Pra Group Inc. (PRAA)
NASDAQ:PRAA
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Pra Group
(NASDAQ:PRAA)
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Rating:51Neutral
Price Target:
$17.00
▼(-19.39% Downside)
Action:ReiteratedDate:05/12/26
The score is held back primarily by weak financial performance—recurring net losses and negative operating/free cash flow—despite improved leverage. Technicals are also soft with the stock below key short-term moving averages. These negatives are partially offset by attractive valuation (low P/E) and a constructive earnings call highlighting improving collections, EBITDA growth, and a stated focus on disciplined capital deployment and leverage reduction.
Positive Factors
Cash collection momentum
Sustained double-digit growth in cash collections and rapid digital adoption lowers per‑contact costs and improves predictability of recoveries. Over 2–6 months this strengthens cash conversion from acquired portfolios, supports reinvestment in buying opportunities, and improves operational scalability.
Negative Factors
Weak cash generation
Persistent negative operating and free cash flows constrain the firm's ability to self‑fund portfolio purchases and operations. Over several quarters this increases reliance on external capital, elevates execution risk for growth plans, and can pressure returns if funding costs rise.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash collection momentum
Sustained double-digit growth in cash collections and rapid digital adoption lowers per‑contact costs and improves predictability of recoveries. Over 2–6 months this strengthens cash conversion from acquired portfolios, supports reinvestment in buying opportunities, and improves operational scalability.
Read all positive factors
Pra Group (PRAA) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$737.54M
Dividend YieldN/A
Average Volume (3M)603.73K
Price to Earnings (P/E)6.0
Beta (1Y)0.97
Revenue Growth12.38%
EPS Growth-498.81%
CountryUS
Employees2,991
SectorFinancial
Sector Strength70
IndustryFinancial - Credit Services
Share Statistics
EPS (TTM)-7.15
Shares Outstanding38,453,342
10 Day Avg. Volume378,367
30 Day Avg. Volume603,731
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 Cap0.87
Enterprise Value/Revenue0.50
Enterprise Value/Gross Profit0.49
Enterprise Value/Ebitda7.79
Forecast
1Y Price Target
$26.00Price Target Upside23.28% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)2.39
Revenue Forecast (FY)$1.20B
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 primarily makes money by buying portfolios of defaulted consumer receivables (often charged-off credit card, personal loan, and other consumer debt) from banks and other creditors at a discount to their face value and then collecting mor...
Pra Group Earnings Call Summary
Earnings Call Date:May 07, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 10, 2026
Earnings Call Sentiment Positive
Overall the call presented a positive operational and financial momentum: strong double-digit growth in cash collections and digital channels, significant adjusted EBITDA expansion (+14% LTM), improving leverage (net leverage ~2.7x) and disciplined, return-focused portfolio investing. Management acknowledged near-term tradeoffs — notably higher legal collection costs and modest increases in OpEx and interest expense — and flagged macro risks and charge-off trends. On balance, the company emphasized progress on its multiyear PRA 3.0 strategy (capital allocation, technology/AI modernization, and people), ample liquidity, and actionable plans to continue reducing leverage and improving returns.Positive Updates
Strong Cash Collections Growth
Global cash collections grew 11% year-over-year to $552 million in Q1 2026, driven by U.S. operational initiatives and broad-based strength in Europe.
Negative Updates
Higher Legal Collection Costs
Legal collection costs increased by $15 million in Q1 (accounting for most of the $16 million rise in operating expenses), reflecting higher near-term variable spend to drive legal collections.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Cash Collections Growth
Global cash collections grew 11% year-over-year to $552 million in Q1 2026, driven by U.S. operational initiatives and broad-based strength in Europe.
Read all positive updates
Company Guidance
PRA's forward guidance emphasized disciplined capital deployment and margin improvement: a 12‑to‑18‑month replenishment rate of $1.0 billion and a stated target to invest roughly $1.0–$1.3 billion annually over the next few years if opportunities meet return thresholds, while driving net leverage lower from 2.71x at quarter end toward the mid‑2x area; ERC was $8.5 billion (up 10% YoY; U.S. 43%, Europe 51%), Q1 portfolio purchases were $221 million (U.S. $119M, Europe $92M, other $11M), cash collections grew 11% to $552M with digital collections +19% and U.S. legal collections +27% to $141M (legal = 53% of U.S. core collections), LTM adjusted EBITDA was $1.3 billion (up 14%), total committed capital was $3.1 billion with ~ $1.0 billion availability ($714M ERC‑based + $282M additional), no debt maturities until 2028 after refinancing the $730M European revolver to a 5‑year term, management expects FY‑2026 effective tax in the mid‑ to‑high‑20s, legal collection cost growth to moderate this year, and delivery of one global cloud and cloud‑based contact platform by year‑end.Pra Group Financial Statement Overview
Summary
Income Statement
38
Negative
Balance Sheet
55
Neutral
Cash Flow
25
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.28B | 1.24B | 1.12B | 815.50M | 966.52M | 1.10B |
| Gross Profit | 1.31B | 1.23B | 685.65M | 416.04M | 550.31M | 669.61M |
| EBITDA | 82.69M | 18.99M | 209.13M | 10.49M | 170.37M | 266.11M |
| Net Income | -280.59M | -305.14M | 70.60M | -83.48M | 117.15M | 183.16M |
Balance Sheet | ||||||
| Total Assets | 5.21B | 5.10B | 4.93B | 4.53B | 4.18B | 4.37B |
| Cash, Cash Equivalents and Short-Term Investments | 124.78M | 104.41M | 161.70M | 172.00M | 150.19M | 87.58M |
| Total Debt | 31.59M | 32.16M | 3.36B | 4.40B | 3.61B | 3.84B |
| Total Liabilities | 4.14B | 4.06B | 3.74B | 3.29B | 2.89B | 3.04B |
| Stockholders Equity | 1.00B | 979.85M | 1.14B | 1.17B | 1.23B | 1.29B |
Cash Flow | ||||||
| Free Cash Flow | -13.36M | -90.36M | -98.64M | -100.42M | 8.34M | 73.71M |
| Operating Cash Flow | -8.02M | -85.54M | -94.59M | -97.53M | 21.59M | 84.92M |
| Investing Cash Flow | -49.77M | -55.72M | -382.47M | -234.86M | 120.45M | 160.38M |
| Financing Cash Flow | 86.55M | 111.75M | 490.84M | 355.30M | -121.34M | -262.81M |
Pra Group Technical Analysis
Positive
21.09
Price Trends
16.01
Positive
16.17
Positive
15.88
Positive
Market Momentum
1.10
Negative
77.01
Negative
90.70
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PRAA, the sentiment is Positive. The current price of 21.09 is above the 20-day moving average (MA) of 18.56, above the 50-day MA of 16.01, and above the 200-day MA of 15.88, indicating a bullish trend. The MACD of 1.10 indicates Negative momentum. The RSI at 77.01 is Negative, neither overbought nor oversold. The STOCH value of 90.70 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
66 Neutral | $2.83B | 10.62 | 47.95% | 10.18% | -2.34% | -49.33% | |
65 Neutral | $1.92B | 8.01 | 11.92% | ― | 17.38% | 237.98% | |
64 Neutral | $6.48B | 6.91 | 23.62% | 6.07% | 7.80% | 42.28% | |
56 Neutral | $13.56B | 9.56 | 9.19% | 2.58% | -0.72% | 198.95% | |
51 Neutral | $737.54M | 5.95 | -26.42% | ― | 12.38% | -498.81% | |
48 Neutral | $2.77B | -93.50 | 6.59% | ― | 57.69% | ― |
* Financial Sector Average
PRAA
Pra Group
19.18
4.32
29.07%
WU
Western Union
9.07
0.09
0.95%
ALLY
Ally Financial
44.24
8.90
25.18%
LC
LendingClub
16.64
5.51
49.51%
OMF
OneMain Holdings
56.09
7.05
14.38%
UPST
Upstart Holdings
28.96
-24.00
-45.32%
Pra Group Corporate Events
Business Operations and StrategyFinancial Disclosures
PRA Group Posts Strong Q1 2026 Results, Advances Strategy
Positive
May 7, 2026
On May 7, 2026, PRA Group reported first-quarter 2026 results showing an 11% year-on-year increase in total cash collections to $551.9 million and net income of $28.2 million, or $0.73 per diluted share. The quarter also saw a cash efficiency rati...
Business Operations and StrategyPrivate Placements and Financing
PRA Group Amends and Extends European Credit Facility
Positive
May 5, 2026
On April 30, 2026, PRA Group Europe Holding S.à r.l. and its Swiss branch amended and restated PRA Group Inc.’s €730 million European revolving credit facility, extending its maturity from November 23, 2027 to April 30, 2031 and r...
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.