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 March 31, 2024 ☐ 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 jurisdicti ...

PRA Group Q1 2024 Conference Call Presentation Forward-Looking Statements You are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date of this presentation and are qualified in their entirety by these cautionary statements. 1 Nasdaq: PRAA Drive the Turnaround Stabilize Performance 2023 2024 Roadmap to Enhanced Profitability Value Creation from Higher Cash Collections While Reducing Marginal Costs Increase ERC and portfolio returns Deepening seller relationship ...

Financial Data and Key Metrics - Total revenues for Q1 2024 were $256 million, with portfolio revenue contributing $254 million, including $202 million in portfolio income and $52 million in changes in expected recoveries [36] - Cash collections for the quarter were $450 million, up 9% YoY and 7% on a constant currency basis, driven by strong performance in the U S and Brazil [51] - ERC (Expected Recoverable Collections) at March 31 was $6 5 billion, up 15% YoY, with $1 6 billion expected to be collected in the next 12 months [62] - Net income attributable to PRA was $3 million or $0 09 in diluted earnings per share [50] Business Line Performance - Americas cash collections increased 11% YoY (10% on a constant currency basis), driven by higher collections in the U S and Brazil [51] - U S cash collections increased 9% YoY, with U S Core cash collections up 23% sequentially in Q1 2024, reflecting higher portfolio purchases and cash-generating initiatives [52] - European cash collections increased 6% YoY (3% on a constant currency basis) [52] - Portfolio income grew YoY for the third consecutive quarter, driven by higher recent purchases and improved returns, particularly in the U S [45] Market Performance - In the Americas, the company invested $197 million in Q1 2024, up 48% YoY, with $187 million deployed in the U S, up 71% YoY, reflecting the second-highest Q1 U S investment level in company history [34] - In Europe, the company invested $49 million in Q1 2024, influenced by low market volumes, but expects a significant uptick in Q2 purchases [35][44] - The U S Core Vintage pricing improved to 2 11 times at the end of Q1 2024, compared to 1 97 times for the full year 2023 [34] Strategic Direction and Industry Competition - The company's turnaround strategy is supported by three pillars: optimizing investments, driving operational execution, and managing expenses [16] - The U S market continues to see strong credit normalization, with credit card balances exceeding $1 trillion and delinquency and charge-off rates rising to 3 1% and 4 2%, respectively [17] - The company is strategically deploying capital in markets with the most attractive returns, benefiting from repriced forward flows and improved pricing [18] - In Europe, the company maintains a disciplined underwriting and purchasing approach, with a stable management team and a long track record of healthy investments [43] Management Commentary on Operating Environment and Future Outlook - Management expressed confidence in the U S market, citing strong cash initiatives and improved collections from older vintages [2][5] - The company expects continued growth in U S portfolio purchases due to increasing supply and improved pricing [29] - In Europe, the company anticipates stronger investment volumes in Q2 2024, aligning with long-term trends [30] - Management reiterated financial and operational targets for 2024, including double-digit cash collection growth, modest expense growth, and a return on average tangible equity between 6% and 8% [65] Other Important Information - The company has $3 1 billion in total committed capital under its credit facilities, with margins ranging from 235 to 380 basis points over benchmark rates [56] - Operating expenses for Q1 2024 were $189 million, including $6 million in outsized corporate legal and consulting expenses [57] - The company's leverage ratio was 2 83 times debt-to-adjusted EBITDA as of March 31, within the target range of 2 to 3 times [63] Q&A Session Summary Question: Non-controlling interest expense in Brazil - The company has a joint venture structure in Brazil, with strong performance driven by a focus on the auto market and disciplined investments [69][70] - Management is evaluating opportunities for consolidation but continues to work with partners [69] Question: Europe market activity and competition - The company expects Q2 2024 purchases in Europe to be around $100-$110 million, reflecting a tangible pickup in supply [75][76] - Competition in Europe remains aggressive, with no significant pullback from competitors despite market challenges [81] Question: Wage garnishment and regulatory risks - Wage garnishment is a standard, well-established element of the U S legal process, with no regulatory concerns [95] Question: Cash efficiency target - The company aims for a 60% cash efficiency target for 2024, with potential improvements beyond that in 2025 [92][96] Question: Legal expenses in Europe - Higher legal expenses in Q1 2024 were due to a catch-up in court activity, and the company does not expect this level to be the new baseline [117]

PRA Group Reports First Quarter 2024 Results Accelerated Turnaround of U.S. Business Continuing to Gain Momentum NORFOLK, Va., May 6, 2024 - PRA Group, Inc. (Nasdaq: PRAA) (the "Company"), a global leader in acquiring and collecting nonperforming loans, today reported its financial results for the first quarter of 2024 ("Q1 2024"). Q1 2024 Highlights • Total portfolio purchases of $245.8 million. • Total cash collections of $449.5 million. • Estimated remaining collections (ERC)1 of $6.5 billion. • Cash eff ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ Annual Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the fiscal year ended December 31, 2023 ☐ 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 (I.R.S. Employer Identification ...

PRA Group, Inc. (NASDAQ:PRAA) Q4 2023 Earnings Conference Call February 15, 2024 5:00 PM ET Company Participants Najim Mostamand - CFA, Vice President, Investor Relations Vikram Atal - President and Chief Executive Officer Rakesh Sehgal - Executive Vice President, Chief Financial Officer Conference Call Participants David Scharf - JMP Securities Mark Hughes - Truist Securities John Rowan - Janney Montgomery Scott Robert Dodd - Raymond James Operator Good evening and welcome to PRA Group's Fourth Quarter and ...

Enhanced vendor management Dynamic business prioritization Rebalance Resources to Leverage Lower-Cost Locations Expanded relationships with existing third parties Onboarding third parties to support strategic initiatives Offshoring multiple processes to lower-cost locations Launched offshore call center (Q4 2023), with significant expansion planned Leveraging third-party vendors Cost elimination/ restructuring Productivity enhancements Establishing flexibility Lower marginal costs U.S. Portfolio Purchases U ...

Financial Data and Key Metrics - Portfolio purchases in Q3 2023 were $311 million, up 70% YoY, driven by increased forward-flow volumes and spot transactions [40] - Americas investments in Q3 2023 were $232 million, the highest quarterly level since 2017, with US market investment levels increasing for the fourth consecutive quarter [41] - Net interest expense for Q3 2023 was $49 million, up $17 million YoY, primarily due to higher debt balances and increased interest rates [45] - Cash collections for Q3 2023 were $420 million, a 2% increase YoY, with higher collections in Brazil and Europe partially offset by lower collections in the US [45] - ERC (Expected Recoverable Collections) at September 30, 2023, was $6 billion, up 12% YoY, with US ERC increasing by $135 million sequentially [54] Business Line Performance - Americas core vintage purchase price multiple expanded from 1.75x at the end of Q1 2023 to 1.9x by the end of Q3 2023, reflecting improved pricing and returns [42] - European investments in Q3 2023 were $79 million, with stable forward-flow volumes and competitive market conditions [44] - Legal collection costs in Q3 2023 were $21 million, down $3 million YoY, with expectations for Q4 2023 to be in the low to mid $20 million range [52] Market Performance - US credit card charge-off rates are trending higher, reaching 3.2%, indicating continued credit normalization from pandemic-era lows [43] - In Europe, cost-of-living pressures have impacted some markets, leading to fewer large one-time payments, but the proportion of paying customers remains stable [46] - The company expects to collect $1.5 billion of its ERC balance over the next 12 months, with $841 million needed globally to replace runoff and maintain current ERC levels [54] Strategic Direction and Industry Competition - The company is focusing on portfolio supply, pricing, operational effectiveness, and efficiency to drive improved financial performance in 2024 and beyond [32][38] - Operational initiatives include enhancing legal collection activities, leveraging third-party resources, and improving call center productivity [35][36] - The company is exploring offshoring and outsourcing opportunities to reduce costs, with pilot programs underway and expected to expand over the next 12-18 months [37][63] Management Commentary on Operating Environment and Future Outlook - Management is encouraged by the US market, with investment levels and pricing increasing, and expects this to positively impact portfolio income [41] - The company anticipates continued credit normalization, with increased supply and improved pricing driving future cash collections and revenues [34][38] - Management expects the cash efficiency ratio to improve to the low 60s by the end of 2024, driven by higher pricing and efficiency initiatives [38][65] Other Important Information - The company has $3.1 billion in committed capital under its credit facilities, with $1.1 billion of additional availability subject to debt covenants and advance rates [48] - Debt-to-adjusted EBITDA leverage ratio was 2.8x at September 30, 2023, with expectations for leverage to increase slightly as capital is deployed at favorable returns [54] Q&A Session Summary Question: Timeline for improving cash efficiency ratio to the low 60s - The company expects to achieve the low 60s cash efficiency ratio by the end of 2024, driven by higher pricing and efficiency initiatives [1][65] Question: Long-term platform underinvestment and potential rebuild - The company is reviewing its systems architecture and plans to prioritize upgrades over the next 12 months, with a focus on maintaining momentum in operational initiatives [68][69] Question: Consumer credit normalization and its impact on collections - The company sees limited evidence of consumer pressure in the US, with cash collections expected to continue growing as credit normalizes further [14][46] Question: Outsourcing and offshoring strategies - The company is piloting offshoring programs and leveraging third-party resources in the US, with plans to expand these initiatives over the next 6-9 months [63][84] Question: Portfolio purchase outlook and yield improvement - The company expects to see improved portfolio yields over the next 24 months, driven by higher purchase multiples and operational initiatives [60][62] Question: European market performance compared to competitors - The company's European business has consistently performed well, with stable payer rates despite cost-of-living pressures in some markets [80][81] Question: Status of loan covenants and debt availability - The company has $1.1 billion of additional availability under its credit facilities, with no changes to loan covenants following the Q1 2023 event [85][86] Question: Portfolio mix and private label vs. general purpose credit cards - Private label as a percentage of portfolio purchases has declined YoY, with no material change in average balances or collectability [87]

PRA Group Q3 2023 Conference Call Presentation Forward-Looking Statements You are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date of this presentation and are qualified in their entirety by these cautionary statements. 1 Nasdaq: PRAA | --- | --- | --- | |-----------------------------|----------------------------|------------| | | | | | Portfolio Supply & Pricing | Operational Effectiveness | Efficiency | Stable Investments in Europe with Growing Supply in ...

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, 2023 ☐ 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) (State or other jurisdiction of incorporat ...