PRA Group, Inc. reported a net loss of $305.1 million for the fiscal year ending December 31, 2025, a significant decline from a net income of $70.6 million in 2024. This downturn was primarily attributed to a goodwill impairment charge of $412.6 million related to its Debt Buying and Collection (DBC) reporting unit. Total revenues for the year increased to $1.2 billion, up from $1.1 billion in 2024, driven by an 18.2% rise in portfolio income, which reached $1.01 billion. The company's estimated remaining collections (ERC) also grew by 15.4% to $8.6 billion, with the U.S. contributing 42.5% and Europe 51.0% of the total ERC.
In terms of operational changes, PRA Group reorganized its business structure into two reportable segments: U.S. and European operations, effective in the fourth quarter of 2025. This restructuring was part of a strategic initiative to enhance operational efficiency and better align resources under the leadership of a new CEO. The company also reported a 19.8% increase in U.S. Core cash collections, which totaled $1.1 billion, reflecting improved performance in its legal collections channel. However, total portfolio purchases decreased by 14.2% to $1.2 billion, as the company adopted a more selective approach to acquisitions.
PRA Group's workforce consisted of 2,615 full-time employees as of December 31, 2025, with approximately 60% based in the U.S. The company has made significant changes to its operational model, including a 40% reduction in its U.S. onshore agent headcount, shifting a portion of its collection activities offshore to enhance cost efficiency. The company also reported a cash efficiency ratio of 61.3%, indicating improved management of operating expenses relative to cash collections.
Looking ahead, PRA Group anticipates stable portfolio supply in the near to medium term, contingent on market conditions. The company plans to continue focusing on strengthening its U.S. platform while leveraging the momentum of its European business. However, it remains cautious about potential economic downturns and regulatory changes that could impact its operations and financial performance. The company is also monitoring the enactment of new tax regulations that could affect its international operations and overall tax liabilities.
About PRA GROUP INC
PRA Group Inc. is a global financial services company specializing in purchasing, managing, and collecting nonperforming loans from consumers across multiple asset classes, including credit cards, auto loans, and insolvency portfolios. Operating in 18 countries, it leverages data-driven models, digital channels, and legal strategies to maximize recoveries, while maintaining compliance with complex international and domestic regulations. Its core value lies in efficient portfolio acquisition and collection, supported by strong relationships and a diversified global presence.
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