PRA Group, Inc. · NASDAQ:PRAA
PRA — Investor Presentation (November 2025)
46 slides from PRA's investor presentation, November 2025
Slide 1: November 2025 Investor Presentation
November 2025 Investor Presentation A Global Leader in Acquiring and Collecting Nonperforming Loans
Slide 2: Forward-Looking Statements
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 unce
Slide 3: Agenda
Agenda Company Overview Investment Thesis Financial Performance Appendix 2 Nasdaq: PRAA
Slide 4: We Are a Global Leader in Acquiring and Collecting Nonperforming Loans (NPLs)
We Are a Global Leader in Acquiring and Collecting Nonperforming Loans (NPLs) ✓ 25+ years in business, led by highly experienced $1.3B $2.0B management team LTM Portfolio LTM Cash Purchases Collections ✓ A leading acquirer and collector of NPLs across 5% YoY Growth 13% YoY Growth 18 countries ✓ Key
Slide 5: Our Operating Principles Have Shaped How We Do Business Across Market Cycles
Our Operating Principles Have Shaped How We Do Business Across Market Cycles Invest with • Assess investments objectively and price them Discipline to achieve attractive returns Focus on • Operate the business with a Drive Creating Value • Maximize the cash collected long-term orientation that Opera
Slide 6: Serving a Core Part of the Consumer Credit Ecosystem
Serving a Core Part of the Consumer Credit Ecosystem We Specialize in Purchasing Portfolios at Attractive Returns & Collecting Efficiently Account is PRA purchases a Creditor If Consumers managed portfolio of PRA works to extends unresolved, become internally or charged-off resolve credit to account
Slide 7: We Use Data & Analytics to Underwrite Portfolios and Determine the Most Efficient Collection Strategy
We Use Data & Analytics to Underwrite Portfolios and Determine the Most Efficient Collection Strategy Underwriting Operational Analytics • Underwriting multi-year future collections and • Aiming to optimize customer engagement – costs tailoring collection efforts based on customers’ ability and will
Slide 8: Agenda
Agenda Company Overview Investment Thesis Financial Performance Appendix 7 Nasdaq: PRAA
Slide 9: A Strong Foundation for Value Creation
A Strong Foundation for Value Creation Multiple Catalysts to Drive Value 1 2 3 4 5 6 Strong Geographically Deep global Strong Optimizing Moderate leadership diversified seller European U.S. business leverage team with business in 18 relationships business with significant and ample decades of countr
Slide 10: Deep Expertise and Industry Experience to Drive Improved Results
1 Deep Expertise and Industry Experience to Drive Improved Results Martin Sjolund Rakesh Sehgal LaTisha Tarrant Owen James President & Chief Financial Officer General Counsel and President, Chief Executive Officer Chief Human PRA Group Europe Resources Officer Steve Macke Jan Husby Adrian Murphy Kei
Slide 11: ERC and Cash Collections Are Well Diversified
2 ERC and Cash Collections Are Well Diversified Portfolio Purchases1 ERC2 Cash Collections1 39% $1.3 45% $8.4 $2.0 50% 50% 55% billion billion billion 61% Americas Europe 1. Last twelve months ended September 30, 2025. 2. Reflects ERC of $3.6 billion for the U.S., $515.8 million for other Americas a
Slide 12: Stable Customer Profile
2 Stable Customer Profile Global and Channel Diversification Help Mitigate Potential Collections Impact 48% 43% Total Core Cash of Total Core Collections from Collections from Outside the U.S. Global Legal Channel ✓ One of the most ✓ Provides longer time period geographically diverse debt to collect
Slide 13: Strong Track Record Through Credit Cycles
2 Strong Track Record Through Credit Cycles $ in millions Global Financial Crisis1 COVID-192 +7% $1,408 $1,326 $1,241 $1,154 $1,109 $1,118 $964 $905 $905 $972 $850 $657 $705 $367 $408 $470 Portfolio $264 $280 $289 $112 Purchases3 +11% $2,006 $2,062 $2,044 $1,841 $1,729 $1,660 $1,869 $1,539 $1,492 $1
Slide 14: Disciplined & Diversified Purchaser of NPLs With Long Track Record
2 Disciplined & Diversified Purchaser of NPLs With Long Track Record Diversified set of markets enables us to be Disciplined investment process and selective in our investments experienced underwriters Americas Total Portfolio Purchases $ in millions Europe • Experienced underwriting teams $1,408 $1
Slide 15: Over Time We Generally Collect More Than We Underwrite, Leading to PPM Expansion
2 Over Time We Generally Collect More Than We Underwrite, Leading to PPM1 Expansion Americas Core PPMs1 Europe Core PPMs1 Key Highlights ✓ Strong track record of cash 250% 250% overperformance has driven “COVID Vintages”2 expansion of multiples 200% ✓ Americas Core original PPMs on newer vintages no
Slide 16: Continued Favorable Supply Across the U.S. and Europe
3 Continued Favorable Supply Across the U.S. and Europe Current Environment PRA’s Competitive Advantage • Healthy supply with attractive pricing • Key buyer in the world’s largest NPL market dynamics • Strong seller relationships with a focus on further • Stable competitive landscape expanding selle
Slide 17: U.S. Supply Remains Elevated Due to High Credit Card Balances & Charge-Off Rates
3 U.S. Supply Remains Elevated Due to High Credit Card Balances & Charge-Off Rates U.S. Credit Card Balances1 and Charge-Off Rates2 $ in billions $1,200 10% Key highlights $1,045 9% $1,000 8% ✓ U.S. credit card balances up 7% 26% since pre-pandemic $800 6% (end of 2019) $600 5% 4% ✓ Charge-off rates
Slide 18: Strong, Differentiated European Business with Consistent ERC & Collections Growth
4 Strong, Differentiated European Business with Consistent ERC & Collections Growth PRA Europe ERC1 $5.0 CAGR: +7% $4.2 $4.0 $3.4 $3.6 Key highlights $2.9 $3.2 $3.1 $3.0 $3.0 $2.4 $2.5 $2.0 $2.1 $2.0 ✓ Experienced and tenured management $1.0 $0.0 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Q3
Slide 19: Europe's Transformation Under Martin's Leadership
4 Europe’s Transformation Under Martin’s Leadership Pre-2018 Now • Low-cost, front-line mass dialing • Focus on talent, technology, digital, and data & analytics • Multiple contact platforms across various markets • One standard, cloud-based omni-channel contact platform • No customer chat or text,
Slide 20: Three Strategic Pillars for Improving the Results of U.S. Business
5 Three Strategic Pillars for Improving the Results of U.S. Business Optimizing Operational Managing Enhanced Value Investments Execution Expenses Balance portfolio returns Maximize cash collected Optimize cost structure and leverage per dollar invested and drive efficiency 19 Nasdaq: PRAA
Slide 21: Delivered Strong Progress in First 100 Days Under New CEO
5 Delivered Strong Progress in First 100 Days Under New CEO Putting in Place the Foundation for Improved Performance Priority Themes Accomplishments & Progress 1 Cost Efficiency • • Review corporate and overhead costs Optimize costs across operations ✓ Eliminated 115+ corporate and overhead roles, r
Slide 22: Deep Dive Analysis of Our U.S. Vintages
5 Deep Dive Analysis of Our U.S. Vintages Americas Core PPMs2 • Conducted regular quarterly reforecasting U.S. “COVID vintages”1 250% “COVID process plus deep dive 10% of global ERC Vintages” analysis of U.S. 200% vintages 2% • Focused on the 150% 2% U.S. “COVID 15 16 17 18 19 20 21 22 23 24 25 6% v
Slide 23: Diversified and Strong Capital Structure
6 Diversified and Strong Capital Structure Recent Eurobond Provided Access to New Investor Base and Rebalanced Secured/Unsecured $ in millions Debt Maturity Profile • $1.2 billion available under credit facilities as of September 30, 2025 $1,768 • $889 million available based on current ERC • $301 m
Slide 24: Driving Value Through Disciplined Capital Allocation Strategy
6 Driving Value Through Disciplined Capital Allocation Strategy Capital Allocation Strategy Portfolio Return Capital Strategic M&A Purchases to Shareholders • Disciplined • Balance with • If, and when, investments at portfolio appropriate attractive returns purchases, investments in • Very selective
Slide 25: Agenda
Agenda Company Overview Investment Thesis Financial Performance Appendix 24 Nasdaq: PRAA
Slide 26: Q3 2025 Highlights
Q3 2025 Highlights Selective Buying, Double-Digit Growth in Cash-Based Metrics & Decreasing Leverage $ in millions Portfolio Purchases Cash Collections, Cash Efficiency Ratio1 and Adjusted Cash Efficiency Ratio1 Goodwill Impairment -27% $433 +14% $350 $292 $347 • $413 million non-recurring, $255 $47
Slide 27: Continued Purchasing Discipline with Purchase Price Multiples
Continued Purchasing Discipline with Purchase Price Multiples (PPMs)1 Up Significantly Vs. 2023 and Stable in Recent Periods Core Quarterly PPMs1 and Portfolio Portfolio Purchases Purchases 1 2 Consolidated ERC2 ERC3 Q1 2023: 2024: YTD 2025: Core PPM 1.72x 1.80x 1.88x Q1 2023: 2024: YTD 2025: +15% 1
Slide 28: Strong Global Execution Driven by U.S. Legal Cash Collections
Strong Global Execution Driven by U.S. Legal Cash Collections $ in millions Total Cash Collections U.S. Legal Collections Channel ✓ Total cash collections growth of 14%; U.S. legal cash +14% collections growth of 27% +14% +89% +27% $536 $542 $477 $497 $474 $125 ✓ Legal is an important channel $420 $
Slide 29: Continued Portfolio Income Growth Drove 12% Portfolio Revenue Growth
Continued Portfolio Income Growth Drove 12% Portfolio Revenue Growth $ in millions Portfolio Income Portfolio Income Changes in Expected Recoveries +36% +20% Portfolio Revenue1 $251 $259 $241 +12% $230 $216 $202 $209 $283 $277 $285 $269 $284 $310 $188 $184 $190 $195 $254 $151 $205 $212 $217 Collecte
Slide 30: Adjusted Net Income Remained Stable
Adjusted Net Income Remained Stable Higher Multiples, Strong Performance and Efficiency, and Disciplined Expense Management $ in millions $281 $293 $288 $311 $270 Revenues • Revenue growth driven primarily by stable and predictable portfolio income $627 Operating $191 $199 $195 $203 • Adjusted opera
Slide 31: Adjusted EBITDA Continued to Grow, Supporting De-leveraging Over the Past Year
Adjusted EBITDA Continued to Grow, Supporting De- leveraging Over the Past Year $ in millions Borrowings $3,466 $3,614 $3,607 +15% $1,240 $1,265 $1,138 $1,184 $1,065 $1,100 $1,015 $998 $1,007 $1,044 $993 2.87x 2.83x 2.81x 2.82x 2.81x 2.78x 2.73x 2.78x 2.77x 2.73x 2.65x 2.73x3 3/31 6/30 9/30 12/31 3/
Slide 32: Successful Execution in First 100 Days Under New CEO with Momentum Heading into 2026
Successful Execution in First 100 Days Under New CEO with Momentum Heading into 2026 ✓ Continued strong European performance ✓ Restructured U.S. operations ✓ Eliminated 250+ roles, including 115+ corporate and overhead roles ✓ Made progress on establishing new talent hub in Charlotte ✓ Completed ret
Slide 33: Agenda
Agenda Company Overview Investment Thesis Financial Performance Appendix 32 Nasdaq: PRAA
Slide 34: One of the Largest and Most Established Debt Buyers
One of the Largest and Most Established Debt Buyers Disciplined Organic and Inorganic Growth Through Multiple Credit Cycles 2004 2008 2023 2025 1996 Diversified U.S. Navigated Vik Atal Martin Sjolund Founded by portfolio into Global Financial 2014 2018 appointed CEO, appointed CEO, Steve acquisition
Slide 35: Our Mission & Core Values
Our Mission & Core Values OUR MISSION To deliver nonperforming loan solutions that drive success through a long-term focus and customer care to always doing for our actions in our in every because we our best work interactions situation work together with each other as a team 34 Nasdaq: PRAA
Slide 36: Understanding PRA Group Financials
Understanding PRA Group Financials Total Portfolio Revenue has two components: Total Portfolio Revenue • Portfolio Income is the yield component • Changes in Expected Recoveries is current period over/underperformance + NPV of ERC changes Portfolio Income Changes in Expected Recoveries Effective int
Slide 37: The Basis of Portfolio Income
The Basis of Portfolio Income If Cash is Collected as Expected in Original Underwriting 1. Purchase of Portfolio • Purchase Price of $1,000 with Total Estimated Collections of $2,200 = Purchase Price Multiple of 2.20x • Effective Interest Rate (EIR) = 28.8% (Gross IRR of purchase price and projected
Slide 38: What Happens When Cash IS NOT Collected As Expected
What Happens When Cash IS NOT Collected As Expected There is Always Some Level of Changes in Expected Recoveries Collecting More Cash Than Expected Collecting Less Cash Than Expected (Overperformance) (Underperformance) • Cash in excess of expectations is recognized as an increase • Cash lower than
Slide 39: How Cash Overperformance Can Lead to Same Lifetime Collections as Portfolio With No Overperformance
How Cash Overperformance Can Lead to Same Lifetime Collections as Portfolio With No Overperformance Total Cash Collected Over the Entire Collections Curve Per $1,000 Invested $2,400 $2,400 $0 $400 Original Final Original Final PPM PPM $2,400 PPM PPM 2.4x 2.4x $2,000 2.0x 2.4x No Overperformance 20%
Slide 40: Non-GAAP Financial Measures
Non-GAAP Financial Measures The Company reports its financial results in accordance with U.S. generally accepted accounting principles (GAAP). However, management uses certain non-GAAP financial measures, including Adjusted EBITDA, internally to evaluate the Company’s performance and to set performa
Slide 41: Reconciliation of Net Income/(Loss) to Adjusted EBITDA and Calculation of Net Leverage
Reconciliation of Net Income/(Loss) to Adjusted EBITDA and Calculation of Net Leverage $ in millions Use of Non-GAAP Financial Measures Set forth below is a reconciliation of net income/(loss), the most directly comparable financial measure calculated and reported in accordance with GAAP, to Adjuste
Slide 42: Reconciliation of Net Income/(Loss) to Adjusted EBITDA (Cont.)
Reconciliation of Net Income/(Loss) to Adjusted EBITDA (Cont.) $ in millions Use of Non-GAAP Financial Measures Set forth below is a reconciliation of Net income/(loss) attributable to PRA Group, Inc., the most directly comparable financial measure calculated and reported in accordance with GAAP, to
Slide 43: Calculation of Adjusted Cash Efficiency Ratio
Calculation of Adjusted Cash Efficiency Ratio Use of Non-GAAP Financial Measures The following table provides a reconciliation of Total operating expenses to Adjusted operating expenses and presents the Company's Adjusted cash efficiency ratios for the periods indicated (in thousands, except for rat
Slide 44: Reconciliation of Total Stockholders' Equity to Average Tangible Equity and Adjusted Net Income
Reconciliation of Total Stockholders’ Equity – PRA Group, Inc. to Average Tangible Equity and Reconciliation of Net Income/(Loss) Attributable to PRA Group, Inc. to Adjusted Net Income Attributable to PRA Group, Inc. Use of Non-GAAP Financial Measures The following table provides a reconciliation of
Slide 45: U.S. Portfolio Acquisitions by Major Asset Type & Delinquency Category
U.S. Portfolio Acquisitions by Major Asset Type & Delinquency Category $ in thousands 2024 2025 Major Asset Type Q3 % Q4 % Q1 % Q2 % Q3 % Major Credit Cards 128,420 56% $ 87,477 51% 73,486 46% 99,192 54% 74,171 55% Private Label Credit Cards 96,733 42% 77,255 45% 79,366 49% 73,235 40% 54,050 40% Con
Slide 46: Najim Mostamand, CFA
Najim Mostamand, CFA VP, Investor Relations (757) 431-7913 [email protected] IR.PRAGROUP.COM