PRA GROUP INC
For the period ended Dec 31, 2025. Filed Mar 2, 2026.
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FY2025 · Filed Mar 2, 2026
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9 – Fair Value
- Fair Value
Financial instruments carried at fair value
As of December 31, 2025 and 2024, financial instruments measured at fair value on a recurring basis were as follows (in thousands):
| Quoted Prices in Active Markets (Level 1) | Other Observable Inputs (Level 2) | Total | |
|---|---|---|---|
| Assets | |||
| Government securities | $64,934 | $— | $64,934 |
| Derivatives (1) | — | 3,104 | 3,104 |
| Liabilities | |||
| Derivatives (1) | — | 12,385 | 12,385 |
| Assets | |||
| Government securities | $55,762 | $— | $55,762 |
| Derivatives (1) | — | 10,723 | 10,723 |
| Liabilities | |||
| Derivatives (1) | — | 4,963 | 4,963 |
(1)Fair value of derivatives is estimated using industry standard valuation models, which project future cash flows and discount the future amounts to present value using market-based observable inputs, including interest rate curves and other factors.
Financial instruments not carried at fair value
As of December 31, 2025 and 2024, the estimated fair value and carrying amount of financial instruments not carried at fair value were as follows (in thousands):
| Estimated Fair Value | ||||
|---|---|---|---|---|
| Quoted Prices in Active Markets (Level 1) | Other Observable Inputs (Level 2) | Unobservable Inputs (Level 3) | Carrying Value | |
| Financial assets | ||||
| Cash and cash equivalents | $104,409 | $— | $— | $104,409 |
| Finance receivables, net (1) | — | — | 4,394,028 | 4,688,024 |
| Financial liabilities | ||||
| Interest-bearing deposits (2) | — | 106,148 | — | 106,148 |
| Revolving lines of credit (3) | — | 1,600,530 | — | 1,600,530 |
| Term loan (3) (4) | — | 460,111 | — | 460,111 |
| Senior notes (4) (5) | — | 1,652,451 | — | 1,650,350 |
| Financial assets | ||||
| Cash and cash equivalents | $105,938 | $— | $— | $105,938 |
| Finance receivables, net (1) | — | — | 3,523,949 | 4,140,742 |
| Financial liabilities | ||||
| Interest-bearing deposits (2) | — | 163,406 | — | 163,406 |
| Revolving lines of credit (3) | — | 1,569,430 | — | 1,569,430 |
| Term loan (3) (4) | — | 470,111 | — | 470,111 |
| Senior notes (4) (5) | — | 1,301,244 | — | 1,298,000 |
(1)Fair value is estimated using the proprietary pricing models the Company utilizes to make portfolio acquisition decisions.
(2)Fair value is based on quoted prices for similar instruments in active markets and approximates carrying value due to the short-term deposit periods.
(3)Fair value is based on quoted prices for similar instruments in active markets and approximates carrying value due to the short-term interest rate periods.
(4)The carrying amounts and fair values do not include debt issuance costs.
(5)Fair value is based on quoted market prices obtained from secondary market broker quotes.
Due to the inherent uncertainty of determining the fair value of Level 3 financial instruments, the fair value of these instruments may differ significantly from the values that would have been used had a ready market or observable inputs existed for such instruments and may differ materially from the values that may ultimately be received or settled.
Goodwill impairment
During the year ended December 31, 2025, the Company assessed the goodwill in its DBC reporting unit for impairment and determined that the goodwill was fully impaired. The estimated fair value of the DBC reporting unit represents a Level 3 nonrecurring fair value measurement. Refer to Note 4 in these Consolidated Financial Statements for additional information.
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.