PRA Group, a financial services company, presented its Q2 performance at the Small-Cap Virtual Conference on Wednesday, September 23, 2026. The company reported estimated remaining collections (ERC) of $8.9 billion, a record high. In Q2, cash collections reached $559 million, with portfolio purchases totaling $297 million, resulting in a net income of $58 million. The company's net leverage ratio stood at 2.67x as of June 30, marking the seventh consecutive quarter of deleveraging, down from a peak of 2.9x in 2024.
Over the past year, PRA Group's adjusted EBITDA increased by 35% to $1.4 billion, with cash collections rising by 32%. Cash efficiency improved by more than 200 basis points. The company's stock performance has been robust, up 25% over the past year, trading near its 52-week high of $22.55 at $20.09. Analysts project 2026 earnings of $2.74 per share.
PRA Group's liquidity and debt profile are strong, with no debt maturities until 2028 and available liquidity of about $1 billion. The company has $3 billion in bank debt commitments across three facilities in North America, the U.K., and Europe, supported by a consortium of 15+ banks. Bond funding totals about $1.6 billion, including an inaugural euro bond issuance in 2025. The European credit facility was refinanced in April at the same commitment level and pricing.
The company has been actively managing its capital allocation, with $40 million in opportunistic share repurchases over the prior 15 months and a newly authorized $150 million buyback program. PRA Group's current ratio is 17.77, and its financial health score is 2.47, rated "FAIR".
Operational restructuring has been a key focus for PRA Group. The company eliminated 215 corporate and overhead roles, a 25% reduction in overhead headcount, and 575 call center roles. The U.S. call center footprint has been reduced from 7 sites to just 1, with two U.S. call centers and one offshore site closed in Q2. Annualized net savings of $35 million are expected once fully ramped by the end of 2025. PRA Group opened a talent hub in Charlotte, North Carolina, in 2024, and launched a cloud-based customer contact platform in the U.S., following its deployment in Europe. The company has formed an AI team to support contact centers and back-office operations.
PRA Group is celebrating its 30th anniversary in 2024, operating globally across 18 markets with data on over 50 million customers in the U.S. and Europe. European operations have recorded 26 consecutive quarters of cash overperformance against targets. The U.S. market, where PRA Group operates, has a credit card balance stock exceeding $1 trillion, with stable to slightly lower charge-off rates. The highly complex regulatory environment features federal, state, and city-level rules acting as entry barriers. In Europe, PRA Group operates under frameworks like the EU Consumer Credit Directive and the NPL Backstop, with the U.K. being Europe's largest market and PRA Group's second-largest globally.
