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PRA Group Q2 2026 Conference Call Presentation Nasdaq : PRAA PRA Group
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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 Such statements involve uncertainties and risks, some of which are not currently known to us, and may be superseded by future events that could cause actual results to differ materially from those expressed or implied in this presentation.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 All information is as of June 30, 2026, unless specified otherwise.
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$42 $58 Q2 25 Q2 26 +$16M Higher Earnings Driven by Increase in Europe ERC Following Portfolio Review and Strong Long-Term Performance $347 $297 Q2 25 Q2 26 Net Income Attributable to PRA Group Q2 2026 Highlights: Continued Execution Against PRA 3.0 2 Nasdaq: PRAA Cash Collections & Cash Efficiency Ratio1 Portfolio Purchases Adjusted EBITDA3 and Net Leverage4 $ in millions $1,240 $1,265 $1,315 $1,349 $1,359 2.81x 2.77x 2.73x 2.71x 2.67x Q2 25 Q3 25 Q4 25 Q1 26 Q2 26 1. Cash efficiency ratio is calculated by dividing cash receipts less operating expenses by cash receipts. 2 A reconciliation of Net income/(loss) attributable to PRA Group, Inc. to Adjusted EBITDA can be found at the end of this presentation. 3 The calculation of net leverage can be found at the end of this presentation. 4. RCB is the servicing company for PRA Group’s nonperforming loan portfolios in Brazil. 0 0 0 Disciplined Capital Deployment with Portfolio Purchases in Line with Expectations Continued Growth in Cash Collections While Maintaining Strong Operating Efficiency Growing Adjusted EBITDA2 While Reducing Leverage Adjusted EBITDA Net Leverage Adjusted EBITDA2 and Net Leverage3 $536 $559 62% 61% Q2 25 Q2 26 +4% Cash Collections Cash Efficiency Ratio * Q2 2025 included a $30M after-tax gain on the sale of PRA’s equity stake in RCB4 *
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PRA 3.0 Strategy A Clear Framework for Driving Higher Returns and Long-Term Shareholder Value 3 Nasdaq: PRAA • Disciplined global NPL investor • Strong financial profile through the cycle • Strong diversified funding • Prudent capital allocation strategy • Invest in talent • Performance culture • Aligned incentives • Strong governance and values • Transform operations • Fully leverage technology • Enhanced data & analytics • Disciplined cost management 1 2 3 4 1 2 3 4 1 2 3 4 Operations, Tech & Data People & CultureCapital & Investing Allocate capital to highest-return opportunities Build a leaner, more flexible & tech-driven model Embed high-performance ownership mindset
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Recent Progress Executing PRA 3.0 Major Milestones Achieved Across All Three Vectors During Q2 and Early Q3 4 Nasdaq: PRAA Operations, Tech & Data People & Culture ✓ Reduced management layers and simplified decision-making ✓ Strengthened performance-focused culture ✓ Continued alignment of incentives with shareholder interests ✓ Completed second wave of cost reduction actions: • Eliminated 100 U.S. corporate and overhead roles and 35 offshore roles in Q2 • ~$20M annualized net savings2 • 215+ corporate and overhead roles and 575+ call center roles eliminated since start of 2025 • ~$35M annualized net savings2 ✓ Closed 2 U.S. call centers and 1 offshore site in Q2 ✓ Launched cloud-based omni-channel contact platform in U.S. ✓ Centralized leadership and oversight of global AI initiatives Capital & Investing ✓ Increased Europe ERC by $349M following sustained overperformance and enhanced analytical processes and forecasting capabilities ✓ Continued to reduce leverage ✓ Refinanced €730M European RCF for 5- year term ✓ Repurchased $10M of shares in Q2 • $40M repurchased over the past year • Board authorized new share repurchase program for up to $150M1 1. Future repurchases are subject to various factors, including compliance with covenants in debt agreements and the Board’s discretion. 2. Figures are after factoring in other offsetting costs.
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Capital Deployed Only to Portfolios That Meet Return Thresholds Q2 25 Q3 25 Q4 25 Q1 26 $347 $255 $315 $221 Q2 26 $297 Q2 Portfolio Purchases Remained in Line with Expectations Nasdaq: PRAA 1. Purchase price multiple (PPM) on this slide considers only Core nonperforming loan portfolios purchased. PPM is calculated by dividing the original quarterly total estimated collections by the purchase price in each quarter. Core PPMs1 and Portfolio Purchases U.S. Europe Other 2.08x 2.13x 2.18x 1.87x 2.01x 1.78x X Core PPM $ in millions Europe U.S. 2.01x 1.84x 2.17x 1.86x • Global allocation framework provides flexibility to deploy in markets with the most attractive returns • Supply remains healthy in both the U.S. and Europe • U.S. Core PPM increased sequentially to 2.17x • Europe Core PPM remained stable at 1.86x 1.98x 2.07x 1.98xPRA (global) 1.96x 1.98x 5
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Total Cash Collections Continued Cash Collections Growth Driven by U.S. Legal & Digital and Europe 6 $ in millions $275 $210 $51 Q2 25 $279 $209 $54 Q3 25 $270 $207 $55 Q4 25 $289 $213 $51 Q1 26 $291 $218 $49 Q2 26 $536 $542 $532 $552 $559 +4% U.S. Europe Other • Total cash collections up 4% to $559M • Europe exceeded expectations by 9% Estimated Remaining Collections (ERC)1 $4,386 $564 • Record $8.9B ERC, up 7% • Diversified portfolio across markets and economic cycles • $1.0B annual replenishment rate2 Q2 25 Q2 26 $8,294 $8,895 +7% $ in billions U.S. Legal Cash Collections $ in millions Q2 25 Q3 25 Q4 25 Q1 26 Q2 26 $28 $119 $38 $125 $34 $127 $39 $141 $42 $150 +26% • U.S. legal cash collections up 26% to $150M • 56% of U.S. Core cash collections U.S. Legal Collection Costs U.S. Legal Cash Collections Nasdaq: PRAA 1. Estimated remaining collections (ERC) refers to the sum of all future projected cash collections on our nonperforming loan (NPL) portfolio. 2. Purchases required in the next 12 months to hold ERC constant, based on the average purchase price multiples in the first half of 2026. U.S. Europe Other
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• Europe cash collections exceeded underwriting targets for 6+ consecutive years • 9% cash overperformance during the past 12 months • Performed comprehensive review of European portfolios, as part of quarterly portfolio assessment • Review leveraged several years of cash performance data and enhanced forecasting capabilities • Increased Europe ERC by $349M • Higher portfolio income, the more predictable component of revenue • More moderate levels of Changes in Expected Recoveries over the long-term Financial Impact of the European Portfolio Review 7 Nasdaq: PRAA Europe Performance What We Did Expected Future Impact
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Total Revenues Changes in Expected Recoveries Higher Revenues Supported by Europe ERC Increase and Portfolio Income Growth 8 Nasdaq: PRAA $ in millions Q3 25 $7$64 $263 Q4 25 $1$44 $270 Q1 26 $288 $3 $333 $315 Q2 26 $372 $268 $97 $7 $33 $251 Q2 25 $1$51 $259 $311 +7% +29% • Total Revenues grew 29% • Portfolio Income grew 7%, exceeding cash collections growth • Growing Portfolio Income results in more predictable revenue Portfolio Income Changes in Expected Recoveries Other Revenue Q2 25 Q3 25 Q4 25 Q1 26 $40 ($7) $27 $24 $37 $27 $23 $21 Q2 26 $23 $74 Recoveries Collected in Excess of Forecast (Cash Overperformance) Changes in Expected Future Recoveries (Write-Ups/Downs) • Changes in Expected Recoveries benefited from the increase in Europe ERC Note: amounts may not add up due to rounding
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Strong Earnings Growth Supported by Revenue Growth and Continued Cost Discipline 9 $ in millions Nasdaq: PRAA $76 $70 $53 $89 $96 $38 Q2 25 Q2 26 $203 $219 -7% $13 $21 $35 $28 $58 6.0% 9.3% 15.3% 11.7% 23.3% Q2 25 Q3 25 Q4 25 Q1 26 Q2 26 1. A reconciliation of Net income/(loss) attributable to PRA Group, Inc. to Adjusted net income attributable to PRA can be found at the end of this presentation. 2. A reconciliation of Total stockholders' equity - PRA Group, Inc. to average tangible equity can be found at the end of this presentation. Compensation & Benefits Legal Collection Costs Remaining Operating Expenses • Total operating expenses increased $16M—legal collection costs up $15M, as we continued investing in the channel to support cash collections growth • Operating expenses included $5M of costs related to reorganizing the U.S. business ($2M severance and $3M real estate impairment charges) • Compensation & benefits decreased 7% following workforce reduction actions Total Operating Expenses Adjusted Net Income1 & Adjusted ROATE2 • Adjusted Net Income increased to $58M from $13M in Q2 2025 • Adjusted ROATE trending in the right direction • Earnings growth reflects revenue growth and cost discipline Adjusted Net Income Attributable to PRA Adjusted ROATE
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Adjusted EBITDA Growth Continued to Reduce Net Leverage $ in millions 10 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. The calculation of net leverage can be found at the end of this presentation. 2024 2025 2026 LTM Adjusted EBITDA Net Leverage $1,044 $1,065 $1,100 $1,138 $1,184 $1,240 $1,265 $1,315 $1,349 $1,359 2.73x 2.81x 2.87x 2.83x 2.82x 2.81x 2.77x 2.73x 2.71x 2.67x 3/31 6/30 9/30 12/31 3/31 6/30 9/30 12/31 3/31 6/30 +10% Net leverage declined to 2.67x, down from its peak of 2.87x in Q3 2024, driven by: • Growing Adjusted EBITDA • Disciplined capital deployment Borrowings, LTM Adjusted EBITDA1, and Net Leverage2 Borrowings $2,953 $3,114 $3,296 $3,327 $3,466 $3,614 $3,607 $3,697 $3,779 $3,759
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Strong Funding Profile Supports Disciplined Capital Allocation 11 Nasdaq: PRAA Flexible Capital Allocation StrategyStaggered Maturities (None Until 2028) $ in millions Debt Maturity Profile1 $398 $550 $618 $343 2026 2027 2028 2029 2030 2031 2032 $0 $0 $1,862 UK RCF NA RCF NA Term Loan Europe RCF Senior Unsecured Notes 1. Excludes Colombian revolving credit facility with outstanding borrowings of $0.2 million as of June 30, 2026. 2. Future repurchases are subject to various factors, including compliance with covenants in debt agreements and the Board’s discretion. • Ample liquidity (currently $998M) with longstanding bank relationships: • $733 million based on current ERC • $265 million of additional availability subject to borrowing base and debt covenants, including advance rates • Refinanced €730M European RCF in April 2026 1 Disciplined portfolio purchases that meet return thresholds 2 Invest in initiatives that enhance operating performance: legal, digital, and technology modernization 3 Opportunistic share repurchases: • $10M repurchased in Q2 • $40M repurchased over the last 12 months • Board authorized new share repurchase program for up to $150M2
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Clear Strategy, Strong Execution, and Significant Opportunities Ahead 12 Nasdaq: PRAA Capital & Investing • Deploy capital to opportunities meeting return thresholds • Continue strengthening balance sheet and reducing leverage Operations, Tech & Data • Continue improving operating efficiency • Advance U.S. IT modernization roadmap • Expand AI-enabled solutions People & Culture • Strengthen performance-oriented culture • Continue aligning incentives with shareholder interests Financial Targets Over Next 2-3 Years with PRA 3.0 Execution • Disciplined investments • Depending on market conditions $1.0 - $1.3 Billion of Purchases Per Year Growing Adjusted EBITDA Declining Net Leverage Higher Earnings & Returns • Adjusted EBITDA growth exceeding cash collections growth • Progressing toward the mid-2x area • Grow annualized adjusted net income Focus Areas for Remainder of 2026
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Q&A 13 Nasdaq: PRAA
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Non-GAAP Financial Measures 14 Nasdaq: PRAA The Company reports its financial results in accordance with U.S. generally accepted accounting principles (GAAP). However, m anagement 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 no n-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; plus foreign exchange loss (or le ss foreign exchange gain); plus interest expense, net and other; plus depreciation and amortization; plus impairment of real estate; plus goodwill impairment; plus net income attribut able 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 cert ain 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 Net income/(loss) attributable to PRA Group, Inc. excluding the impact of certain transactions that are unusual or infrequent in nature and not reflective of our ongoing operations (“Adjusted net income attributable to PRA”) to monitor and evaluate our operating performance and allow for better comparability. Management believes Adjusted net income attributable to PRA is a 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 com ponent 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 annualized 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 re lative 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 attributable to PRA. Adjusted ROATE is calculated by dividing annualized Adjusted net income attributable to PRA by average tangible equity.
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Reconciliation of Net Income/(Loss) to Adjusted EBITDA and Calculation of Net Leverage 15 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, 2024 through the LTM as of June 30, 2026. 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, 2024 through the LTM as of June 30, 2026. $ in millions Note: amounts may not add up due to rounding 3/31 6/30 9/30 12/31 3/31 6/30 9/30 12/31 3/31 6/30 Net income/(loss) attributable to PRA Group, Inc. (21)$ 4$ 43$ 71$ 71$ 92$ (343)$ (305)$ (281)$ (265)$ (+) Income tax expense 5 12 10 21 23 30 55 47 51 65 (+) Foreign exchange loss (gain) (1) — 1 — — — — (1) (2) (1) (+) Interest expense, net and other 198 209 221 230 239 246 248 252 255 257 (+) Depreciation and amortization 13 12 11 11 11 11 10 9 8 7 (+) Impairment of real estate 5 5 — — 1 1 1 1 1 3 (+) Goodwill impairment — — — — — — 413 413 413 413 (+) Net income attributable to noncontrolling interests 20 19 17 18 15 15 17 15 13 11 (-) Gain on sale of equity method investment — — — — — (38) (38) (38) (38) — (+) Recoveries collected and applied to Finance receivables, net less Changes in expected recoveries 825 804 797 787 824 885 903 923 929 869 LTM Adjusted EBITDA 1,044$ 1,065$ 1,100$ 1,138$ 1,184$ 1,240$ 1,265$ 1,315$ 1,349$ 1,359$ Borrowings 2,953$ 3,114$ 3,296$ 3,327$ 3,466$ 3,614$ 3,607$ 3,697$ 3,779$ 3,759$ Cash and cash equivalents 108 119 141 106 129 132 107 104 125 132 Net debt 2,845 2,995 3,155 3,221 3,337 3,483 3,500 3,593 3,654 3,627 Net leverage 2.73x 2.81x 2.87x 2.83x 2.82x 2.81x 2.77x 2.73x 2.71x 2.67x 2024 2025 2026 LTM Ended
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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 Attributable to PRA 16 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 attributable to PRA, and provides the Company’s ROE, ROATE and Adjusted ROATE for the periods indicated (in thousands, except for ratio data): 1.Amounts represent the average balances for the respective periods. 2 Amounts not adjusted for Gain on sale of equity method investment in Q2 2025 due to the de minimis effect. 3. Calculated by dividing annualized net income/(loss) attributable to PRA Group, Inc. by average Total stockholders’ equity – PRA Group, Inc. 4. Based on the annual effective tax rate and pretax income excluding the effect of the adjusting items. Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 Total stockholders' equity - PRA Group, Inc.2 1,336,925$ 928,493$ 979,851$ 1,002,288$ 1,045,469$ 1,278,017$ 1,132,709$ 954,172$ 991,068$ 1,023,879$ Less: Goodwill 439,449 26,871 26,871 26,871 26,871 430,082 233,160 26,871 26,871 26,871 Less: Other intangible assets 1,541 1,470 1,435 1,344 1,282 1,515 1,506 1,453 1,390 1,313 Average tangible equity 846,420$ 898,043$ 925,849$ 962,807$ 995,695$ Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 Net income/(loss) attributable to PRA Group, Inc. 42,374$ (407,703)$ 56,528$ 28,210$ 57,917$ ROE3 13.3% NM 23.7% 11.4% 22.6% ROATE 20.0% NM 24.4% 11.7% 23.3% Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 Net income/(loss) attributable to PRA Group, Inc. 42,374$ (407,703)$ 56,528$ 28,210$ 57,917$ Less: Gain on sale of equity method investment (38,403) — — — — Plus: Goodwill impairment — 412,611 — — — Plus: Tax effect of adjusting items4 8,717 15,969 (21,171) — — Adjusted net income attributable to PRA 12,688 20,877 35,357 28,210 57,917 Adjusted ROATE 6.0% 9.3% 15.3% 11.7% 23.3% ROE and ROATE Adjusted Net Income/(Loss) Reconciliation and Adjusted ROATE Balance as of Period End Average Tangible Equity Reconciliation1
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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