PRAグループの四半期報告

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the quarterly period ended September 30, 2025

☐ Transition Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the transition period from ________ to ________

Commission File Number: 000-50058

PRA Group, Inc.

(Exact name of registrant as specified in its charter)

Delaware

75-3078675

(State or other jurisdiction of incorporation or organization)

(I.R.S. Employer Identification No.)

120 Corporate Boulevard

Norfolk, Virginia 23502

(Address of principal executive offices)

(888) 772-7326

(Registrant's Telephone No., including area code)

Not Applicable

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $0.01 par value per share	PRAA	NASDAQ Global Select Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes þ No ¨

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes þ No ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer þ Accelerated filer ¨ Non-accelerated filer ¨ Smaller reporting company ☐ Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No þ

The number of shares of the registrant's common stock outstanding as of November 6, 2025 was 39,015,442.

PRA Group, Inc.

Form 10-Q for the Quarterly Period Ended September 30, 2025

TABLE OF CONTENTS


PART I. FINANCIAL INFORMATION		Page

Item 1.	Financial Statements	3
	Consolidated Balance Sheets	3
	Consolidated Income Statements	4
	Consolidated Statements of Comprehensive Income	5
	Consolidated Statements of Changes in Equity	6
	Consolidated Statements of Cash Flows	8
	Notes to Consolidated Financial Statements	9
	Note 1. Organization and Business	9

	Note 2. Finance Receivables, net	9
	Note 3. Investments	12
	Note 4. Goodwill	12

	Note 5. Borrowings	13
	Note 6. Derivatives	14
	Note 7. Fair Value	15
	Note 8. Accumulated Other Comprehensive Loss	16
	Note 9. Earnings per Share	17
	Note 10. Income Taxes	18
	Note 11. Commitments and Contingencies	18
	Note 12. Segments	18
	Note 13. Recently Issued Accounting Standards	19

Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	20
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	39
Item 4.	Controls and Procedures	39

PART II. OTHER INFORMATION

Item 1.	Legal Proceedings	40
Item 1A.	Risk Factors	40
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	40
Item 3.	Defaults Upon Senior Securities	40
Item 4.	Mine Safety Disclosures	40
Item 5.	Other Information	40
Item 6.	Exhibits	40

Signatures		42

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

PRA Group, Inc.

Consolidated Balance Sheets

September 30, 2025 and December 31, 2024

(In thousands)


	(unaudited)
	September 30, 2025		December 31, 2024
ASSETS
Cash and cash equivalents	$	107,454	$	105,938

Investments	64,915		66,304
Finance receivables, net	4,572,167		4,140,742

Income taxes receivable	17,397		19,559
Deferred tax assets, net	93,872		75,134
Right-of-use assets	28,135		32,173
Property and equipment, net	25,119		29,498
Goodwill	26,871		396,357
Other assets	63,279		65,450
Total assets	$	4,999,209	$	4,931,155
LIABILITIES AND EQUITY
Liabilities
Accrued expenses and accounts payable	$	115,518	$	141,211

Income taxes payable	48,782		28,584
Deferred tax liabilities, net	17,663		16,813
Lease liabilities	31,175		36,437
Interest-bearing deposits	139,671		163,406
Borrowings	3,606,978		3,326,621
Other liabilities	55,450		24,476
Total liabilities	4,015,237		3,737,548

Equity
Preferred stock, $0.01 par value, 2,000 shares authorized, no shares issued and outstanding	—		—
Common stock, $0.01 par value; 100,000 shares authorized, 39,083 shares issued and outstanding as of September 30, 2025; 100,000 shares authorized, 39,510 shares issued and outstanding as of December 31, 2024	391		395
Additional paid-in capital	17,981		17,882
Retained earnings	1,198,479		1,560,149
Accumulated other comprehensive loss	(288,358)		(443,394)
Total stockholders' equity - PRA Group, Inc.	928,493		1,135,032
Noncontrolling interests	55,479		58,575
Total equity	983,972		1,193,607
Total liabilities and equity	$	4,999,209	$	4,931,155

The accompanying notes are an integral part of these Consolidated Financial Statements.

PRA Group, Inc.

Consolidated Income Statements

For the Three and Nine Months Ended September 30, 2025 and 2024

(In thousands, except per share amounts)

(unaudited)


	Three Months Ended September 30,				Nine Months Ended September 30,
	2025		2024		2025		2024
Revenues
Portfolio income	$	258,549	$	216,122	$	750,441	$	627,468
Changes in expected recoveries	51,358		60,614		112,572		185,608
Total portfolio revenue	309,907		276,736		863,013		813,076
Other revenue	1,233		4,741		5,434		8,216
Total revenues	311,140		281,477		868,447		821,292

Operating expenses
Compensation and benefits	74,237		76,106		223,284		223,944
Legal collection costs	46,764		28,781		117,741		90,746
Legal collection fees	16,558		14,479		47,413		40,353
Agency fees	24,556		21,020		68,612		61,751
Professional and outside services	22,051		20,452		64,225		63,626
Communication	8,377		10,048		28,271		34,203
Rent and occupancy	3,654		4,175		10,638		12,455
Depreciation, amortization and impairment of long-lived assets	2,439		2,469		8,711		7,826
Goodwill impairment	412,611		—		412,611		—
Other operating expenses	15,440		13,969		42,800		40,792

Total operating expenses	626,687		191,499		1,024,306		575,696
(Loss)/income from operations	(315,547)		89,978		(155,859)		245,596
Other income/(expense)

Interest expense, net	(64,087)		(61,062)		(187,418)		(168,693)
Gain on sale of equity method investment	—		—		38,403		—
Foreign exchange gain, net	67		10		66		138
Other	(38)		(676)		(293)		(836)
(Loss)/income before income taxes	(379,605)		28,250		(305,101)		76,205

Income tax expense/(benefit)	24,361		(672)		44,088		10,416
Net (loss)/income	(403,966)		28,922		(349,189)		65,789
Net income attributable to noncontrolling interests	3,737		1,768		12,481		13,644
Net (loss)/income attributable to PRA Group, Inc.	$	(407,703)	$	27,154	$	(361,670)	$	52,145

Net (loss)/income per common share attributable to PRA Group, Inc.
Basic	$	(10.43)	$	0.69	$	(9.20)	$	1.33
Diluted	$	(10.43)	$	0.69	$	(9.20)	$	1.32
Weighted average number of shares outstanding
Basic	39,078		39,421		39,316		39,353
Diluted	39,078		39,492		39,316		39,495

The accompanying notes are an integral part of these Consolidated Financial Statements.

PRA Group, Inc.

Consolidated Statements of Comprehensive Income

For the Three and Nine Months Ended September 30, 2025 and 2024

(In thousands)

(unaudited)


	Three Months Ended September 30,				Nine Months Ended September 30,
	2025		2024		2025		2024
Net (loss)/income	$	(403,966)	$	28,922	$	(349,189)	$	65,789
Other comprehensive (loss)/income, net of tax
Foreign currency translation adjustments	(6,394)		52,979		168,945		(9,470)
Cash flow hedges	2,815		(8,503)		(5,424)		(6,988)
Debt securities available-for-sale	(24)		246		(57)		357
Other comprehensive (loss)/income	(3,603)		44,722		163,464		(16,101)
Total comprehensive (loss)/income	(407,569)		73,644		(185,725)		49,688
Comprehensive income attributable to noncontrolling interests	4,759		3,301		20,910		6,263
Comprehensive (loss)/income attributable to PRA Group, Inc.	$	(412,328)	$	70,343	$	(206,635)	$	43,425

The accompanying notes are an integral part of these Consolidated Financial Statements.

PRA Group, Inc.

Consolidated Statements of Changes in Equity

For the Nine Months Ended September 30, 2025

(In thousands)

(unaudited)


	Common Stock			Additional Paid-In		Retained		Accumulated Other Comprehensive		Noncontrolling		Total
	Shares	Amount		Capital		Earnings		Loss		Interests		Equity
Balance as of December 31, 2024	39,510	$	395	$	17,882	$	1,560,149	$	(443,394)	$	58,575	$	1,193,607
Components of comprehensive income, net of tax
Net income	—	—		—		3,659		—		5,405		9,064
Foreign currency translation adjustments	—	—		—		—		80,604		4,694		85,298
Cash flow hedges	—	—		—		—		(1,942)		—		(1,942)
Debt securities available-for-sale	—	—		—		—		(181)		—		(181)
Distributions to noncontrolling interests	—	—		—		—		—		(7,264)		(7,264)
Vesting of restricted stock	142	2		(2)		—		—		—		—
Share-based compensation expense	—	—		3,788		—		—		—		3,788
Employee stock relinquished for payment of taxes	—	—		(1,852)		—		—		—		(1,852)
Balance as of March 31, 2025	39,652	$	397	$	19,816	$	1,563,808	$	(364,913)	$	61,410	$	1,280,518
Components of comprehensive income, net of tax:
Net income	—	—		—		42,374		—		3,339		45,713
Foreign currency translation adjustments	—	—		—		—		87,328		2,713		90,041
Cash flow hedges	—	—		—		—		(6,297)		—		(6,297)
Debt securities available-for-sale	—	—		—		—		148		—		148
Distributions to noncontrolling interests	—	—		—		—		—		(7,776)		(7,776)
Vesting of restricted stock	82	1		(1)		—		—		—		—
Repurchase and cancellation of common stock	(660)	(7)		(9,993)		—		—		—		(10,000)
Share-based compensation expense	—	—		4,464		—		—		—		4,464
Employee stock relinquished for payment of taxes	—	—		(200)		—		—		—		(200)
Balance as of June 30, 2025	39,074	$	391	$	14,086	$	1,606,182	$	(283,734)	$	59,686	$	1,396,611
Components of comprehensive income, net of tax:
Net (loss)/income	—	—		—		(407,703)		—		3,737		(403,966)
Foreign currency translation adjustments	—	—		—		—		(7,415)		1,021		(6,394)
Cash flow hedges	—	—		—		—		2,815		—		2,815
Debt securities available-for-sale	—	—		—		—		(24)		—		(24)
Distributions to noncontrolling interests	—	—		—		—		—		(8,965)		(8,965)
Vesting of restricted stock	9	—		—		—		—		—		—
Share-based compensation expense	—	—		4,027		—		—		—		4,027
Employee stock relinquished for payment of taxes	—	—		(132)		—		—		—		(132)
Balance as of September 30, 2025	39,083	$	391	$	17,981	$	1,198,479	$	(288,358)	$	55,479	$	983,972

The accompanying notes are an integral part of these Consolidated Financial Statements.

PRA Group, Inc.

Consolidated Statements of Changes in Equity

For the Nine Months Ended September 30, 2024

(In thousands)

(unaudited)


	Common Stock			Additional Paid-In		Retained		Accumulated Other Comprehensive		Noncontrolling		Total
	Shares	Amount		Capital		Earnings		Loss		Interests		Equity
Balance as of December 31, 2023	39,247	$	392	$	7,071	$	1,489,548	$	(329,899)	$	72,264	$	1,239,376
Components of comprehensive income, net of tax
Net income	—	—		—		3,475		—		8,278		11,753
Foreign currency translation adjustments	—	—		—		—		(45,973)		(2,218)		(48,191)
Cash flow hedges	—	—		—		—		2,808		—		2,808
Debt securities available-for-sale	—	—		—		—		46		—		46
Distributions to noncontrolling interests	—	—		—		—		—		(11,332)		(11,332)
Vesting of restricted stock	98	1		(1)		—		—		—		—

Share-based compensation expense	—	—		3,327		—		—		—		3,327
Employee stock relinquished for payment of taxes	—	—		(1,469)		—		—		—		(1,469)
Balance as of March 31, 2024	39,345	$	393	$	8,928	$	1,493,023	$	(373,018)	$	66,992	$	1,196,318
Components of comprehensive income, net of tax:
Net income	—	—		—		21,516		—		3,598		25,114
Foreign currency translation adjustments	—	—		—		—		(7,563)		(6,695)		(14,258)
Cash flow hedges	—	—		—		—		(1,293)		—		(1,293)
Debt securities available-for-sale	—	—		—		—		65		—		65
Distributions to noncontrolling interests	—	—		—		—		—		(6,080)		(6,080)

Vesting of restricted stock	72	1		(1)		—		—		—		—

Share-based compensation expense	—	—		3,555		—		—		—		3,555
Employee stock relinquished for payment of taxes	—	—		(143)		—		—		—		(143)
Balance as of June 30, 2024	39,417	$	394	$	12,339	$	1,514,539	$	(381,809)	$	57,815	$	1,203,278
Components of comprehensive income, net of tax:
Net income	—	—		—		27,154		—		1,768		28,922
Foreign currency translation adjustments	—	—		—		—		51,446		1,533		52,979
Cash flow hedges	—	—		—		—		(8,503)		—		(8,503)
Debt securities available-for-sale	—	—		—		—		246		—		246
Distributions to noncontrolling interests	—	—		—		—		—		(602)		(602)
Contributions from noncontrolling interests	—	—		—		—		—		2,396		2,396
Vesting of restricted stock	9	—		—		—		—		—		—
Share-based compensation expense	—	—		3,251		—		—		—		3,251
Employee stock relinquished for payment of taxes	—	—		(175)		—		—		—		(175)
Balance as of September 30, 2024	39,426	$	394	$	15,415	$	1,541,693	$	(338,620)	$	62,910	$	1,281,792

The accompanying notes are an integral part of these Consolidated Financial Statements.

PRA Group, Inc.

Consolidated Statements of Cash Flows

For the Nine Months Ended September 30, 2025 and 2024

(In thousands)

(unaudited)


	Nine Months Ended September 30,
	2025		2024
CASH FLOWS FROM OPERATING ACTIVITIES
Net (loss)/income	$	(349,189)	$	65,789
Adjustments to reconcile net (loss)/income to net cash used in operating activities:
Share-based compensation	12,279		10,133
Depreciation, amortization and impairment of long-lived assets	8,711		7,826
Goodwill impairment	412,611		—
Gain on sale of equity method investment	(38,403)		—

Amortization of debt premium and issuance costs	5,839		8,326
Changes in expected recoveries	(112,572)		(185,608)

Deferred income taxes	(10,420)		(7,277)
Net unrealized foreign currency transaction gain	(11,015)		(16,593)

Other	629		(234)

Changes in operating assets and liabilities:
Other assets	(4,293)		(201)

Accrued expenses, accounts payable and other liabilities	10,201		(19,685)




Net cash used in operating activities	(75,622)		(137,524)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of property and equipment, net	(3,392)		(2,881)

Purchases of nonperforming loan portfolios	(890,241)		(975,164)
Recoveries collected and applied to Finance receivables, net	827,190		784,329
Purchases of investments	(57,898)		(48,247)
Proceeds from sales and maturities of investments	107,366		58,130



Net cash used in investing activities	(16,975)		(183,833)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from lines of credit	739,727		958,636
Principal payments on lines of credit	(916,273)		(693,622)
Principal payments on long-term debt	(7,500)		(10,000)
Proceeds from issuance of 2032 senior notes	351,990		—
Proceeds from issuance of 2030 senior notes	—		400,000

Retirement of 2025 senior notes	—		(298,000)
Repurchases of common stock	(10,000)		—

Payments of origination costs and fees	(4,878)		(5,926)
Tax withholdings related to share-based payments	(2,184)		(1,787)
Distributions to noncontrolling interests	(24,005)		(18,014)
Contributions from noncontrolling interests	—		2,396

Net (decrease)/increase in interest-bearing deposits	(52,315)		13,390


Net cash provided by financing activities	74,562		347,073
Effect of foreign exchange rates	21,431		3,024
Net increase in cash, cash equivalents and restricted cash	3,396		28,740
Cash, cash equivalents and restricted cash, beginning of period	107,431		113,692
Cash, cash equivalents and restricted cash, end of period	$	110,827	$	142,432

Supplemental disclosure of cash flow information
Cash paid for interest	$	213,888	$	176,537
Cash paid for income taxes	33,042		15,460
Reconciliation to Balance Sheet accounts
Cash and cash equivalents	$	107,454	$	141,135
Restricted cash included in Other assets	3,373		1,297
Cash, cash equivalents and restricted cash	$	110,827	$	142,432

The accompanying notes are an integral part of these Consolidated Financial Statements.

PRA Group, Inc.

Notes to Consolidated Financial Statements

(Unaudited)

Note 1. Organization and Business

As used herein, the terms "PRA Group," the "Company," or similar terms refer to PRA Group, Inc. and its subsidiaries.

Nature of operations

PRA Group, Inc., a Delaware corporation headquartered in Norfolk, Virginia, is a global financial services company with operations in the Americas, Europe and Australia. The Company's primary business is the purchase, collection and management of portfolios of nonperforming loans. The Company also purchases and provides fee-based services for class action claims recoveries in the United States ("U.S.").

Basis of presentation

The accompanying unaudited Consolidated Financial Statements have been prepared in accordance with U.S. generally accepted accounting principles ("GAAP") and the instructions for Quarterly Reports on Form 10-Q of the U.S. Securities and Exchange Commission ("SEC"). Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments, consisting of normal and recurring items, necessary for a fair presentation have been included. These unaudited Consolidated Financial Statements include the accounts of PRA Group and other entities in which the Company has a controlling interest. All significant intercompany accounts and transactions have been eliminated. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported and disclosed, and realized results could differ from those estimates and assumptions.

These unaudited Consolidated Financial Statements may not be indicative of future results and should be read in conjunction with the audited Consolidated Financial Statements and notes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2024 (the "2024 Form 10-K").

Prior period reclassifications

In the Consolidated Balance Sheets and Consolidated Statements of Cash Flows, certain prior period amounts have been reclassified for consistency with the current period presentation.

Note 2. Finance Receivables, net

Finance receivables, net consisted of the following as of September 30, 2025 and December 31, 2024 (in thousands):


	September 30, 2025		December 31, 2024
Amortized cost	$	—	$	—
Negative allowance for expected recoveries	4,572,167		4,140,742
Balance as of end of period	$	4,572,167	$	4,140,742

Changes in Finance receivables, net by portfolio type for the three and nine months ended September 30, 2025 and 2024 were as follows (in thousands):


	Three Months Ended September 30,
	2025						2024
	Core		Insolvency		Total		Core		Insolvency		Total
Balance as of beginning of period	$	4,234,269	$	328,307	$	4,562,576	$	3,450,721	$	369,465	$	3,820,186
Initial negative allowance for expected recoveries on current period purchases (1)	234,724		20,768		255,492		335,120		14,858		349,978
Recoveries collected and applied to Finance receivables, net (2)	(237,624)		(34,851)		(272,475)		(222,960)		(40,429)		(263,389)
Changes in expected recoveries (3)	44,730		6,628		51,358		55,992		4,622		60,614
Foreign currency translation adjustment	(21,483)		(3,301)		(24,784)		87,496		9,582		97,078
Balance as of end of period	$	4,254,616	$	317,551	$	4,572,167	$	3,706,369	$	358,098	$	4,064,467


	Nine Months Ended September 30,
	2025						2024
	Core		Insolvency		Total		Core		Insolvency		Total
Balance as of beginning of period	$	3,809,723	$	331,019	$	4,140,742	$	3,295,214	$	361,384	$	3,656,598
Initial negative allowance for expected recoveries on current period purchases (1)	828,179		65,520		893,699		880,529		94,635		975,164
Recoveries collected and applied to Finance receivables, net (2)	(720,764)		(106,426)		(827,190)		(664,423)		(119,906)		(784,329)
Changes in expected recoveries (3)	96,397		16,175		112,572		171,303		14,305		185,608
Foreign currency translation adjustment	241,081		11,263		252,344		23,746		7,680		31,426
Balance as of end of period	$	4,254,616	$	317,551	$	4,572,167	$	3,706,369	$	358,098	$	4,064,467

(1) Initial negative allowance for expected recoveries on current period purchases

The initial negative allowance for expected recoveries on purchases made during the three and nine months ended September 30, 2025 and 2024 was as follows (in thousands):


	Three Months Ended September 30,
	2025						2024
	Core		Insolvency		Total		Core		Insolvency		Total
Allowance for credit losses at acquisition	$	(1,354,100)	$	(75,733)	$	(1,429,833)	$	(3,071,252)	$	(53,164)	$	(3,124,416)
Writeoffs, net	1,354,100		75,733		1,429,833		3,071,252		53,164		3,124,416
Expected recoveries	234,724		20,768		255,492		335,120		14,858		349,978
Initial negative allowance for expected recoveries on current period purchases	$	234,724	$	20,768	$	255,492	$	335,120	$	14,858	$	349,978


	Nine Months Ended September 30,
	2025						2024
	Core		Insolvency		Total		Core		Insolvency		Total
Allowance for credit losses at acquisition	$	(4,407,773)	$	(237,067)	$	(4,644,840)	$	(6,088,303)	$	(330,392)	$	(6,418,695)
Writeoffs, net	4,407,773		237,067		4,644,840		6,088,303		330,392		6,418,695
Expected recoveries	828,179		65,520		893,699		880,529		94,635		975,164
Initial negative allowance for expected recoveries on current period purchases	$	828,179	$	65,520	$	893,699	$	880,529	$	94,635	$	975,164

The purchase price for purchases made during the three and nine months ended September 30, 2025 and 2024 was as follows (in thousands):


	Three Months Ended September 30,
	2025						2024
	Core		Insolvency		Total		Core		Insolvency		Total
Face value	$	1,841,010	$	108,649	$	1,949,659	$	3,739,494	$	75,859	$	3,815,353
Noncredit discount	(252,186)		(12,148)		(264,334)		(333,122)		(7,837)		(340,959)
Allowance for credit losses at acquisition	(1,354,100)		(75,733)		(1,429,833)		(3,071,252)		(53,164)		(3,124,416)
Purchase price	$	234,724	$	20,768	$	255,492	$	335,120	$	14,858	$	349,978


	Nine Months Ended September 30,
	2025						2024
	Core		Insolvency		Total		Core		Insolvency		Total
Face value	$	6,076,491	$	339,965	$	6,416,456	$	7,850,273	$	469,492	$	8,319,765
Noncredit discount	(840,539)		(37,378)		(877,917)		(881,441)		(44,465)		(925,906)
Allowance for credit losses at acquisition	(4,407,773)		(237,067)		(4,644,840)		(6,088,303)		(330,392)		(6,418,695)
Purchase price	$	828,179	$	65,520	$	893,699	$	880,529	$	94,635	$	975,164

(2) Recoveries collected and applied to Finance receivables, net

Recoveries collected and applied to Finance receivables, net for the three and nine months ended September 30, 2025 and 2024 were as follows (in thousands):


	Three Months Ended September 30,
	2025						2024
	Core		Insolvency		Total		Core		Insolvency		Total
Recoveries collected (a)	$	484,305	$	46,719	$	531,024	$	426,574	$	52,937	$	479,511
Amounts reclassified to portfolio income (b)	(246,681)		(11,868)		(258,549)		(203,614)		(12,508)		(216,122)
Recoveries collected and applied to Finance receivables, net	$	237,624	$	34,851	$	272,475	$	222,960	$	40,429	$	263,389


	Nine Months Ended September 30,
	2025						2024
	Core		Insolvency		Total		Core		Insolvency		Total
Recoveries collected (a)	$	1,436,348	$	141,283	$	1,577,631	$	1,256,546	$	155,251	$	1,411,797
Amounts reclassified to portfolio income (b)	(715,584)		(34,857)		(750,441)		(592,123)		(35,345)		(627,468)
Recoveries collected and applied to Finance receivables, net	$	720,764	$	106,426	$	827,190	$	664,423	$	119,906	$	784,329

(a)Includes cash collections, buybacks and other cash-based adjustments.

(b)Reclassifications from Finance receivables, net to Portfolio income based on the effective interest rate of the underlying account pools.

(3) Changes in expected recoveries

Changes in expected recoveries for the three months ended September 30, 2025 and 2024 were as follows (in thousands):


	Three Months Ended September 30,
	2025						2024
	Core		Insolvency		Total		Core		Insolvency		Total
Recoveries collected in excess of forecast	$	21,406	$	5,945	$	27,351	$	29,133	$	5,025	$	34,158
Changes in expected future recoveries	23,324		683		24,007		26,859		(403)		26,456
Changes in expected recoveries	$	44,730	$	6,628	$	51,358	$	55,992	$	4,622	$	60,614

Changes in expected recoveries for the three months ended September 30, 2025 were $51.4 million, which included $27.4 million in recoveries collected in excess of forecast and a $24.0 million positive adjustment to changes in expected future recoveries. Recoveries collected in excess of forecast were due largely to cash collections overperformance in Europe, and also included overperformance in South America and the U.S. Collections overperformance in the U.S. was net of a one-time payment of $15.0 million to a seller to modify the terms and conditions of certain previously purchased portfolios to allow for increased use of legal collections. Changes in expected future recoveries were driven by the results of the Company's forecasting models, combined with evaluations of recent performance, and were due in large part to increases in the collections forecasts for certain European and South American pools and the 2024 U.S. Core pool (driven by the increase in estimated remaining collections resulting from the above-mentioned contract modification) and 2017 to 2020 U.S. Core pools. These increases were partially offset by negative changes in expected future recoveries on the 2021 to 2023 U.S. Core pools, a portion of which was driven by changes in the expected timing of the recoveries.

Changes in expected recoveries for the three months ended September 30, 2024 were $60.6 million, which included $34.2 million in recoveries collected in excess of forecast, due primarily to collections performance in the U.S. and Europe. Changes in expected future recoveries of $26.5 million mainly reflect the Company's assessment of the 2013 to 2020 U.S. Core pools and a number of pools in Europe, which resulted in increases to the expected cash flows considering that recent performance of those pools is expected to continue.

Changes in expected recoveries for the nine months ended September 30, 2025 and 2024 were as follows (in thousands):


	Nine Months Ended September 30,
	2025						2024
	Core		Insolvency		Total		Core		Insolvency		Total
Recoveries collected in excess of forecast	$	68,012	$	16,141	$	84,153	$	109,881	$	14,375	$	124,256
Changes in expected future recoveries	28,385		34		28,419		61,422		(70)		61,352
Changes in expected recoveries	$	96,397	$	16,175	$	112,572	$	171,303	$	14,305	$	185,608

Changes in expected recoveries for the nine months ended September 30, 2025 were $112.6 million, which included $84.2 million in recoveries collected in excess of forecast and a $28.4 million positive adjustment to changes in expected future recoveries. Recoveries collected in excess of forecast were primarily due to cash collections overperformance in Europe, South America, and to a lesser extent the U.S., where collections overperformance was impacted by a one-time payment of $15.0 million to a seller to modify the terms and conditions of certain previously purchased portfolios to allow for increased use of legal collections. Changes in expected future recoveries were driven by the results of the Company's forecasting models, combined with evaluations of recent performance, and were due in large part to increases in the collections forecasts for certain European and South American pools and the U.S. 2024 Core pool (driven by the increase in estimated remaining collections resulting from the above-mentioned contract modification). These increases were partially offset by negative changes in expected future recoveries on the 2021 to 2023 U.S. Core pools, a portion of which was driven by changes in the expected timing of the recoveries.

Changes in expected recoveries for the nine months ended September 30, 2024 were $185.6 million, which included $124.3 million in recoveries collected in excess of forecast, due primarily to collections performance in the U.S. and Europe. Changes in expected future recoveries of $61.4 million mainly reflect the Company's assessment of the 2013 to 2020 U.S. Core pools and a number of pools in Europe, which resulted in increases to the expected cash flows considering that recent performance of those pools is expected to continue.

Note 3. Investments

Investments consisted of the following as of September 30, 2025 and December 31, 2024 (in thousands):


	September 30, 2025		December 31, 2024


Debt securities



Available-for-sale	$	63,226	$	55,762


Equity securities
Private equity funds	1,689		1,848
Equity method investment	—		8,694

Total investments	$	64,915	$	66,304

Debt securities

As of September 30, 2025, the Company's debt securities consisted of Swedish treasury securities maturing within one year. As of September 30, 2025 and December 31, 2024, the amortized cost and fair value of these investments were as follows (in thousands):


	September 30, 2025						December 31, 2024
	Amortized Cost		Gross Unrealized Gains		Aggregate Fair Value			Amortized Cost		Gross Unrealized Gains		Aggregate Fair Value



Debt securities	$	63,076	$	150	$	63,226		$	55,556	$	206	$	55,762

Equity method investment

The Company sold its 11.7% interest in RCB Investimentos S.A., a servicing company for nonperforming loans in Brazil, in April 2025.

Note 4. Goodwill

Changes in goodwill for the three and nine months ended September 30, 2025 and 2024, were as follows (in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2025		2024		2025		2024
Balance as of beginning of period	$	439,449	$	415,646	$	396,357	$	431,564





Goodwill impairment	(412,611)		—		(412,611)		—
Foreign currency translation	33		7,365		43,125		(8,553)
Balance as of end of period	$	26,871	$	423,011	$	26,871	$	423,011

The Company performs an annual impairment test of goodwill as of October 1 of each year, or more frequently if indicators of impairment exist. As of September 30, 2025, as part of the Company’s interim impairment assessment, based on a sustained decrease in its stock price and market capitalization, the Company determined there to be an indicator of potential goodwill impairment in its Debt Buying and Collection (“DBC”) reporting unit. As a result, the Company performed a quantitative impairment test of the DBC reporting unit as of September 30, 2025, using the income approach, and also compared the estimated fair value to the Company’s market capitalization.

The Company estimates fair value based on the present value of estimated future cash flows and a residual terminal value. Forecasted financial results for the DBC reporting unit are developed considering several inputs and assumptions, including portfolio purchasing volume, purchase price multiples, ERC growth rate, terminal value and operating expenses.

Based on the quantitative impairment test performed as of September 30, 2025, driven in large part by the comparison to market capitalization and the impact on estimated fair value of a decrease in the terminal value assumption and an increase in the discount rate assumption since the most recent annual impairment test, the Company determined that the goodwill in its DBC reporting unit was fully impaired, and as a result, recorded a goodwill impairment charge of $412.6 million in the Consolidated Income Statement for the three months ended September 30, 2025.

As of September 30, 2025, goodwill of $26.9 million related to the Company’s Claims Compensation Bureau, LLC (“CCB”) reporting unit, and the Company determined there were no indicators of impairment related to this reporting unit as of September 30, 2025.

Note 5. Borrowings

Borrowings consisted of the following as of September 30, 2025 and December 31, 2024 (in thousands):


	September 30, 2025		December 31, 2024
North American revolving credit facility (1)	$	514,039	$	519,519
North American term loan (2)	462,611		470,111
United Kingdom revolving credit facility (3)	440,864		494,185
European revolving credit facility (4)	551,331		555,726
Colombian revolving credit facility	2,465		—
Credit facility borrowings	1,971,310		2,039,541
2028 senior notes	398,000		398,000
2029 senior notes	350,000		350,000
2030 senior notes	550,000		550,000
2032 senior notes	351,990		—
Senior notes	1,649,990		1,298,000
Credit facility borrowings and senior notes	3,621,300		3,337,541
Unamortized debt premium and issuance costs, net	(14,322)		(10,920)
Total borrowings	$	3,606,978	$	3,326,621

(1)Revolving credit facility under the Company's North American credit agreement with a combined domestic and Canadian limit of $1.1 billion (subject to the borrowing base and debt covenants, including advance rates), maturing on October 28, 2029.

(2)Term loan under the Company's North American credit agreement, with a final maturity date of October 28, 2029.

(3)Revolving credit facility with a limit of $725.0 million (subject to the borrowing base and debt covenants, including advance rates), maturing on October 30, 2029.

(4)Revolving credit facility with an aggregate limit of approximately €730.0 million (subject to the borrowing base and debt covenants, including advance rates), maturing on November 23, 2027.

For additional information about the North American revolving credit facility and term loan, United Kingdom revolving credit facility, European revolving credit facility and the Company's senior notes, refer to Note 7 to the Consolidated Financial Statements in the 2024 Form 10-K and description of the 2032 senior notes below.

The Company was in compliance with the covenants contained in its financing arrangements as of September 30, 2025.

2032 senior notes

On September 30, 2025, the Company completed the private offering of €300.0 million ($352.0 million) in aggregate principal amount of its 6.250% senior notes due September 30, 2032 through its wholly-owned subsidiary, PRA Group Europe Holding II S.à r.l. ("Issuer"). The notes are senior unsecured obligations of the Issuer and are guaranteed on a senior unsecured basis by the Company and all of the Company's existing and future domestic restricted subsidiaries that guarantee the North American revolving credit facility, subject to certain exceptions. Interest on the notes is payable semi-annually, in arrears, on March 31 and September 30 of each year.

Prior to September 30, 2028, the Issuer may redeem the notes, in whole or in part, at a price equal to 100% of the aggregate principal amount of the notes being redeemed, plus the applicable "make whole" premium. On or before September 30, 2028, the Issuer may redeem up to 40% of the aggregate principal amount of the notes at a redemption price of 106.250% plus accrued and unpaid interest with the net cash proceeds of a public offering of common stock of the Company provided, that at least 60% in aggregate principal amount of the notes remains outstanding immediately after the occurrence of such redemption and that such redemption will occur within 90 days of the date of the closing of such public offering.

In addition, on or after September 30, 2028, the Issuer may redeem the notes, in whole or in part, at a price equal to 103.1250% of the aggregate principal amount of the notes being redeemed. The applicable redemption price changes if redeemed during the 12 months beginning September 30 of each year to 101.5625% for 2029 and then 100% for 2030 and thereafter.

In the event of a change of control, each holder will have the right to require the Issuer to repurchase all or any part of such holder's notes at an offer price equal to 101% of the aggregate principal amount plus accrued and unpaid interest. If the Company sells assets under certain circumstances and does not use the proceeds for specified purposes, the Company will be required to make an offer to repurchase the notes at 100% of their principal amount plus accrued and unpaid interest.

The related indenture contains customary terms and covenants, including certain events of default after which the notes may be due and payable immediately.

Note 6. Derivatives

The Company periodically enters into interest rate swaps and foreign exchange contracts to reduce its exposure to fluctuations in interest rates on variable-rate debt and foreign currency exchange rates. The fair value of these instruments as of September 30, 2025 and December 31, 2024 was as follows (in thousands):

September 30, 2025

December 31, 2024

Balance Sheet Location

Fair Value

Balance Sheet Location

Fair Value

Designated as hedging instruments:

Interest rate swaps

Other assets

2,664

Other assets

8,514

Interest rate swaps

Other liabilities

7,530

Other liabilities

4,797

Not designated as hedging instruments:

Foreign exchange contracts

Other assets

785

Other assets

2,209

Foreign exchange contracts

Other liabilities

1,525

Other liabilities

166

Derivatives designated as hedging instruments

The effects of interest rate swaps designated as cash flow hedging instruments for the three and nine months ended September 30, 2025 and 2024 were as follows (in thousands):


	Gain/(loss) recognized in OCI, net of tax
	Three Months Ended September 30,				Nine Months Ended September 30,
Hedging instrument	2025		2024		2025		2024
Interest rate swaps	$	3,647	$	(4,321)	$	(364)	$	5,609

	Gain reclassified from OCI into income
	Three Months Ended September 30,				Nine Months Ended September 30,
Income statement location	2025		2024		2025		2024
Interest expense, net	$	1,100	$	5,568	$	6,675	$	16,774

As of September 30, 2025 and December 31, 2024, the notional amount of outstanding interest rate swaps was $886.7 million and $800.7 million, respectively. These swaps remained highly effective as of September 30, 2025 and have remaining terms ranging from four months to five years. As of September 30, 2025, the Company estimates that $0.7 million of net derivative losses included in other comprehensive income ("OCI") will be reclassified into earnings within the next 12 months.

Derivatives not designated as hedging instruments

The effects of foreign exchange contracts not designated as hedging instruments for the three and nine months ended September 30, 2025 and 2024 were as follows (in thousands):



			Three Months Ended September 30,						Nine Months Ended September 30,
Income statement location		2025			2024			2025			2024
	Foreign exchange gain/(loss), net		$	5,079		$	(8,718)		$	(10,617)		$	(7,893)
	Interest expense, net		271			200			270			509

As of September 30, 2025 and December 31, 2024, the notional amount of outstanding foreign exchange contracts was $423.1 million and $376.4 million, respectively.

Note 7. Fair Value

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The level in the fair value hierarchy within which a fair value measurement in its entirety falls is based on the lowest level input that is significant to the fair value measurement in its entirety.

Financial instruments carried at fair value

As of September 30, 2025 and December 31, 2024, financial instruments measured at fair value on a recurring basis were as follows (in thousands):


	Quoted Prices in Active Markets (Level 1)		Other Observable Inputs (Level 2)		Total
September 30, 2025
Assets

Government securities	$	63,226	$	—	$	63,226


Derivatives (1)	—		3,449		3,449
Liabilities
Derivatives (1)	—		9,055		9,055


December 31, 2024
Assets

Government securities	$	55,762	$	—	$	55,762


Derivatives (1)	—		10,723		10,723
Liabilities
Derivatives (1)	—		4,963		4,963

(1)Fair value of derivatives is estimated using industry standard valuation models, which project future cash flows and discount the future amounts to present value using market-based observable inputs, including interest rate curves and other factors.

Financial instruments not carried at fair value

As of September 30, 2025 and December 31, 2024, the estimated fair value and carrying amount of financial instruments not carried at fair value were as follows (in thousands):


	Estimated Fair Value
	Quoted Prices in Active Markets (Level 1)		Other Observable Inputs (Level 2)		Unobservable Inputs (Level 3)		Carrying Value
September 30, 2025
Financial assets
Cash and cash equivalents	$	107,454	$	—	$	—	$	107,454


Finance receivables, net (1)	—		—		4,366,959		4,572,167
Financial liabilities
Interest-bearing deposits (2)	—		139,671		—		139,671
Revolving lines of credit (3)	—		1,508,699		—		1,508,699
Term loan (3) (5)	—		462,611		—		462,611
Senior notes (4) (5)	—		1,649,953		—		1,649,990
December 31, 2024
Financial assets
Cash and cash equivalents	$	105,938	$	—	$	—	$	105,938


Finance receivables, net (1)	—		—		3,523,949		4,140,742
Financial liabilities
Interest-bearing deposits (2)	—		163,406		—		163,406
Revolving lines of credit (3)	—		1,569,430		—		1,569,430
Term loan (3) (5)	—		470,111		—		470,111
Senior notes (4) (5)	—		1,301,244		—		1,298,000

(1)Fair value is estimated using the proprietary pricing models the Company utilizes to make portfolio acquisition decisions.

(2)Fair value is based on quoted prices for similar instruments in active markets and approximates carrying value due to the short-term deposit periods.

(3)Fair value is based on quoted prices for similar instruments in active markets and approximates carrying value due to the short-term interest rate periods.

(4)Fair value is based on quoted market prices obtained from secondary market broker quotes.

(5)The carrying amounts and fair values do not include debt issuance costs.

During the three months ended September 30, 2025, the Company assessed the goodwill in its DBC reporting unit for impairment and determined that the goodwill was fully impaired. The estimated fair value of the DBC reporting unit represents a Level 3 nonrecurring fair value measurement. Refer to Note 4 in these Consolidated Financial Statements for additional information.

Note 8. Accumulated Other Comprehensive Income/Loss

Reclassifications out of Accumulated other comprehensive loss for the three and nine months ended September 30, 2025 and 2024, were as follows (in thousands):


		Three Months Ended September 30,				Nine Months Ended September 30,
Cash flow hedges	Income Statement location	2025		2024			2025		2024
Interest rate swaps	Interest expense, net	$	1,100	$	5,568		$	6,675	$	16,774
Income tax effect (1)	Income tax expense/(benefit)	(269)		(1,387)			(1,615)		(4,177)
Total gain on cash flow hedges		$	831	$	4,181		$	5,060	$	12,597

(1)Income tax effects are released from Accumulated other comprehensive loss contemporaneously with the related gross pretax amount.

Changes in Accumulated other comprehensive loss for the three and nine months ended September 30, 2025 and 2024, were as follows (in thousands):


	Three Months Ended September 30,
	2025								2024
	Debt Securities		Cash		Currency		Accumulated		Debt Securities		Cash		Currency		Accumulated
	Available-for-sale		Flow Hedges		Translation Adjustments		Other Comp. Loss		Available-for-sale		Flow Hedges		Translation Adjustments		Other Comp. Loss (1)
Balance as of beginning of period	$	172	$	(6,128)	$	(277,778)	$	(283,734)	$	176	$	8,112	$	(390,097)	$	(381,809)
Other comprehensive gain/(loss) before reclassifications	(24)		3,646		(7,415)		(3,793)		246		(4,322)		51,446		47,370
Reclassifications, net	—		(831)		—		(831)		—		(4,181)		—		(4,181)
Net current period other comprehensive gain/(loss)	(24)		2,815		(7,415)		(4,624)		246		(8,503)		51,446		43,189
Balance as of end of period	$	148	$	(3,313)	$	(285,193)	$	(288,358)	$	422	$	(391)	$	(338,651)	$	(338,620)

(1)Net of deferred taxes for unrealized (gains)/losses from cash flow hedges of $(0.9) million and $2.8 million for the three months ended September 30, 2025 and 2024, respectively.


	Nine Months Ended September 30,
	2025								2024
	Debt Securities		Cash		Currency		Accumulated		Debt Securities		Cash		Currency		Accumulated
	Available-for-sale		Flow Hedges		Translation Adjustments		Other Comp. Loss (1)		Available-for-sale		Flow Hedges		Translation Adjustments		Other Comp. Loss (1)
Balance at beginning of period	$	205	$	2,111	$	(445,710)	$	(443,394)	$	65	$	6,597	$	(336,561)	$	(329,899)
Other comprehensive gain/(loss) before reclassifications	(57)		(364)		160,517		160,096		357		5,609		(2,090)		3,876
Reclassifications, net	—		(5,060)		—		(5,060)		—		(12,597)		—		(12,597)
Net current period other comprehensive gain/(loss)	(57)		(5,424)		160,517		155,036		357		(6,988)		(2,090)		(8,721)
Balance at end of period	$	148	$	(3,313)	$	(285,193)	$	(288,358)	$	422	$	(391)	$	(338,651)	$	(338,620)

(1)Net of deferred taxes for unrealized (gains)/losses from cash flow hedges $1.1 million and $0.1 million for the nine months ended September 30, 2025 and 2024, respectively.

Note 9. Earnings per Share

The following tables provide a reconciliation between basic earnings per share ("EPS") and diluted EPS for the three and nine months ended September 30, 2025 and 2024 (in thousands, except per share amounts):


	Three Months Ended September 30,
	2025					2024
	Net Loss Attributable to PRA Group, Inc.		Weighted Average Common Shares	EPS		Net Income Attributable to PRA Group, Inc.		Weighted Average Common Shares	EPS
Basic EPS	$	(407,703)	39,078	$	(10.43)	$	27,154	39,421	$	0.69
Dilutive effect of nonvested share awards			—	—				71	—

Diluted EPS	$	(407,703)	39,078	$	(10.43)	$	27,154	39,492	$	0.69

	Nine Months Ended September 30,
	2025					2024
	Net Loss Attributable to PRA Group, Inc.		Weighted Average Common Shares	EPS		Net Income Attributable to PRA Group, Inc.		Weighted Average Common Shares	EPS
Basic EPS	$	(361,670)	39,316	$	(9.20)	$	52,145	39,353	$	1.33
Dilutive effect of nonvested share awards			—	—				142	(0.01)
Diluted EPS	$	(361,670)	39,316	$	(9.20)	$	52,145	39,495	$	1.32

Basic EPS are computed by dividing net (loss)/income available to common stockholders of PRA Group, Inc. by weighted average common shares outstanding. Diluted EPS are computed using the same components as basic EPS, with the denominator adjusted for nonvested share awards, if dilutive. Share-based awards that are contingent upon the attainment of performance goals are included in the computation of diluted EPS if the effect is dilutive. For the three and nine months ended September 30, 2025, approximately 0.1 million and 0.2 million antidilutive shares were excluded from the computation of diluted EPS, respectively.

Note 10. Income Taxes

The Company's effective tax rate for the three and nine months ended September 30, 2025 and 2024 was as follows (in thousands):


	Three Months Ended September 30,						Nine Months Ended September 30,
	2025			2024			2025			2024
(Loss)/income before income taxes	$	(379,605)		$	28,250		$	(305,101)		$	76,205
Income tax expense/(benefit)	$	24,361		$	(672)		$	44,088		$	10,416
Effective tax rate	(6.4)		%	(2.4)		%	(14.5)		%	13.7		%

The relationship between (Loss)/income before income taxes and Income tax expense/(benefit) for the three and nine months ended September 30, 2025 was mainly impacted by the goodwill impairment charge.

The relationship between (Loss)/income before income taxes and Income tax expense/(benefit) for the three and nine months ended September 30, 2024 was impacted by a $7.7 million reduction in tax expense due to the reversal of a valuation allowance associated with the resolution of a tax matter in Europe.

Recently enacted tax legislation

On July 4, 2025, the One Big Beautiful Bill Act ("OBBBA") was enacted into law in the U.S. The OBBBA introduced a broad range of tax reform provisions affecting businesses, including the expansion of bonus depreciation and revisions to the U.S. taxation of profits derived from international operations. The legislation has multiple effective dates, with certain provisions effective in fiscal year 2025 and others implemented through fiscal year 2027.

The Company does not expect the relevant provisions of the OBBBA will have a material impact on its 2025 income tax expense and is currently assessing the impact on future periods, which it expects will depend, in large part, on the amount and composition of taxable income generated by the Company.

Note 11. Commitments and Contingencies

Forward flow agreements

The Company enters 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. The amounts purchased are also dependent on actual delivery by the sellers, and while purchases under these agreements comprise a significant portion of the Company's overall purchases, as of September 30, 2025, the estimated minimum contractual purchase obligation under forward flow agreements was not significant.

Litigation and regulatory matters

The Company and its subsidiaries are from time-to-time subject to a variety of legal and regulatory claims, inquiries, proceedings, and other matters, including those described in Note 14 to the Consolidated Financial Statements in the 2024 Form 10-K. The Company accrues for potential liability arising from legal proceedings and regulatory matters when it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. These estimates involve significant judgment, and accordingly, the Company's estimates will change from time-to-time, and actual expenses could exceed the current estimates. As of September 30, 2025, there were no material developments in any of the previously disclosed legal proceedings.

Note 12. Segments

The Company has determined that it is managed on a consolidated basis under a single operating segment, Accounts Receivable Management ("ARM"), and accordingly, it has one reportable segment. The ARM segment is comprised of the Company's primary business, DBC, which generates revenue through the purchase, collection and management of portfolios of nonperforming loans, and CCB, which generates revenue through the purchase of, and provision of fee-based services for, class action claims recoveries in the U.S. The chief operating decision maker ("CODM") is the Company’s chief executive officer, who assesses performance based on the Company's consolidated results prepared in accordance with GAAP.

Segment revenue, significant segment expenses and profit or loss

ARM segment revenue is presented in the Company's Consolidated Income Statements under Total revenues. Significant segment expenses regularly considered by the CODM are those most directly related to the Company's revenue generating activities, including Compensation and benefits, Legal collection costs, Legal collection fees, Agency fees, Professional and outside services and Communication. All other operating expenses appearing in the Consolidated Income Statements constitute other segment items. ARM segment profit or loss is presented in the Company's Consolidated Income Statements under Net (loss)/income attributable to PRA Group, Inc.

Segment assets

ARM segment assets are presented in the Company's Consolidated Balance Sheets under Total assets.

Other segment information

ARM segment profit or loss and segment assets for three and nine months ended September 30, 2025 and 2024 include the following amounts (in thousands):



	Three Months Ended September 30,				Nine Months Ended September 30,
	2025		2024		2025		2024
Interest expense	$	67,094	$	63,169	$	195,896	$	175,282
Interest income	3,007		2,107		8,478		6,589
Depreciation and amortization	1,866		2,469		7,307		7,826

Goodwill impairment	412,611		—		412,611		—
Gain on sale of equity method investment	—		—		38,403		—

					September 30, 2025		December 31, 2024
Equity method investment					—		8,694

Note 13. Recently Issued Accounting Pronouncements

Recently issued accounting pronouncements not yet adopted:

In December 2023, the Financial Accounting Standards Board ("FASB") issued ASU 2023-09, "Income Taxes (Topic 740): Improvements to Income Tax Disclosures" ("ASU 2023-09"), which requires enhanced annual disclosures with respect to the rate reconciliation and income taxes paid information. ASU 2023-09 is effective for fiscal years beginning after December 15, 2024, and may be adopted on a prospective or retrospective basis, with early adoption permitted. The Company plans to adopt ASU 2023-09 on a prospective basis in its annual financial statements for the year ending December 31, 2025 and is currently evaluating the impact on its income tax disclosures.

In November 2024, the FASB issued ASU 2024-03, "Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses" ("ASU 2024-03"). Subsequently, the FASB issued ASU 2025-01 to clarify the effective date of ASU 2024-03. ASU 2024-03 provides guidance that will expand disclosures related to the disaggregation of income statement expenses and is effective for fiscal years beginning after December 15, 2026, and interim periods within annual reporting periods beginning after December 15, 2027, on a retrospective or prospective basis, with early adoption permitted. The Company is evaluating the impact these ASUs will have on its disclosures.

All other recently issued accounting pronouncements not yet adopted have been deemed either immaterial or not applicable.

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations

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.

EXECUTIVE OVERVIEW

General

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. We also purchase and provide fee-based services for class action claims recoveries in the U.S.

The nonperforming loans we acquire are primarily the unpaid obligations of individuals owed to credit originators. Our Core operation specializes in purchasing and collecting nonperforming loans, which are sold by credit originators when they choose not to pursue, or have been unsuccessful in, collecting the full balance owed. Our Insolvency operation consists primarily of purchasing and collecting on nonperforming loans where the customer is involved in a bankruptcy or similar proceeding.

With 2,814 full-time equivalent employees worldwide, we collaborate with customers to help them resolve their debt. For additional information about our business, refer to Part I, Item 1 "Business" in our 2024 10-K.

Third quarter of 2025

Our focus for the third quarter of 2025 was on executing and delivering against our near-term priorities, which, for the U.S. business, included the reorganization of our leadership and governance structure, establishing a talent hub in Charlotte, North Carolina, and bringing our corporate and support staff back to the office. We strengthened our capital structure through the issuance of €300.0 million aggregate principal amount of senior notes due 2032 ("2032 senior notes"), our first bond offering in Europe. We also made progress on our information technology roadmap and capitalized on an opportunity to increase the ERC on certain portfolios by modifying an existing contract, and shortly after quarter-end, we implemented a cost reduction program in the U.S.

Due to a sustained decrease in our stock price and market capitalization, we performed an interim goodwill impairment test during the third quarter and determined that the goodwill in our Debt Buying and Collection ("DBC") reporting unit was fully impaired, which resulted in a non-cash impairment charge of $412.6 million.

Overall, we remain focused on executing our strategy and continuing to improve the financial performance of our business. Our financial results for the quarter included the following:

Portfolio purchases

$255.5 million

Decrease of 27.0% compared to the prior year period, comprised of $154.3 million in the Americas and $101.2 million in Europe. Purchasing levels reflected selective buying this quarter as we sought to balance portfolio returns and leverage.

Cash collections

$542.2 million

Increase of 13.7% compared to the prior year period, comprised of $333.7 million in the Americas and $208.6 million in Europe. Collections were well diversified globally and reflected recent purchasing levels and the continued momentum of our global initiatives, especially in our U.S. legal collections channel.

ERC

$8.4 billion

Increase of 15.2% year-over-year, comprised of $4.2 billion in each of the Americas and Europe. A globally diversified ERC enables us to benefit from the aggregation of individual market risk into a wider global portfolio.

Core Purchase Price Multiples (year-to-date)

2.14x Americas and Australia

Purchasing discipline continued to drive improved multiples in both the Americas and Europe. We heightened our focus on net returns, supported by a global investment framework that targets achievement of minimum return thresholds.

1.88x Europe

Loss before income taxes

($379.6) million

Decrease of $407.9 million compared to the prior year period. Increased revenues, driven by higher portfolio income, were offset by the goodwill impairment charge, increased costs in our U.S. legal channel and higher interest expense.

Net loss attributable to PRA

($407.7) million

Decrease of $434.9 million compared to the prior year period, with diluted EPS of $(10.43). The decrease was driven largely by the tax impact of the goodwill impairment charge and a discrete income tax benefit item recognized in the prior year period.

SUMMARY OF SELECTED FINANCIAL DATA


As of or for the period ended (in thousands, except per share and ratio data)	Third Quarter								Year-to-Date
	2025			2024			% Change		2025			2024			% Change
Income statement
Portfolio income	$	258,549		$	216,122		19.6	%	$	750,441		$	627,468		19.6	%

Changes in expected recoveries	51,358			60,614			(15.3)		112,572			185,608			(39.3)
Total revenues	311,140			281,477			10.5		868,447			821,292			5.7
Total operating expenses	626,687			191,499			227.3		1,024,306			575,696			77.9

Interest expense, net	64,087			61,062			5.0		187,418			168,693			11.1

Gain on sale of equity method investment	—			—			—		38,403			—			100.0
(Loss)/income before income taxes	(379,605)			28,250			(1443.7)		(305,101)			76,205			(500.4)
Income tax expense/(benefit)	24,361			(672)			3725.1		44,088			10,416			323.3

Net (loss)/income attributable to PRA Group, Inc.	(407,703)			27,154			(1601.4)		(361,670)			52,145			(793.6)

Diluted earnings per share	(10.43)			0.69			(1611.6)		(9.20)			1.32			(797.0)
Performance data and ratios
Net (loss)/income attributable to PRA Group (last 12 months)	$	(343,214)		$	43,363		(891.5)	%
Adjusted EBITDA (last 12 months) (1)	1,265,490			1,099,792			15.1
Cash efficiency ratio (2)	(15.4)		%	60.1		%			35.2		%	59.0		%
Adjusted cash efficiency ratio (3)	60.6			60.1					61.3			59.0
Return on average Total stockholders' equity - PRA Group ("ROE") (4)	(144.0)			9.2					(41.8)			6.0
Return on average tangible equity ("ROATE") (5)	(181.6)			14.3					(57.9)			9.4
Adjusted return on average tangible equity ("Adjusted ROATE") (6)	9.3			14.3					6.0			9.4





Portfolio volumes
Portfolio purchases	$	255,492		$	349,978		(27.0)	%	$	893,699		$	975,164		(8.4)	%
Cash collections	542,244			477,110			13.7		1,575,968			1,400,510			12.5
Estimated remaining collections (period-end)	8,399,952			7,293,278			15.2
Balance sheet (period-end)
Finance receivables, net	$	4,572,167		$	4,064,467		12.5	%
Borrowings	3,606,978			3,296,172			9.4
Total stockholders' equity - PRA Group, Inc.	928,493			1,218,882			(23.8)
Credit facility availability (period-end)
Based on current ERC	$	888,904		$	412,740		115.4	%
Additional availability	301,371			585,920			(48.6)
Total availability	1,190,275			998,660			19.2

(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 (loss)/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 cash receipts less Total operating expenses excluding the impact of Goodwill impairment ("Adjusted operating expenses") by cash receipts ("Adjusted cash efficiency ratio"). Adjusted operating expenses is a non-GAAP financial measure. Refer to section "Non-GAAP Financial Measures" for a reconciliation of Total operating expenses, the most directly comparable financial measure calculated and reported in accordance with GAAP, to Adjusted operating expenses.

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

(5)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.

(6)Adjusted ROATE is a non-GAAP financial measure. Refer to section "Non-GAAP Financial Measures" for a reconciliation of Net (loss)/income attributable to PRA Group, Inc., the most directly comparable financial measure calculated and reported in accordance with GAAP, to Net (loss)/income attributable to PRA Group, Inc. excluding the impact of certain transactions that are either unusual or infrequent in nature, or both ("Adjusted net income attributable to PRA Group, Inc.").

RESULTS OF OPERATIONS

Three months ended September 30, 2025 ("Third Quarter 2025" or "Q3 2025") compared to three months ended September 30, 2024 ("Third Quarter 2024" or "Q3 2024"); and nine months ended September 30, 2025 ("Year-to-Date 2025") compared to nine months ended September 30, 2024 ("Year-to-Date 2024").

Portfolio purchases

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


	Third Quarter								Year-to-Date
	2025		2024		$ Change		% Change		2025		2024		$ Change		% Change
Americas and Australia Core	$	139,484	$	263,613	$	(124,129)	(47.1)	%	$	482,084	$	637,034	$	(154,950)	(24.3)	%
Americas Insolvency	14,835		10,162		4,673		46.0		49,974		58,945		(8,971)		(15.2)
Total Americas and Australia	154,319		273,775		(119,456)		(43.6)		532,058		695,979		(163,921)		(23.6)
Europe Core	95,239		71,507		23,732		33.2		346,094		243,495		102,599		42.1
Europe Insolvency	5,934		4,696		1,238		26.4		15,547		35,690		(20,143)		(56.4)
Total Europe	101,173		76,203		24,970		32.8		361,641		279,185		82,456		29.5
Total portfolio purchases	$	255,492	$	349,978	$	(94,486)	(27.0)	%	$	893,699	$	975,164	$	(81,465)	(8.4)	%

Our portfolio purchases reflect a global framework that seeks to optimize our deployment of capital to achieve appropriate returns and take advantage of the opportunities in our markets.

Total portfolio purchases were $255.5 million in Q3 2025, a decrease of $94.5 million, or 27.0%, compared to $350.0 million in Q3 2024. Americas and Australia portfolio purchases decreased $119.5 million, while purchases in Europe increased $25.0 million. Q3 2025 purchases reflected a heightened focus on prioritizing net returns over volumes purchased and balancing purchases with our leverage.

Total year-to-date portfolio purchases were $893.7 million in 2025, a decrease of $81.5 million, or 8.4%, compared to $975.2 million in 2024. Americas and Australia purchases decreased $163.9 million, while purchases in Europe increased $82.5 million.

Cash collections

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


	Third Quarter								Year-to-Date
	2025		2024		$ Change		% Change		2025		2024		$ Change		% Change
Americas and Australia Core	$	310,108	$	266,977	$	43,131	16.2	%	$	899,966	$	787,666	$	112,300	14.3	%
Americas Insolvency	23,568		26,065		(2,497)		(9.6)		71,597		78,244		(6,647)		(8.5)
Total Americas and Australia	333,676		293,042		40,634		13.9		971,563		865,910		105,653		12.2
Europe Core	185,910		158,242		27,668		17.5		535,933		460,914		75,019		16.3
Europe Insolvency	22,658		25,826		(3,168)		(12.3)		68,472		73,686		(5,214)		(7.1)
Total Europe	208,568		184,068		24,500		13.3		604,405		534,600		69,805		13.1
Total cash collections	$	542,244	$	477,110	$	65,134	13.7	%	$	1,575,968	$	1,400,510	$	175,458	12.5	%

Total cash collections were $542.2 million in Q3 2025, an increase of $65.1 million, or 13.7%, compared to $477.1 million in Q3 2024. U.S. Core collections increased $44.7 million, which included a $26.4 million increase in legal collections, driven in large part by higher volumes resulting from the expansion of our U.S. legal collections activity. Europe Core collections increased $27.7 million, spread broadly across most of our markets and due, in part, to favorable foreign exchange variation. These increases were partially offset by a $4.3 million decrease in cash collections in South America, due primarily to lower recent purchasing levels.

Total year-to-date cash collections were $1.6 billion in 2025, an increase of $175.5 million, or 12.5%, compared to $1.4 billion in 2024. U.S. Core collections increased $125.2 million, which included a $77.0 million increase in legal collections, driven in large part by higher volumes resulting from the expansion of our U.S. legal collections activity. Europe Core collections increased $75.0 million, spread broadly across most of our markets and due, in part, to favorable foreign exchange rate variation.

These increases were partially offset by a $19.2 million decrease in cash collections in South America, due primarily to lower recent purchasing levels and unfavorable foreign exchange rate variation.

Portfolio revenue

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


	Third Quarter								Year-to-Date
	2025		2024		$ Change		% Change		2025		2024		$ Change		% Change
Portfolio income	$	258,549	$	216,122	$	42,427	19.6	%	$	750,441	$	627,468	$	122,973	19.6	%
Recoveries collected in excess of forecast	27,351		34,158		(6,807)		(19.9)		84,153		124,256		(40,103)		(32.3)
Changes in expected future recoveries	24,007		26,456		(2,449)		(9.3)		28,419		61,352		(32,933)		(53.7)
Changes in expected recoveries	51,358		60,614		(9,256)		(15.3)		112,572		185,608		(73,036)		(39.3)
Total portfolio revenue	$	309,907	$	276,736	$	33,171	12.0	%	$	863,013	$	813,076	$	49,937	6.1	%

Total portfolio revenue was $309.9 million in Q3 2025, an increase of $33.2 million, or 12.0%, compared to $276.7 million in Q3 2024. Portfolio income increased $42.4 million, or 19.6%, driven largely by the impact of higher recent purchasing and improved pricing. Changes in expected recoveries decreased $9.3 million, or 15.3%. Recoveries collected in excess of forecast decreased $6.8 million due largely to a one-time payment of $15.0 million to a seller in Q3 2025 to allow for the increased use of legal collections on certain previously purchased U.S. Core portfolios, partially offset by higher overperformance on our South American pools. Changes in expected future recoveries, which included the increase in estimated remaining collections resulting from the one-time payment in the U.S., decreased $2.4 million due primarily to a lower net increase in the collections forecasts on certain U.S. Core pools. These decreases were partially offset by a net increase in the collections forecasts on our South American pools in Q3 2025 compared to a net decrease in Q3 2024.

Total year-to-date portfolio revenue was $863.0 million in 2025, an increase of $49.9 million, or 6.1%, compared to $813.1 million in 2024. Portfolio income increased $123.0 million, or 19.6%, driven largely by the impact of higher recent purchasing and improved pricing. Changes in expected recoveries decreased $73.0 million. Recoveries collected in excess of forecast decreased $40.1 million compared to the prior year period due primarily to lower overperformance on our U.S. pools and the one-time payment of $15.0 million to a seller in the current year period to allow for the increased use of legal collections on certain previously purchased U.S. Core portfolios, partially offset by higher overperformance on our European pools across most of our markets. Changes in expected future recoveries, which included the increase in estimated remaining collections resulting from the one-time payment in the U.S., decreased $32.9 million due largely to a net decrease in the collections forecast on our U.S. Core pools compared to a net increase in the prior year period. These decreases were partially offset by a higher net increase in the collections forecast on our European pools and a net increase in the collections forecasts on our South American pools compared to a net decrease in the prior year period.

Gain on sale of equity method investment

In April 2025, we sold our 11.7% interest in RCB Investimentos S.A., a servicing company for nonperforming loans in Brazil, and recorded a gain of $38.4 million in our Consolidated Financial Statements for the second quarter of 2025. The sale did not impact the ownership of our portfolio investments in Brazil or our existing operations and expected future portfolio investments.

Operating expenses

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


	Third Quarter								Year-to-Date
	2025		2024		$ Change		% Change		2025		2024		$ Change		% Change
Compensation and benefits	$	74,237	$	76,106	$	(1,869)	(2.5)	%	$	223,284	$	223,944	$	(660)	(0.3)	%
Legal collection costs	46,764		28,781		17,983		62.5		117,741		90,746		26,995		29.7
Legal collection fees	16,558		14,479		2,079		14.4		47,413		40,353		7,060		17.5
Agency fees	24,556		21,020		3,536		16.8		68,612		61,751		6,861		11.1
Professional and outside services	22,051		20,452		1,599		7.8		64,225		63,626		599		0.9
Communication	8,377		10,048		(1,671)		(16.6)		28,271		34,203		(5,932)		(17.3)
Rent and occupancy	3,654		4,175		(521)		(12.5)		10,638		12,455		(1,817)		(14.6)
Depreciation, amortization and impairment of long-lived assets	2,439		2,469		(30)		(1.2)		8,711		7,826		885		11.3
Goodwill impairment	412,611		—		412,611		100.0		412,611		—		412,611		100.0
Other operating expenses	15,440		13,969		1,471		10.5		42,800		40,792		2,008		4.9
Total operating expenses	$	626,687	$	191,499	$	435,188	227.3	%	$	1,024,306	$	575,696	$	448,610	77.9	%

Compensation and benefits

Compensation and benefits expense was $74.2 million in Q3 2025, a decrease of $1.9 million, or 2.5%, compared to Q3 2024, while the year-to-date expense decreased $0.7 million, or 0.3%. These decreases were primarily due to lower collector compensation costs in the U.S., driven by the consolidation of our U.S. call centers and offshoring of a portion of our U.S. collection activities, partially offset by higher non-collector wage costs.

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. Q3 2025 legal collection costs increased $18.0 million, or 62.5%, compared to Q3 2024, while the year-to-date costs increased $27.0 million, or 29.7%. These increases were driven by an expansion in activity in our U.S. legal collections channel resulting, in large part, from our cash generating initiatives.

Legal collection fees

Legal collection fees represent contingent fees incurred for cash collections generated by our third-party attorney network. Q3 2025 fees increased $2.1 million, or 14.4%, compared to Q3 2024, while year-to-date fees increased $7.1 million, or 17.5%. These increases mainly reflected higher external legal collections within our U.S. Core portfolio resulting, in large part, from the expansion in activity in our U.S. legal collections channel.

Agency fees

Agency fees primarily represent third-party collection fees. Q3 2025 fees increased $3.5 million, or 16.8%, compared to Q3 2024, while year-to-date fees increased $6.9 million, or 11.1%. Higher collection fees in Brazil and increased outsourcing in certain European markets drove the increase for the quarterly period. The increase for the year-to-date period was primarily due to additional fees paid to debt collection agencies in the U.S. and increased outsourcing in Europe.

Communication

Communication expense relates mainly to correspondence, network and calling costs associated with our collection efforts. Q3 2025 communication expense decreased $1.7 million, or 16.6%, compared to Q3 2024, while year-to-date expense decreased $5.9 million, or 17.3%. These decreases were primarily due to a mix of lower-cost communications strategies utilized across our U.S. Core operation.

Goodwill impairment

We recorded a goodwill impairment charge of $412.6 million in Q3 2025 related to our DBC reporting unit. For additional information, refer to Note 4 to our Consolidated Financial Statements included in Part I, Item 1 of this Quarterly Report.

Interest expense, net

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


	Third Quarter								Year-to-Date
	2025		2024		$ Change		% Change		2025		2024		$ Change		% Change
Interest on revolving credit facilities and term loan, and unused line fees	$	40,207	$	34,006	$	6,201	18.2	%	$	115,323	$	101,140	$	14,183	14.0	%
Interest on senior notes	24,911		25,368		(457)		(1.8)		74,734		65,816		8,918		13.5
Amortization of debt premium and issuance costs, net	1,976		3,795		(1,819)		(47.9)		5,839		8,326		(2,487)		(29.9)
Interest income	(3,007)		(2,107)		(900)		42.7		(8,478)		(6,589)		(1,889)		28.7
Interest expense, net	$	64,087	$	61,062	$	3,025	5.0	%	$	187,418	$	168,693	$	18,725	11.1	%

Interest expense, net was $64.1 million in Q3 2025, an increase of $3.0 million, or 5.0%, compared to Q3 2024, while year-to-date expense increased $18.7 million, or 11.1%. These increases were primarily due to higher average debt balances.

Income tax expense/(benefit)

Income tax expense/(benefit) and our effective tax rate were as follows for the periods indicated (in thousands):


	Third Quarter										Year-to-Date
	2025			2024			$ Change		% Change		2025			2024			$ Change		% Change
Income tax expense/(benefit)	$	24,361		$	(672)		$	25,033	3,725.1	%	$	44,088		$	10,416		$	33,672	323.3	%
Effective tax rate	(6.4)		%	(2.4)		%					(14.5)		%	13.7		%

Income tax expense was $24.4 million in Q3 2025, an increase of $25.0 million compared to an income tax benefit of $0.7 million in Q3 2024, while year-to-date expense increased $33.7 million to $44.1 million. The effective tax rate in Q3 2025 was (6.4)% compared to an effective tax benefit rate of (2.4)% in Q3 2024. Our effective tax rate depends on the mix of income from different taxing jurisdictions and the timing and amount of discrete items. The change in the effective tax rate for both the quarterly and year-to-date periods was due largely to the goodwill impairment charge in the current year and a $7.7 million prior year reduction in tax expense due to the reversal of a valuation allowance associated with the resolution of a tax matter in Europe.

Balance sheet

Finance receivables, net

Finance receivables, net were $4.6 billion as of September 30, 2025, an increase of $431.4 million, or 10.4%, compared to $4.1 billion as of December 31, 2024, driven largely by portfolio acquisitions of $893.7 million, foreign currency translation adjustments of $252.3 million and Changes in expected recoveries of $112.6 million, partially offset by recoveries collected and applied to Finance receivables, net of $827.2 million.

Goodwill

Goodwill was $26.9 million as of September 30, 2025, a decrease of $369.5 million, or 93.2%, compared to $396.4 million as of December 31, 2024, due to a goodwill impairment charge. As of September 30, 2025, as part of our interim impairment assessment, based on a sustained decrease in our stock price and market capitalization, we determined there to be an indicator of potential goodwill impairment in our DBC reporting unit. As a result, we performed a quantitative impairment test as of September 30, 2025, and determined that the goodwill in our DBC reporting unit was fully impaired. For additional information, refer to Note 4 to our Consolidated Financial Statements included in Part I, Item 1 of this Quarterly Report. As of September 30, 2025, goodwill consisted of $26.9 million in our Claims Compensation Bureau, LLC reporting unit.

Borrowings

Borrowings were $3.6 billion as of September 30, 2025, an increase of $280.4 million, or 8.4%, compared to $3.3 billion as of December 31, 2024. On September 30, 2025, we completed the issuance of €300.0 million ($352.0 million) in aggregate principal amount of our 2032 senior notes and initially paid down approximately $172.0 million principal amount of outstanding borrowings under each of our North American and European revolving credit facilities with the net proceeds. Issuance of the 2032 senior notes drove an increase of $352.0 million in borrowings under senior notes, which was partially offset by net payments of $53.3 million on our United Kingdom revolving credit facility.

Total stockholders' equity - PRA Group, Inc.

Total stockholders' equity - PRA Group, Inc. was $928.5 million as of September 30, 2025, a decrease of $206.5 million, or 18.2%, compared to $1.1 billion as of December 31, 2024. The decrease was driven primarily by the net loss for the period, partially offset by foreign currency translation adjustments.

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;

•Adjusted cash efficiency ratio, to monitor and evaluate operating expenses;

•ROATE, to monitor and evaluate operating performance relative to our equity; and

•Adjusted ROATE, to standardize ROATE across periods by eliminating certain nonrecurring transactions.

Adjusted EBITDA

We present Adjusted EBITDA because we consider it an important supplemental measure of our operational and financial performance. 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 (loss)/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 (loss)/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;

•goodwill impairment;

•net income attributable to noncontrolling interests;

•gain on sale of equity method investment; and

•recoveries collected and applied to Finance receivables, net less Changes in expected recoveries.

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


	Adjusted EBITDA Reconciliation
	Twelve Months Ended		Year Ended
	September 30, 2025		December 31, 2024
Net (loss)/income attributable to PRA Group, Inc.	$	(343,214)	$	70,601
Adjustments:
Income tax expense	54,704		21,032
Foreign exchange loss	81		9
Interest expense, net	247,992		229,267
Other expense (1)	308		851
Depreciation and amortization	10,273		10,792
Impairment of real estate	1,404		—
Goodwill impairment	412,611		—
Net income attributable to noncontrolling interests	16,809		17,972
Gain on sale of equity method investment	(38,403)		—
Recoveries collected and applied to Finance receivables, net less Changes in expected recoveries	902,925		787,028
Adjusted EBITDA	$	1,265,490	$	1,137,552

(1)Other expense reflects non-operating activities.

Cash efficiency

We use an Adjusted cash efficiency ratio, which is a supplemental measure of performance that is not required by, or presented in accordance with, GAAP, to monitor and evaluate operating expenses, excluding goodwill impairment, relative to our cash collections plus fees and revenue recognized from our class action claims recovery services. Management believes the Adjusted cash efficiency ratio is a useful financial measure for investors in evaluating our management of operating expenses. The Adjusted cash efficiency ratio is calculated by dividing cash receipts less Adjusted operating expenses by cash receipts. The following table provides a reconciliation of Total operating expenses to Adjusted operating expenses and presents our Adjusted cash efficiency ratios for the periods indicated (in thousands, except for ratio data):


	Adjusted Operating Expenses Reconciliation and Adjusted Cash Efficiency Ratio
	Third Quarter						Year-to-Date
	2025			2024			2025			2024
Cash collections	$	542,244		$	477,110		$	1,575,968		$	1,400,510
Fee income	622			3,138			3,745			4,036




Cash receipts	542,866			480,248			1,579,713			1,404,546

Total operating expenses	626,687			191,499			1,024,306			575,696

Less: Goodwill impairment	412,611			—			412,611			—
Adjusted operating expenses	214,076			191,499			611,695			575,696

Cash receipts less Adjusted operating expenses	328,790			288,749			968,018			828,850

Adjusted cash efficiency ratio	60.6		%	60.1		%	61.3		%	59.0		%

Return on average tangible equity and adjusted 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 stockholder 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 annualized Net (loss)/income attributable to PRA Group, Inc. by average tangible equity.

ROATE may include certain items that are not indicative of the ongoing operating results of our business. Accordingly, management also uses Adjusted ROATE to monitor and evaluate operating performance relative to our equity. Management believes Adjusted ROATE is a useful financial measure for investors because it excludes the impact of certain transactions that are either unusual or infrequent in nature, or both. Adjusted ROATE is calculated by dividing Adjusted 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 a reconciliation of Net (loss)/income attributable to PRA Group, Inc. to Adjusted net income attributable to PRA Group, Inc., and presents our ROATE and Adjusted ROATE for the periods indicated (in thousands, except for ratio data):


					Average Tangible Equity Reconciliation (1)
	Balance as of Period End				Third Quarter						Year-to-Date
	September 30, 2025		September 30, 2024		2025			2024			2025			2024
Total stockholders' equity - PRA Group, Inc. (2)	$	928,493	$	1,218,882	$	1,132,709		$	1,182,173		$	1,154,889		$	1,165,196
Less: Goodwill	26,871		423,011		233,160			419,329			320,848			420,517
Less: Other intangible assets	1,470		1,620		1,506			1,609			1,488			1,656
Average tangible equity					$	898,043		$	761,235		$	832,553		$	743,023

(1)Amounts represent the average balances for the respective periods.
(2)Amounts not adjusted for Gain on sale of equity method investment due to the de minimus effect.
					ROATE (3)
					Third Quarter						Year-to-Date
					2025			2024			2025			2024
Net (loss)/income attributable to PRA Group, Inc.					$	(407,703)		$	27,154		$	(361,670)		$	52,145
ROATE					(181.6)		%	14.3		%	(57.9)		%	9.4		%
(3)Based on annualized Net (loss)/income attributable to PRA Group, Inc.

					Adjusted Net Income Attributable to PRA Group, Inc. Reconciliation and Adjusted ROATE (4)
					Third Quarter						Year-to-Date
					2025			2024			2025			2024
Net (loss)/income attributable to PRA Group, Inc.					$	(407,703)		$	27,154		$	(361,670)		$	52,145
Less: Gain on sale of equity method investment, net of tax					-—-			-—-			(29,686)			—

Plus: Goodwill impairment, net of tax					428,580			—			428,580			—
Adjusted net income attributable to PRA Group, Inc.					20,877			27,154			37,224			52,145
Adjusted ROATE					9.3		%	14.3		%	6.0		%	9.4		%
(4)Based on annualized Adjusted 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; and

•nonperforming loan portfolios and collections by geography, portfolio type and year of purchase.

The collections data presented reflects gross cash collections and does not reflect any costs to collect; therefore, it may not represent 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 September 30, (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	$	1,121,962	$	83,141	$	1,205,103	$	635,647	$	63,600	$	699,247	$	1,904,350
2027	860,631		67,524		928,155		536,158		44,596		580,754		1,508,909
2028	592,397		47,649		640,046		450,425		29,390		479,815		1,119,861
2029	405,389		27,712		433,101		386,865		17,170		404,035		837,136
2030	281,785		12,658		294,443		334,663		7,938		342,601		637,044
2031	196,881		2,042		198,923		290,693		2,966		293,659		492,582
2032	138,488		48		138,536		253,674		1,171		254,845		393,381
2033	98,226		3		98,229		222,348		577		222,925		321,154
2034	67,799		1		67,800		195,158		271		195,429		263,229
2035	48,629		—		48,629		172,063		109		172,172		220,801
Thereafter	107,576		—		107,576		593,706		223		593,929		701,505
Total ERC	$	3,919,763	$	240,778	$	4,160,541	$	4,071,400	$	168,011	$	4,239,411	$	8,399,952

(1)Reflects ERC of $3.6 billion for the U.S. and $515.8 million for other Americas and Australia.

(2)Reflects ERC of $1.64 billion for the UK, $1.06 billion for Central Europe, $964.5 million for Northern Europe and $567.7 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):


	Cash Collections by Geography and Portfolio
	Third Quarter							Year-to-Date
	2025			2024				2025			2024
Americas and Australia
Call center and other	$	167,822	54.1%		$	150,103	56.2%		$494,812			55.0%	$454,250		57.7%
Legal	142,286		45.9		116,874		43.8		405,154			45.0	333,416		42.3
Core	310,108		100%		266,977		100%		899,966			100%	787,666		100%
Insolvency	23,568				26,065				71,597				78,244
Total Americas and Australia	$	333,676			$	293,042			$971,563				$865,910

Europe
Call center and other	$	113,330	61.0%		$	98,287	62.1%		$324,619			60.6%	$286,294		62.1%
Legal	72,580		39.0		59,955		37.9		211,314			39.4	174,620		37.9
Core	185,910		100%		158,242		100%		535,933			100%	460,914		100%
Insolvency	22,658				$	25,826			68,472				$	73,686
Total Europe	$	208,568			$	184,068			$	604,405			$	534,600

Total Company
Call center and other	281,152		56.7%		248,390		58.4%		819,431			57.1%	740,544		59.3%
Legal	214,866		43.3		176,829		41.6		616,468			42.9	508,036		40.7
Core	496,018		100%		425,219		100%		1,435,899			100%	1,248,580		100%
Insolvency	46,226				51,891				140,069				151,930
Total cash collections	$	542,244			$	477,110			$	1,575,968			$	1,400,510
Total cash collections adjusted (1)	$	542,244			$	487,294			$	1,575,968			$	1,407,785

(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 September 30, 2025 In thousands
Purchase Period	Purchase Price (1)(2)		Total Estimated Collections (3)		Estimated Remaining Collections (4)		Current Purchase Price Multiple	Original Purchase Price Multiple (5)
Americas and Australia Core
1996-2014	$	2,336,839	$	6,698,114	$	84,642	287%	228%
2015	443,114		920,784		28,969		208%	205%
2016	455,767		1,104,447		48,732		242%	201%
2017	532,851		1,234,254		76,722		232%	193%
2018	653,975		1,561,810		114,403		239%	202%
2019	581,476		1,336,705		104,678		230%	206%
2020	435,668		975,474		109,706		224%	213%
2021	435,846		734,910		191,471		169%	191%
2022	406,082		713,779		237,056		176%	179%
2023	622,583		1,217,624		620,578		196%	197%
2024	823,662		1,794,207		1,341,743		218%	211%
2025	483,333		1,033,958		961,063		214%	214%
Subtotal	8,211,196		19,326,066		3,919,763
Americas Insolvency
1996-2014	1,414,476		2,723,230		2		193%	155%
2015	63,170		88,214		3		140%	125%
2016	91,442		118,571		51		130%	123%
2017	275,257		359,423		362		131%	125%
2018	97,879		137,065		143		140%	127%
2019	123,077		167,787		447		136%	128%
2020	62,130		90,248		3,060		145%	136%
2021	55,187		74,696		10,147		135%	136%
2022	33,442		47,948		16,283		143%	139%
2023	91,282		119,910		62,374		131%	135%
2024	68,391		99,788		70,538		146%	149%
2025	50,001		80,059		77,368		160%	160%
Subtotal	2,425,734		4,106,939		240,778
Total Americas and Australia	10,636,930		23,433,005		4,160,541
Europe Core
1996-2014	814,553		2,705,950		384,326		332%	205%
2015	411,340		768,527		120,755		187%	160%
2016	333,090		590,863		144,627		177%	167%
2017	252,174		364,846		84,606		145%	144%
2018	341,775		563,250		159,355		165%	148%
2019	518,610		876,312		292,208		169%	152%
2020	324,119		602,714		229,314		186%	172%
2021	412,411		728,081		359,607		177%	170%
2022	359,447		593,532		399,825		165%	162%
2023	410,593		699,868		503,908		170%	169%
2024	451,786		817,307		752,460		181%	180%
2025	357,530		671,159		640,409		188%	188%
Subtotal	4,987,428		9,982,409		4,071,400
Europe Insolvency
2014	10,876		19,233		—		177%	129%
2015	18,973		29,622		—		156%	139%
2016	39,338		58,382		497		148%	130%
2017	39,235		52,653		335		134%	128%
2018	44,908		53,300		871		119%	123%
2019	77,218		114,458		5,579		148%	130%
2020	105,440		162,059		9,883		154%	129%
2021	53,230		79,535		14,261		149%	134%
2022	44,604		65,672		26,299		147%	137%
2023	46,558		66,278		39,858		142%	138%
2024	43,459		64,128		47,281		148%	147%
2025	15,888		24,112		23,147		152%	152%
Subtotal	539,727		789,432		168,011
Total Europe	5,527,155		10,771,841		4,239,411
Total PRA Group	$	16,164,085	$	34,204,846	$	8,399,952

(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 September 30, 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
	September 30, 2025 (year-to-date)								As of September 30, 2025
Purchase Period	Cash Collections (2)		Portfolio Income (2)		Changes in Expected Recoveries (2)		Total Portfolio Revenue (2)		Net Finance Receivables (3)
Americas and Australia Core
1996-2014	$	33,116	$	15,076	$	14,539	$	29,615	$	25,383
2015	10,292		6,159		(3,525)		2,634		12,630
2016	14,478		8,358		1,599		9,957		17,005
2017	21,888		11,477		5,393		16,870		31,608
2018	38,675		16,918		8,963		25,881		56,671
2019	37,963		16,735		4,280		21,015		53,085
2020	42,193		17,485		4,356		21,841		57,455
2021	49,989		26,763		(10,142)		16,621		93,816
2022	72,183		31,861		(9,887)		21,974		135,737
2023	182,901		89,871		(33,376)		56,495		332,260
2024	323,633		187,571		26,891		214,462		708,555
2025	72,655		56,814		8,544		65,358		475,270
Subtotal	899,966		485,088		17,635		502,723		1,999,475
Americas Insolvency
1996-2014	716		16		715		731		—
2015	83		5		72		77		2
2016	221		14		120		134		46
2017	827		78		381		459		318
2018	829		29		425		454		134
2019	2,269		78		713		791		425
2020	7,739		670		(1,131)		(461)		2,791
2021	9,227		1,250		314		1,564		9,401
2022	8,178		1,636		478		2,114		14,339
2023	21,637		6,212		498		6,710		52,274
2024	17,177		8,236		(1,177)		7,059		52,606
2025	2,694		2,971		1,335		4,306		50,889
Subtotal	71,597		21,195		2,743		23,938		183,225
Total Americas and Australia	971,563		506,283		20,378		526,661		2,182,700
Europe Core
1996-2014	73,218		43,776		19,058		62,834		86,025
2015	21,742		9,043		7,080		16,123		59,498
2016	20,097		8,757		4,139		12,896		81,902
2017	11,764		4,277		(1,251)		3,026		56,212
2018	26,250		9,330		1,789		11,119		102,423
2019	46,787		14,952		12,991		27,943		196,370
2020	34,169		13,046		10,509		23,555		138,912
2021	45,708		19,334		6,760		26,094		216,925
2022	51,788		20,379		3,229		23,608		251,939
2023	70,508		28,642		5,439		34,081		300,972
2024	103,453		44,540		5,065		49,605		420,530
2025	30,449		14,420		3,954		18,374		343,433
Subtotal	535,933		230,496		78,762		309,258		2,255,141
Europe Insolvency
2014	135		—		135		135		—
2015	119		—		119		119		—
2016	413		62		328		390		128
2017	787		34		501		535		210
2018	1,247		70		311		381		728
2019	5,073		498		433		931		4,745
2020	13,206		988		2,212		3,200		9,221
2021	11,394		1,269		4,102		5,371		12,901
2022	11,855		2,183		2,759		4,942		22,487
2023	11,830		3,225		1,314		4,539		32,904
2024	11,455		4,610		1,020		5,630		35,178
2025	958		723		198		921		15,824
Subtotal	68,472		13,662		13,432		27,094		134,326
Total Europe	604,405		244,158		92,194		336,352		2,389,467
Total PRA Group	$	1,575,968	$	750,441	$	112,572	$	863,013	$	4,572,167

(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 September 30, 2025 exchange rate.


Cash Collections by Year, By Year of Purchase (1) as of September 30, 2025 In millions
			Cash Collections
Purchase Period	Purchase Price (2)(3)		1996-2014		2015		2016		2017		2018		2019		2020		2021		2022		2023		2024		2025		Total
Americas and Australia Core
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	$	33.1	$	6,597.5
2015	443.1		—		117.0		228.4		185.9		126.6		83.6		57.2		34.9		19.5		14.1		17.3		10.3		894.8
2016	455.8		—		—		138.7		256.5		194.6		140.6		105.9		74.2		38.4		24.9		24.0		14.5		1,012.3
2017	532.9		—		—		—		107.3		278.7		256.5		192.5		130.0		76.3		43.8		39.2		21.9		1,146.2
2018	654.0		—		—		—		—		122.7		361.9		337.7		239.9		146.1		92.9		75.9		38.7		1,415.8
2019	581.5		—		—		—		—		—		143.8		349.0		289.8		177.7		110.3		77.7		38.0		1,186.3
2020	435.7		—		—		—		—		—		—		132.9		284.3		192.0		125.8		87.0		42.2		864.2
2021	435.8		—		—		—		—		—		—		—		85.0		177.3		136.8		98.4		50.0		547.5
2022	406.1		—		—		—		—		—		—		—		—		67.7		195.4		144.7		72.2		480.0
2023	622.5		—		—		—		—		—		—		—		—		—		108.5		285.9		182.9		577.3
2024	823.7		—		—		—		—		—		—		—		—		—		—		145.9		323.6		469.5
2025	483.3		—		—		—		—		—		—		—		—		—		—		—		72.6		72.6
Subtotal	8,211.2		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		900.0		15,264.0
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		0.7		2,723.1
2015	63.2		—		3.4		17.9		20.1		19.8		16.7		7.9		1.3		0.6		0.3		0.2		0.1		88.3
2016	91.4		—		—		18.9		30.4		25.0		19.9		14.4		7.4		1.8		0.9		0.6		0.2		119.5
2017	275.3		—		—		—		49.1		97.3		80.9		58.8		44.0		20.8		4.9		2.5		0.8		359.1
2018	97.9		—		—		—		—		6.7		27.4		30.5		31.6		24.6		12.7		2.5		0.8		136.8
2019	123.1		—		—		—		—		—		13.4		31.4		39.1		37.8		28.7		14.6		2.3		167.3
2020	62.1		—		—		—		—		—		—		6.5		16.1		20.4		19.5		17.0		7.7		87.2
2021	55.2		—		—		—		—		—		—		—		4.6		17.9		17.5		15.3		9.2		64.5
2022	33.4		—		—		—		—		—		—		—		—		3.2		9.2		11.1		8.2		31.7
2023	91.2		—		—		—		—		—		—		—		—		—		9.0		25.1		21.6		55.7
2024	68.4		—		—		—		—		—		—		—		—		—		—		12.1		17.2		29.3
2025	50.0		—		—		—		—		—		—		—		—		—		—		—		2.8		2.8
Subtotal	2,425.7		1,949.8		344.2		249.8		222.5		207.9		180.9		155.3		147.4		129.4		104.2		102.3		71.6		3,865.3
Total Americas and Australia	10,636.9		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		971.6		19,129.3
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		73.2		2,061.3
2015	411.3		—		45.8		100.3		86.2		80.9		66.1		54.3		51.4		40.7		33.8		30.4		21.7		611.6
2016	333.1		—		—		40.4		78.9		72.6		58.0		48.3		46.7		36.9		29.7		27.4		20.1		459.0
2017	252.2		—		—		—		17.9		56.0		44.1		36.1		34.8		25.2		20.2		17.9		11.8		264.0
2018	341.8		—		—		—		—		24.3		88.7		71.3		69.1		50.7		41.6		37.1		26.2		409.0
2019	518.6		—		—		—		—		—		48.0		125.7		121.4		89.8		75.1		68.2		46.8		575.0
2020	324.1		—		—		—		—		—		—		32.3		91.7		69.0		56.1		50.1		34.2		333.4
2021	412.4		—		—		—		—		—		—		—		48.5		89.9		73.0		66.6		45.7		323.7
2022	359.4		—		—		—		—		—		—		—		—		33.9		83.8		74.7		51.8		244.2
2023	410.6		—		—		—		—		—		—		—		—		—		50.2		103.1		70.5		223.8
2024	451.9		—		—		—		—		—		—		—		—		—		—		46.3		103.5		149.8
2025	357.5		—		—		—		—		—		—		—		—		—		—		—		30.4		30.4
Subtotal	4,987.4		195.1		343.3		390.6		407.1		443.4		480.2		519.7		614.6		559.7		572.1		623.5		535.9		5,685.2
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		0.1		17.3
2015	19.0		—		3.0		4.4		5.0		4.8		3.9		2.9		1.6		0.6		0.4		0.2		0.1		26.9
2016	39.3		—		—		6.2		12.7		12.9		10.7		7.9		6.0		2.7		1.3		0.8		0.4		61.6
2017	39.2		—		—		—		1.2		7.9		9.2		9.8		9.4		6.5		3.8		1.5		0.8		50.1
2018	44.9		—		—		—		—		0.6		8.4		10.3		11.7		9.8		7.2		3.5		1.2		52.7
2019	77.2		—		—		—		—		—		5.0		21.1		23.9		21.0		17.5		12.9		5.1		106.5
2020	105.4		—		—		—		—		—		—		6.0		34.6		34.1		29.7		25.5		13.2		143.1
2021	53.2		—		—		—		—		—		—		—		5.5		14.4		14.7		15.4		11.4		61.4
2022	44.6		—		—		—		—		—		—		—		—		4.5		12.4		15.2		11.9		44.0
2023	46.7		—		—		—		—		—		—		—		—		—		4.2		12.7		11.8		28.7
2024	43.4		—		—		—		—		—		—		—		—		—		—		9.5		11.5		21.0
2025	15.9		—		—		—		—		—		—		—		—		—		—		—		1.0		1.0
Subtotal	539.7		—		7.3		14.5		22.1		28.8		38.7		58.8		93.0		93.8		91.4		97.4		68.5		614.3
Total Europe	5,527.1		195.1		350.6		405.1		429.2		472.2		518.9		578.5		707.6		653.5		663.5		720.9		604.4		6,299.5
Total PRA Group	$	16,164.0	$	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	$	1,576.0	$	25,428.8

(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. 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 September 30, 2025, cash and cash equivalents totaled $107.5 million, of which $96.3 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 September 30, 2025, we had the following committed amounts, outstanding borrowings and availability under our financing arrangements (in thousands):


	September 30, 2025
							Composition of Total Availability
	Committed Amounts		Outstanding Borrowings		Total Availability		Based on Current ERC (1)		Additional Availability (2)
North American revolving credit facility	$	1,075,000	$	514,039	$	560,961	$	383,739	$	177,222
North American term loan	462,611		462,611		—		—		—
UK revolving credit facility	725,000		440,864		284,136		159,987		124,149
European revolving credit facility	896,509		551,331		345,178		345,178		—
Colombian revolving credit facility	2,465		2,465		—		—		—
Senior notes	1,649,990		1,649,990		—		—		—
Debt premium and issuance costs, net	—		(14,322)		—		—		—
Total	$	4,811,575	$	3,606,978	$	1,190,275	$	888,904	$	301,371

(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 September 30, 2025, interest-bearing deposits totaled $139.7 million. Under our European revolving credit facility, our interest-bearing deposit funding is limited to SEK 2.2 billion (the equivalent of $233.9 million in U.S. dollars as of September 30, 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 common stock or 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 September 30, 2025, we had forward flow agreements in place with an estimated purchase price of approximately $297.8 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 $235.4 million for the Americas and Australia and $62.4 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 make spot purchases of nonperforming loan portfolios.

Borrowings

As of September 30, 2025, we had $3.6 billion in outstanding borrowings. The estimated interest, unused fees and principal payments for the next 12 months are $249.8 million. After 12 months, principal payments on our debt are due from between one and seven years. Our financing arrangements include covenants with which we must comply, and as of September 30, 2025, we were in compliance with these covenants. On September 30, 2025, we completed the private offering of our 2032 senior notes.

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 are also subject to restrictive covenants contained in our credit facilities and the indentures that govern our senior notes.

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 third quarter of 2025, and as of September 30, 2025, we had $57.7 million remaining for share repurchases under the program, subject to the restrictive covenants discussed above.

Leases

Our leases have remaining terms from one to 7 years. As of September 30, 2025, we had $31.2 million in lease liabilities, of which $7.2 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 September 30, 2025, we had $9.1 million of derivative liabilities, of which $1.5 million matures within the next 12 months. The remaining $7.5 million matures in 2028 and later. 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 September 30, 2025, we held $63.2 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):


	Year-to-Date
	2025		2024		Change
Net cash provided by/(used in):
Operating activities	$	(75,622)	$	(137,524)	$	61,902
Investing activities	(16,975)		(183,833)		166,858
Financing activities	74,562		347,073		(272,511)
Effect of foreign exchange rates	21,431		3,024		18,407
Net increase in cash, cash equivalents and restricted cash	$	3,396	$	28,740	$	(25,344)

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 $61.9 million compared to the prior year period, primarily due to higher cash collections recognized as income, partially offset by higher cash paid for interest and taxes.

Investing activities

Net cash used in investing activities decreased $166.9 million compared to the prior year period. The decrease was primarily due to a decrease of $84.9 million in purchases of nonperforming loan portfolios, an increase of $49.2 million in proceeds from sales and maturities of investments and an increase of $42.9 million in recoveries collected and applied to Finance receivables.

Financing activities

Net cash provided by financing activities decreased $272.5 million compared to the prior year period. The decrease was primarily due to a $441.6 million decrease in net proceeds from lines of credit and a $65.7 million decrease related to interest-bearing deposits activity, partially offset by a $250.0 million increase in net proceeds from the issuance and retirement of senior notes. Additionally, we repurchased $10.0 million of our common stock year-to-date 2025 compared to no repurchases during the prior year period.

Effect of foreign exchange rates

The net effect of exchange rates on cash increased $18.4 million compared to the prior year period. The increase was primarily due to the impact of a weakening of the U.S. dollar relative to other currencies 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 and estimated remaining collections of nonperforming loan portfolios.

•"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.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

Our business is subject primarily to interest rate and foreign currency risk. Except for the issuance of our 2032 senior notes, as further discussed below, 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 $3.6 billion in total borrowings as of September 30, 2025, $1.6 billion was fixed rate debt. Considering these fixed rate borrowings and the interest rate hedges on our variable rate debt, with maturities ranging from four months to five years, as of September 30, 2025, 67% of our total debt was either fixed rate or converted to a fixed rate. This represents an increase in our percentage of fixed rate debt compared to recent quarters, driven in large part by the issuance of our 2032 senior notes.

Foreign currency exposure

We operate internationally and enter into transactions denominated in various foreign currencies. During Q3 2025, our revenues from operations outside the U.S. were $152.3 million. Our 2032 senior notes expose us to foreign currency gains and losses on the remeasurement of the notes and interest payments thereon to the U.S. dollar. We hold certain Euro-denominated assets whose foreign currency gains and losses partially offset this exposure.

Item 4. Controls and Procedures

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 September 30, 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 September 30, 2025, that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

PART II. OTHER INFORMATION

Item 1. Legal Proceedings

For information regarding legal proceedings as of September 30, 2025, refer to Note 11 to our Consolidated Financial Statements included in Part I, Item 1 of this Quarterly Report.

Item 1A. Risk Factors

There have been no material changes in our risk factors from those disclosed in Part I, Item 1A of the 2024 Form 10-K.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

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. For additional information, refer to Part I, Item 2 "Management's Discussion and Analysis of Financial Condition and Results of Operations - Liquidity and Capital Resources" of this Quarterly Report.

We did not repurchase any of our common stock during the third quarter of 2025. Our credit facilities and the indentures governing our senior notes contain financial and other restrictive covenants, including restrictions on certain types of transactions and our ability to pay dividends to our stockholders and repurchase our common stock.

Item 3. Defaults Upon Senior Securities

Not applicable.

Item 4. Mine Safety Disclosures

Not applicable.

Item 5. Other Information

None of the Company's directors or officers adopted or terminated a Rule 10b5-1 trading arrangement or non-rule 10b5-1 trading arrangement during the third quarter of 2025.

Item 6. Exhibits


3.1			Fifth Amended and Restated Certificate of Incorporation of PRA Group, Inc. (Incorporated by reference to Exhibit 3.1 of the Current Report on Form 8-K filed June 17, 2020 (File No. 000-50058)).
3.2			Amended and Restated By-Laws of PRA Group, Inc. (Incorporated by reference to Exhibit 3.2 of the Current Report on Form 8-K filed June 17, 2020 (File No. 000-50058)).
4.1			Form of Common Stock Certificate (Incorporated by reference to Exhibit 4.1 of Amendment No. 1 to the Registration Statement on Form S-1 filed October 15, 2002 (Registration No. 333-99225)).
4.2			Form of Warrant (Incorporated by reference to Exhibit 4.2 of Amendment No. 2 to the Registration Statement on Form S-1 filed October 30, 2002 (Registration No. 333-99225)).
4.3			Indenture, dated as of September 22, 2021 among PRA Group Inc., the domestic subsidiaries of PRA Group Inc., party thereto and Regions Banks, as trustee (Incorporated by reference to Exhibit 4.1 to the Current Report on Form 8-K filed September 24, 2021 (File No. 000-50058)).
4.4			Indenture, dated as of February 6, 2023, among PRA Group, Inc., the domestic subsidiaries of PRA Group, Inc., party thereto and Regions Bank, as trustee (Incorporated by reference to Exhibit 4.1 to the Current Report on Form 8-K filed February 6, 2023 (File No. 000-50058)).
4.5			Indenture, dated as of May 20, 2024, among PRA Group, Inc., the domestic subsidiaries of PRA Group, Inc. party thereto and Regions Bank, as trustee (Incorporated by reference to Exhibit 4.1 to the Current Report on Form 8-K filed May 20, 2024 (File No. 000-50058)).
4.6			Indenture, dated as of September 30, 2025, among PRA Group Europe Holding II S.à r.l , PRA Group , Inc., the domestic subsidiaries of PRA Group, Inc., party thereto and U.S. Bank Trustees Limited, as trustee (Incorporated by reference to Exhibit 4.1 to the Current Report on Form 8-K filed October 1, 2025 (File No. 000-50058)).
4.7			Description of the Registrant's Securities Registered pursuant to Section 12 of the Securities Exchange Act of 1934 (Incorporated by reference to Exhibit 4.3 of the Annual Report on Form 10-K filed February 26, 2021 (File No. 000-50058)).










10.1			First Amendment to the Second Amended and Restated Credit Agreement dated October 28, 2024 to the Amended and Restated Credit Agreement dated May 5, 2017 by and among PRA Group Inc. and PRA Group Canada Inc., the Guarantors, the Lenders party thereto and Truist Bank as Administrative Agent (filed herewith).
31.1			Certification of the Chief Executive Officer pursuant to Section 302 of the Sarbanes Oxley Act of 2002 (filed herewith).


31.2			Certification of the Chief Financial Officer pursuant to Section 302 of the Sarbanes Oxley Act of 2002 (filed herewith).
32.1			Certifications of Chief Executive Officer and Chief Financial Officer pursuant to Section 906 of the Sarbanes Oxley Act of 2002 (filed herewith).
101.INS			XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document
101.SCH			XBRL Taxonomy Extension Schema Document
101.CAL			XBRL Taxonomy Extension Calculation Linkable Document
101.LAB			XBRL Taxonomy Extension Label Linkable Document
101.PRE			XBRL Taxonomy Extension Presentation Linkable Document
101.DEF			XBRL Taxonomy Extension Definition Linkbase Document
104			Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)

* Denotes management contract or compensatory plan or arrangement in which directors or executive officers are eligible to participate.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.



	PRA Group, Inc.
	(Registrant)

November 10, 2025	By:	/s/ Martin Sjolund
		Martin Sjolund
		President and Chief Executive Officer
		(Principal Executive Officer)




November 10, 2025	By:	/s/ Rakesh Sehgal
		Rakesh Sehgal
		Executive Vice President and Chief Financial Officer
		(Principal Financial and Accounting Officer)

EX-10.1 2 exhibit101-pra_truistxfirs.htm EX-10.1 Document

Exhibit 10.1 EXECUTION VERSION

FIRST AMENDMENT TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT

This FIRST AMENDMENT TO SECOND AMENDED AND RESTATED CREDIT

AGREEMENT (this “Agreement” or this “Amendment”) is entered into as of September 5, 2025, among PRA GROUP, INC., a Delaware corporation (“PRA”), PRA GROUP CANADA INC., a Canadian corporation amalgamated under the Canada Business Corporations Act (the “Canadian Borrower”, and, together with PRA, the “Borrowers”), the Guarantors party hereto, the Lenders party hereto and TRUIST BANK, as Administrative Agent.

RECITALS

The Borrowers, the Guarantors, the Lenders and TRUIST BANK, as Administrative Agent, Swing Line Lender and L/C Issuer, are party to that certain Second Amended and Restated Credit Agreement dated as of October 28, 2024 (as amended, supplemented, modified and in effect from time to time prior to the date hereof, the “Existing Credit Agreement” and as amended by this Amendment, the “Credit Agreement”), pursuant to which the Lenders agreed to provide senior credit facilities to the Borrowers. Capitalized terms used herein and not otherwise defined shall have the meanings ascribed to them in the Credit Agreement.

The Borrowers have requested that the Administrative Agent and the Lenders agree to certain amendments to the Existing Credit Agreement as set forth herein. The Administrative Agent and the Lenders are willing to agree to such amendments to the Existing Credit Agreement on the terms and subject to the conditions hereinafter set forth.

In consideration of the foregoing recitals and the mutual covenants herein set forth and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, and intending to be legally bound, the Borrowers, the Guarantors party hereto, the Lenders party hereto and the Administrative Agent hereby acknowledge and agree as follows:

ARTICLE I

AMENDMENTS TO EXISTING CREDIT AGREEMENT

The parties hereto agree that Section 8.03(r) of the Existing Credit Agreement is hereby amended to (i) delete the amount “$250,000,000” appearing therein and replace such amount with “$600,000,000” and (ii) delete the percentage “six percent (6%)” appearing therein and replace such percentage with “ten and one half percent (10.5%)”.

ARTICLE II CONDITIONS TO EFFECTIVENESS

The amendments set forth in Article I shall become effective on the date first written above

(the “First Amendment Effective Date”), when the following conditions have been met:

1752351672.3 24771966

1.Counterparts. Receipt by the Administrative Agent of counterparts of this Amendment executed by the Administrative Agent, the Lenders party hereto, the Borrowers and the Guarantors party hereto.

2.Expenses. Receipt by the Administrative Agent of all other reasonable fees and expenses due and owing in connection with this Agreement.

ARTICLE III MISCELLANEOUS

1.Successors and Assigns. This Amendment shall be binding upon and inure to the

benefit of the parties hereto and their respective successors and assigns.

2.Electronic Execution; Electronic Records; Counterparts. This Amendment may be executed in multiple counterparts and by different parties hereto in separate counterparts, all of which, taken together, shall constitute an original. Delivery of an executed counterpart of a signature page of this Amendment by facsimile transmission or electronic transmission (in .pdf) will be effective as delivery of a manually executed counterpart hereof. This Amendment may be in the form of an Electronic Record and may be executed using Electronic Signatures (including facsimile and .pdf) and shall be considered an original, and shall have the same legal effect, validity and enforceability as a paper record. For the avoidance of doubt, the authorization under this Section 3.2 may include use or acceptance by the Administrative Agent of a manually signed paper communication which has been converted into electronic form (such as scanned into “.pdf”), or an electronically signed communication converted into another format, for transmission, delivery and/or retention. Notwithstanding anything contained herein to the contrary, the Administrative Agent is not under any obligation to accept an Electronic Signature in any form or in any format unless expressly agreed to by the Administrative Agent pursuant to procedures approved by it; provided, that, without limiting the foregoing, (a) to the extent the Administrative Agent has agreed to accept such Electronic Signature, the Administrative Agent shall be entitled to rely on such Electronic Signature purportedly given by or on behalf of any Loan Party or any Lender, and (b) upon the request of the Administrative Agent, any Electronic Signature shall be promptly followed by a manually executed, original counterpart.

3.Governing Law. THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.

4.Full Force and Effect; Limited Amendment. Except as expressly amended hereby, all of the representations, warranties, terms, covenants, conditions and other provisions of the Existing Credit Agreement and the other Loan Documents shall remain unchanged and shall continue to be, and shall remain, in full force and effect in accordance with their respective terms and each Borrower and each Guarantor confirms, reaffirms and ratifies all such documents and agrees to perform and comply with the terms and conditions of the Credit Agreement and the other Loan Documents. The amendments set forth herein shall be limited precisely as provided for herein to the provisions expressly amended herein and shall not be deemed to be an amendment to, waiver of, consent to or modification of any other term or provision of the Existing Credit Agreement or any other Loan Document or of any transaction or further or future action on the part of any Loan Party which would require the consent of the Lenders under the Existing Credit Agreement or any of the Loan Documents. This Amendment shall constitute a Loan Document.

1752351672.3 24771966

5.Representations and Warranties. To induce the Administrative Agent and the Lenders to execute and deliver this Amendment, each Borrower hereby represents and warrants to the Administrative Agent and the Lenders as of the First Amendment Effective Date that no Default or Event of Default exists and all statements set forth in Section 5.02(a) of the Credit Agreement are true and correct in all material respects (unless qualified by materiality, in which case, such statement shall be true and correct in all respects) as of such date, except to the extent that any such statement expressly relates to an earlier date (in which case such statement was true and correct in all material respects (unless qualified by materiality, in which case, such statement was true and correct in all respects) on and as of such earlier date).

[SIGNATURE PAGES FOLLOW]

1752351672.3 24771966

1N WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed and delivered by their respective authorized officers as of the day and year first above written.


BORROWERS:			PRA GROUP, INC. By: /s/ Rakesh Sehgal Name: Rakesh Sehgal Title: Executive Vice President, Chief Financial Officer and Treasurer
			PRA GROUP CANADA INC. By: /s/ Dennis Hunter Name: Dennis Hunter Title: Vice President
GUARANTORS:			PORTFOLIO RECOVERY ASSOCIATES, LLC By: /s/ Craig Dewey Name: Craig Dewey Title: President, Secretary and Treasurer
			PRA HOLDING I, LLC PRA HOLDING II, LLC PRA HOLDING III, LLC PRA HOLDING IV, LLC PRA HOLDING V, LLC PRA HOLDING VI, LLC PRA HOLDING VII, LLC By: /s/ Rakesh Sehgal Name: Rakesh Sehgal Title: President and Treasurer
			PRA FINANCIAL SERVICES, LLC By: /s/ Rakesh Sehgal Name: Rakesh Sehgal Title: Manager
			PRA AUTO FUNDING, LLC By: /s/ LaTisha Tarrant Name: LaTisha Tarrant Title: Manager


[Signature Page to First Amendment]


GUARANTORS (cont.):			PRA RECEIVABLES MANAGEMENT, LLC By: /s/ Carol Elizabeth Hardy Name: Carol Elizabeth Hardy Title: Vice President
			CLAIMS COMPENSATION BUREAU, LLC By: /s/ Heather S. Hall Name: Heather S. Hall Title: President


[Signature Page to First Amendment]


			TRUIST BANK, as Administrative Agent and a Lender By: /s/ Madison Waterfield Name: Madison Waterfield Title: Director


[Signature Page to First Amendment]


			BANK OF AMERICA, N.A., as a Lender By: /s/ Holver Rivera Name: Holver Rivera Title: Senior Vice President
			BANK OF AMERICA, N.A., acting through its Canada branch, as a Lender By: /s/ Sylwia Durkiewicz Name: Sylwia Durkiewicz Title: Vice President


[Signature Page to First Amendment]


			MUFG BANK, LTD. f/k/a THE BANK OF TOKYO-MITSUBISHI UFJ, LTD., as a Lender By: /s/ Meng Zhang Name: Meng Zhang Title: Director


[Signature Page to First Amendment]



			FIFTH THIRD BANK, NATIONAL ASSOCIATION, as a Lender By: /s/ Michael J. Schaltz, Jr. Name: Michael J. Schaltz, Jr. Title: Managing Director & SVP
			FIFTH THIRD BANK, NATIONAL ASSOCIATION, acting through its Canada branch, as a Lender By: /s/ Michael Woo Name: Michael Woo Title: Vice President


[Signature Page to First Amendment]


			CAPITAL ONE, N.A., as a Lender By: /s/ Eric Purzycki Name: Eric Purzycki Title: Duly Authorized Signatory


[Signature Page to First Amendment]


			DNB CAPITAL LLC, as a Lender By: /s/ Dania Hinedi Name: Dania Hinedi Title: Senior Vice President By: /s/ Bret Douglas Name: Bret Douglas Title: Senior Vice President


[Signature Page to First Amendment]


			CITIZENS BANK, N.A., as a Lender By: /s/ Christopher Domanico Name: Christopher Domanico Title: Senior Vice President


[Signature Page to First Amendment]


			REGIONS BANK, as a Lender By: /s/ Jon McRae Name: Jon McRae Title: Director


[Signature Page to First Amendment]


			KEYBANK NATIONAL ASSOCIATION, as a Lender By: /s/ Brian P. Fox Name: Brian P. Fox Title: Senior Vice President


[Signature Page to First Amendment]


			FIRST HORIZON BANK, as a Lender By: /s/ Todd Warrick Name: Todd Warrick Title: EVP


[Signature Page to First Amendment]


			ATLANTIC UNION BANK, as a Lender By: /s/ Matthew Sawyer Name: Matthew Sawyer Title: Managing Director


[Signature Page to First Amendment]


			RAYMOND JAMES BANK, as a Lender By: /s/ Fern S. Lindsay Name: Fern S. Lindsay Title: SVP


[Signature Page to First Amendment]


			SOUTHSTATE BANK, as a Lender By: /s/ Brian Combs Name: Brian Combs Title: Senior Vice President


[Signature Page to First Amendment]


			ING Capital LLC, as a Lender By: /s/ Patrick Frisch Name: Patrick Frisch Title: Managing Director By: /s/ Alex Kreissman Name: Alex Kreissman Title: Director


[Signature Page to First Amendment]

EX-31.1 3 q32025exhibit311.htm EX-31.1 Document

Exhibit 31.1

I, Martin Sjolund, certify that:

1.I have reviewed this quarterly report on Form 10-Q of PRA Group, Inc.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the periods covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.


November 10, 2025	By:	/s/ Martin Sjolund
		Martin Sjolund
		President and Chief Executive Officer
		(Principal Executive Officer)

EX-31.2 4 q32025exhibit312.htm EX-31.2 Document

Exhibit 31.2

I, Rakesh Sehgal, certify that:

1. I have reviewed this quarterly report on Form 10-Q of PRA Group, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the periods covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.


November 10, 2025	By:	/s/ Rakesh Sehgal
		Rakesh Sehgal
		Executive Vice President and Chief Financial Officer
		(Principal Financial and Accounting Officer)

EX-32.1 5 q32025exhibit321.htm EX-32.1 Document

Exhibit 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of PRA Group, Inc. (the "Company") on Form 10-Q for the quarter ended September 30, 2025 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Martin Sjolund, President and Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company.


November 10, 2025	By:	/s/ Martin Sjolund
		Martin Sjolund
		President and Chief Executive Officer
		(Principal Executive Officer)

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of PRA Group, Inc. (the "Company") on Form 10-Q for the quarter ended September 30, 2025 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Rakesh Sehgal, Executive Vice President and Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company.


November 10, 2025	By:	/s/ Rakesh Sehgal
		Rakesh Sehgal
		Executive Vice President and Chief Financial Officer
		(Principal Financial and Accounting Officer)