PRA Group (PRAA) Investor presentation summary

Company overview and market position

• Operates as a global leader in acquiring and collecting nonperforming loans (NPLs) across 18 markets, with over 30 years of experience and a highly experienced management team.

• Maintains significant global scale and diversification, with strong momentum in both U.S. and European businesses.

• Specializes in purchasing portfolios at attractive returns and collecting efficiently using advanced technology, data, and analytics.

• Navigates complex regulatory environments, particularly in the U.S. and Europe, leveraging deep seller relationships and proprietary data.

Financial performance and capital structure

• Q2 2026 portfolio purchases totaled $297M, with estimated remaining collections (ERC) at a record $8.9B, up 7% year-over-year.

• Last twelve months (LTM) adjusted EBITDA reached $1.4B, up 10% YoY, and net income was $58M, a $16M increase YoY.

• Net leverage declined to 2.67x, reflecting disciplined capital deployment and EBITDA growth.

• Maintains ample liquidity ($998M) and a staggered debt maturity profile, with no maturities until 2028.

• Board authorized a new share repurchase program for up to $150M, with $40M repurchased over the last 12 months.

Operational highlights and strategic initiatives

• U.S. business showed strong growth in legal and digital collections, with a shift to a more variable cost structure through offshoring and use of debt collection agencies.

• European business demonstrated consistent cash generation and operational efficiency, with Europe ERC now representing over 50% of global ERC.

• Completed a comprehensive review of European portfolios, increasing Europe ERC by $349M and supporting higher, more predictable portfolio income.

• Achieved major cost reductions, including elimination of over 900 roles since 2025 and closure of multiple call centers, resulting in significant annualized net savings.

• Launched cloud-based omni-channel contact platform and centralized global AI initiatives to enhance operational efficiency.