PRA Group shares soar 11% as Q2 earnings beat expectations

Published 04/08/2025, 21:56
 PRA Group shares soar 11% as Q2 earnings beat expectations

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.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.