PRA GROUP (PRAA) Company Report

PRA Group reported a net loss attributable to PRA of $408 million in Q3 2025, primarily due to a $413 million non-recurring, non-cash goodwill impairment charge related to historical acquisitions, mainly in Europe.
Despite the net loss, cash collections increased by 14%, reaching $542 million in Q3 2025, with U.S. legal cash collections growing by 27%. The Adjusted Cash Efficiency Ratio for Q3 2025 was 61%.
The company's Adjusted EBITDA (LTM) continued to grow, reaching $1,265 million in Q3 2025, contributing to a decrease in net leverage to 2.77x.
Under the new CEO, the company implemented cost efficiency measures, eliminating 115+ corporate and overhead roles for $20 million in gross annualized cost savings and reorganizing the U.S. business.

Nov 3, 2025, 10:00 PM

Presentation

PRAA Reports Q3 2025 Results with Goodwill Impairment and Strategic Progress

PRAA

Earnings

Layoffs

Debt Issuance

PRAA reported a net loss of $408 million for Q3 2025, primarily due to a non-recurring non-cash goodwill impairment charge of $413 million. Excluding this charge, adjusted net income was $21 million, translating to an adjusted ROATE of 9%.
Cash collections grew 14% year-over-year to $542 million, exceeding global expectations by 8%. Adjusted EBITDA for the last 12 months increased 15% to $1.3 billion.
The company implemented a cost reduction program in the U.S., resulting in the elimination of more than 250 roles and anticipated gross annualized cost savings of approximately $20 million.
PRAA reaffirmed its 2025 financial targets, including a $1.2 billion investment goal, high single-digit cash collections growth, and a 60% plus cash efficiency target.
Net leverage stood at 2.8 times as of September 30, 2025, and the company strengthened its capital structure by issuing its first euro-denominated bond of EUR 300 million.

Nov 3, 2025, 10:00 PM

Transcript

PRA Group, Inc. Reports Q3 2025 Results

PRAA

Earnings

Profit Warning

Guidance Update

PRA Group, Inc. reported a net loss of $407.7 million, or ($10.43) diluted earnings per share, for Q3 2025, primarily due to a $412.6 million non-recurring, non-cash goodwill impairment charge. Excluding this charge, adjusted net income was $20.9 million, or $0.53 diluted earnings per share.
Total cash collections increased by 13.7% year-over-year to $542.2 million in Q3 2025, contributing to a record estimated remaining collections (ERC) of $8.4 billion, up 15.2%.
The company purchased $255.5 million in nonperforming loan portfolios during Q3 2025 and is on track to achieve its 2025 portfolio purchases target of $1.2 billion.
CEO Martin Sjolund highlighted significant progress on U.S. strategic priorities and noted that the European business outperformed cash collections expectations by 11% year-to-date.

Nov 3, 2025, 9:06 PM

8-K

PRA Group Reports Third Quarter 2025 Results

PRAA

Earnings

Revenue Acceleration/Inflection

PRA Group reported a net loss of $407.7 million, or ($10.43) diluted earnings per share, for Q3 2025, which included a $412.6 million non-recurring, non-cash goodwill impairment charge. Excluding this charge, the company delivered adjusted net income of $20.9 million, or $0.53 diluted earnings per share.
Total cash collections increased by 13.7% to $542.2 million in Q3 2025 compared to Q3 2024, driven by recent portfolio purchases, strong European business performance, and increased U.S. legal collections.
The company achieved record estimated remaining collections (ERC) of $8.4 billion, representing a 15.2% increase.
PRA Group purchased $255.5 million in portfolios of nonperforming loans in Q3 2025 and remains on track to achieve its 2025 portfolio purchases target of $1.2 billion.

Nov 3, 2025, 9:05 PM

Press Release

Stellar Bancorp, Inc. Reports Third Quarter 2025 Results

PRAA

Earnings

Dividends

Stellar Bancorp, Inc. reported net income of $25.7 million, or diluted earnings per share of $0.50, for the third quarter of 2025.
The company's tax equivalent net interest margin for Q3 2025 was 4.20%, an increase from 4.18% in the second quarter of 2025.
Total assets increased to $10.63 billion at September 30, 2025, from $10.49 billion at June 30, 2025, while total deposits grew to $8.82 billion from $8.67 billion over the same period.
Stellar Bancorp strengthened its capital position, with the total risk-based capital ratio rising to 16.33% and tangible book value per share increasing to $21.08 at September 30, 2025.
Management continued to reposition the loan portfolio, reducing exposure to non-relationship real estate commitments and moving towards a more balanced mix of C&I and real estate loans.

Oct 24, 2025, 11:00 AM

Press Release

PRA Group Issues 6.250% Senior Notes Due 2032

PRAA

Debt Issuance

PRA Group Inc., through PRA GROUP EUROPE HOLDING II S.à R.L., has issued 6.250% Senior Notes due 2032 under an Indenture dated September 30, 2025.
The net proceeds from this offering are intended to repay approximately $174 million of outstanding borrowings under its North American revolving credit facility and approximately $174 million under its European revolving credit facility. These prepayments will not reduce the revolving borrowing commitment amounts and will be available for re-borrowing.
The Notes are subject to optional redemption: prior to September 30, 2028, at 100.0% of the principal amount plus an Applicable Premium; and on or after September 30, 2028, at 103.1250% in 2028, 101.5625% in 2029, and 100.000% in 2030 and thereafter.
The company's covenants allow for the incurrence of Indebtedness under Credit Facilities up to the greater of $4,000.0 million or an amount that does not cause the Consolidated Senior Secured Leverage Ratio to exceed 3.25 to 1.00.

Oct 1, 2025, 11:24 AM

8-K

PRA Group prices €300 million senior notes offering

PRAA

Debt Issuance

PRA Group, Inc. priced an offering of €300 million aggregate principal amount of 6.250% Senior Notes due 2032.
The offering is a private transaction, with an expected closing date of September 30, 2025.
The company intends to use the net proceeds to repay approximately $174 million of outstanding borrowings under its North American revolving credit facility and approximately $174 million under its European revolving credit facility.

Sep 24, 2025, 9:32 PM

Press Release

PRA Group Subsidiary Prices €300 Million Senior Notes Offering

PRAA

Debt Issuance

PRA Group, Inc.'s wholly-owned subsidiary, PRA Group Europe Holding II S.à r.l. Luxembourg, priced an offering of €300 million aggregate principal amount of 6.250% Senior Notes due 2032 on September 24, 2025.
The offering is expected to close on or about September 30, 2025.
The net proceeds from the offering will be used to repay approximately $174 million of outstanding borrowings under its North American revolving credit facility and approximately $174 million of outstanding borrowings under its European revolving credit facility.
The Notes will be guaranteed on a senior unsecured basis by PRA Group, Inc. and its existing and future domestic subsidiaries that are borrowers or guarantors under the Company’s North American Credit Agreement.

Sep 24, 2025, 9:19 PM

8-K

PRA Group Subsidiary Announces Proposed €300 Million Senior Notes Offering

PRAA

Debt Issuance

PRA Group's wholly-owned subsidiary, PRA Group Europe Holding II S.à r.l., announced its intent to offer €300 million aggregate principal amount of senior notes due 2032.
The net proceeds from the offering are planned to repay approximately $174 million of outstanding borrowings under PRA Group's North American revolving credit facility and approximately $174 million under its European revolving credit facility.
The notes will be guaranteed on a senior unsecured basis by PRA Group, Inc. and its domestic subsidiaries.
This offering is a private transaction, exempt from registration requirements, and is not intended for retail investors in the EEA or UK.

Sep 22, 2025, 11:33 AM

8-K

PRA Group Announces Proposed Senior Notes Offering

PRAA

Debt Issuance

PRA Group, Inc.'s wholly-owned subsidiary, PRA Group Europe Holding II S.à r.l. Luxembourg, plans to offer €300 million aggregate principal amount of senior notes due 2032.
The net proceeds from this offering are intended to repay approximately $174 million of outstanding borrowings under its North American revolving credit facility and approximately $174 million under its European revolving credit facility.
The notes will be offered in a private transaction to qualified institutional buyers and certain persons outside the United States, and are not intended for retail investors in the EEA or the United Kingdom.