Pra Group Inc. (PRAA)
NASDAQ:PRAA
Top Page
Pra Group
(NASDAQ:PRAA)
Select Model
Select Model
Rating:53Neutral
Price Target:
$17.00
▲(0.89% Upside)
Action:ReiteratedDate:03/03/26
The score is held back primarily by weak financial performance quality—large GAAP loss and persistently negative operating/free cash flow—despite better revenue and substantially reduced leverage. Technicals show an uptrend but overbought conditions increase near-term risk. Valuation is constrained by loss-making earnings, while the latest earnings call was constructive with strong operational/adjusted momentum and guidance focused on disciplined investing and leverage reduction.
Positive Factors
Record Cash Collections
Sustained, record cash collections and revenue provide durable operating cash inflows tied to core collection capabilities and scale. Strong collections improve portfolio payback timelines and support disciplined reinvestment in portfolios, helping sustain earnings power and ERC replenishment over the medium term.
Negative Factors
Weak Cash Generation
Persistent negative operating and free cash flow erodes internal funding capacity, increasing reliance on external capital to buy portfolios. Over time this constrains reinvestment flexibility, raises financing cost exposure, and limits the firm's ability to sustain growth or absorb adverse portfolio performance.
Read all positive and negative factors
Positive Factors
Negative Factors
Record Cash Collections
Sustained, record cash collections and revenue provide durable operating cash inflows tied to core collection capabilities and scale. Strong collections improve portfolio payback timelines and support disciplined reinvestment in portfolios, helping sustain earnings power and ERC replenishment over the medium term.
Read all positive factors
Pra Group (PRAA) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$647.94M
Dividend YieldN/A
Average Volume (3M)616.02K
Price to Earnings (P/E)―
Beta (1Y)0.90
Revenue Growth13.89%
EPS Growth-899.50%
CountryUS
Employees2,991
SectorFinancial
Sector Strength70
IndustryFinancial - Credit Services
Share Statistics
EPS (TTM)1.46
Shares Outstanding38,453,342
10 Day Avg. Volume421,824
30 Day Avg. Volume616,019
Financial Highlights & Ratios
PEG Ratio<0.01
Price to Book (P/B)0.71
Price to Sales (P/S)0.56
P/FCF Ratio-7.67
Enterprise Value/Market Cap0.90
Enterprise Value/Revenue0.47
Enterprise Value/Gross Profit0.48
Enterprise Value/Ebitda30.82
Forecast
1Y Price Target
$26.00Price Target Upside54.30% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)2.71
Revenue Forecast (FY)$1.21B
Pra Group Business Overview & Revenue Model
Company Description
PRA Group, Inc., a financial and business services company, engages in the purchase, collection, and management of portfolios of nonperforming loans in the Americas, Australia, and Europe. It is involved in the purchase of accounts that are primar...
How the Company Makes Money
Pra Group generates revenue primarily through the purchase of non-performing loans at a discount, followed by the recovery of the outstanding balances from borrowers. The company's key revenue streams include the collections on acquired debt portf...
Pra Group Earnings Call Summary
Earnings Call Date:Feb 26, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 11, 2026
Earnings Call Sentiment Positive
The call was largely positive: management reported multiple record metrics (cash collections, revenue, ERC, portfolio income), demonstrated improving operating leverage and declining net leverage, and outlined a multi-year strategy focused on disciplined investing, technology and AI, and cost flexibility. These operational gains were partially offset by a large non-cash goodwill impairment that produced a GAAP net loss, rising legal and interest costs due to strategic investments, and some near-term variability and execution risks from workforce changes and higher purchase multiples. On balance, the operational momentum, improved adjusted metrics, and clear strategic path outweigh the one-time impairment and transitional costs.Positive Updates
Record Cash Collections and Revenue
Cash collections were a record $2.1 billion for 2025, up 13% year-over-year; Q4 cash collections were $532 million, up 14% year-over-year. Revenue reached a record $1.2 billion for the year.
Negative Updates
Large Non-Cash Goodwill Impairment and GAAP Loss
Recorded a non-cash goodwill impairment of $413 million in Q3 2025, which contributed to a full-year net loss attributable to PRA of $305 million despite positive adjusted results.
Read all updates
Q4-2025 Updates
Positive
Negative
Record Cash Collections and Revenue
Cash collections were a record $2.1 billion for 2025, up 13% year-over-year; Q4 cash collections were $532 million, up 14% year-over-year. Revenue reached a record $1.2 billion for the year.
Read all positive updates
Company Guidance
Management guided to disciplined investing of $1.0–$1.3 billion per year (2026 expected similar to 2025’s $1.2B) while driving adjusted EBITDA to grow faster than cash collections and pushing net leverage down to the mid‑2x area from 2.7x at 12/31/25 (peak 2.9x), with opportunistic buybacks (2025 repurchases $20M, $50M remaining authorization). They highlighted record ERC of $8.6B (+15% YoY; 42% U.S., 51% Europe) with a replenishment need of ~$982M, strong cash collections of $2.1B in 2025 (Q4 $532M, +14% YoY; FY +13%), digital collections +25%, U.S. cash +17%, U.S. legal collections +28% to $483M (legal = 48% of U.S. core), Europe cash +11% Q4/+13% FY, and Q4 purchases of $315M (U.S. $112M, Europe $157M, other $45M). Key profitability and cost metrics to watch: cash efficiency ~60% (61% Q4, adjusted FY 61%), LTM adjusted EBITDA $1.3B (+16% YoY), adjusted net income $73M ($1.84/share), adjusted operating expenses $819M (+6% YoY), legal costs $162M (+30% YoY), net interest $252M FY, and liquidity of $3.2B committed capital with $1.1B total availability ($825M ERC‑based + $274M additional).Pra Group Financial Statement Overview
Summary
Income Statement
44
Neutral
Balance Sheet
62
Positive
Cash Flow
28
Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.24B | 1.12B | 815.50M | 966.52M | 1.10B |
| Gross Profit | 1.23B | 685.65M | 416.04M | 550.31M | 669.61M |
| EBITDA | 18.99M | 209.13M | 10.49M | 170.37M | 266.11M |
| Net Income | -305.14M | 70.60M | -83.48M | 117.15M | 183.16M |
Balance Sheet | |||||
| Total Assets | 5.10B | 4.93B | 4.53B | 4.18B | 4.37B |
| Cash, Cash Equivalents and Short-Term Investments | 104.41M | 161.70M | 172.00M | 150.19M | 87.58M |
| Total Debt | 32.16M | 3.36B | 4.40B | 3.61B | 3.84B |
| Total Liabilities | 4.06B | 3.74B | 3.29B | 2.89B | 3.04B |
| Stockholders Equity | 979.85M | 1.14B | 1.17B | 1.23B | 1.29B |
Cash Flow | |||||
| Free Cash Flow | -90.36M | -98.64M | -100.42M | 8.34M | 73.71M |
| Operating Cash Flow | -85.54M | -94.59M | -97.53M | 21.59M | 84.92M |
| Investing Cash Flow | -55.72M | -382.47M | -234.86M | 120.45M | 160.38M |
| Financing Cash Flow | 111.75M | 490.84M | 355.30M | -121.34M | -262.81M |
Pra Group Technical Analysis
Neutral
16.85
Price Trends
14.80
Positive
15.65
Positive
15.59
Positive
Market Momentum
0.84
Positive
53.01
Neutral
35.21
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PRAA, the sentiment is Neutral. The current price of 16.85 is below the 20-day moving average (MA) of 17.55, above the 50-day MA of 14.80, and above the 200-day MA of 15.59, indicating a neutral trend. The MACD of 0.84 indicates Positive momentum. The RSI at 53.01 is Neutral, neither overbought nor oversold. The STOCH value of 35.21 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for PRAA.
Pra Group Risk Analysis
Pra Group disclosed 22 risk factors in its most recent earnings report. Pra Group reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Pra Group Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $2.74B | 6.09 | 53.92% | 10.18% | -2.51% | 17.47% | |
68 Neutral | $6.04B | 10.25 | 23.40% | 6.07% | 9.51% | 29.38% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
61 Neutral | $1.60B | 16.10 | 9.47% | ― | 9.68% | 94.85% | |
53 Neutral | $647.94M | -2.27 | -27.34% | ― | 13.89% | -899.50% | |
51 Neutral | $11.68B | 16.52 | 5.74% | 2.58% | -6.89% | -33.20% | |
49 Neutral | $2.43B | 78.35 | 7.29% | ― | 73.29% | ― |
* Financial Sector Average
PRAA
Pra Group
16.85
-3.77
-18.28%
WU
Western Union
8.73
-0.79
-8.26%
ALLY
Ally Financial
37.79
2.47
6.99%
LC
LendingClub
13.87
3.55
34.40%
OMF
OneMain Holdings
51.55
6.24
13.77%
UPST
Upstart Holdings
24.77
-21.26
-46.19%
Pra Group Corporate Events
Business Operations and StrategyStock BuybackFinancial Disclosures
PRA Group Reports Strong Q4 2025 Results, PRA 3.0 Launch
Positive
Feb 26, 2026
PRA Group reported fourth-quarter 2025 net income attributable to the company of $56.5 million, or $1.46 per diluted share, on total cash collections of $531.7 million, up 13.6% year over year, and portfolio purchases of $314.8 million, driving re...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.