Financial Results
PRA Group reported third‑quarter 2025 earnings with a net loss of $407.7 million, driven by a $412.6 million non‑cash goodwill impairment charge. Excluding the impairment, the company posted an adjusted net income of $20.9 million, or $0.53 per share, beating the consensus estimate of $0.50. Revenue reached $311.14 million, surpassing the $297.21 million estimate.
Cash Collections and ERC
Cash collections rose 13.7% year‑over‑year to $542.2 million, supported by strong performance in Europe and U.S. legal collections. The company also announced a record $8.4 billion in estimated remaining collections, up 15.2% from the $7.8 billion reported in Q1 2025.
Portfolio Purchases and Prior Period Comparison
Total portfolio purchases for the quarter were $255.5 million, a decline from the previous year, reflecting a more selective acquisition strategy. In comparison, PRA Group reported a net income of $27.2 million and diluted EPS of $0.69 in Q3 2024.
Management Commentary and Outlook
Management highlighted the impact of the goodwill impairment on the loss, emphasized continued focus on cost efficiency, and reaffirmed 2025 financial targets, including a $1.2 billion portfolio purchase goal and expectations for high single‑digit growth in cash collections.
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