PRA Group (NASDAQ:PRAA) Announces Earnings Results

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

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 Performance

Shares of PRAA stock traded up $0.97 during trading hours on Thursday, hitting $12.67. 840,140 shares of the company were exchanged, compared to its average volume of 574,837. The stock has a market capitalization of $494.26 million, a price-to-earnings ratio of -1.44 and a beta of 1.29. PRA Group has a one year low of $10.25 and a one year high of $22.17. The business’s 50-day simple moving average is $14.58 and its two-hundred day simple moving average is $15.40.

Analyst Upgrades and Downgrades

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

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the company. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its holdings in 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 purchasing an additional 1,020 shares in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its position in shares of PRA Group by 3.8% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 109,004 shares of the business services provider’s stock valued at $2,248,000 after purchasing an additional 4,010 shares during the period. Cetera Investment Advisers raised its stake in shares of PRA Group by 28.8% in the 2nd quarter. Cetera Investment Advisers now owns 14,446 shares of the business services provider’s stock worth $213,000 after buying an additional 3,229 shares in the last quarter. JPMorgan Chase & Co. lifted its holdings in shares of PRA Group by 59.1% in the second quarter. JPMorgan Chase & Co. now owns 217,861 shares of the business services provider’s stock valued at $3,213,000 after buying an additional 80,945 shares during the period. Finally, Invesco Ltd. lifted its holdings in shares of PRA Group by 15.5% in the second quarter. Invesco Ltd. now owns 819,742 shares of the business services provider’s stock valued at $12,091,000 after buying an additional 109,857 shares during the period. Institutional investors own 97.22% of the company’s stock.

About PRA Group

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.