PRA Group (PRAA) investor relations material

Executive summary

• Q1 2026 saw cash collections rise 11% year-over-year to $551.9 million, with strong momentum in both U.S. and European operations and continued execution of the PRA 3.0 strategy focused on technology modernization, capital allocation, and talent development.

• Net income attributable to shareholders increased to $28.2 million, up over $24.6 million year-over-year, and Adjusted EBITDA for the last 12 months reached $1.35 billion, a 13.9% increase.

• Disciplined portfolio purchasing continued, with $220.9 million invested globally in Q1, focusing on net returns and selective entry into adjacent segments.

• The company maintained a diversified capital structure and refinanced its European revolving credit facility, extending maturity to 2027 and then to April 2031.

• Share repurchases totaled $10 million during the quarter, with $37.7 million remaining authorized.

Financial highlights

• Total revenues for Q1 2026 were $314.5 million, up 16.7% year-over-year, with portfolio income rising 11.9% to $269.6 million.

• Cash collections reached $551.9 million, up 11% year-over-year; digital channel collections grew 19%.

• Operating expenses increased 8.3% to $211.3 million, mainly due to higher legal collection costs.

• Net interest expense rose to $63.5 million, reflecting higher average debt balances.

• Diluted EPS was $0.73 for the quarter, up from $0.09 year-over-year.

Outlook and guidance

• Portfolio supply is expected to remain stable in the U.S. and Europe over the next 12–18 months.

• Targeting $1.0–$1.3 billion in annual portfolio purchases over the next 2–3 years, with net leverage trending toward mid-2x.

• Management expects continued progress on the PRA 3.0 strategy, including technology upgrades and global AI initiatives.

• Forward flow commitments for portfolio purchases total $321.8 million over the next 12 months.

• Effective tax rate for the quarter was 21.6%, with expectations in the mid-to-high 20s for 2026.