PRA GROUP INCPRAA
PRA GROUP INC Segments Disclosure
Business Segments
The Company's primary business is the purchase, collection and management of nonperforming loan portfolios. The Company is organized on a geographic basis, with its principal markets in the U.S. and Europe, where it has operations in 12 countries and the United Kingdom. On a significantly smaller scale, the Company also operates in South America, Canada and Australia. Subject to globally-established parameters for capital allocation, portfolio profitability and leverage, each market functions under a similar debt management business model, which is predicated on purchasing nonperforming loans and generating returns through disciplined collection strategies over extended collection periods. As part of an ancillary business, the Company purchases and provides fee-based services for class action claims recoveries in the U.S.
During the three months ended December 31, 2025, the Company reorganized its business segment structure from a single operating segment into two operating and reportable segments, comprised of its U.S. and European businesses. The reorganization resulted from the appointment of a new chief executive officer ("CEO") in 2025, which led to changes in the organizational structure and how the Company's operating results are evaluated by the Company's chief operating decision maker ("CODM"). The Company has determined that its operations in South America, Canada and Australia are not operating segments individually or collectively. The U.S. reportable segment includes the operating results of the Company's class action claims recoveries business, which are not material to the segment as a whole.
The CODM is the Company’s CEO, and the primary profitability measure used by the CEO to evaluate performance and allocate resources is segment operating income/(loss). The measure used by the CEO represents a GAAP measure (Income/(loss) from operations) adjusted to exclude the goodwill impairment charge in 2025, which does not represent an integral part of segment operational performance, as well as certain unallocated corporate expenses, and does not include any non-operating income or expenses. The CEO uses segment operating income/(loss) to review actual results in comparison with budgeted and forecasted results and in deciding how to allocate resources, which may include decisions about employees, properties, operational initiatives and the deployment of capital and other financial resources.
Intersegment and other intercompany transactions are executed at negotiated prices. The Company does not report a measure of segment assets as that information is not regularly provided to the CEO. All prior year disclosures have been recast to reflect the reportable segment reorganization that occurred in 2025.
Segment financial information
Segment operating results for the years ended December 31, 2025, 2024 and 2023 were as follows (in thousands):
| 2025 | 2024 | 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||
| U.S. | Europe | Total | U.S. | Europe | Total | U.S. | Europe | Total | |||||||||||||||||||||||||||||||||||||||||||||
| Revenues from external customers | $ | 611,252 | $ | 461,365 | $ | 1,072,617 | $ | 593,928 | $ | 394,963 | $ | 988,891 | $ | 358,251 | $ | 330,503 | $ | 688,754 | |||||||||||||||||||||||||||||||||||
| Reconciliation to consolidated total: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
All other revenues (1) | 129,220 | 125,633 | 113,800 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Total consolidated revenues | $ | 1,201,837 | $ | 1,114,524 | $ | 802,554 | |||||||||||||||||||||||||||||||||||||||||||||||
| Segment revenues | 611,252 | 461,365 | 1,072,617 | 593,928 | 394,963 | 988,891 | 358,251 | 330,503 | 688,754 | ||||||||||||||||||||||||||||||||||||||||||||
Less segment expenses:(2) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Compensation and benefits | 175,452 | 82,662 | 258,114 | 187,624 | 72,585 | 260,209 | 180,908 | 66,295 | 247,203 | ||||||||||||||||||||||||||||||||||||||||||||
| Legal collection expenses | 177,318 | 35,697 | 213,015 | 130,284 | 38,032 | 168,316 | 87,116 | 26,270 | 113,386 | ||||||||||||||||||||||||||||||||||||||||||||
| Professional and outside services | 51,685 | 17,445 | 69,130 | 48,439 | 14,843 | 63,282 | 38,346 | 15,959 | 54,305 | ||||||||||||||||||||||||||||||||||||||||||||
Other segment items (3) | 86,167 | 55,733 | 141,900 | 100,008 | 51,795 | 151,803 | 101,848 | 51,177 | 153,026 | ||||||||||||||||||||||||||||||||||||||||||||
| Segment operating income/(loss) | $ | 120,630 | $ | 269,828 | $ | 390,458 | $ | 127,573 | $ | 217,708 | $ | 345,281 | $ | (49,967) | $ | 170,802 | $ | 120,834 | |||||||||||||||||||||||||||||||||||
| Reconciliation to consolidated totals: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
All other operating income and corporate expenses (4) | (8,120) | (5,549) | (20,342) | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Goodwill impairment | (412,611) | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Income/(loss) from operations | $ | (30,273) | $ | 339,732 | $ | 100,492 | |||||||||||||||||||||||||||||||||||||||||||||||
| Interest expense, net | (251,788) | (229,267) | (181,724) | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Gain on sale of equity method investment | 38,403 | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Foreign exchange gain/(loss), net | 755 | (9) | 289 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Other expense | (336) | (851) | (1,944) | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Income/(loss) before income taxes | $ | (243,239) | $ | 109,605 | $ | (82,887) | |||||||||||||||||||||||||||||||||||||||||||||||
(1)Includes revenues from external customers in South America, Canada and Australia.
(2)Amounts include intersegment and intercompany expenses, which are not material.
(3)Primarily reflects Communication expenses, Agency fees and Other operating expenses.
(4)Includes operating income in South America, Canada and Australia, excluding goodwill impairment, and certain unallocated corporate personnel, administrative and other overhead expenses.
Other segment information for the years ended December 31, 2025, 2024 and 2023 was as follows (in thousands):
| 2025 | 2024 | 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||
| U.S. | Europe | Segments Total | U.S. | Europe | Segments Total | U.S. | Europe | Segments Total | |||||||||||||||||||||||||||||||||||||||||||||
| Interest expense, net | $ | 144,304 | $ | 111,516 | $ | 255,820 | $ | 139,594 | $ | 90,537 | $ | 230,131 | $ | 100,883 | $ | 82,224 | $ | 183,107 | |||||||||||||||||||||||||||||||||||
| Depreciation and amortization | 5,812 | 3,087 | 8,899 | 7,628 | 2,964 | 10,592 | 9,612 | 3,525 | 13,137 | ||||||||||||||||||||||||||||||||||||||||||||
| Goodwill impairment | 15,761 | 361,249 | 377,010 | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
| Income tax expense/(benefit) | (241) | 32,436 | 32,195 | 4,468 | 17,270 | 21,738 | (32,020) | 15,134 | (16,886) | ||||||||||||||||||||||||||||||||||||||||||||
Reconciliation of segment totals to consolidated totals for the years ended December 31, 2025, 2024 and 2023 was as follows (in thousands):
| 2025 | 2024 | 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Segments Total | All Other (1) | Consolidated Total | Segments Total | All Other (1) | Consolidated Total | Segments Total | All Other (1) | Consolidated Total | |||||||||||||||||||||||||||||||||||||||||||||
| Interest expense/(income), net | $ | 255,820 | $ | (4,032) | $ | 251,788 | $ | 230,131 | $ | (864) | $ | 229,267 | $ | 183,107 | $ | (1,383) | $ | 181,724 | |||||||||||||||||||||||||||||||||||
| Depreciation and amortization | 8,899 | 136 | 9,035 | 10,592 | 200 | 10,792 | 13,137 | 239 | 13,376 | ||||||||||||||||||||||||||||||||||||||||||||
| Goodwill impairment | 377,010 | 35,601 | 412,611 | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
| Income tax expense | 32,195 | 14,540 | 46,735 | 21,738 | (706) | 21,032 | (16,886) | 753 | (16,133) | ||||||||||||||||||||||||||||||||||||||||||||
(1)Primarily reflects activity in South America, Canada and Australia. Interest expense, net also includes the elimination of intersegment and intercompany interest.
Revenues and long-lived assets by country
Revenues for the years ended December 31, 2025, 2024 and 2023, and long-lived assets held as of December 31, 2025 and 2024, by country in which the Company operates, were as follows (in thousands):
Revenues (1) | Long-Lived Assets (2) | ||||||||||||||||||||||||||||
| 2025 | 2024 | 2023 | December 31, 2025 | December 31, 2024 | |||||||||||||||||||||||||
| U.S. | $ | 611,252 | $ | 593,928 | $ | 358,251 | $ | 33,893 | $ | 43,068 | |||||||||||||||||||
| International | |||||||||||||||||||||||||||||
| U.K. | 170,084 | 161,905 | 119,963 | 9,149 | 9,957 | ||||||||||||||||||||||||
Other (3) | 420,501 | 358,691 | 324,340 | 11,050 | 8,646 | ||||||||||||||||||||||||
| Total | $ | 1,201,837 | $ | 1,114,524 | $ | 802,554 | $ | 54,092 | $ | 61,671 | |||||||||||||||||||
(1)Based on the financial information used to produce the Company's general-purpose financial statements, it is impracticable to report further breakdowns of revenues from external customers.
(2)Comprised of Property and equipment, net and ROU assets.
(3)None of the countries included comprise greater than 10% of the Company's consolidated revenues or long-lived assets.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 2, 2026 | Showing above |
| 2024 | Feb 27, 2025 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.