PRA Group (NASDAQ:PRAA – Get Free Report) announced its quarterly earnings data 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. The firm had revenue of $286.27 million for the quarter, compared to analysts’ expectations 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 Trading Down 36.7%
Shares of PRAA traded down $7.50 during trading hours on Friday, reaching $12.92. The company had a trading volume of 1,772,632 shares, compared to its average volume of 372,295. The firm has a 50 day simple moving average of $19.55 and a 200-day simple moving average of $17.59. The company has a market capitalization of $486.44 million, a price-to-earnings ratio of 3.16 and a beta of 1.15. PRA Group has a 12-month low of $10.25 and a 12-month high of $22.55.
Analyst Upgrades and Downgrades
PRAA has been the topic of several analyst reports. Zacks Research downgraded shares of PRA Group from a “strong-buy” rating to a “hold” rating in a report on Tuesday, October 6th. Wall Street Zen lowered shares of PRA Group from a “strong-buy” rating to a “buy” rating in a research note on Sunday, November 1st. Finally, Weiss Ratings raised shares of PRA Group from a “sell (d)” rating to a “sell (d+)” rating in a report on Thursday, October 8th. Three research analysts have rated the stock with a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock has an average rating of “Reduce”.
Check Out Our Latest Report on PRAA
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.
Featured Stories
- Five stocks we like better than PRA Group
- Dutch Bros Gave Wall Street What It Wanted, So Why Did the Stock Crater?
- Astera Labs Just Crushed Earnings—So Why Are Analysts Cutting Price Targets?
- Sandisk Shares Are Oversold: Bargain or Value Trap?
- IonQ’s Record Revenue Includes a Big SkyWater Boost: Does That Change the Story?
Receive News & Ratings for PRA Group Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for PRA Group and related companies with MarketBeat.com's FREE daily email newsletter.
