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 ...

Core Viewpoint - PRA Group, Inc. (PRAA) is well-positioned for growth in debt collection, having expanded its services to include government work and audit services, despite a recent decline in stock value that is less severe than the industry average [1][2]. Company Overview - PRA Group has a market capitalization of $708.8 million and operates globally, acquiring and collecting non-performing loans and debt, with a growing presence in the Americas, Europe, and Australia [2]. - The company currently holds a Zacks Rank 2 (Buy), indicating solid prospects for future performance [2]. Financial Estimates - The Zacks Consensus Estimate for PRA Group's 2025 earnings is $2.26 per share, reflecting a 26.3% year-over-year increase, with three upward estimate revisions in the past two months [3]. - Revenue estimates for 2025 are projected at $1.17 billion, indicating a 5.2% year-over-year rise [3]. Growth Drivers - PRA Group achieved a record portfolio purchase of $1.4 billion in the fourth quarter of 2024, marking a 22% year-over-year increase, and anticipates further growth in 2025 [4]. - The company reported $1.9 billion in cash collections for 2024, representing a 13% year-over-year growth, with 89% of cash collections coming from portfolios purchased before 2024 [5]. Financial Performance - The cash efficiency ratio improved to 59% in 2024 from 58% in 2023, with total revenues of $293 million for Q4 2024 and $1.1 billion for the full year, reflecting increases of 32% and 39% respectively [6]. - In Q4 2024, net income attributable to PRAA was 47 cents per share, exceeding the Zacks Consensus Estimate by 4.4%, and the company has consistently beaten earnings estimates over the past four quarters, with an average surprise of 297.1% [6].

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]