PRA Group Reports Second Quarter 2025 Results
PRA Group (Nasdaq: PRAA), a global nonperforming loan acquisition and collection company, reported strong Q2 2025 results with net income of $42.4 million, up 96.9% year-over-year. The earnings include a $29.7 million after-tax gain from selling its RCB equity interest in Brazil.
Key highlights include record estimated remaining collections (ERC) of $8.3 billion, up 21.9%, and total cash collections of $536.3 million, increasing 13.2%. The company achieved a 62.4% cash efficiency ratio, improving by 355 basis points. Portfolio purchases totaled $346.5 million, with forward flow commitments of $311.2 million for the next 12 months.
Under new CEO Martin Sjolund, PRA Group is focusing on transforming its U.S. business across three strategic pillars: optimizing investments, operational execution, and managing expenses.
PRA Group (Nasdaq: PRAA), una società globale specializzata nell'acquisizione e riscossione di prestiti non performanti, ha riportato risultati solidi nel secondo trimestre del 2025 con un utile netto di 42,4 milioni di dollari, in aumento del 96,9% rispetto all'anno precedente. Gli utili includono un guadagno netto dopo le tasse di 29,7 milioni di dollari derivante dalla vendita della partecipazione azionaria in RCB in Brasile.
I punti salienti comprendono un record di stime sulle collezioni residue (ERC) pari a 8,3 miliardi di dollari, in crescita del 21,9%, e collezioni totali in contanti di 536,3 milioni di dollari, con un incremento del 13,2%. L'azienda ha raggiunto un rapporto di efficienza in contanti del 62,4%, migliorando di 355 punti base. Gli acquisti di portafogli hanno totalizzato 346,5 milioni di dollari, con impegni di flusso continuo per 311,2 milioni di dollari nei prossimi 12 mesi.
Sotto la guida del nuovo CEO Martin Sjolund, PRA Group si sta concentrando sulla trasformazione del suo business negli Stati Uniti basandosi su tre pilastri strategici: ottimizzazione degli investimenti, esecuzione operativa e gestione delle spese.
PRA Group (Nasdaq: PRAA), una compañía global dedicada a la adquisición y cobro de préstamos morosos, reportó sólidos resultados en el segundo trimestre de 2025 con un ingreso neto de 42,4 millones de dólares, un aumento del 96,9% interanual. Las ganancias incluyen una ganancia neta después de impuestos de 29,7 millones de dólares por la venta de su participación accionaria en RCB en Brasil.
Los aspectos destacados incluyen un récord en las colecciones estimadas restantes (ERC) de 8,3 mil millones de dólares, un incremento del 21,9%, y colecciones totales en efectivo de 536,3 millones de dólares, aumentando un 13,2%. La compañía logró una tasa de eficiencia en efectivo del 62,4%, mejorando en 355 puntos básicos. Las compras de cartera totalizaron 346,5 millones de dólares, con compromisos de flujo continuo por 311,2 millones de dólares para los próximos 12 meses.
Bajo la dirección del nuevo CEO Martin Sjolund, PRA Group se está enfocando en transformar su negocio en EE.UU. sobre tres pilares estratégicos: optimización de inversiones, ejecución operativa y gestión de gastos.
PRA Group (나스닥: PRAA)는 전 세계 부실 채권 인수 및 회수 회사로서 2025년 2분기에 4,240만 달러의 순이익을 기록하며 전년 대비 96.9% 증가한 강력한 실적을 발표했습니다. 이 수익에는 브라질 RCB 지분 매각으로 인한 세후 2,970만 달러의 이익이 포함되어 있습니다.
주요 하이라이트로는 212억 달러에 달하는 추정 잔여 회수액(ERC) 기록이 21.9% 증가했고, 총 현금 회수액 5억 3,630만 달러가 13.2% 증가했습니다. 회사는 현금 효율성 비율 62.4%를 달성하며 355 베이시스 포인트 개선했습니다. 포트폴리오 구매액은 3억 4,650만 달러였으며, 향후 12개월 동안 3억 1,120만 달러의 선행 플로우 약정을 체결했습니다.
신임 CEO 마틴 셸룬드(Martin Sjolund) 아래 PRA Group은 미국 사업을 세 가지 전략적 축, 즉 투자 최적화, 운영 실행, 비용 관리에 중점을 두고 변혁을 추진하고 있습니다.
PRA Group (Nasdaq : PRAA), une société mondiale spécialisée dans l'acquisition et le recouvrement de prêts non performants, a annoncé de solides résultats pour le deuxième trimestre 2025 avec un revenu net de 42,4 millions de dollars, en hausse de 96,9 % par rapport à l'année précédente. Les bénéfices comprennent un gain après impôts de 29,7 millions de dollars provenant de la vente de sa participation dans RCB au Brésil.
Les points clés incluent un record d'estimations des recouvrements restants (ERC) de 8,3 milliards de dollars, en hausse de 21,9 %, et des recouvrements totaux en espèces de 536,3 millions de dollars, en augmentation de 13,2 %. La société a atteint un taux d'efficacité en espèces de 62,4 %, s'améliorant de 355 points de base. Les achats de portefeuilles ont totalisé 346,5 millions de dollars, avec des engagements de flux continus de 311,2 millions de dollars pour les 12 prochains mois.
Sous la direction du nouveau PDG Martin Sjolund, PRA Group se concentre sur la transformation de ses activités aux États-Unis autour de trois piliers stratégiques : optimisation des investissements, exécution opérationnelle et gestion des dépenses.
PRA Group (Nasdaq: PRAA), ein global tätiges Unternehmen für den Erwerb und das Inkasso notleidender Kredite, meldete starke Ergebnisse für das zweite Quartal 2025 mit einem Nettoeinkommen von 42,4 Millionen US-Dollar, was einem Anstieg von 96,9 % gegenüber dem Vorjahr entspricht. Die Gewinne beinhalten einen nach Steuern 29,7 Millionen US-Dollar hohen Gewinn aus dem Verkauf der RCB-Beteiligung in Brasilien.
Wichtige Highlights sind ein rekordverdächtiger geschätzter verbleibender Inkasso-Bestand (ERC) von 8,3 Milliarden US-Dollar, ein Anstieg von 21,9 %, sowie Gesamtkasseneinnahmen von 536,3 Millionen US-Dollar, was einer Steigerung von 13,2 % entspricht. Das Unternehmen erreichte eine Bargeld-Effizienzrate von 62,4 %, eine Verbesserung um 355 Basispunkte. Portfoliokäufe beliefen sich auf 346,5 Millionen US-Dollar, mit Forward-Flow-Verpflichtungen von 311,2 Millionen US-Dollar für die nächsten 12 Monate.
Unter der Leitung des neuen CEO Martin Sjolund konzentriert sich die PRA Group auf die Transformation ihres US-Geschäfts entlang dreier strategischer Säulen: Investitionsoptimierung, operative Umsetzung und Kostenmanagement.
- Record ERC of $8.3 billion, up 21.9% year-over-year
- Net income increased 96.9% to $42.4 million ($1.08 per share)
- Cash collections grew 13.2% to $536.3 million
- Adjusted EBITDA increased 16.4% to $1.2 billion
- Cash efficiency ratio improved to 62.4%, up 355 basis points
- Portfolio income increased 19.9% to $250.9 million
- Total portfolio purchases decreased 8.7% to $346.5 million
- Interest expense increased 12.6% to $62.4 million due to higher debt balances
- Operating expenses rose 3.9% to $202.6 million
- Changes in expected future recoveries showed a negative $7 million impact in Q2 2025
Insights
PRA Group reported strong Q2 results with $42.4M net income, including a $29.7M gain from Brazil divestiture, amid 13.2% higher collections.
PRA Group delivered a solid Q2 2025 with
The company's fundamental metrics show encouraging trends. Cash collections increased
Portfolio purchasing declined
The European segment shows particular strength, with core European collections up
Operating expenses increased modestly by
The company maintains solid liquidity with
Strong Portfolio Purchases at Attractive Returns Driving Record ERC; Double-Digit Cash Collections Growth with
Net Income Attributable to PRA Group, Inc. of
Strong European Performance with Continued Focus on Transforming
Q2 2025 Highlights (vs. Q2 2024)
- Total portfolio purchases of
$346.5 million 8.7% , reflecting the lower target for full year 2025 of$1.2 billion $1.4 billion - Record estimated remaining collections (ERC)1 of
$8.3 billion 21.9% . - Total cash collections of
$536.3 million 13.2% . - Cash efficiency ratio2 of
62.4% , up 355 basis points. - Net income attributable to PRA Group, Inc. of
$42.4 million 96.9% , resulting in diluted earnings per share of$1.08 $29.7 million $0.75 Brazil . - Adjusted EBITDA3 for the 12 months ended June 30, 2025 of
$1.2 billion 16.4% .
1. | Refers to the sum of all future projected cash collections on the Company's nonperforming loan portfolios. |
2. | Calculated by dividing cash receipts less operating expenses by cash receipts. Cash receipts refers to cash collections on the Company's nonperforming loan portfolios, fees and revenue recognized from the Company's class action claims recovery services. |
3. | A reconciliation of net income, the most directly comparable financial measure calculated and reported in accordance with GAAP, to Adjusted EBITDA can be found at the end of this press release. |
4. | This transaction does not impact the Company's ownership of any portfolios in |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||
($ in thousands, except per share amounts) | 2025 | 2024 | 2025 | 2024 | ||||
Net income attributable to PRA Group, Inc. | $ 42,374 | $ 21,516 | $ 46,033 | $ 24,991 | ||||
Diluted earnings per share | $ 1.08 | $ 0.54 | $ 1.16 | $ 0.63 | ||||
"The second quarter represented another positive step in our journey of creating sustained shareholder value," said Martin Sjolund, president and chief executive officer. "We had another period of robust portfolio investments at attractive purchase price multiples, record ERC, and improved portfolio income as we continue to focus on high-return opportunities. Improvement in our cash efficiency ratio reflects the work we have been doing to increase cash collections and manage expenses, leading to Adjusted EBITDA growth that outpaced cash collections growth."
"More importantly, we have hit the ground running since I've stepped into the CEO role. Building on PRA's global scale and strong foundation, we are working with urgency to drive a meaningful improvement in our financial and operational results over the long term. Leveraging my experience strengthening and growing our European business with a proven multi-year track record of performance, we are accelerating the transformation of our
Cash Collections and Revenues
The following table presents cash collections by quarter and by source on an as reported and constant currency-adjusted basis:
Cash Collection Source | 2025 | 2024 | ||||||||
($ in thousands) | Q2 | Q1 | Q4 | Q3 | Q2 | |||||
$ 301,698 | $ 288,160 | $ 257,711 | $ 266,977 | $ 263,828 | ||||||
Americas Insolvency | 24,329 | 23,700 | 24,067 | 26,065 | 26,971 | |||||
Europe Core | 185,652 | 164,371 | 162,564 | 158,242 | 156,739 | |||||
Europe Insolvency | 24,609 | 21,205 | 23,724 | 25,826 | 26,344 | |||||
Total cash collections | $ 536,288 | $ 497,436 | $ 468,066 | $ 477,110 | $ 473,882 | |||||
Cash Collection Source - | ||||||||||
Constant Currency-Adjusted | 2025 | 2024 | ||||||||
($ in thousands) | Q2 | Q2 | ||||||||
$ 301,698 | $ 260,348 | |||||||||
Americas Insolvency | 24,329 | 26,935 | ||||||||
Europe Core | 185,652 | 166,348 | ||||||||
Europe Insolvency | 24,609 | 27,897 | ||||||||
Total cash collections | $ 536,288 | $ 481,528 | ||||||||
- Total cash collections in Q2 2025 increased
13.2% to$536.3 million $473.9 million
Three Months Ended June 30, | Six Months Ended June 30, | |||||||
($ in thousands) | 2025 | 2024 | 2025 | 2024 | ||||
Portfolio income | $ 250,934 | $ 209,290 | $ 491,892 | $ 411,346 | ||||
Recoveries collected in excess of forecast | $ 40,302 | $ 54,260 | $ 56,802 | $ 90,098 | ||||
Changes in expected future recoveries | (7,010) | 19,060 | 4,412 | 34,896 | ||||
Changes in expected recoveries | $ 33,292 | $ 73,320 | $ 61,214 | $ 124,994 | ||||
Total portfolio revenue | $ 284,226 | $ 282,610 | $ 553,106 | $ 536,340 | ||||
- Portfolio income in Q2 2025 increased
19.9% to$250.9 million $209.3 million - Total portfolio revenue in Q2 2025 increased
0.6% to$284.2 million $282.6 million
Expenses
- Operating expenses in Q2 2025 increased
3.9% to$202.6 million $195.0 million U.S. legal collections channel to drive future cash collections growth. - Interest expense, net in Q2 2025 increased
12.6% to$62.4 million $55.4 million - The effective tax rate for the six months ended June 30, 2025 was
26.5% .
Portfolio Purchases
Portfolio Purchase Source | 2025 | 2024 | ||||||||
($ in thousands) | Q2 | Q1 | Q4 | Q3 | Q2 | |||||
$ 177,097 | $ 165,503 | $ 194,063 | $ 263,613 | $ 198,761 | ||||||
Americas Insolvency | 22,186 | 12,953 | 9,460 | 10,162 | 26,627 | |||||
Europe Core | 142,465 | 108,390 | 220,875 | 71,507 | 127,991 | |||||
Europe Insolvency | 4,757 | 4,856 | 8,272 | 4,696 | 25,990 | |||||
Total portfolio acquisitions | $ 346,505 | $ 291,702 | $ 432,670 | $ 349,978 | $ 379,369 | |||||
- The Company purchased
$346.5 million 8.7% decrease compared to$379.4 million - At the end of Q2 2025, the Company had in place estimated forward flow commitments1 of
$311.2 million $210.6 million Americas andAustralia and$100.5 million Europe .
1. | Contractual agreements with sellers of nonperforming loans that allow for the purchase of nonperforming loan portfolios at pre-established prices. These amounts represent our estimated forward flow purchases over the next 12 months under the agreements in place based on projections and other factors, including sellers' estimates of future forward flow sales, and are dependent on actual delivery by the sellers and, in some cases, the impact of foreign exchange rate fluctuations. Accordingly, amounts purchased under these agreements may vary significantly. |
Credit Availability
- Total availability under the Company's credit facilities as of June 30, 2025 was
$840.7 million $521.6 million $319.1 million
Conference Call Information
PRA Group, Inc. will hold a conference call today at 5:00 p.m. ET to discuss its financial and operational results. To listen to a webcast of the call and view the accompanying slides, visit https://ir.pragroup.com/events-and-presentations. To listen by phone, call 646-357-8785 in the
About PRA Group, Inc.
As a global leader in acquiring and collecting nonperforming loans, PRA Group, Inc. returns capital to banks and other creditors to help expand financial services for consumers in the
About Forward Looking Statements
Statements made herein that are not historical in nature, including PRA Group, Inc.'s or its management's intentions, hopes, beliefs, expectations, representations, projections, plans or predictions of the future, are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended.
The forward-looking statements in this press release are based upon management's current beliefs, estimates, assumptions and expectations of PRA Group, Inc.'s future operations and financial and economic performance, taking into account currently available information. These statements are not statements of historical fact or guarantees of future performance, and there can be no assurance that anticipated events will transpire or that the Company's expectations will prove to be correct. Forward-looking statements involve risks and uncertainties, some of which are not currently known to PRA Group, Inc. Actual events or results may differ materially from those expressed or implied in any such forward-looking statements as a result of various factors, including the risk factors and other risks that are described from time to time in PRA Group, Inc.'s filings with the Securities and Exchange Commission, including PRA Group, Inc.'s annual reports on Form 10-K, its quarterly reports on Form 10-Q and its current reports on Form 8-K, which are available through PRA Group, Inc.'s website and contain a detailed discussion of PRA Group, Inc.'s business, including risks and uncertainties that may affect future results.
Due to such uncertainties and risks, you are cautioned not to place undue reliance on such forward-looking statements, which speak only as of today. Information in this press release may be superseded by more recent information or statements, which may be disclosed in later press releases, subsequent filings with the Securities and Exchange Commission or otherwise. Except as required by law, PRA Group, Inc. assumes no obligation to publicly update or revise its forward-looking statements contained herein to reflect any change in PRA Group, Inc.'s expectations with regard thereto or to reflect any change in events, conditions or circumstances on which any such forward-looking statements are based, in whole or in part.
PRA Group, Inc. Unaudited Consolidated Income Statements (Amounts in thousands, except per share amounts) | |||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||
2025 | 2024 | 2025 | 2024 | ||||
Revenues | |||||||
Portfolio income | $ 250,934 | $ 209,290 | $ 491,892 | $ 411,346 | |||
Changes in expected recoveries | 33,292 | 73,320 | 61,214 | 124,994 | |||
Total portfolio revenue | 284,226 | 282,610 | 553,106 | 536,340 | |||
Other revenue | 3,462 | 1,619 | 4,201 | 3,475 | |||
Total revenues | 287,688 | 284,229 | 557,307 | 539,815 | |||
Operating expenses | |||||||
Compensation and benefits | 75,724 | 74,241 | 149,047 | 147,838 | |||
Legal collection costs | 37,583 | 35,274 | 70,977 | 61,965 | |||
Legal collection fees | 15,625 | 13,762 | 30,855 | 25,874 | |||
Agency fees | 22,688 | 21,008 | 44,056 | 40,731 | |||
Professional and outside services | 21,071 | 18,124 | 42,174 | 43,174 | |||
Communication | 9,417 | 11,577 | 19,894 | 24,155 | |||
Rent and occupancy | 3,504 | 4,136 | 6,984 | 8,280 | |||
Depreciation, amortization and impairment | 2,503 | 2,637 | 6,272 | 5,357 | |||
Other operating expenses | 14,462 | 14,248 | 27,360 | 26,823 | |||
Total operating expenses | 202,577 | 195,007 | 397,619 | 384,197 | |||
Income from operations | 85,111 | 89,222 | 159,688 | 155,618 | |||
Other income/(expense) | |||||||
Interest expense, net | (62,361) | (55,353) | (123,331) | (107,631) | |||
Gain on sale of equity method investment | 38,403 | — | 38,403 | — | |||
Foreign exchange (loss)/gain, net | 50 | (99) | (1) | 128 | |||
Other | (75) | 46 | (255) | (160) | |||
Income before income taxes | 61,128 | 33,816 | 74,504 | 47,955 | |||
Income tax expense | 15,415 | 8,702 | 19,727 | 11,088 | |||
Net income | 45,713 | 25,114 | 54,777 | 36,867 | |||
Net income attributable to noncontrolling interests | 3,339 | 3,598 | 8,744 | 11,876 | |||
Net income attributable to PRA Group, Inc. | $ 42,374 | $ 21,516 | $ 46,033 | $ 24,991 | |||
Net income per common share attributable to PRA Group, Inc. | |||||||
Basic | $ 1.08 | $ 0.55 | $ 1.17 | $ 0.64 | |||
Diluted | $ 1.08 | $ 0.54 | $ 1.16 | $ 0.63 | |||
Weighted average number of shares outstanding | |||||||
Basic | 39,323 | 39,364 | 39,436 | 39,319 | |||
Diluted | 39,385 | 39,546 | 39,536 | 39,497 | |||
PRA Group, Inc. Consolidated Balance Sheets (Amounts in thousands) | |||
(unaudited) | |||
June 30, | December 31, | ||
ASSETS | |||
Cash and cash equivalents | $ 131,592 | $ 105,938 | |
Investments | 66,500 | 66,304 | |
Finance receivables, net | 4,562,576 | 4,140,742 | |
Income taxes receivable | 24,136 | 19,559 | |
Deferred tax assets, net | 92,226 | 75,134 | |
Right-of-use assets | 26,268 | 32,173 | |
Property and equipment, net | 26,391 | 29,498 | |
Goodwill | 439,449 | 396,357 | |
Other assets | 65,629 | 65,450 | |
Total assets | $ 5,434,767 | $ 4,931,155 | |
LIABILITIES AND EQUITY | |||
Liabilities | |||
Accrued expenses and accounts payable | $ 124,103 | $ 141,211 | |
Income taxes payable | 37,549 | 28,584 | |
Deferred tax liabilities, net | 22,460 | 16,813 | |
Lease liabilities | 29,453 | 36,437 | |
Interest-bearing deposits | 168,656 | 163,406 | |
Borrowings | 3,614,208 | 3,326,621 | |
Other liabilities | 41,727 | 24,476 | |
Total liabilities | 4,038,156 | 3,737,548 | |
Equity | |||
Preferred stock, | — | — | |
Common stock, | 391 | 395 | |
Additional paid-in capital | 14,086 | 17,882 | |
Retained earnings | 1,606,182 | 1,560,149 | |
Accumulated other comprehensive loss | (283,734) | (443,394) | |
Total stockholders' equity - PRA Group, Inc. | 1,336,925 | 1,135,032 | |
Noncontrolling interests | 59,686 | 58,575 | |
Total equity | 1,396,611 | 1,193,607 | |
Total liabilities and equity | $ 5,434,767 | $ 4,931,155 | |
Select Expenses (Income) Amounts in thousands, pre-tax | ||||||||
Three Months Ended | ||||||||
June 30, | March 31, | December 31, | September 30, | June 30, | March 31, | December 31, | September 30, | |
Noncash interest expense - | $ 1,962 | $ 1,901 | $ 2,241 | $ 3,795 | $ 2,331 | $ 2,200 | $ 2,177 | $ 2,220 |
Change in fair value of | (1,748) | (2,570) | (4,686) | (5,706) | (5,628) | (5,930) | (6,734) | (6,545) |
Amortization of intangibles | 52 | 49 | 58 | 60 | 58 | 60 | 69 | 69 |
Impairment of real estate | — | 831 | — | — | — | — | 202 | 5,037 |
Stock-based compensation | 4,465 | 3,788 | 3,337 | 3,251 | 3,555 | 3,327 | 2,952 | 1,629 |
Purchase Price Multiples as of June 30, 2025 Amounts in thousands | |||||
Purchase Period | Purchase Price (1)(2) | Total Estimated | Estimated | Current Purchase | Original Purchase |
1996-2014 | $ 2,336,839 | $ 6,681,453 | $ 78,176 | 286 % | 228 % |
2015 | 443,114 | 927,720 | 39,069 | 209 % | 205 % |
2016 | 455,767 | 1,100,505 | 50,637 | 241 % | 201 % |
2017 | 532,851 | 1,228,005 | 77,204 | 230 % | 193 % |
2018 | 653,975 | 1,547,865 | 112,494 | 237 % | 202 % |
2019 | 581,476 | 1,320,124 | 100,069 | 227 % | 206 % |
2020 | 435,668 | 961,557 | 108,427 | 221 % | 213 % |
2021 | 435,846 | 736,580 | 207,580 | 169 % | 191 % |
2022 | 406,082 | 720,041 | 264,772 | 177 % | 179 % |
2023 | 622,583 | 1,214,966 | 676,089 | 195 % | 197 % |
2024 | 823,662 | 1,734,516 | 1,394,320 | 211 % | 211 % |
2025 | 343,542 | 733,858 | 702,763 | 214 % | 214 % |
Subtotal | 8,071,405 | 18,907,190 | 3,811,600 | ||
Americas Insolvency | |||||
1996-2014 | 1,414,476 | 2,723,019 | 2 | 193 % | 155 % |
2015 | 63,170 | 88,194 | 6 | 140 % | 125 % |
2016 | 91,442 | 118,534 | 75 | 130 % | 123 % |
2017 | 275,257 | 359,352 | 521 | 131 % | 125 % |
2018 | 97,879 | 136,921 | 203 | 140 % | 127 % |
2019 | 123,077 | 167,454 | 682 | 136 % | 128 % |
2020 | 62,130 | 90,738 | 5,352 | 146 % | 136 % |
2021 | 55,187 | 74,574 | 12,891 | 135 % | 136 % |
2022 | 33,442 | 47,809 | 18,764 | 143 % | 139 % |
2023 | 91,282 | 119,901 | 69,577 | 131 % | 135 % |
2024 | 68,391 | 99,619 | 76,563 | 146 % | 149 % |
2025 | 35,189 | 55,793 | 55,042 | 159 % | 159 % |
Subtotal | 2,410,922 | 4,081,908 | 239,678 | ||
Total | 10,482,327 | 22,989,098 | 4,051,278 | ||
Europe Core | |||||
1996-2014 | 814,553 | 2,694,589 | 400,652 | 331 % | 205 % |
2015 | 411,340 | 766,350 | 127,274 | 186 % | 160 % |
2016 | 333,090 | 588,053 | 149,219 | 177 % | 167 % |
2017 | 252,174 | 364,311 | 89,269 | 144 % | 144 % |
2018 | 341,775 | 562,173 | 169,822 | 164 % | 148 % |
2019 | 518,610 | 872,535 | 307,692 | 168 % | 152 % |
2020 | 324,119 | 596,976 | 237,210 | 184 % | 172 % |
2021 | 412,411 | 723,959 | 372,728 | 176 % | 170 % |
2022 | 359,447 | 589,618 | 415,912 | 164 % | 162 % |
2023 | 410,593 | 695,957 | 527,680 | 170 % | 169 % |
2024 | 451,786 | 816,563 | 794,892 | 181 % | 180 % |
2025 | 264,668 | 481,332 | 469,955 | 182 % | 182 % |
Subtotal | 4,894,566 | 9,752,416 | 4,062,305 | ||
Europe Insolvency | |||||
2014 | 10,876 | 19,178 | — | 176 % | 129 % |
2015 | 18,973 | 29,587 | — | 156 % | 139 % |
2016 | 39,338 | 58,295 | 528 | 148 % | 130 % |
2017 | 39,235 | 52,549 | 396 | 134 % | 128 % |
2018 | 44,908 | 53,277 | 1,134 | 119 % | 123 % |
2019 | 77,218 | 114,367 | 7,026 | 148 % | 130 % |
2020 | 105,440 | 161,278 | 13,288 | 153 % | 129 % |
2021 | 53,230 | 77,420 | 16,550 | 145 % | 134 % |
2022 | 44,604 | 64,543 | 29,617 | 145 % | 137 % |
2023 | 46,558 | 66,232 | 44,836 | 142 % | 138 % |
2024 | 43,459 | 64,128 | 52,365 | 148 % | 147 % |
2025 | 10,186 | 15,399 | 14,987 | 151 % | 151 % |
Subtotal | 534,025 | 776,253 | 180,727 | ||
Total | 5,428,591 | 10,528,669 | 4,243,032 | ||
Total PRA Group | $ 15,910,918 | $ 33,517,767 | $ 8,294,310 | ||
(1) | Includes the acquisition date finance receivables portfolios that were acquired through our business acquisitions. |
(2) | Non- |
(3) | Non- |
(4) | Non- |
(5) | The original purchase price multiple represents the purchase price multiple at the end of the period of acquisition. |
Portfolio Financial Information (1) | ||||||
Amounts in thousands | ||||||
June 30, 2025 (year-to-date) | As of June 30, 2025 | |||||
Purchase Period | Cash | Portfolio | Change in | Total Portfolio | Net Finance Receivables (3) | |
1996-2014 | $ 23,044 | $ 10,330 | $ 10,120 | $ 20,450 | $ 26,393 | |
2015 | 7,178 | 4,293 | (718) | 3,575 | 16,724 | |
2016 | 9,619 | 5,698 | 955 | 6,653 | 18,634 | |
2017 | 15,270 | 7,890 | 3,210 | 11,100 | 32,512 | |
2018 | 26,944 | 11,767 | 3,909 | 15,676 | 58,310 | |
2019 | 26,477 | 11,886 | (2,579) | 9,307 | 52,962 | |
2020 | 29,633 | 12,447 | (2,096) | 10,351 | 58,619 | |
2021 | 34,910 | 18,512 | (3,173) | 15,339 | 107,468 | |
2022 | 49,942 | 21,982 | (59) | 21,923 | 157,702 | |
2023 | 124,806 | 62,995 | (24,093) | 38,902 | 369,079 | |
2024 | 211,045 | 128,793 | 8,423 | 137,216 | 732,714 | |
2025 | 30,990 | 23,444 | 4,794 | 28,238 | 340,417 | |
Subtotal | 589,858 | 320,037 | (1,307) | 318,730 | 1,971,534 | |
Americas Insolvency | ||||||
1996-2014 | 501 | 13 | 494 | 507 | — | |
2015 | 60 | 4 | 52 | 56 | 4 | |
2016 | 162 | 11 | 84 | 95 | 67 | |
2017 | 596 | 57 | 309 | 366 | 463 | |
2018 | 624 | 23 | 280 | 303 | 189 | |
2019 | 1,701 | 63 | 378 | 441 | 644 | |
2020 | 5,937 | 533 | (504) | 29 | 5,083 | |
2021 | 6,362 | 915 | 193 | 1,108 | 11,809 | |
2022 | 5,559 | 1,154 | 339 | 1,493 | 16,338 | |
2023 | 14,789 | 4,316 | 487 | 4,803 | 57,511 | |
2024 | 10,990 | 5,672 | (1,370) | 4,302 | 56,047 | |
2025 | 748 | 1,019 | 512 | 1,531 | 35,689 | |
Subtotal | 48,029 | 13,780 | 1,254 | 15,034 | 183,844 | |
Total | 637,887 | 333,817 | (53) | 333,764 | 2,155,378 | |
Europe Core | ||||||
1996-2014 | 48,559 | 29,327 | 12,846 | 42,173 | 90,532 | |
2015 | 14,747 | 6,024 | 5,641 | 11,665 | 62,911 | |
2016 | 13,241 | 5,837 | 2,311 | 8,148 | 84,225 | |
2017 | 7,861 | 2,879 | (1,468) | 1,411 | 59,384 | |
2018 | 17,709 | 6,247 | 1,880 | 8,127 | 109,923 | |
2019 | 31,282 | 9,921 | 10,728 | 20,649 | 207,280 | |
2020 | 23,120 | 8,660 | 7,602 | 16,262 | 144,188 | |
2021 | 30,880 | 12,868 | 5,256 | 18,124 | 225,257 | |
2022 | 35,193 | 13,631 | 975 | 14,606 | 261,956 | |
2023 | 47,512 | 19,141 | 3,134 | 22,275 | 315,245 | |
2024 | 68,963 | 29,804 | 1,798 | 31,602 | 442,315 | |
2025 | 10,956 | 4,527 | 2,271 | 6,798 | 259,519 | |
Subtotal | 350,023 | 148,866 | 52,974 | 201,840 | 2,262,735 | |
Europe Insolvency | ||||||
2014 | 82 | — | 82 | 82 | — | |
2015 | 87 | — | 87 | 87 | — | |
2016 | 289 | 42 | 233 | 275 | 136 | |
2017 | 626 | 24 | 398 | 422 | 261 | |
2018 | 976 | 52 | 288 | 340 | 972 | |
2019 | 3,678 | 362 | 339 | 701 | 6,034 | |
2020 | 9,302 | 728 | 1,440 | 2,168 | 12,348 | |
2021 | 7,341 | 898 | 2,087 | 2,985 | 14,880 | |
2022 | 7,844 | 1,505 | 1,514 | 3,019 | 25,059 | |
2023 | 7,721 | 2,191 | 1,075 | 3,266 | 36,493 | |
2024 | 7,472 | 3,113 | 660 | 3,773 | 38,113 | |
2025 | 396 | 294 | 90 | 384 | 10,167 | |
Subtotal | 45,814 | 9,209 | 8,293 | 17,502 | 144,463 | |
Total | 395,837 | 158,075 | 61,267 | 219,342 | 2,407,198 | |
Total PRA Group | $ 1,033,724 | $ 491,892 | $ 61,214 | $ 553,106 | $ 4,562,576 | |
(1) | Includes the nonperforming loan portfolios that were acquired through our business acquisitions. |
(2) | Non- |
(3) | Non- |
Cash Collections by Year, By Year of Purchase (1) as of June 30, 2025 Amounts in millions | ||||||||||||||
Cash Collections | ||||||||||||||
Purchase Period | Purchase | 1996-2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Total |
1996-2014 | $ 2,336.8 | $ 4,371.9 | $ 96.6 | $ 68.8 | $ 51.0 | $ 40.2 | $ 49.4 | $ 23.0 | ||||||
2015 | 443.1 | — | 117.0 | 228.4 | 185.9 | 126.6 | 83.6 | 57.2 | 34.9 | 19.5 | 14.1 | 17.3 | 7.2 | 891.7 |
2016 | 455.8 | — | — | 138.7 | 256.5 | 194.6 | 140.6 | 105.9 | 74.2 | 38.4 | 24.9 | 24.0 | 9.6 | 1007.4 |
2017 | 532.9 | — | — | — | 107.3 | 278.7 | 256.5 | 192.5 | 130.0 | 76.3 | 43.8 | 39.2 | 15.3 | 1139.6 |
2018 | 654.0 | — | — | — | — | 122.7 | 361.9 | 337.7 | 239.9 | 146.1 | 92.9 | 75.9 | 26.9 | 1404.0 |
2019 | 581.5 | — | — | — | — | — | 143.8 | 349.0 | 289.8 | 177.7 | 110.3 | 77.7 | 26.5 | 1174.8 |
2020 | 435.7 | — | — | — | — | — | — | 132.9 | 284.3 | 192.0 | 125.8 | 87.0 | 29.6 | 851.6 |
2021 | 435.8 | — | — | — | — | — | — | — | 85.0 | 177.3 | 136.8 | 98.4 | 34.9 | 532.4 |
2022 | 406.1 | — | — | — | — | — | — | — | — | 67.7 | 195.4 | 144.7 | 49.9 | 457.7 |
2023 | 622.5 | — | — | — | — | — | — | — | — | — | 108.5 | 285.9 | 124.8 | 519.2 |
2024 | 823.7 | — | — | — | — | — | — | — | — | — | — | 145.9 | 211.0 | 356.9 |
2025 | 343.5 | — | — | — | — | — | — | — | — | — | — | — | 31.0 | 31.0 |
Subtotal | 8,071.4 | 4,371.9 | 844.8 | 837.1 | 860.9 | 945.1 | 1,141.4 | 1,271.8 | 1,206.9 | 946.0 | 892.7 | 1,045.4 | 589.7 | 14,953.7 |
Americas Insolvency | ||||||||||||||
1996-2014 | 1,414.5 | 1,949.8 | 340.8 | 213.0 | 122.9 | 59.1 | 22.6 | 5.8 | 3.3 | 2.3 | 1.5 | 1.3 | 0.5 | 2,722.9 |
2015 | 63.2 | — | 3.4 | 17.9 | 20.1 | 19.8 | 16.7 | 7.9 | 1.3 | 0.6 | 0.3 | 0.2 | 0.1 | 88.3 |
2016 | 91.4 | — | — | 18.9 | 30.4 | 25.0 | 19.9 | 14.4 | 7.4 | 1.8 | 0.9 | 0.6 | 0.2 | 119.5 |
2017 | 275.3 | — | — | — | 49.1 | 97.3 | 80.9 | 58.8 | 44.0 | 20.8 | 4.9 | 2.5 | 0.6 | 358.9 |
2018 | 97.9 | — | — | — | — | 6.7 | 27.4 | 30.5 | 31.6 | 24.6 | 12.7 | 2.5 | 0.6 | 136.6 |
2019 | 123.1 | — | — | — | — | — | 13.4 | 31.4 | 39.1 | 37.8 | 28.7 | 14.6 | 1.7 | 166.7 |
2020 | 62.1 | — | — | — | — | — | — | 6.5 | 16.1 | 20.4 | 19.5 | 17.0 | 5.9 | 85.4 |
2021 | 55.2 | — | — | — | — | — | — | — | 4.6 | 17.9 | 17.5 | 15.3 | 6.4 | 61.7 |
2022 | 33.4 | — | — | — | — | — | — | — | — | 3.2 | 9.2 | 11.1 | 5.6 | 29.1 |
2023 | 91.2 | — | — | — | — | — | — | — | — | — | 9.0 | 25.1 | 14.8 | 48.9 |
2024 | 68.4 | — | — | — | — | — | — | — | — | — | — | 12.1 | 11.0 | 23.1 |
2025 | 35.2 | — | — | — | — | — | — | — | — | — | — | — | 0.7 | 0.7 |
Subtotal | 2,410.9 | 1,949.8 | 344.2 | 249.8 | 222.5 | 207.9 | 180.9 | 155.3 | 147.4 | 129.4 | 104.2 | 102.3 | 48.1 | 3,841.8 |
Total | 10,482.3 | 6,321.7 | 1,189.0 | 1,086.9 | 1,083.4 | 1,153.0 | 1,322.3 | 1,427.1 | 1,354.3 | 1,075.4 | 996.9 | 1,147.7 | 637.8 | 18,795.5 |
Europe Core | ||||||||||||||
1996-2014 | 814.5 | 195.1 | 297.5 | 249.9 | 224.1 | 209.6 | 175.3 | 151.7 | 151.0 | 123.6 | 108.6 | 101.7 | 48.6 | 2,036.7 |
2015 | 411.3 | — | 45.8 | 100.3 | 86.2 | 80.9 | 66.1 | 54.3 | 51.4 | 40.7 | 33.8 | 30.4 | 14.7 | 604.6 |
2016 | 333.1 | — | — | 40.4 | 78.9 | 72.6 | 58.0 | 48.3 | 46.7 | 36.9 | 29.7 | 27.4 | 13.2 | 452.1 |
2017 | 252.2 | — | — | — | 17.9 | 56.0 | 44.1 | 36.1 | 34.8 | 25.2 | 20.2 | 17.9 | 7.9 | 260.1 |
2018 | 341.8 | — | — | — | — | 24.3 | 88.7 | 71.3 | 69.1 | 50.7 | 41.6 | 37.1 | 17.7 | 400.5 |
2019 | 518.6 | — | — | — | — | — | 48.0 | 125.7 | 121.4 | 89.8 | 75.1 | 68.2 | 31.3 | 559.5 |
2020 | 324.1 | — | — | — | — | — | — | 32.3 | 91.7 | 69.0 | 56.1 | 50.1 | 23.1 | 322.3 |
2021 | 412.4 | — | — | — | — | — | — | — | 48.5 | 89.9 | 73.0 | 66.6 | 30.9 | 308.9 |
2022 | 359.4 | — | — | — | — | — | — | — | — | 33.9 | 83.8 | 74.7 | 35.2 | 227.6 |
2023 | 410.6 | — | — | — | — | — | — | — | — | — | 50.2 | 103.1 | 47.5 | 200.8 |
2024 | 451.9 | — | — | — | — | — | — | — | — | — | — | 46.3 | 69.0 | 115.3 |
2025 | 264.7 | — | — | — | — | — | — | — | — | — | — | — | 11.0 | 11.0 |
Subtotal | 4,894.6 | 195.1 | 343.3 | 390.6 | 407.1 | 443.4 | 480.2 | 519.7 | 614.6 | 559.7 | 572.1 | 623.5 | 350.1 | 5,499.4 |
Europe Insolvency | ||||||||||||||
2014 | 10.9 | — | 4.3 | 3.9 | 3.2 | 2.6 | 1.5 | 0.8 | 0.3 | 0.2 | 0.2 | 0.2 | 0.1 | 17.3 |
2015 | 19.0 | — | 3.0 | 4.4 | 5.0 | 4.8 | 3.9 | 2.9 | 1.6 | 0.6 | 0.4 | 0.2 | 0.1 | 26.9 |
2016 | 39.3 | — | — | 6.2 | 12.7 | 12.9 | 10.7 | 7.9 | 6.0 | 2.7 | 1.3 | 0.8 | 0.3 | 61.5 |
2017 | 39.2 | — | — | — | 1.2 | 7.9 | 9.2 | 9.8 | 9.4 | 6.5 | 3.8 | 1.5 | 0.6 | 49.9 |
2018 | 44.9 | — | — | — | — | 0.6 | 8.4 | 10.3 | 11.7 | 9.8 | 7.2 | 3.5 | 1.0 | 52.5 |
2019 | 77.2 | — | — | — | — | — | 5.0 | 21.1 | 23.9 | 21.0 | 17.5 | 12.9 | 3.7 | 105.1 |
2020 | 105.4 | — | — | — | — | — | — | 6.0 | 34.6 | 34.1 | 29.7 | 25.5 | 9.3 | 139.2 |
2021 | 53.2 | — | — | — | — | — | — | — | 5.5 | 14.4 | 14.7 | 15.4 | 7.3 | 57.3 |
2022 | 44.6 | — | — | — | — | — | — | — | — | 4.5 | 12.4 | 15.2 | 7.8 | 39.9 |
2023 | 46.7 | — | — | — | — | — | — | — | — | — | 4.2 | 12.7 | 7.7 | 24.6 |
2024 | 43.4 | — | — | — | — | — | — | — | — | — | — | 9.5 | 7.5 | 17.0 |
2025 | 10.2 | — | — | — | — | — | — | — | — | — | — | — | 0.4 | 0.4 |
Subtotal | 534.0 | — | 7.3 | 14.5 | 22.1 | 28.8 | 38.7 | 58.8 | 93.0 | 93.8 | 91.4 | 97.4 | 45.8 | 591.6 |
Total | 5,428.6 | 195.1 | 350.6 | 405.1 | 429.2 | 472.2 | 518.9 | 578.5 | 707.6 | 653.5 | 663.5 | 720.9 | 395.9 | 6,091.0 |
Total PRA Group | $ 15,910.9 | $ 6,516.8 | $ 1,539.6 | $ 1,492.0 | $ 1,512.6 | $ 1,625.2 | $ 1,841.2 | $ 2,005.6 | $ 2,061.9 | $ 1,728.9 | $ 1,660.4 | $ 1,868.6 | $ 1,033.7 | $ 24,886.5 |
(1) | Non- |
(2) | Includes the acquisition date finance receivables portfolios acquired through our business acquisitions. |
(3) | Non- |
Use of Non-GAAP Financial Measures
The Company reports its financial results in accordance with
LTM | For the Year Ended | |
Adjusted EBITDA Reconciliation ($ in thousands) | June 30, 2025 | December 31, 2024 |
Net income attributable to PRA Group, Inc. | $ 91,643 | $ 70,601 |
Adjustments: | ||
Income tax expense | 29,671 | 21,032 |
Foreign exchange loss | 138 | 9 |
Interest expense, net | 244,967 | 229,267 |
Other expense | 946 | 851 |
Depreciation and amortization | 10,876 | 10,792 |
Impairment of real estate | 831 | — |
Net income attributable to noncontrolling interests | 14,840 | 17,972 |
Gain on sale of equity method investment | (38,403) | — |
Recoveries collected and applied to Finance receivables, net less | 884,583 | 787,028 |
Adjusted EBITDA | $ 1,240,092 | $ 1,137,552 |
In addition, the Company uses return on average tangible equity ("ROATE"), which is a supplemental measure of performance that is not required by, or presented in accordance with, GAAP, to monitor and evaluate operating performance relative to the Company's equity. Management believes ROATE is a useful financial measure for investors in evaluating the effective use of equity, and is an important component of its long-term stockholder return. Average tangible equity is defined as average Total stockholders' equity - PRA Group, Inc. less average goodwill and average other intangible assets. ROATE is calculated by dividing annualized Net income attributable to PRA Group, Inc. by average tangible equity.
ROATE may include certain items that are not indicative of the operating results of the Company's portfolio. Accordingly, the Company also uses Adjusted ROATE, which is defined as ROATE excluding the impact of gains/losses from the sale of equity method investments, to monitor and evaluate operating performance relative to the Company's equity. Management believes that Adjusted ROATE is a useful financial measure for investors because it excludes the impact of gains/losses that are not indicative of the operating results of the Company's portfolio.
The following table provides a reconciliation of Total stockholders' equity - PRA Group, Inc. as reported in accordance with GAAP to average tangible equity. The table also provides a reconciliation of net income attributable to PRA Group, Inc. to adjusted net income attributable to PRA Group, Inc. and provides the Company's ROATE and Adjusted ROATE for the periods indicated (in thousands, except for ratio data):
Average Tangible Equity Reconciliation (1) | |||||||||||||
Balance as of Period End | Second Quarter | Year-to-Date | |||||||||||
June 30, 2025 | June 30, 2024 | 2025 | 2024 | 2025 | 2024 | ||||||||
Total stockholders' equity - | $ 1,336,925 | $ 1,145,463 | $ 1,278,016 | $ 1,137,395 | $ 1,230,355 | $ 1,147,300 | |||||||
Less: Goodwill | 439,449 | 415,646 | 430,082 | 413,746 | 418,840 | 419,685 | |||||||
Less: Other intangible assets | 1,541 | 1,597 | 1,515 | 1,632 | 1,494 | 1,668 | |||||||
Average tangible equity | $ 846,419 | $ 722,017 | $ 810,021 | $ 725,947 | |||||||||
ROATE (2) | |||||||||||||
Second Quarter | Year-to-Date | ||||||||||||
2025 | 2024 | 2025 | 2024 | ||||||||||
Net income attributable to PRA | $ 42,374 | $ 21,516 | $ 46,033 | $ 24,991 | |||||||||
Return on average tangible | 20.0 % | 11.9 % | 11.4 % | 6.9 % | |||||||||
Adjusted ROATE (3) | |||||||||||||
Second Quarter | Year-to-Date | ||||||||||||
2025 | 2024 | 2025 | 2024 | ||||||||||
Net income attributable to PRA | |||||||||||||
Less: Gain on sale of equity | $ (29,686) | $ — | $ (29,686) | $ — | |||||||||
Adjusted net income | |||||||||||||
Adjusted ROATE | 6.0 % | 11.9 % | 4.0 % | 6.9 % | |||||||||
1. | Amounts represent the average balances for the respective periods. Equity balances are not adjusted for gain on sale of equity method investment, which would have a de minimus effect on Adjusted ROATE. |
2. | Based on annualized Net income attributable to PRA Group, Inc. |
3. | Based on annualized Adjusted net income attributable to PRA Group, Inc. |
Investor Contact:
Najim Mostamand, CFA
Vice President, Investor Relations
757-431-7913
IR@PRAGroup.com
News Media Contact:
Giovanna Genard
Vice President, Global Communications and External Affairs | Marketing Leader
(757) 282-3343
mediainquiries@pragroup.com
View original content to download multimedia:https://www.prnewswire.com/news-releases/pra-group-reports-second-quarter-2025-results-302521045.html
SOURCE PRA Group, Inc.
FAQ
What were PRAA's Q2 2025 earnings per share and net income?
How much did PRA Group's cash collections grow in Q2 2025?
What is PRA Group's estimated remaining collections (ERC) for Q2 2025?
How much did PRAA spend on portfolio purchases in Q2 2025?
What is PRA Group's cash efficiency ratio for Q2 2025?
