PRA Group, Inc. · NASDAQ:PRAA
PRA — Investor Presentation (February 2026)
40 slides from PRA's investor presentation, February 2026
Slide 1: February 2026 Investor Presentation
February 2026 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 Financial Performance PRA 3.0 Strategy 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) ✓ 30 years in business, led by highly experienced $1.2B $2.1B management team 2025 Portfolio 2025 Cash Purchases Collections ✓ A leading acquirer and collector of NPLs across 3rd Highest Level 13% YoY Growth 18 countries ✓
Slide 5: Deep Expertise and Industry Experience to Drive Improved Results
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 Keith
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: Our Global Perspective on the Markets
Our Global Perspective on the Markets Managing Complexity Across Distinct Global Environments U.S. Market European Market • Complex and stringent regulatory environment • Fragmented regulatory environment o Federal Regulator: CFPB o Very different application of collections rules in different o U.S.
Slide 8: U.S. Supply Remains Elevated Due to High Credit Card Balances & Charge-Off Rates
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 $1,049 9% $1,000 8% ✓ U.S. credit card balances up 7% 25%+ since pre-pandemic $800 6% (end of 2019) $600 5% 4% ✓ Charge-off rates
Slide 9: Disciplined & Diversified Purchaser of NPLs With Long Track Record
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 U.S. Total Portfolio Purchases $ in millions Europe Other • Experienced underwriting teams $1,408 $1
Slide 10: 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 11: Over Time We Generally Collect More Than We Underwrite, Leading to PPM Expansion
Over Time We Generally Collect More Than We Underwrite, Leading to PPM1 Expansion U.S. Core PPMs1 Europe Core PPMs1 Key Highlights ✓ Track record of cash 250% 250% overperformance has driven COVID Vintages2 expansion of multiples 200% ✓ U.S. Core original PPMs on newer vintages now exceed pre- pande
Slide 12: PRA Europe
PRA Europe A Decade of Consistent Deployment, Cash Generation and Operational Focus $ in millions PRA Europe Investments1 Key Europe Highlights ✓ Experienced and stable management (investment committee average tenure of ~12 years) $589 $477 $508 $519 $450 $408 $407 $444 $371 $361 ✓ Successfully inve
Slide 13: Europe's Transformation Under Martin's Leadership
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, li
Slide 14: Agenda
Agenda Company Overview Financial Performance PRA 3.0 Strategy Appendix 13 Nasdaq: PRAA
Slide 15: Q4 and FY 2025 Highlights
Q4 and FY 2025 Highlights Key Metrics Improving, with Adjusted Net Income Attributable to PRA of $73 Million $ in millions 3rd Highest Annual Purchases Level in Company History Double-Digit Collections Growth w/ 60%+ Adjusted Cash Efficiency Portfolio Purchases Cash Collections & Adjusted Cash Effic
Slide 16: Purchase Price Multiples Continued to Improve As We Remain Focused on Driving Higher Returns
Purchase Price Multiples Continued to Improve As We Remain Focused on Driving Higher Returns $ in millions Core PPMs1 and Portfolio Purchases Estimated Remaining Collections (ERC)2 Europe 1.69x 1.80x 1.85x +15% $8,609 U.S. 1.91x 2.11x 2.16x $564 $7,461 $1,408 $6,399 $1,154 $1,209 U.S. $3,658 Europe
Slide 17: Strong Cash Generation Supported by Continued Growth in U.S. Legal Collections Channel
Strong Cash Generation Supported by Continued Growth in U.S. Legal Collections Channel $ in millions Total Cash Collections U.S. Legal Collections Channel +13% +28% $2,108 $1,869 $211 $483 $1,660 $220 +13% $216 $376 $812 $721 $264 $664 +17% $125 $781 $927 $1,085 $63 $89 2023 2024 2025 2023 2024 2025
Slide 18: Growing Portfolio Income with Cash Overperformance Representing Majority of Changes in Expected Recoveries
Growing Portfolio Income with Cash Overperformance Representing Majority of Changes in Expected Recoveries $ in millions Portfolio Revenue1 Changes in Expected Recoveries $156 $1,190 $1,098 $121 $176 $786 $241 +18% $85 $29 $65 $56 $857 $1,013 $757 2023 2024 2025 ($36) 2023 2024 2025 Portfolio Income
Slide 19: 5 Consecutive Years of Cash Overperformance Suggest That Portfolio Income Contribution Can Increase
5 Consecutive Years of Cash Overperformance Suggest That Portfolio Income Contribution Can Increase Actual Cash Collections vs. Estimated Cash Collections Factors Driving Higher Portfolio Income: • Higher PPMs, as we become more selective in our buying and more effective in our collection capabiliti
Slide 20: Adjusted Net Income Attributable to PRA Increased 3% Year-over-Year
Adjusted Net Income Attributable to PRA Increased 3% Year-over-Year $ in millions Adjusted Net Income/(Loss) Operating Expenses and Total Revenue Attributable to PRA2 & Adjusted Operating Expenses1 Adjusted ROATE3 +3% +8% +6% $71 $73 $1,202 $1,232 $1,115 $413 $819 9.5% 8.5% $803 $775 $775 $702 $702
Slide 21: Continued Adjusted EBITDA Growth Supporting Decreasing Net Leverage
Continued Adjusted EBITDA Growth Supporting Decreasing Net Leverage $ in millions Borrowings, LTM Adjusted EBITDA1, and Net Leverage2 Borrowings $2,938 $2,740 $2,832 $2,914 $2,953 $3,114 $3,296 $3,327 $3,466 $3,614 $3,607 $3,697 2.87x • Net leverage continued to 2.81x 2.83x 2.82x 2.81x decline from
Slide 22: Diversified and Strong Capital Structure
Diversified and Strong Capital Structure Ample Liquidity with No Maturities in 2026; $20M of Shares Repurchased in 2025 Debt Maturity Profile1 $ in millions $1,831 • $1.1 billion available under credit facilities as of December 31, 2025 • $825 million available based on current ERC • $274 million of
Slide 23: Agenda
Agenda Company Overview Financial Performance PRA 3.0 Strategy Appendix 22 Nasdaq: PRAA
Slide 24: We Have Come a Long Way in the Last Three Years
We Have Come a Long Way in the Last Three Years 2025 Was Another Year of Significant Improvement, But More Work to Be Done 2023 2024 2025 Adjusted Net Income/(Loss) Attributable to PRA1 ($83M) $71M $73M Increased Portfolio • U.S. Core PPM: 1.91x • U.S. Core PPM: 2.11x • U.S. Core PPM: 2.16x Returns2
Slide 25: PRA 3.0: A High-Performing, Technology-Enabled Global Allocator of Capital
PRA 3.0: A High-Performing, Technology-Enabled Global Allocator of Capital 1 Capital & Invest with Discipline – allocate capital to highest-return Investing opportunities 2 Operations, Tech Modernize the Engine – become leaner, more flexible, tech- & Data driven 3 Establish a Winning Culture – embed
Slide 26: Invest with Discipline
Invest with Discipline Allocate Capital to Highest-Return Opportunities Strong financial Disciplined global Strong diversified Prudent capital profile through the NPL investor funding allocation strategy cycle • Leverage our global • Drive more predictable • Multiple sources of • Prioritize investme
Slide 27: Modernize the Engine
Modernize the Engine Become Leaner, More Flexible, Tech-Driven Fully leverage Enhanced data & Disciplined cost Transform operations technology analytics management • Balance internal • Leverage technology • Invest in talent & • Zero-based cost platform with flexible standardization to capabilities,
Slide 28: Establish a Winning Culture
Establish a Winning Culture Embed High-Performance Ownership Mindset Strong Governance & Invest in Talent Performance Culture Aligned Incentives Values • Talent hubs in • Enhance high- • Continue to align • Continued strong locations with strong performance incentives with compliance culture talent
Slide 29: Bringing Together The Three Vectors of PRA 3.0 to Drive Improved Financial Results
Bringing Together The Three Vectors of PRA 3.0 to Drive Improved Financial Results Disciplined Growing Declining Higher Returns Investments Adjusted EBITDA1 Net Leverage2 $ in billions $ in billions $ in millions $1.4 $1.3 2.78x 2.83x 2.73x $1.0 $1.1 $1.2 $1.2 $71 $73 -$83 23 24 25 23 24 25 23 24 25
Slide 30: Agenda
Agenda Company Overview Investment Thesis Financial Performance Appendix 29 Nasdaq: PRAA
Slide 31: 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 32: 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 33: 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 34: 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 35: 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 the non-GAAP financial measures referred to below, internally to evaluate the Company
Slide 36: 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 Non-GAAP Financial Measures Set forth below is a reconciliation of net income/(loss) attributable to PRA Group, Inc. to Adjusted EBITDA for the last twelve months (LTM) as of March 31, 2023 through t
Slide 37: Reconciliation of Total Operating Expenses to Adjusted Operating Expenses and Calculation of Adjusted Cash Efficiency Ratio
Reconciliation of Total Operating Expenses to Adjusted Operating Expenses and Calculation of Adjusted Cash Efficiency Ratio 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 ef
Slide 38: 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/(Loss) Attributable to PRA Non-GAAP Financial Measures The following table provides a reconciliation of Total stock
Slide 39: U.S. Portfolio Acquisitions by Major Asset Type & Delinquency Category
U.S. Portfolio Acquisitions by Major Asset Type & Delinquency Category $ in thousands 2025 Major Asset Type Q1 % Q2 % Q3 % Q4 % Major Credit Cards 73,486 46% 99,192 54% 74,171 55% 32,323 29% Private Label Credit Cards 79,366 49% 73,235 40% 54,050 40% 70,685 63% Consumer Finance 6,917 4% 5,054 3% 5,0
Slide 40: Najim Mostamand, CFA
Najim Mostamand, CFA VP, Investor Relations (757) 431-7913 [email protected] IR.PRAGROUP.COM