Financial Data and Key Metrics Changes - The company purchased $347 million of portfolios during the quarter, with $199 million in The Americas and $147 million in Europe [25] - The year-to-date purchase price multiple for 2025 was 2.14 times for Americas Core and 1.82 times for Europe Core, reflecting an upward trend in purchase price multiples [25] - ERC grew to a record $8.3 billion at the end of Q2, up 22% year over year and 6% sequentially [26] - Cash collections for the quarter were $536 million, up 13% from the prior year period [27] - Net income attributable to PRA was $42 million or $1.08 in diluted earnings per share, including a $30 million after-tax gain from the sale of equity interest in Brazil [34] - Adjusted EBITDA grew 20% this quarter, reflecting strong cash collections growth and disciplined expense management [35] Business Line Data and Key Metrics Changes - Q2 US legal cash collections grew 24% year over year to $119 million, indicating strong performance in the legal channel [28] - Total portfolio revenue was $284 million for the quarter, up 1%, while portfolio income was $251 million, up 20% [29] - Operating expenses were $203 million, up 4% from the prior year, driven by increases in professional services and legal collection costs [30] Market Data and Key Metrics Changes - The overall buying environment in The US is described as elevated, with attractive opportunities to deploy capital [43] - The competitive dynamic in Europe is more rational compared to previous years, with fewer new entrants overpaying for portfolios [12] Company Strategy and Development Direction - The company is focused on three core strategic pillars: optimizing investments, operational execution, and managing expenses [14] - A restructuring of US operations is underway to create a more empowered operational team, aiming for improved accountability and faster decision-making [61] - The company plans to modernize its US technology platform, leveraging successful strategies from its European operations [20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to drive change and deliver value, citing a strong foundation built through decades of experience [10] - The company expects portfolio supply to remain elevated in The US and stable in Europe, with a focus on higher return opportunities [26] - Management acknowledged that financial performance is not yet where desired but is committed to implementing necessary changes [39] Other Important Information - The company has no debt obligations maturing until 2027, providing ample funding capacity and financial flexibility [36] - A stock repurchase of $10 million was executed during the quarter, with plans to evaluate further opportunities to enhance shareholder value [37] Q&A Session Summary Question: Can you provide insights on the US supply and opportunity? - Management noted that the buying environment in The US is elevated, with strong seller relationships and opportunities to expand into new asset classes [43][45] Question: How should we think about the legal channel's role in the collection mix? - The legal channel is important but not the primary approach; it is used when customers do not engage voluntarily, and its value is maximized through sophisticated analysis [48][49] Question: What drove the collections overperformance in Q2? - Overperformance was attributed to strong operational initiatives and a favorable consumer position in various markets [57] Question: Can you elaborate on the restructuring in the US? - The restructuring aims to create a more empowered operational team with accountability for cash performance and costs, measured on a single P&L [61][62] Question: What are the expectations for cost savings from restructuring? - Management indicated that while cost savings are a focus, immediate impacts on numbers are not expected, and the emphasis is on operational efficiency [75][76]