PRA Group (NASDAQ:PRAA) Posts Earnings Results, Beats Expectations By $0.96 EPS

PRA Group (NASDAQ:PRAA) announced its earnings results on Thursday. The business services provider reported $1.46 earnings per share for the quarter, topping analysts’ consensus estimates of $0.50 by $0.96, FiscalAI reports. The company had revenue of $333.39 million for the quarter, compared to analyst estimates of $288.86 million. PRA Group had a positive return on equity of 7.03% and a negative net margin of 29.55%.

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

• Record ERC of $8.6 billion and record cash collections of $2.1 billion in 2025 helped drive adjusted EBITDA to $1.3 billion (up 16%), indicating improving operating leverage.
• Management is deliberately investing in the U.S. legal channel and digital/AI initiatives — including ~$125 million of legal investments in 2025 — which materially increased legal collections and digital receipts and are expected to lift long‑term cash generation.
• The balance sheet strengthened with net leverage down to 2.7x, $3.2 billion of committed capital (about $1.1 billion available) and $20 million of share repurchases, supporting continued de‑leveraging and opportunistic buybacks.
• A $413 million non‑cash goodwill impairment produced a GAAP net loss of $305 million for the year and the company warns of quarter‑to‑quarter earnings variability despite positive adjusted results, signaling ongoing headline volatility for investors.

PRA Group Stock Up 8.3%

Shares of PRAA stock opened at $12.67 on Friday. The business has a fifty day simple moving average of $14.58 and a 200 day simple moving average of $15.40. The company has a market cap of $494.26 million, a P/E ratio of -1.44 and a beta of 1.29. PRA Group has a twelve month low of $10.25 and a twelve month high of $22.17.

Institutional Investors Weigh In On PRA Group

A number of hedge funds have recently made changes to their positions in PRAA. The Manufacturers Life Insurance Company grew its holdings in shares of PRA Group by 5.6% during the 2nd quarter. The Manufacturers Life Insurance Company now owns 14,523 shares of the business services provider’s stock valued at $214,000 after purchasing an additional 768 shares during the last quarter. Focus Partners Wealth lifted its stake in PRA Group by 1.0% in the 4th quarter. Focus Partners Wealth now owns 94,900 shares of the business services provider’s stock valued at $1,679,000 after purchasing an additional 927 shares during the last quarter. Mariner LLC boosted its position in PRA Group by 3.2% in the third quarter. Mariner LLC now owns 31,045 shares of the business services provider’s stock valued at $479,000 after buying an additional 975 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its stake in shares of PRA Group by 4.6% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 23,081 shares of the business services provider’s stock worth $476,000 after buying an additional 1,020 shares during the last quarter. Finally, Federation des caisses Desjardins du Quebec grew its stake in shares of PRA Group by 1.4% during the fourth quarter. Federation des caisses Desjardins du Quebec now owns 77,216 shares of the business services provider’s stock worth $1,366,000 after buying an additional 1,100 shares during the last quarter. 97.22% of the stock is currently owned by institutional investors and hedge funds.

Analysts Set New Price Targets

A number of equities research analysts have recently issued reports on PRAA shares. Zacks Research cut shares of PRA Group from a “strong-buy” rating to a “hold” rating in a research report on Monday, January 5th. Citigroup cut shares of PRA Group from an “outperform” rating to a “market perform” rating in a research note on Wednesday, January 28th. Weiss Ratings reissued a “sell (d)” rating on shares of PRA Group in a report on Monday, December 29th. Citizens Jmp lowered shares of PRA Group from a “market outperform” rating to a “market perform” rating in a research report on Wednesday, January 28th. Finally, Truist Financial dropped their price target on shares of PRA Group from $33.00 to $26.00 and set a “buy” rating for the company in a research report on Tuesday, November 4th. One research analyst has rated the stock with a Buy rating, three have given a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat, the company has an average rating of “Hold” and a consensus price target of $25.00.

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.