PRA Group (NasdaqGS:PRAA) Q4 2025 Earnings call February 26, 2026 05:00 PM ET Company ParticipantsMartin Sjolund - President and CEONajim Mostamand - Vice President of Investor RelationsRakesh Sehgal - EVP and CFOConference Call ParticipantsDavid Scharf - AnalystMark Hughes - AnalystRobert Dodd - AnalystOperatorGood evening, and welcome to PRA Group's fourth quarter and full year 2025 conference call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specia ...

Financial Data and Key Metrics Changes - In 2025, the company purchased $1.2 billion of portfolios, marking the third highest investment year on record, and driving estimated remaining collections (ERC) to a record $8.6 billion, up 15% year-over-year [4][12] - Cash collections reached a new record of $2.1 billion, reflecting a 13% growth for the year, exceeding the high single-digit growth target [5][14] - Adjusted net income increased to $73 million in 2025, with adjusted EBITDA rising 16% to $1.3 billion, outpacing cash collections growth [5][25] Business Line Data and Key Metrics Changes - U.S. legal cash collections grew 28% to $483 million in 2025, significantly contributing to overall cash collections [14][16] - Portfolio income, a stable revenue component, grew 18% for the full year to $1 billion, a company record, and increased by 34% compared to 2023 [17][22] - Legal accounted for 48% of U.S. core cash collections in 2025, up from 39% two years ago, indicating a shift towards more legal collections [16] Market Data and Key Metrics Changes - The U.S. accounted for 42% of ERC, while Europe accounted for 51%, showcasing a well-diversified portfolio that mitigates risks from economic cycles [12] - The replenishment rate needed to maintain current ERC levels was $982 million, with U.S. credit card balances at $1.1 trillion and industry-wide charge-off rates above 4% [13] Company Strategy and Development Direction - The company is evolving into a technology-enabled global allocator of capital, focusing on disciplined investments, operational efficiency, and leveraging technology [29][30] - The strategy includes modernizing operations, enhancing data analytics, and utilizing AI to improve collection processes and customer engagement [34][35] - The company aims to maintain a conservative balance sheet with ample liquidity and explore alternative funding mechanisms [31][32] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in entering 2026 with strong momentum, driven by good cash performance and operational improvements [50] - The competitive landscape in Europe remains stable, with opportunities for capital deployment despite pricing pressures in certain markets [55][56] - The focus remains on improving cash collections while managing costs effectively, with expectations for adjusted EBITDA to continue growing [64][68] Other Important Information - The company repurchased $20 million of its stock in 2025, with an additional $50 million remaining under board authorization for future buybacks [27][61] - The net leverage ratio decreased from 2.9x in 2024 to 2.7x at the end of 2025, indicating a reduction in debt levels [10][25] Q&A Session Summary Question: What are the top three initiatives to focus on? - Management highlighted the importance of disciplined capital investment, creating cost flexibility, and leveraging technology, particularly AI, as key initiatives [42][45] Question: Can you share details on new asset classes being considered? - Management refrained from specifics but indicated interest in adjacent asset classes that align with their capabilities and operational strengths [46][47] Question: How should collections be viewed in 2026? - Management noted strong momentum entering 2026, with expectations for cash collections to grow, albeit at a slower rate than in 2025 [50][51] Question: What is the competitive dynamic in Europe? - Management described the European market as competitive but stable, with opportunities for capital deployment based on diversification [55][56] Question: What has driven recent improvements in collections? - Management attributed improvements to several years of initiatives, including investments in legal collections and digital channels, as well as the use of AI for data processing [57][59] Question: How far can the expense structure be made variable? - Management indicated a mixed approach, balancing in-house collections with external debt collection agencies to maintain flexibility and cost-effectiveness [70][72]

PRA Group Q4 and FY 2025 Conference Call Presentation Nasdaq: PRAA Forward-Looking Statements Statements in this presentation, other than statements of historical fact, are forward-looking statements, which are based on our current beliefs, projections, assumptions and expectations concerning future operations and financial performance. Such statements involve uncertainties and risks, some of which are not currently known to us, and may be superseded by future events that could cause actual results to diffe ...

NORFOLK, Va., February 26, 2026 - PRA Group, Inc. (Nasdaq: PRAA) (the "Company" or "PRA"), a global leader in acquiring and collecting nonperforming loan portfolios, today reported its financial results for the fourth quarter ("Q4 2025") and full year of 2025. Q4 2025 Highlights Full Year 2025 Highlights 1. Cash efficiency ratio is 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 r ...

February 2026 Investor Presentation A Global Leader in Acquiring and Collecting Nonperforming Loans Forward-Looking Statements Statements in this presentation, other than statements of historical fact, are forward-looking statements, which are based on our current beliefs, projections, assumptions and expectations concerning future operations and financial performance. Such statements involve uncertainties and risks, some of which are not currently known to us, and may be superseded by future events that co ...

Key Takeaways PRA Group is set to report Q4 results with EPS expected up 6.4% and revenues rising 3.7% year over year.PRAA's cash collections are expected to climb 10.4%, portfolio income to jump 14.3% from last year.Higher legal and operating costs, plus weaker recoveries, may limit PRA Group's earnings upside.Nonperforming loan portfolio acquirer, PRA Group, Inc. (PRAA) , is set to report its fourth-quarter 2025 results on Feb. 26, 2026, after the closing bell. The Zacks Consensus Estimate for the to-be-r ...

PRA Group to Present at the Raymond James 47th Annual Institutional Investors Conference on Tuesday, March 3 [Accessibility Statement] Skip NavigationNORFOLK, Va., Feb. 24, 2026 /PRNewswire/ -- PRA Group, Inc. (Nasdaq: PRAA) (the "Company" or "PRA"), a global leader in acquiring and collecting nonperforming loan portfolios, announced today that management is scheduled to present to investors attending the Raymond James 47th Annual Institutional Investor Conference in Orlando, Florida, on Tuesday, March 3, 2 ...

PRA Group to Announce Fourth Quarter and Full Year 2025 Results on February 26 [Accessibility Statement] Skip NavigationNORFOLK, Va., Feb. 23, 2026 /PRNewswire/ -- PRA Group, Inc. (Nasdaq: PRAA), a global leader in acquiring and collecting nonperforming loan portfolios, will report its fourth quarter and full year 2025 results, as well as share its longer-term strategy and outlook, after market close on Thursday, February 26, 2026, followed by a webcast and conference call at 5 p.m. E.T.To listen to PRA Gro ...

Company Overview - PRA Group, Inc is a global specialty finance company focused on acquiring and managing nonperforming loans, founded in 1996 as Portfolio Recovery Associates [4] - The company purchases defaulted consumer and commercial receivables at discounted rates from financial institutions, utilities, and other creditors [4] - PRA Group's core activities include first-party and third-party collections across various asset classes such as credit cards, auto loans, and utility receivables [5] Stock Performance - Shares of PRA Group (NASDAQ: PRAA) opened at $11.35, with a market cap of $442.82 million [1] - The stock has a 50-day simple moving average of $16.04 and a 200-day simple moving average of $15.76 [1] - The stock has experienced a 12-month low of $10.99 and a high of $23.97 [1] Analyst Ratings - Truist Financial lowered its price target on PRA Group from $33.00 to $26.00 while maintaining a "buy" rating [2] - Citigroup downgraded PRA Group from "outperform" to "market perform" [2] - The average rating for PRA Group is currently "Hold" with an average price target of $25.00 [2] Institutional Investment - Tower Research Capital LLC increased its position in PRA Group by 375.1% in the second quarter, now owning 4,784 shares valued at $71,000 [3] - Other institutional investors, including Globeflex Capital L P and iSAM Funds UK Ltd, have also acquired new positions in PRA Group, with investments ranging from approximately $102,000 to $160,000 [3] - 97.22% of PRA Group's stock is currently owned by institutional investors and hedge funds [3]

Core Viewpoint - PRA Group, Inc. is expanding its operations by opening a new office in Uptown Charlotte, marking a strategic move into a rapidly growing financial market [1][2]. Group 1: Expansion Details - The new office will be located in One South, a prominent 40-story office tower at the intersection of Trade and Tryon, and is set to open in early February 2026 [1]. - Charlotte will become a talent hub for PRA Group, joining other locations such as London, Oslo, and Warsaw, chosen for its strong financial services talent base and quality of life [2]. Group 2: Strategic Importance - The decision to establish a presence in Charlotte is influenced by the area's long-term economic growth and convenient access to a major international airport [2]. - PRA Group aims to leverage its talent hubs to access skilled professionals and foster collaboration among cross-functional teams [3]. Group 3: Company Overview - PRA Group, Inc. specializes in acquiring and collecting nonperforming loans, helping to return capital to banks and creditors, thereby enhancing financial services for consumers across the Americas, Europe, and Australia [3]. - The company has a global workforce and focuses on resolving debt for customers through collaboration [3].