PRA Group (PRAA) investor relations material

Executive summary

• Achieved 13% year-over-year growth in cash collections and $1.2 billion in portfolio purchases for 2025, the third highest annual level, strengthening US and European operations and executing long-term strategies.

• Reported a net loss of $305 million for 2025, primarily due to a $413 million non-cash goodwill impairment in Q3; adjusted net income was $73 million.

• Record cash collections of $2.1 billion and record revenue of $1.2 billion, with portfolio income up 18% year-over-year.

• Operational improvements included legal channel investments, digital expansion, and cost reductions through offshoring, restructuring, and US overhead reduction initiatives saving $20 million annually.

• Maintained a strong, diversified capital structure and returned $20 million to shareholders via stock repurchases.

Financial highlights

• Cash collections for Q4 were $532 million, up 14% year-over-year; full-year collections grew 13% to $2.1 billion.

• Adjusted net income rose to $73 million in 2025; adjusted EBITDA up 16% to $1.3 billion.

• Portfolio revenue increased 8% for the year to $1.2 billion; portfolio income grew 18% to $1 billion, a company record.

• Adjusted diluted EPS was $1.84 in 2025.

• Net leverage declined to 2.73x by year-end 2025.

Outlook and guidance

• Expect portfolio investments in 2026 to be similar to 2025, in the $1–1.3 billion range.

• Anticipate adjusted EBITDA to continue growing faster than cash collections, with further leverage reduction targeted to mid-2x.

• Targeting annualized adjusted net income in the $1.0–$1.3 billion range over the next 2–3 years, assuming stable macro and regulatory conditions.

• Portfolio supply expected to remain stable over the next 18 months, with strong supply opportunities in the US.

• Focus remains on disciplined capital allocation, cost management, and technology-driven operational improvements.