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PRA Group (PRAA) Up 8.6% Since Last Earnings Report: Can It Continue?
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A month has gone by since the last earnings report for PRA Group (PRAA - Free Report) . Shares have added about 8.6% in that time frame, outperforming the S&P 500.
But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is PRA Group due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
PRA Group Q2 Earnings Beat Estimates on Rising Cash Collections
PRA Group reported second-quarter 2025 earnings per share (EPS) of $1.08, which beat the Zacks Consensus Estimate by 74.2%. The bottom line rose from 54 cents per share a year ago.
Total revenues improved 1.2% year over year to $287.7 million. The top line beat the consensus mark by 4.2%.
The strong quarterly results benefited from improved cash collections and higher portfolio income. A significant increase in other revenues also aided the results. However, the upside was partly offset due to rising operating costs attributed to higher legal collection costs and fees.
PRA Group’s Quarterly Operational Update
PRA Group’s cash collections were $536.3 million, which advanced 13.2% year over year and beat the Zacks Consensus Estimate of $519 million. The metric was aided by higher cash collections across the United States and Europe.
Portfolio income rose 19.9% year over year to $250.9 million and surpassed the consensus mark of $249 million. Other revenues of $3.5 million increased significantly from the figure of $1.6 million a year ago and beat the consensus mark of $1.2 million.
Total operating expenses rose 3.9% year over year to $202.6 million due to increased compensation and benefits expenses, legal collection costs, legal collection fees, professional and outside services costs, and other operating expenses.
PRAA’s net income of $45.7 million rose 82% year over year in the second quarter.
The company purchased nonperforming loan portfolios of $346.5 million, which declined 8.7% year over year. The cash efficiency ratio improved 355 basis points year over year to 62.4%. The estimated remaining collections amounted to $8.3 billion at the second-quarter end, up 21.9% year over year.
PRAA’s Financial Update (As of June 30, 2025)
PRA Group exited the second quarter with cash and cash equivalents of $131.6 million, which advanced from the figure of $105.9 million at 2024-end. It had $840.7 million remaining under its credit facilities at the second-quarter end.
Total assets of $5.4 billion increased from the 2024-end level of $4.9 billion.
Borrowings were $3.6 billion, which rose from the figure of $3.3 billion as of Dec. 31, 2024.
Total equity of $1.4 billion improved 17% from the 2024-end level.
PRAA’s 2025 Outlook
Earlier, management estimated portfolio investments of $1.2 billion for 2025. PRAA forecasted cash collections to witness high-single-digit growth as a result of strong portfolio purchases and benefits from cash-generating initiatives.
The cash efficiency ratio was projected to be more than 60% in 2025. The company expected a return on average tangible equity of around 12%.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended upward during the past month.
The consensus estimate has shifted 13.53% due to these changes.
VGM Scores
At this time, PRA Group has a nice Growth Score of B, a grade with the same score on the momentum front. Charting a somewhat similar path, the stock was allocated a grade of A on the value side, putting it in the top 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, PRA Group has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
PRA Group belongs to the Zacks Financial - Miscellaneous Services industry. Another stock from the same industry, Bread Financial Holdings (BFH - Free Report) , has gained 11.1% over the past month. More than a month has passed since the company reported results for the quarter ended June 2025.
Bread Financial reported revenues of $929 million in the last reported quarter, representing a year-over-year change of -1.1%. EPS of $3.14 for the same period compares with $2.66 a year ago.
For the current quarter, Bread Financial is expected to post earnings of $2.08 per share, indicating a change of +13% from the year-ago quarter. The Zacks Consensus Estimate has changed -1.7% over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Bread Financial. Also, the stock has a VGM Score of A.
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PRA Group (PRAA) Up 8.6% Since Last Earnings Report: Can It Continue?
A month has gone by since the last earnings report for PRA Group (PRAA - Free Report) . Shares have added about 8.6% in that time frame, outperforming the S&P 500.
But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is PRA Group due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
PRA Group Q2 Earnings Beat Estimates on Rising Cash Collections
PRA Group reported second-quarter 2025 earnings per share (EPS) of $1.08, which beat the Zacks Consensus Estimate by 74.2%. The bottom line rose from 54 cents per share a year ago.
Total revenues improved 1.2% year over year to $287.7 million. The top line beat the consensus mark by 4.2%.
The strong quarterly results benefited from improved cash collections and higher portfolio income. A significant increase in other revenues also aided the results. However, the upside was partly offset due to rising operating costs attributed to higher legal collection costs and fees.
PRA Group’s Quarterly Operational Update
PRA Group’s cash collections were $536.3 million, which advanced 13.2% year over year and beat the Zacks Consensus Estimate of $519 million. The metric was aided by higher cash collections across the United States and Europe.
Portfolio income rose 19.9% year over year to $250.9 million and surpassed the consensus mark of $249 million. Other revenues of $3.5 million increased significantly from the figure of $1.6 million a year ago and beat the consensus mark of $1.2 million.
Total operating expenses rose 3.9% year over year to $202.6 million due to increased compensation and benefits expenses, legal collection costs, legal collection fees, professional and outside services costs, and other operating expenses.
PRAA’s net income of $45.7 million rose 82% year over year in the second quarter.
The company purchased nonperforming loan portfolios of $346.5 million, which declined 8.7% year over year. The cash efficiency ratio improved 355 basis points year over year to 62.4%. The estimated remaining collections amounted to $8.3 billion at the second-quarter end, up 21.9% year over year.
PRAA’s Financial Update (As of June 30, 2025)
PRA Group exited the second quarter with cash and cash equivalents of $131.6 million, which advanced from the figure of $105.9 million at 2024-end. It had $840.7 million remaining under its credit facilities at the second-quarter end.
Total assets of $5.4 billion increased from the 2024-end level of $4.9 billion.
Borrowings were $3.6 billion, which rose from the figure of $3.3 billion as of Dec. 31, 2024.
Total equity of $1.4 billion improved 17% from the 2024-end level.
PRAA’s 2025 Outlook
Earlier, management estimated portfolio investments of $1.2 billion for 2025. PRAA forecasted cash collections to witness high-single-digit growth as a result of strong portfolio purchases and benefits from cash-generating initiatives.
The cash efficiency ratio was projected to be more than 60% in 2025. The company expected a return on average tangible equity of around 12%.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended upward during the past month.
The consensus estimate has shifted 13.53% due to these changes.
VGM Scores
At this time, PRA Group has a nice Growth Score of B, a grade with the same score on the momentum front. Charting a somewhat similar path, the stock was allocated a grade of A on the value side, putting it in the top 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, PRA Group has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
PRA Group belongs to the Zacks Financial - Miscellaneous Services industry. Another stock from the same industry, Bread Financial Holdings (BFH - Free Report) , has gained 11.1% over the past month. More than a month has passed since the company reported results for the quarter ended June 2025.
Bread Financial reported revenues of $929 million in the last reported quarter, representing a year-over-year change of -1.1%. EPS of $3.14 for the same period compares with $2.66 a year ago.
For the current quarter, Bread Financial is expected to post earnings of $2.08 per share, indicating a change of +13% from the year-ago quarter. The Zacks Consensus Estimate has changed -1.7% over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Bread Financial. Also, the stock has a VGM Score of A.