PRA Group Sees Strong Fiscal Year with Record Growth

Pra Group Inc. ( (PRAA) ) has released its Q4 earnings. Here is a breakdown of the information Pra Group Inc. presented to its investors.

PRA Group, Inc. is a global leader in acquiring and collecting nonperforming loans, operating primarily in the financial services sector across the Americas, Europe, and Australia. With a focus on returning capital to banks and creditors, the company collaborates with consumers to help resolve debt.

PRA Group, Inc. reported a successful financial performance for the fourth quarter and full year of 2024, marking a transformational year with a return to enhanced profitability. The company achieved record portfolio purchases and substantial growth in cash collections, setting new financial targets for 2025.

Key highlights of the report include a net income of $18.5 million for Q4 2024 and $70.6 million for the full year, alongside record portfolio purchases amounting to $1.4 billion. Cash collections reached $468.1 million for the quarter and $1.9 billion for the year, reflecting a 13% growth. The company also improved its cash efficiency ratio to 58.8% and reported an adjusted EBITDA of $1.1 billion.

Operating expenses did see a rise, primarily due to increased investments in legal collections in the U.S. However, the company maintained strong financial health with total portfolio revenue increasing by 39.7% to $1.1 billion. For 2025, PRA Group expects high single-digit cash collections growth and plans to invest $1.2 billion in portfolio purchases.

Looking ahead, PRA Group is optimistic about sustaining profitable growth and enhancing shareholder value. The management’s strategic initiatives and disciplined investments are expected to drive future performance, with updated financial targets set for 2025, including a 60%+ cash efficiency ratio and a 12% return on average tangible equity.