PRAA Soars 11.96% on Strong Q2 Earnings, Strategic Investments

PRA Group (PRAA) saw a significant rise of 11.96% in pre-market trading on August 5, 2025, driven by strong second-quarter earnings and strategic investments.

PRA Group reported a net income of $42.4 million for the second quarter, marking a 96.9% increase year-over-year. The company's earnings per share (EPS) stood at $1.08, surpassing the Zacks Consensus Estimate of $0.62. This robust performance was bolstered by a 21.9% increase in estimated remaining collections (ERC) to $8.3 billion and a 13.2% rise in total cash collections to $536.3 million. The company's cash efficiency ratio improved by 355 basis points to 62.4%, reflecting enhanced operational efficiency.

PRA Group's strategic investments and portfolio purchases played a crucial role in its financial performance. The company acquired $346.5 million in portfolios of nonperforming loans, although this was an 8.7% decrease from the previous year. The company's focus on high-return opportunities and attractive purchase price multiples contributed to its strong financial results. Additionally, PRA Group's European operations continued to perform well, with a 16% increase in adjusted EBITDA outpacing the 13% growth in cash collections.

Looking ahead, PRA Group is poised to continue its momentum with a focus on optimizing investments, operational execution, and managing expenses. The company's strategic pillars, including transforming its U.S. business and leveraging its global scale, are expected to drive long-term growth and shareholder value. With a strong foundation and a proven track record, PRA Group is well-positioned to navigate the challenges and opportunities in the nonperforming loan market.