Pra Group (PRAA) AI Stock Analysis

• Market Cap: $653.51M
• Dividend Yield: N/A
• Average Volume (3M): 584.35K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.04
• Revenue Growth: 13.89%
• EPS Growth: -899.50%
• Country: US
• Employees: 2,991
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Credit Services
• EPS (TTM): 1.46
• Shares Outstanding: 39,015,440
• 10 Day Avg. Volume: 715,553
• 30 Day Avg. Volume: 584,354
• 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 Cap: 0.89
• Enterprise Value/Revenue: 0.50
• Enterprise Value/Gross Profit: 0.81
• Enterprise Value/Ebitda: -3.58
• 1Y Price Target: $26.00
• Price Target Upside: 55.22% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): 2.71
• Revenue Forecast (FY): $1.21B

• Rating: 53 Neutral
• Price Target: $17.00 ▲(1.49% Upside)
• Action: Reiterated Date: 03/03/26
• Date: Action: Reiterated 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.

Stronger Balance Sheet Liquidity

Material improvement in leverage and sizeable committed capital increase financial flexibility. Lower net leverage and available capital reduce refinancing risk, allow disciplined portfolio purchases, opportunistic buybacks, and absorb volatility, supporting multi‑year investment plans and strategic optionality.

Technology & Digital Modernization

Ongoing cloud, AI, and digital investments create durable cost and scale advantages in collections. Improved digital channels and centralized platforms can raise recovery rates, lower per‑account costs, and enable geographic scalability, enhancing long‑term margin sustainability and collection efficiency.

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.

Goodwill Impairment & Earnings Volatility

A large impairment signals prior overpayment or deteriorating portfolio economics and reduces book equity and reported earnings quality. Such episodic write‑downs heighten earnings volatility, complicate performance benchmarking, and increase risk of future impairments if portfolio yields or recovery assumptions weaken.

Replenishment Need & Pricing Pressure

A near‑$1B annual replenishment requirement and rising purchase multiples increase capital needs and compress gross yields if competition persists. Structural pricing pressure in Europe and higher multiples reduce long‑term portfolio returns and force stricter deal discipline to preserve margins.

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 primarily the unpaid obligations of individuals owed to credit originators, which include banks and other types of consumer, retail, and auto finance companies. The company also acquires nonperforming loans, including Visa and MasterCard credit cards, private label and other credit cards, installment loans, lines of credit, deficiency balances of various types, legal judgments, and trade payables from banks, credit unions, consumer finance companies, retailers, utilities, automobile finance companies, and other credit originators. In addition, it provides fee-based services on class action claims recoveries and by servicing consumer bankruptcy accounts. The company was formerly known as Portfolio Recovery Associates, Inc. and changed its name to PRA Group, Inc. in October 2014. PRA Group, Inc. was incorporated in 1996 and is headquartered in Norfolk, Virginia.

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 portfolios, which are often purchased at a fraction of their face value, and the fees charged for collection services rendered. Additionally, Pra Group may enter into partnerships with financial institutions to manage and collect on their delinquent accounts, further enhancing its income. The company's ability to leverage analytics to optimize collection strategies and improve recovery rates plays a critical role in its profitability, alongside its strategic focus on diversifying its portfolio of assets across various sectors and geographies.

Pra Group Financial Statement Overview

Summary

Revenue improved in 2025, and leverage fell sharply (very low debt-to-equity), but results deteriorated to a large GAAP net loss and cash generation remains weak with negative operating and free cash flow across 2023–2025, limiting financial flexibility and earnings quality.

Income Statement

Revenue rebounded strongly into 2025 (up ~5.7% vs. 2024 and well above 2023), but profitability deteriorated sharply: 2025 swung to a sizable net loss (about -24.6% margin) after modest profitability in 2024. Operating profitability is also inconsistent across the period (profits in 2020–2022, a loss in 2023, profit in 2024, then a larger loss in 2025), which reduces earnings quality and visibility despite top-line momentum.

Balance Sheet

Leverage improved dramatically in 2025, with total debt dropping to a very low level relative to equity (debt-to-equity ~0.03) versus highly leveraged levels in 2020–2024 (~2.9–3.8). That said, the 2025 net loss drove a deeply negative return on equity, and the sharp year-over-year change in debt profile suggests the capital structure has been volatile, which is a key risk factor to monitor.

Cash Flow

Cash generation is weak and volatile: operating cash flow and free cash flow are negative in 2023–2025 (and also negative in 2024), with 2025 remaining materially cash-negative. While 2025 free cash flow looks better than the prior year on a growth basis, the business is still consuming cash, and the persistent negative operating cash flow reduces financial flexibility even with lower balance-sheet leverage.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.17B	1.24B	1.12B	815.50M	966.52M	1.10B
Gross Profit	721.17M	1.23B	685.65M	416.04M	550.31M	669.61M
EBITDA	-162.38M	18.99M	209.13M	10.49M	170.37M	266.11M
Net Income	-343.21M	-305.14M	70.60M	-83.48M	117.15M	183.16M
Balance Sheet
Total Assets	5.00B	5.10B	4.93B	4.53B	4.18B	4.37B
Cash, Cash Equivalents and Short-Term Investments	107.45M	104.41M	161.70M	172.00M	150.19M	87.58M
Total Debt	31.18M	32.16M	3.36B	4.40B	3.61B	3.84B
Total Liabilities	4.02B	4.06B	3.74B	3.29B	2.89B	3.04B
Stockholders Equity	928.49M	979.85M	1.14B	1.17B	1.23B	1.29B
Cash Flow
Free Cash Flow	-37.25M	-90.36M	-98.64M	-100.42M	8.34M	73.71M
Operating Cash Flow	-32.69M	-85.54M	-94.59M	-97.53M	21.59M	84.92M
Investing Cash Flow	-215.61M	-59.94M	-382.47M	-234.86M	120.45M	160.38M
Financing Cash Flow	218.33M	115.97M	490.84M	355.30M	-121.34M	-262.81M

Pra Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 16.75
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: 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 16.75 is above the 20-day moving average (MA) of 11.85, above the 50-day MA of 14.65, and above the 200-day MA of 15.29, indicating a bullish trend. The MACD of -0.11 indicates Negative momentum. The RSI at 71.72 is Negative, neither overbought nor oversold. The STOCH value of 94.82 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PRAA.

Pra Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OMF	68 Neutral	$6.52B	8.38	23.76%	6.07%	9.51%	29.38%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
WU	64 Neutral	$3.00B	6.31	51.86%	10.18%	-2.51%	17.47%
LC	61 Neutral	$1.73B	13.03	9.55%	―	9.68%	94.85%
PRAA	53 Neutral	$653.51M	-2.14	-28.86%	―	13.89%	-899.50%
ALLY	51 Neutral	$12.29B	16.64	5.80%	2.58%	-6.89%	-33.20%
UPST	50 Neutral	$2.77B	65.77	7.49%	―	73.29%	―

Pra Group Corporate Events

PRA Group Reports Strong Q4 2025 Results, PRA 3.0 Launch

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 record estimated remaining collections of $8.6 billion. For full year 2025, announced on February 26, 2026, PRA delivered 12.8% growth in cash collections to $2.1 billion and $1.2 billion of portfolio purchases but posted a net loss of $305.1 million due largely to a $413 million non-cash goodwill impairment in the third quarter, while adjusted net income of $72.6 million, higher adjusted EBITDA, ongoing U.S. operational improvements, European strength, share repurchases and the launch of its PRA 3.0 strategy signal an effort to enhance returns, reduce leverage and position the firm as a more technology-enabled global capital allocator.

The most recent analyst rating on (PRAA) stock is a Hold with a $13.50 price target. To see the full list of analyst forecasts on Pra Group stock, see the PRAA Stock Forecast page.