PRA Group, Inc. recently released its 10-Q report. PRA Group is a financial services company that buys and manages nonperforming loan portfolios in the U.S., Europe, the U.K., South America, Canada and Australia. Most of its purchases are loans that credit originators have stopped pursuing or have been unable to collect in full, and it also buys certain bankruptcy-related accounts and provides fee-based services for class action claims recoveries.
In Item 2, management said the company continued to focus on its U.S. turnaround and benefited from stronger European results in the first quarter of 2026. Net income attributable to PRA Group rose to $28.2 million from $3.7 million a year earlier, while diluted earnings per share increased to $0.73 from $0.09. Adjusted EBITDA for the last 12 months reached $1.35 billion, up 13.9%, and estimated remaining collections stood at $8.55 billion at March 31, 2026, up 9.5% from $7.81 billion a year earlier.
Portfolio purchases fell 24.3% to $220.9 million from $291.7 million, with U.S. purchases down 26.4% to $118.5 million and Europe purchases down 19.2% to $91.6 million. Cash collections increased 11.0% to $551.9 million from $497.4 million, including a 10.5% gain in the U.S. to $288.6 million and a 14.5% increase in Europe to $212.6 million. Legal collections in the U.S. rose to $141.0 million from $111.2 million, while European legal collections increased to $74.0 million from $62.0 million.
Total portfolio revenue climbed 16.6% to $313.5 million from $268.9 million. Portfolio income rose 11.9% to $269.6 million, and changes in expected recoveries increased 57.2% to $43.9 million. By region, U.S. portfolio revenue increased 14.9% to $156.0 million and Europe revenue rose 25.5% to $125.4 million.
Operating expenses increased 8.3% to $211.3 million from $195.0 million. Legal collection costs were the largest driver of the increase, rising 45.1% to $48.5 million from $33.4 million. Legal collection fees increased 12.1% to $17.1 million, and agency fees rose 15.0% to $24.6 million. Compensation and benefits declined 3.5% to $70.7 million from $73.3 million.
At quarter-end, finance receivables, net, were $4.64 billion, up from $4.31 billion a year earlier, while borrowings increased to $3.78 billion from $3.47 billion. Total stockholders’ equity attributable to PRA Group fell to $1.00 billion from $1.22 billion. Full-time equivalents declined to 2,541 from 2,991. In April 2026, the company refinanced its European revolving credit facility for another five years without changing commitment levels or funding costs. Following these announcements, the company's shares moved -8.14%, and are now trading at a price of $19.18. Check out the company's full 10-Q submission here.
