PRA (US:PRAA)2025-11-03 21:06Financial Performance - Total cash collections for Q3 2025 reached $542.2 million, an increase of 13.7% compared to $477.1 million in Q3 2024[8] - Total revenues for Q3 2025 reached $311,140,000, a 10.6% increase from $281,477,000 in Q3 2024[21] - Portfolio income for Q3 2025 rose 19.6% to $258.5 million, driven by strong recent purchases[9] - Cash collections for 2023 reached $182,901,000, representing a significant increase compared to previous years[28] - Cash collections for 2023 are estimated at $1,576.0 million, reflecting a significant increase compared to previous years[31] - Cash collections for 2024 are projected to be $1,576.0 million, indicating a steady growth trajectory[31] Operating Expenses - Operating expenses in Q3 2025 increased to $626.7 million, primarily due to the goodwill impairment charge, with adjusted operating expenses at $214.1 million[16] - Operating expenses surged to $626,687,000 in Q3 2025, up from $191,499,000 in Q3 2024, primarily due to a goodwill impairment of $412,611,000[21] - Total operating expenses for the third quarter of 2025 were $626,687, compared to $191,499 in the third quarter of 2024, indicating a substantial increase due to goodwill impairment[36] Net Income and Loss - Adjusted net income attributable to PRA Group, Inc. was $20.9 million, or diluted earnings per share of $0.53, excluding a $412.6 million non-recurring goodwill impairment charge[6] - Net loss attributable to PRA Group, Inc. for Q3 2025 was $407,703,000, compared to a net income of $27,154,000 in Q3 2024[21] - Basic net loss per common share for Q3 2025 was $(10.43), a significant decline from $0.69 in Q3 2024[21] - Net (loss)/income attributable to PRA Group, Inc. for LTM ended September 30, 2025, was $(343,214), a significant decline from a profit of $70,601 for the year ended December 31, 2024[35] Cash Efficiency - Cash efficiency ratio was (15.4)%, while the adjusted cash efficiency ratio, excluding the goodwill impairment charge, was 60.6%[6] - Adjusted cash efficiency ratio for the third quarter of 2025 was 60.6%, slightly up from 60.1% in the same quarter of 2024[36] Portfolio and Collections - Total portfolio revenue in Q3 2025 increased by 12.0% to $309.9 million, compared to $276.7 million in Q3 2024[10] - The company purchased $255.5 million in portfolios of nonperforming loans during Q3 2025, reflecting a selective approach to maximize value[11] - Estimated remaining collections (ERC) reached a record $8.4 billion, up 15.2% year-over-year[6] - The company reported a total of $8,211,196,000 in estimated collections from portfolios purchased between 1996 and 2014, with a current purchase price multiple of 287%[25] - The total purchase price for portfolios in the Americas and Australia as of September 30, 2025, was $10,636,930,000, with total estimated collections of $23,433,005,000[25] Assets and Liabilities - Total assets as of September 30, 2025, amounted to $4,999,209,000, a slight increase from $4,931,155,000 at the end of 2024[23] - Finance receivables, net, increased to $4,572,167,000 as of September 30, 2025, compared to $4,140,742,000 at the end of 2024[23] - Total liabilities rose to $4,015,237,000 as of September 30, 2025, up from $3,737,548,000 at the end of 2024[23] Equity and Return Metrics - Average tangible equity as of September 30, 2025, was $898,043, compared to $761,235 as of September 30, 2024, reflecting an increase of approximately 18.0%[41] - Return on average tangible equity (ROATE) for the third quarter of 2025 was (181.6)%, a significant decline from 14.3% in the same quarter of 2024[41] Goodwill Impairment - Goodwill impairment for the third quarter of 2025 amounted to $428,580, which significantly impacted net income[41]