,974)
88,573
Net income attributable to noncontrolling interests 2,687
4,328
15,168
17,972
Net income/(loss) attributable to PRA Group, Inc. $                 56,528
$                18,456
$             (305,142)
$                 70,601
Net income/(loss) per common share attributable to PRA Group, Inc.






Basic $                     1.46
$                    0.47
$                   (7.79)
$                     1.79
Diluted $                     1.46
$                    0.47
$                   (7.79)
$                     1.79
Weighted average number of shares outstanding






Basic 38,741
39,468
39,173
39,382
Diluted 38,845
39,681
39,173
39,542

 
PRA Group, Inc.

Consolidated Balance Sheets

(Amounts in thousands)

 

December 31, 2025
December 31, 2024
ASSETS


Cash and cash equivalents $                    104,409
$                    105,938
Investments 66,628
66,304
Finance receivables, net 4,688,024
4,140,742
Income taxes receivable 17,702
19,559
Deferred tax assets, net 76,955
75,134
Right-of-use assets 29,206
32,173
Property and equipment, net 24,886
29,498
Goodwill 26,871
396,357
Other assets 68,641
65,450
Total assets $                 5,103,322
$                 4,931,155
LIABILITIES AND EQUITY


Liabilities


Accrued expenses and accounts payable $                    131,812
$                    141,211
Income taxes payable 29,845
28,584
Deferred tax liabilities, net 17,064
16,813
Lease liabilities 32,160
36,437
Interest-bearing deposits 106,148
163,406
Borrowings 3,697,338
3,326,621
Other liabilities 48,990
24,476
Total liabilities 4,063,357
3,737,548
Equity


Preferred stock, $0.01 par value, 2,000 shares authorized, no shares issued and outstanding                          —
—
Common stock, $0.01par value, 100,000 shares authorized, 38,453 shares issued and
outstanding as of December 31, 2025; 100,000 shares authorized, 39,510 shares issued and
outstanding as of December 31, 2024		 385
395
Additional paid-in capital 11,474
17,882
Retained earnings 1,255,007
1,560,149
Accumulated other comprehensive loss (287,015)
(443,394)
Total stockholders' equity - PRA Group, Inc. 979,851
1,135,032
Noncontrolling interests 60,114
58,575
Total equity 1,039,965
1,193,607
Total liabilities and equity $                 5,103,322
$                 4,931,155

 
Purchase Price Multiples

as of December 31, 2025

Amounts in thousands, except percentages
Purchase Period Purchase Price (1)(2) Total Estimated
Collections (3)		 Estimated
Remaining
Collections (4)		 Current Purchase
Price Multiple		 Original Purchase
Price Multiple (5)
U.S. Core




1996-2015 $                  2,736,875 $              7,502,110 $                 102,171 274 % 224 %
2016 400,545 819,859 35,429 205 % 195 %
2017 511,902 1,168,721 73,695 228 % 193 %
2018 604,669 1,373,598 101,701 227 % 199 %
2019 432,222 1,017,197 77,296 235 % 209 %
2020 415,384 940,632 97,908 226 % 215 %
2021 339,885 605,109 130,492 178 % 191 %
2022 275,433 435,295 151,728 158 % 164 %
2023 506,319 956,536 495,435 189 % 191 %
2024 727,672 1,627,822 1,133,172 224 % 211 %
2025 531,021 1,144,436 1,038,346 216 % 216 %
Subtotal 7,481,927 17,591,315 3,437,373

U.S. Insolvency



1996-2015 1,472,385 2,806,455 1 191 % 154 %
2016 67,454 85,643 33 127 % 124 %
2017 275,257 359,492 257 131 % 125 %
2018 97,879 137,203 94 140 % 127 %
2019 120,845 164,082 289 136 % 128 %
2020 62,130 90,166 1,993 145 % 136 %
2021 54,898 74,234 7,566 135 % 136 %
2022 33,442 47,906 13,948 143 % 139 %
2023 61,242 80,354 42,982 131 % 136 %
2024 68,168 99,515 64,368 146 % 149 %
2025 59,091 94,574 89,396 160 % 160 %
Subtotal 2,372,791 4,039,624 220,927

Total U.S. 9,854,718 21,630,939 3,658,300

Europe Core




2012-2015 1,225,893 3,502,939 501,505 286 % 190 %
2016 333,090 592,884 139,586 178 % 167 %
2017 252,174 365,536 81,441 145 % 144 %
2018 341,775 565,847 154,776 166 % 148 %
2019 518,610 886,432 288,716 171 % 152 %
2020 324,119 606,494 222,958 187 % 172 %
2021 412,411 729,384 346,484 177 % 170 %
2022 359,447 596,537 391,041 166 % 162 %
2023 410,593 703,345 487,208 171 % 169 %
2024 451,786 817,788 724,434 181 % 180 %
2025 512,533 949,923 892,135 185 % 185 %
Subtotal 5,142,431 10,317,109 4,230,284

Europe Insolvency



2014-2015 29,849 48,955 — 164 % 135 %
2016 39,338 58,523 469 149 % 130 %
2017 39,235 52,785 300 135 % 128 %
2018 44,908 53,296 686 119 % 123 %
2019 77,218 114,448 4,538 148 % 130 %
2020 105,440 162,042 7,550 154 % 129 %
2021 53,230 80,047 11,541 150 % 134 %
2022 44,604 65,853 23,130 148 % 137 %
2023 46,558 66,329 36,108 142 % 138 %
2024 43,459 64,128 43,558 148 % 147 %
2025 20,760 30,102 28,167 145 % 145 %
Subtotal 544,599 796,508 156,047

Total Europe 5,687,030 11,113,617 4,386,331

Total other markets (6)                                                 940,304 2,193,890 564,234 233 % 204 %
Total PRA Group $                16,482,052 $            34,938,446 $              8,608,865



(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. 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, 2025 exchange rate.
(5) The original purchase price multiple represents the purchase price multiple at the end of the year of purchase.
(6) Reflects all vintages in South America, Canada and Australia.

 
Portfolio Financial Information (1)
Amounts in thousands

Year Ended December 31, 2025
As of December 31, 2025
Purchase Period Cash

Collections (2)

 Portfolio
Income (2)		 Changes in
Expected
Recoveries (2)		 Total Portfolio
Revenue (2)
Net Finance Receivables (3)
U.S. Core





1996-2015 $              53,587 $             26,258 $               13,387 $              39,645
$                                 33,430
2016 12,907 7,702 (636) 7,066
14,911
2017 26,648 14,363 6,487 20,850
30,259
2018 42,911 19,553 7,183 26,736
49,931
2019 37,333 16,692 3,072 19,764
37,766
2020 50,390 21,632 4,934 26,566
50,181
2021 52,793 28,021 (14,710) 13,311
65,403
2022 58,512 25,407 (19,249) 6,158
89,144
2023 185,870 91,451 (33,694) 57,757
268,624
2024 374,880 212,323 42,435 254,758
611,570
2025 106,091 89,455 9,235 98,690
522,814
Subtotal 1,001,922 552,857 18,444 571,301
1,774,033
U.S. Insolvency





1996-2015 1,024 24 1,009 1,033
1
2016 127 16 8 24
31
2017 1,000 92 448 540
227
2018 1,015 32 562 594
89
2019 2,682 85 1,004 1,089
276
2020 8,723 747 (1,207) (460)
1,806
2021 11,760 1,510 275 1,785
7,080
2022 10,471 2,057 437 2,494
12,425
2023 18,040 5,243 (123) 5,120
36,785
2024 23,097 10,571 (1,091) 9,480
48,880
2025 5,179 5,377 1,461 6,838
59,772
Subtotal 83,118 25,754 2,783 28,537
167,372
Total U.S. 1,085,040 578,611 21,227 599,838
1,941,405
Europe Core





2012-2015 126,911 69,456 43,876 113,332
148,237
2016 27,114 11,577 5,547 17,124
79,003
2017 15,710 5,604 (857) 4,747
54,052
2018 34,331 12,302 3,333 15,635
99,338
2019 61,690 19,757 20,224 39,981
194,078
2020 45,146 17,288 12,576 29,864
134,890
2021 59,665 25,558 7,397 32,955
209,447
2022 67,772 26,901 4,471 31,372
246,086
2023 93,166 37,757 7,603 45,360
290,922
2024 135,606 58,624 6,222 64,846
405,324
2025 57,099 27,241 5,451 32,692
484,918
Subtotal 724,210 312,065 115,843 427,908
2,346,295
Europe Insolvency





2014-2015 347 — 347 347
—
2016 594 81 482 563
120
2017 952 42 630 672
183
2018 1,427 83 306 389
556
2019 6,105 606 424 1,030
3,811
2020 15,517 1,182 2,185 3,367
7,071
2021 14,619 1,591 4,658 6,249
10,553
2022 15,240 2,791 2,957 5,748
19,924
2023 15,679 4,160 1,421 5,581
30,139
2024 15,241 5,996 1,076 7,072
32,886
2025 1,917 1,349 517 1,866
20,382
Subtotal 87,638 17,881 15,003 32,884
125,625
Total Europe 811,848 329,946 130,846 460,792
2,471,920
Total other markets (4)                                                     210,738 104,714 24,378 129,092
274,699
Total PRA Group $         2,107,626 $         1,013,271 $             176,451 $         1,189,722
$                             4,688,024


(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, 2025 exchange rate.
(4) Reflects all vintages in South America, Canada and Australia.

 
Cash Collections by Year, By Year of Purchase (1)

as of December 31, 2025

Amounts in millions


Cash Collections
Purchase Period Purchase
Price (2)(3)		 1996-2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Total
U.S. Core










1996-2015 $  2,736.9 $  5,186.4 $  673.8 $  479.4 $  337.7 $  230.9 $  149.3 $   98.2 $   67.1 $   51.7 $   64.7 $   53.6 $ 7,392.8
2016 400.5 — 86.1 195.3 160.1 116.6 88.7 59.9 29.1 17.6 18.1 12.9 784.4
2017 511.9 — — 94.3 264.4 247.1 185.6 124.8 73.1 41.6 37.5 26.6 1095.0
2018 604.7 — — — 106.3 320.2 304.7 214.8 131.6 83.2 68.1 42.9 1271.8
2019 432.2 — — — — 93.4 282.2 237.4 141.7 86.1 61.8 37.3 939.9
2020 415.4 — — — — — 127.4 274.7 185.4 121.3 83.6 50.4 842.8
2021 339.9 — — — — — — 73.8 149.9 115.3 82.8 52.8 474.6
2022 275.4 — — — — — — — 34.9 102.4 87.8 58.5 283.6
2023 506.3 — — — — — — — — 63.5 211.8 185.9 461.2
2024 727.7 — — — — — — — — — 119.8 374.9 494.7
2025 531.0 — — — — — — — — — — 106.1 106.1
Subtotal 7,481.9 5,186.4 759.9 769.0 868.5 1,008.2 1,137.9 1,083.6 812.8 682.7 836.0 1,001.9 14,146.9
U.S. Insolvency










1996-2015 1,472.4 2,290.4 230.4 142.6 78.6 39.1 13.6 4.5 2.9 1.8 1.4 1.0 2,806.3
2016 67.5 — 10.1 18.9 18.2 16.4 13.0 6.6 1.3 0.6 0.4 0.1 85.6
2017 275.3 — — 49.1 97.3 80.9 58.8 44.0 20.8 4.9 2.5 1.0 359.3
2018 97.9 — — — 6.7 27.4 30.5 31.6 24.6 12.7 2.5 1.0 137.0
2019 120.8 — — — — 13.4 30.9 37.9 36.8 28.0 14.2 2.7 163.9
2020 62.1 — — — — — 6.5 16.1 20.4 19.5 17.0 8.7 88.2
2021 54.9 — — — — — — 4.5 17.7 17.4 15.2 11.8 66.6
2022 33.4 — — — — — — — 3.2 9.2 11.1 10.5 34.0
2023 61.2 — — — — — — — — 4.5 14.8 18.0 37.3
2024 68.2 — — — — — — — — — 12.1 23.1 35.2
2025 59.1 — — — — — — — — — — 5.2 5.2
Subtotal 2,372.8 2,290.4 240.5 210.6 200.8 177.2 153.3 145.2 127.7 98.6 91.2 83.1 3,818.6
Total U.S. 9,854.7 7,476.8 1,000.4 979.6 1,069.3 1,185.4 1,291.2 1,228.8 940.5 781.3 927.2 1,085.0 17,965.5
Europe Core










2012-2015 1,225.8 538.4 350.2 310.3 290.5 241.4 206.0 202.4 164.3 142.4 132.1 126.9 2,704.9
2016 333.1 — 40.4 78.9 72.6 58.0 48.3 46.7 36.9 29.7 27.4 27.1 466.0
2017 252.2 — — 17.9 56.0 44.1 36.1 34.8 25.2 20.2 17.9 15.7 267.9
2018 341.8 — — — 24.3 88.7 71.3 69.1 50.7 41.6 37.1 34.3 417.1
2019 518.6 — — — — 48.0 125.7 121.4 89.8 75.1 68.2 61.7 589.9
2020 324.1 — — — — — 32.3 91.7 69.0 56.1 50.1 45.1 344.3
2021 412.4 — — — — — — 48.5 89.9 73.0 66.6 59.7 337.7
2022 359.4 — — — — — — — 33.9 83.8 74.7 67.8 260.2
2023 410.6 — — — — — — — — 50.2 103.1 93.2 246.5
2024 451.9 — — — — — — — — — 46.3 135.6 181.9
2025 512.5 — — — — — — — — — — 57.1 57.1
Subtotal 5,142.4 538.4 390.6 407.1 443.4 480.2 519.7 614.6 559.7 572.1 623.5 724.2 5,873.5
Europe Insolvency










2014-2015 29.9 7.3 8.3 8.2 7.4 5.4 3.7 1.9 0.8 0.6 0.4 0.3 44.3
2016 39.3 — 6.2 12.7 12.9 10.7 7.9 6.0 2.7 1.3 0.8 0.6 61.8
2017 39.2 — — 1.2 7.9 9.2 9.8 9.4 6.5 3.8 1.5 1.0 50.3
2018 44.9 — — — 0.6 8.4 10.3 11.7 9.8 7.2 3.5 1.4 52.9
2019 77.2 — — — — 5.0 21.1 23.9 21.0 17.5 12.9 6.1 107.5
2020 105.4 — — — — — 6.0 34.6 34.1 29.7 25.5 15.5 145.4
2021 53.2 — — — — — — 5.5 14.4 14.7 15.4 14.6 64.6
2022 44.6 — — — — — — — 4.5 12.4 15.2 15.2 47.3
2023 46.7 — — — — — — — — 4.2 12.7 15.7 32.6
2024 43.4 — — — — — — — — — 9.5 15.2 24.7
2025 20.8 — — — — — — — — — — 1.9 1.9
Subtotal 544.6 7.3 14.5 22.1 28.8 38.7 58.8 93.0 93.8 91.4 97.4 87.6 633.3
Total Europe 5,687.0 545.7 405.1 429.2 472.2 518.9 578.5 707.6 653.5 663.5 720.9 811.8 6,506.8
Total other   markets (4) $     940.3 $      33.9 $   86.5 $  103.9 $   83.7 $  137.0 $  135.9 $  125.4 $  135.0 $  215.9 $  220.5 $  210.7 $ 1,488.4
Total PRA Group $ 16,482.0 $  8,056.4 $  1,492.0 $  1,512.7 $  1,625.2 $  1,841.3 $  2,005.6 $  2,061.8 $  1,729.0 $  1,660.7 $  1,868.6 $  2,107.5 $  25,960.7


(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. 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.
(4) Reflects all vintages in South America, Canada and Australia.

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 the non-GAAP financial measures referred to below, internally to evaluate the Company's performance and to set performance goals. Included below are reconciliations of the most directly comparable financial measures calculated in accordance with GAAP to the corresponding non-GAAP financial measure. The non-GAAP financial measures included below should not be considered as an alternative to the most directly comparable financial measure determined in accordance with GAAP. The calculation of the non-GAAP financial measures included below may not be comparable to the calculation of similarly titled financial measures reported by other companies.

Adjusted EBITDA

Adjusted EBITDA is calculated as net income (or loss) attributable to PRA Group, Inc. plus income tax expense (or less income tax benefit); less foreign exchange gain (or plus foreign exchange loss); plus interest expense, net; plus other expense; plus depreciation and amortization; plus impairment of real estate; plus goodwill impairment; plus net income attributable to noncontrolling interests; less gain on sale of equity method investment; and plus recoveries collected and applied to Finance receivables, net less Changes in expected recoveries. 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. Set forth below is a reconciliation of net income/(loss) attributable to PRA Group, Inc. to Adjusted EBITDA for the years ended December 31, 2025 and 2024.
 Adjusted EBITDA Reconciliation ($ in thousands) 2025 2024
Net income/(loss) attributable to PRA Group, Inc. $                        (305,142) $                            70,601
Adjustments:

Income tax expense 46,735 21,032
Foreign exchange (gain)/loss (755) 9
Interest expense, net 251,788 229,267
Other expense 336 851
Depreciation and amortization 9,035 10,792
Impairment of real estate 1,404 —
Goodwill impairment 412,611 —
Net income attributable to noncontrolling interests 15,168 17,972
Gain on sale of equity method investment (38,403) —
Recoveries collected and applied to Finance receivables, net less Changes in expected recoveries      922,697 787,028
 Adjusted EBITDA $                      1,315,474 $                      1,137,552

Adjusted Cash Efficiency Ratio

The Company uses an adjusted cash efficiency ratio to monitor and evaluate operating expenses, excluding goodwill impairment ("Adjusted operating expenses"), relative to cash collections plus fees and revenue recognized from our class action claims recovery services. Management believes the adjusted cash efficiency ratio is a useful financial measure for investors in evaluating the Company's management of operating expenses. The adjusted cash efficiency ratio is calculated by dividing cash receipts less Adjusted operating expenses by cash receipts. The following table provides a reconciliation of Total operating expenses to Adjusted operating expenses and presents the Company's Adjusted cash efficiency ratios for the years indicated (in thousands, except for ratio data):

Adjusted Operating Expenses Reconciliation
and Adjusted Cash Efficiency Ratio

2025
2024
2023
Cash collections $             2,107,626
$             1,868,576
$             1,660,450
Fee income 9,996
10,023
10,384
Cash receipts 2,117,622
1,878,599
1,670,834






Total operating expenses 1,232,110
774,792
702,062
Less: Goodwill impairment 412,611
—
—
Adjusted operating expenses 819,499
774,792
702,062






Cash receipts less Adjusted operating expenses                                                             1,298,123
1,103,807
968,772






Adjusted cash efficiency ratio 61.3 %
58.8 %
58.0 %

Adjusted Net Income/(Loss) Attributable to PRA, Adjusted Diluted Earnings Per Share, ROATE and Adjusted ROATE

We use Net income/(loss) attributable to PRA Group, Inc. and Diluted earnings per share excluding the impact of certain transactions that are unusual or infrequent in nature and not reflective of our ongoing operations ("Adjusted net income/(loss) attributable to PRA" and "Adjusted diluted earnings per share", respectively) to monitor and evaluate our operating performance and allow for better comparability. Management believes Adjusted net income/(loss) attributable to PRA and Adjusted diluted earnings per share are useful financial measures for investors in evaluating our operating results.

In addition, the Company uses return on average tangible equity ("ROATE") 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.

ROATE may include certain items that are not indicative of the ongoing operating results of the Company's business. Accordingly, the Company also uses Adjusted ROATE to monitor and evaluate operating performance relative to the Company's equity. Management believes that Adjusted ROATE is a useful financial measure for investors because it is based on Adjusted net income/(loss) attributable to PRA. Adjusted ROATE is calculated by dividing Adjusted net income/(loss) attributable to PRA by average tangible equity.

The following table provides a reconciliation of Total stockholders' equity - PRA Group, Inc. to average tangible equity and a reconciliation of Net income/(loss) attributable to PRA Group, Inc. to Adjusted net income/(loss) attributable to PRA and provides the Company's ROATE and Adjusted ROATE for the years indicated (in thousands, except for ratio data):


Balance as of Year End
Average Tangible Equity Reconciliation (1)


2025
2024
2023
2025
2024
2023
Total stockholders' equity - PRA Group, Inc. (2)
$    979,851
$ 1,135,032
$ 1,167,112
$    1,119,881
$  1,159,163
$ 1,166,846
Goodwill
26,871
396,357
431,564
(262,053)
(415,685)
(423,110)
Other intangible assets
1,435
1,453
1,742
(1,477)
(1,616)
(1,786)
Average tangible equity






$       856,351
$     741,862
$     741,950





















ROATE








2025
2024
2023
Net income/(loss) attributable to PRA Group, Inc.






$    (305,142)
$        70,601
$    (83,477)
Return on average tangible equity






(35.6) %
9.5 %
(11.3) %





















Adjusted Net Income/(Loss) Attributable to
PRA Reconciliation and Adjusted ROATE








2025
2024
2023
Net income/(loss) attributable to PRA Group, Inc.






$    (305,142)
$        70,601
$    (83,477)
Gain on sale of equity method investment






(38,403)
—
—
Goodwill impairment






412,611
—
—
Tax effect of adjusting items (3)






3,515
—
—
Adjusted net income/(loss) attributable to PRA






72,581
70,601
(83,477)
Adjusted ROATE






8.5 %
9.5 %
(11.3) %

The following table provides a reconciliation of diluted earnings per share to Adjusted diluted earnings per share:

Adjusted Diluted Earnings Per Share Reconciliation

2025
2024
2023
Diluted earnings per share $                      (7.79)
$                       1.79
$                    (2.13)
Effect of adjusting items and dilutive shares (4)                                                                                           9.63
—
—
Adjusted diluted earnings per share $                       1.84
$                       1.79
$                    (2.13)

1.     Amounts represent the average balances for the respective years.
2.     Not adjusted for Gain on sale of equity method investment in 2025 due to the de minimis effect.
3.     Based on the annual effective tax rate and pretax income excluding the effect of the adjusting items.
4.     Impact of the non-GAAP adjusting items and dilutive effect of all potential shares of common stock.

Investor Contact:
Najim Mostamand, CFA
Vice President, Investor Relations
(757) 431-7913
IR@PRAGroup.com

 

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/pra-group-reports-fourth-quarter-and-full-year-2025-results-302698912.html

SOURCE PRA Group, Inc.

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