PRA GROUP INC

PRA Group, Inc. (NASDAQ: PRAG) operates as a global specialty finance company headquartered in Norfolk, Virginia with a website at www.pragroup.com. The company is a leading purchaser, collector and manager of nonperforming loan portfolios across 18 countries, with primary operations in the United States and Europe.

The company's core business involves acquiring nonperforming loans from credit originators such as banks, consumer finance companies and auto finance providers, then collecting on these accounts through disciplined strategies over extended periods. PRA Group purchases two primary categories of loans: Core accounts from customers who have failed to pay and are no longer being pursued by originators, and Insolvency accounts involving customers in bankruptcy or similar proceedings. The company also operates an ancillary business providing fee-based services for class action claims recoveries in the United States.

During the fourth quarter of 2025, PRA Group reorganized its business into two reportable segments: United States and European operations. In 2025, international operations represented 43 percent of total portfolio income. The company maintains operations across 12 European countries plus the United Kingdom, with smaller operations in South America, Canada and Australia. As of December 31, 2025, the company employed 2,615 full-time equivalents globally, with approximately 60 percent of its workforce located in the United States, 35 percent in Europe and 5 percent in other markets.

PRA Group's collection efforts combine internally staffed call centers with external vendors and utilize proprietary models to direct work toward customers most likely to pay. The company increasingly leverages digital platforms for collections, legal recovery processes and judicial collections. Collection strategies vary by geography, with some European markets following prescribed legal processes while others allow for model-based identification of accounts with higher payment propensity.

The company's competitive strengths include its diverse global presence, strong relationships with credit originators, extensive proprietary data informing underwriting decisions, comprehensive compliance programs and reputation from previous transactions. PRA Group operates under a disciplined capital allocation framework with globally-established parameters for portfolio return thresholds and leverage ratios.