PRA Group Inc. (PRAA) highlighted its progress in debt collection efficiency and financial discipline during the 17th Annual Midwest IDEAS Conference on Wednesday, August 26, 2026. Global CEO Martin Sjolund emphasized the company’s role in the financial system, noting that its core function is to purchase non-performing loans from banks worldwide, enabling lenders to redeploy capital toward new credit issuance.
The company reported a record estimated remaining collections (ERC) of $8.9 billion, with 60% concentrated in Europe and 40% in the United States. Adjusted EBITDA reached approximately $1.4 billion on a trailing 12-month basis, up 35% since 2023. Net income for the trailing 12 months stood at $140 million, while Q2 2025 net income was $58 million, consistent with the $73 million recorded in both 2024 and 2025. The company’s net leverage declined for a seventh consecutive quarter, reaching 2.67x in Q2 2025, down from a peak of 2.9x in Q3 2024.
PRA Group has reduced its U.S. corporate overhead staff by 25%, eliminating more than 200 roles, and consolidated its U.S. call centers from seven sites to one primary facility. These restructuring efforts generated annualized net savings of $35 million. Cash efficiency, measured as the inverse of operating expense to cash, improved by more than 200 basis points since 2023. The company also refinanced its European credit facility, increasing it to EUR 730 million, and maintains total committed capital of EUR 3 billion with approximately EUR 1 billion in liquidity.
The company’s board authorized a $150 million share repurchase program, having already repurchased $40 million of stock since Q2 2025. Shares trade at $19.40, representing a 55% return over the past six months and a valuation of 0.7 times book value. PRA Group’s debt-to-equity ratio stands at 3.63, with no debt maturities until 2028. The company marked its 30th anniversary this year, with Sjolund noting his 15-year tenure with the firm.
Sjolund underscored the company’s focus on optimizing its ERC, stating, “Our focus is to make sure that we are taking advantage of it. If we can liquidate that in a more efficient way in the future, that is an opportunity for us.”
