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NORFOLK, Va. - PRA Group, Inc. (NASDAQ:PRAA), a global leader in acquiring and collecting nonperforming loans, reported second-quarter earnings that significantly exceeded analyst expectations, sending its shares surging 11.7% following the announcement.
The company posted adjusted earnings of $1.08 per share for the second quarter of 2025, handily beating the analyst consensus of $0.66. Revenue came in at $287.69 million, slightly below the consensus estimate of $291.99 million. The quarterly results included a $29.7 million after-tax gain (approximately $0.75 per share) from the previously announced sale of the company’s equity interest in RCB, its servicing company for nonperforming loan investments in Brazil.
Total (EPA:TTEF) cash collections grew 13.2% YoY to $536.3 million, while the company’s cash efficiency ratio improved by 355 basis points to 62.4%. PRA Group’s estimated remaining collections reached a record $8.3 billion, up 21.9% compared to the same period last year.
"The second quarter represented another positive step in our journey of creating sustained shareholder value," said Martin Sjolund, president and chief executive officer. "We had another period of robust portfolio investments at attractive purchase price multiples, record ERC, and improved portfolio income as we continue to focus on high-return opportunities."
Portfolio purchases for the quarter totaled $346.5 million, down 8.7% from the second quarter of 2024, reflecting the company’s lower target of $1.2 billion for full-year 2025 compared to $1.4 billion in 2024. Despite this reduction, PRA Group’s adjusted EBITDA for the 12 months ended June 30, 2025, grew 16.4% to $1.2 billion, outpacing the growth in cash collections.
The company also continued its share repurchase program, buying back $10 million worth of shares during the quarter as part of its capital allocation strategy.
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