PRA Group is a specialty finance company that buys nonperforming loan (NPL) portfolios — primarily unsecured consumer credit such as credit card charge-offs — from banks and other lenders, then collects on those portfolios over time. When lenders write off delinquent consumer debt, they sell it in bulk at a discount to face value; PRA profits by collecting more than it paid. PRA operates across 18 countries, with two reportable segments: U.S. (~42% of estimated remaining collections, or ERC) and Europe (~51% of ERC), plus smaller operations in South America, Canada, and Australia. ERC — the total cash PRA expects to collect from its existing portfolio — is the key balance sheet metric, reaching a record $8.6B at year-end 2025. PRA also runs a small fee-based ancillary business handling class action claims recoveries. Revenue comes from portfolio income (the yield-driven return recognized as cash is collected) and changes in expected recoveries (the more volatile component reflecting actual collections versus forecast). Key profitability drivers include portfolio purchase volume, underwriting accuracy, and cost to collect — primarily call center labor, legal costs, and third-party collection agency fees. Legal collections accounted for 48% of U.S. core cash collections in 2025, up from ~38-39% two years prior. PRA funds purchases primarily through credit facilities and bond debt. The company is midway through a multi-year U.S. operational transformation, including offshoring call center capacity, building a third-party collections agency network, modernizing IT infrastructure, and investing in AI-driven collections tools.