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

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

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

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 May 1, 2026 was 38,140,888.

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

PRA Group, Inc. is a specialty finance company headquartered in Norfolk, Virginia and incorporated in Delaware. The Company's primary business is the purchase, collection and management of nonperforming loan portfolios. Most of the Company's purchases are from credit originators who have chosen not to pursue, or have been unsuccessful in collecting, the full balance owed to them ("Core" accounts). To a lesser extent, it also purchases loans in situations where the customer is involved in a bankruptcy or similar proceeding ("Insolvency" accounts). The Company's principal markets are the United States (“U.S.”) and Europe, and on a significantly smaller scale, it also operates in South America, Canada and Australia. As part of an ancillary business, the Company purchases and provides fee-based services for class action claims recoveries in the U.S.

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, 2025 (the "2025 Form 10-K").

In the Consolidated Statements of Changes in Equity, certain prior period amounts have been reclassified for consistency with the current period presentation.

Finance receivables, net consisted of the following as of March 31, 2026 and December 31, 2025 (in thousands):

Changes in Finance receivables, net for the three months ended March 31, 2026 and 2025 were as follows (in thousands):

The initial negative allowance for expected recoveries on purchases made during the three months ended March 31, 2026 and 2025 was as follows (in thousands):

The purchase price for purchases made during the three months ended March 31, 2026 and 2025 was as follows (in thousands):

Recoveries collected and applied to Finance receivables, net for the three months ended March 31, 2026 and 2025 were as follows (in thousands):

(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.

Changes in expected recoveries for the three months ended March 31, 2026 and 2025 were as follows (in thousands):

Changes in expected recoveries for the three months ended March 31, 2026 were $43.9 million, which included $22.7 million in recoveries collected in excess of forecast and a $21.2 million positive adjustment to changes in expected future recoveries. Recoveries collected in excess of forecast were due primarily to cash collections overperformance in Europe, and to a lesser extent, in South America and the U.S. Changes in expected future recoveries were based on the Company's forecasting models and evaluations of recent performance and were due largely to an increase in the collections forecasts of certain European pools. In the U.S., the impact of an increase in the collections forecast for the 2024 Core pool was partially offset by a decrease in the forecast for the 2023 Core pool and the impact of changes in the expected timing of collections for the 2025 Core pool.

Changes in expected recoveries for the three months ended March 31, 2025 were $27.9 million, which included $16.5 million in recoveries collected in excess of forecast and $11.4 million in changes in expected future recoveries. Recoveries collected in excess of forecast were largely due to cash collections overperformance in Europe and South America, partially offset by underperformance in the U.S. Changes in expected future recoveries were primarily due to the impact of an increase in the collections forecasts on certain U.S. Core and European pools.

Investments consisted of the following as of March 31, 2026 and December 31, 2025 (in thousands):

As of March 31, 2026, the Company's investments in debt securities consisted of Swedish treasury securities maturing within one year and Finnish corporate notes maturing in approximately three years. As of March 31, 2026 and December 31, 2025, the amortized cost and fair value of these investments were as follows (in thousands):

Changes in goodwill for the three months ended March 31, 2026 and 2025, were as follows (in thousands):

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 March 31, 2026, the Company determined there were no indicators that goodwill was more-likely-than-not impaired.

Borrowings consisted of the following as of March 31, 2026 and December 31, 2025 (in thousands):

(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 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. The Company amended and extended this facility on April 30, 2026 (refer to Note 15 for additional details).

For additional information about the Company's credit facilities, term loan and senior notes, refer to Note 7 to the Consolidated Financial Statements in the 2025 Form 10-K. The Company was in compliance with the covenants contained in its financing arrangements as of March 31, 2026.

The Company periodically enters into interest rate swaps to reduce its exposure to fluctuations in interest rates on variable-rate debt (cash flow hedges) and foreign exchange forward contracts to reduce its exposure to foreign currency exchange rates (economic hedges).

The line-items and fair values for these instruments in the Consolidated Balance Sheets as of March 31, 2026 and December 31, 2025 was as follows (in thousands):

Prepaid expenses and other assets and Other liabilities as of March 31, 2026, totaled $134.8 million and $99.5 million, respectively. The increases compared to December 31, 2025 were due primarily to the receipt of a derivative settlement payment made in error by the financial institution counterparty on March 31, 2026. The funds were recorded as restricted cash on March 31, 2026, and returned to the counterparty the following day.

The effects of interest rate swaps designated as cash flow hedging instruments for the three months ended March 31, 2026 and 2025 were as follows (in thousands):

As of March 31, 2026 and December 31, 2025, the notional amount of outstanding interest rate swaps was $675.8 million and $883.0 million, respectively. These swaps remained highly effective as of March 31, 2026 and have remaining terms ranging from 10 months to approximately four years. As of March 31, 2026, the Company estimates that approximately zero net derivative losses included in other comprehensive income ("OCI") will be reclassified into earnings within the next 12 months.

The effects of foreign exchange forward contracts not designated as hedging instruments for the three months ended March 31, 2026 and 2025 were as follows (in thousands):

As of March 31, 2026 and December 31, 2025, the notional amount of outstanding foreign exchange forward contracts was $432.9 million and $444.2 million, respectively.

The Company's policy is to report derivative asset and liability positions on a gross basis. As of March 31, 2026, none of the open derivative positions would have been eligible for offsetting under the terms of the Company's netting agreements.

As of March 31, 2026 and December 31, 2025, financial instruments measured at fair value on a recurring basis were as follows (in thousands):

(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.

As of March 31, 2026 and December 31, 2025, the estimated fair value and carrying amount of financial instruments not carried at fair value were as follows (in thousands):

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

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

Due to the inherent uncertainty of determining the fair value of Level 3 financial instruments, the fair value of these instruments may differ significantly from the values that would have been used had a ready market or observable inputs existed for such instruments and may differ materially from the values that may ultimately be received or settled.

Reclassifications out of Accumulated other comprehensive loss for the three months ended March 31, 2026 and 2025, were as follows (in thousands):

(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 months ended March 31, 2026 and 2025, were as follows (in thousands):

(1)Net of deferred taxes for unrealized gains from cash flow hedges of $0.8 million and $3.1 million for the three months ended March 31, 2026 and 2025, respectively.

In February 2022, the Board of Directors approved a share repurchase program under which the Company is authorized to repurchase up to $150.0 million of its outstanding common stock. During the three months ended March 31, 2026, the Company repurchased 546,681 shares of its common stock at an average price of $18.29 per share for a total of $10.0 million. Share repurchases are subject to restrictive covenants contained in the Company's credit facilities and the indentures that govern its senior notes. The Company's practice is to retire the shares it repurchases. As of March 31, 2026, there was $37.7 million remaining for share repurchases under the program.

The following tables provide a reconciliation between basic earnings per share ("EPS") and diluted EPS for the three months ended March 31, 2026 and 2025 (in thousands, except per share amounts):

Basic EPS are computed by dividing net 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.

The Company's effective tax rate for the three months ended March 31, 2026 and 2025 was as follows (in thousands, except percentages):

The relationship between Income before income taxes and Income tax expense for the three months ended March 31, 2026 and 2025 was impacted by the Company's pretax income, mix of income from different taxing jurisdictions and the timing and amount of discrete items.

Each interim period is considered an integral part of the annual period and tax expense or benefit is measured using an estimated annual effective income tax rate. The estimated annual effective tax rate for the full year is applied to the respective interim period, taking into account year-to-date amounts and projections for the remainder of the year. Since the Company operates in foreign countries with varying tax rates, the Company’s quarterly effective tax rate is dependent, in part, on the level of income or loss from its international operations.

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 March 31, 2026, the estimated minimum contractual purchase obligation under forward flow agreements was not significant.

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 15 to the Consolidated Financial Statements in the 2025 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 March 31, 2026, there were no material developments in any of the previously disclosed legal proceedings.

The Company has determined that its U.S. and European businesses are reportable segments. The U.S. reportable segment includes the operating results of the Company's class action claims recoveries business, which are not material to the segment as a whole.

The chief operating decision maker ("CODM") is the Company’s chief executive officer ("CEO"). The primary profitability measure used by the CEO to evaluate performance and allocate resources is Income from operations excluding goodwill impairment, when applicable, and certain unallocated corporate expenses ("Adjusted segment operating income"). The Company does not report a measure of segment assets as that information is not regularly provided to the CEO. Intersegment and other intercompany transactions are executed on an arms-length basis. All prior period disclosures have been recast to reflect the reportable segment reorganization that occurred as of December 31, 2025.

Segment operating results and reconciliations to the consolidated totals for the three months ended March 31, 2026 and 2025 were as follows (in thousands):