PRA Group (NASDAQ:PRAA) Issues Quarterly Earnings Results, Beats Expectations By $0.22 EPS

PRA Group (NASDAQ:PRAA) posted its quarterly earnings data on Thursday. The business services provider reported $0.73 EPS for the quarter, beating analysts’ consensus estimates of $0.51 by $0.22, FiscalAI reports. The firm had revenue of $314.53 million for the quarter, compared to the consensus estimate of $295.90 million. PRA Group had a negative net margin of 25.39% and a positive return on equity of 10.50%.

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

• Cash collections grew 11% year-over-year to $552M in Q1, with global digital collections up 19% and Europe up 15%, indicating stronger cash flow and momentum in digital channels.
• U.S. legal collections rose 27% to $141M and represented 53% of U.S. core cash collections, as management continues to invest in legal channels that provide higher certainty of recovery despite a $15M rise in legal collection costs.
• Portfolio purchases were $221M in Q1 (part of $2.6B invested over the past two years), with ending recoverable cash (ERC) at $8.5B and a replenishment rate of about $1B, reflecting disciplined buying and continued scale across markets.
• Adjusted EBITDA (last 12 months) increased 14% to $1.3B, net income was $28M (EPS $0.73), and net leverage declined to 2.71x, supported by ample liquidity and a refinanced 5‑year European credit facility with no maturities until 2028.
• The new PRA 3.0 strategy prioritizes capital discipline, IT/AI modernization (one global cloud and one cloud‑based contact platform targeted by year‑end), and a Charlotte talent hub — a multi‑year plan expected to drive efficiency and returns over time.

PRA Group Stock Performance

Shares of PRA Group stock traded down $0.41 on Thursday, reaching $20.88. 646,785 shares of the company were exchanged, compared to its average volume of 319,749. The company’s 50-day moving average is $18.62 and its two-hundred day moving average is $16.38. The firm has a market cap of $796.36 million, a price-to-earnings ratio of -2.68 and a beta of 1.26. PRA Group has a 1-year low of $10.25 and a 1-year high of $22.55.

Analyst Ratings Changes

Several brokerages have recently commented on PRAA. Citizens Jmp cut shares of PRA Group from a “market outperform” rating to a “market perform” rating in a research report on Wednesday, January 28th. Weiss Ratings reaffirmed a “sell (d)” rating on shares of PRA Group in a report on Friday, March 27th. Finally, Citigroup lowered PRA Group from an “outperform” rating to a “market perform” rating in a research report on Wednesday, January 28th. One investment analyst has rated the stock with a Buy rating, three have given a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, PRA Group has an average rating of “Hold” and a consensus price target of $25.00.

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in the stock. Man Group plc boosted its holdings in shares of PRA Group by 80.2% during the second quarter. Man Group plc now owns 43,578 shares of the business services provider’s stock valued at $643,000 after acquiring an additional 19,390 shares during the period. PDT Partners LLC increased its holdings in shares of PRA Group by 9.2% in the 4th quarter. PDT Partners LLC now owns 29,534 shares of the business services provider’s stock worth $522,000 after acquiring an additional 2,500 shares during the period. Counterpoint Mutual Funds LLC bought a new stake in PRA Group in the 4th quarter valued at about $512,000. Balyasny Asset Management L.P. lifted its position in PRA Group by 133.4% in the 4th quarter. Balyasny Asset Management L.P. now owns 25,938 shares of the business services provider’s stock valued at $459,000 after purchasing an additional 14,826 shares during the last quarter. Finally, Ieq Capital LLC boosted its stake in PRA Group by 65.9% during the 4th quarter. Ieq Capital LLC now owns 25,169 shares of the business services provider’s stock valued at $445,000 after purchasing an additional 9,999 shares during the period. 97.22% of the stock is currently owned by institutional investors.

PRA Group Company Profile

PRA Group, Inc is a global specialty finance company focused on the acquisition and management of nonperforming loans. Founded in 1996 as Portfolio Recovery Associates, the company purchases defaulted consumer and commercial receivables at discounted rates from financial institutions, utilities and other creditors. By combining rigorous analytics with a consumer-centric ethos, PRA Group seeks to maximize recoveries while maintaining respectful and compliant interactions with debtors.

The company’s core activities include first-party and third-party collections across a range of asset classes such as credit cards, auto loans and utility receivables.