PRA Group, Inc.

digital, and offshoring to transform the business. We are focused on building on this momentum by continuing to execute against our PRA 3.0 strategy. In addition to net income, we also focus on adjusted EBITDA, which we believe provides a more cash-driven perspective on our operating success. Adjusted EBITDA for the last 12 months was $1.3 billion. up 14% year over year, exceeding cash collections growth of 11%. Our net leverage, defined as net debt to adjusted EBITDA, continued to tick down, ending the quarter at 2.71 times compared to 2.73 times as of December 31, and compared to 2.82 times in the prior year period. This is due to the strong adjusted EBITDA growth coupled with disciplined purchasing, In line with our 3.0 strategy, our goal is to have our net leverage continue to decline over the next few years as we aim to land in the mid two times area. In terms of our funding, we have ample liquidity and a strong capital structure that is well diversified between bank and bond debt. As of March 31, we had $3.1 billion in total committed capital under our credit facilities with total availability of approximately $1 billion, comprised of $714 million available based on current ERC, and $282 million of additional availability that we can draw from, subject to borrowing-based and debt covenants, including advance rates. We continue to proactively strengthen our capital structure. Last month, we refinanced our 730 million European revolving credit facility. We are pleased that we completed the transaction well in advance of its maturity in November 2027. The new facility has a five-year term, further staggering our debt maturity profile with no change to the commitment level and pricing. Our funding profile remains strong with ample liquidity and no maturities until 2028. We want to thank our lending partners for their continued support as we deliver on our strategy. Lastly, we saw an opportunity to undertake another share buyback during the quarter and repurchase $10 million of our shares. This is in addition to the $20 million we repurchased in 2025. We will continue to evaluate share repurchases as part of our overall capital allocation strategy and consistent with covenant restrictions. Overall, Q1 was another solid quarter as we continue to execute our operational initiatives, improve our financial profile, and deliver higher returns while reducing leverage. I'll now turn it back to Martin.

Thanks, Rakesh. So to summarize, we've started the year on the front foot, executing with rigor, discipline, and speed across many parts of the business. We continue to gain momentum in the US, especially in legal and digital channels. Europe continues to deliver strong results and innovation, helping us diversify across many markets. And lastly, we believe that we're in a good position to execute on our new 3.0 strategy, deliver against our financial targets, and generate value for our shareholders over the next few years. Thank you, everyone, for tuning in and for your time, support, and continued confidence in our future. And with that, we'll open it up for questions.

Thank you. Ladies and gentlemen, we will now begin the question and answer session. To ask a question, you may press a star followed by the number one on your touch-tone phone. If you're using a speakerphone, please pick up your handset before pressing the keys. To withdraw your question, please press a star followed by the number two.