Press release
PRA Group Reports First Quarter 2025 Results
19% Growth in Portfolio Purchases Drives Record ERC of $7.8 Billion Strong Portfolio Purchases and Execution of Strategic Initiatives Contributed to
About this update from Pra Group, Inc.
[{"type":"text","content":"19% Growth in Portfolio Purchases Drives Record ERC of $7.8 Billion\nStrong Portfolio Purchases and Execution of Strategic Initiatives Contributed to Double-Digit Cash Collections Growth\nCompany Positioned for Continued Success with Transition to Newly Appointed CEO\nNORFOLK, Va., May 5, 2025 /PRNewswire/ -- PRA Group, Inc. (Nasdaq: PRAA) (the \"Company\"), a global leader in acquiring and collecting nonperforming loans, today reported its financial results for the first quarter of 2025 (\"Q1 2025\").\n\n \n \n \n \n \n \n\n \nQ1 2025 Highlights \nTotal portfolio purchases of $291.7 million, an increase of 18.7% year-over-year.Record estimated remaining collections (ERC)1 of $7.8 billion, an increase of 20.1% year-over-year.Total cash collections of $497.4 million, an increase of 10.7% year-over-year.Cash efficiency ratio2 of 60.8%, an increase of 284 basis points year-over-year.Net income attributable to PRA Group, Inc. of $3.7 million, an increase of 5.3% year-over-year, resulting in diluted earnings per share of $0.09.Adjusted EBITDA3 for the 12 months ended March 31, 2025 of $1.2 billion, an increase of 13.5% year-over-year.1.\nRefers to the sum of all future projected cash collections on the Company's nonperforming loan portfolios.\n2.\nCalculated by dividing cash receipts less operating expenses by cash receipts. Cash receipts refers to cash collections on the Company's nonperforming loan portfolios, fees and revenue recognized from the Company's class action claims recovery services.\n3.\nA reconciliation of net income, the most directly comparable financial measure calculated and reported in accordance with GAAP, to Adjusted EBITDA can be found at the end of this press release.\n \nThree Months Ended March 31,\n($ in thousands, except per share amounts)\n2025\n2024\nNet income attributable to PRA Group, Inc.\n$ 3,659\n$ 3,475\nDiluted earnings per share\n$ 0.09\n$ 0.09\n \"Building on a successful 2024, we delivered another strong quarter, including an increase in portfolio purchases of 19%, record ERC, our fourth consecutive quarter of double-digit cash collections growth, and a nearly 300 basis point improvement in cash efficiency, as we continued to execute on our cash-generating and operational initiatives in the U.S.,\" said Vikram Atal, president and chief executive officer. \"Changes in Expected Recoveries modera...