PRA Group (NASDAQ:PRAA) Issues Earnings Results

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

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 Stock Performance

Shares of NASDAQ PRAA traded down $7.50 during mid-day trading on Friday, hitting $12.92. The stock had a trading volume of 1,772,632 shares, compared to its average volume of 372,295. The firm has a market cap of $486.44 million, a PE ratio of 3.16 and a beta of 1.15. The company has a 50 day moving average of $19.55 and a two-hundred day moving average of $17.59. PRA Group has a twelve month low of $10.25 and a twelve month high of $22.55.

Wall Street Analysts Forecast Growth

Several equities analysts recently commented on the stock. Wall Street Zen lowered shares of PRA Group from a “strong-buy” rating to a “buy” rating in a research report on Sunday, November 1st. Weiss Ratings upgraded shares of PRA Group from a “sell (d)” rating to a “sell (d+)” rating in a research note on Thursday, October 8th. Finally, Zacks Research downgraded shares of PRA Group from a “strong-buy” rating to a “hold” rating in a research report on Tuesday, October 6th. Three analysts have rated the stock with a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, the stock currently has a consensus rating of “Reduce”.

About PRA Group

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.