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- Goodwill Impairment (new) — Adjusted EBITDA reconciliation references a $412.6M goodwill impairment, though this appears to be a prior-period charge carried forward in the trailing-twelve-month calculation rather than a new Q1 2026 event.
PRA Group reports 11% cash collections growth, $28.2M net income in Q1 2026
Filed May 7, 2026 · Period ending May 7, 2026 · ~1 min read
Key Changes
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Cash collections rose 11.0% to $551.9M with net income of $28.2M ($0.73 per share); trailing-twelve-month adjusted EBITDA grew 13.9% to $1.3B, outpacing collections growth as operating leverage improved.
Exhibit 99.1 view on EDGAR → -
high
Portfolio revenue increased 16.6% to $313.5M driven by strong returns on recent purchases; changes in expected recoveries rose to $43.9M from $27.9M year-over-year, indicating improved collection forecasts.
Exhibit 99.1 view on EDGAR → -
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Operating expenses rose $16.2M to $211.3M, primarily from $15.1M in legal collection costs to support future growth; compensation fell $2.6M after eliminating 115 corporate roles in Q4 2025.
Exhibit 99.1 view on EDGAR → -
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Company purchased $220.9M in nonperforming loan portfolios and has $321.8M in forward flow commitments over the next 12 months ($172.6M Europe, $132.2M U.S., $17.0M other markets).
Exhibit 99.1 view on EDGAR → -
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Management advancing PRA 3.0 strategy with technology platform modernization, new UK mobile app, and global AI initiatives to transform into a technology-enabled capital allocator.
Exhibit 99.1 view on EDGAR →
Summary
PRA Group disclosed strong first-quarter 2026 results through a Regulation FD earnings presentation. The debt collection company reported cash collections of $551.9 million, up 11.0% year-over-year, with net income of $28.2 million ($0.73 per diluted share). Portfolio revenue grew 16.6% to $313.5 million, driven by strong returns on recent nonperforming loan purchases and improved collection forecasts.
Trailing-twelve-month adjusted EBITDA reached $1.3 billion, growing 13.9% and outpacing collections growth as the company gained operating leverage. Operating expenses increased $16.2 million to $211.3 million, primarily due to $15.1 million in legal collection costs positioned as investments to drive future growth.
However, the company reduced compensation costs by $2.6 million after eliminating over 115 corporate roles in Q4 2025. The adjusted EBITDA reconciliation references a $412.6 million goodwill impairment, though this appears to be a prior-period charge rather than a new Q1 event, warranting clarification. Management highlighted the PRA 3.0 strategy, which includes technology platform modernization, a new UK mobile app, and global AI initiatives. The company purchased $220.9 million in portfolios during the quarter and has $321.8 million in forward flow commitments over the next 12 months. For retail holders, the results demonstrate operational momentum and improving returns, though the goodwill impairment reference merits attention in subsequent filings.
Section-by-Section Diff
Event · Item 7.01 — Regulation FD Disclosure
PRA Group furnished Q1 2026 earnings presentation slides via Regulation FD disclosure, available on its investor relations website.
Show 1 minor / wording change
Added in current filing · verify on EDGAR →
The slide presentation being used in connection with the Company’s previously announced May 7, 2026, webcast and conference call to discuss its first quarter 2026 results is available in the Investor Relations section of the Company’s website at https://ir.pragroup.com/events-and-presentations.
PRA Group disclosed that its Q1 2026 earnings presentation slides are available on its investor relations website. This is a routine Regulation FD disclosure accompanying an earnings call, providing investors access to the materials being discussed during the webcast and conference call.
Event · Exhibit 99.1
Added in current filing · view on EDGAR → · paraphrased
Total cash collections of $551.9 million, up 11.0%. Cash efficiency ratio1 of 61.8%. Net income attributable to PRA Group, Inc. of $28.2 million, or diluted earnings per share of $0.73. Adjusted EBITDA2 for the 12 months ended March 31, 2026 of $1.3 billion, up 13.9%, which exceeded cash collections growth.
PRA Group reported strong Q1 2026 results with total cash collections of $551.9 million (up 11.0% year-over-year), driven by continued momentum in U.S. legal collections and strong European performance. Net income was $28.2 million ($0.73 per diluted share), and the cash efficiency ratio improved to 61.8%. Adjusted EBITDA for the trailing twelve months reached $1.3 billion, up 13.9%, growing faster than cash collections as the company gained operating leverage.
Added in current filing · view on EDGAR → · paraphrased
Portfolio income in Q1 2026 increased 11.9% to $269.6 million, compared to $241.0 million in Q1 2025, driven by strong recent purchases at improved returns. Changes in expected recoveries in Q1 2026 increased to $43.9 million, compared to $27.9 million in Q1 2025. Total portfolio revenue in Q1 2026 increased 16.6% to $313.5 million, compared to $268.9 million in Q1 2025.
Portfolio income grew 11.9% to $269.6 million, reflecting strong returns on recent portfolio purchases. Total portfolio revenue rose 16.6% to $313.5 million, demonstrating the company's ability to generate increasing returns from its nonperforming loan portfolios.
Added in current filing · view on EDGAR →
Looking ahead to the rest of the year, we plan to continue making progress on our new PRA 3.0 strategy, including modernizing our technology platforms and innovating with our new mobile app in the UK and global AI initiatives. We believe we are in a strong position to continue delivering enhanced results and value for our shareholders, as we transform PRA into a high-performing, technology-enabled global allocator of capital.
Management highlighted the company's PRA 3.0 strategy, which includes modernizing technology platforms, launching a new mobile app in the UK, and implementing global AI initiatives. The strategy aims to transform PRA into a high-performing, technology-enabled global allocator of capital, positioning the company for continued operational improvements and enhanced shareholder value.
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Figures/quotes linked to EDGAR · Narrative written by AI · Jun 25, 2026 · How we verify