PRA Group (PRAA) investor relations material

Industry overview and market dynamics

• Operates as a global debt buyer, acquiring nonperforming loans from banks and financial institutions across 18 markets, with a balanced presence in the U.S. and Europe.

• U.S. is the largest and growing nonperforming loan (NPL) market, with credit card balances exceeding $1 trillion and charge-off rates above pre-pandemic levels.

• Economic downturns increase supply opportunities, while resilient customer payment behavior supports collections even in weaker economies.

• Regulatory complexity in the U.S. and Europe creates high barriers to entry, favoring established players with scale and compliance capabilities.

• Technology and data analytics are transforming the industry, shifting focus from volume calling to sophisticated underwriting and omnichannel customer engagement.

Strategic initiatives and operational transformation

• Launched PRA 3.0 strategy in early 2026, focusing on disciplined capital allocation, operational efficiency, modernization, and a performance-driven culture.

• Achieved significant cost reductions by cutting over 200 corporate roles and 575 call center positions, reducing over 25% of overhead staff, consolidating U.S. sites from seven to one, and increasing offshore operations.

• Implemented a global cloud-based omnichannel contact platform and established a talent hub in Charlotte to access advanced analytics and technology talent, including an AI-focused team.

• Ongoing transformation includes further technology deployment, incentive alignment, and investments in legal and digital initiatives to support long-term value creation.

• Governance and compliance remain central, with a strong board and audit structure supporting international operations.

Financial performance and capital management

• Record portfolio purchases in 2024 ($1.4B) and strong cash collections, up 32% since 2023, with $8.9B in estimated remaining collections and $559M in Q2 2026 cash collections.

• Adjusted EBITDA up 35% since 2023, reaching $1.36B LTM Q2 2026, with leverage declining for seven consecutive quarters, now at 2.67x.

• Net income rebounded to $73M in both 2024 and 2025, and reached $58M in Q2 2026, reflecting improved profitability and cost discipline.

• Maintains a diversified funding base with over $3B in committed capital, recent refinancing of a $730M European facility, and ample liquidity of $998M–$1B with no maturities until 2028.

• Capital allocation prioritizes disciplined portfolio purchases, technology investment, and opportunistic share repurchases, with $40M in buybacks since Q2 2025 and authorization increased to $150M in August 2026.