PRA (US:PRAA) ZACKS·2025-12-04 18:51Core Insights - PRA Group, Inc. (PRAA) is positioned for growth due to improved cash collection efficiency in the U.S. and increased portfolio income, leveraging its extensive infrastructure and relationships in the consumer debt market [1][3] Financial Performance - In Q3 2025, PRAA reported total cash collections of $542.2 million, marking a 13.7% year-over-year increase, driven by successful portfolio acquisitions and strong debtor recovery in the U.S. and Europe [3][10] - The adjusted cash efficiency ratio improved to 61.3% in the first nine months of 2025, up from 59% in the previous year [3] - The consensus estimate for PRAA's 2025 earnings per share is $1.45, reflecting an 8.2% increase over the past month, with a projected 55.2% rise for 2026 [5] - Revenue estimates for 2025 stand at $1.17 billion, indicating a 5.4% year-over-year increase, with expectations for a further 7.3% increase in 2026 [6][10] Strategic Focus - Total portfolio purchases in the last quarter were $255.5 million, indicating a strategic shift towards selective and value-oriented buying, with a target of $1.2 billion in total portfolio purchases for 2025 [4][10] - This disciplined approach aims to preserve long-term returns by avoiding overpayment for portfolios and focusing on non-performing loans that meet return thresholds [4] Market Position - PRA Group operates in the Americas, Australia, and Europe, with a market capitalization of nearly $667 million, and is currently rated as a Zacks Rank 2 (Buy) stock [2]