PRA GROUP INCPRAA
PRA GROUP INC Stock Compensation Disclosure
Share-Based Compensation and Employee Savings Plans
The Company has a stockholder approved Omnibus Incentive Plan (the "Plan") that is intended to assist the Company in attracting and retaining selected individuals to serve as employees and directors who are expected to contribute to the Company's success and achievement of long-term objectives that will benefit the Company's stockholders. The Plan enables the Company to award shares of the Company's common stock to select employees and directors. As of December 31, 2025, there were 1,484,565 shares available to be awarded under the Plan.
Total share-based compensation expense was $15.9 million, $13.5 million and $11.1 million for the years ended December 31, 2025, 2024 and 2023, respectively. The Company recognizes all excess tax benefits and tax deficiencies in the income statement when the awards vest or are settled. The total tax deficiency realized from share-based compensation was $4.6 million, $3.2 million and $1.6 million for the years ended December 31, 2025, 2024 and 2023, respectively.
Nonvested shares
The following table summarizes nonvested share activity, excluding those issued pursuant to the Long-Term Incentive ("LTI") program, from December 31, 2022 through December 31, 2025 (in thousands, except per share amounts):
| Nonvested Shares Outstanding | Weighted-Average Price at Grant Date | ||||||||||
| Balance as of December 31, 2022 | 556 | $ | 40.23 | ||||||||
| Granted | 482 | 32.90 | |||||||||
| Vested | (278) | 40.14 | |||||||||
| Forfeited | (208) | 41.08 | |||||||||
| Balance as of December 31, 2023 | 552 | 33.55 | |||||||||
| Granted | 567 | 24.48 | |||||||||
| Vested | (338) | 31.21 | |||||||||
| Forfeited | (43) | 27.47 | |||||||||
| Balance as of December 31, 2024 | 738 | 28.00 | |||||||||
| Granted | 875 | 18.93 | |||||||||
| Vested | (358) | 29.07 | |||||||||
| Forfeited | (92) | 23.06 | |||||||||
| Balance as of December 31, 2025 | 1,163 | $ | 21.24 | ||||||||
The total grant date fair value of shares vested during the years ended December 31, 2025, 2024 and 2023, excluding those granted under the LTI program, was $10.4 million, $10.5 million and $11.2 million, respectively. As of December 31, 2025, total future compensation expense related to nonvested share grants to individual employees and directors (not including nonvested shares granted under the LTI program), was estimated to be $15.6 million, with a weighted average remaining life of two years. For most of these grants, the Company assumed a 5.0% forfeiture rate.
LTI program
Pursuant to the Plan, the Compensation Committee may grant time-vesting and performance-based share awards to key employees of the Company. The following table summarizes LTI share activity from December 31, 2022 through December 31, 2025 (in thousands, except per share amounts):
| Nonvested LTI Shares Outstanding | Weighted-Average Price at Grant Date | ||||||||||
| Balance as of December 31, 2022 | 355 | $ | 40.07 | ||||||||
| Granted at target level | 130 | 52.55 | |||||||||
| Adjustments for actual performance | 17 | 39.04 | |||||||||
| Vested | (153) | 39.47 | |||||||||
| Forfeited | (191) | 46.58 | |||||||||
| Balance as of December 31, 2023 | 158 | 42.94 | |||||||||
| Granted at target level | 230 | 28.78 | |||||||||
| Adjustments for actual performance | (32) | 37.45 | |||||||||
| Vested | (38) | 37.45 | |||||||||
| Forfeited | (2) | 28.78 | |||||||||
| Balance as of December 31, 2024 | 316 | 33.93 | |||||||||
| Granted at target level | 394 | 21.06 | |||||||||
| Adjustments for actual performance | (35) | 47.10 | |||||||||
| Vested | (12) | 44.90 | |||||||||
| Forfeited | (20) | 33.97 | |||||||||
| Balance as of December 31, 2025 | 643 | $ | 25.14 | ||||||||
The total grant date fair value of LTI shares vested during the years ended December 31, 2025, 2024 and 2023, was $0.5 million, $1.4 million and $6.0 million, respectively. As of December 31, 2025, total future compensation expense related to nonvested shares granted under the LTI program, assuming current estimated performance levels are achieved, was estimated to be $7.0 million, with a weighted average remaining life of two years. The Company assumed a 5.0% forfeiture rate for these grants.
Savings plans
The Company sponsors defined contribution plans primarily in the U.S. and Europe. The U.S. plan is organized as a 401(k) plan under which all employees over 18 years of age are eligible to make voluntary contributions to the plan up to 100% of their compensation, subject to IRS limitations, after completing one month of service, as defined in the plan. The Company makes matching contributions of up to 4% of an employee's salary after six months of service. For the defined contribution plans in Europe, the Company pays contributions to publicly or privately administered pension insurance plans on a mandatory, contractual or voluntary basis. Total compensation expense related to the Company's contributions was $7.9 million, $7.5 million and $7.2 million for the years ended December 31, 2025, 2024 and 2023, respectively.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 2, 2026 | Showing above |
| 2024 | Feb 27, 2025 | |
| 2023 | Feb 29, 2024 | |
| 2022 | Feb 28, 2023 | |
| 2021 | Mar 1, 2022 | |
| 2020 | Feb 26, 2021 | |
| 2019 | Mar 2, 2020 | |
| 2018 | Mar 12, 2019 | |
| 2017 | Feb 28, 2018 | |
| 2016 | Mar 1, 2017 | |
| 2015 | Feb 26, 2016 | |
About Stock Compensation Disclosures
Stock-based compensation disclosures detail the equity awards granted to employees and executives — including stock options, restricted stock units (RSUs), and performance shares — along with the valuation methods and assumptions used to expense them. This section reveals the true cost of talent retention and the alignment between management incentives and shareholder interests.
Key signals: total unrecognized compensation expense and its expected recognition period signal future earnings headwinds from already-granted awards. For stock options, examine Black-Scholes assumptions — expected volatility, risk-free rate, and expected term — as understating any of these reduces reported compensation expense. Compare stock compensation expense as a percentage of revenue against peers to assess dilution cost. Watch vesting schedules for acceleration clauses tied to change-of-control events. Performance-based awards with undemanding targets may indicate weak governance. Add back stock compensation to operating cash flow to calculate a more conservative free cash flow figure.