PRA Group Inc
NASDAQ:PRAA
PRA Group Inc
PRA Group, Inc. engages in the purchase, collection and management of portfolios of nonperforming loans. The company is headquartered in Norfolk, Virginia and currently employs 3,446 full-time employees. The company went IPO on 2002-11-08. The firm's primary business is the purchase, collection and management of portfolios of nonperforming loans. The firm purchase portfolios of nonperforming loans at a discount in two categories: Core and Insolvency. Its Core operation specializes in purchasing and collecting nonperforming loans, which it purchases since either the credit originator and/or other third-party collection agencies have been unsuccessful in collecting the full balance owed. Its Insolvency operation consists primarily of purchasing and collecting on nonperforming loan accounts where the customer is involved in a bankruptcy proceeding or the equivalent in some European countries. The company also provides fee-based services on class action claims recoveries and by servicing consumer bankruptcy accounts in the United States.
PRA Group, Inc. engages in the purchase, collection and management of portfolios of nonperforming loans. The company is headquartered in Norfolk, Virginia and currently employs 3,446 full-time employees. The company went IPO on 2002-11-08. The firm's primary business is the purchase, collection and management of portfolios of nonperforming loans. The firm purchase portfolios of nonperforming loans at a discount in two categories: Core and Insolvency. Its Core operation specializes in purchasing and collecting nonperforming loans, which it purchases since either the credit originator and/or other third-party collection agencies have been unsuccessful in collecting the full balance owed. Its Insolvency operation consists primarily of purchasing and collecting on nonperforming loan accounts where the customer is involved in a bankruptcy proceeding or the equivalent in some European countries. The company also provides fee-based services on class action claims recoveries and by servicing consumer bankruptcy accounts in the United States.
Record Performance: PRA Group delivered record annual revenue of $1.2 billion and record annual cash collections of $2.1 billion, both up double-digits year-over-year.
Cash Collections: Global cash collections grew 13% for the year and exceeded expectations by 7% in Q4, with strong growth driven by U.S. legal collections and digital channels.
Cost Initiatives: Significant cost reductions were achieved in the U.S., including a 42% reduction in call center agents and elimination of over 115 corporate roles, resulting in $20 million in gross annual savings.
Operational Leverage: Adjusted EBITDA rose 16% to $1.3 billion, outpacing cash collections growth and reflecting increased operating leverage despite continued investments.
Capital & Leverage: Net leverage declined to 2.7x from a peak of 2.9x, and PRA returned $20 million to shareholders through share repurchases.
Strategic Focus: Management emphasized disciplined investing, modernization of operations and IT, and ongoing expansion of AI and digital capabilities.
2026 Outlook: Company expects continued strong performance, stable portfolio supply, and further de-leveraging, with investments projected between $1 billion and $1.3 billion.
