PRA Group (NASDAQ:PRAA) Releases Quarterly Earnings Results, Misses Expectations By $0.41 EPS

PRA Group (NASDAQ:PRAA) announced its earnings results on Thursday. The business services provider reported $0.39 earnings per share for the quarter, missing the consensus estimate of $0.80 by ($0.41), FiscalAI reports. The firm had revenue of $286.27 million for the quarter, compared to the consensus estimate of $307.40 million. PRA Group had a negative net margin of 19.91% and a positive return on equity of 15.56%.

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

PRAA traded down $7.50 during mid-day trading on Friday, reaching $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 stock has a market capitalization of $486.44 million, a P/E ratio of 3.16 and a beta of 1.15. The firm’s fifty day simple moving average is $19.55 and its two-hundred day simple moving average is $17.59.

Wall Street Analysts Forecast Growth

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