Pra Group Inc. ( (PRAA) ) has released its Q1 earnings. Here is a breakdown of the information Pra Group Inc. presented to its investors.
PRA Group, Inc. is a global leader in acquiring and collecting nonperforming loans, operating primarily in the financial services sector across the Americas, Europe, and Australia. The company focuses on returning capital to banks and creditors, aiding in the expansion of financial services for consumers.
In its first quarter of 2025, PRA Group reported significant financial achievements, including a 19% growth in portfolio purchases, leading to a record estimated remaining collections (ERC) of $7.8 billion. The company also saw a 10.7% increase in total cash collections, amounting to $497.4 million, and a 5.3% rise in net income attributable to PRA Group, Inc.
Key financial metrics for the quarter included total portfolio purchases of $291.7 million, a cash efficiency ratio of 60.8%, and adjusted EBITDA of $1.2 billion, marking a 13.5% increase year-over-year. The company’s strategic initiatives and strong portfolio purchases contributed to these positive results, despite some challenges in expected recoveries.
Looking ahead, PRA Group is optimistic about its future under the leadership of newly appointed CEO Martin Sjolund. The company remains committed to its long-term strategy of driving growth, profitability, and shareholder value, while maintaining its financial targets, albeit with a potential adjustment in the return on average tangible equity.