EX-99.1 2 q12025earningrelease.htm EX-99.1 Document

pralogoa06.gif

PRA Group Reports First Quarter 2025 Results

19% Growth in Portfolio Purchases Drives Record ERC of $7.8 Billion

Strong Portfolio Purchases and Execution of Strategic Initiatives Contributed to Double-Digit Cash Collections Growth

Company Positioned for Continued Success with Transition to Newly Appointed CEO

NORFOLK, Va., May 5, 2025 - PRA Group, Inc. (Nasdaq: PRAA) (the "Company"), a global leader in acquiring and collecting nonperforming loans, today reported its financial results for the first quarter of 2025 ("Q1 2025").

Q1 2025 Highlights
•Total portfolio purchases of $291.7 million, an increase of 18.7% year-over-year.
•Record estimated remaining collections (ERC)1 of $7.8 billion, an increase of 20.1% year-over-year.
•Total cash collections of $497.4 million, an increase of 10.7% year-over-year.
•Cash efficiency ratio2 of 60.8%, an increase of 284 basis points year-over-year.
•Net income attributable to PRA Group, Inc. of $3.7 million, an increase of 5.3% year-over-year, resulting in diluted earnings per share of $0.09.
•Adjusted EBITDA3 for the 12 months ended March 31, 2025 of $1.2 billion, an increase of 13.5% year-over-year.

Three Months Ended March 31,
($ in thousands, except per share amounts)20252024
Net income attributable to PRA Group, Inc.$3,659 $3,475 
Diluted earnings per share$0.09 $0.09 

“Building on a successful 2024, we delivered another strong quarter, including an increase in portfolio purchases of 19%, record ERC, our fourth consecutive quarter of double-digit cash collections growth, and a nearly 300 basis point improvement in cash efficiency, as we continued to execute on our cash-generating and operational initiatives in the U.S.," said Vikram Atal, president and chief executive officer. "Changes in Expected Recoveries moderated from recent levels. Historically, our first quarter cash collections in the U.S. have experienced seasonality increases, typically driven by consumer tax refunds, that didn’t materialize this quarter to the extent that we modeled, resulting in lower profitability compared to prior quarters. I am very proud of the team's accomplishments to improve the cash-generation capabilities of the U.S. business—which we believe, coupled with the continued strength of our European business, sets us up for overall success moving forward."

"As we look ahead, we are excited to welcome our newly appointed president and CEO Martin Sjolund, who has been with the Company for 13 years and brings a successful European playbook to build on our global three-pillar strategy."
1.Refers to the sum of all future projected cash collections on the Company's nonperforming loan portfolios.
2.Calculated by dividing cash receipts less operating expenses by cash receipts. Cash receipts refers to cash collections on the Company's nonperforming loan portfolios, fees and revenue recognized from the Company's class action claims recovery services.
3.A reconciliation of net income, the most directly comparable financial measure calculated and reported in accordance with GAAP, to Adjusted EBITDA can be found at the end of this press release.


"We are confident in the overall trajectory of the business and, at this time, we are not changing our previously provided financial targets, except for the return on average tangible equity, which is likely to be at a lower level than our target of approximately 12%. As we move through the coming quarters, we will reaffirm, raise, or lower these targets as appropriate. We continue to take a long-term approach to managing the business and we believe we are well-positioned to execute on our strategy to drive continued growth, profitability, and shareholder value."

Cash Collections and Revenues
The following table presents cash collections by quarter and by source on an as reported and constant currency-adjusted basis:

Cash Collection Source20252024
($ in thousands)Q1Q4Q3Q2Q1
Americas and Australia Core$288,160 $257,711 $266,977 $263,828 $256,861 
Americas Insolvency23,700 24,067 26,065 26,971 25,209 
Europe Core164,371 162,564 158,242 156,739 145,933 
Europe Insolvency21,205 23,724 25,826 26,344 21,515 
Total cash collections$497,436 $468,066 $477,110 $473,882 $449,518 
Cash Collection Source -
Constant Currency-Adjusted20252024
($ in thousands)Q1Q1
Americas and Australia Core$288,160 $249,195 
Americas Insolvency23,700 25,039 
Europe Core164,371 143,377 
Europe Insolvency21,205 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)20252024
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 Source20252024
($ in thousands)Q1Q4Q3Q2Q1
Americas & Australia Core$165,503 $194,063 $263,613 $198,761 $174,660 
Americas Insolvency12,953 9,460 10,162 26,627 22,156 
Europe Core108,390 220,875 71,507 127,991 43,997 
Europe Insolvency4,856 8,272 4,696 25,990 5,004 
Total portfolio acquisitions$291,702 $432,670 $349,978 $379,369 $245,817 

•The Company purchased $291.7 million in portfolios of nonperforming loans in Q1 2025, an 18.7% increase compared to $245.8 million in Q1 2024.
•At the end of Q1 2025, the Company had in place estimated forward flow commitments1 of $347.0 million over the next 12 months, comprised of $258.0 million in the Americas and Australia and $89.0 million in Europe.

Credit Availability
•Total availability under the Company's credit facilities as of March 31, 2025 was $918.9 million, comprised of $537.8 million based on current ERC and subject to debt covenants, and $381.1 million of additional availability subject to borrowing base and debt covenants, including advance rates.

Conference Call Information
PRA Group, Inc. will hold a conference call today at 5:00 p.m. ET to discuss its financial and operational results. To listen to a webcast of the call and view the accompanying slides, visit https://ir.pragroup.com/events-and-presentations. To listen by phone, call 646-357-8785 in the U.S. or 1-800-836-8184 outside the U.S. and ask for the PRA Group conference call. To listen to a replay of the call, either visit the same website until May 5, 2026, or call 646-517-4150 in the U.S. or 1-888-660-6345 outside the U.S. and use access code 47549# until May 12, 2025.

About PRA Group, Inc.
As a global leader in acquiring and collecting nonperforming loans, PRA Group, Inc. returns capital to banks and other creditors to help expand financial services for consumers in the Americas, Europe, and Australia. With thousands of employees worldwide, PRA Group, Inc. companies collaborate with customers to help them resolve their debt. For more information, please visit www.pragroup.com.

About Forward Looking Statements
Statements made herein that are not historical in nature, including PRA Group, Inc.’s or its management's intentions, hopes, beliefs, expectations, representations, projections, plans or predictions of the future, are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended.

The forward-looking statements in this press release are based upon management's current beliefs, estimates, assumptions and expectations of PRA Group, Inc.’s future operations and financial and economic performance, taking into account currently available information. These statements are not statements of historical fact or guarantees of future performance, and there can be no assurance that anticipated events will transpire or that the Company's expectations will prove to be correct. Forward-looking statements involve risks and uncertainties, some of which are not currently known to PRA Group,
1.Contractual agreements with sellers of nonperforming loans that allow for the purchase of nonperforming loan portfolios at pre-established prices. These amounts represent our estimated forward flow purchases over the next 12 months under the agreements in place based on projections and other factors, including sellers' estimates of future forward flow sales, and are dependent on actual delivery by the sellers and, in some cases, the impact of foreign exchange rate fluctuations. Accordingly, amounts purchased under these agreements may vary significantly.

Inc. Actual events or results may differ materially from those expressed or implied in any such forward-looking statements as a result of various factors, including risk factors and other risks that are described from time to time in PRA Group, Inc.’s filings with the Securities and Exchange Commission, including PRA Group, Inc.’s annual reports on Form 10-K, its quarterly reports on Form 10-Q and its current reports on Form 8-K, which are available through PRA Group, Inc.'s website and contain a detailed discussion of PRA Group, Inc.'s business, including risks and uncertainties that may affect future results.

Due to such uncertainties and risks, you are cautioned not to place undue reliance on such forward-looking statements, which speak only as of today. Information in this press release may be superseded by more recent information or statements, which may be disclosed in later press releases, subsequent filings with the Securities and Exchange Commission or otherwise. Except as required by law, PRA Group, Inc. assumes no obligation to publicly update or revise its forward-looking statements contained herein to reflect any change in PRA Group, Inc.’s expectations with regard thereto or to reflect any change in events, conditions or circumstances on which any such forward-looking statements are based, in whole or in part.




PRA Group, Inc.
Unaudited Consolidated Income Statements
(Amounts in thousands, except per share amounts)
Three Months Ended March 31,
20252024
Revenues
Portfolio income$240,958 $202,056 
Changes in expected recoveries27,922 51,674 
Total portfolio revenue268,880 253,730 
Other revenue739 1,856 
Total revenues269,619 255,586 
Operating expenses
Compensation and benefits73,323 73,597 
Legal collection costs33,394 26,691 
Legal collection fees15,230 12,112 
Agency fees21,368 19,723 
Professional and outside services21,103 25,050 
Communication10,477 12,578 
Rent and occupancy3,480 4,144 
Depreciation, amortization and impairment3,769 2,720 
Other operating expenses12,898 12,575 
Total operating expenses195,042 189,190 
    Income from operations74,577 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 taxes13,376 14,139 
Income tax expense4,312 2,386 
Net income9,064 11,753 
Net income attributable to noncontrolling interests5,405 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
Basic39,549 39,274 
Diluted39,688 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 
Investments70,155 66,304 
Finance receivables, net4,308,334 4,140,742 
Income taxes receivable23,456 19,559 
Deferred tax assets, net80,282 75,134 
Right-of-use assets27,166 32,173 
Property and equipment, net27,036 29,498 
Goodwill420,715 396,357 
Other assets62,271 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 payable29,346 28,584 
Deferred tax liabilities, net19,663 16,813 
Lease liabilities30,884 36,437 
Interest-bearing deposits187,717 163,406 
Borrowings3,466,075 3,326,621 
Other liabilities30,755 24,476 
Total liabilities3,867,551 3,737,548 
Equity
Preferred stock, $0.01 par value, 2,000 shares authorized, no shares issued and outstanding— — 
Common stock, $0.01 par value, 100,000 shares authorized, 39,652 shares issued and outstanding as of March 31, 2025; 100,000 shares authorized, 39,510 shares issued and outstanding as of December 31, 2024397 395 
Additional paid-in capital19,816 17,882 
Retained earnings1,563,808 1,560,149 
Accumulated other comprehensive loss(364,913)(443,394)
Total stockholders' equity - PRA Group, Inc.1,219,108 1,135,032 
Noncontrolling interests61,410 58,575 
Total equity1,280,518 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 debt discount/premium and issuance costs$1,901 $2,241 $3,795 $2,331 $2,200 $2,177 $2,220 $2,384 
Change in fair value of derivatives(2,570)(4,686)(5,706)(5,628)(5,930)(6,734)(6,545)(6,960)
Amortization of intangibles49 58 60 58 60 69 69 68 
Impairment of real estate831 — — — — 202 5,037 — 
Stock-based compensation expense3,788 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 Estimated Collections (3)
Estimated Remaining Collections (4)
Current Purchase Price Multiple
Original Purchase Price Multiple (5)
Americas and Australia Core
1996-2014$2,336,839 $6,677,285 $85,170 286%228%
2015443,114 927,707 42,421 209%205%
2016455,767 1,099,096 54,164 241%201%
2017532,851 1,227,754 84,362 230%193%
2018653,975 1,547,179 124,687 237%202%
2019581,476 1,319,705 111,295 227%206%
2020435,668 961,382 122,030 221%213%
2021435,846 736,278 221,820 169%191%
2022406,082 716,692 282,237 176%179%
2023622,583 1,227,308 745,906 197%197%
2024823,662 1,734,861 1,495,359 211%211%
2025165,428 360,600 354,271 218%218%
Subtotal7,893,291 18,535,847 3,723,722 
Americas Insolvency
1996-20141,414,476 2,722,777 9 192%155%
201563,170 88,173 9 140%125%
201691,442 118,460 107 130%123%
2017275,257 359,185 624 130%125%
201897,879 136,770 325 140%127%
2019123,077 167,034 1,045 136%128%
202062,130 90,988 8,266 146%136%
202155,187 74,324 15,857 135%136%
202233,442 47,631 21,343 142%139%
202391,282 119,326 75,553 131%135%
202468,391 99,321 82,094 145%149%
202512,952 20,687 20,514 160%160%
Subtotal2,388,685 4,044,676 225,746 
Total Americas and Australia10,281,976 22,580,523 3,949,468 
Europe Core
1996-2014814,553 2,680,717 385,242 329%205%
2015411,340 763,617 123,063 186%160%
2016333,090 586,213 145,522 176%167%
2017252,174 363,859 87,133 144%144%
2018341,775 560,664 166,556 164%148%
2019518,610 862,626 293,354 166%152%
2020324,119 589,876 227,352 182%172%
2021412,411 718,256 362,383 174%170%
2022359,447 586,653 404,395 163%162%
2023410,593 694,061 513,613 169%169%
2024451,786 815,610 774,971 181%180%
2025109,910 192,014 190,318 175%175%
Subtotal4,739,808 9,414,166 3,673,902 
Europe Insolvency
201410,876 19,126 — 176%129%
201518,973 29,542 — 156%139%
201639,338 58,202 512 148%130%
201739,235 52,302 453 133%128%
201844,908 53,090 1,357 118%123%
201977,218 114,075 8,122 148%130%
2020105,440 160,291 16,121 152%129%
202153,230 76,576 18,621 144%134%
202244,604 63,631 30,937 143%137%
202346,558 65,421 45,502 141%138%
202443,459 63,596 52,694 146%147%
20254,994 7,546 7,443 151%151%
Subtotal528,833 763,398 181,762 
Total Europe5,268,641 10,177,564 3,855,664 
Total PRA Group$15,550,617 $32,758,087 $7,805,132 
(1)    Includes the acquisition date finance receivables portfolios that were acquired through our business acquisitions.
(2)Non-U.S. amounts are presented at the exchange rate at the end of the period in which the portfolio was purchased. In addition, any purchase price adjustments that occur throughout the life of the portfolio are presented at the period-end exchange rate for the respective period of purchase.
(3)Non-U.S. amounts are presented at the period-end exchange rate for the respective period of purchase.
(4)Non-U.S. amounts are presented at the March 31, 2025 exchange rate.
(5)The original purchase price multiple represents the purchase price multiple at the end of the period of acquisition.


Portfolio Financial Information (1)
Amounts in thousands
March 31, 2025 (year-to-date)As of March 31, 2025
Purchase Period
Cash Collections (2)
Portfolio Income (2)
Change in Expected Recoveries (2)
Total Portfolio Revenue (2)
Net Finance Receivables (3)
Americas and Australia Core
1996-2014$11,587 $5,208 $6,052 $11,260 $28,588 
20153,756 2,257 (538)1,719 18,289 
20164,794 2,925 406 3,331 20,128 
20177,854 4,056 1,777 5,833 34,684 
201813,926 6,122 1,997 8,119 63,730 
201913,659 6,353 (1,874)4,479 60,339 
202015,569 6,683 (1,597)5,086 67,290 
202118,306 9,653 (2,256)7,397 115,217 
202225,886 11,365 (315)11,050 169,095 
202363,352 32,874 (8,290)24,584 413,774 
2024103,139 66,232 8,837 75,069 775,565 
20256,332 4,310 1,250 5,560 164,578 
Subtotal288,160 158,038 5,449 163,487 1,931,277 
Americas Insolvency
1996-2014258 9 250 259 — 
201536 2 31 33 6 
201657 6 12 18 95 
2017326 32 147 179 552 
2018351 14 127 141 302 
2019919 41 (39)2 985 
20203,273 315 (254)61 7,780 
20213,145 500 (58)442 14,361 
20222,801 609 162 771 18,374 
20237,215 2,242 (81)2,161 61,628 
20245,146 2,947 (1,852)1,095 58,849 
2025173 171 76 247 13,021 
Subtotal23,700 6,888 (1,479)5,409 175,953 
Total Americas and Australia311,860 164,926 3,970 168,896 2,107,230 
Europe Core
1996-201422,484 14,317 5,193 19,510 87,666 
20157,291 2,947 3,749 6,696 60,970 
20166,410 2,873 1,107 3,980 82,180 
20173,858 1,444 (1,566)(122)58,090 
20188,525 3,081 866 3,947 107,905 
201915,087 4,885 3,312 8,197 197,307 
202011,349 4,228 4,087 8,315 138,955 
202115,145 6,323 2,524 8,847 219,283 
202216,122 6,720 (1,206)5,514 255,679 
202322,895 9,421 1,828 11,249 307,010 
202433,535 14,734 433 15,167 431,168 
20251,670 475 549 1,024 109,374 
Subtotal164,371 71,448 20,876 92,324 2,055,587 
Europe Insolvency
201434 — 34 34 — 
201546 — 46 46 — 
2016159 21 131 152 133 
2017293 13 156 169 318 
2018471 29 94 123 1,186 
20191,823 194 48 242 7,028 
20204,602 396 481 877 14,915 
20213,356 459 1,256 1,715 16,624 
20223,572 764 510 1,274 25,950 
20233,397 1,096 227 1,323 36,605 
20243,350 1,549 18 1,567 37,729 
2025102 63 75 138 5,029 
Subtotal21,205 4,584 3,076 7,660 145,517 
Total Europe185,576 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
Purchase Price (2)(3)
1996-201420152016201720182019202020212022202320242025Total
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 
2015443.1 — 117.0 228.4 185.9 126.6 83.6 57.2 34.9 19.5 14.1 17.3 3.8 888.3 
2016455.8 — — 138.7 256.5 194.6 140.6 105.9 74.2 38.4 24.9 24.0 4.8 1002.6 
2017532.9 — — — 107.3 278.7 256.5 192.5 130.0 76.3 43.8 39.2 7.9 1132.2 
2018654.0 — — — — 122.7 361.9 337.7 239.9 146.1 92.9 75.9 13.9 1391.0 
2019581.5 — — — — — 143.8 349.0 289.8 177.7 110.3 77.7 13.7 1162.0 
2020435.7 — — — — — — 132.9 284.3 192.0 125.8 87.0 15.6 837.6 
2021435.8 — — — — — — — 85.0 177.3 136.8 98.4 18.3 515.8 
2022406.1— — — — — — — — 67.7 195.4 144.7 25.9 433.7 
2023622.5 — — — — — — — — — 108.5 285.9 63.4 457.8 
2024823.7 — — — — — — — — — — 145.9 103.1 249.0 
2025165.4 — — — — — — — — — — — 6.2 6.2 
Subtotal7,893.3 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
1996-20141,414.5 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 
201563.2 — 3.4 17.9 20.1 19.8 16.7 7.9 1.3 0.6 0.3 0.2 — 88.2 
201691.4 — — 18.9 30.4 25.0 19.9 14.4 7.4 1.8 0.9 0.6 0.1 119.4 
2017275.3 — — — 49.1 97.3 80.9 58.8 44.0 20.8 4.9 2.5 0.3 358.6 
201897.9 — — — — 6.7 27.4 30.5 31.6 24.6 12.7 2.5 0.4 136.4 
2019123.1 — — — — — 13.4 31.4 39.1 37.8 28.7 14.6 0.9 165.9 
202062.1 — — — — — — 6.5 16.1 20.4 19.5 17.0 3.3 82.8 
202155.2 — — — — — — — 4.6 17.9 17.5 15.3 3.1 58.4 
202233.4 — — — — — — — — 3.2 9.2 11.1 2.8 26.3 
202391.2 — — — — — — — — — 9.0 25.1 7.2 41.3 
202468.4 — — — — — — — — — — 12.1 5.1 17.2 
202513.0 — — — — — — — — — — — 0.2 0.2 
Subtotal2,388.7 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 Australia10,282.0 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
1996-2014814.5 195.1 297.5 249.9 224.1 209.6 175.3 151.7 151.0 123.6 108.6 101.7 22.5 2,010.6 
2015411.3 — 45.8 100.3 86.2 80.9 66.1 54.3 51.4 40.7 33.8 30.4 7.3 597.2 
2016333.1 — — 40.4 78.9 72.6 58.0 48.3 46.7 36.9 29.7 27.4 6.4 445.3 
2017252.2 — — — 17.9 56.0 44.1 36.1 34.8 25.2 20.2 17.9 3.9 256.1 
2018341.8 — — — — 24.3 88.7 71.3 69.1 50.7 41.6 37.1 8.5 391.3 
2019518.6 — — — — — 48.0 125.7 121.4 89.8 75.1 68.2 15.1 543.3 
2020324.1 — — — — — — 32.3 91.7 69.0 56.1 50.1 11.3 310.5 
2021412.4 — — — — — — — 48.5 89.9 73.0 66.6 15.1 293.1 
2022359.4 — — — — — — — — 33.9 83.8 74.7 16.1 208.5 
2023410.6 — — — — — — — — — 50.2 103.1 22.9 176.2 
2024451.9 — — — — — — — — — — 46.3 33.5 79.8 
2025109.9 — — — — — — — — — — — 1.7 1.7 
Subtotal4,739.8 195.1 343.3 390.6 407.1 443.4 480.2 519.7 614.6 559.7 572.1 623.5 164.3 5,313.6 
Europe Insolvency
201410.9 — 4.3 3.9 3.2 2.6 1.5 0.8 0.3 0.2 0.2 0.2 — 17.2 
201519.0 — 3.0 4.4 5.0 4.8 3.9 2.9 1.6 0.6 0.4 0.2 — 26.8 
201639.3 — — 6.2 12.7 12.9 10.7 7.9 6.0 2.7 1.3 0.8 0.2 61.4 
201739.2 — — — 1.2 7.9 9.2 9.8 9.4 6.5 3.8 1.5 0.3 49.6 
201844.9 — — — — 0.6 8.4 10.3 11.7 9.8 7.2 3.5 0.5 52.0 
201977.2 — — — — — 5.0 21.1 23.9 21.0 17.5 12.9 1.8 103.2 
2020105.4 — — — — — — 6.0 34.6 34.1 29.7 25.5 4.6 134.5 
202153.2 — — — — — — — 5.5 14.4 14.7 15.4 3.4 53.4 
202244.6 — — — — — — — — 4.5 12.4 15.2 3.6 35.7 
202346.7 — — — — — — — — — 4.2 12.7 3.4 20.3 
202443.4 — — — — — — — — — — 9.5 3.3 12.8 
20255.0 — — — — — — — — — — — 0.1 0.1 
Subtotal528.8 — 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 Europe5,268.6 195.1 350.6 405.1 429.2 472.2 518.9 578.5 707.6 653.5 663.5 720.9 185.5 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.

LTMFor the Year Ended
Adjusted EBITDA Reconciliation ($ in millions)March 31, 2025December 31, 2024
Net income attributable to PRA Group, Inc.$71 $71 
Adjustments:
Income tax expense23 21 
Interest expense, net238 229 
Other expense1 1 
Depreciation and amortization11 11 
Impairment of real estate1 — 
Net income attributable to noncontrolling interests15 18 
Recoveries collected and applied to Finance receivables, net less Changes in expected recoveries824 787 
Adjusted EBITDA$1,184 $1,138 

In addition, the Company uses return on average tangible equity ("ROATE"), which is a supplemental measure of performance that is not required by, or presented in accordance with, GAAP, to monitor and evaluate operating performance relative to the Company's equity. Management believes ROATE is a useful financial measure for investors in evaluating the effective use of equity, and is an important component of its long-term stockholder return. Average tangible equity is defined as average Total stockholders' equity - PRA Group, Inc. less average goodwill and average other intangible assets. ROATE is calculated by dividing annualized Net income attributable to PRA Group, Inc. by average tangible equity.











The following table provides a reconciliation of Total stockholders' equity - PRA Group, Inc. as reported in accordance with GAAP to average tangible equity and displays the Company's ROATE for the periods indicated (amounts in thousands, except for ratio data):
Balance as of Period End
Average Tangible Equity Reconciliation (1)
March 31, 2025March 31, 2024Q1 2025Q1 2024
Total stockholders' equity - PRA Group, Inc.$1,219,108 $1,129,326 $1,177,070 $1,148,219 
Less: Goodwill420,715 411,846 408,536 421,705 
Less: Other intangible assets1,488 1,666 1,471 1,704 
Average tangible equity$767,063 $724,810 
ROATE (2)
Q1 2025Q1 2024
Net income attributable to PRA Group, Inc.$3,659 $3,475 
Return on average tangible equity1.9%1.9%

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

News Media Contact:
Elizabeth Kersey
Senior Vice President, Communications and Public Policy
(757) 641-0558
Elizabeth.Kersey@PRAGroup.com
1.Amounts represent the average balances for the respective periods.
2.Based on annualized Net income attributable to PRA Group, Inc.