PRA 10Q 2024 Q2 Quarterly report

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the quarterly period ended June 30, 2024

☐ Transition Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the transition period from ________ to ________

Commission File Number: 000-50058

PRA Group, Inc.

(Exact name of registrant as specified in its charter)

Delaware

75-3078675

(State or other jurisdiction of incorporation or organization)

(I.R.S. Employer Identification No.)

120 Corporate Boulevard

Norfolk, Virginia 23502

(Address of principal executive offices)

(888) 772-7326

(Registrant's Telephone No., including area code)

Not Applicable

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $0.01 par value per share	PRAA	NASDAQ Global Select Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes þ No ¨

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes þ No ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer þ Accelerated filer ¨ Non-accelerated filer ¨ Smaller reporting company ☐ Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No þ

The number of shares of the registrant's common stock outstanding as of August 1, 2024 was 39,417,253.

Table of Contents


Part I. Financial Information

Item 1.	Financial Statements (Unaudited)	3
	Consolidated Balance Sheets	3
	Consolidated Income Statements	4
	Consolidated Statements of Comprehensive Income	5
	Consolidated Statements of Changes in Equity	6
	Consolidated Statements of Cash Flows	8
	Notes to Consolidated Financial Statements	9
	1. Organization and Business	9

	2. Finance Receivables, net	9
	3. Investments	13
	4. Goodwill	13

	5. Borrowings	13
	6. Derivatives	15
	7. Fair Value	16
	8. Accumulated Other Comprehensive Loss	18
	9. Earnings per Share	18

	10. Commitments and Contingencies	19
	11. Recently Issued Accounting Standards	20

Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	21
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	40
Item 4.	Controls and Procedures	41

Part II. Other Information

Item 1.	Legal Proceedings	42
Item 1A.	Risk Factors	42
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	42
Item 3.	Defaults Upon Senior Securities	42
Item 4.	Mine Safety Disclosures	42
Item 5.	Other Information	42
Item 6.	Exhibits	42

Signatures		44

Part I. Financial Information

Item 1. Financial Statements (Unaudited)

PRA Group, Inc.

Consolidated Balance Sheets

June 30, 2024 and December 31, 2023

(Amounts in thousands)


	(unaudited)
	June 30, 2024		December 31, 2023
Assets
Cash and cash equivalents	$	118,865	$	112,528

Investments	59,619		72,404
Finance receivables, net	3,820,186		3,656,598

Income taxes receivable	34,813		27,713
Deferred tax assets, net	76,486		74,694
Right-of-use assets	42,374		45,877
Property and equipment, net	32,827		36,450
Goodwill	415,646		431,564
Other assets	61,124		67,526
Total assets	$	4,661,940	$	4,525,354
Liabilities and Equity
Liabilities:
Accounts payable	$	10,198	$	6,325

Accrued expenses	114,260		131,893
Income taxes payable	23,583		17,912
Deferred tax liabilities, net	18,423		17,051
Lease liabilities	46,746		50,300
Interest-bearing deposits	114,991		115,589
Borrowings	3,113,777		2,914,270
Other liabilities	16,684		32,638
Total liabilities	3,458,662		3,285,978

Equity:
Preferred stock, $0.01 par value, 2,000 shares authorized, no shares issued and outstanding	—		—
Common stock, $0.01 par value; 100,000 shares authorized, 39,417 shares issued and outstanding as of June 30, 2024; 100,000 shares authorized, 39,247 shares issued and outstanding as of December 31, 2023	394		392
Additional paid-in capital	12,339		7,071
Retained earnings	1,514,539		1,489,548
Accumulated other comprehensive loss	(381,809)		(329,899)
Total stockholders' equity - PRA Group, Inc.	1,145,463		1,167,112
Noncontrolling interests	57,815		72,264
Total equity	1,203,278		1,239,376
Total liabilities and equity	$	4,661,940	$	4,525,354

The accompanying notes are an integral part of these Consolidated Financial Statements.

PRA Group, Inc.

Consolidated Income Statements

For the Three and Six Months Ended June 30, 2024 and 2023

(Amounts in thousands, except per share amounts)

(unaudited)


	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
Revenues:
Portfolio income	$	209,290	$	184,290	$	411,346	$	372,532
Changes in expected recoveries	73,320		21,136		124,994		(15,776)
Total portfolio revenue	282,610		205,426		536,340		356,756
Other revenue	1,619		3,810		3,475		7,950
Total revenues	284,229		209,236		539,815		364,706

Operating expenses:
Compensation and employee services	74,241		65,788		147,838		148,191
Legal collection fees	13,762		9,551		25,874		18,389
Legal collection costs	35,274		21,522		61,965		45,467
Agency fees	21,008		17,677		40,731		35,055
Outside fees and services	18,124		18,262		43,174		43,206
Communication	11,577		10,117		24,155		20,644
Rent and occupancy	4,136		4,319		8,280		8,767
Depreciation and amortization	2,637		3,482		5,357		7,071

Other operating expenses	14,248		12,957		26,823		25,999

Total operating expenses	195,007		163,675		384,197		352,789
Income from operations	89,222		45,561		155,618		11,917
Other income and (expense):

Interest expense, net	(55,353)		(43,022)		(107,631)		(81,305)

Foreign exchange gain/(loss), net	(99)		429		128		420
Other	46		(230)		(160)		(880)
Income/(loss) before income taxes	33,816		2,738		47,955		(69,848)

Income tax expense/(benefit)	8,702		1,578		11,088		(17,105)
Net income/(loss)	25,114		1,160		36,867		(52,743)
Adjustment for net income attributable to noncontrolling interests	3,598		4,964		11,876		9,690
Net income/(loss) attributable to PRA Group, Inc.	$	21,516	$	(3,804)	$	24,991	$	(62,433)

Net income/(loss) per common share attributable to PRA Group, Inc.:
Basic	$	0.55	$	(0.10)	$	0.64	$	(1.60)
Diluted	$	0.54	$	(0.10)	$	0.63	$	(1.60)
Weighted average number of shares outstanding:
Basic	39,364		39,190		39,319		39,111
Diluted	39,546		39,190		39,497		39,111

The accompanying notes are an integral part of these Consolidated Financial Statements.

PRA Group, Inc.

Consolidated Statements of Comprehensive Income

For the Three and Six Months Ended June 30, 2024 and 2023

(Amounts in thousands)

(unaudited)


	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
Net income/(loss)	$	25,114	$	1,160	$	36,867	$	(52,743)
Other comprehensive income/(loss), net of tax
Foreign currency translation adjustments	(14,258)		7,083		(62,449)		5,533
Cash flow hedges	(1,293)		5,719		1,515		888
Debt securities available-for-sale	65		(80)		111		48
Other comprehensive income/(loss)	(15,486)		12,722		(60,823)		6,469
Total comprehensive income/(loss)	9,628		13,882		(23,956)		(46,274)
Less comprehensive income/(loss) attributable to noncontrolling interests	(3,097)		8,956		2,962		16,232
Comprehensive income/(loss) attributable to PRA Group, Inc.	$	12,725	$	4,926	$	(26,918)	$	(62,506)

The accompanying notes are an integral part of these Consolidated Financial Statements.

PRA Group, Inc.

Consolidated Statements of Changes in Equity

For the Six Months Ended June 30, 2024

(Amounts in thousands)

(unaudited)


	Common Stock			Additional Paid-In		Retained		Accumulated Other Comprehensive		Noncontrolling		Total
	Shares	Amount		Capital		Earnings		Income/(Loss)		Interests		Equity
Balance as of December 31, 2023	39,247	$	392	$	7,071	$	1,489,548	$	(329,899)	$	72,264	$	1,239,376
Components of comprehensive income, net of tax:
Net income	—	—		—		3,475		—		8,278		11,753
Foreign currency translation adjustments	—	—		—		—		(45,973)		(2,218)		(48,191)
Cash flow hedges	—	—		—		—		2,808		—		2,808
Debt securities available-for-sale	—	—		—		—		46		—		46
Distributions to noncontrolling interests	—	—		—		—		—		(11,332)		(11,332)
Vesting of restricted stock	98	1		(1)		—		—		—		—

Share-based compensation expense	—	—		3,327		—		—		—		3,327
Employee stock relinquished for payment of taxes	—	—		(1,469)		—		—		—		(1,469)
Balance as of March 31, 2024	39,345	$	393	$	8,928	$	1,493,023	$	(373,018)	$	66,992	$	1,196,318
Components of comprehensive income, net of tax:
Net income	—	—		—		21,516		—		3,598		25,114
Foreign currency translation adjustments	—	—		—		—		(7,563)		(6,695)		(14,258)
Cash flow hedges	—	—		—		—		(1,293)		—		(1,293)
Debt securities available-for-sale	—	—		—		—		65		—		65
Distributions to noncontrolling interests	—	—		—		—		—		(6,080)		(6,080)

Vesting of restricted stock	72	1		(1)		—		—		—		—

Share-based compensation expense	—	—		3,555		—		—		—		3,555
Employee stock relinquished for payment of taxes	—	—		(143)		—		—		—		(143)
Balance as of June 30, 2024	39,417	$	394	$	12,339	$	1,514,539	$	(381,809)	$	57,815	$	1,203,278

The accompanying notes are an integral part of these Consolidated Financial Statements.

PRA Group, Inc.

Consolidated Statements of Changes in Equity

For the Six Months Ended June 30, 2023

(Amounts in thousands)

(unaudited)


	Common Stock			Additional Paid-In		Retained		Accumulated Other Comprehensive		Noncontrolling		Total
	Shares	Amount		Capital		Earnings		Income/(Loss)		Interests		Equity
Balance as of December 31, 2022	38,980	$	390	$	2,172	$	1,573,025	$	(347,926)	$	59,089	$	1,286,750
Components of comprehensive income, net of tax:
Net income/(loss)	—	—		—		(58,629)		—		4,726		(53,903)
Foreign currency translation adjustments	—	—		—		—		(4,101)		2,551		(1,550)
Cash flow hedges	—	—		—		—		(4,831)		—		(4,831)
Debt securities available-for-sale	—	—		—		—		128		—		128
Vesting of restricted stock	190	2		(2)		—		—		—		—
Share-based compensation expense	—	—		3,799		—		—		—		3,799
Employee stock relinquished for payment of taxes	—	—		(5,684)		—		—		—		(5,684)
Balance as of March 31, 2023	39,170	$	392	$	285	$	1,514,396	$	(356,730)	$	66,366	$	1,224,709
Components of comprehensive income, net of tax:
Net income/(loss)	—	—		—		(3,804)		—		4,964		1,160
Foreign currency translation adjustments	—	—		—		—		3,091		3,992		7,083
Cash flow hedges	—	—		—		—		5,719		—		5,719
Debt securities available-for-sale	—	—		—		—		(80)		—		(80)
Distributions to noncontrolling interests	—	—		—		—		—		(1,173)		(1,173)
Vesting of restricted stock	72	—		—		—		—		—		—
Share-based compensation expense	—	—		2,715		—		—		—		2,715
Employee stock relinquished for payment of taxes	—	—		(459)		—		—		—		(459)
Balance as of June 30, 2023	39,242	$	392	$	2,541	$	1,510,592	$	(348,000)	$	74,149	$	1,239,674

The accompanying notes are an integral part of these Consolidated Financial Statements.

PRA Group, Inc.

Consolidated Statements of Cash Flows

For the Six Months Ended June 30, 2024

(Amounts in thousands)

(unaudited)


	Six Months Ended June 30,
	2024		2023
Cash flows from operating activities:
Net income/(loss)	$	36,867	$	(52,743)
Adjustments to reconcile net income/(loss) to net cash used in operating activities:
Share-based compensation expense	6,882		6,514
Depreciation and amortization	5,357		7,071



Amortization of debt discount and issuance costs	4,531		4,825
Changes in expected recoveries	(124,994)		15,776

Deferred income taxes	(2,073)		(24,439)
Net unrealized foreign currency transaction gain	(11,215)		(27,907)

Other	(1,027)		(1,051)

Changes in operating assets and liabilities:
Other assets	(1,046)		(1,306)

Accrued expenses, accounts payable and other liabilities	(13,404)		6,050
Income taxes payable, net	(2,366)		(13,629)




Net cash used in operating activities	(102,488)		(80,839)
Cash flows from investing activities:
Purchases of property and equipment, net	(1,832)		(1,091)

Purchases of nonperforming loan portfolios	(625,186)		(559,547)
Recoveries applied to negative allowance	520,940		463,966
Purchases of investments	(48,247)		(60,057)
Proceeds from sales and maturities of investments	58,130		62,762



Net cash used in investing activities	(96,195)		(93,967)
Cash flows from financing activities:
Proceeds from lines of credit	435,341		459,432
Principal payments on lines of credit	(604,938)		(274,772)
Retirement of Convertible Senior Notes due 2023	—		(345,000)
Proceeds from issuance of Senior Notes due 2030	400,000		—
Proceeds from issuance of Senior Notes due 2028	—		400,000
Principal payments on long-term debt	(7,500)		(5,000)
Repurchases of senior notes	—		(3,657)

Payments of origination costs and fees	(5,111)		(5,324)
Tax withholdings related to share-based payments	(1,612)		(6,142)
Distributions to noncontrolling interests	(17,412)		(1,172)


Net increase/(decrease) in interest-bearing deposits	5,058		(9,869)


Net cash provided by financing activities	203,826		208,496
Effect of exchange rates on cash	1,082		6,216
Net increase in cash, cash equivalents and restricted cash	6,225		39,906
Cash, cash equivalents and restricted cash, beginning of period	113,692		84,759
Cash, cash equivalents and restricted cash, end of period	$	119,917	$	124,665

Supplemental disclosure of cash flow information:
Cash paid for interest	$	116,575	$	51,652
Cash paid for income taxes	15,326		20,859
Reconciliation to Balance Sheet accounts:
Cash and cash equivalents	$	118,865	$	111,375
Restricted cash included in Other assets	1,052		13,290
Cash, cash equivalents and restricted cash	$	119,917	$	124,665

The accompanying notes are an integral part of these Consolidated Financial Statements.

PRA Group, Inc.

Notes to Consolidated Financial Statements

1. Organization and Business:

Nature of operations: As used herein, the terms "PRA Group," the "Company," or similar terms refer to PRA Group, Inc. and its subsidiaries.

PRA Group, Inc., a Delaware corporation, is a global financial and business services company with operations in the Americas, Europe and Australia. The Company's primary business is the purchase, collection and management of portfolios of nonperforming loans. The Company also provides fee-based services on class action claims recoveries in the United States ("U.S.").

Basis of presentation: The Consolidated Financial Statements of the Company are prepared in accordance with U.S. generally accepted accounting principles ("GAAP"). The accompanying interim financial statements have been prepared in accordance with the instructions for Quarterly Reports on Form 10-Q, and therefore, do not include all information and Notes to the Consolidated Financial Statements necessary for a complete presentation of financial position, results of operations, comprehensive income/(loss) and cash flows in conformity with GAAP. In the opinion of management, all adjustments, consisting of normal and recurring items, necessary for the fair presentation of the Company's Consolidated Balance Sheets as of June 30, 2024, its Consolidated Income Statements and Statements of Comprehensive Income for the three and six months ended June 30, 2024 and 2023, and its Consolidated Statements of Changes in Equity and Statements of Cash Flows for the six months ended June 30, 2024 and 2023, have been included. The Consolidated Financial Statements include the accounts of PRA Group and other entities in which the Company has a controlling interest. All significant intercompany accounts and transactions have been eliminated.

These unaudited Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements and notes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2023 (the "2023 Form 10-K"). For further discussion of the Company's significant accounting policies, refer to Note 1 to the Consolidated Financial Statements in the 2023 Form 10-K. There were no material changes to these policies during the three months ended June 30, 2024.

The preparation of the Consolidated Financial Statements in conformity with GAAP requires management to make estimates and assumptions that affect reported amounts and disclosures. Realized results could differ from those estimates and assumptions, and the Company's Consolidated Income Statements for the three and six months ended June 30, 2024 may not be indicative of future results.

Reclassification of prior year presentation: In the Consolidated Statements of Cash Flows, certain prior period amounts have been reclassified for consistency with the current period presentation.

2. Finance Receivables, net:

Finance receivables, net consisted of the following as of June 30, 2024 and December 31, 2023 (amounts in thousands):


	June 30, 2024		December 31, 2023
Amortized cost	$	—	$	—
Negative allowance for expected recoveries	3,820,186		3,656,598
Balance at end of period	$	3,820,186	$	3,656,598

PRA Group, Inc.

Notes to Consolidated Financial Statements

Changes in the negative allowance for expected recoveries by portfolio segment for the three and six months ended June 30, 2024 and 2023 were as follows (amounts in thousands):


	Three Months Ended June 30,
	2024						2023
	Core		Insolvency		Total		Core		Insolvency		Total
Balance at beginning of period	$	3,298,092	$	352,103	$	3,650,195	$	2,935,850	$	350,647	$	3,286,497
Initial negative allowance for expected recoveries - portfolio acquisitions (1)	326,752		52,617		379,369		308,274		19,485		327,759
Foreign currency translation adjustment	(13,623)		205		(13,418)		23,380		4,034		27,414
Recoveries applied to negative allowance (2)	(226,247)		(43,033)		(269,280)		(198,897)		(39,361)		(238,258)
Changes in expected recoveries (3)	65,747		7,573		73,320		17,798		3,338		21,136
Balance at end of period	$	3,450,721	$	369,465	$	3,820,186	$	3,086,405	$	338,143	$	3,424,548


	Six Months Ended June 30,
	2024						2023
	Core		Insolvency		Total		Core		Insolvency		Total
Balance at beginning of period	$	3,295,214	$	361,384	$	3,656,598	$	2,936,207	$	358,801	$	3,295,008
Initial negative allowance for expected recoveries - portfolio acquisitions (1)	545,409		79,777		625,186		515,595		42,389		557,984
Foreign currency translation adjustment	(63,750)		(1,902)		(65,652)		43,216		8,082		51,298
Recoveries applied to negative allowance (2)	(441,463)		(79,477)		(520,940)		(385,283)		(78,683)		(463,966)
Changes in expected recoveries (3)	115,311		9,683		124,994		(23,330)		7,554		(15,776)
Balance at end of period	$	3,450,721	$	369,465	$	3,820,186	$	3,086,405	$	338,143	$	3,424,548

(1) Initial negative allowance for expected recoveries - portfolio acquisitions

Portfolio acquisitions for the three and six months ended June 30, 2024 and 2023 were as follows (amounts in thousands):


	Three Months Ended June 30,
	2024						2023
	Core		Insolvency		Total		Core		Insolvency		Total
Face value	$	2,402,148	$	279,417	$	2,681,565	$	2,217,262	$	91,940	$	2,309,202
Noncredit discount	(316,934)		(23,186)		(340,120)		(240,532)		(6,742)		(247,274)
Allowance for credit losses at acquisition	(1,758,462)		(203,614)		(1,962,076)		(1,668,456)		(65,713)		(1,734,169)
Purchase price	$	326,752	$	52,617	$	379,369	$	308,274	$	19,485	$	327,759


	Six Months Ended June 30,
	2024						2023
	Core		Insolvency		Total		Core		Insolvency		Total
Face value	$	4,110,779	$	393,633	$	4,504,412	$	3,725,226	$	196,750	$	3,921,976
Noncredit discount	(548,319)		(36,628)		(584,947)		(391,043)		(14,784)		(405,827)
Allowance for credit losses at acquisition	(3,017,051)		(277,228)		(3,294,279)		(2,818,588)		(139,577)		(2,958,165)
Purchase price	$	545,409	$	79,777	$	625,186	$	515,595	$	42,389	$	557,984

PRA Group, Inc.

Notes to Consolidated Financial Statements

The initial negative allowance recorded on portfolio acquisitions for the three and six months ended June 30, 2024 and 2023 was as follows (amounts in thousands):


	Three Months Ended June 30,
	2024						2023
	Core		Insolvency		Total		Core		Insolvency		Total
Allowance for credit losses at acquisition	$	(1,758,462)	$	(203,614)	$	(1,962,076)	$	(1,668,456)	$	(65,713)	$	(1,734,169)
Writeoffs, net	1,758,462		203,614		1,962,076		1,668,456		65,713		1,734,169
Expected recoveries	326,752		52,617		379,369		308,274		19,485		327,759
Initial negative allowance for expected recoveries	$	326,752	$	52,617	$	379,369	$	308,274	$	19,485	$	327,759


	Six Months Ended June 30,
	2024						2023
	Core		Insolvency		Total		Core		Insolvency		Total
Allowance for credit losses at acquisition	$	(3,017,051)	$	(277,228)	$	(3,294,279)	$	(2,818,588)	$	(139,577)	$	(2,958,165)
Writeoffs, net	3,017,051		277,228		3,294,279		2,818,588		139,577		2,958,165
Expected recoveries	545,409		79,777		625,186		515,595		42,389		557,984
Initial negative allowance for expected recoveries	$	545,409	$	79,777	$	625,186	$	515,595	$	42,389	$	557,984

(2) Recoveries applied to negative allowance

Recoveries applied to the negative allowance for the three and six months ended June 30, 2024 and 2023 were as follows (amounts in thousands):


	Three Months Ended June 30,
	2024						2023
	Core		Insolvency		Total		Core		Insolvency		Total
Recoveries (a)	$	423,659	$	54,911	$	478,570	$	373,178	$	49,370	$	422,548
Less - amounts reclassified to portfolio income	197,412		11,878		209,290		174,281		10,009		184,290
Recoveries applied to negative allowance	$	226,247	$	43,033	$	269,280	$	198,897	$	39,361	$	238,258


	Six Months Ended June 30,
	2024						2023
	Core		Insolvency		Total		Core		Insolvency		Total
Recoveries (a)	$	829,972	$	102,314	$	932,286	$	737,414	$	99,084	$	836,498
Less - amounts reclassified to portfolio income	388,509		22,837		411,346		352,131		20,401		372,532
Recoveries applied to negative allowance	$	441,463	$	79,477	$	520,940	$	385,283	$	78,683	$	463,966

(a) Recoveries include cash collections, buybacks and other cash-based adjustments.

(3) Changes in expected recoveries

The Company develops its estimates of expected recoveries by applying discounted cash flow methodologies to its estimated remaining collections and recognizes income over the estimated life of the pool at the constant effective interest rate of the pool. For additional information about these methodologies, refer to Note 1 to the Consolidated Financial Statements in the 2023 Form 10-K.

PRA Group, Inc.

Notes to Consolidated Financial Statements

Changes in expected recoveries for the three months ended June 30, 2024 and 2023 were as follows (amounts in thousands):


	Three Months Ended June 30,
	2024						2023
	Core		Insolvency		Total		Core		Insolvency		Total
Recoveries received in excess of forecast	$	46,830	$	7,430	$	54,260	$	21,536	$	3,812	$	25,348
Changes in expected future recoveries	18,917		143		19,060		(3,738)		(474)		(4,212)
Changes in expected recoveries	$	65,747	$	7,573	$	73,320	$	17,798	$	3,338	$	21,136

Changes in expected recoveries for the three months ended June 30, 2024 were $73.3 million, which included $54.3 million in recoveries received in excess of forecast (cash collections overperformance), due mainly to collections performance in the U.S., driven in large part by the Company's cash-generating initiatives, coupled with collections performance in Europe. Changes in expected future recoveries of $19.1 million mainly reflect the Company's assessment of certain pools in the U.S. and Europe, resulting in an increase to the expected cash flows based primarily on overperformance in recent periods. The increase in expected cash flows was driven in large part by forecast increases to the 2013 to 2019 U.S. Core pools, as well as increases to a number of pools in Europe.

Changes in expected recoveries for the three months ended June 30, 2023 were a net positive $21.1 million. This included $25.3 million in recoveries received in excess of forecast (cash collections overperformance) and a $4.2 million negative adjustment to changes in expected future recoveries. The $25.3 million in recoveries received in excess of forecast was largely due to overperformance generated from larger than expected one-time payments in Europe and performance on new vintages in South America.

Changes in expected recoveries for the six months ended June 30, 2024 and 2023 were as follows (amounts in thousands):


	Six Months Ended June 30,
	2024						2023
	Core		Insolvency		Total		Core		Insolvency		Total
Recoveries received in excess of forecast	$	80,748	$	9,350	$	90,098	$	21,823	$	7,363	$	29,186
Changes in expected future recoveries	34,563		333		34,896		(45,153)		191		(44,962)
Changes in expected recoveries	$	115,311	$	9,683	$	124,994	$	(23,330)	$	7,554	$	(15,776)

Changes in expected recoveries for the six months ended June 30, 2024 were $125.0 million, which included $90.1 million in recoveries received in excess of forecast, due mainly to collections performance in the U.S., driven in large part by the Company's cash-generating initiatives, coupled with collections performance in Brazil and Europe. Changes in expected future recoveries of $34.9 million mainly reflect the Company's assessment of certain pools in the U.S. and Europe, resulting in an increase to the expected cash flows based primarily on overperformance in recent periods. The increase in expected cash flows was driven in large part by forecast increases to the 2013 to 2019 U.S. Core pools, as well as increases to a number of pools in Europe.

Changes in expected recoveries for the six months ended June 30, 2023 were a net negative $15.8 million. This included $29.2 million in recoveries received in excess of forecast (cash collections overperformance), primarily due to strong performance in Europe and South America, and a $45.0 million negative adjustment to changes in expected future recoveries. The changes in expected future recoveries reflect the Company's assessment of certain pools, which resulted in a reduction of expected cash flows due to collections performance in U.S. call centers resulting from weaker economic conditions.

PRA Group, Inc.

Notes to Consolidated Financial Statements

3. Investments:

Investments consisted of the following as of June 30, 2024 and December 31, 2023 (amounts in thousands):


	June 30, 2024		December 31, 2023


Debt securities



Available-for-sale	$	47,918	$	59,470


Equity securities
Private equity funds	2,281		2,451
Equity method investment	9,420		10,483

Total investments	$	59,619	$	72,404

Debt Securities

Government securities: As of June 30, 2024, the Company's available-for-sale debt securities consisted of Swedish treasury securities maturing within one year. As of June 30, 2024 and December 31, 2023, the amortized cost and fair value of these investments were as follows (amounts in thousands):


	June 30, 2024
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Aggregate Fair Value
Available-for-sale


Government securities	$	47,741	$	177	$	—	$	47,918



	December 31, 2023
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Aggregate Fair Value
Available-for-sale

Government securities	$	59,404	$	66	$	—	$	59,470

Equity Method Investment

The Company has an 11.7% interest in RCB Investimentos S.A. ("RCB"), a servicing platform for nonperforming loans in Brazil, accounted for under the equity method.

4. Goodwill:

The Company performs an annual review of goodwill as of October 1 of each year, or more frequently if indicators of impairment exist, with the most recent annual review performed as of October 1, 2023. The Company performed a quarterly assessment by evaluating whether any triggering events had occurred as of June 30, 2024, which included considering current market conditions, and determined that goodwill was not more-likely-than-not impaired. Changes in goodwill for the three and six months ended June 30, 2024 and 2023, were as follows (amounts in thousands):


	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
Balance as of beginning of period	$	411,846	$	420,647	$	431,564	$	435,921






Foreign currency translation	3,800		(5,742)		(15,918)		(21,016)
Balance as of end of period	$	415,646	$	414,905	$	415,646	$	414,905

PRA Group, Inc.

Notes to Consolidated Financial Statements

5. Borrowings:

Borrowings consisted of the following as of June 30, 2024 and December 31, 2023 (amounts in thousands):


	June 30, 2024		December 31, 2023
North American revolving credit facility (1)	$	219,305	$	396,303
United Kingdom revolving credit facility (2)	495,665		502,847
European revolving credit facility (3)	533,653		538,565
North American term loan (4)	435,000		442,500
Credit facility borrowings	1,683,623		1,880,215
Senior Notes due 2025 (the "2025 Notes")	298,000		298,000
Senior Notes due 2028 (the "2028 Notes")	398,000		398,000
Senior Notes due 2029 (the "2029 Notes")	350,000		350,000
Senior Notes due 2030 (the "2030 Notes")	400,000		—
Senior notes	1,446,000		1,046,000
Credit facility borrowings and senior notes	3,129,623		2,926,215
Debt discount and issuance costs	(15,846)		(11,945)
Borrowings	$	3,113,777	$	2,914,270

(1)Revolving credit facility under the Company's North American Revolving Credit and Term Loan (the "North American Credit Agreement"), which includes an aggregate principal amount of $1.5 billion (subject to compliance with a borrowing base and applicable debt covenants), consisting of (i) a fully-funded $435.0 million term loan (the "Term Loan"), (ii) a $1.0 billion domestic revolving credit facility, and (iii) a $75.0 million Canadian revolving credit facility, maturing on July 30, 2026.

(2)Revolving credit facility under the Company's United Kingdom ("UK") Credit Agreement (the "UK Credit Agreement"), consisting of an $800.0 million revolving credit facility (subject to a borrowing base) and an accordion feature for up to $200.0 million in additional commitments, subject to certain conditions, maturing on July 30, 2026.

(3)Revolving credit facility under the Company's European Credit Agreement (the "European Credit Agreement"), providing revolving borrowings for an aggregate amount of approximately €730.0 million (subject to the borrowing base and applicable debt covenants) and an accordion feature for up to €500.0 million, subject to certain conditions, maturing on November 23, 2027. As of June 30, 2024, after an increase in the limit during the prior quarter, interest bearing deposits in AK Nordic AB cannot exceed SEK2.2 billion.

(4)Term Loan under the North American Credit Agreement.

During the three months ended June 30, 2024, the Company repaid $395.9 million aggregate principal amount of outstanding borrowings under the North American revolving credit facility with the net proceeds from the issuance of the 2030 Notes. For additional details about the North American Credit Agreement, the UK Credit Agreement, the European Credit Agreement and the Company's senior notes, refer to Note 7 to the Consolidated Financial Statements in the 2023 Form 10-K and description of the 2030 Notes below.

The Company determined that it was in compliance with the covenants contained in its financing arrangements as of June 30, 2024.

2030 Notes

On May 20, 2024, the Company completed the private offering of $400.0 million in aggregate principal amount of its 8.875% Senior Notes due January 31, 2030. The 2030 Notes were issued pursuant to an Indenture dated May 20, 2024 (the "2024 Indenture"), between the Company and Regions Bank, as trustee. The 2024 Indenture contains customary terms and covenants, including certain events of default after which the 2030 Notes may be due and payable immediately. The 2030 Notes are senior unsecured obligations of the Company and are guaranteed on a senior unsecured basis by all of the Company's existing and future domestic restricted subsidiaries that guarantee the North American Credit Agreement, subject to certain exceptions. Interest on the 2030 Notes is payable semi-annually, in arrears, on January 31 and July 31 of each year.

Before June 1, 2026, the Company may redeem the 2030 Notes, in whole or in part, at a price equal to 100% of the aggregate principal amount of the 2030 Notes being redeemed, plus the applicable "make whole" premium. On or before June 1, 2026, the Company may redeem up to 40% of the aggregate principal amount of the 2030 Notes at a redemption price of 108.875% plus accrued and unpaid interest with the net cash proceeds of a public offering of common stock of the Company provided, that at least 60% in aggregate principal amount of the 2030 Notes remains outstanding immediately after the occurrence of such redemption and that such redemption will occur within 90 days of the date of the closing of such public offering.

PRA Group, Inc.

Notes to Consolidated Financial Statements

In addition, on or after June 1, 2026, the Company may redeem the 2030 Notes, in whole or in part, at a price equal to 104.438% of the aggregate principal amount of the 2030 Notes being redeemed. The applicable redemption price changes if redeemed during the 12 months beginning June 1 of each year to 102.219% for 2027 and then 100% for 2028 and thereafter.

In the event of a change of control, each holder will have the right to require the Company to repurchase all or any part of such holder's 2030 Notes at an offer price equal to 101% of the aggregate principal amount plus accrued and unpaid interest. If the Company sells assets under certain circumstances and does not use the proceeds for specified purposes, the Company will be required to make an offer to repurchase the 2030 Notes at 100% of their principal amount plus accrued and unpaid interest.

6. Derivatives:

The Company periodically enters into derivative financial instruments; typically interest rate swaps and foreign currency contracts, to reduce its exposure to fluctuations in interest rates on variable-rate debt and foreign currency exchange rates. Derivative financial instruments are recognized at fair value in the Company's Consolidated Balance Sheets. For further discussion of the Company's use of, and accounting policies for, derivative instruments, refer to Notes 1 and 8 to the Consolidated Financial Statements in the 2023 Form 10-K. The following table summarizes the fair value of derivative financial instruments as of June 30, 2024 and December 31, 2023 (amounts in thousands):

June 30, 2024

December 31, 2023

Balance Sheet Account

Fair Value

Balance Sheet Account

Fair Value

Derivatives designated as hedging instruments:

Interest rate contracts

Other assets

17,570

Other assets

21,770

Interest rate contracts

Other liabilities

5,379

Other liabilities

11,627

Derivatives not designated as hedging instruments:

Foreign currency contracts

Other assets

890

Other assets

1,007

Foreign currency contracts

Other liabilities

506

Other liabilities

8,776

Derivatives Designated as Hedging Instruments:

Changes in the fair value of derivative contracts designated as cash flow hedging instruments are recognized in other comprehensive income ("OCI"). As of June 30, 2024 and December 31, 2023, the notional amount of interest rate contracts designated as cash flow hedging instruments was $813.6 million and $872.3 million, respectively. Derivatives designated as cash flow hedging instruments remained highly effective as of June 30, 2024, and have remaining terms from six months to four years. As of June 30, 2024, the Company estimates that $11.5 million of net derivative gains included in OCI will be reclassified into earnings within the next 12 months.

The following tables summarize the effects of derivatives designated as cash flow hedging instruments for the three and six months ended June 30, 2024 and 2023 (amounts in thousands):


	Gain recognized in OCI, net of tax
	Three Months Ended June 30,				Six Months Ended June 30,
Hedging instrument	2024		2023		2024		2023
Interest rate contracts	$	2,860	$	10,771	$	9,930	$	10,142

	Gain reclassified from OCI into income
	Three Months Ended June 30,				Six Months Ended June 30,
Income statement account	2024		2023		2024		2023
Interest expense, net	$	5,532	$	6,670	$	11,206	$	12,168

During the three months ended June 30, 2024, the Company elected certain of the optional expedients in accordance with ASU 2021-01, "Reference Rate Reform (Topic 848): Overall" ("ASU 2021-01"), and ASU 2022-06, "Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848" (“ASU 2022-06”), to maintain cash flow hedge accounting for interest contracts with a combined notional amount of CAD 33.2 million.

PRA Group, Inc.

Notes to Consolidated Financial Statements

Derivatives Not Designated as Hedging Instruments:

The Company enters into foreign currency contracts to economically hedge foreign currency remeasurement exposure related to certain balances denominated in currencies other than the functional currency of the Company or its international subsidiaries. Changes in fair value of derivative contracts not designated as hedging instruments are recognized in earnings. As of June 30, 2024 and December 31, 2023, the notional amount of foreign currency contracts was $290.3 million and $368.5 million, respectively.

The following table summarizes the effects of derivatives not designated as hedging instruments for the three and six months ended June 30, 2024 and 2023 (amounts in thousands):


		Gain/(loss) recognized in income
Derivatives not designated as hedging instruments		Three Months Ended June 30,				Six Months Ended June 30,
	Income statement account	2024		2023		2024		2023
Foreign currency contracts	Foreign exchange gain/(loss), net	$	726	$	(7,589)	$	826	$	(15,287)
Foreign currency contracts	Interest expense, net	117		631		309		1,153

7. Fair Value:

As defined by ASC Topic 820, "Fair Value Measurement and Disclosures" ("ASC 820"), fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. ASC 820 requires the consideration of different input levels in the determination of fair value, as follows:

•Level 1: Quoted prices in active markets for identical assets and liabilities.

•Level 2: Observable inputs other than Level 1 quoted prices, such as quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market.

•Level 3: Unobservable inputs that are supported by little or no market activity. Level 3 assets and liabilities include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation.

The level in the fair value hierarchy within which a fair value measurement in its entirety falls is based on the lowest level input that is significant to the fair value measurement in its entirety.

Financial Instruments Not Carried at Fair Value

As of June 30, 2024 and December 31, 2023, the carrying amounts and estimated fair values of financial instruments not carried at fair value were as follows (amounts in thousands):


	June 30, 2024				December 31, 2023
	Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value
Financial assets:
Cash and cash equivalents	$	118,865	$	118,865	$	112,528	$	112,528


Finance receivables, net	3,820,186		3,250,769		3,656,598		3,167,798
Financial liabilities:
Interest-bearing deposits	114,991		114,991		115,589		115,589
Revolving lines of credit	1,248,623		1,248,623		1,437,715		1,437,715
Term Loan (1)	435,000		435,000		442,500		442,500
Senior notes (1)	1,446,000		1,397,557		1,046,000		964,907

(1)Carrying amounts and estimated fair values do not include debt issuance costs.

The Company uses the following methods and assumptions to estimate the fair value of the above financial instruments:

Cash equivalents: Carrying amount approximates fair value due to the short-term nature of the instruments and the observable quoted prices for identical assets in active markets. Accordingly, the Company uses Level 1 inputs.

PRA Group, Inc.

Notes to Consolidated Financial Statements

Finance receivables, net: The Company estimates the fair value of these receivables using proprietary pricing models that the Company utilizes to make portfolio acquisition decisions. Accordingly, the Company's fair value estimates use Level 3 inputs as there is little observable market data available and management is required to use significant judgment in its estimates.

Interest-bearing deposits: Carrying amount approximates fair value due to the short-term nature of the deposits and the observable quoted prices for similar instruments in active markets. Accordingly, the Company uses Level 2 inputs for its fair value estimates.

Revolving lines of credit: Carrying amount approximates fair value due to the short-term nature of the interest rate periods and the observable quoted prices for similar instruments in active markets. Accordingly, the Company uses Level 2 inputs for its fair value estimate.

Term loan: Carrying amount approximates fair value due to the short-term nature of the interest rate periods and the observable quoted prices for similar instruments in active markets. Accordingly, the Company uses Level 2 inputs for its fair value estimate.

Senior Notes: Fair value estimates for the Senior Notes incorporate quoted market prices obtained from secondary market broker quotes, which were derived from a variety of inputs, including client orders, information from their pricing vendors, modeling software and actual trading prices when they occur. Accordingly, the Company uses Level 2 inputs for its fair value estimates.

Financial Instruments Carried at Fair Value

As of June 30, 2024 and December 31, 2023, financial instruments measured at fair value on a recurring basis were as follows (amounts in thousands):


	Fair Value Measurements as of June 30, 2024
	Level 1		Level 2		Level 3		Total
Assets:

Government securities	$	47,918	$	—	$	—	$	47,918


Derivative contracts (recorded in Other assets)	—		18,460		—		18,460
Liabilities:
Derivative contracts (recorded in Other liabilities)	—		5,885		—		5,885

	Fair Value Measurements as of December 31, 2023
	Level 1		Level 2		Level 3		Total
Assets:

Government securities	$	59,470	$	—	$	—	$	59,470


Derivative contracts (recorded in Other assets)	—		22,777		—		22,777
Liabilities:
Derivative contracts (recorded in Other liabilities)	—		20,403		—		20,403

The Company uses the following methods and assumptions to estimate the fair value of the above financial instruments:

Government securities: Fair value of the Company's investments in government securities is estimated using quoted market prices. Accordingly, the Company uses Level 1 inputs.

Derivative contracts: Fair value of derivative contracts is estimated using industry standard valuation models. These models project future cash flows and discount the future amounts to present value using market-based observable inputs, including interest rate curves and other factors. Accordingly, the Company uses Level 2 inputs for its fair value estimates.

PRA Group, Inc.

Notes to Consolidated Financial Statements

8. Accumulated Other Comprehensive Loss:

Reclassifications out of Accumulated other comprehensive loss for the three and six months ended June 30, 2024 and 2023, were as follows (amounts in thousands):


		Three Months Ended June 30,				Six Months Ended June 30,
Gain/(loss) on cash flow hedges	Income Statement account	2024		2023			2024		2023
Interest rate swaps	Interest expense, net	$	5,532	$	(6,670)		$	11,206	$	(12,168)
Income tax effect of item above (1)	Income tax expense/(benefit)	(1,378)		1,618			(2,790)		2,914
Total gain/(loss) on cash flow hedges		$	4,154	$	(5,052)		$	8,416	$	(9,254)

(1)Income tax effects are released from Accumulated other comprehensive loss contemporaneously with the related gross pretax amount.

Changes in Accumulated other comprehensive loss by component, after tax, for the three and six months ended June 30, 2024 and 2023, were as follows (amounts in thousands):


	Three Months Ended June 30,
	2024								2023
	Debt Securities		Cash		Currency		Accumulated		Debt Securities		Cash		Currency		Accumulated
	Available-for-sale		Flow Hedges		Translation Adjustments		Other Comp. Loss (1)		Available-for-sale		Flow Hedges		Translation Adjustments		Other Comp. Loss (1)
Balance as of beginning of period	$	111	$	9,405	$	(382,534)	$	(373,018)	$	(109)	$	22,973	$	(379,594)	$	(356,730)
Other comprehensive gain/(loss) before reclassifications	65		2,861		(7,563)		(4,637)		(80)		10,771		3,091		13,782
Reclassifications, net	—		(4,154)		—		(4,154)		—		(5,052)		—		(5,052)
Net current period other comprehensive gain/(loss)	65		(1,293)		(7,563)		(8,791)		(80)		5,719		3,091		8,730
Balance as of end of period	$	176	$	8,112	$	(390,097)	$	(381,809)	$	(189)	$	28,692	$	(376,503)	$	(348,000)

(1)Net of deferred taxes for unrealized (gains)/losses from cash flow hedges of $0.4 million and $(1.9) million for the three months ended June 30, 2024 and 2023, respectively.


	Six Months Ended June 30,
	2024								2023
	Debt Securities		Cash		Currency		Accumulated		Debt Securities		Cash		Currency		Accumulated
	Available-for-sale		Flow Hedges		Translation Adjustments		Other Comp. Loss (1)		Available-for-sale		Flow Hedges		Translation Adjustments		Other Comp. Loss (1)
Balance at beginning of period	$	65	$	6,597	$	(336,561)	$	(329,899)	$	(237)	$	27,804	$	(375,493)	$	(347,926)
Other comprehensive gain/(loss) before reclassifications	111		9,931		(53,536)		(43,494)		48		10,142		(1,010)		9,180
Reclassifications, net	—		(8,416)		—		(8,416)		—		(9,254)		—		(9,254)
Net current period other comprehensive gain/(loss)	111		1,515		(53,536)		(51,910)		48		888		(1,010)		(74)
Balance at end of period	$	176	$	8,112	$	(390,097)	$	(381,809)	$	(189)	$	28,692	$	(376,503)	$	(348,000)

(1)Net of deferred taxes for unrealized gains from cash flow hedges $(2.7) million and $(9.5) million for the six months ended June 30, 2024 and 2023, respectively.

PRA Group, Inc.

Notes to Consolidated Financial Statements

9. Earnings per Share:

Basic earnings per share ("EPS") are computed by dividing net income available to common stockholders of PRA Group, Inc. by weighted average common shares outstanding. Diluted EPS are computed using the same components as basic EPS, with the denominator adjusted for nonvested share awards, if dilutive. Share-based awards that are contingent upon the attainment of performance goals are included in the computation of diluted EPS if the effect is dilutive. The dilutive effect of nonvested shares is computed using the treasury stock method, which assumes any proceeds that could be obtained upon the vesting of nonvested shares would be used to purchase common shares at the average market price for the period.

The following tables provide a reconciliation between the computation of basic and diluted EPS for the three and six months ended June 30, 2024 and 2023 (amounts in thousands, except per share amounts):


	Three Months Ended June 30,
	2024					2023
	Net Income Attributable to PRA Group, Inc.		Weighted Average Common Shares	EPS		Net Loss Attributable to PRA Group, Inc.		Weighted Average Common Shares	EPS
Basic EPS	$	21,516	39,364	$	0.55	$	(3,804)	39,190	$	(0.10)
Dilutive effect of nonvested share awards			182	(0.01)				—	—

Diluted EPS	$	21,516	39,546	$	0.54	$	(3,804)	39,190	$	(0.10)

	Six Months Ended June 30,
	2024					2023
	Net Loss Attributable to PRA Group, Inc.		Weighted Average Common Shares	EPS		Net Income Attributable to PRA Group, Inc.		Weighted Average Common Shares	EPS
Basic EPS	$	24,991	39,319	$	0.64	$	(62,433)	39,111	$	(1.60)
Dilutive effect of nonvested share awards			178	(0.01)				—	—
Diluted EPS	$	24,991	39,497	$	0.63	$	(62,433)	39,111	$	(1.60)

10. Commitments and Contingencies:

Forward Flow Agreements:

The Company enters into forward flow agreements for the purchase of nonperforming loans. These agreements typically have terms ranging from six to 12 months, or they can be open-ended, and establish purchase prices and specific criteria for the accounts to be purchased. Some of the agreements establish a volume reference for the contract term in the form of a target or maximum, however, very few agreements establish a minimum contractual obligation, and many of the contracts contain early termination provisions allowing either party to cancel the agreements in accordance with a specified notice period. The amounts purchased are also dependent on actual delivery by the sellers, and while purchases under these agreements comprise a significant portion of the Company's overall purchases, as of June 30, 2024, the minimum purchase obligation under these forward flow agreements was not significant.

Litigation and Regulatory Matters:

The Company and its subsidiaries are from time-to-time subject to a variety of legal and regulatory claims, inquiries and proceedings and regulatory matters, most of which are incidental to the ordinary course of its business. The Company initiates lawsuits against customers and is occasionally countersued by them in such actions. Also, customers, either individually, as members of a class action, or through a governmental entity on behalf of customers, may initiate litigation against the Company in which they allege that the Company has violated a law in the process of collecting on an account. From time-to-time, other types of lawsuits are brought against the Company. Additionally, the Company receives subpoenas and other requests or demands for information from regulators or governmental authorities who are investigating the Company's debt collection activities.

The Company accrues for potential liability arising from legal proceedings and regulatory matters when it is probable that such liability has been incurred and the amount of the loss can be reasonably estimated. This determination is based upon currently available information for those proceedings in which the Company is involved, taking into account the Company's best estimate of such losses for those cases for which such estimates can be made. The Company's estimate involves significant judgment, given the varying stages of the proceedings (including the fact that many of them are currently in preliminary stages),

PRA Group, Inc.

Notes to Consolidated Financial Statements

the number of unresolved issues in many of the proceedings (including issues regarding class certification and the scope of many of the claims), and the related uncertainty of the potential outcomes of these proceedings. In making determinations of the likely outcome of pending litigation, the Company considers many factors, including, but not limited to, the nature of the claim, the Company's experience with similar types of claims, the jurisdiction in which the matter is filed, input from outside legal counsel, the likelihood of resolving the matter through alternative mechanisms, the matter's current status and the damages sought or demands made. Accordingly, the Company's estimate will change from time to time, and actual losses could exceed the current estimate.

In certain legal proceedings, the Company may have recourse to insurance or third-party contractual indemnities to cover all or portions of its litigation expenses, judgments, or settlements. Loss estimates and accruals for potential liability related to legal proceedings are typically exclusive of potential recoveries, if any, under the Company's insurance policies or third-party indemnities.

The Company believes that the estimate of the aggregate range of reasonably possible losses in excess of the amount accrued for its legal proceedings outstanding as of June 30, 2024, where the range of loss can be estimated, was not material. As of June 30, 2024, there were no material developments in the legal proceedings included in Note 14 to the Consolidated Financial Statements in the 2023 Form 10-K, and there were no new material legal proceedings during the three months ended June 30, 2024.

11. Recently Issued Accounting Standards:

Recently issued accounting standards not yet adopted:

In November 2023, the Financial Accounting Standards Board ("FASB") issued ASU 2023-07, "Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures" ("ASU 2023-07"), which, among other updates, requires enhanced disclosures about significant segment expenses regularly provided to the chief operating decision maker, as well as the aggregate amount of other segment items included in the reported measure of segment profit or loss. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023, and for interim periods within fiscal years beginning after December 15, 2024, and requires retrospective adoption. Early adoption is permitted.

In December 2023, the FASB issued ASU 2023-09, "Income Taxes (Topic 740): Improvements to Income Tax Disclosures" ("ASU 2023-09"), which requires enhanced annual disclosures with respect to the rate reconciliation and income taxes paid information. ASU 2023-09 is effective for fiscal years beginning after December 15, 2024, and may be adopted on a prospective or retrospective basis. Early adoption is permitted.

The Company is currently evaluating both ASU 2023-07 and ASU 2023-09 to determine the impacts on its disclosures.

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations

All references in this Quarterly Report on Form 10-Q ("Quarterly Report") to "PRA Group," "we," "our," "us," "the Company" or similar terms are to PRA Group, Inc. and its subsidiaries.

Forward-Looking Statements:

This Quarterly Report contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Statements other than statements of historical fact are forward-looking statements, including statements regarding cash collection trends, operating cost trends, liquidity and capital needs and other statements of expectations, beliefs, future plans, strategies and anticipated events or trends. Our results could differ materially from those expressed or implied by such forward-looking statements, or our forward-looking statements could be wrong, as a result of risks, uncertainties and assumptions, including the following:

•a deterioration in the economic or inflationary environment in the markets in which we operate;

•our ability to replace our portfolios of nonperforming loans with additional portfolios sufficient to operate efficiently and profitably and/or purchase nonperforming loans at appropriate prices;

•our ability to collect sufficient amounts on our nonperforming loans to fund our operations, including as a result of restrictions imposed by local, state, federal and international laws and regulations;

•a disruption or failure by any of our outsourcing or offshoring third party service providers to meet their obligations and our service level expectations;

•our ability to successfully implement our strategic and operational initiatives in our U.S. business;

•changes in accounting standards and their interpretations;

•the impact of a disease outbreak on the markets in which we operate and our ability to successfully manage the challenges associated with a disease outbreak, including epidemics, pandemics or similar widespread public health concerns;

•the occurrence of goodwill impairment charges;

•loss contingency accruals that are inadequate to cover actual losses;

•our ability to manage risks associated with our international operations;

•changes in local, state, federal or international laws or the interpretation of these laws, including tax, bankruptcy and collection laws;

•our ability to comply with existing and new regulations of the collection industry;

•changes in tax provisions or exposure to additional tax liabilities;

•investigations, reviews, or enforcement actions by governmental authorities, including the Consumer Financial Protection Bureau ("CFPB");

•our ability to comply with data privacy regulations such as the General Data Protection Regulation ("GDPR");

•adverse outcomes in pending litigation or administrative proceedings;

•our ability to retain, expand, renegotiate or replace our credit facilities and our ability to comply with the covenants under our financing arrangements;

•our ability to manage our capital and liquidity needs effectively, including as a result of changes in credit or capital markets or adverse changes in our credit ratings, whether due to concerns about our industry in general, the financial condition of our competitors, or other factors;

•changes in interest or exchange rates;

•default by, or failure of, one or more of our counterparty financial institutions;

•disruptions of business operations caused by cybersecurity incidents or the underperformance or failure of information technology infrastructure, networks or communication systems; and

•the "Risk Factors" in Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2023 ("2023 Form 10-K") and in other filings with the Securities and Exchange Commission.

You should assume that the information appearing in this Quarterly Report is accurate only as of the date it was issued. Our business, financial condition, results of operations and prospects may have changed since that date. The future events, developments or results described in, or implied by, this Quarterly Report could turn out to be materially different. Except as required by law, we assume no obligation to publicly update or revise our forward-looking statements after the date of this Quarterly Report and you should not expect us to do so.

Frequently Used Terms

We may use the following terminology throughout this Quarterly Report:

•"Buybacks" refers to purchase price refunded by the seller due to the return of ineligible nonperforming loan accounts.

•"Cash collections" refers to collections on our nonperforming loan portfolios.

•"Cash receipts" refers to cash collections on our nonperforming loan portfolios, fees and revenue recognized from our class action claims recovery services.

•"Changes in expected recoveries" refers to the differences of actual recoveries received when compared to expected recoveries and the net present value of changes in estimated remaining collections.

•"Core" accounts or portfolios refer to accounts or portfolios that are nonperforming loans and are not in an insolvent status upon acquisition. These accounts are aggregated separately from insolvency accounts.

•"Estimated remaining collections" or "ERC" refers to the sum of all future projected cash collections on our nonperforming loan portfolios.

•"Finance receivables" or "receivables" refers to the negative allowance for expected recoveries recorded on our balance sheet as an asset.

•"Insolvency" accounts or portfolios refer to accounts or portfolios of nonperforming loans that are in an insolvent status when we purchase them and, as such, are purchased as a pool of insolvent accounts. These accounts include Individual Voluntary Arrangements ("IVAs"), Trust Deeds in the UK, Consumer Proposals in Canada and bankruptcy accounts in the U.S., Canada, Germany and the UK.

•"Negative allowance" refers to the present value of cash flows expected to be collected on our finance receivables.

•"Portfolio acquisitions" refers to all nonperforming loan portfolios acquired as a result of a purchase or added as a result of a business acquisition.

•"Portfolio purchases" refers to all nonperforming loan portfolios purchased in the normal course of business and excludes those added as a result of business acquisitions.

•"Portfolio income" reflects revenue recorded due to the passage of time using the effective interest rate calculated based on the purchase price of nonperforming loan portfolios and estimated remaining collections.

•"Purchase price" refers to the cash paid to a seller to acquire nonperforming loans.

•"Purchase price multiple" refers to the total estimated collections on our nonperforming loan portfolios divided by purchase price.

•"Recoveries" refers to cash collections plus buybacks and other adjustments.

•"Total estimated collections" or "TEC" refers to actual cash collections plus estimated remaining collections on our nonperforming loan portfolios.

Executive Overview

We are a global financial and business services company with operations in the Americas, Europe and Australia. Our primary business is the purchase, collection and management of portfolios of nonperforming loans. We are headquartered in Norfolk, Virginia, and our shares of common stock are traded on the Nasdaq Global Select Market under the symbol "PRAA".


For the second quarter of 2024, we generated:						Year-to-date June 30, 2024, we generated:
•Total portfolio purchases of $379.4 million.						•Total portfolio purchases of $625.2 million.
•Total cash collections of $473.9 million.						•Total cash collections of $923.4 million.
•Cash efficiency ratio of 58.9%.						•Cash efficiency ratio of 58.4%.
•Diluted earnings per share of $0.54.						•Diluted earnings per share of $0.63.
•ERC of $6.8 billion as of June 30, 2024.

With continued focus on our strategic roadmap - optimizing investments, driving operational execution and managing expenses - we took another important step in demonstrating the turnaround of our U.S. business in the second quarter of 2024, delivering against our financial and operational targets for the year and positioning the Company for future growth.

Total portfolio purchases of $379.4 million during the quarter represented our third-highest quarterly level of purchases over the past five years. Cash collections increased 13.0% compared to the second quarter of 2023, reflecting higher recent purchasing levels and the positive impact of cash-generating initiatives in the U.S., as well as continued collections growth in our European business.

Looking ahead, we expect portfolio purchases to remain strong through the remainder of the year and cash collections to sustain the growth rate observed during the first half of 2024. We also expect that cash efficiency for the year will be approximately 60%, as our strategies driving operational improvements and effectiveness are partially offset by the investments in our legal collections channel.

Americas

In the U.S., we continued to capitalize on strong levels of portfolio supply, driven by higher industry credit card balances and rising delinquency and charge-off rates, with U.S. portfolio purchases reaching $206.8 million for the quarter. Although certain customer segments appear to be experiencing stress from high interest rates and inflation, we have seen significant growth in the number of committed payment plans from our customer base. In our U.S. call centers, we made significant enhancements to our operating processes during the quarter, and in the legal collections channel, we have leveraged our internal resources and expanded the use of external resources to generate incremental cash collections. To support increased buying in the U.S., we have expanded our call center staffing, focusing on offshoring initiatives to counter the expense impact, and more than 25% of collectors supporting our U.S. business are now based offshore. In Brazil, we have continued to leverage our partnerships in the market to invest in a significant amount of portfolios, realizing solid rates of return on our investments.

Europe

In Europe, strong supply in the spot market led to a record amount of second quarter purchases, spanning all of our major markets, and since Europe is primarily a spot-driven market, volumes are dependent on seller strategies and timing. Although the consumer environment in Europe reflects some of the same economic factors as the U.S., we are also experiencing some positive trends, with the proportion of paying customers remaining stable and larger payments in certain markets starting to show signs of improvement. We also just marked the 10-year anniversary of our acquisition of Aktiv Capital A.S. in 2014, which elevated the Company from a primarily U.S.-based organization to a global enterprise with a diverse European footprint.

Summary of Selected Financial Data


As of or for the period ended (in thousands, except per share, ratio, headcount data or where otherwise noted)	Second Quarter								Year-to-Date
	2024			2023			% Change		2024			2023			% Change
Income statement
Portfolio income	$	209,290		$	184,290		13.6	%	$	411,346		$	372,532		10.4	%

Changes in expected recoveries	73,320			21,136			246.9		124,994			(15,776)			892.3

Total operating expenses	195,007			163,675			19.1		384,197			352,789			8.9

Interest expense, net	55,353			43,022			28.7		107,631			81,305			32.4

Income tax expense/(benefit)	8,702			1,578			451.5		11,088			(17,105)			164.8

Net income/(loss) attributable to PRA Group	21,516			(3,804)			665.6		24,991			(62,433)			140.0

Common share data
Diluted earnings per share	$	0.54		$	(0.10)		640.0	%	$	0.63		$	(1.60)		139.4	%
Diluted average common shares outstanding	39,546			39,190			0.9		39,497			39,111			1.0
Common shares outstanding (period-end)	39,417			39,242			0.4
Portfolio volumes
Total portfolio purchases	$	379,369		$	327,759		15.7	%	$	625,186		$	557,984		12.0	%
Total cash collections	473,882			419,319			13.0		923,400			830,603			11.2
Estimated remaining collections (period-end)	6,802,246			5,903,770			15.2
Balance sheet (period-end)
Finance receivables, net	$	3,820,186		$	3,424,548		11.6	%
Borrowings	3,113,777			2,739,667			13.7
Total stockholders' equity - PRA Group, Inc.	1,145,463			1,165,525			(1.7)
Performance data and ratios
Cash efficiency ratio (1)	58.9		%	61.2		%	(3.8)	%	58.4		%	57.8		%	1.0	%
Net income/(loss) attributable to PRA Group (last 12 months)	$	3,945		$	(21,740)		118.1
Adjusted EBITDA (last 12 months) (2)	1,065,186			993,317			7.2


Return on average Total stockholders' equity - PRA Group (3)	7.6		%	(1.3)		%	684.6		4.4		%	(10.5)		%	141.9
Return on average tangible equity (4)	11.9		%	(2.0)		%	695.0		6.9		%	(16.5)		%	141.8
Credit facility availability (period-end)
Availability based on current ERC	$	741,927		$	332,491		123.1	%
Additional availability	706,614			1,116,113			(36.7)
Total availability	1,448,541			1,448,604			—
Headcount (period-end)
Full-time equivalents	3,158			3,145			0.4	%

(1)Calculated by dividing cash receipts less operating expenses by cash receipts.

(2)Adjusted earnings before interest, taxes, depreciation and amortization ("Adjusted EBITDA") is a non-GAAP financial measure. Refer to section "Non-GAAP Financial Measures" for a reconciliation of Net Income/(loss) attributable to PRA Group, the most directly comparable financial measure calculated and reported in accordance with GAAP, to Adjusted EBITDA.

(3)Calculated by dividing annualized net income income/(loss) attributable to PRA Group by average Total stockholders' equity - PRA Group for the period.

(4)Return on average tangible equity ("ROATE") is a non-GAAP financial measure. Average tangible equity ("ATE") is also a non-GAAP financial measure. Refer to section "Non-GAAP Financial Measures" for a reconciliation of Total stockholders' equity - PRA Group, the most directly comparable financial measure calculated and reported in accordance with GAAP, to ATE.

Results of Operations

Three and six months ended June 30, 2024 ("Q2 2024" and "2024 year-to-date") compared to three and six months ended June 30, 2023 ("Q2 2023" and "2023 year-to-date").

Cash Collections

Cash collections were as follows for the periods indicated (amounts in thousands):


	Second Quarter								Year-to-Date
	2024		2023		$ Change		% Change		2024		2023		$ Change		% Change
Americas and Australia Core	$	263,828	$	220,886	$	42,942	19.4	%	$	520,689	$	448,846	$	71,843	16.0	%
Americas Insolvency	26,971		26,384		587		2.2		52,179		52,135		44		0.1
Europe Core	156,739		149,324		7,415		5.0		302,672		283,329		19,343		6.8
Europe Insolvency	26,344		22,725		3,619		15.9		47,860		46,293		1,567		3.4
Cash collections	$	473,882	$	419,319	$	54,563	13.0	%	$	923,400	$	830,603	$	92,797	11.2	%
Cash collections adjusted (1)	$	473,882	$	418,272	$	55,610	13.3	%	$	923,400	$	837,316	$	86,084	10.3	%

(1)Cash collections adjusted refers to prior year period foreign currency cash collections remeasured at average U.S. dollar exchange rates for the current year period.

Cash collections were $473.9 million in Q2 2024, an increase of $54.6 million, or 13.0%, compared to $419.3 million in Q2 2023. The increase was primarily due to an increase in U.S. Core cash collections of $42.4 million, mainly due to the impact of higher recent purchasing levels and our cash-generating initiatives, particularly in the legal collections channel. Also contributing to the increase were increased cash collections in Europe of $11.0 million, primarily due to higher recent purchasing levels.

Year-to-date cash collections increased by $92.8 million, or 11.2%, reflecting an increase of $63.6 million in U.S. Core cash collections and higher cash collections in Europe and Brazil of $20.9 million and $6.6 million, respectively. The increase in cash collections was primarily due to the same factors impacting the second quarter comparison as described above.

Portfolio Revenue

Total portfolio revenue was as follows for the periods indicated (amounts in thousands):


	Second Quarter								Year-to-Date
	2024		2023		$ Change		% Change		2024		2023		$ Change		% Change
Portfolio income	$	209,290	$	184,290	$	25,000	13.6	%	$	411,346	$	372,532	$	38,814	10.4	%
Changes in expected recoveries	73,320		21,136		52,184		246.9		124,994		(15,776)		140,770		892.3
Total portfolio revenue	$	282,610	$	205,426	$	77,184	37.6	%	$	536,340	$	356,756	$	179,584	50.3	%

Total portfolio revenue was $282.6 million in Q2 2024, an increase of $77.2 million, or 37.6%, compared to $205.4 million in Q2 2023. The increase was primarily due to an increase of $52.2 million in changes in expected recoveries, driven mainly by cash collections overperformance in the U.S., driven in large part by our cash-generating initiatives, including higher legal collections, as well as cash collections overperformance in Europe. Furthermore, in the U.S. and Europe, based primarily on overperformance in recent periods, there was a net increase to the ERC of certain pools in Q2 2024 compared to a net decrease in Q2 2023. The increase of $25.0 million in portfolio income was primarily due to the impact of higher purchasing and improved pricing in the U.S. and Europe beginning in 2023.

Year-to-date portfolio revenue increased by $179.6 million, or 50.3%, primarily due to an increase of $140.8 million in changes in expected recoveries, driven mainly by a net increase to the ERC of certain pools in the U.S., Europe and Brazil compared to a net decrease in the prior year period, as well as cash collections overperformance in the U.S. and Europe. The $38.8 million increase in portfolio income was primarily due to the impact of higher purchasing and improved pricing in the U.S. and Europe beginning in 2023.

Operating Expenses

Total operating expenses were as follows for the periods indicated (amounts in thousands):


	Second Quarter								Year-to-Date
	2024		2023		$ Change		% Change		2024		2023		$ Change		% Change
Compensation and employee services	$	74,241	$	65,788	$	8,453	12.8	%	$	147,838	$	148,191	$	(353)	(0.2)	%
Legal collection fees	13,762		9,551		4,211		44.1		25,874		18,389		7,485		40.7
Legal collection costs	35,274		21,522		13,752		63.9		61,965		45,467		16,498		36.3
Agency fees	21,008		17,677		3,331		18.8		40,731		35,055		5,676		16.2
Outside fees and services	18,124		18,262		(138)		(0.8)		43,174		43,206		(32)		(0.1)
Communication	11,577		10,117		1,460		14.4		24,155		20,644		3,511		17.0
Rent and occupancy	4,136		4,319		(183)		(4.2)		8,280		8,767		(487)		(5.6)
Depreciation and amortization	2,637		3,482		(845)		(24.3)		5,357		7,071		(1,714)		(24.2)

Other operating expenses	14,248		12,957		1,291		10.0		26,823		25,999		824		3.2
Total operating expenses	$	195,007	$	163,675	$	31,332	19.1	%	$	384,197	$	352,789	$	31,408	8.9	%

Compensation and employee services

Q2 2024 compensation and employee services expense increased $8.4 million, or 12.8%, mainly reflecting lower compensation accruals in Q2 2023. The Q2 2024 expense is comparable to the two most recent quarters and reflects our leveraging of third parties and offshore call centers to help offset the costs associated with a significant increase in account volumes and customer contacts. The 2024 year-to-date expense was largely consistent with the prior year period, decreasing by $0.4 million.

Legal collection fees

Legal collection fees represent contingent fees incurred for cash collections generated by our third-party attorney network. Q2 2024 fees increased $4.2 million, or 44.1%, mainly reflecting higher external legal collections within our U.S. Core portfolio. Increased external legal collections in the U.S. were also the primary driver of the $7.5 million, or 40.7%, increase for the year-to-date period.

Legal collection costs

Legal collection costs consist primarily of costs paid to courts where a lawsuit is filed for the purpose of attempting to collect on an account. Q2 2024 costs increased $13.8 million, or 63.9%, primarily due to increased activity in our U.S. legal collections channel, as well as the expansion of legal collection activities in Europe. The growth in legal collections activity also drove the $16.5 million, or 36.3%, increase for the year-to-date period.

Agency fees

Agency fees primarily represent third-party collection fees. Q2 2024 fees increased $3.3 million, or 18.8%, mainly reflecting higher fees paid on collections in Brazil. Collection fees in Brazil were also the primary driver of the $5.7 million, or 16.2%, increase for the year-to-date period.

Communication

Communication expense relates mainly to correspondence, network and calling costs associated with our cash-generating initiatives. An expansion in account volumes drove both the Q2 2024 increase of $1.5 million, or 14.4%, and the $3.5 million, or 17.0%, increase for the year-to-date period.

Interest Expense, Net

Interest expense, net was as follows for the periods indicated (amounts in thousands):


	Second Quarter								Year-to-Date
	2024		2023		$ Change		% Change		2024		2023		$ Change		% Change
Interest on debt obligations and unused line fees	$	33,180	$	25,154	$	8,026	31.9	%	$	67,135	$	46,978	$	20,157	42.9	%
Interest on senior notes	22,246		18,165		4,081		22.5		40,448		33,238		7,210		21.7
Coupon interest on convertible notes	—		2,013		(2,013)		(100.0)		—		5,032		(5,032)		(100.0)
Amortization of loan fees and other loan costs	2,331		2,384		(53)		(2.2)		4,531		4,825		(294)		(6.1)
Interest income	(2,404)		(4,694)		2,290		(48.8)		(4,483)		(8,768)		4,285		(48.9)
Interest expense, net	$	55,353	$	43,022	$	12,331	28.7	%	$	107,631	$	81,305	$	26,326	32.4	%

Interest expense, net was $55.4 million in Q2 2024, an increase of $12.4 million, or 28.8%, compared to $43.0 million in Q2 2023. Interest expense, net increased by $26.3 million, or 32.3%, for the year-to-date period. The main drivers of the increases in both the second quarter and year-to-date periods were higher average debt balances and increased interest rates.

Income Tax Expense/(Benefit)

Income tax expense was $8.7 million in Q2 2024 compared to $1.6 million in Q2 2023. In Q2 2024, our effective tax rate was 25.7% compared to 57.6% in Q2 2023. Year-to-date income tax expense was $11.1 million in 2024 compared to a tax benefit of $17.1 million in the prior year period. The 2024 year-to-date effective tax rate was 23.1% compared to an effective tax benefit rate of 24.5% in the prior year period. Higher income before taxes drove increased income tax expense in both the second quarter and year-to-date periods, and the effective tax rate comparison was impacted by higher income before taxes in the current year periods, as well as changes in the mix of income from different taxing jurisdictions and the timing and amount of discrete items.

Balance Sheet

Finance receivables, net

Finance receivables, net were $3.8 billion as of June 30, 2024, an increase of $163.6 million, or 4.5%, compared to $3.7 billion as of December 31, 2023. Portfolio acquisitions of $625.2 million and changes in expected recoveries of $125.0 million were partially offset by recoveries applied to the negative allowance of $520.9 million.

Compared to June 30, 2023, finance receivables, net increased by $395.6 million, resulting from portfolio acquisitions of $1.2 billion and changes in expected recoveries of $169.9 million, partially offset by recoveries applied to the negative allowance of $974.0 million.

Borrowings

Borrowings were $3.1 billion as of June 30, 2024, an increase of $199.5 million, or 6.8%, compared to $2.9 billion as of December 31, 2023. Net proceeds of $395.9 million from the issuance of our Senior Notes due 2030 ("2030 Notes") were partially offset by a net reduction of $189.1 million in the amount drawn under our revolving credit facilities.

Compared to June 30, 2023, borrowings increased by $374.1 million. This was primarily due to net proceeds of $395.9 million from the issuance of our 2030 Notes, partially offset by a net reduction of $13.7 million in the amount drawn under our revolving credit facilities.

Supplemental Performance Data

Finance Receivables Portfolio Performance

We purchase portfolios of nonperforming loans from a variety of credit originators, or acquire portfolios through strategic acquisitions, and segregate them into two main portfolio segments: Core or Insolvency, based on the status of the account upon acquisition. In addition, the accounts are segregated into geographical regions based upon where the account was acquired. Ultimately, accounts are aggregated into annual pools based on portfolio segment, geography and year of acquisition. Portfolios of accounts that were in an insolvency status at the time of acquisition are represented in the Insolvency tables below. All other acquisitions of portfolios of accounts are included in our Core portfolio tables as represented below. Once an account is initially segregated, it is not later transferred from an Insolvency pool to a Core pool, or vice versa, and the account continues to be accounted for as originally segregated regardless of any future changes in operational status. Specifically, if a Core account files for bankruptcy or insolvency protection after acquisition, we adjust our collection practices to comply with any respective bankruptcy or insolvency rules or policies; however, for accounting purposes, the account remains in the Core pool. In the event an Insolvency account is dismissed from its bankruptcy or insolvency status whether voluntarily or involuntarily, we are typically free to pursue alternative collection activities; however, the account remains in the Insolvency pool.

The purchase price multiple represents our estimate of total cash collections over the original purchase price of the portfolio. Purchase price multiples can vary over time due to a variety of factors, including pricing competition, supply levels, paper type, age of the accounts acquired, mix of portfolios purchased, costs to collect, expected returns and changes in operational efficiency. For example, increased pricing due to elevated levels of competition or supply constraints negatively impacts purchase price multiples as we pay more to buy similar portfolios of nonperforming loans.

Further, there is an inverse relationship between the price we pay for a portfolio, the purchase price multiple and the effective interest rate of the pool. When we pay more for a portfolio, the purchase price multiple and effective interest rates are generally lower. The opposite tends to occur when we pay less for a portfolio. Certain types of accounts have lower collection costs, and we generally pay more for these types of accounts, resulting in a lower purchase price multiple but similar net income margins when compared with other portfolio purchases. Within a given portfolio type, when lower purchase price multiples are the result of more competitive pricing, this generally leads to lower profitability. As portfolio pricing becomes more favorable, our profitability will tend to increase. Profitability within given Core portfolio types may also be impacted by the age and quality of the accounts, which impact the cost to collect those accounts. Fresher accounts, for example, typically carry lower associated collection costs, while older accounts and lower balance accounts typically carry higher costs and, as a result, require higher purchase price multiples to achieve the same net profitability as fresher paper.

Revenue recognition is driven by estimates of the amount and timing of future cash collections. We record new portfolio acquisitions at the purchase price, which reflects the amount we expect to collect discounted at an effective interest rate. During the year of acquisition, portfolios are aggregated into annual pools, and the blended effective interest rate will change to reflect new buying and new cash flow estimates until the end of the year. At that time, the purchase price amount is fixed at the aggregated amounts paid to acquire the portfolio, the effective interest rate is fixed at the amount we expect to collect, discounted at the rate to equate purchase price to the recovery estimate, and the currency rates are fixed for purposes of comparability in future periods. Depending on the level of performance and expected future impacts from our operations, we may update ERC and TEC levels based on the results of our cash forecasting with a correlating adjustment to the purchase price multiple. We follow an established process to evaluate ERC, and we typically do not adjust our ERC and TEC until we gain sufficient collection experience with a pool of accounts. Over time, our TEC has often increased as pools have aged resulting in the ratio of TEC to purchase price for any given year of buying to gradually increase.

The numbers presented in the following tables represent gross cash collections and do not reflect any costs to collect; therefore, they may not represent relative profitability. Due to all of the factors described above, readers should be cautious when making comparisons of purchase price multiples among periods and between types of categories of portfolio segments and related geographies.


Purchase Price Multiples as of June 30, 2024 Amounts in thousands
Purchase Period	Purchase Price (1)(2)		Total Estimated Collections (3)		Estimated Remaining Collections (4)		Current Purchase Price Multiple	Original Purchase Price Multiple (5)
Americas and Australia Core
1996-2013	$	1,932,722	$	5,745,296	$	54,130	297%	233%
2014	404,117		893,611		28,903		221%	204%
2015	443,114		912,525		39,549		206%	205%
2016	455,767		1,088,320		60,856		239%	201%
2017	532,851		1,209,023		92,474		227%	193%
2018	653,975		1,508,340		134,993		231%	202%
2019	581,476		1,302,954		143,944		224%	206%
2020	435,668		952,248		165,787		219%	213%
2021	435,846		740,020		286,888		170%	191%
2022	406,082		707,943		364,784		174%	179%
2023	622,583		1,224,773		948,003		197%	197%
2024	373,421		787,310		759,217		211%	211%
Subtotal	7,277,622		17,072,363		3,079,528
Americas Insolvency
1996-2013	1,266,056		2,503,066		26		198%	159%
2014	148,420		218,933		46		148%	124%
2015	63,170		88,083		35		139%	125%
2016	91,442		118,282		232		129%	123%
2017	275,257		358,452		1,185		130%	125%
2018	97,879		136,147		942		139%	127%
2019	123,077		168,485		7,765		137%	128%
2020	62,130		91,590		20,018		147%	136%
2021	55,187		74,273		26,054		135%	136%
2022	33,442		47,143		29,305		141%	139%
2023	91,282		120,038		97,797		132%	135%
2024	48,783		71,770		68,932		147%	147%
Subtotal	2,356,125		3,996,262		252,337
Total Americas and Australia	9,633,747		21,068,625		3,331,865
Europe Core
2012-2013	40,742		72,662		1		178%	153%
2014	773,811		2,564,807		415,481		331%	208%
2015	411,340		755,061		134,415		184%	160%
2016	333,090		579,777		156,278		174%	167%
2017	252,174		369,070		101,373		146%	144%
2018	341,775		557,913		185,378		163%	148%
2019	518,610		848,086		321,430		164%	152%
2020	324,119		568,114		237,561		175%	172%
2021	412,411		701,265		387,655		170%	170%
2022	359,447		584,036		440,058		162%	162%
2023	410,593		692,794		574,106		169%	169%
2024	170,988		312,073		304,681		183%	183%
Subtotal	4,349,100		8,605,658		3,258,417
Europe Insolvency
2014	10,876		18,979		—		175%	129%
2015	18,973		29,381		—		155%	139%
2016	39,338		57,841		617		147%	130%
2017	39,235		51,992		1,116		133%	128%
2018	44,908		52,649		2,887		117%	123%
2019	77,218		113,418		14,448		147%	130%
2020	105,440		157,743		29,880		150%	129%
2021	53,230		73,783		26,655		139%	134%
2022	44,604		61,840		39,949		139%	137%
2023	46,558		64,255		53,764		138%	138%
2024	30,994		45,761		42,648		147%	147%
Subtotal	511,374		727,642		211,964
Total Europe	4,860,474		9,333,300		3,470,381
Total PRA Group	$	14,494,221	$	30,401,925	$	6,802,246

(1)Includes the acquisition date finance receivables portfolios that were acquired through our business acquisitions.

(2)Non-U.S. amounts are presented at the exchange rate at the end of the year in which the portfolio was purchased. In addition, any purchase price adjustments that occur throughout the life of the portfolio are presented at the year-end exchange rate for the respective year of purchase.

(3)Non-U.S. amounts are presented at the year-end exchange rate for the respective year of purchase.

(4)Non-U.S. amounts are presented at the June 30, 2024 exchange rate.

(5)The original purchase price multiple represents the purchase price multiple at the end of the year of acquisition.


Portfolio Financial Information (1)
Amounts in thousands
	June 30, 2024 (year-to-date)								As of June 30, 2024
Purchase Period	Cash Collections (2)		Portfolio Income (2)		Changes in Expected Recoveries (2)		Total Portfolio Revenue (2)		Net Finance Receivables (3)
Americas and Australia Core
1996-2013	$	18,065	$	7,042	$	11,887	$	18,929	$	16,523
2014	7,024		2,805		4,887		7,692		11,018
2015	8,806		3,405		7,303		10,708		16,993
2016	12,623		6,530		5,537		12,067		21,359
2017	20,755		9,295		6,625		15,920		38,305
2018	41,881		14,656		17,007		31,663		73,826
2019	43,863		17,389		7,800		25,189		80,381
2020	50,041		19,482		2,557		22,039		92,936
2021	56,615		27,707		(5,049)		22,658		152,803
2022	82,963		34,964		(3,612)		31,352		221,981
2023	149,967		87,582		13,175		100,757		531,229
2024	28,086		22,132		6,431		28,563		373,386
Subtotal	520,689		252,989		74,548		327,537		1,630,740
Americas Insolvency
1996-2013	518		65		454		519		—
2014	170		52		122		174		—
2015	112		19		74		93		20
2016	317		22		269		291		201
2017	1,548		104		1,493		1,597		1,060
2018	1,613		73		570		643		886
2019	10,306		663		(212)		451		7,445
2020	9,106		1,419		889		2,308		18,223
2021	8,214		1,670		501		2,171		22,789
2022	5,489		1,637		336		1,973		24,327
2023	11,945		5,781		(790)		4,991		76,235
2024	2,841		1,912		294		2,206		47,843
Subtotal	52,179		13,417		4,000		17,417		199,029
Total Americas and Australia	572,868		266,406		78,548		344,954		1,829,769
Europe Core
2012-2013	525		—		525		525		—
2014	50,594		35,965		13,941		49,906		97,962
2015	15,663		6,867		4,052		10,919		66,674
2016	13,878		6,576		2,459		9,035		88,195
2017	9,368		3,410		1,057		4,467		67,454
2018	19,334		6,884		3,837		10,721		118,792
2019	34,697		11,337		5,331		16,668		216,535
2020	25,522		9,654		2,912		12,566		146,420
2021	34,155		14,494		3,181		17,675		235,125
2022	39,130		15,455		755		16,210		276,388
2023	52,395		22,109		910		23,019		338,599
2024	7,411		2,770		1,803		4,573		167,839
Subtotal	302,672		135,521		40,763		176,284		1,819,983
Europe Insolvency
2014	86		—		86		86		—
2015	99		2		70		72		—
2016	468		64		166		230		184
2017	874		73		(5)		68		928
2018	1,919		155		(14)		141		2,599
2019	7,495		782		1,100		1,882		12,648
2020	13,446		1,559		1,011		2,570		27,211
2021	7,542		1,420		910		2,330		23,263
2022	7,167		1,984		915		2,899		32,264
2023	5,656		2,578		50		2,628		41,559
2024	3,108		802		1,394		2,196		29,778
Subtotal	47,860		9,419		5,683		15,102		170,434
Total Europe	350,532		144,940		46,446		191,386		1,990,417
Total PRA Group	$	923,400	$	411,346	$	124,994	$	536,340	$	3,820,186

(1) Includes the nonperforming loan portfolios that were acquired through our business acquisitions.

(2)Non-U.S. amounts are presented using the average exchange rates during the current reporting period.

(3)Non-U.S. amounts are presented at the June 30, 2024 exchange rate.


Cash Collections by Year, By Year of Purchase (1) as of June 30, 2024 Amounts in millions
			Cash Collections
Purchase Period	Purchase Price (2)(3)		1996-2013		2014		2015		2016		2017		2018		2019		2020		2021		2022		2023		2024		Total
Americas and Australia Core
1996-2013	$	1,932.7	$	3,618.9	$	660.3	$	474.4	$	299.7	$	197.0	$	140.3	$	99.7	$	64.7	$	46.5	$	36.0	$	28.4	$	18.1	$	5,684.0
2014	404.1		—		92.7		253.4		170.3		114.2		82.2		55.3		31.9		22.3		15.0		11.8		7.0		856.1
2015	443.1		—		—		117.0		228.4		185.9		126.6		83.6		57.2		34.9		19.5		14.1		8.8		876.0
2016	455.8		—		—		—		138.7		256.5		194.6		140.6		105.9		74.2		38.4		24.9		12.6		986.4
2017	532.9		—		—		—		—		107.3		278.7		256.5		192.5		130.0		76.3		43.8		20.8		1,105.9
2018	654.0		—		—		—		—		—		122.7		361.9		337.7		239.9		146.1		92.9		41.9		1,343.1
2019	581.5		—		—		—		—		—		—		143.8		349.0		289.8		177.7		110.3		43.9		1,114.5
2020	435.7		—		—		—		—		—		—		—		132.9		284.3		192.0		125.8		50.0		785.0
2021	435.8		—		—		—		—		—		—		—		—		85.0		177.3		136.8		56.6		455.7
2022	406.1		—		—		—		—		—		—		—		—		—		67.7		195.4		83.0		346.1
2023	622.5		—		—		—		—		—		—		—		—		—		—		108.5		150.0		258.5
2024	373.4		—		—		—		—		—		—		—		—		—		—		—		28.0		28.0
Subtotal	7,277.6		3,618.9		753.0		844.8		837.1		860.9		945.1		1,141.4		1,271.8		1,206.9		946.0		892.7		520.7		13,839.3
Americas Insolvency
1996-2013	1,266.1		1,491.4		421.4		289.9		168.7		85.5		30.3		6.8		3.6		2.2		1.6		1.1		0.5		2,503.0
2014	148.4		—		37.0		50.9		44.3		37.4		28.8		15.8		2.2		1.1		0.7		0.4		0.2		218.8
2015	63.2		—		—		3.4		17.9		20.1		19.8		16.7		7.9		1.3		0.6		0.3		0.1		88.1
2016	91.4		—		—		—		18.9		30.4		25.0		19.9		14.4		7.4		1.8		0.9		0.3		119.0
2017	275.3		—		—		—		—		49.1		97.3		80.9		58.8		44.0		20.8		4.9		1.5		357.3
2018	97.9		—		—		—		—		—		6.7		27.4		30.5		31.6		24.6		12.7		1.6		135.1
2019	123.1		—		—		—		—		—		—		13.4		31.4		39.1		37.8		28.7		10.3		160.7
2020	62.1		—		—		—		—		—		—		—		6.5		16.1		20.4		19.5		9.1		71.6
2021	55.2		—		—		—		—		—		—		—		—		4.6		17.9		17.5		8.2		48.2
2022	33.4		—		—		—		—		—		—		—		—		—		3.2		9.2		5.5		17.9
2023	91.2		—		—		—		—		—		—		—		—		—		—		9.0		11.9		20.9
2024	48.8		—		—		—		—		—		—		—		—		—		—		—		2.9		2.9
Subtotal	2,356.1		1,491.4		458.4		344.2		249.8		222.5		207.9		180.9		155.3		147.4		129.4		104.2		52.1		3,743.5
Total Americas and Australia	9,633.7		5,110.3		1,211.4		1,189.0		1,086.9		1,083.4		1,153.0		1,322.3		1,427.1		1,354.3		1,075.4		996.9		572.8		17,582.8
Europe Core
2012-2013	40.7		27.7		14.2		5.5		3.5		3.3		3.3		2.4		1.9		1.8		1.4		1.0		0.5		66.5
2014	773.8		—		153.2		292.0		246.4		220.8		206.3		172.9		149.8		149.2		122.2		107.6		50.6		1,871.0
2015	411.3		—		—		45.8		100.3		86.2		80.9		66.1		54.3		51.4		40.7		33.8		15.7		575.2
2016	333.1		—		—		—		40.4		78.9		72.6		58.0		48.3		46.7		36.9		29.7		13.9		425.4
2017	252.2		—		—		—		—		17.9		56.0		44.1		36.1		34.8		25.2		20.2		9.4		243.7
2018	341.8		—		—		—		—		—		24.3		88.7		71.3		69.1		50.7		41.6		19.3		365.0
2019	518.6		—		—		—		—		—		—		48.0		125.7		121.4		89.8		75.1		34.7		494.7
2020	324.1		—		—		—		—		—		—		—		32.3		91.7		69.0		56.1		25.5		274.6
2021	412.4		—		—		—		—		—		—		—		—		48.5		89.9		73.0		34.2		245.6
2022	359.4		—		—		—		—		—		—		—		—		—		33.9		83.8		39.1		156.8
2023	410.6		—		—		—		—		—		—		—		—		—		—		50.2		52.4		102.6
2024	171.1		—		—		—		—		—		—		—		—		—		—		—		7.4		7.4
Subtotal	4,349.1		27.7		167.4		343.3		390.6		407.1		443.4		480.2		519.7		614.6		559.7		572.1		302.7		4,828.5
Europe Insolvency
2014	10.9		—		—		4.3		3.9		3.2		2.6		1.5		0.8		0.3		0.2		0.2		0.1		17.1
2015	19.0		—		—		3.0		4.4		5.0		4.8		3.9		2.9		1.6		0.6		0.4		0.1		26.7
2016	39.3		—		—		—		6.2		12.7		12.9		10.7		7.9		6.0		2.7		1.3		0.5		60.9
2017	39.2		—		—		—		—		1.2		7.9		9.2		9.8		9.4		6.5		3.8		0.9		48.7
2018	44.9		—		—		—		—		—		0.6		8.4		10.3		11.7		9.8		7.2		1.9		49.9
2019	77.2		—		—		—		—		—		—		5.0		21.1		23.9		21.0		17.5		7.5		96.0
2020	105.4		—		—		—		—		—		—		—		6.0		34.6		34.1		29.7		13.4		117.8
2021	53.2		—		—		—		—		—		—		—		—		5.5		14.4		14.7		7.5		42.1
2022	44.6		—		—		—		—		—		—		—		—		—		4.5		12.4		7.2		24.1
2023	46.7		—		—		—		—		—		—		—		—		—		—		4.2		5.7		9.9
2024	31.0		—		—		—		—		—		—		—		—		—		—		—		3.1		3.1
Subtotal	511.4		—		—		7.3		14.5		22.1		28.8		38.7		58.8		93.0		93.8		91.4		47.9		496.3
Total Europe	4,860.5		27.7		167.4		350.6		405.1		429.2		472.2		518.9		578.5		707.6		653.5		663.5		350.6		5,324.8
Total PRA Group	$	14,494.2	$	5,138.0	$	1,378.8	$	1,539.6	$	1,492.0	$	1,512.6	$	1,625.2	$	1,841.2	$	2,005.6	$	2,061.9	$	1,728.9	$	1,660.4	$	923.4	$	22,907.6

(1)Non-U.S. amounts are presented using the average exchange rates during the cash collections period.

(2)Includes the acquisition date finance receivables portfolios acquired through our business acquisitions.

(3)Non-U.S. amounts are presented at the exchange rate at the end of the year in which the portfolio was purchased. In addition, any purchase price adjustments that occur throughout the life of the pool are presented at the year-end exchange rate for the respective year of purchase.

Estimated Remaining Collections

The following chart shows our ERC of $6.8 billion as of June 30, 2024 by geography (amounts in millions).

The following table displays our ERC by geography, year and account type for the 12 months ending June 30, for each year presented (amounts in thousands):


	ERC By Geography, Year and Account Type
	Americas and Australia Core		Americas Insolvency		Europe Core		Europe Insolvency		Total
2025	$	928,042	$	94,770	$	524,121	$	76,175	$	1,623,108
2026	700,432		69,026		439,694		56,203		1,265,355
2027	455,416		47,272		367,523		37,434		907,645
2028	313,073		28,358		313,135		22,784		677,350
2029	215,407		11,485		268,778		11,617		507,287
2030	149,570		1,399		231,553		4,186		386,708
2031	103,206		27		200,387		1,360		304,980
2032	70,414		—		174,159		738		245,311
2033	47,987		—		151,829		526		200,342
2034	32,674		—		132,778		354		165,806
Thereafter	63,307		—		454,460		587		518,354
Total ERC	$	3,079,528	$	252,337	$	3,258,417	$	211,964	$	6,802,246

Cash Collections

The following table displays our cash collections by geography and account type for the periods indicated (amounts in thousands):


	Cash Collections by Geography and Account Type
	Second Quarter						Year-to-Date
	2024			2023				2024			2023
Americas and Australia Core	$	263,828	55.6%	$	220,886	52.7%		$	520,689	56.3%	$	448,846	54.0%
Americas Insolvency	26,971		5.7	26,384		6.3		52,179		5.7	52,135		6.3
Europe Core	156,739		33.1	149,324		35.6		302,672		32.8	283,329		34.1
Europe Insolvency	26,344		5.6	22,725		5.4		47,860		5.2	46,293		5.6
Total cash collections	$	473,882	100%	$	419,319	100%		$	923,400	100%	$	830,603	100%

The following table displays our Core cash collections by geography and source for the periods indicated (amounts in thousands):


	Core Cash Collections by Geography and Source
	Second Quarter							Year-to-Date
	2024				2023				2024			2023
Americas and Australia
Call center and other	$	149,693	56.7	%	$	138,507	62.7%		$	304,147	58.4%	$	283,105	63.1%
Legal	114,135		43.3		82,379		37.3		216,542		41.6	165,741		36.9
Core cash collections	$	263,828	100%		$	220,886	100%		$	520,689	100%	$	448,846	100%

Europe
Call center and other	$	94,784	60.5	%	$	92,676	62.1%		$	188,007	62.1%	$	184,493	65.1%
Legal	61,955		39.5		56,648		37.9		114,665		37.9	98,836		34.9
Core cash collections	$	156,739	100%		$	149,324	100%		$	302,672	100%	$	283,329	100%

Total Company
Call center and other	$	244,477	58.1	%	$	231,183	62.4%		$	492,154	59.8%	$	467,598	63.9%
Legal	176,090		41.9		139,027		37.6		331,207		40.2	264,577		36.1
Total Core cash collections	$	420,567	100%		$	370,210	100%		$	823,361	100%	$	732,175	100%

Seasonality

Customer payment patterns in all of the countries in which we operate can be affected by seasonal employment trends, income tax refunds, and holiday spending habits.

Portfolio Acquisitions

The following table displays our portfolio acquisitions by geography and account type for the periods indicated (amounts in thousands):


	Portfolio Acquisitions by Geography and Account Type
	Second Quarter						Year-to-Date
	2024			2023				2024			2023
Americas and Australia Core	$	198,761	52.4%	$	171,440	52.4%		$	373,421	59.7%	$	288,307	51.7%
Americas Insolvency	26,627		7.0	12,189		3.7		48,783		7.8	27,890		5.0
Europe Core	127,991		33.7	136,834		41.7		171,988		27.5	227,288		40.7
Europe Insolvency	25,990		6.9	7,296		2.2		30,994		5.0	14,499		2.6
Total portfolio acquisitions	$	379,369	100%	$	327,759	100%		$	625,186	100%	$	557,984	100%

Portfolio Acquisitions by Major Asset Type and Delinquency Category (U.S. Only)

The following tables categorize our U.S. portfolio acquisitions by major asset type and delinquency category for the periods indicated (amounts in thousands):


	U.S. Portfolio Acquisitions by Major Asset Type
	Second Quarter						Year-to-Date
	2024			2023				2024			2023
Major Credit Cards	$	67,505	32.6%	$	41,605	28.5%		$	126,563	32.1%	$	54,839	21.5%
Private Label Credit Cards	117,612		56.9	76,306		52.4		227,499		57.7	142,958		56.0
Consumer Finance	4,292		2.1	26,809		18.4		10,539		2.7	54,860		21.5
Auto Related	17,381		8.4	1,012		0.7		29,450		7.5	2,493		1.0
Total	$	206,790	100%	$	145,732	100%		$	394,051	100%	$	255,150	100%


	U.S. Portfolio Acquisitions by Delinquency Category
	Second Quarter						Year-to-Date
	2024			2023				2024			2023
Fresh (1)	$	111,786	62.0%	$	89,767	67.2%		$	216,290	62.6%	$	159,820	70.3%
Primary (2)	2,684		1.5	5,378		4.0		5,185		1.5	9,241		4.1
Secondary (3)	63,016		35.0	25,800		19.3		115,871		33.6	43,589		19.2
Other (4)	2,677		1.5	12,598		9.5		7,922		2.3	14,610		6.4
Total Core	180,163		100%	133,543		100%		345,268		100%	227,260		100%
Insolvency	26,627			12,189				48,783			27,890
Total	$	206,790		$	145,732			$	394,051		$	255,150

(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.

Non-GAAP Financial Measures

We report our financial results in accordance with U.S. generally accepted accounting principles ("GAAP"). However, our management also uses certain non-GAAP financial measures, including:

•adjusted earnings before interest, taxes, depreciation and amortization ("Adjusted EBITDA"), to evaluate the Company's performance and to set performance goals; and

•return on average tangible equity ("ROATE"), as a measure to monitor and evaluate operating performance relative to the Company's equity.

Adjusted EBITDA

We present Adjusted EBITDA because we consider it an important supplemental measure of operations and financial performance. Our management believes Adjusted EBITDA helps provide enhanced period-to-period comparability of operations and financial performance, as it excludes certain items whose fluctuations from period-to-period do not necessarily correspond to changes in the operations of our business, and is useful to investors as other companies in the industry report similar financial measures. Adjusted EBITDA should not be considered as an alternative to net income determined in accordance with GAAP. In addition, our calculation of Adjusted EBITDA may not be comparable to the calculation of similarly titled measures presented by other companies. Adjusted EBITDA is calculated starting with our GAAP financial measure, Net income/(loss) attributable to PRA Group, Inc. and is adjusted for:

•income tax expense (or less income tax benefit);

•foreign exchange loss (or less foreign exchange gain);

•interest expense, net (or less interest income, net);

•other expense (or less other income);

•depreciation and amortization;

•impairment of real estate;

•net income attributable to noncontrolling interests; and

•recoveries applied to negative allowance less changes in expected recoveries.

The following table provides a reconciliation of Net income/(loss) attributable to PRA Group, Inc. as reported in accordance with GAAP to Adjusted EBITDA for the periods indicated (amounts in thousands):



	Last Twelve Months Ended		Year Ended
	June 30, 2024		December 31, 2023
Net income/(loss) attributable to PRA Group, Inc.	$	3,945	$	(83,477)
Adjustments:
Income tax expense/(benefit)	12,060		(16,133)
Foreign exchange loss/(gain)	3		(289)
Interest expense, net	208,050		181,724
Other expense (1)	1,224		1,944
Depreciation and amortization	11,662		13,376
Impairment of real estate	5,239		5,239
Net income attributable to noncontrolling interests	18,909		16,723

Recoveries applied to negative allowance less changes in expected recoveries	804,094		887,891
Adjusted EBITDA	$	1,065,186	$	1,006,998

(1)Other expense reflects non-operating activities.

Return on Average Tangible Equity

We use ROATE, which is a supplemental measure of performance that is not required by, or presented in accordance with, GAAP, 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 our long-term shareholder return. Average tangible equity ("ATE") 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 ATE.

The following table displays our ROATE and provides a reconciliation of Total stockholders' equity - PRA Group, Inc. as reported in accordance with GAAP to ATE for the periods indicated (amounts in thousands, except for ratio data):



					Average Balance
	Balance at Period End				Second Quarter						Year-to-Date
	June 30, 2024		June 30, 2023		2024			2023			2024			2023
Total stockholders' equity - PRA Group, Inc.	$	1,145,463	$	1,165,525	$	1,137,395		$	1,161,934		$	1,147,300		$	1,183,843
Less: Goodwill	415,646		414,905		413,746			417,776			419,685			423,824
Less: Other intangible assets	1,597		1,836		1,632			1,835			1,668			1,839
Average tangible equity					$	722,017		$	742,323		$	725,947		$	758,180
Net income/(loss) attributable to PRA Group, Inc.					$	21,516		$	(3,804)		$	24,991		$	(62,433)
Return on average tangible equity (1)					11.9		%	(2.0)		%	6.9		%	(16.5)		%

(1)Based on annualized Net income/(loss) attributable to PRA Group, Inc.

Liquidity and Capital Resources

We actively manage our liquidity to meet our business needs and financial obligations.

Sources of Liquidity

Cash and cash equivalents. As of June 30, 2024, cash and cash equivalents totaled $118.9 million, of which $103.1 million consisted of cash on hand related to international operations with indefinitely reinvested earnings. For additional information about the unremitted earnings of our international subsidiaries, refer to Note 13 to our Consolidated Financial Statements in the 2023 Form 10-K.

Borrowings. As of June 30, 2024, we had the following committed amounts, borrowings and availability under our credit facilities (amounts in thousands):


					Availability
	Committed Amounts		Borrowings		Availability Based on Current ERC (1)		Additional Availability (2)		Total Availability
North American revolving credit	$	1,075,000	$	219,305	$	446,076	$	409,619	$	855,695
UK revolving credit	800,000		495,665		69,182		235,153		304,335
European revolving credit	822,164		533,653		226,669		61,842		288,511
Term loan	435,000		435,000		—		—		—
Senior notes	1,446,000		1,446,000		—		—		—

Less: Debt discounts and issuance costs	—		(15,846)		—		—		—
Total	$	4,578,164	$	3,113,777	$	741,927	$	706,614	$	1,448,541

(1)Available borrowings after calculation of borrowing base, which may be used for general corporate purposes, including portfolio purchases.

(2)Subject to borrowing base and debt covenants, including advance rates ranging from 35-55% of applicable ERC.

For additional details about our credit facilities, term loan and senior notes, see Note 5 to our Consolidated Financial Statements included in Part I, Item 1 of this Quarterly Report.

Interest-bearing deposits. As of June 30, 2024, interest-bearing deposits totaled $115.0 million. Under our European revolving credit facility, our interest-bearing deposit funding is limited to SEK 2.2 billion (the equivalent of $207.5 million in U.S. dollars as of June 30, 2024).

Furthermore, we have the ability to slow the purchase of nonperforming loans and to use the net cash flow generated from cash collections on our portfolio of existing nonperforming loans to temporarily service our debt and fund existing operations.

Uses of Liquidity and Material Cash Requirements

Forward Flows. We enter into forward flow agreements for the purchase of nonperforming loans. These agreements typically have terms ranging from six to 12 months, or they can be open-ended, and establish purchase prices and specific criteria for the accounts to be purchased. Some of the agreements establish a volume reference for the contract term in the form of a target or maximum, however, very few agreements establish a minimum contractual obligation, and many of the contracts contain early termination provisions allowing either party to cancel the agreements in accordance with a specified notice period.

As of June 30, 2024, we have forward flow agreements in place with an estimated purchase price of approximately $385.6 million over the next 12 months. This total can vary significantly based on the remaining terms and renewal dates of the agreements and is comprised of $272.1 million for the Americas and Australia and $113.5 million for Europe. These amounts represent our estimated forward flow purchases over the next 12 months under the agreements in place, based on projections and other factors, including sellers' estimates of future flow sales, and are dependent on actual delivery by the sellers. Accordingly, amounts purchased under these agreements may vary significantly. In addition to these agreements, we may also enter into new or renewed forward flow commitments and/or close on spot purchase transactions.

Borrowings. As of June 30, 2024, we had $3.1 billion in outstanding borrowings. The estimated interest, unused fees and principal payments for the next 12 months are $223.8 million, of which $10.0 million relates to principal on our term loan. After 12 months, principal payments on our debt are due from between one and six years. Many of our financing arrangements include covenants with which we must comply, and as of June 30, 2024, we determined that we were in compliance with these covenants.

We intend to borrow $298.0 million under our North American revolving credit agreement on or about September 1, 2024 to redeem our Senior Notes due 2025, which, all other effects being equal, would cause a corresponding decrease to the availability under our credit facilities.

Share Repurchases. On February 25, 2022, our Board of Directors approved a share repurchase program under which we are authorized to repurchase up to $150.0 million of our outstanding common stock. The share repurchase program has no stated expiration date and does not obligate us to repurchase any specified amount of shares, remains subject to the discretion of our Board of Directors and, subject to compliance with applicable laws, may be modified, suspended or discontinued at any time.

Repurchases may be made from time-to-time in open market transactions, through privately negotiated transactions, in block transactions, through purchases made in accordance with trading plans adopted under Rule 10b5-1 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or other methods, subject to market and/or other conditions and applicable regulatory requirements. Repurchases are also subject to restrictive covenants contained in our credit facilities and the indentures that govern our senior notes. There were no repurchases during the second quarter of 2024, and as of June 30, 2024, we had $67.7 million remaining for share repurchases under the program.

Leases. Our leases have remaining terms from one to 12 years. As of June 30, 2024, we had $46.7 million in lease liabilities, of which $9.2 million is due within the next 12 months. For additional information about our leases, refer to Note 5 to our Consolidated Financial Statements in the 2023 Form 10-K.

Derivatives. We enter into derivative financial instruments to reduce our exposure to fluctuations in interest rates on variable rate debt and foreign currency exchange rates. As of June 30, 2024, we had $5.9 million of derivative liabilities, of which $0.5 million matures within one year. The remaining $5.4 million matures in 2028. For additional information, see Note 6 to our Consolidated Financial Statements included in Part I, Item 1 of this Quarterly Report.

Investments. As of June 30, 2024, we held $47.9 million in Swedish treasury securities to meet the liquidity requirements of the Swedish Financial Services Authority for our banking subsidiary, AK Nordic AB.

We believe that funds generated from operations and cash collections on nonperforming loan portfolios, together with existing cash, available borrowings under our revolving credit facilities and access to the capital markets, will be sufficient to finance our operations, planned capital expenditures, forward flow purchase commitments, debt maturities and additional portfolio purchases during the next 12 months and beyond. Market conditions permitting, we may seek to access the debt or equity capital markets as we deem appropriate. Business acquisitions or higher than expected levels of portfolio purchasing could require additional financing from other sources. We may also, from time-to-time, repurchase senior notes in the open market or otherwise.

Cash Flow Analysis

The following table summarizes our cash flow activity for 2024 year-to-date compared to the prior year period (amounts in thousands):


	Year-to-Date
	2024		2023		$ Change
Net cash provided by/(used in):
Operating activities	$	(102,488)	$	(80,839)	$	(21,649)
Investing activities	(96,195)		(93,967)		(2,228)
Financing activities	203,826		208,496		(4,670)
Effect of exchange rate on cash	1,082		6,216		(5,134)
Net increase/(decrease) in cash, cash equivalents and restricted cash	$	6,225	$	39,906	$	(33,681)

Operating Activities

Net cash used in operating activities mainly reflects cash collections recognized as revenue and cash paid for operating expenses, interest and income taxes. To calculate net cash used in operating activities, net income/(loss) was adjusted for (i) non-cash items included in net income such as unrealized foreign currency transaction gains/(losses), changes in expected recoveries, depreciation and amortization, deferred taxes, fair value changes in equity securities, and stock-based compensation, as well as (ii) changes in the balances of operating assets and liabilities, which can vary significantly in the normal course of business due to the amount and timing of payments.

Cash used in operating activities was $102.5 million 2024 year-to-date compared to $80.8 million in the prior year period. Higher cash paid for interest and operating expenses was partially offset by higher cash collections recognized as income and a lower impact from foreign currency transactions.

Investing Activities

Net cash used in investing activities increased $2.2 million compared to the prior year period. An increase of $65.6 million in purchases of nonperforming loan portfolios was partially offset by an increase of $57.0 million in recoveries applied to the negative allowance and a $7.2 million increase in net cash flow from purchases and disposals of investments.

Financing Activities

Net cash provided by financing activities decreased $4.7 million compared to the prior year period. A net decrease of $8.1 million in proceeds from lines of credit and senior notes and a $16.2 million increase in distributions to noncontrolling interests were partially offset by a $14.9 million increase in interest-bearing deposits.

In Q2 2024, we repaid $395.9 million aggregate principal amount of outstanding borrowings under our North American revolving credit agreement with the net proceeds from the issuance of our 2030 Notes. For additional details about these transactions, refer to Note 5 to our Consolidated Financial Statements included in Part I, Item 1 of this Quarterly Report.

Recent Accounting Pronouncements

For discussion of recent accounting pronouncements and the anticipated effects on our Consolidated Financial Statements, see Note 11 to our Consolidated Financial Statements included in Part I, Item 1 of this Quarterly Report.

Critical Accounting Estimates

Our Consolidated Financial Statements have been prepared in accordance with GAAP. Some of our significant accounting policies require that we use estimates, assumptions and judgments that affect the reported amounts of revenues, expenses, assets and liabilities. For a discussion of our significant accounting policies and critical accounting estimates, refer to Note 1 to our Consolidated Financial Statements in the 2023 Form 10-K.

We consider accounting estimates to be critical if they (1) involve a significant level of estimation uncertainty and (2) have had or are reasonably likely to have a material impact on our financial condition or results of operations. We base our estimates on historical experience, current trends and various other assumptions that we believe are reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. If these estimates differ significantly from actual results, the impact on our Consolidated Financial Statements may be material. We have determined that the following accounting policies involve critical estimates:

Revenue Recognition - Finance Receivables

Revenue recognition for finance receivables involves the use of estimates and the exercise of judgment on the part of management. These estimates include projections of the amount and timing of cash collections we expect to receive from our pools of accounts. We review individual pools for trends, actual performance versus projections and curve shape (a graphical depiction of the amount and timing of cash collections). We then project ERC and apply a discounted cash flow methodology to our ERC. Adjustments to ERC may include adjustments reflecting recent collection trends, our view of current and future economic conditions, changes in collection assumptions or other timing related adjustments.

Significant changes in our cash flow estimates could result in increased or decreased revenue as we immediately recognize the discounted value of such changes using the constant effective interest rate of the pool. Generally, adjustments to cash forecasts result in an adjustment to revenue at an amount less than the impact of the performance in the period due to the

effects of discounting. Additionally, cash collection forecast increases will result in more revenue being recognized and cash collection forecast decreases in less revenue being recognized over the life of the pool.

Goodwill

In accordance with Financial Accounting Standards Board ("FASB") ASC Topic 350, "Intangibles-Goodwill and Other" ("ASC 350"), we evaluate goodwill for impairment annually as of October 1, and more frequently if circumstances indicate that it is more-likely-than-not that the fair value of a reporting unit is below its carrying value.

We determine the fair value of a reporting unit by applying approaches prescribed under ASC Topic 820 "Fair Value Measurements and Disclosures": the income approach and the market approach. Under the income approach, we estimate the fair value of a reporting unit based on the present value of estimated future cash flows and a residual terminal value. Cash flow projections are based on management's estimates of a variety of factors, including growth rates and operating margins, which take into consideration industry and market conditions. Under the market approach, we estimate fair value based on market trading multiples and other relevant market transactions involving comparable publicly traded companies with operating and investment characteristics similar to the reporting unit. Depending on the availability of public data and suitable comparable transaction data, we may give more weight to the income approach than the market approach. We also assess the reasonableness of the aggregate estimated fair value of our reporting units by comparison to our market capitalization over a reasonable period, considering historic control premiums in the financial services industry and the current market environment.

As of June 30, 2024, we had goodwill of $415.6 million, consisting primarily of $388.8 million in our Debt Buying and Collection ("DBC") reporting unit. We performed our most recent annual review of the DBC reporting unit as of October 1, 2023, and concluded that goodwill was not impaired.

As of June 30, 2024, our quarterly impairment assessment did not identify the occurrence of any triggering events, and we determined our goodwill was not more-likely-than-not impaired. However, consistent with our most recent annual review, the DBC reporting unit may be at-risk for future impairment if our cash flow projections are not met or if market factors utilized in the impairment test deteriorate, including adverse changes in the debt sales market that impact our estimated purchasing volumes and purchase price multiples, and/or an increase in the discount rate. For additional information, refer to Item 7 "Management's Discussion and Analysis of Financial Condition and Results of Operations - Critical Accounting Estimates" of the 2023 Form 10-K.

Income Taxes

We are subject to income taxes in the U.S. and in numerous international jurisdictions. The tax laws are complex and subject to different interpretations by the taxpayer and the relevant government taxing authorities. When determining our domestic and non-U.S. income tax expense, we make judgments about the application of these inherently complex laws.

We record a tax provision for the anticipated tax consequences of the reported results of operations. The provision for income taxes is estimated using the asset and liability method, under which deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the financial reporting and tax basis of assets and liabilities, and for operating losses and tax credit carryforwards. Deferred tax assets and liabilities are measured using the currently enacted tax rates that apply to taxable income in effect for the years in which those tax assets are expected to be realized or settled.

We exercise significant judgment in estimating the potential exposure to unresolved tax matters and apply a more likely than not standard for recording tax benefits related to uncertain tax positions in the application of complex tax laws. While actual results could vary, we believe we have adequate tax accruals with respect to the ultimate outcome of such unresolved tax matters. We record interest and penalties related to unresolved tax matters as a component of income tax expense when the more likely than not standards are not met.

If all or part of the deferred tax assets are determined not to be realizable in the future, we would establish a valuation allowance and charge the impact to earnings in the period such a determination is made. If we subsequently realize deferred tax assets that were previously determined to be unrealizable, the respective valuation allowance would be reversed, resulting in a positive adjustment to earnings. The establishment or release of a valuation allowance does not have an impact on cash, nor does such an allowance preclude the use of loss carryforwards or other deferred tax assets in future periods. The calculation of tax liabilities involves significant judgment in estimating the impact of uncertainties in the application of complex tax laws. Resolution of these uncertainties in a manner inconsistent with our expectations could have a material impact on our results of operations and financial position. For further information regarding our uncertain tax positions, refer to Note 13 to our Consolidated Financial Statements in the 2023 Form 10-K.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

Our business is subject to various financial risks, including market, currency, interest rate, credit, liquidity and cash flow risk. We use various strategies, including derivative financial instruments, to manage these risks; however, they can still impact our Consolidated Financial Statements.

We do not utilize derivative financial instruments with a level of complexity or with a risk greater than the exposure to be managed, nor do we enter into or hold derivatives for trading or speculative purposes. Derivative instruments involve, to varying degrees, elements of non-performance, or credit risk. We do not believe that we currently face a significant risk of loss in the event of non-performance by the counterparties to these instruments, as these transactions were executed with a diversified group of major financial institutions with investment-grade credit ratings. Our intention is to spread our counterparty credit risk across a number of counterparties so that exposure to a single counterparty is mitigated.

Interest Rate Risk

We are subject to interest rate risk from borrowings on our variable rate credit facilities, as well as our interest-bearing deposits. As such, our consolidated financial results are subject to fluctuations due to changes in market interest rates. To reduce our exposure to changes in the market rate of interest, we have entered into interest rate derivative contracts to hedge a portion of our borrowings under floating rate financing arrangements. Under the terms of the interest rate derivatives, we receive a variable interest rate and pay a fixed interest rate. Of our $3.1 billion in total borrowings as of June 30, 2024, $1.4 billion was fixed rate debt. Considering these fixed rate borrowings and the interest rate hedges on our variable rate debt, with maturities ranging from six months to four years, as of June 30, 2024, 70% of our total debt was either fixed rate or converted to a fixed rate.

We assess interest rate risk by estimating the increase or decrease in interest expense that would occur due to a change in short-term interest rates. Borrowings on our variable rate credit facilities were $1.7 billion as of June 30, 2024, and based on our debt structure, assuming a 50 basis point decrease/increase in interest rates, interest expense over the following 12 months would decrease/increase by an estimated $4.9 million.

Currency Exchange Risk

We operate internationally and enter into transactions denominated in various foreign currencies. Our subsidiaries use multiple functional currencies, and weakness in one particular currency might be offset by strength in other currencies over time. During Q2 2024, our revenues from operations outside the U.S. were $131.4 million.

Fluctuations in foreign currencies could cause us to incur foreign currency gains and losses, and could affect our comprehensive income and stockholders' equity. Additionally, our reported financial results could change from period-to-period due solely to fluctuations between currencies. Foreign currency gains and losses are primarily the result of the remeasurement of transactions in other currencies into an entity's functional currency. Foreign currency gains and losses are included as a component of Other income and (expense) in our Consolidated Income Statements. From time-to-time, we may elect to enter into foreign exchange derivative contracts to reduce these variations in our Consolidated Income Statements.

When an entity's functional currency is different than the reporting currency of its parent, foreign currency translation adjustments may occur. Foreign currency translation adjustments are included as a component of Other comprehensive income/(loss) in our Consolidated Statements of Comprehensive Income and as a component of Equity in our Consolidated Balance Sheets.

We have taken measures to mitigate the impact of foreign currency fluctuations. We have organized our European operations so that portfolio ownership and collections generally occur within the same entity. Additionally, our European and UK credit facilities are multi-currency facilities, allowing us to better match funding and portfolio acquisitions by currency. We actively monitor the value of our finance receivables by currency. In the event adjustments are required to our liability composition by currency, we may, from time-to-time, execute re-balancing foreign exchange contracts to more closely align funding and portfolio acquisitions by currency.

Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures. We maintain disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) that are designed to ensure that information required to be disclosed in our Exchange Act reports is recorded, processed, summarized and reported within the time periods specified in the SEC's rules and forms, and that such information is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure. In designing and evaluating the disclosure controls and procedures, management recognized that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives, and management necessarily was required to apply its judgment in evaluating the cost-benefit relationship of possible controls and procedures. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions or that the degree of compliance with the policies or procedures may deteriorate. We conducted an evaluation, under the supervision and with the participation of our principal executive officer and principal financial officer, of the effectiveness of our disclosure controls and procedures as of the end of the period covered by this Quarterly Report. Based on this evaluation, the principal executive officer and principal financial officer have concluded that, as of June 30, 2024, our disclosure controls and procedures were effective.

Changes in Internal Control over Financial Reporting. There was no change in our internal control over financial reporting that occurred during the quarter ended June 30, 2024, that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

Part II. Other Information

Item 1. Legal Proceedings

For information regarding legal proceedings as of June 30, 2024, refer to Note 10 to our Consolidated Financial Statements included in Part I, Item 1 of this Quarterly Report.

Item 1A. Risk Factors

There have been no material changes in our risk factors from those disclosed in Part I, Item 1A of the 2023 Form 10-K.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

Share Repurchase Programs

On February 25, 2022, our Board of Directors approved a share repurchase program under which we are authorized to repurchase up to $150.0 million of our outstanding common stock. For more information, see Part I, Item 2 "Management's Discussion and Analysis of Financial Condition and Results of Operations - Liquidity and Capital Resources" in this Quarterly Report. We did not repurchase any common stock during the second quarter of 2024.

We do not currently pay regular dividends on our common stock and did not pay dividends during the second quarter of 2024; however, our Board of Directors may determine in the future to declare or pay dividends on our common stock. Our credit facilities and the indentures governing our senior notes contain financial and other restrictive covenants, including restrictions on certain types of transactions and our ability to pay dividends to our stockholders and repurchase our common stock.

Item 3. Defaults Upon Senior Securities

None.

Item 4. Mine Safety Disclosures

Not applicable.

Item 5. Other Information

On May 31, 2024, Martin Sjölund, President of PRA Group Europe, adopted a written arrangement that is intended to satisfy the affirmative defense conditions of Exchange Act Rule 10b5-1(c) (the "Trading Plan"). The Trading Plan provides for the sale of 14,433 shares of our common stock and will terminate on May 30, 2025, unless terminated earlier in accordance with the Trading Plan's terms.

Item 6. Exhibits


3.1			Fifth Amended and Restated Certificate of Incorporation of PRA Group, Inc. (Incorporated by reference to Exhibit 3.1 of the Current Report on Form 8-K filed June 17, 2020 (File No. 000-50058)).
3.2			Amended and Restated By-Laws of PRA Group, Inc. (Incorporated by reference to Exhibit 3.2 of the Current Report on Form 8-K filed June 17, 2020 (File No. 000-50058)).
4.1			Form of Common Stock Certificate (Incorporated by reference to Exhibit 4.1 of Amendment No. 1 to the Registration Statement on Form S-1 filed October 15, 2002 (Registration No. 333-99225)).
4.2			Form of Warrant (Incorporated by reference to Exhibit 4.2 of Amendment No. 2 to the Registration Statement on Form S-1 filed October 30, 2002 (Registration No. 333-99225)).
4.3			Indenture, dated as of August 27, 2020 among PRA Group Inc., the domestic subsidiaries of PRA Group Inc., party thereto and Regions Bank as trustee (Incorporated by reference to Exhibit 4.1 to the Current Report on Form 8-K filed September 1, 2020 (File No. 000-50058)).
4.4			Indenture, dated as of September 22, 2021 among PRA Group Inc., the domestic subsidiaries of PRA Group Inc., party thereto and Regions Banks, as trustee (Incorporated by reference to Exhibit 4.1 to the Current Report on Form 8-K filed September 24, 2021 (File No. 000-50058)).
4.5			Indenture, dated as of February 6, 2023, among PRA Group, Inc., the domestic subsidiaries of PRA Group, Inc., party thereto and Regions Bank, as trustee (Incorporated by reference to Exhibit 4.1 to the Current Report on Form 8-K filed February 6, 2023 (File No. 000-50058)).
4.6			Indenture , dated as of May 20, 2024, among PRA Group, Inc., the domestic subsidiaries of PRA Group, Inc. party thereto and Regions Bank, as trustee (Incorporated by reference to Exhibit 4.1 to the Current Report on Form 8-K filed May 20, 2024 (File No. 000-50058)).
4.7			Description of the Registrant's Securities Registered pursuant to Section 12 of the Securities Exchange Act of 1934 (Incorporated by reference to Exhibit 4.3 of the Annual Report on Form 10-K filed February 26, 2021 (File No. 000-50058)).


10.1			Pledge of Debt Security and Receivables dated May 13, 2024 pursuant to the European Credit Agreement dated November 23, 2022 by and among PRA Group Europe Holding S.a.r.l, and its Swiss B ranc h , PRA Group Europe Holding S.a.r.l, Luxembourg, Zug Branch and DNB Bank ASA (filed herewith).
10.2			Ninth Amendment to the Credit Agreement dated June 21, 2024 by and among PRA Group, Inc and PRA Group Canada Inc., the Guarantors, the Lenders party thereto, Bank of America, N.A., as Administrative Agent and Bank of America, N.A., acting through its Canada Branch, as Canadian Administrative Agent (filed herewith).
31.1			Certification of the Chief Executive Officer pursuant to Section 302 of the Sarbanes Oxley Act of 2002 (filed herewith).
31.2			Certification of the Chief Financial Officer pursuant to Section 302 of the Sarbanes Oxley Act of 2002 (filed herewith).
32.1			Certifications of Chief Executive Officer and Chief Financial Officer pursuant to Section 906 of the Sarbanes Oxley Act of 2002 (filed herewith).
101.INS			XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document
101.SCH			XBRL Taxonomy Extension Schema Document
101.CAL			XBRL Taxonomy Extension Calculation Linkable Document
101.LAB			XBRL Taxonomy Extension Label Linkable Document
101.PRE			XBRL Taxonomy Extension Presentation Linkable Document
101.DEF			XBRL Taxonomy Extension Definition Linkbase Document
104			Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.



	PRA Group, Inc.
	(Registrant)

August 7, 2024	By:	/s/ Vikram A. Atal
		Vikram A. Atal
		President and Chief Executive Officer
		(Principal Executive Officer)




August 7, 2024	By:	/s/ Rakesh Sehgal
		Rakesh Sehgal
		Executive Vice President and Chief Financial Officer
		(Principal Financial and Accounting Officer)

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PRA (PRAA) 10-Q2024 Q2 Quarterly report

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