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

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

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 NASDAQ:PRAA traded down $0.41 during midday trading on Thursday, hitting $20.88. 646,785 shares of the stock were exchanged, compared to its average volume of 468,649. PRA Group has a 52-week low of $10.25 and a 52-week high of $22.55. The business’s fifty day simple moving average is $18.42 and its two-hundred day simple moving average is $16.32. The company has a market capitalization of $796.38 million, a PE ratio of -2.68 and a beta of 1.26.

Analysts Set New Price Targets

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

Hedge Funds Weigh In On PRA Group

Several hedge funds have recently bought and sold shares of the business. Wellington Management Group LLP increased its position in PRA Group by 13.7% during the fourth quarter. Wellington Management Group LLP now owns 1,296,830 shares of the business services provider’s stock worth $22,941,000 after buying an additional 156,520 shares during the last quarter. Tudor Investment Corp ET AL increased its position in PRA Group by 427.1% during the fourth quarter. Tudor Investment Corp ET AL now owns 81,468 shares of the business services provider’s stock worth $1,441,000 after buying an additional 66,011 shares during the last quarter. Millennium Management LLC increased its position in PRA Group by 242.6% during the fourth quarter. Millennium Management LLC now owns 464,320 shares of the business services provider’s stock worth $8,214,000 after buying an additional 328,804 shares during the last quarter. Engineers Gate Manager LP grew its position in shares of PRA Group by 57.9% in the fourth quarter. Engineers Gate Manager LP now owns 65,320 shares of the business services provider’s stock valued at $1,156,000 after purchasing an additional 23,943 shares during the last quarter. Finally, Balyasny Asset Management L.P. grew its position in shares of PRA Group by 133.4% in the fourth 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. 97.22% of the stock is owned by institutional investors and hedge funds.

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.