Financial Data and Key Metrics Changes - Portfolio purchases in Q1 2025 were $368 million, up 24% compared to Q1 2024, while collections reached $654 million, an increase of 18% [6][13][14] - Earnings per share for Q1 2025 were $1.93, reflecting a 103% increase from $0.95 in Q1 2024 [6][29] - Leverage improved to 2.6 times, down from 2.8 times a year ago, and flat compared to Q4 2024 [7][31] - Cash generation for the trailing twelve months was up 23% compared to the same period last year [14] Business Line Data and Key Metrics Changes - Midland Credit Management (MCM) in the U.S. had record portfolio purchases of $316 million, a 34% increase year-over-year, and collections of $454 million, up 23% [8][17] - Cabot Credit Management in Europe reported portfolio purchases of $51 million, consistent with historical trends, and collections of $150 million, up 7% [8][18] Market Data and Key Metrics Changes - U.S. revolving credit remains near record levels, with the credit card charge-off rate at its highest in over ten years, indicating favorable purchasing conditions [15][17] - U.S. consumer credit card delinquencies are near multi-year highs, supporting expectations for strong portfolio sales by banks and credit card issuers in 2025 [15][16] Company Strategy and Development Direction - The company focuses on markets with strong regulatory frameworks and stable long-term returns, primarily in the U.S. and the U.K. [12] - The three-pillar strategy emphasizes market focus, operational efficiency, and compliance to enhance performance and shareholder value [11][32] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the favorable U.S. market conditions, anticipating continued growth in portfolio purchasing and collections in 2025 [34][35] - The company expects global portfolio purchasing in 2025 to exceed $1.35 billion, with global collections projected to grow by 11% to $2.4 billion [35] Other Important Information - The company resumed share repurchases in Q1 2025, purchasing $10 million worth of shares [7][33] - Interest expense increased by 30% to $69 million due to higher debt balances and interest rates [28] Q&A Session Summary Question: Was the collections performance at Cabot a function of updated forecasts or underlying improvements? - Management indicated it was a combination of both improved operations and updated forecasts [40][41] Question: What is the expected collections multiple for U.S. and Cabot? - Both MCM and Cabot had a collections multiple of 2.3 times for Q1 [42] Question: Are purchasing conditions in the U.S. stable? - Management confirmed that purchasing conditions remain favorable, with stable delinquency and charge-off rates [44][45] Question: Any volatility in collectability during Q1? - Management reported stable consumer behavior and no significant issues during tax season [46][47] Question: What drives cash overs and negative revisions to forecasted recoveries? - Management explained that cash overs and NPV changes are based on different vintages and are not always directly correlated [53][55] Question: How should the $21.5 million of changes in recoveries be viewed from a core EPS perspective? - Management indicated that this could translate to about 73 cents impact on EPS, but emphasized the strong collections performance [58][60] Question: Will the pace of buybacks continue throughout 2025? - Future buybacks will depend on financial conditions and market opportunities, but the company has resumed repurchases as planned [61][63] Question: What is attracting the U.S. market for purchases going forward? - Management noted ample supply and strong returns, with expectations for record purchasing in 2025 [67][68] Question: Any unusual mix between new payment plans and one-time payments during Q1? - Management confirmed that there were no unusual changes in payment types, with consistent performance across all channels [72][74] Question: How long before a newly acquired bank might start selling into the market? - Management suggested it would take time for any new seller to align strategies and begin selling, indicating a gradual process [76][77]

PRA Group Q1 2025 Conference Call Presentation Nasdaq: PRAA Forward-Looking Statements 1 Nasdaq: PRAA Q1 2025 Highlights Started 2025 with Momentum and Delivered Strong Results | Metric ($ in M, except per share amounts) | Q1 2025 | Q1 2024 | Change | | --- | --- | --- | --- | | Portfolio Purchases | $292 | $246 | +19% | | ERC1 | $7,805 | $6,498 | +20% | | Cash Collections | $497 | $450 | +11% | | Cash Efficiency Ratio2 | 60.8% | 58.0% | +284 bps | | Changes in Expected Recoveries | $28 | $52 | (46%) | | Ne ...

Core Insights - PRA Group, Inc. reported a record estimated remaining collections (ERC) of $7.8 billion, reflecting a 20.1% year-over-year increase, driven by a 19% growth in portfolio purchases [1][8] - The company achieved total cash collections of $497.4 million in Q1 2025, marking a 10.7% increase compared to $449.5 million in Q1 2024 [5][8] - The transition to the newly appointed CEO Martin Sjolund is expected to enhance the company's strategic initiatives and operational efficiency [1][4] Financial Performance - Net income attributable to PRA Group, Inc. for Q1 2025 was $3.7 million, a 5.3% increase from $3.5 million in Q1 2024, with diluted earnings per share remaining at $0.09 [4][19] - Total portfolio revenue increased by 6.0% to $268.9 million in Q1 2025, compared to $253.7 million in Q1 2024 [6][8] - Operating expenses rose by 3.1% to $195.0 million in Q1 2025, primarily due to investments in the U.S. legal collections channel [17][19] Cash Collections and Portfolio Purchases - Total portfolio purchases reached $291.7 million in Q1 2025, an 18.7% increase from $245.8 million in Q1 2024 [9][8] - Cash collections from the Americas and Australia Core segment amounted to $288.2 million in Q1 2025, up from $256.9 million in Q1 2024 [5][9] - The company reported a cash efficiency ratio of 60.8%, reflecting an improvement of 284 basis points year-over-year [8] Strategic Outlook - The company maintains its long-term financial targets, with an expectation that the return on average tangible equity will be lower than the previously targeted 12% [4][8] - The management is optimistic about the overall trajectory of the business, emphasizing a commitment to driving growth, profitability, and shareholder value [4][8]

NORFOLK, Va., April 21, 2025 /PRNewswire/ -- PRA Group, Inc. (Nasdaq: PRAA), a global leader in acquiring and collecting nonperforming loans, will report its first quarter 2025 results after market close on Monday, May 5, 2025, followed by a webcast and conference call at 5 p.m. E.T.To listen to PRA Group's webcast and view the corresponding slides, visit https://ir.pragroup.com/events-and-presentations. To listen by phone on May 5, call 646-357-8785 in the U.S. or 1-800-836-8184 outside the U.S. and ask fo ...

PRA Group, Inc. (PRAA) is strategically positioned to grow in collecting debts. It expanded its services beyond debt collection, working for the government and giving audit services. Although PRAA has declined 4.9% in the past month, it shed less value than the industry average of an 11.5% fall.PRA Group — with a market cap of $708.8 million — is a global finance and business service company based in Norfolk, VA. It acquires and collects non-performing loans and debt. The company has a growing network in th ...

Core Points - PRA Group, Inc. has appointed Martin Sjolund as President and CEO effective June 17, 2025, succeeding Vikram Atal, who will retire and serve as a senior advisor until December 31, 2025 [1][2] - The Board of Directors emphasized that this leadership transition is part of an ongoing succession planning process aimed at ensuring long-term, profitable growth for the company [2] - Sjolund has a strong track record in the European market, having overseen nearly $3 billion in portfolio investments and significantly improved profitability during his tenure as President of PRA Group Europe [3] Company Overview - PRA Group, Inc. is a global leader in acquiring and collecting nonperforming loans, helping to return capital to banks and creditors, thereby expanding financial services for consumers in the Americas, Europe, and Australia [6] - The company has thousands of employees worldwide and collaborates with customers to assist them in resolving their debt [6] Leadership Background - Martin Sjolund has been with PRA Group since 2014, previously serving as Chief Operating Officer of Europe and Director of Group Strategy and Corporate Development [4][5] - Before joining PRA Group, Sjolund held leadership roles in global technology companies and worked as a management consultant with McKinsey & Company [5]