PRA (US:PRAA) ZACKSยท2025-11-10 18:21Core Insights - PRA Group, Inc. (PRAA) reported a 0.7% increase in shares following the release of its third-quarter 2025 results, driven by improved cash collections and higher portfolio income, although this was partially offset by rising operating costs [1][5] Financial Performance - Earnings per share (EPS) for Q3 2025 were 53 cents, exceeding the Zacks Consensus Estimate by 6% and up from 49 cents per share a year ago [1][10] - Total revenues increased by 10.5% year over year to $311.1 million, surpassing the consensus mark by 4.7% [2][10] Cash Collections and Portfolio Income - Cash collections reached $542.2 million, a 13.7% year-over-year increase, beating the Zacks Consensus Estimate of $531 million, supported by higher collections in the U.S. and Europe [3][10] - Portfolio income rose 19.6% year over year to $258.5 million, although it fell short of the consensus estimate of $261 million [4] Operating Expenses and Losses - Total operating expenses surged to $626.7 million from $191.5 million a year ago, primarily due to increased legal collection costs and other operational expenses [5] - The company recorded a net loss of $404 million, contrasting with a net income of $28.9 million in the same quarter last year [5] Asset and Equity Position - As of September 30, 2025, PRA Group had cash and cash equivalents of $107.5 million, up from $105.9 million at the end of 2024, and total assets increased to $5 billion from $4.9 billion [7] - Total equity declined by 17.6% from the end of 2024, amounting to $984 million [8] Future Outlook - Management projects portfolio investments of $1.2 billion for 2025, with cash collections expected to grow in the high single digits due to strong portfolio purchases [9] - The cash efficiency ratio is anticipated to exceed 60% in 2025, with a forecasted return on average tangible equity of around 12% [9]