PRA Group (NASDAQ:PRAA) Announces Quarterly Earnings Results

PRA Group (NASDAQ:PRAA) announced its quarterly earnings results on Thursday. The business services provider reported $0.39 EPS for the quarter, missing the consensus estimate of $0.80 by ($0.41), FiscalAI reports. The company had revenue of $286.27 million during the quarter, compared to analysts’ expectations of $307.40 million. PRA Group had a positive return on equity of 15.56% and a negative net margin of 19.91%.

Here are the key takeaways from PRA Group’s conference call:

• Cash collections were $536 million, 1% above expectations; U.S. legal collections rose 19%, while European collections exceeded targets by 3% despite a higher collection forecast following a portfolio write-up last quarter.
• Trailing-12-month adjusted EBITDA increased 9% to $1.4 billion, and adjusted operating expenses fell 6% year over year. Net leverage declined to 2.6 times, marking the eighth consecutive quarter of deleveraging.
• PRA invested $229 million in portfolios and is shifting more capital toward Europe, where management sees better relative returns as U.S. competition remains strong. The company expects 2026 purchases of $1 billion to $1.3 billion, similar to last year.
• Net income attributable to PRA was $15 million, while legal collection costs remained elevated after more than $190 million of investment over the past 12 months. Management expects legal costs to be lower in 2027 as it works through a backlog and prior buying volumes.
• PRA issued $400 million of senior notes due 2033, extending its debt maturities; it reported $1 billion of total credit-facility availability and said the transaction strengthens funding flexibility.

PRA Group Price Performance

Shares of NASDAQ:PRAA traded down $7.50 during trading on Friday, hitting $12.92. The company had a trading volume of 1,772,632 shares, compared to its average volume of 372,295. The stock has a market cap of $486.44 million, a price-to-earnings ratio of 3.16 and a beta of 1.15. PRA Group has a one year low of $10.25 and a one year high of $22.55. The company has a fifty day simple moving average of $19.55 and a two-hundred day simple moving average of $17.59.

Wall Street Analyst Weigh In

PRAA has been the topic of several research reports. Zacks Research cut PRA Group from a “strong-buy” rating to a “hold” rating in a report on Tuesday, October 6th. Wall Street Zen cut shares of PRA Group from a “strong-buy” rating to a “buy” rating in a research report on Sunday, November 1st. Finally, Weiss Ratings upgraded shares of PRA Group from a “sell (d)” rating to a “sell (d+)” rating in a research report on Thursday, October 8th. Three equities research analysts have rated the stock with a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the company has an average rating of “Reduce”.

PRA Group Company Profile

PRA Group, Inc is a global financial services company that purchases and manages portfolios of defaulted consumer accounts. The company works with individuals to help resolve outstanding obligations and provides account management, customer service and debt recovery solutions for acquired portfolios.

The company serves consumers and financial institutions across North America, Europe and Australia. Its activities include acquiring nonperforming consumer debt from banks, credit card companies and other financial institutions, as well as servicing portfolios on behalf of third parties in selected markets.

PRA Group was founded in 1996 and is headquartered in Norfolk, Virginia.