PRA (US:PRAA) ZACKSยท2025-08-08 14:25Core Insights - PRA Group, Inc. (PRAA) reported Q2 2025 earnings per share (EPS) of $1.08, exceeding the Zacks Consensus Estimate by 74.2% and up from $0.54 a year ago [1][10] - Total revenues increased by 1.2% year over year to $287.7 million, surpassing the consensus mark by 4.2% [1][10] Financial Performance - Cash collections reached $536.3 million, a 13.2% increase year over year, beating the Zacks Consensus Estimate of $519 million [3][10] - Portfolio income rose by 19.9% year over year to $250.9 million, exceeding the consensus estimate of $249 million [4] - Other revenues increased significantly to $3.5 million from $1.6 million a year ago, also beating the consensus mark of $1.2 million [4] Operating Expenses - Total operating expenses rose by 3.9% year over year to $202.6 million, driven by increased compensation, legal collection costs, and other operating expenses [4] Net Income and Efficiency - Net income for the quarter was $45.7 million, an 82% increase year over year [5] - The cash efficiency ratio improved by 355 basis points year over year to 62.4% [5] Balance Sheet and Assets - As of June 30, 2025, cash and cash equivalents were $131.6 million, up from $105.9 million at the end of 2024 [6] - Total assets increased to $5.4 billion from $4.9 billion at the end of 2024 [6] - Total equity improved by 17% from the 2024-end level to $1.4 billion [7] 2025 Outlook - Management estimates portfolio investments of $1.2 billion for 2025, with cash collections expected to see high-single-digit growth [8] - The cash efficiency ratio is projected to exceed 60% in 2025, with a return on average tangible equity forecasted at around 12% [8]