PRA Group (NASDAQ:PRAA) Issues Quarterly Earnings Results

PRA Group (NASDAQ:PRAA) issued its quarterly earnings results on Thursday. The business services provider reported $0.39 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.80 by ($0.41), FiscalAI reports. The firm had revenue of $286.27 million during the quarter, compared to analyst estimates 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 Stock Down 36.7%

Shares of NASDAQ PRAA traded down $7.50 during midday 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. PRA Group has a 52 week low of $10.25 and a 52 week high of $22.55. The company has a market cap of $486.44 million, a P/E ratio of 3.16 and a beta of 1.15. The business’s 50 day moving average is $19.55 and its 200-day moving average is $17.59.

Analysts Set New Price Targets

Several equities analysts recently weighed in on PRAA shares. Zacks Research cut shares of PRA Group from a “strong-buy” rating to a “hold” rating in a research report on Tuesday, October 6th. Wall Street Zen downgraded PRA Group from a “strong-buy” rating to a “buy” rating in a research note on Sunday, November 1st. Finally, Weiss Ratings raised PRA Group from a “sell (d)” rating to a “sell (d+)” rating in a research report on Thursday, October 8th. Three research analysts have rated the stock with a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat, the company currently 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.