# PRA Group Inc: Form 10-Q for the period ended Mar 31, 2025

- Company: [PRA Group Inc](/companies/praa.md) (CIK 1185348)
- Form: 10-Q
- Filed: 2025-05-09
- Accepted by EDGAR: May 8, 2025, 18:16 ET
- Period: 2025-03-31
- Accession: 0001185348-25-000012
- Inline XBRL: yes
- Main document: https://www.sec.gov/Archives/edgar/data/1185348/000118534825000012/praa-20250331.htm
- All documents and exhibits: https://www.sec.gov/Archives/edgar/data/1185348/000118534825000012/

## Figures reported in this filing

Standardized XBRL line items for the period ended 2025-03-31.

| Line item | Period | Value | XBRL concept |
| --- | --- | ---: | --- |
| Revenue | 3 months, 2025-01-01 to 2025-03-31 | $269.6m | us-gaap:Revenues |
| Operating income | 3 months, 2025-01-01 to 2025-03-31 | $74.6m | us-gaap:OperatingIncomeLoss |
| Income tax | 3 months, 2025-01-01 to 2025-03-31 | $4.3m | us-gaap:IncomeTaxExpenseBenefit |
| Net income | 3 months, 2025-01-01 to 2025-03-31 | $3.7m | us-gaap:NetIncomeLoss |
| Diluted EPS | 3 months, 2025-01-01 to 2025-03-31 | $0.09 | us-gaap:EarningsPerShareDiluted |
| Basic EPS | 3 months, 2025-01-01 to 2025-03-31 | $0.09 | us-gaap:EarningsPerShareBasic |
| Diluted shares (weighted) | 3 months, 2025-01-01 to 2025-03-31 | 39,688,000 shares | us-gaap:WeightedAverageNumberOfDilutedSharesOutstanding |
| Operating cash flow | 3 months, 2025-01-01 to 2025-03-31 | −$52.6m | us-gaap:NetCashProvidedByUsedInOperatingActivities |
| Capital expenditure | 3 months, 2025-01-01 to 2025-03-31 | $900.0k | us-gaap:PaymentsToAcquirePropertyPlantAndEquipment |
| Cash and equivalents | at 2025-03-31 | $128.7m | us-gaap:CashAndCashEquivalentsAtCarryingValue |
| Total assets | at 2025-03-31 | $5.15bn | us-gaap:Assets |
| Total liabilities | at 2025-03-31 | $3.87bn | us-gaap:Liabilities |
| Shareholders' equity | at 2025-03-31 | $1.22bn | us-gaap:StockholdersEquity |

## Management's discussion and analysis

As filed, 59,544 characters.

All references in this Quarterly Report on Form 10-Q ("Quarterly Report") to "PRA Group," "we," "our," "us," "the Company" or similar terms are to PRA Group, Inc. and its subsidiaries.

This Quarterly Report should be read in conjunction with our Form 10-K for the year ended December 31, 2024 ("2024 10-K"). See Frequently Used Terms at the end of this Item 2 for certain definitions that may be used in this Quarterly Report.

### FORWARD-LOOKING STATEMENTS

This Quarterly Report contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Statements other than statements of historical fact are forward-looking statements, including statements regarding cash collection trends, operating cost trends, liquidity and capital needs and other statements of expectations, beliefs, future plans, strategies and anticipated events or trends. Our results could differ materially from those expressed or implied by such forward-looking statements, or our forward-looking statements could be wrong, as a result of risks, uncertainties and assumptions, including the following:

- volatility and uncertainty in general business and economic conditions or financial markets, including the impact of tariffs and tariff speculation on our customers;
- our ability to purchase a sufficient volume of nonperforming loans at favorable pricing;
- our ability to collect sufficient amounts on our nonperforming loans to fund our operations;
- a disruption or failure by any of our outsourcing, offshoring or other third-party service providers to meet their obligations and our service level expectations;
- our ability to achieve the expected benefits of offshoring a portion of our collection and related support activities;
- our ability to successfully implement our cash-generating and cost savings initiatives in our United States ("U.S.") business;
- disruptions of business operations caused by cybersecurity incidents or the failure of information technology infrastructure, networks or communication systems;
- our ability to effectively utilize artificial intelligence ("AI");
- changes in accounting standards and their interpretations;
- the occurrence of goodwill impairment charges;
- loss contingency accruals that are inadequate to cover actual losses;
- our ability to manage risks associated with our international operations;
- changes in local, state, federal or international laws or the interpretation of these laws, including tax, bankruptcy and collection laws;
- our ability to comply with existing and new regulations in the collections industry;
- changes in tax provisions or exposure to additional tax liabilities;
- investigations, reviews, or enforcement actions by governmental authorities, including the Consumer Financial Protection Bureau ("CFPB");
- our ability to comply with data privacy regulations such as the General Data Protection Regulation ("GDPR");
- adverse outcomes in pending litigation or administrative proceedings;
- our ability to retain, expand, renegotiate or replace our credit facilities and our ability to comply with the covenants under our financing arrangements;
- our ability to manage our capital and liquidity needs effectively, including as a result of changes in credit or capital markets or adverse changes in our credit ratings, whether due to concerns about our industry in general, the financial condition of our competitors, or other factors;
- changes in interest or exchange rates;
- default by, or failure of, one or more of our counterparty financial institutions; and
- the "Risk Factors" in Item 1A of our 2024 Form 10-K and our other filings with the Securities and Exchange Commission.

You should assume that the information appearing in this Quarterly Report is accurate only as of the date it was issued. Our business, financial condition, results of operations and prospects may have changed since that date. The future events, developments or results described in, or implied by, this Quarterly Report could turn out to be materially different. Except as required by law, we assume no obligation to publicly update or revise our forward-looking statements after the date of this Quarterly Report and you should not expect us to do so.

### SUMMARY OF SELECTED FINANCIAL DATA

| As of or for the period ended (in thousands, except per share, ratio, headcount data or where otherwise noted) 2025 Income statement | First Quarter 2024 | % Change |  |
| --- | ---: | ---: | ---: |
| Portfolio income | $240,958 | $202,056 | 19.3% |
| Changes in expected recoveries | 27,922 | 51,674 | (46.0) |
| Total revenues | 269,619 | 255,586 | 5.5 |
| Total operating expenses | 195,042 | 189,190 | 3.1 |
| Interest expense, net | 60,970 | 52,278 | 16.6 |
| Income before income taxes | 13,376 | 14,139 | (5.4) |
| Income tax expense | 4,312 | 2,386 | 80.7 |
| Net income attributable to PRA Group, Inc. | 3,659 | 3,475 | 5.3 |
| **Performance data and ratios** |  |  |  |
| Net income/(loss) attributable to PRA Group (last 12 months) | $70,785 | $(21,373) | 431.2% |
| Adjusted EBITDA (last 12 months) (1) | 1,183,992 | 1,043,534 | 13.5 |
| Cash efficiency ratio (2) | 60.8% | 58.0% |  |
| Return on average Total stockholders' equity - PRA Group (3) | 1.2 | 1.2 |  |
| Return on average tangible equity (4) | 1.9 | 1.9 |  |
| **Common share data** |  |  |  |
| Diluted earnings per share | $0.09 | $0.09 | —% |
| Diluted average common shares outstanding | 39,688 | 39,448 | 0.6 |
| **Portfolio volumes** |  |  |  |
| Portfolio purchases | $291,702 | $245,817 | 18.7% |
| Cash collections | 497,436 | 449,518 | 10.7 |
| Estimated remaining collections (period-end) | 7,805,132 | 6,498,172 | 20.1 |
| **Balance sheet (period-end)** |  |  |  |
| Finance receivables, net | $4,308,334 | $3,650,195 | 18.0% |
| Borrowings | 3,466,075 | 2,953,048 | 17.4 |
| Total stockholders' equity - PRA Group, Inc. | 1,219,108 | 1,129,326 | 8.0 |
| **Credit facility availability (period-end)** |  |  |  |
| Based on current ERC | $537,839 | $366,927 | 46.6% |
| Additional availability | 381,083 | 855,211 | (55.4) |
| Total availability | 918,922 | 1,222,138 | (24.8) |
| **Headcount (period-end)** |  |  |  |
| Full-time equivalents | 2,991 | 3,119 | (4.1)% |

(1) Adjusted earnings before interest, taxes, depreciation and amortization ("Adjusted EBITDA") is a non-GAAP financial measure. Refer to section "Non-GAAP Financial Measures" for a reconciliation of Net Income attributable to PRA Group, Inc., the most directly comparable financial measure calculated and reported in accordance with GAAP, to Adjusted EBITDA.

(2) Calculated by dividing cash receipts less operating expenses by cash receipts.

(3) Calculated by dividing annualized Net income attributable to PRA Group, Inc., by average Total stockholders' equity - PRA Group, Inc. for the period.

(4) Return on average tangible equity ("ROATE") is a non-GAAP financial measure. Average tangible equity is also a non-GAAP financial measure. Refer to section "Non-GAAP Financial Measures" for a reconciliation of Total stockholders' equity - PRA Group, Inc., the most directly comparable financial measure calculated and reported in accordance with GAAP, to average tangible equity.

### EXECUTIVE OVERVIEW

We are a global financial services company with operations in the Americas, Europe and Australia. Our primary business is the purchase, collection and management of portfolios of nonperforming loans.

#### Q1 2025 overview

- Portfolio purchases of $291.7 million, an increase of 18.7% compared to Q1 2024.
- ERC of $7.8 billion as of March 31, 2025, increases of 4.6% compared to December 31, 2024 and 20.1% compared to March 31, 2024.
- Cash collections of $497.4 million, an increase of 10.7% compared to Q1 2024.
- Net income attributable to PRA Group, Inc. of $3.7 million, an increase of 5.3% compared to Q1 2024.
- Diluted earnings per share of $0.09, unchanged from Q1 2024.

With continued focus on disciplined buying, higher cash generation and cost management, the first quarter of 2025 reflected significant growth in portfolio purchases, double-digit cash collections growth and attainment of record ERC. Cash collections overperformance in our European and South American businesses was partially offset by collections underperformance in the U.S., and combined with a moderated level of Changes in expected recoveries, Q1 2025 net income was lower compared to recent quarters. Similar to previous quarters, approximately half of our Q1 2025 cash collections were generated from outside the U.S., and we believe that a key part of the resiliency of our business continues to be our global diversification.

#### U.S.

In the U.S., we purchased $161.0 million of portfolios during Q1 2025, and we expect portfolio supply to remain at elevated levels in 2025. U.S. Core cash collections increased 19.7% to $240.5 million in Q1 2025, driven by higher recent purchasing levels and the impact of our cash-generating initiatives, but were below our expectations. We remain focused on reducing cycle times and optimizing post-judgment activities in our legal collections channel, and together with higher recent purchasing levels, these actions helped drive U.S. legal collections of $111.2 million, a 32.6% increase compared to Q1 2024.

In our U.S. non-legal operations, we enhanced our customer reach and engagement, implemented new dialer strategies, improved offer strategies to accommodate customer needs and experienced a significant increase in our digital interactions. Additionally, we completed the consolidation of three of our U.S. call centers in May, retaining more of our tenured collectors than anticipated under our work from home program.

#### Europe

In Europe, we purchased $113.2 million of portfolios during Q1 2025, an increase of $64.2 million compared to Q1 2024, due in part to a large spot purchase, and we expect relatively stable portfolio supply for the remainder of the year. Cash collections in Europe overperformed our expectations, increasing 10.8% to $185.6 million in Q1 2025.

#### Brazil

In April 2025, we completed the sale of our remaining 11.7% interest in RCB Investimentos S.A. ("RCB"), a servicing company for nonperforming loans in Brazil. The estimated pre-tax gain on the sale of approximately $38.0 million, based on the foreign exchange rate in April, will be reflected in our Consolidated Financial Statements for the second quarter of 2025, and the proceeds will be used for general corporate purposes. This transaction did not impact our majority ownership interests in the Brazilian investment funds through which we make our investments, and we expect to continue making portfolio investments in Brazil through our ongoing relationships with RCB and other long-term partners.

### RESULTS OF OPERATIONS

*Three months ended March 31, 2025 ("First Quarter 2025" or "Q1 2025") compared to three months ended March 31, 2024 ("First Quarter 2024" or "Q1 2024").*

### Portfolio purchases

Portfolio purchases were as follows for the periods indicated (in thousands):

|  | First Quarter 2025 | 2024 | $ Change | % Change |
| --- | ---: | ---: | ---: | ---: |
| Americas and Australia Core | $165,503 | $174,660 | $(9,157) | (5.2)% |
| Americas Insolvency | 12,953 | 22,156 | (9,203) | (41.5) |
| Total Americas and Australia | 178,456 | 196,816 | (18,360) | (9.3) |
| Europe Core | 108,390 | 43,997 | 64,393 | 146.4 |
| Europe Insolvency | 4,856 | 5,004 | (148) | (3.0) |
| Total Europe | 113,246 | 49,001 | 64,245 | 131.1 |
| Total portfolio purchases | $291,702 | $245,817 | $45,885 | 18.7% |

Total portfolio purchases were $291.7 million in Q1 2025, an increase of $45.9 million, or 18.7%, compared to $245.8 million in Q1 2024. The increase in Europe portfolio purchases of $64.2 million was partially offset by the decrease in Americas and Australia purchases of $18.4 million. Our portfolio purchases reflect our global framework that seeks to optimize our deployment of capital to achieve appropriate returns and take advantage of opportunities in our markets.

### Cash collections

Cash collections were as follows for the periods indicated (in thousands):

|  | First Quarter 2025 | 2024 | $ Change | % Change |
| --- | ---: | ---: | ---: | ---: |
| Americas and Australia Core | $288,160 | $256,861 | $31,299 | 12.2% |
| Americas Insolvency | 23,700 | 25,209 | (1,509) | (6.0) |
| Total Americas and Australia | 311,860 | 282,070 | 29,790 | 10.6 |
| Europe Core | 164,371 | 145,933 | 18,438 | 12.6 |
| Europe Insolvency | 21,205 | 21,515 | (310) | (1.4) |
| Total Europe | 185,576 | 167,448 | 18,128 | 10.8 |
| Total cash collections | $497,436 | $449,518 | $47,918 | 10.7% |

Total cash collections were $497.4 million in Q1 2025, an increase of $47.9 million, or 10.7%, compared to $449.5 million in Q1 2024. The increase was primarily due to an increase in U.S. Core cash collections of $39.6 million, mainly due to higher volumes in our legal collections channel, as well as an increase in collections from our non-legal channels due to higher recent purchasing levels. In Europe, higher recent purchasing levels helped drive increased cash collections of $18.1 million, spread broadly across most of our markets. These increases were partially offset by a $10.6 million decrease in cash collections in Brazil, due in large part to variation in the foreign exchange rate and lower recent purchasing levels.

### Portfolio revenue

Portfolio revenue was as follows for the periods indicated (in thousands):

|  | First Quarter 2025 | 2024 | $ Change | % Change |
| --- | ---: | ---: | ---: | ---: |
| Portfolio income | $240,958 | $202,056 | $38,902 | 19.3% |
| Recoveries collected in excess of forecast | 16,500 | 35,838 | (19,338) | (54.0) |
| Changes in expected future recoveries | 11,422 | 15,836 | (4,414) | (27.9) |
| Changes in expected recoveries | 27,922 | 51,674 | (23,752) | (46.0) |
| Total portfolio revenue | $268,880 | $253,730 | $15,150 | 6.0% |

Total portfolio revenue was $268.9 million in Q1 2025, an increase of $15.2 million, or 6.0%, compared to $253.7 million in Q1 2024. Portfolio income increased $38.9 million, or 19.3%, driven largely by the impact of higher purchasing and improved pricing in the U.S. beginning in 2023, while changes in expected recoveries decreased $23.8 million. Recoveries collected in excess of forecast decreased $19.3 million due primarily to cash collections underperformance on our 2019-2023 U.S. Core pools in Q1 2025, compared to overperformance on most U.S. Core pools in Q1 2024. This decrease was partially offset by higher cash collections overperformance on our European pools. Changes in expected future recoveries decreased $4.4 million due largely to a lower net increase in the collections forecast on our Americas pools compared to Q1 2024.

### Operating expenses

Operating expenses were as follows for the periods indicated (in thousands):

|  | First Quarter 2025 | 2024 | $ Change | % Change |
| --- | ---: | ---: | ---: | ---: |
| Compensation and benefits | $73,323 | $73,597 | $(274) | (0.4)% |
| Legal collection costs | 33,394 | 26,691 | 6,703 | 25.1 |
| Legal collection fees | 15,230 | 12,112 | 3,118 | 25.7 |
| Agency fees | 21,368 | 19,723 | 1,645 | 8.3 |
| Professional and outside services | 21,103 | 25,050 | (3,947) | (15.8) |
| Communication | 10,477 | 12,578 | (2,101) | (16.7) |
| Rent and occupancy | 3,480 | 4,144 | (664) | (16.0) |
| Depreciation, amortization and impairment | 3,769 | 2,720 | 1,049 | 38.6 |
| Other operating expenses | 12,898 | 12,575 | 323 | 2.6 |
| Total operating expenses | $195,042 | $189,190 | $5,852 | 3.1% |

#### Legal collection costs

Legal collection costs consist primarily of costs paid to courts where a lawsuit is filed for the purpose of attempting to collect on an account. Q1 2025 costs increased $6.7 million, or 25.1%, compared to Q1 2024, primarily due to increased activity in our U.S. legal collections channel.

#### Legal collection fees

Legal collection fees represent contingent fees incurred for cash collections generated by our third-party attorney network. Q1 2025 fees increased $3.1 million, or 25.7%, compared to Q1 2024, mainly reflecting higher external legal collections within our U.S. Core portfolio.

#### Agency fees

Agency fees primarily represent third-party collection fees. Q1 2025 fees increased $1.6 million, or 8.3%, compared to Q1 2024, mainly due to higher fees paid to third-party debt collection agencies in the U.S.

#### Professional and outside services

Professional and outside services expense reflects amounts paid to third-party service providers and certain legal-related costs. Q1 2025 expense decreased $3.9 million, or 15.8%, compared to Q1 2024, mainly reflecting lower legal accruals and consulting fees in the U.S., partially offset by higher outsourcing and offshoring expenses in the U.S.

#### Communication

Communication expense relates mainly to correspondence, network and calling costs associated with our collection efforts. Q1 2025 expense decreased $2.1 million, or 16.7%, compared to Q1 2024, primarily due to a mix of lower-cost communications strategies utilized in our U.S. business in Q1 2025.

### Interest expense, net

Interest expense, net was as follows for the periods indicated (in thousands):

|  | First Quarter 2025 | 2024 | $ Change | % Change |
| --- | ---: | ---: | ---: | ---: |
| Interest on revolving credit facilities and term loan, and unused line fees | $36,582 | $33,956 | $2,626 | 7.7% |
| Interest on senior notes | 24,911 | 18,203 | 6,708 | 36.9 |
| Amortization of debt premium and issuance costs, net | 1,901 | 2,200 | (299) | (13.6) |
| Interest income | (2,424) | (2,081) | (343) | 16.5 |
| Interest expense, net | $60,970 | $52,278 | $8,692 | 16.6% |

Interest expense, net was $61.0 million in Q1 2025, an increase of $8.7 million, or 16.6%, compared to Q1 2024. The increase was primarily due to a higher average debt balance in the current year period to support higher levels of portfolio investments.

### Income tax expense

Income tax expense was as follows for the periods indicated (in thousands):

|  | First Quarter 2025 | 2024 | $ Change | % Change |
| --- | ---: | ---: | ---: | ---: |
| Income tax expense | $4,312 | $2,386 | $1,926 | 80.7% |
| Effective tax rate | 32.2% | 16.9% |  |  |

Income tax expense was $4.3 million in Q1 2025, an increase of $1.9 million, or 80.7%, compared to Q1 2024. The effective tax rate in Q1 2025 was 32.2% compared to 16.9% in Q1 2024. The increase was primarily due to changes in the mix of income from different taxing jurisdictions and the timing and amount of discrete items.

### Balance sheet

#### Finance receivables, net

Finance receivables, net were $4.3 billion as of March 31, 2025, an increase of $167.6 million, or 4.0%, compared to $4.1 billion as of December 31, 2024, driven largely by portfolio acquisitions of $291.7 million and foreign currency translation adjustments of $113.1 million, partially offset by recoveries collected and applied to Finance receivables, net of $265.1 million.

#### Goodwill

Goodwill was $420.7 million as of March 31, 2025, an increase of $24.3 million, or 6.1%, compared to $396.4 million as of December 31, 2024, due to foreign currency translation adjustments. As of March 31, 2025, goodwill consists primarily of $393.8 million in our Debt Buying and Collection ("DBC") reporting unit. We performed our most recent annual impairment review of the DBC reporting unit as of October 1, 2024, and concluded that goodwill was not impaired. As of March 31, 2025, our quarterly assessment did not identify the occurrence of any triggering events, and we determined our goodwill was not more-likely-than-not impaired. However, consistent with our most recent annual review, the DBC reporting unit may be at-risk for future impairment if our cash flow projections are not met or if market factors utilized in the impairment test were to deteriorate, including adverse changes in the debt sales market that impact our estimated purchasing volumes and purchase price multiples, an increase in the discount rate, or a sustained decline in our stock price.

#### Borrowings

Borrowings were $3.5 billion as of March 31, 2025, an increase of $139.5 million, or 4.2%, compared to $3.3 billion as of December 31, 2024. The increase was primarily due to incremental net borrowings under our North American and European revolving credit facilities of $102.0 million and $59.4 million, respectively, offset by net payments of $20.1 million on our United Kingdom ("UK") revolving credit facility.

### NON-GAAP FINANCIAL MEASURES

We report our financial results in accordance with U.S. generally accepted accounting principles ("GAAP"). However, our management also uses certain non-GAAP financial measures, including:

- Adjusted EBITDA, to evaluate our performance and to set performance goals; and
- ROATE, as a measure to monitor and evaluate operating performance relative to our equity.

#### Adjusted EBITDA

We present Adjusted EBITDA because we consider it an important supplemental measure of our operational and financial performance. Our management believes Adjusted EBITDA helps provide enhanced period-to-period comparability of our operational and financial performance, as it excludes certain items whose fluctuations from period-to-period do not necessarily correspond to changes in the operations of our business, 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. In addition, our calculation of Adjusted EBITDA may not be comparable to the calculation of similarly titled measures presented by other companies. Adjusted EBITDA is calculated starting with our GAAP financial measure, Net income attributable to PRA Group, Inc. and is adjusted for:

- income tax expense (or less income tax benefit);
- foreign exchange loss (or less foreign exchange gain);
- interest expense, net (or less interest income, net);
- other expense (or less other income);
- depreciation and amortization;
- impairment of real estate;
- net income attributable to noncontrolling interests; and
- recoveries collected and applied to Finance receivables, net less Changes in expected recoveries.

The following table provides a reconciliation of Net income attributable to PRA Group, Inc. as reported in accordance with GAAP to Adjusted EBITDA for the periods indicated (in thousands):

|  | Adjusted EBITDA Reconciliation Last Twelve Months Ended March 31, 2025 | Year Ended December 31, 2024 |
| --- | ---: | ---: |
| Net income attributable to PRA Group, Inc. | $70,785 | $70,601 |
| Adjustments: |  |  |
| Income tax expense | 22,958 | 21,032 |
| Foreign exchange loss | 287 | 9 |
| Interest expense, net | 237,959 | 229,267 |
| Other expense (1) | 825 | 851 |
| Depreciation and amortization | 11,010 | 10,792 |
| Impairment of real estate | 831 | — |
| Net income attributable to noncontrolling interests | 15,099 | 17,972 |
| Recoveries collected and applied to Finance receivables, net less Changes in expected recoveries | 824,238 | 787,028 |
| Adjusted EBITDA | $1,183,992 | $1,137,552 |

(1) Other expense reflects non-operating activities.

#### Return on average tangible equity

We use 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 our equity. Management believes ROATE is a useful financial measure for investors in evaluating the effective use of equity, and is an important component of our 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 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 our ROATE for the periods indicated (in thousands, except for ratio data):

|  | Balance as of Period End March 31, 2025 | March 31, 2024 | Average Tangible Equity Reconciliation (1) First Quarter 2025 | First Quarter 2024 |
| --- | ---: | ---: | ---: | ---: |
| Total stockholders' equity - PRA Group, Inc. | $1,219,108 | $1,129,326 | $1,177,070 | $1,148,219 |
| Less: Goodwill | 420,715 | 411,846 | 408,536 | 421,705 |
| Less: Other intangible assets | 1,488 | 1,666 | 1,471 | 1,704 |
| Average tangible equity |  |  | $767,063 | $724,810 |
| (1)Amounts represent the average balances for the respective periods. |  |  |  |  |
|  |  |  | **ROATE (2)** |  |
|  |  |  | **First Quarter 2025** | **First Quarter 2024** |
| Net income attributable to PRA Group, Inc. |  |  | $3,659 | $3,475 |
| Return on average tangible equity |  |  | 1.9% | 1.9% |

(2) Based on annualized Net income attributable to PRA Group, Inc.

### SUPPLEMENTAL PERFORMANCE DATA

The tables in this section provide supplemental performance data about our:

- ERC by geography, portfolio type and expected year of collection;
- Core cash collections separated between call center and other collections and legal collections, and constant currency adjusted cash collections;
- nonperforming loan portfolios and collections by geography, portfolio type and year of purchase; and
- U.S. portfolio purchases by major asset type and delinquency category.

The collections data presented reflects gross cash collections and does not reflect any costs to collect; therefore, it may not present relative profitability. The past performance of pools within certain geographies and portfolio types may not be comparable with other locations and portfolio types or indicative of future results. Customer payment patterns in all of the countries in which we operate can be affected by various factors, including general business and economic conditions, seasonal employment trends, income tax refunds and holiday spending habits.

#### Purchasing

We purchase portfolios of nonperforming loans from a variety of creditors, or acquire portfolios through strategic acquisitions, and segregate them into our Core or Insolvency portfolios, based on the status of the account upon acquisition. In addition, the accounts are segregated into geographical regions based upon where the account was acquired and, as applicable, foreign currency exchange rates are fixed for purposes of comparability in future periods. Ultimately, accounts are aggregated into annual pools based on portfolio type, geography and year of acquisition. Portfolios of accounts that were in an insolvency status at the time of acquisition are represented under Insolvency headings in the tables below. All other acquisitions of portfolios of accounts are included under Core headings. Once an account is initially segregated, it is not later transferred from an Insolvency pool to a Core pool, or vice versa.

#### Purchase price multiple

The purchase price multiple represents our estimate of total cash collections over the original purchase price of the portfolio. Purchase price multiples can vary over time due to a variety of factors, including pricing competition, supply levels, age of the accounts acquired, type and mix of portfolios purchased, expected costs to collect and returns, and changes in operational efficiency and effectiveness. When we pay more for a portfolio, the purchase price multiple and effective interest rate are generally lower. Certain types of accounts, such as Insolvency accounts, have lower collection costs, and we generally pay more for those types of accounts, which results in lower purchase price multiples but similar net income margins compared to other portfolio purchases.

#### ERC and TEC

Depending on the level of performance and expected future impacts from our operations, we may update ERC and TEC levels based on the results of our cash forecasting with a correlating adjustment to the purchase price multiple. We follow an established process to evaluate ERC, and we typically do not adjust our ERC and TEC until we gain sufficient collection experience with a pool of accounts. Over time, our TEC has often increased as pools have aged resulting in the ratio of TEC to purchase price for any given year of buying to gradually increase.

For additional information about our nonperforming loan portfolios, refer to Note 2 to our Consolidated Financial Statements included in Part I, Item 1 of this Quarterly Report.

### Estimated remaining collections

The following table displays our ERC by geography, year and portfolio for the 12 months ending March 31, (in thousands):

|  | ERC By Geography, Year and Portfolio Americas and Australia Core | Americas Insolvency | Total Americas and Australia (1) | Europe Core | Europe Insolvency | Total Europe (2) | Total |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| 2026 | $1,079,500 | $82,926 | $1,162,426 | $582,927 | $67,104 | $650,031 | $1,812,457 |
| 2027 | 830,034 | 63,295 | 893,329 | 488,602 | 48,209 | 536,811 | 1,430,140 |
| 2028 | 575,030 | 44,029 | 619,059 | 409,458 | 32,341 | 441,799 | 1,060,858 |
| 2029 | 391,893 | 24,916 | 416,809 | 349,819 | 19,359 | 369,178 | 785,987 |
| 2030 | 269,361 | 9,390 | 278,751 | 301,369 | 9,076 | 310,445 | 589,196 |
| 2031 | 187,578 | 1,165 | 188,743 | 261,338 | 3,164 | 264,502 | 453,245 |
| 2032 | 127,483 | 20 | 127,503 | 227,608 | 1,171 | 228,779 | 356,282 |
| 2033 | 87,771 | 3 | 87,774 | 198,979 | 590 | 199,569 | 287,343 |
| 2034 | 58,779 | 2 | 58,781 | 174,512 | 389 | 174,901 | 233,682 |
| 2035 | 38,894 | — | 38,894 | 153,077 | 113 | 153,190 | 192,084 |
| Thereafter | 77,399 | — | 77,399 | 526,213 | 246 | 526,459 | 603,858 |
| Total ERC | $3,723,722 | $225,746 | $3,949,468 | $3,673,902 | $181,762 | $3,855,664 | $7,805,132 |

(1) Reflects ERC of $3.5 billion for the U.S. and $491.6 million for other Americas and Australia.

(2) Reflects ERC of $1.6 billion for the UK, $990.2 million for Central Europe, $870.7 million for Northern Europe and $392.0 million for Southern Europe.

### Cash collections

The following table displays our cash collections by geography and portfolio, Core cash collections separated between call center and other collections and legal collections, and constant currency adjusted cash collections, for the periods indicated (in thousands):

| Americas and Australia | Cash Collections by Geography and Portfolio First Quarter 2025 |  | 2024 |  |
| --- | ---: | ---: | ---: | ---: |
| Call center and other | $160,251 | 55.6% | $154,453 | 60.1% |
| Legal | 127,909 | 44.4 | 102,408 | 39.9 |
| Core | 288,160 | 100% | 256,861 | 100% |
| Insolvency | 23,700 |  | 25,209 |  |
| Total Americas and Australia | $311,860 |  | $282,070 |  |
| Europe |  |  |  |  |
| Call center and other | $102,408 | 62.3% | $93,223 | 63.9% |
| Legal | 61,963 | 37.7 | 52,710 | 36.1 |
| Core | 164,371 | 100% | 145,933 | 100% |
| Insolvency | 21,205 |  | $21,515 |  |
| Total Europe | $185,576 |  | $167,448 |  |
| Total Company |  |  |  |  |
| Call center and other | 262,659 | 58.0% | 247,676 | 61.5% |
| Legal | 189,872 | 42.0 | 155,118 | 38.5 |
| Core | 452,531 | 100% | 402,794 | 100% |
| Insolvency | 44,905 |  | 46,724 |  |
| Total cash collections | $497,436 |  | $449,518 |  |
| Total cash collections adjusted (1) | $497,436 |  | $438,963 |  |

(1) Total cash collections adjusted refers to prior period foreign currency cash collections remeasured at average U.S. dollar exchange rates for the current period.

*Purchase Price Multiples as of March 31, 2025 In thousands*

| Purchase Period Americas and Australia Core | Purchase Price (1)(2) | Total Estimated Collections (3) | Estimated Remaining Collections (4) | Current Purchase Price Multiple | Original Purchase Price Multiple (5) |
| --- | ---: | ---: | ---: | ---: | ---: |
| 1996-2014 | $2,336,839 | $6,677,285 | $85,170 | 286% | 228% |
| 2015 | 443,114 | 927,707 | 42,421 | 209% | 205% |
| 2016 | 455,767 | 1,099,096 | 54,164 | 241% | 201% |
| 2017 | 532,851 | 1,227,754 | 84,362 | 230% | 193% |
| 2018 | 653,975 | 1,547,179 | 124,687 | 237% | 202% |
| 2019 | 581,476 | 1,319,705 | 111,295 | 227% | 206% |
| 2020 | 435,668 | 961,382 | 122,030 | 221% | 213% |
| 2021 | 435,846 | 736,278 | 221,820 | 169% | 191% |
| 2022 | 406,082 | 716,692 | 282,237 | 176% | 179% |
| 2023 | 622,583 | 1,227,308 | 745,906 | 197% | 197% |
| 2024 | 823,662 | 1,734,861 | 1,495,359 | 211% | 211% |
| 2025 | 165,428 | 360,600 | 354,271 | 218% | 218% |
| Subtotal | 7,893,291 | 18,535,847 | 3,723,722 |  |  |
| **Americas Insolvency** |  |  |  |  |  |
| 1996-2014 | 1,414,476 | 2,722,777 | 9 | 192% | 155% |
| 2015 | 63,170 | 88,173 | 9 | 140% | 125% |
| 2016 | 91,442 | 118,460 | 107 | 130% | 123% |
| 2017 | 275,257 | 359,185 | 624 | 130% | 125% |
| 2018 | 97,879 | 136,770 | 325 | 140% | 127% |
| 2019 | 123,077 | 167,034 | 1,045 | 136% | 128% |
| 2020 | 62,130 | 90,988 | 8,266 | 146% | 136% |
| 2021 | 55,187 | 74,324 | 15,857 | 135% | 136% |
| 2022 | 33,442 | 47,631 | 21,343 | 142% | 139% |
| 2023 | 91,282 | 119,326 | 75,553 | 131% | 135% |
| 2024 | 68,391 | 99,321 | 82,094 | 145% | 149% |
| 2025 | 12,952 | 20,687 | 20,514 | 160% | 160% |
| Subtotal | 2,388,685 | 4,044,676 | 225,746 |  |  |
| Total Americas and Australia | 10,281,976 | 22,580,523 | 3,949,468 |  |  |
| **Europe Core** |  |  |  |  |  |
| 1996-2014 | 814,553 | 2,680,717 | 385,242 | 329% | 205% |
| 2015 | 411,340 | 763,617 | 123,063 | 186% | 160% |
| 2016 | 333,090 | 586,213 | 145,522 | 176% | 167% |
| 2017 | 252,174 | 363,859 | 87,133 | 144% | 144% |
| 2018 | 341,775 | 560,664 | 166,556 | 164% | 148% |
| 2019 | 518,610 | 862,626 | 293,354 | 166% | 152% |
| 2020 | 324,119 | 589,876 | 227,352 | 182% | 172% |
| 2021 | 412,411 | 718,256 | 362,383 | 174% | 170% |
| 2022 | 359,447 | 586,653 | 404,395 | 163% | 162% |
| 2023 | 410,593 | 694,061 | 513,613 | 169% | 169% |
| 2024 | 451,786 | 815,610 | 774,971 | 181% | 180% |
| 2025 | 109,910 | 192,014 | 190,318 | 175% | 175% |
| Subtotal | 4,739,808 | 9,414,166 | 3,673,902 |  |  |
| **Europe Insolvency** |  |  |  |  |  |
| 2014 | 10,876 | 19,126 | — | 176% | 129% |
| 2015 | 18,973 | 29,542 | — | 156% | 139% |
| 2016 | 39,338 | 58,202 | 512 | 148% | 130% |
| 2017 | 39,235 | 52,302 | 453 | 133% | 128% |
| 2018 | 44,908 | 53,090 | 1,357 | 118% | 123% |
| 2019 | 77,218 | 114,075 | 8,122 | 148% | 130% |
| 2020 | 105,440 | 160,291 | 16,121 | 152% | 129% |
| 2021 | 53,230 | 76,576 | 18,621 | 144% | 134% |
| 2022 | 44,604 | 63,631 | 30,937 | 143% | 137% |
| 2023 | 46,558 | 65,421 | 45,502 | 141% | 138% |
| 2024 | 43,459 | 63,596 | 52,694 | 146% | 147% |
| 2025 | 4,994 | 7,546 | 7,443 | 151% | 151% |
| Subtotal | 528,833 | 763,398 | 181,762 |  |  |
| Total Europe | 5,268,641 | 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 year 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)*

*In thousands*

| Purchase Period Americas and Australia Core | March 31, 2025 (year-to-date) Cash Collections (2) | Portfolio Income (2) | Changes in Expected Recoveries (2) | Total Portfolio Revenue (2) | As of March 31, 2025 Net Finance Receivables (3) |
| --- | ---: | ---: | ---: | ---: | ---: |
| 1996-2014 | $11,587 | $5,208 | $6,052 | $11,260 | $28,588 |
| 2015 | 3,756 | 2,257 | (538) | 1,719 | 18,289 |
| 2016 | 4,794 | 2,925 | 406 | 3,331 | 20,128 |
| 2017 | 7,854 | 4,056 | 1,777 | 5,833 | 34,684 |
| 2018 | 13,926 | 6,122 | 1,997 | 8,119 | 63,730 |
| 2019 | 13,659 | 6,353 | (1,874) | 4,479 | 60,339 |
| 2020 | 15,569 | 6,683 | (1,597) | 5,086 | 67,290 |
| 2021 | 18,306 | 9,653 | (2,256) | 7,397 | 115,217 |
| 2022 | 25,886 | 11,365 | (315) | 11,050 | 169,095 |
| 2023 | 63,352 | 32,874 | (8,290) | 24,584 | 413,774 |
| 2024 | 103,139 | 66,232 | 8,837 | 75,069 | 775,565 |
| 2025 | 6,332 | 4,310 | 1,250 | 5,560 | 164,578 |
| Subtotal | 288,160 | 158,038 | 5,449 | 163,487 | 1,931,277 |
| **Americas Insolvency** |  |  |  |  |  |
| 1996-2014 | 258 | 9 | 250 | 259 | — |
| 2015 | 36 | 2 | 31 | 33 | 6 |
| 2016 | 57 | 6 | 12 | 18 | 95 |
| 2017 | 326 | 32 | 147 | 179 | 552 |
| 2018 | 351 | 14 | 127 | 141 | 302 |
| 2019 | 919 | 41 | (39) | 2 | 985 |
| 2020 | 3,273 | 315 | (254) | 61 | 7,780 |
| 2021 | 3,145 | 500 | (58) | 442 | 14,361 |
| 2022 | 2,801 | 609 | 162 | 771 | 18,374 |
| 2023 | 7,215 | 2,242 | (81) | 2,161 | 61,628 |
| 2024 | 5,146 | 2,947 | (1,852) | 1,095 | 58,849 |
| 2025 | 173 | 171 | 76 | 247 | 13,021 |
| Subtotal | 23,700 | 6,888 | (1,479) | 5,409 | 175,953 |
| Total Americas and Australia | 311,860 | 164,926 | 3,970 | 168,896 | 2,107,230 |
| **Europe Core** |  |  |  |  |  |
| 1996-2014 | 22,484 | 14,317 | 5,193 | 19,510 | 87,666 |
| 2015 | 7,291 | 2,947 | 3,749 | 6,696 | 60,970 |
| 2016 | 6,410 | 2,873 | 1,107 | 3,980 | 82,180 |
| 2017 | 3,858 | 1,444 | (1,566) | (122) | 58,090 |
| 2018 | 8,525 | 3,081 | 866 | 3,947 | 107,905 |
| 2019 | 15,087 | 4,885 | 3,312 | 8,197 | 197,307 |
| 2020 | 11,349 | 4,228 | 4,087 | 8,315 | 138,955 |
| 2021 | 15,145 | 6,323 | 2,524 | 8,847 | 219,283 |
| 2022 | 16,122 | 6,720 | (1,206) | 5,514 | 255,679 |
| 2023 | 22,895 | 9,421 | 1,828 | 11,249 | 307,010 |
| 2024 | 33,535 | 14,734 | 433 | 15,167 | 431,168 |
| 2025 | 1,670 | 475 | 549 | 1,024 | 109,374 |
| Subtotal | 164,371 | 71,448 | 20,876 | 92,324 | 2,055,587 |
| **Europe Insolvency** |  |  |  |  |  |
| 2014 | 34 | — | 34 | 34 | — |
| 2015 | 46 | — | 46 | 46 | — |
| 2016 | 159 | 21 | 131 | 152 | 133 |
| 2017 | 293 | 13 | 156 | 169 | 318 |
| 2018 | 471 | 29 | 94 | 123 | 1,186 |
| 2019 | 1,823 | 194 | 48 | 242 | 7,028 |
| 2020 | 4,602 | 396 | 481 | 877 | 14,915 |
| 2021 | 3,356 | 459 | 1,256 | 1,715 | 16,624 |
| 2022 | 3,572 | 764 | 510 | 1,274 | 25,950 |
| 2023 | 3,397 | 1,096 | 227 | 1,323 | 36,605 |
| 2024 | 3,350 | 1,549 | 18 | 1,567 | 37,729 |
| 2025 | 102 | 63 | 75 | 138 | 5,029 |
| Subtotal | 21,205 | 4,584 | 3,076 | 7,660 | 145,517 |
| Total Europe | 185,576 | 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 In millions*

| Purchase Period Americas and Australia Core | Purchase Price (2)(3) | Cash Collections 1996-2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Total |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| 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 |
| 2015 | 443.1 | — | 117.0 | 228.4 | 185.9 | 126.6 | 83.6 | 57.2 | 34.9 | 19.5 | 14.1 | 17.3 | 3.8 | 888.3 |
| 2016 | 455.8 | — | — | 138.7 | 256.5 | 194.6 | 140.6 | 105.9 | 74.2 | 38.4 | 24.9 | 24.0 | 4.8 | 1,002.6 |
| 2017 | 532.9 | — | — | — | 107.3 | 278.7 | 256.5 | 192.5 | 130.0 | 76.3 | 43.8 | 39.2 | 7.9 | 1,132.2 |
| 2018 | 654.0 | — | — | — | — | 122.7 | 361.9 | 337.7 | 239.9 | 146.1 | 92.9 | 75.9 | 13.9 | 1,391.0 |
| 2019 | 581.5 | — | — | — | — | — | 143.8 | 349.0 | 289.8 | 177.7 | 110.3 | 77.7 | 13.7 | 1,162.0 |
| 2020 | 435.7 | — | — | — | — | — | — | 132.9 | 284.3 | 192.0 | 125.8 | 87.0 | 15.6 | 837.6 |
| 2021 | 435.8 | — | — | — | — | — | — | — | 85.0 | 177.3 | 136.8 | 98.4 | 18.3 | 515.8 |
| 2022 | 406.1 | — | — | — | — | — | — | — | — | 67.7 | 195.4 | 144.7 | 25.9 | 433.7 |
| 2023 | 622.5 | — | — | — | — | — | — | — | — | — | 108.5 | 285.9 | 63.4 | 457.8 |
| 2024 | 823.7 | — | — | — | — | — | — | — | — | — | — | 145.9 | 103.1 | 249.0 |
| 2025 | 165.4 | — | — | — | — | — | — | — | — | — | — | — | 6.2 | 6.2 |
| Subtotal | 7,893.3 | 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** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| 1996-2014 | 1,414.5 | 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 |
| 2015 | 63.2 | — | 3.4 | 17.9 | 20.1 | 19.8 | 16.7 | 7.9 | 1.3 | 0.6 | 0.3 | 0.2 | — | 88.2 |
| 2016 | 91.4 | — | — | 18.9 | 30.4 | 25.0 | 19.9 | 14.4 | 7.4 | 1.8 | 0.9 | 0.6 | 0.1 | 119.4 |
| 2017 | 275.3 | — | — | — | 49.1 | 97.3 | 80.9 | 58.8 | 44.0 | 20.8 | 4.9 | 2.5 | 0.3 | 358.6 |
| 2018 | 97.9 | — | — | — | — | 6.7 | 27.4 | 30.5 | 31.6 | 24.6 | 12.7 | 2.5 | 0.4 | 136.4 |
| 2019 | 123.1 | — | — | — | — | — | 13.4 | 31.4 | 39.1 | 37.8 | 28.7 | 14.6 | 0.9 | 165.9 |
| 2020 | 62.1 | — | — | — | — | — | — | 6.5 | 16.1 | 20.4 | 19.5 | 17.0 | 3.3 | 82.8 |
| 2021 | 55.2 | — | — | — | — | — | — | — | 4.6 | 17.9 | 17.5 | 15.3 | 3.1 | 58.4 |
| 2022 | 33.4 | — | — | — | — | — | — | — | — | 3.2 | 9.2 | 11.1 | 2.8 | 26.3 |
| 2023 | 91.2 | — | — | — | — | — | — | — | — | — | 9.0 | 25.1 | 7.2 | 41.3 |
| 2024 | 68.4 | — | — | — | — | — | — | — | — | — | — | 12.1 | 5.1 | 17.2 |
| 2025 | 13.0 | — | — | — | — | — | — | — | — | — | — | — | 0.2 | 0.2 |
| Subtotal | 2,388.7 | 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 Australia | 10,282.0 | 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** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| 1996-2014 | 814.5 | 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 |
| 2015 | 411.3 | — | 45.8 | 100.3 | 86.2 | 80.9 | 66.1 | 54.3 | 51.4 | 40.7 | 33.8 | 30.4 | 7.3 | 597.2 |
| 2016 | 333.1 | — | — | 40.4 | 78.9 | 72.6 | 58.0 | 48.3 | 46.7 | 36.9 | 29.7 | 27.4 | 6.4 | 445.3 |
| 2017 | 252.2 | — | — | — | 17.9 | 56.0 | 44.1 | 36.1 | 34.8 | 25.2 | 20.2 | 17.9 | 3.9 | 256.1 |
| 2018 | 341.8 | — | — | — | — | 24.3 | 88.7 | 71.3 | 69.1 | 50.7 | 41.6 | 37.1 | 8.5 | 391.3 |
| 2019 | 518.6 | — | — | — | — | — | 48.0 | 125.7 | 121.4 | 89.8 | 75.1 | 68.2 | 15.1 | 543.3 |
| 2020 | 324.1 | — | — | — | — | — | — | 32.3 | 91.7 | 69.0 | 56.1 | 50.1 | 11.3 | 310.5 |
| 2021 | 412.4 | — | — | — | — | — | — | — | 48.5 | 89.9 | 73.0 | 66.6 | 15.1 | 293.1 |
| 2022 | 359.4 | — | — | — | — | — | — | — | — | 33.9 | 83.8 | 74.7 | 16.1 | 208.5 |
| 2023 | 410.6 | — | — | — | — | — | — | — | — | — | 50.2 | 103.1 | 22.9 | 176.2 |
| 2024 | 451.9 | — | — | — | — | — | — | — | — | — | — | 46.3 | 33.5 | 79.8 |
| 2025 | 109.9 | — | — | — | — | — | — | — | — | — | — | — | 1.7 | 1.7 |
| Subtotal | 4,739.8 | 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** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| 2014 | 10.9 | — | 4.3 | 3.9 | 3.2 | 2.6 | 1.5 | 0.8 | 0.3 | 0.2 | 0.2 | 0.2 | — | 17.2 |
| 2015 | 19.0 | — | 3.0 | 4.4 | 5.0 | 4.8 | 3.9 | 2.9 | 1.6 | 0.6 | 0.4 | 0.2 | — | 26.8 |
| 2016 | 39.3 | — | — | 6.2 | 12.7 | 12.9 | 10.7 | 7.9 | 6.0 | 2.7 | 1.3 | 0.8 | 0.2 | 61.4 |
| 2017 | 39.2 | — | — | — | 1.2 | 7.9 | 9.2 | 9.8 | 9.4 | 6.5 | 3.8 | 1.5 | 0.3 | 49.6 |
| 2018 | 44.9 | — | — | — | — | 0.6 | 8.4 | 10.3 | 11.7 | 9.8 | 7.2 | 3.5 | 0.5 | 52.0 |
| 2019 | 77.2 | — | — | — | — | — | 5.0 | 21.1 | 23.9 | 21.0 | 17.5 | 12.9 | 1.8 | 103.2 |
| 2020 | 105.4 | — | — | — | — | — | — | 6.0 | 34.6 | 34.1 | 29.7 | 25.5 | 4.6 | 134.5 |
| 2021 | 53.2 | — | — | — | — | — | — | — | 5.5 | 14.4 | 14.7 | 15.4 | 3.4 | 53.4 |
| 2022 | 44.6 | — | — | — | — | — | — | — | — | 4.5 | 12.4 | 15.2 | 3.6 | 35.7 |
| 2023 | 46.7 | — | — | — | — | — | — | — | — | — | 4.2 | 12.7 | 3.4 | 20.3 |
| 2024 | 43.4 | — | — | — | — | — | — | — | — | — | — | 9.5 | 3.3 | 12.8 |
| 2025 | 5.0 | — | — | — | — | — | — | — | — | — | — | — | 0.1 | 0.1 |
| Subtotal | 528.8 | — | 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 Europe | 5,268.6 | 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.

### LIQUIDITY AND CAPITAL RESOURCES

We actively manage our liquidity to meet our business needs and financial obligations.

### Sources of liquidity

#### Cash and cash equivalents

As of March 31, 2025, cash and cash equivalents totaled $128.7 million, of which $118.4 million was held by international operations with indefinitely reinvested earnings. For additional information about the unremitted earnings of our international subsidiaries, refer to Note 13 to our Consolidated Financial Statements in the 2024 Form 10-K.

#### Borrowings

As of March 31, 2025, we had the following committed amounts, borrowings and availability under our financing arrangements (in thousands):

|  | Committed Amount | Borrowings | Availability Based on Current ERC (1) | Additional Availability (2) | Total Availability |
| --- | ---: | ---: | ---: | ---: | ---: |
| North American revolving credit facility | $1,075,000 | $621,495 | $217,813 | $235,692 | $453,505 |
| UK revolving credit facility | 725,000 | 474,091 | 115,376 | 135,533 | 250,909 |
| European revolving credit facility | 829,641 | 615,133 | 204,650 | 9,858 | 214,508 |
| North American term loan | 467,611 | 467,611 | — | — | — |
| Senior notes | 1,298,000 | 1,298,000 | — | — | — |
| Debt premium and issuance costs, net | — | (10,255) | — | — | — |
| Total | $4,395,252 | $3,466,075 | $537,839 | $381,083 | $918,922 |

(1) Available borrowings after calculation of borrowing base, subject to the committed amounts and debt covenants, which may be used for general corporate purposes, including portfolio purchases.

(2) Subject to borrowing base and debt covenants, including advance rates ranging from 35-55% of applicable ERC.

#### Interest-bearing deposits

As of March 31, 2025, interest-bearing deposits totaled $187.7 million. Under our European revolving credit facility, our interest-bearing deposit funding is limited to SEK 2.2 billion (the equivalent of $219.3 million in U.S. dollars as of March 31, 2025).

### Uses of liquidity and material cash requirements

We believe that funds generated from our business activities, together with existing cash, available borrowings under our revolving credit facilities and access to the capital markets, will be sufficient to finance our operations, planned capital expenditures, forward flow purchase commitments, debt maturities and additional portfolio purchases for at least the next 12 months. Our long-term capital requirements will depend in large part on the level of nonperforming loan portfolios that we purchase.

Market conditions permitting, as we deem appropriate, we may seek to access the debt or equity capital markets or other sources of funding, and it may be necessary to raise additional funds to achieve our business objectives. Business acquisitions or higher than expected levels of portfolio purchasing could require additional financing. We may also from time-to-time repurchase senior notes in the open market or otherwise. We also have the ability to slow the purchase of nonperforming loans without significantly impacting current year collections.

#### Forward flows

We enter into forward flow agreements for the purchase of nonperforming loans. These agreements typically have terms ranging from six to 12 months, or they can be open-ended, and establish purchase prices and specific criteria for the accounts to be purchased. Some of the agreements establish a volume reference for the contract term in the form of a target or maximum, however, very few agreements establish a minimum contractual obligation, and many of the contracts contain early termination provisions allowing either party to cancel the agreements in accordance with a specified notice period.

As of March 31, 2025, we had forward flow agreements in place with an estimated purchase price of approximately $347.0 million over the next 12 months. This total can vary significantly based on the remaining terms and renewal dates of the agreements and is comprised of $258.0 million for the Americas and Australia and $89.0 million for Europe. 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. In addition to these agreements, we may also enter into new or renewed forward flow commitments and/or close on spot purchase transactions.

#### Borrowings

As of March 31, 2025, we had $3.5 billion in outstanding borrowings. The estimated interest, unused fees and principal payments for the next 12 months are $240.3 million, of which $10.0 million relates to principal on our term loan. After 12 months, principal payments on our debt are due from between one and five years. Many of our financing arrangements include covenants with which we must comply, and as of March 31, 2025, we were in compliance with these covenants.

For additional information about our borrowings, refer to Note 5 to our Consolidated Financial Statements included in Part I, Item 1 of this Quarterly Report.

#### Share repurchases

On February 25, 2022, our Board of Directors approved a share repurchase program under which we are authorized to repurchase up to $150.0 million of our outstanding common stock. The share repurchase program has no stated expiration date and does not obligate us to repurchase any specified amount of shares, remains subject to the discretion of our Board of Directors and, subject to compliance with applicable laws, may be modified, suspended or discontinued at any time.

Repurchases may be made from time-to-time in open market transactions, through privately negotiated transactions, in block transactions, through purchases made in accordance with trading plans adopted under Rule 10b5-1 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or other methods, subject to market and/or other conditions and applicable regulatory requirements. There were no repurchases during the first quarter of 2025, and as of March 31, 2025, we had $67.7 million remaining for share repurchases under the program. Repurchases are also subject to restrictive covenants contained in our credit facilities and the indentures that govern our senior notes.

#### Leases

Our leases have remaining terms from one to 8 years. As of March 31, 2025, we had $30.9 million in lease liabilities, of which $7.8 million is due within the next 12 months. For additional information, refer to Note 5 to our Consolidated Financial Statements in the 2024 Form 10-K.

#### Derivatives

We enter into derivative financial instruments to reduce our exposure to fluctuations in interest rates on variable rate debt and foreign currency exchange rates. As of March 31, 2025, we had $5.9 million of derivative liabilities, of which $0.2 million matures within the next 12 months. The remaining $5.7 million matures in 2028. For additional information, refer to Note 6 to our Consolidated Financial Statements included in Part I, Item 1 of this Quarterly Report.

#### Investments

As of March 31, 2025, we held $60.7 million in Swedish treasury securities to meet the liquidity requirements of the Swedish Financial Services Authority for our banking subsidiary, AK Nordic AB.

### Cash flow analysis

The following table summarizes our cash flow activity for the periods indicated (in thousands):

| Net cash provided by/(used in): | First Quarter 2025 | 2024 | $ Change |
| --- | ---: | ---: | ---: |
| Operating activities | $(52,580) | $(72,999) | $20,419 |
| Investing activities | (24,385) | 15,211 | (39,596) |
| Financing activities | 85,630 | 52,822 | 32,808 |
| Effect of foreign exchange rates | 14,216 | 861 | 13,355 |
| Net increase/(decrease) in cash, cash equivalents and restricted cash | $22,881 | $(4,105) | $26,986 |

#### Operating activities

Net cash used in operating activities mainly reflects the portion of our cash collections recognized as revenue and cash paid for operating expenses, interest and income taxes. It does not include cash collections applied to the negative allowance, which are classified as cash flows provided by investing activities. Net cash used in operating activities decreased $20.4 million compared to the prior year period, primarily due to higher cash collections recognized as income and a lower impact from foreign currency transactions, partially offset by higher cash paid for operating expenses and interest.

#### Investing activities

Net cash used in investing activities increased $39.6 million compared to the prior year period. The increase was primarily due to an increase of $43.8 million in purchases of nonperforming loan portfolios and an $8.9 million decrease in net cash flows from purchases and disposals of investments, partially offset by an increase of $13.5 million in recoveries collected and applied to Finance receivables, net.

#### Financing activities

Net cash provided by financing activities increased $32.8 million compared to the prior year period. The increase was primarily due to a $24.2 million increase in net proceeds from lines of credit, $4.1 million decrease in distributions to noncontrolling interests and $3.2 million increase in interest-bearing deposits.

#### Effect of foreign exchange rates

The net effect of exchange rates on cash increased $13.4 million compared to the prior year period. The increase was primarily due to the impact of U.S. dollar devaluation in Q1 2025 on our foreign currency denominated borrowings and intercompany balances.

### CRITICAL ACCOUNTING ESTIMATES

Our Consolidated Financial Statements have been prepared in accordance with GAAP. Some of our significant accounting policies require that we use estimates, assumptions and judgments that affect the reported amounts of revenues, expenses, assets and liabilities. We consider accounting estimates to be critical if they (1) involve a significant level of estimation uncertainty and (2) have had, or are reasonably likely to have, a material impact on our financial condition or results of operations. We base our estimates on historical experience, current trends and various other assumptions that we believe are reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. If these estimates differ significantly from actual results, the impact on our Consolidated Financial Statements may be material.

Our critical accounting estimates include revenue recognition on finance receivables, goodwill and income taxes. For a detailed description of our critical accounting estimates, refer to Part II, Item 7 "Management's Discussion and Analysis of Financial Condition and Results of Operations - Critical Accounting Estimates" in the 2024 Form 10-K.

### RECENT ACCOUNTING PRONOUNCEMENTS

For discussion of recent accounting pronouncements and the anticipated effects on our Consolidated Financial Statements, refer to Note 13 to our Consolidated Financial Statements included in Part I, Item 1 of this Quarterly Report.

### FREQUENTLY USED TERMS

We may use the following terms throughout this Quarterly Report:

- "Buybacks" refers to purchase price refunded by the seller due to the return of ineligible nonperforming loan accounts.
- "Cash collections" refers to collections on our nonperforming loan portfolios.
- "Cash receipts" refers to cash collections on our nonperforming loan portfolios, fees and revenue recognized from our class action claims recovery services.
- "Changes in expected recoveries" refers to the difference between actual recoveries collected compared to expected recoveries and the net present value of changes in estimated remaining collections.
- "Core" accounts or portfolios refer to accounts or portfolios that are nonperforming loans and are not in an insolvent status upon acquisition. These accounts are aggregated separately from insolvency accounts.
- "Estimated remaining collections" or "ERC" refers to the sum of all future projected cash collections on our nonperforming loan portfolios.
- "Finance receivables" or "receivables" refers to the negative allowance for expected recoveries recorded on our balance sheet as an asset.
- "Insolvency" accounts or portfolios refer to accounts or portfolios of nonperforming loans that are in an insolvent status when we purchase them and, as such, are purchased as a pool of insolvent accounts. These accounts include IVAs, Trust Deeds in the UK, Consumer Proposals in Canada and bankruptcy accounts in the U.S., Canada, Germany and the UK.
- "Negative allowance" refers to the present value of cash flows expected to be collected on our finance receivables.
- "Portfolio acquisitions" refers to all nonperforming loan portfolios acquired as a result of a purchase or added as a result of a business acquisition.
- "Portfolio purchases" refers to all nonperforming loan portfolios purchased in the normal course of business and excludes those added as a result of business acquisitions.
- "Portfolio income" reflects revenue recorded due to the passage of time using the effective interest rate calculated based on the purchase price of nonperforming loan portfolios and estimated remaining collections.
- "Purchase price" refers to the cash paid to a seller to acquire nonperforming loans.
- "Purchase price multiple" refers to the total estimated collections on our nonperforming loan portfolios divided by purchase price.
- "Recoveries collected" refers to cash collections plus buybacks and other adjustments.
- "Total estimated collections" or "TEC" refers to actual cash collections plus estimated remaining collections on our nonperforming loan portfolios.

## Market risk

As filed, 797 characters.

Our business is subject primarily to interest rate and foreign currency risk. Our exposure to these risks, as described in Part II, Item 7A in the 2024 Form 10-K, has not changed materially since December 31, 2024.

#### Interest rate exposure

Of our $3.5 billion in total borrowings as of March 31, 2025, $1.3 billion was fixed rate debt. Considering these fixed rate borrowings and the interest rate hedges on our variable rate debt, with maturities ranging from two months to five years, as of March 31, 2025, 58% of our total debt was either fixed rate or converted to a fixed rate.

#### Foreign currency exposure

We operate internationally and enter into transactions denominated in various foreign currencies. During Q1 2025, our revenues from operations outside the U.S. were $133.2 million.

## Controls and procedures

As filed, 1,984 characters.

*Evaluation of Disclosure Controls and Procedures.* We maintain disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) that are designed to ensure that information required to be disclosed in our Exchange Act reports is recorded, processed, summarized and reported within the time periods specified in the SEC's rules and forms, and that such information is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure. In designing and evaluating the disclosure controls and procedures, management recognized that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives, and management necessarily was required to apply its judgment in evaluating the cost-benefit relationship of possible controls and procedures. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions or that the degree of compliance with the policies or procedures may deteriorate. We conducted an evaluation, under the supervision and with the participation of our principal executive officer and principal financial officer, of the effectiveness of our disclosure controls and procedures as of the end of the period covered by this Quarterly Report. Based on this evaluation, the principal executive officer and principal financial officer have concluded that, as of March 31, 2025, our disclosure controls and procedures were effective.

*Changes in Internal Control over Financial Reporting.* There was no change in our internal control over financial reporting that occurred during the quarter ended March 31, 2025, that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

Filed May 9, 2025.
Source: SEC EDGAR, the filing index for accession 0001185348-25-000012. Last ingested by Listed: Nov 5, 2026, 17:04 ET. No prices; not investment advice.