PRA Group and StepChange Unite Stakeholders in UK Parliament to Strengthen Financial Inclusion Accessibility StatementSkip NavigationCrosssector dialogue highlights practical ways to support people in financial difficultyNORFOLK, Va., March 25, 2026 /PRNewswire/ -- PRA Group, Inc.(Nasdaq: PRAA), a global leader in acquiring and collecting nonperforming loans, has once again partnered with StepChange Debt Charity, the United Kingdom's largest debt advice charity, to advance financial inclusion for consumers ...

When James Reinhardt’s phone started ringing over and over, he thought it was just a temporary annoyance — maybe a billing question or a stray spam call. Instead, the calls kept coming, day after day, each one a reminder that something had gone sideways with his plan to get ahead of his credit card balances. Like many Americans trying to take control of their finances, Reinhardt told CBS News Pittsburgh that he believed he had signed up for a debt consolidation program that would simplify his payments. W ...

MINNEAPOLIS, March 18, 2026 (GLOBE NEWSWIRE) -- Jefferson Capital, Inc. (NASDAQ: JCAP) (“Jefferson Capital”), a leading analytically driven purchaser and manager of charged-off, insolvency and active consumer accounts, today announced the appointment of Susan Atkins and James Pierce to its Board of Directors, effective March 18, 2026. Jefferson Capital also announced that Christopher Giles is stepping down from its Board of Directors, on which he has served since 2018 to focus on his other professional comm ...

Core Insights - The issue of zombie mortgages is gaining attention as public-interest attorneys file lawsuits against unlawful debt collection practices, particularly following the weakening of the Consumer Financial Protection Bureau (CFPB) under the Trump administration [1][4]. Group 1: Legislative and Regulatory Context - Nearly all states have statutes of limitations that prevent residential foreclosures after a certain period, which varies from a few years to over a decade [2]. - In Maryland, a proposed bill aimed to protect homeowners from unfair debt collection practices related to zombie loans, but faced significant opposition from lobbyists and ultimately stalled in the Senate [6][24]. - Virginia passed a law in 2024 requiring debt collectors to verify the accuracy of back interest owed before foreclosing on old second mortgages, which reportedly led to a halt in zombie foreclosures in the state [20]. Group 2: Industry Response and Challenges - The debt-collection industry argues that new consumer protections for zombie mortgages could disrupt the secondary mortgage market, claiming that abuses are rare [4][10]. - A trade group representing the debt-collection industry advocates for a single federal standard for regulation, arguing that the current state-by-state approach is inefficient and costly for consumers [11]. - Consumer advocates emphasize the need for stronger protections against debt collectors who exploit gaps in state laws, as evidenced by numerous lawsuits [12][19]. Group 3: Consumer Impact and Awareness - A Bloomberg investigation revealed that over 600,000 second mortgages from before the 2008 financial crisis remain outstanding, with debt collectors purchasing these for low prices and demanding payment from homeowners [3]. - Many consumers are unaware of the statutes of limitations on their debts, leading to confusion and potential financial distress when approached by debt collectors [2]. - The lack of federal enforcement of consumer protection laws leaves borrowers vulnerable to exploitation by debt collectors [12].

Statements in this presentation, other than statements of historical fact, are forward-looking statements, which are based on our current beliefs, projections, assumptions and expectations concerning future operations and financial performance. Such statements involve uncertainties and risks, some of which are not currently known to us, and may be superseded by future events that could cause actual results to differ materially from those expressed or implied in this presentation. You are cautioned not to pl ...

Core Viewpoint - Momentum investing focuses on "buying high and selling higher," contrasting with traditional strategies of "buying low and selling high" [1] Group 1: Momentum Investing Strategy - Momentum investing can be risky as stocks may lose momentum if future growth does not justify high valuations [1] - A safer approach is to invest in bargain stocks that exhibit recent price momentum, identified through the Zacks Momentum Style Score [2] Group 2: Encore Capital Group (ECPG) Analysis - Encore Capital Group (ECPG) has shown a price increase of 23.7% over the past four weeks, indicating growing investor interest [3] - ECPG has gained 29.1% over the past 12 weeks, demonstrating its ability to deliver positive returns over a longer timeframe [4] - The stock has a beta of 1.35, suggesting it moves 35% higher than the market in either direction, indicating fast-paced momentum [4] - ECPG has a Momentum Score of A, suggesting it is an opportune time to invest in the stock [5] - The stock has a Zacks Rank 1 (Strong Buy) due to upward revisions in earnings estimates, which attract more investors [6] - ECPG is trading at a Price-to-Sales ratio of 0.83, indicating it is reasonably valued at 83 cents for each dollar of sales [6] Group 3: Investment Opportunities - ECPG is highlighted as a strong candidate for investment, with potential for further price appreciation [7] - There are additional stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, suggesting more investment opportunities [7] - Zacks offers over 45 Premium Screens to help identify winning stock picks based on various investing styles [8]

Core Thesis - Jefferson Capital, Inc. (JCAP) is viewed negatively due to its underlying unit economics and capital-intensive business model, despite attractive headline metrics [1][8]. Company Overview - Jefferson Capital is a newly public company that specializes in purchasing charged-off consumer debt, with a majority ownership of 67% by J.C. Flowers [2]. - The company targets to buy defaulted loan portfolios at approximately 5–6% of their face value, aiming for a 2x gross recovery multiple through various collection methods [2]. Financial Metrics - JCAP's share price was $22.07 as of February 11th, with a trailing P/E ratio of 9.26 [1]. - The company has reported a levered free cash flow yield of around 20% and a year-over-year operating income growth of 39% [3]. Unit Economics - Mature vintages from 2017–2020 achieved about 2x gross recoveries and over 27% IRRs before operating costs, but cash operating expenses average around 40% of collections [4]. - After accounting for these costs, the implied unlevered returns drop to the high single digits [4]. Valuation Concerns - Even with a 60% after-tax recovery margin, modeled equity values are estimated between $300 million and $400 million, after deducting $1.3–1.4 billion in liabilities, indicating limited upside compared to current valuations [5]. - Although JCAP appears inexpensive relative to peers like Encore Capital and PRA Group, its capital-intensive model resembles a capital-recycling operation rather than a true compounding business [5]. Reinvestment and Governance - Nearly all excess cash flow must be reinvested to maintain portfolio size, as demonstrated by a $300 million loan book purchase in late 2025 [6]. - Sustainable through-cycle return on equity (ROE) is likely in the range of 12–13%, and governance is heavily influenced by its private equity sponsor, suggesting a valuation closer to book value rather than its current premium [6].

Financial Data and Key Metrics Changes - In 2025, the company purchased $1.2 billion of portfolios, marking the third highest investment year on record [8][21] - Cash collections reached a record $2.1 billion, up 13% year-over-year, driven by operational initiatives and strong performance in Europe [9][26] - Adjusted net income increased to $73 million in 2025, reflecting a 3% growth from the previous year [10][41] - Adjusted EBITDA for the last 12 months was up 16% to $1.3 billion, growing faster than cash collections [10][45] - The cash efficiency ratio improved to 61% from 59% the previous year [10][44] Business Line Data and Key Metrics Changes - U.S. legal cash collections grew 28% to $483 million in 2025, with a significant increase of approximately 83% since 2023 [27] - Portfolio income increased by 34% compared to 2023, contributing more to net income [31][32] - Legal accounted for 48% of U.S. core cash collections in 2025, up from 39% two years ago [29] Market Data and Key Metrics Changes - Estimated remaining collections (ERC) reached a record $8.6 billion, up 15% year-over-year, with the U.S. accounting for 42% and Europe for 51% [24] - The replenishment rate needed to maintain current ERC levels was $982 million [25] - U.S. credit card balances are at $1.1 trillion, with industry-wide charge-off rates above 4%, providing significant supply opportunities [25] Company Strategy and Development Direction - The company is evolving into a high-performing, technology-enabled global allocator of capital, focusing on disciplined investments and operational improvements [52][53] - Key strategic vectors include capital and investing, operations and technology, and people and culture [53][54] - The company aims to maintain a conservative balance sheet with ample liquidity and explore alternative funding mechanisms [56][57] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's strong position entering 2026, with good cash performance and key metrics trending positively [86] - The competitive landscape in Europe remains stable, with opportunities for capital deployment despite pricing pressures [90][92] - The company is focused on leveraging technology, including AI, to enhance operational efficiency and improve collection strategies [63][81] Other Important Information - The company repurchased $20 million of its stock in 2025, with approximately $50 million remaining under board authorization for future repurchases [19][50] - The net leverage ratio declined from 2.9x in 2024 to 2.7x at the end of 2025 [19][46] Q&A Session Summary Question: What are the top three initiatives to focus on? - Management highlighted capital discipline, cost flexibility, and technology modernization as key priorities [78][80] Question: Can you share details on new asset classes being considered? - Management refrained from specifics but indicated interest in adjacent asset classes with attractive return opportunities [82] Question: How should collections be viewed in 2026? - Management expects strong momentum from 2025 to carry into 2026, with cash collections growth anticipated to continue [86][88] Question: What is the competitive dynamic in Europe? - Management noted a stable and competitive market in Europe, with opportunities for capital deployment [90][92] Question: How much can the expense structure be pushed to variable? - Management indicated a mix of in-house and outsourced collections is optimal, balancing cost control and flexibility [114]

Financial Data and Key Metrics Changes - In 2025, the company purchased $1.2 billion of portfolios, marking the third highest investment year on record, and driving estimated remaining collections (ERC) to a record $8.6 billion, up 15% year-over-year [4][12] - Cash collections reached a new record of $2.1 billion, reflecting a 13% growth for the year, exceeding the high single-digit growth target [5][14] - Adjusted net income increased to $73 million in 2025, with adjusted EBITDA rising 16% to $1.3 billion, outpacing cash collections growth [5][25] Business Line Data and Key Metrics Changes - U.S. legal cash collections grew 28% to $483 million in 2025, significantly contributing to overall cash collections [14][16] - Portfolio income, a stable revenue component, grew 18% for the full year to $1 billion, a company record, and increased by 34% compared to 2023 [17][22] - Legal accounted for 48% of U.S. core cash collections in 2025, up from 39% two years ago, indicating a shift towards more legal collections [16] Market Data and Key Metrics Changes - The U.S. accounted for 42% of ERC, while Europe accounted for 51%, showcasing a well-diversified portfolio that mitigates risks from economic cycles [12] - The replenishment rate needed to maintain current ERC levels was $982 million, with U.S. credit card balances at $1.1 trillion and industry-wide charge-off rates above 4% [13] Company Strategy and Development Direction - The company is evolving into a technology-enabled global allocator of capital, focusing on disciplined investments, operational efficiency, and leveraging technology [29][30] - The strategy includes modernizing operations, enhancing data analytics, and utilizing AI to improve collection processes and customer engagement [34][35] - The company aims to maintain a conservative balance sheet with ample liquidity and explore alternative funding mechanisms [31][32] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in entering 2026 with strong momentum, driven by good cash performance and operational improvements [50] - The competitive landscape in Europe remains stable, with opportunities for capital deployment despite pricing pressures in certain markets [55][56] - The focus remains on improving cash collections while managing costs effectively, with expectations for adjusted EBITDA to continue growing [64][68] Other Important Information - The company repurchased $20 million of its stock in 2025, with an additional $50 million remaining under board authorization for future buybacks [27][61] - The net leverage ratio decreased from 2.9x in 2024 to 2.7x at the end of 2025, indicating a reduction in debt levels [10][25] Q&A Session Summary Question: What are the top three initiatives to focus on? - Management highlighted the importance of disciplined capital investment, creating cost flexibility, and leveraging technology, particularly AI, as key initiatives [42][45] Question: Can you share details on new asset classes being considered? - Management refrained from specifics but indicated interest in adjacent asset classes that align with their capabilities and operational strengths [46][47] Question: How should collections be viewed in 2026? - Management noted strong momentum entering 2026, with expectations for cash collections to grow, albeit at a slower rate than in 2025 [50][51] Question: What is the competitive dynamic in Europe? - Management described the European market as competitive but stable, with opportunities for capital deployment based on diversification [55][56] Question: What has driven recent improvements in collections? - Management attributed improvements to several years of initiatives, including investments in legal collections and digital channels, as well as the use of AI for data processing [57][59] Question: How far can the expense structure be made variable? - Management indicated a mixed approach, balancing in-house collections with external debt collection agencies to maintain flexibility and cost-effectiveness [70][72]

PRA Group Q4 and FY 2025 Conference Call Presentation Nasdaq: PRAA Forward-Looking Statements Statements in this presentation, other than statements of historical fact, are forward-looking statements, which are based on our current beliefs, projections, assumptions and expectations concerning future operations and financial performance. Such statements involve uncertainties and risks, some of which are not currently known to us, and may be superseded by future events that could cause actual results to diffe ...