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February 2026 Investor Presentation A Global Leader in Acquiring and Collecting Nonperforming Loans
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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 Such statements involve uncertainties and risks, some of which are not currently known to us, and may be superseded by future events that could cause actual results to differ materially from those expressed or implied in this presentation. 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. Information regarding risks and other factors that could cause our actual results to differ materially from our expectations can be found in our most recent Annual Report on Form 10-K and in subsequent SEC filings and should be considered when evaluating the forward-looking statements in this presentation. Except as required by law, we assume no obligation to update or revise these statements to reflect changes in the events, conditions, or circumstances upon which any such forward-looking statements are based. Unless otherwise noted, our results for “other” markets include South America, Canada and Australia. 1 Nasdaq: PRAA Note: All information in this presentation is as of December 31, 2025, unless specified otherwise.
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Agenda Company Overview Financial Performance PRA 3.0 Strategy Appendix 2 Nasdaq: PRAA
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Nasdaq: PRAA ✓ 30 years in business, led by highly experienced management team ✓ A leading acquirer and collector of NPLs across 18 countries ✓ Key buyer in the U.S., the world’s largest unsecured NPL market ✓ Consistent growth overall in Europe with one of the most cost-efficient operations ✓ Globally diversified portfolio with 42% of ERC1 in the U.S. and 51% in Europe 2025 Cash Collections 13% YoY Growth $2.1B $8.6B ERC 15% YoY Growth $1.2B 2025 Portfolio Purchases 3rd Highest Level $1.3B LTM Adjusted EBITDA3 16% YoY Growth $73M 2025 Adjusted Net Income Attributable To PRA2 3% YoY Growth We Are a Global Leader in Acquiring and Collecting Nonperforming Loans (NPLs) Note: LTM refers to 12 months ended December 31, 2025. 1. Estimated remaining collections (ERC) refers to the sum of all future projected cash collections on our nonperforming loan (NPL) portfolio. 2. A reconciliation of Net income/(loss) attributable to PRA Group, Inc. to Adjusted net income/(loss) attributable to PRA can be found at the end of this presentation. 3. A reconciliation of Net income/(loss) attributable to PRA Group, Inc. to Adjusted EBITDA can be found at the end of this presentation. ($305M) 2025 Net (Loss) Attr. To PRA Group, Inc. (Incl. Q3 Goodwill Impairment Charge) 3
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Deep Expertise and Industry Experience to Drive Improved Results 4 LaTisha Tarrant General Counsel and Chief Human Resources Officer Rakesh Sehgal Chief Financial Officer Martin Sjolund President & Chief Executive Officer Owen James President, PRA Group Europe Nasdaq: PRAA Jan Husby Chief Information Officer Keith Warren Chief Risk and Compliance Officer Steve Macke Global Operations Officer Adrian Murphy Chief Data & Analytics Officer
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Serving a Core Part of the Consumer Credit Ecosystem We Specialize in Purchasing Portfolios at Attractive Returns & Collecting Efficiently 5 Nasdaq: PRAA Creditor extends credit to customers Consumers become delinquent If unresolved, account is charged off Account is managed internally or sold to 3rd parties PRA purchases a portfolio of charged-off accounts at a discount PRA works to resolve consumer debt • Includes banks and other types of consumer, retail and auto finance companies • Creditor’s lending behavior is affected • Consumer’s credit score is negatively impacted • Leverage deep seller relationships & proprietary data to identify the most attractive opportunities • Buy nonperforming credit cards, personal & auto loans from some of the largest credit issuers in the world • Determine customer’s ability/willingness to pay • Use sophisticated technology, data and analytics to identify collection strategies • Collect via call center (onshore & offshore), digital, legal and other channels • Consumer’s credit score can be enhanced • Creditor has three options: 1. In-house collections (short term) 2. Use a debt collection agency (for a commission) 3. Sell to a trusted debt buyer like PRA (recoup capital immediately)
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Our Global Perspective on the Markets Managing Complexity Across Distinct Global Environments 6 U.S. Market European Market Portfolio Supply • Complex and stringent regulatory environment o Federal Regulator: CFPB o U.S. Laws: FDCPA (Reg F), FCRA, GLBA, TCPA, etc. o State/Local: 50 Attorneys General (+ D.C.) & 3,000+ counties each with potentially separate set of guidelines and rules • Regulatory complexity and consumer behavior reflected in pricing • High number of disputes Regulatory Landscape and Consumer Behavior • Strong portfolio supply o $1.0+ trillion of credit card debt outstanding o Markets tend to be forward-flow driven, providing visibility o Many large U.S. banks do not sell NPLs – smaller number of sellers • Stable competitive landscape o Banks are highly selective of whom they sell to o Stringent regulatory environment o Success driven by long track record, extensive data, strong seller relationships, significant scale and compliance • Fragmented regulatory environment o Very different application of collections rules in different markets, especially around legal collections o Generally much less onerous than the U.S. • Regulators encourage banks to sell NPLs (EU Credit directive, EU Prudential Backstop) • Local customer behaviours reflected in portfolio pricing • Fragmented banking market o Leads to fragmented selling universe, with hundreds of sellers o Most major banks & consumer finance companies sell NPLs • Competitive market dynamics o Highly competitive, especially in markets where sellers are less selective about who they sell to o Market tends to be spot-driven but moving more toward forward flows
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$1,049 0% 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% $200 $400 $600 $800 $1,000 $1,200 $0 09 10 12 13 14 15 16 17 18 19 20 21 22 23 24 2511 U.S. Supply Remains Elevated Due to High Credit Card Balances & Charge-Off Rates 7 Nasdaq: PRAA 1. FRED, Consumer Loans: Credit Cards and Other Revolving Plans, All Commercial Banks. Data as of February 20, 2026. 2.Board of Governors of the Federal Reserve Board, Charge-Off and Delinquency Rates on Loans and Leases at Commercial Banks. Data as of February 24, 2026. U.S. Credit Card Balances1 and Charge-Off Rates2 $ in billions U.S. Credit Card Balances1 U.S. Credit Card Charge-Off Rates2 ✓ U.S. credit card balances up 25%+ since pre-pandemic (end of 2019) ✓ Charge-off rates remain high Key highlights
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Disciplined & Diversified Purchaser of NPLs With Long Track Record 8 Total Portfolio Purchases $ in millions • Experienced underwriting teams • Disciplined investment process with close involvement of investments, underwriting, and operations teams • Experienced investment committee using a global investment framework to optimize capital deployment decisions • Highly experienced and tenured Investments team • Deep seller relationships provide good access to NPL deals • Significant forward flow volume, particularly in the U.S. Diversified set of markets enables us to be selective in our investments Disciplined investment process and experienced underwriters Nasdaq: PRAA 2019 2020 2021 2022 2023 2024 2025 $1,289 $905 $972 $850 $1,154 $1,408 $1,209 Europe U.S. Other
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We Use Data & Analytics to Underwrite Portfolios and Determine the Most Efficient Collection Strategy 9 Nasdaq: PRAA Managed dynamically based on our understanding of our customers Underwriting Operational Analytics • Underwriting multi-year future collections and costs • Using advanced proprietary statistical valuation models and techniques (e.g., machine learning) • Leveraging years of proprietary reference data • Underwriters in global hubs enhancing access to talent and talent retention • Using a global investment framework to optimize the capital deployment decisions between geographies and asset type • Focused on portfolio returns to maximize value creation • Aiming to optimize customer engagement – tailoring collection efforts based on customers’ ability and willingness to pay • Accounts scored daily, utilizing dynamic data & analytics that inform the collection strategy • Call Center – onshore and offshore call centers • Legal – internal and external attorneys; suit, server and judgment, post-judgment enforcement • Digital • Debt collection agencies (DCAs) • Other strategies
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COVID Vintages2 150% 200% 250% 16 17 18 19 20 21 22 23 24 25 Over Time We Generally Collect More Than We Underwrite, Leading to PPM1 Expansion 10 Nasdaq: PRAA U.S. Core PPMs1 Europe Core PPMs1 1. Purchase price multiples (PPMs) are calculated by dividing the total expected collections of a vintage by the purchase price. Original PPMs are set at the time of purchase and never change. The X-axis of the charts outlines the original and current PPM for each specific vintage. 2. COVID vintages refer to the 2021, 2022, and 2023 U.S. Core vintages. ✓ Track record of cash overperformance has driven expansion of multiples ✓ U.S. Core original PPMs on newer vintages now exceed pre- pandemic levels ✓ PPMs are on a gross basis – they do not factor in the cost-to- collect ✓ We aim to generate consistent net returns regardless of where we invest Key Highlights Original PPM Current PPM 100% 150% 200% 250% 16 17 18 19 20 21 22 23 24 25 Vintages Vintages
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PRA Europe A Decade of Consistent Deployment, Cash Generation and Operational Focus 11 Nasdaq: PRAA 1. Excludes business acquisitions. PRA Europe Investments1 $351 $405 $429 $472 $519 $579 $708 $654 $664 $721 $812 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 CAGR: +9% PRA Europe Cash Collections $450 $371 $288 $361 $589 $408 $477 $407 $444 $508 $519 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Key Europe Highlights ✓ Experienced and stable management (investment committee average tenure of ~12 years) ✓ Successfully invested $3B+ over last seven years with a good spread across our 9 core markets, reflecting discipline during periods of irrational competitive activity ✓ Limited M&A ✓ Growing Europe ERC now represents 50%+ of global ERC ✓ Long track record of strong cash performance against our expectations ✓ One of the most cost-efficient platforms in Europe ✓ Transformed European IT infrastructure • One common cloud platform and cloud-based contact platform $ in millions
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Europe’s Transformation Under Martin’s Leadership 12 Nasdaq: PRAA Now • Focus on talent, technology, digital, and data & analytics • One standard, cloud-based omni-channel contact platform • Competitive digital capabilities • Careful capital allocation underpinned by strong underwriting • Solid operational execution with a strong focus on cost management • High-performing team with a strong performance management culture Pre-2018 • Low-cost, front-line mass dialing • Multiple contact platforms across various markets • No customer chat or text, limited email capability • Challenging European market structure
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Agenda Company Overview Financial Performance PRA 3.0 Strategy Appendix 13 Nasdaq: PRAA
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$433 $315 Q4 24 Q4 25 Net Income/(Loss) Attributable to PRA, Adjusted Net Income/(Loss) Attributable to PRA2 $1,154 $1,408 $1,209 FY 23 FY 24 FY 25 $1,660 $1,869 $2,108 FY 23 FY 24 FY 25 +13% $468 $532 Q4 24 Q4 25 +14% Q4 and FY 2025 Highlights Key Metrics Improving, with Adjusted Net Income Attributable to PRA of $73 Million 14 Nasdaq: PRAA Cash Collections & Adjusted Cash Efficiency Ratio1Portfolio Purchases Adjusted EBITDA3 and Net Leverage4 $ in millions $1,138 $1,184 $1,240 $1,265 $1,315 2.83x 2.82x 2.81x 2.77x 2.73x Q4 24 Q1 25 Q2 25 Q3 25 Q4 25 +16% $18 $57 Q4 24 Q4 25 0 0 0 1. Adjusted cash efficiency ratio is calculated by dividing cash receipts less Adjusted operating expenses by cash receipts. A reconciliation of Total operating expenses to Adjusted operating expenses can be found at the end of this presentation. 2 A reconciliation of Net income/(loss) attributable to PRA Group, Inc. to Adjusted net income/(loss) attributable to PRA can be found at the end of this presentation. 3. A reconciliation of Net income/(loss) attributable to PRA Group, Inc. to Adjusted EBITDA can be found at the end of this presentation. 4 A reconciliation of Borrowings to net leverage can be found at the end of this presentation. 0 0 0 61% 59% ($83) $71 ($83) $71 $73 FY 23 FY 24 FY 25 ($305) +3% 58% Net Income/(Loss) Attributable to PRA Adjusted Net Income/(Loss) Attributable to PRA 3rd Highest Annual Purchases Level in Company History Double-Digit Collections Growth w/ 60%+ Adjusted Cash Efficiency Adjusted Net Income Attributable to PRA Trending in the Right Direction Adjusted EBITDA Growth Greater Than Cash Collections Growth, with Declining Net Leverage Adjusted EBITDA Net Leverage Adjusted EBITDA3 and Net Leverage4
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2023 2024 2025 $1,154 $1,408 $1,209 Purchase Price Multiples Continued to Improve As We Remain Focused on Driving Higher Returns 15 Nasdaq: PRAA 1. Original PPMs are calculated by dividing the total expected collections of a vintage by the purchase price. 2. Estimated remaining collections (ERC) refers to the sum of all future projected cash collections on our nonperforming loan (NPL) portfolio. Core PPMs1 and Portfolio Purchases Estimated Remaining Collections (ERC)2 U.S. Europe Other 1.91x 2.11x 2.16x 1.69x 1.80x 1.85x X Core PPM $4,386 $ in millions $564 • $1.2 billion of portfolio purchases in 2025 represents 3rd highest annual amount in Company history • PPMs can vary due to multiple factors (geography/product mix, cost-to-collect, age of portfolios, etc.) – we utilize our global investment framework to solve for similar returns after collection costs & funding costs • $8.6 billion of ERC, up 15% year-over-year, is well-diversified across multiple markets • $982 million of purchases required in the next 12 months to hold ERC constant (“replenishment rate”) $3,658 Europe U.S. 2023 2024 2025 $8,609 $7,461 $6,399 +15%
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Total Cash Collections Strong Cash Generation Supported by Continued Growth in U.S. Legal Collections Channel 16 Nasdaq: PRAA $ in millions $781 $664 $216 2023 $927 $721 $220 2024 $1,085 $812 $211 2025 $1,660 $1,869 $2,108 +17% +13% +13% U.S. Europe Other • Total cash collections up 13% year-over-year • Q4 2025 performance against expectations: 7% total, 5% U.S., 10% Europe • U.S. COVID vintages collectively performed in line with expectations • Customer profile remains stable across U.S. and Europe U.S. Legal Collections Channel • U.S. legal cash collections up $107M (28%) year-over-year, resulting from increased investments in the legal channel • U.S. legal cash collections comprised 48% of U.S. Core cash collections in 2025, up from 39% in 2023 2023 2024 2025 $264 $63 $376 $89 $483 $125 +28% U.S. Legal Cash Collections U.S. Legal Collection Costs
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Portfolio Revenue1 Changes in Expected Recoveries Growing Portfolio Income with Cash Overperformance Representing Majority of Changes in Expected Recoveries 17 Nasdaq: PRAA $ in millions $29 $757 2023 $241 $857 2024 $176 $1,013 2025 $786 $1,098 $1,190 +18% • Portfolio Income grew 18% (greater than cash collections growth) vs. 2024 and grew 34% vs. 2023 • Growing Portfolio Income results in more stable and predictable revenue 1. Portfolio Revenue = Portfolio Income + Changes in Expected Recoveries (Recoveries Collected in Excess of Forecast + Changes in Expected Future Recoveries) Portfolio Income Changes in Expected Recoveries 2023 2024 2025 $65 ($36) $156 $85 $121 $56 Recoveries Collected in Excess of Forecast (Cash Overperformance) Changes in Expected Future Recoveries (Write-Ups/Downs) • Cash Overperformance represents the majority (68%) of Changes in Expected Recoveries in 2025
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5 Consecutive Years of Cash Overperformance Suggest That Portfolio Income Contribution Can Increase 18 Nasdaq: PRAA Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2021 2022 2023 2024 2025 Actual Cash Collections Estimated Cash Collections Actual Cash Collections vs. Estimated Cash Collections Factors Driving Higher Portfolio Income: • Higher PPMs, as we become more selective in our buying and more effective in our collection capabilities • Improved cash collections performance through operational initiatives, such as legal and digital • Increases in ERC, when appropriate, based on analysis of actual performance trends
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Adjusted Net Income Attributable to PRA Increased 3% Year-over-Year 19 $ in millions Nasdaq: PRAA 2023 2024 2025 $803 $1,115 $1,202 +8% $702 $775 $1,232 $702 $775 $819 2023 2024 2025 +6% ($83) $71 $73 -11.3% 9.5% 8.5% 2023 2024 2025 +3% 1. A reconciliation of Total operating expenses to Adjusted operating expenses can be found at the end of this presentation. 2. A reconciliation of Net income/(loss) attributable to PRA Group, Inc. to Adjusted net income/(loss) attributable to PRA can be found at the end of this presentation. 3. A reconciliation of Total stockholders' equity - PRA Group, Inc. to average tangible equity can be found at the end of this presentation. • Revenue growth driven primarily by stable and predictable portfolio income Operating Expenses Adjusted Operating Expenses • $45M (6%) increase in adjusted operating expenses driven by increased legal collection costs and fees to support future collections growth Total Revenue Operating Expenses and Adjusted Operating Expenses1 Non-cash goodwill impairment charge Adjusted Net Income/(Loss) Attributable to PRA2 & Adjusted ROATE3 $413 • Revenue grew faster than adjusted operating expenses, resulting in a higher adjusted net income attributable to PRA in 2025 vs. 2024 Adjusted Net Income/(Loss) Attributable to PRA Adjusted ROATE
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Continued Adjusted EBITDA Growth Supporting Decreasing Net Leverage $ in millions 20 Nasdaq: PRAA 1. A reconciliation of Net income/(loss) attributable to PRA Group, Inc. to Adjusted EBITDA can be found at the end of this presentation. 2. A reconciliation of Borrowings to net leverage can be found at the end of this presentation. 2023 2024 2025 LTM Adjusted EBITDA Net Leverage $1,015 $993 $998 $1,007 $1,044 $1,065 $1,100 $1,138 $1,184 $1,240 $1,265 $1,315 2.78x 2.65x 2.73x 2.78x 2.73x 2.81x 2.87x 2.83x 2.82x 2.81x 2.77x 2.73x 3/31 6/30 9/30 12/31 3/31 6/30 9/30 12/31 3/31 6/30 9/30 12/31 +16% • Net leverage continued to decline from peak of 2.87x in Q3 2024, due to strong adjusted EBITDA growth and disciplined purchasing • Borrowings remained stable over past three quarters Borrowings, LTM Adjusted EBITDA1, and Net Leverage2 Borrowings $2,938 $2,740 $2,832 $2,914 $2,953 $3,114 $3,296 $3,327 $3,466 $3,614 $3,607 $3,697
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Diversified and Strong Capital Structure Ample Liquidity with No Maturities in 2026; $20M of Shares Repurchased in 2025 $ in millions 21 Nasdaq: PRAA • $1.1 billion available under credit facilities as of December 31, 2025 • $825 million available based on current ERC • $274 million of additional availability subject to borrowing base and debt covenants, including advance rates • Repurchased $10M of shares in Q4; $20M in 2025 Debt Maturity Profile1 $577 $398 $550 $352 2026 2027 2028 2029 2030 2031 2032 $0 $1,831 UK RCF NA RCF NA Term Loan Europe RCF Senior Unsecured Notes $0Nov 1. Excludes Colombian revolving credit facility with outstanding borrowings of $2.6 million as of December 31, 2025
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Agenda Company Overview Financial Performance PRA 3.0 Strategy Appendix 22 Nasdaq: PRAA
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We Have Come a Long Way in the Last Three Years 2025 Was Another Year of Significant Improvement, But More Work to Be Done 23 Nasdaq: PRAA Increased Portfolio Returns2 2023 2024 • U.S. Core PPM: 1.91x • Europe Core PPM: 1.69x • U.S. Core PPM: 2.11x • Europe Core PPM: 1.80x Improved Capabilities Reduced Costs & More Scalable Model Strengthened Balance Sheet & Capital Allocation • Revamped legal processes • New call center & digital strategies • Reduced legal collection timelines • Digital strategy: transition to email/text • New contact platform in all EU core markets • U.S. & EU cost-saving initiatives • Launched U.S. call center offshoring • Launched second offshore call center and ramped up offshoring activity • Raised $400M of 2028 notes • Amended/extended NA & UK RCFs • Raised $550M of 2030 notes 2025 Adjusted Net Income/(Loss) Attributable to PRA1 ($83M) $71M $73M • U.S. Core PPM: 2.16x • Europe Core PPM: 1.85x • Cash collections up 13% YoY • U.S. recent vintages collectively on track • Strong track record of EU performance • U.S. overhead reduction: $20M annualized gross savings ($17M net) • U.S. offshore headcount: ~32% • Reduced U.S. onshore headcount by 350+ • Net leverage declined YoY to 2.7x • Raised €300M of 2032 notes; issued to diversify • Repurchased $20M of shares 1. A reconciliation of Net income/(loss) attributable to PRA Group, Inc. to Adjusted net income/(loss) attributable to PRA can be found at the end of this presentation. 2. Original purchase price multiples (PPMs) are calculated by dividing the total expected collections of a vintage by the purchase price.
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PRA 3.0: A High-Performing, Technology-Enabled Global Allocator of Capital 24 Establish a Winning Culture – embed high-performance ownership mindset Invest with Discipline – allocate capital to highest-return opportunities Modernize the Engine – become leaner, more flexible, tech- driven Capital & Investing 1 Operations, Tech & Data 2 People & Culture 3
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Disciplined global NPL investor Invest with Discipline Allocate Capital to Highest-Return Opportunities 25 Nasdaq: PRAA • Leverage our global scale and geographic diversification across 18 countries • Global investment framework flexibility to patiently allocate capital to where returns are best • Prioritize long-term returns over “growth for growth’s sake” • Test into new product opportunities Strong financial profile through the cycle Strong diversified funding Prudent capital allocation strategy • Drive more predictable net income • Focus on growing cash flow • Create flexible cost profile through the credit cycle • Reduce leverage to mid 2x • Multiple sources of capital available • Maintain ample liquidity with longstanding bank relationships • Staggered maturities (none in 2026) that reflect our long-term cash curves • Pilot alternatives to further diversify funding • Prioritize investments in core business • Evaluate opportunistic share repurchases (~$50M of Board authorization in place) • Ensure all markets and segments are contributing to return targets
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Transform operations 26 Nasdaq: PRAA • Balance internal platform with flexible external capabilities • Continue optimizing operating model (e.g., onshore/offshore) • Use automation and scale (e.g., legal channel) • Digital innovation: mobile app, rich communication services (RCS) Fully leverage technology Enhanced data & analytics Disciplined cost management • Leverage technology standardization to drive scale benefits • Modernize U.S. Core system & data architecture • Invest in talent & capabilities, leveraging talent hubs (e.g., Charlotte, London) • Customer-centric model leveraging customer insights & data • Leverage AI across massive proprietary data-sets and processes • Zero-based cost mindset • Shift towards more variable cost structure: external legal, offshoring, and debt collection agencies globally Modernize the Engine Become Leaner, More Flexible, Tech-Driven
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Invest in Talent 27 Nasdaq: PRAA • Talent hubs in locations with strong talent pools • Return to office to foster collaboration, culture and teamwork • Engagement/culture plan Performance Culture Aligned Incentives Strong Governance & Values • Enhance high- performance framework: clear objectives and key-result metrics (“OKRs”) • Encourage entrepreneurial mindset • Continue to align incentives with shareholder interests • Strategic initiatives that focus on the execution of the PRA 3.0 strategy • Long-term incentives that make top managers into shareholders • Continued strong compliance culture • Maintaining effective global board with a range of relevant backgrounds • Good corporate citizen: continue to engage and contribute to the communities where we operate Establish a Winning Culture Embed High-Performance Ownership Mindset
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Bringing Together The Three Vectors of PRA 3.0 to Drive Improved Financial Results 28 Nasdaq: PRAA $1.2 23 $1.4 24 $1.2 25 • $1.0 billion to $1.3 billion, depending on market conditions Disciplined Investments $1.0 23 $1.1 24 $1.3 25 • Adjusted EBITDA growth exceeding cash collections growth Growing Adjusted EBITDA1 2.78x 2.83x 2.73x 23 24 25 • Trending down towards the mid- 2x area Declining Net Leverage2 $71 $73 -$83 23 24 25 • Grow annualized adjusted net income attributable to PRA3 Higher Returns Note: Future estimates are intended to provide visibility into the forecasted direction of results rather than representing forecasted figures. Assumptions to the estimates include the macroeconomic and regulatory environment remaining stable, the portfolio supply market remaining rational, and interest rates and foreign exchange changes developing as per current swap outlook. 1. A reconciliation of Net income/(loss) attributable to PRA Group, Inc. to Adjusted EBITDA can be found at the end of this presentation. 2. A reconciliation of Borrowings to net leverage can be found at the end of this presentation. 3. A reconciliation of Net income/(loss) attributable to PRA Group, Inc. to Adjusted net income/(loss) attributable to PRA can be found at the end of this presentation. $ in billions $ in billions $ in millions Target range over next 2-3 years
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Agenda Company Overview Investment Thesis Financial Performance Appendix 29 Nasdaq: PRAA
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Understanding PRA Group Financials Total Portfolio Revenue Portfolio Income Effective interest rate x Finance receivables, net Changes in Expected Recoveries In period cash over/ underperformance Net present value (NPV) of changes in expected future recoveries Total Portfolio Revenue has two components: • Portfolio Income is the yield component • Changes in Expected Recoveries is current period over/underperformance + NPV of ERC changes 30 Nasdaq: PRAA
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The Basis of Portfolio Income If Cash is Collected as Expected in Original Underwriting Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Total Cash Collections 376 478 374 289 224 173 117 82 55 32 2,200 Effective Interest Rate 28.8% 28.8% 28.8% 28.8% 28.8% 28.8% 28.8% 28.8% 28.8% 28.8% Portfolio Income (Finance Receivables, net x Effective Interest Rate) 288 263 201 151 111 78 51 32 18 7 1,200 Beginning Finance Receivables, net 1,000 912 697 524 386 273 178 112 62 25 -(Expected Cash Collections - Portfolio Income = Purchase Price) 88 215 173 138 113 95 66 50 37 25 1,000 Ending Balance Finance Receivables, net 912 697 524 386 273 178 112 62 25 - 1. Purchase of Portfolio • Purchase Price of $1,000 with Total Estimated Collections of $2,200 = Purchase Price Multiple of 2.20x • Effective Interest Rate (EIR) = 28.8% (Gross IRR of purchase price and projected cash collections) • Finance Receivables, net on the balance sheet reflects the purchase price = $1,000 Example of Estimated Cash Collections and Effective Interest Rate Calculation 2. Accounting treatment if cash is collected as expected • Portfolio Income for each year is calculated as effective interest rate (28.8%) multiplied by the Finance Receivables, net balance • Expected cash collections minus portfolio income reduces the Finance Receivables, net balance, effectively amortizing the purchase price* Purchase Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Total Expected Cash Collections (1,000) 376 478 374 289 224 173 117 82 55 32 2,200 Effective Interest Rate Expected Based on Cash Flows 28.8% *This is reflected in our statement of cash flows as “Recoveries collected and applied to Finance receivables, net.”31 Nasdaq: PRAA
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What Happens When Cash IS NOT Collected As Expected There is Always Some Level of Changes in Expected Recoveries Note: Once the yield is set it will never change. Write-ups or write-downs will change Finance receivables, net. Collecting More Cash Than Expected (Overperformance) Collecting Less Cash Than Expected (Underperformance) • Cash in excess of expectations is recognized as an increase to revenue through changes in expected recoveries • If we expect the same total expected cash over the life of the curve, this overperformance is a timing difference where collections are realized earlier in the life of the curve (acceleration): • A reduction in projected cash flows resulting in a negative NPV adjustment in the current period • This NPV adjustment will not fully offset the increase in current period revenue because of time value of money • If we expect higher total expected cash over the life of the curve (betterment): • An increase in future cash flows (write-up) • Any change to future cash flows results in a current period impact equal to the NPV of the change in ERC • Cash lower than expectations is recognized as a reduction to revenue through changes in expected recoveries • If we expect the same total expected cash over the life of the curve, this underperformance is a timing difference where collections are expected to be realized later in the life of the curve (delay): • An increase in projected cash flows resulting in a positive NPV adjustment in the current period • This NPV adjustment will not fully offset the decrease in current period revenue because of time value of money • If we expect lower total expected cash over the life of the curve (impairment): • A reduction in future cash flows (write-down) • Any change to future cash flows results in a current period impact equal to the NPV of the change in ERC 32 Nasdaq: PRAA
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How Cash Overperformance Can Lead to Same Lifetime Collections as Portfolio With No Overperformance 33 Nasdaq: PRAA $2,400 $2,000 $400 $0 No Overperformance 20% Overperformance $2,400 $2,400 Portfolio Income Changes in Expected Recoveries Total Cash Collected Over the Entire Collections Curve Per $1,000 Invested Original PPM Final PPM 2.4x 2.4x Original PPM Final PPM 2.0x 2.4x
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Non-GAAP Financial Measures 34 Nasdaq: PRAA The Company reports its financial results in accordance with U.S. generally accepted accounting principles (GAAP). However, management uses certain non-GAAP financial measures, including the non-GAAP financial measures referred to below, internally to evaluate the Company’s performance and to set performance goals. This presentation includes certain non-GAAP financial measures that exclude the impact of certain items and are not required by, or presented in accordance with, GAAP. Also included are reconciliations of the most directly comparable financial measures calculated in accordance with GAAP to the corresponding non-GAAP financial measure. The non-GAAP financial measures included should not be considered as an alternative to the most directly comparable financial measure determined in accordance with GAAP. The calculation of the non-GAAP financial measures included may not be comparable to the calculation of similarly titled financial measures reported by other companies. The Company presents Adjusted EBITDA because the Company considers it an important supplemental measure of its operational and financial performance. Adjusted EBITDA is calculated as net income (or loss) attributable to PRA Group, Inc. plus income tax expense (or less income tax benefit); plus foreign exchange loss (or less foreign exchange gain); plus interest expense, net and other; plus depreciation and amortization; plus impairment of real estate; plus goodwill impairment; plus net income attributable to noncontrolling interests; less gain on sale of equity method investment; and plus recoveries collected and applied to Finance receivables, net less Changes in expected recoveries. Management believes Adjusted EBITDA helps provide enhanced period-to-period comparability of the Company’s operational and financial performance as it excludes certain items whose fluctuations from period-to-period do not necessarily correspond to changes in the operations of the Company’s business and is useful to investors as other companies in the industry report similar financial measures. The Company uses an adjusted cash efficiency ratio to monitor and evaluate operating expenses, excluding goodwill impairment ("Adjusted operating expenses"), relative to cash collections plus fees and revenue recognized from our class action claims recovery services. Management believes the adjusted cash efficiency ratio is a useful financial measure for investors in evaluating the Company's management of operating expenses because it excludes the impact of certain transactions that are either unusual or infrequent in nature, or both. The adjusted cash efficiency ratio is calculated by dividing cash receipts less Adjusted operating expenses by cash receipts. We use Net income/(loss) attributable to PRA Group, Inc. and Diluted earnings per share excluding the impact of certain transactions that are unusual or infrequent in nature and not reflective of our ongoing operations (“Adjusted net income/(loss) attributable to PRA” and “Adjusted diluted earnings per share”, respectively) to monitor and evaluate our operating performance and allow for better comparability. Management believes Adjusted net income/(loss) attributable to PRA and Adjusted diluted earnings per share are useful financial measure for investors in evaluating our operating results. In addition, the Company uses return on average tangible equity ("ROATE"), to monitor and evaluate operating performance relative to the Company's equity. Management believes ROATE is a useful financial measure for investors in evaluating the effective use of equity, and is an important component of its long-term shareholder return. Average tangible equity is defined as average Total stockholders' equity - PRA Group, Inc. less average goodwill and average other intangible assets. ROATE is calculated by dividing Net income/(loss) attributable to PRA Group, Inc. by average tangible equity. ROATE may include certain items that are not indicative of the ongoing operating results of the Company's business. Accordingly, the Company also uses Adjusted ROATE to monitor and evaluate operating performance relative to the Company's equity. Management believes that Adjusted ROATE is a useful financial measure for investors because it is based on Adjusted net income/(loss) attributable to PRA. Adjusted ROATE is calculated by dividing Adjusted net income/(loss) attributable to PRA by average tangible equity.
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3/31 6/30 9/30 12/31 3/31 6/30 9/30 12/31 3/31 6/30 9/30 12/31 Net income/(loss) attributable to PRA Group, Inc. 19$ (22)$ (59)$ (83)$ (21)$ 4$ 43$ 71$ 71$ 92$ (343)$ (305)$ (+) Income tax expense/(benefit) 14 1 (8) (16) 5 12 10 21 23 30 55 47 (+) Foreign exchange loss (gain) (2) (1) (1) — (1) — 1 — — — — (1) (+) Interest expense, net and other 138 150 168 183 198 209 221 230 239 246 248 252 (+) Depreciation and amortization 15 15 14 13 13 12 11 11 11 11 10 9 (+) Impairment of real estate — — 5 5 5 5 — — 1 1 1 1 (+) Goodwill impairment — — — — — — — — — — 413 413 (+) Net income attributable to noncontrolling interests 11 13 15 17 20 19 17 18 15 15 17 15 (-) Gain on sale of equity method investment — — — — — — — — — (38) (38) (38) (+) Recoveries collected and applied to Finance receivables, net less Changes in expected recoveries 820 837 864 888 825 804 797 787 824 885 903 923 LTM Adjusted EBITDA 1,015$ 993$ 998$ 1,007$ 1,044$ 1,065$ 1,100$ 1,138$ 1,184$ 1,240$ 1,265$ 1,315$ Borrowings 2,938$ 2,740$ 2,832$ 2,914$ 2,953$ 3,114$ 3,296$ 3,327$ 3,466$ 3,614$ 3,607$ 3,697$ Cash and cash equivalents 116 111 105 113 108 119 141 106 129 132 107 104 Net debt 2,822 2,629 2,727 2,801 2,845 2,995 3,155 3,221 3,337 3,483 3,500 3,593 Net leverage 2.78x 2.65x 2.73x 2.78x 2.73x 2.81x 2.87x 2.83x 2.82x 2.81x 2.77x 2.73x LTM Ended 2023 2024 2025 Reconciliation of Net Income/(Loss) to Adjusted EBITDA and Calculation of Net Leverage 35 Nasdaq: PRAA Non-GAAP Financial Measures Set forth below is a reconciliation of net income/(loss) attributable to PRA Group, Inc. to Adjusted EBITDA for the last twelve months (LTM) as of March 31, 2023 through the LTM as of December 31, 2025. The Company evaluates its business using certain ratios that use Adjusted EBITDA. Net leverage is calculated by dividing Borrowings less Cash and cash equivalents by Adjusted EBITDA. The following table also reflects the Company’s net leverage for the LTM as of March 31, 2023 through the LTM as of December 31, 2025. $ in millions Note: amounts may not add up due to rounding
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Reconciliation of Total Operating Expenses to Adjusted Operating Expenses and Calculation of Adjusted Cash Efficiency Ratio 36 Nasdaq: PRAA Non-GAAP Financial Measures The following table provides a reconciliation of Total operating expenses to Adjusted operating expenses and presents the Company's Adjusted cash efficiency ratios for the periods indicated (in thousands, except for ratio data) 2023 2024 2025 Cash collections 1,660,450$ 1,868,576$ 2,107,626$ Fee income 10,384 10,023 9,996 Cash receipts (A) 1,670,834$ 1,878,599$ 2,117,622$ Total operating expenses 702,062 774,792 1,232,110 Less: Goodwill impairment — — 412,611 Adjusted operating expenses (B) 702,062$ 774,792$ 819,499$ Adjusted cash efficiency ratio (A - B) / A 58.0% 58.8% 61.3%
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Reconciliation of Total Stockholders’ Equity – PRA Group, Inc. to Average Tangible Equity and Reconciliation of Net Income/(Loss) Attributable to PRA Group, Inc. to Adjusted Net Income/(Loss) Attributable to PRA 37 Nasdaq: PRAA Non-GAAP Financial Measures The following table provides a reconciliation of Total stockholders' equity - PRA Group, Inc. to average tangible equity and a reconciliation of Net income/(loss) attributable to PRA Group, Inc. to Adjusted net income/(loss) attributable to PRA, and provides the Company's ROATE and Adjusted ROATE for the periods indicated (in thousands, except for ratio data): 1. Amounts represent the average balances for the respective years. 2 Amounts not adjusted for Gain on sale of equity method investment in 2025 due to the de minimis effect. 3. Non-recurring and non-operating gain that does not reflect future operating results and may not be meaningful when comparing our operating performance to other periods. 4. Non-recurring and non-cash charge that does not reflect future operating expenses and may not be meaningful when comparing our operating performance to other periods. 5. Based on the annual effective tax rate and pretax income excluding the effect of the adjusting items.
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U.S. Portfolio Acquisitions by Major Asset Type & Delinquency Category 38 Nasdaq: PRAA $ in thousands Major Asset Type Q1 % Q2 % Q3 % Q4 % Major Credit Cards 73,486 46% 99,192 54% 74,171 55% 32,323 29% Private Label Credit Cards 79,366 49% 73,235 40% 54,050 40% 70,685 63% Consumer Finance 6,917 4% 5,054 3% 5,033 4% 5,537 5% Auto Related 1,193 1% 4,845 3% 1,227 1% 3,797 3% Total U.S. Portfolio Purchases 160,962$ 100% 182,326$ 100% 134,481 100% 112,342 100% Delinquency Category Q1 % Q2 % Q3 % Q4 % Fresh1 106,254 66% 97,163 53% 69,368 52% 59,494 53% Primary2 2,567 2% 2,944 2% 6,892 5% 5,471 5% Secondary3 40,082 25% 60,086 33% 43,412 32% 36,092 32% Other4 - 0% - 0% - 0% 1,197 1% Total Core 148,903 93% 160,192 88% 119,672 89% 102,254 91% Insolvency 12,059 7% 22,134 12% 14,809 11% 10,088 9% Total U.S. Portfolio Purchases 160,962$ 100% 182,326$ 100% 134,481$ 100% 112,342$ 100% 2025 2025 Note: Amounts may not add up due to rounding. 1. Fresh accounts are typically past due 120 to 270 days, charged-off by the credit originator and sold prior to any post-charge-off collection activity. 2. Primary accounts are typically 240 to 450 days past due, charged-off and have been previously placed with one contingent fee servicer. 3. Secondary accounts are typically 360 to 630 days past due, charged-off and have been previously placed with two contingent fee servicers. 4. Other accounts are 480 days or more past due, charged-off and have previously been worked by three or more contingent fee servicers.
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I R . P R A G R O U P . C O M Najim Mostamand, CFA VP, Investor Relations (757) 431-7913 IR@pragroup.com