PRA Group reported a record estimated remaining collections balance of $8.9 billion at the 17th Annual Midwest IDEAS Conference on Wednesday, with approximately 60% attributed to European portfolios and 40% to U.S. operations.
The company’s Q2 cash collections reached $559 million, a 32% increase compared with the same period in 2023, while portfolio investments totaled $297 million. PRA Group’s net leverage declined for the seventh consecutive quarter to 2.67 times, down from a peak of 2.9 times in Q3 2024 and approaching the long-term target range in the mid-2x area. Adjusted EBITDA rose to about $1.4 billion, up 35% since 2023, alongside a more than 200-basis-point improvement in cash efficiency over the same period.
Net income for Q2 2025 was $58 million, contributing to a 12-month total of $140 million. Full-year 2025 net income is projected at $73 million, matching 2024’s figure and rebounding from a $83 million loss in 2023, which the company attributed to portfolio write-downs linked to underwriting issues during the COVID-19 period.
Under its PRA 3.0 strategy, the company has reduced its U.S. corporate administrative workforce by 25%, eliminating over 200 positions, and cut its call center staff by 575 roles. These actions generated $35 million in annualized savings. U.S. call centers have been consolidated into a single main facility, and one offshore unit was closed in Q2 2025, with phone operations shifted abroad for cost efficiency.
PRA Group also refinanced its European credit facility in Q2 2025, securing a total committed capital of EUR 3 billion across relationships with more than 15 banks, including approximately EUR 1 billion in liquidity. The company has no debt maturities until 2028. A positive revaluation of $349 million was recorded for European portfolios, marking more than 20 consecutive quarters of cash performance exceeding expectations and over 26 consecutive quarters of better-than-expected collections.
The company’s board increased its share repurchase authorization to $150 million, with $40 million in buybacks executed since Q2 2025. Portfolio purchases reached $1.4 billion in 2024, a record, followed by $1.2 billion in 2025, the third-highest annual total in company history. Pricing for purchased portfolios varies by geography and loan type, ranging from about $0.05 to $0.50 per dollar of face value.
Martin Sjolund, chief executive officer, said the company remains focused on efficiently liquidating its large ERC balance to unlock future value.
