PRA Group Reports Third Quarter 2025 Results
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Nov 03 2025
0mins
Should l Buy PRAA?
Source: PRnewswire
Financial Performance Overview: PRA Group reported a Q3 2025 net loss of $408 million, primarily due to a $413 million non-cash goodwill impairment charge, while adjusted net income was $21 million, reflecting a 13.7% increase in cash collections to $542.2 million compared to Q3 2024.
Operational Highlights: The company focused on disciplined portfolio purchases, totaling $255.5 million in Q3 2025, and achieved a record estimated remaining collections of $8.4 billion, up 15.2% year-over-year, driven by strong performance in both U.S. and European operations.
CEO's Strategic Focus: Martin Sjolund, the new CEO, emphasized improving operational efficiency and enhancing the U.S. legal collections channel, which saw a 27% increase in cash collections, while also reorganizing U.S. operations and modernizing IT infrastructure.
Future Outlook: PRA Group remains on track to meet its 2025 portfolio purchase target of $1.2 billion, with a commitment to maximizing value through selective acquisitions and maintaining strong cash collection performance across its global operations.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy PRAA?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on PRAA
Wall Street analysts forecast PRAA stock price to rise
1 Analyst Rating
1 Buy
0 Hold
0 Sell
Moderate Buy
Current: 10.700
Low
26.00
Averages
26.00
High
26.00
Current: 10.700
Low
26.00
Averages
26.00
High
26.00
About PRAA
PRA Group, Inc. is a global financial services company with operations based primarily in the Americas, Europe and Australia. The Company’s primary business is the purchase, collection and management of portfolios of nonperforming loans. The accounts it purchases are primarily the unpaid obligations of individuals owed to credit originators. The Company’s nonperforming loan portfolio comprises Core and Insolvency portfolios. Core operation specializes in purchasing and collecting nonperforming loans, which it purchases since the credit originators have chosen not to pursue, or have been unsuccessful in, collecting the full balance owed. Insolvency operations consist primarily of purchasing and collecting nonperforming loans where the customer is involved in a bankruptcy proceeding, or the equivalent thereof, in certain European countries. It also provides fee-based services on class action claims recoveries in the United States.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
PRA Group to Open New Office in Charlotte
- Strategic Expansion: PRA Group plans to open a new office in Charlotte in February 2026, located in the iconic One South tower, marking a strategic expansion into one of the fastest-growing financial markets in the U.S., aimed at leveraging the region's growth in financial services.
- Talent Hub: Charlotte will become PRA Group's fifth talent hub, joining London, Oslo, Warsaw, and Norfolk, with the region selected for its established financial services talent base and high quality of life, expected to enhance collaborative business development.
- Economic Growth Potential: The long-term economic growth and convenient access to a major international airport in the Charlotte area make it an ideal choice for PRA Group's business expansion, likely strengthening the company's competitive position in the nonperforming loan sector.
- Industry Leadership: With 30 years of experience in the nonperforming loan industry, the new office will further solidify PRA Group's status as a global leader, assisting banks and other creditors in recovering capital to expand consumer financial services.
See More
PRA Group to Open New Office in Charlotte
- Strategic Expansion: PRA Group plans to open a new office in Uptown Charlotte in February 2026, located in the iconic One South tower, marking a strategic expansion into one of the fastest-growing financial markets in the U.S., which is expected to enhance its market position in the nonperforming loan industry.
- Talent Hub: The new office will serve as another talent hub for PRA Group, joining London, Oslo, Warsaw, and its headquarters in Norfolk, leveraging Charlotte's established financial services talent base to boost the company's competitiveness globally.
- Economic Growth Potential: Charlotte was chosen for its long-term economic growth potential and high quality of life, which will help attract and retain skilled professionals, driving the company's business development.
- Cross-Functional Collaboration: PRA Group CEO Martin Sjolund stated that the new office will facilitate collaboration among cross-functional teams, enhancing the company's leadership in the nonperforming loan sector while providing better service to clients.
See More
Citizens Downgrades PRA Group to Market Perform Amid Profitability Concerns
- Rating Downgrade: Citizens has downgraded PRA Group's stock to Market Perform, indicating that the company may take several years to achieve consistent profitability, resulting in a 15.81% drop in share price to $13.31 during Wednesday morning trading.
- Profitability Concerns: The investment bank noted that the gross yield on the current portfolio and recent purchases does not generate enough revenue to cover cash operating expenses and funding costs, highlighting the profitability pressures faced by the company.
- Limited Funding Capacity: PRA's funding capacity is constrained due to elevated leverage, a negative free cash flow outlook, and a more cautious European credit market towards the industry, exacerbating concerns about its future performance.
- Market Expectation Discrepancy: Citizens' rating contrasts sharply with the average buy ratings from sell-side analysts and Seeking Alpha authors, reflecting a divergence in market expectations regarding PRA Group's future profitability.
See More
Wall Street Analysts Adjust Ratings
- Rating Changes Overview: Top Wall Street analysts have adjusted their ratings on several stocks, including upgrades, downgrades, and initiations, reflecting varying market perspectives on these companies.
- Market Reaction: While specific stock rating changes are not detailed, analysts' opinions can influence investor decisions, potentially impacting the market performance of the related stocks.
- Analyst Insights: Rating changes by analysts are typically based on company financial performance, market trends, and industry outlook, and investors should pay attention to these changes to make informed investment choices.
- Further Information: For a complete view of all analyst rating changes, including specific upgrades and downgrades, it is recommended to visit the analyst ratings page for the latest updates.
See More
Gold.com (GOLD) Shares Surge 9.8% to $42.83 Amid Strong Volume
- Significant Price Surge: Gold.com shares soared 9.8% in the last trading session to close at $42.83, with trading volume significantly exceeding normal levels, indicating strong market confidence in its performance.
- Sustained Growth Momentum: The stock has gained 23% over the past four weeks and has maintained its rally for three consecutive days, reflecting robust performance driven by its comprehensive operations in the precious metals sector.
- Acquisition Strengthens Market Position: Gold.com recently completed its acquisition of established precious metals dealer Monex, enhancing its ability to offer secured financing and design proprietary silver products, thereby solidifying its competitive edge.
- Optimistic Earnings Expectations: The upcoming quarterly report is expected to show earnings of $0.70 per share, representing a year-over-year increase of 27.3%, and while revenues are projected to decline by 0.5% to $2.73 billion, the stability in earnings estimates may positively influence the stock price.
See More
PRA Group (PRAA) Remains a Value Stock Despite Rapid Growth
Momentum Investing Overview: Momentum investing contrasts with the traditional "buy low, sell high" strategy, focusing instead on "buying high and selling higher," which can be risky if stocks lose momentum due to overvaluation.
PRA Group as a Momentum Stock: PRA Group (PRAA) is highlighted as a strong candidate for momentum investing, showing a recent price change of 10.4% and a 5.8% gain over 12 weeks, along with a favorable Momentum Score of B.
Valuation and Earnings Potential: Despite its momentum, PRAA is trading at a reasonable Price-to-Sales ratio of 0.56, indicating it is attractively priced, and has a Zacks Rank #2 (Buy) due to positive earnings estimate revisions.
Investment Strategy Tools: Investors are encouraged to explore various Zacks Premium Screens and the Research Wizard tool to identify winning stock picks, with a focus on strategies that have historically produced profitable results.
See More
PRA Group to Open New Office in Charlotte
- Strategic Expansion: PRA Group plans to open a new office in Charlotte in February 2026, located in the iconic One South tower, marking a strategic expansion into one of the fastest-growing financial markets in the U.S., aimed at leveraging the region's growth in financial services.
- Talent Hub: Charlotte will become PRA Group's fifth talent hub, joining London, Oslo, Warsaw, and Norfolk, with the region selected for its established financial services talent base and high quality of life, expected to enhance collaborative business development.
- Economic Growth Potential: The long-term economic growth and convenient access to a major international airport in the Charlotte area make it an ideal choice for PRA Group's business expansion, likely strengthening the company's competitive position in the nonperforming loan sector.
- Industry Leadership: With 30 years of experience in the nonperforming loan industry, the new office will further solidify PRA Group's status as a global leader, assisting banks and other creditors in recovering capital to expand consumer financial services.
See More
PRA Group to Open New Office in Charlotte
- Strategic Expansion: PRA Group plans to open a new office in Uptown Charlotte in February 2026, located in the iconic One South tower, marking a strategic expansion into one of the fastest-growing financial markets in the U.S., which is expected to enhance its market position in the nonperforming loan industry.
- Talent Hub: The new office will serve as another talent hub for PRA Group, joining London, Oslo, Warsaw, and its headquarters in Norfolk, leveraging Charlotte's established financial services talent base to boost the company's competitiveness globally.
- Economic Growth Potential: Charlotte was chosen for its long-term economic growth potential and high quality of life, which will help attract and retain skilled professionals, driving the company's business development.
- Cross-Functional Collaboration: PRA Group CEO Martin Sjolund stated that the new office will facilitate collaboration among cross-functional teams, enhancing the company's leadership in the nonperforming loan sector while providing better service to clients.
See More
Citizens Downgrades PRA Group to Market Perform Amid Profitability Concerns
- Rating Downgrade: Citizens has downgraded PRA Group's stock to Market Perform, indicating that the company may take several years to achieve consistent profitability, resulting in a 15.81% drop in share price to $13.31 during Wednesday morning trading.
- Profitability Concerns: The investment bank noted that the gross yield on the current portfolio and recent purchases does not generate enough revenue to cover cash operating expenses and funding costs, highlighting the profitability pressures faced by the company.
- Limited Funding Capacity: PRA's funding capacity is constrained due to elevated leverage, a negative free cash flow outlook, and a more cautious European credit market towards the industry, exacerbating concerns about its future performance.
- Market Expectation Discrepancy: Citizens' rating contrasts sharply with the average buy ratings from sell-side analysts and Seeking Alpha authors, reflecting a divergence in market expectations regarding PRA Group's future profitability.
See More
Wall Street Analysts Adjust Ratings
- Rating Changes Overview: Top Wall Street analysts have adjusted their ratings on several stocks, including upgrades, downgrades, and initiations, reflecting varying market perspectives on these companies.
- Market Reaction: While specific stock rating changes are not detailed, analysts' opinions can influence investor decisions, potentially impacting the market performance of the related stocks.
- Analyst Insights: Rating changes by analysts are typically based on company financial performance, market trends, and industry outlook, and investors should pay attention to these changes to make informed investment choices.
- Further Information: For a complete view of all analyst rating changes, including specific upgrades and downgrades, it is recommended to visit the analyst ratings page for the latest updates.
See More
Gold.com (GOLD) Shares Surge 9.8% to $42.83 Amid Strong Volume
- Significant Price Surge: Gold.com shares soared 9.8% in the last trading session to close at $42.83, with trading volume significantly exceeding normal levels, indicating strong market confidence in its performance.
- Sustained Growth Momentum: The stock has gained 23% over the past four weeks and has maintained its rally for three consecutive days, reflecting robust performance driven by its comprehensive operations in the precious metals sector.
- Acquisition Strengthens Market Position: Gold.com recently completed its acquisition of established precious metals dealer Monex, enhancing its ability to offer secured financing and design proprietary silver products, thereby solidifying its competitive edge.
- Optimistic Earnings Expectations: The upcoming quarterly report is expected to show earnings of $0.70 per share, representing a year-over-year increase of 27.3%, and while revenues are projected to decline by 0.5% to $2.73 billion, the stability in earnings estimates may positively influence the stock price.
See More
PRA Group (PRAA) Remains a Value Stock Despite Rapid Growth
Momentum Investing Overview: Momentum investing contrasts with the traditional "buy low, sell high" strategy, focusing instead on "buying high and selling higher," which can be risky if stocks lose momentum due to overvaluation.
PRA Group as a Momentum Stock: PRA Group (PRAA) is highlighted as a strong candidate for momentum investing, showing a recent price change of 10.4% and a 5.8% gain over 12 weeks, along with a favorable Momentum Score of B.
Valuation and Earnings Potential: Despite its momentum, PRAA is trading at a reasonable Price-to-Sales ratio of 0.56, indicating it is attractively priced, and has a Zacks Rank #2 (Buy) due to positive earnings estimate revisions.
Investment Strategy Tools: Investors are encouraged to explore various Zacks Premium Screens and the Research Wizard tool to identify winning stock picks, with a focus on strategies that have historically produced profitable results.
See More
