PRA Group (NASDAQ:PRAA) Issues Earnings Results, Beats Estimates By $0.22 EPS

PRA Group (NASDAQ:PRAA) released its earnings results on Thursday. The business services provider reported $0.73 earnings per share for the quarter, beating analysts’ consensus estimates of $0.51 by $0.22, FiscalAI reports. PRA Group had a negative net margin of 22.51% and a positive return on equity of 12.98%. The business had revenue of $314.53 million during the quarter, compared to the consensus estimate of $295.90 million.

Here are the key takeaways from PRA Group’s conference call:

• Cash collections grew 11% year-over-year to $552M in Q1, with global digital collections up 19% and Europe up 15%, indicating stronger cash flow and momentum in digital channels.
• U.S. legal collections rose 27% to $141M and represented 53% of U.S. core cash collections, as management continues to invest in legal channels that provide higher certainty of recovery despite a $15M rise in legal collection costs.
• Portfolio purchases were $221M in Q1 (part of $2.6B invested over the past two years), with ending recoverable cash (ERC) at $8.5B and a replenishment rate of about $1B, reflecting disciplined buying and continued scale across markets.
• Adjusted EBITDA (last 12 months) increased 14% to $1.3B, net income was $28M (EPS $0.73), and net leverage declined to 2.71x, supported by ample liquidity and a refinanced 5‑year European credit facility with no maturities until 2028.
• The new PRA 3.0 strategy prioritizes capital discipline, IT/AI modernization (one global cloud and one cloud‑based contact platform targeted by year‑end), and a Charlotte talent hub — a multi‑year plan expected to drive efficiency and returns over time.

PRA Group Stock Performance

Shares of PRAA stock opened at $19.18 on Friday. The company has a market capitalization of $731.53 million, a price-to-earnings ratio of -2.68 and a beta of 1.26. The company has a 50-day simple moving average of $18.62 and a 200 day simple moving average of $16.38. PRA Group has a 52 week low of $10.25 and a 52 week high of $22.55.

Institutional Trading of PRA Group

Hedge funds and other institutional investors have recently modified their holdings of the stock. Los Angeles Capital Management LLC bought a new stake in shares of PRA Group during the 4th quarter worth about $27,000. Tower Research Capital LLC TRC boosted its holdings in shares of PRA Group by 375.1% during the 2nd quarter. Tower Research Capital LLC TRC now owns 4,784 shares of the business services provider’s stock worth $71,000 after buying an additional 3,777 shares during the period. Globeflex Capital L P bought a new stake in shares of PRA Group during the 2nd quarter worth about $102,000. iSAM Funds UK Ltd bought a new stake in shares of PRA Group during the 3rd quarter worth about $107,000. Finally, Dynamic Technology Lab Private Ltd bought a new stake in shares of PRA Group during the 3rd quarter worth about $156,000. Institutional investors own 97.22% of the company’s stock.

PRA Group News Summary

Here are the key news stories impacting PRA Group this week:

• Positive Sentiment: PRA Group beat Q1 2026 earnings and revenue expectations, reporting EPS of $0.73 versus the $0.51 consensus and revenue of $314.53 million versus $295.90 million expected. Article Title
• Positive Sentiment: Cash collections rose 11% in the quarter, supported by stronger U.S. legal channel momentum and solid performance in Europe, which helped lift results and reinforced progress on the company’s PRA 3.0 strategy. Article Title
• Positive Sentiment: Net income improved to $28 million, signaling better operating leverage and a meaningful step up from the prior year period. Article Title
• Neutral Sentiment: Management’s earnings call and presentation may provide more detail on collection trends, capital allocation, and the outlook for the rest of 2026, which investors are likely watching closely. Article Title
• Negative Sentiment: Even with the earnings beat, PRA Group still reported a negative net margin, which may be limiting investor enthusiasm and contributing to the stock’s decline. Article Title

Wall Street Analyst Weigh In

A number of brokerages have recently commented on PRAA. Citizens Jmp downgraded shares of PRA Group from a “market outperform” rating to a “market perform” rating in a research report on Wednesday, January 28th. Weiss Ratings reissued a “sell (d)” rating on shares of PRA Group in a research report on Friday, March 27th. Citigroup downgraded shares of PRA Group from an “outperform” rating to a “market perform” rating in a research report on Wednesday, January 28th. Finally, Wall Street Zen raised shares of PRA Group from a “hold” rating to a “buy” rating in a research report on Saturday. One equities research analyst has rated the stock with a Buy rating, three have given a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the stock has a consensus rating of “Hold” and an average target price of $25.00.

About PRA Group

PRA Group, Inc is a global specialty finance company focused on the acquisition and management of nonperforming loans. Founded in 1996 as Portfolio Recovery Associates, the company purchases defaulted consumer and commercial receivables at discounted rates from financial institutions, utilities and other creditors. By combining rigorous analytics with a consumer-centric ethos, PRA Group seeks to maximize recoveries while maintaining respectful and compliant interactions with debtors.

The company’s core activities include first-party and third-party collections across a range of asset classes such as credit cards, auto loans and utility receivables.