Pra Group Inc. ( (PRAA) ) has released its Q2 earnings. Here is a breakdown of the information Pra Group Inc. presented to its investors.
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PRA Group, Inc. is a global leader in acquiring and collecting nonperforming loans, operating primarily in the financial services sector across the Americas, Europe, and Australia. The company focuses on returning capital to banks and other creditors, aiding in the expansion of financial services for consumers.
In its second quarter of 2025, PRA Group, Inc. reported notable financial results, highlighted by strong portfolio purchases and record estimated remaining collections (ERC). The company achieved a 96.9% increase in net income attributable to PRA Group, Inc., amounting to $42.4 million, which includes a significant after-tax gain from the sale of its equity interest in RCB in Brazil.
Key financial metrics for the quarter include total cash collections of $536.3 million, marking a 13.2% increase from the previous year, and a cash efficiency ratio of 62.4%. The company’s adjusted EBITDA grew by 16.4%, outpacing the growth in cash collections. Despite an 8.7% decrease in total portfolio purchases to $346.5 million, the company reported a record ERC of $8.3 billion, up 21.9% from the previous year.
PRA Group’s European operations showed strong performance, and the company continues to focus on transforming its U.S. business. The strategic pillars include optimizing investments, improving operational execution, and managing expenses, with an aim to enhance financial and operational results over the long term.
Looking ahead, PRA Group, Inc. remains committed to leveraging its global scale and strong foundation to drive meaningful improvements in its financial and operational outcomes. The management expresses confidence in developing PRA into a leading player in the industry, building on its current momentum.