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.
Strong Collections: Cash collections grew 14% year-over-year to $542 million, exceeding expectations globally (8% above forecast), with the U.S. overperforming by 6% and Europe by 10%.
Impairment Charge: A nonrecurring noncash goodwill impairment charge of $413 million, related mainly to historical European acquisitions, resulted in a reported net loss of $408 million.
Adjusted Profitability: Excluding the impairment, adjusted net income was $21 million and adjusted EBITDA rose 15% to $1.3 billion over the last 12 months.
Cost Reduction: Over 250 roles were eliminated and a cost program targeting $20 million in gross annualized savings was implemented, helping improve operational leverage.
Guidance Reaffirmed: Management reaffirmed the 2025 targets for $1.2 billion in portfolio purchases, high single-digit cash collections growth, and over 60% cash efficiency.
Operational Progress: Key strategic moves included restructuring U.S. operations, expanding legal and digital collections channels, and advancing IT modernization.
Capital Structure: Net leverage declined to 2.8x, and the company strengthened funding flexibility with a new €300 million Eurobond and no major debt maturities until late 2027.
