PRA Group Inc. reported a 55% gain in its stock over the past six months as the debt buyer posted a record $8.9 billion in Estimated Remaining Collections (ERC) and expanded its 2025 portfolio purchases to $1.2 billion.
Speaking at the 17th Annual Midwest IDEAS Conference, CEO Martin Sjolund and CFO Rakesh Sehgal outlined the company’s operational discipline and capital deployment strategy. The firm’s shares were trading at $19.45, valuing the company at $730 million, and remained below book value at 0.7x.
Q2 2025 net income reached $58 million, bringing the trailing 12-month total to $140 million. Adjusted EBITDA rose 35% year-over-year to approximately $1.4 billion, while net leverage declined to 2.67x, down from a peak of 2.9x in Q3 2024 and approaching the mid-2x long-term target.
The company allocated $297 million to portfolio investments in Q2, with 2025 purchases now projected at $1.2 billion—the third highest in its history. This follows a record $1.4 billion in 2024 portfolio purchases. Cash collections totaled $559 million in Q2, up 32% from the prior year.
PRA Group operates in 18 markets, with roughly 60% of its ERC derived from Europe and 40% from the U.S. The firm recently refinanced a €730 million European credit facility and maintains total committed capital of €3 billion, including about €1 billion in liquidity. No debt maturities are due until 2028.
Executives highlighted cost-saving measures, including a 25% reduction in U.S. corporate overhead staff and a 575-role cut in call center staffing. U.S. call centers were consolidated from seven sites to one primary facility, with one offshore location closed in Q2. Annualized net savings from restructuring are estimated at $35 million.
The company launched a global omnichannel contact platform supporting voice, text, email, and chat, while its portfolio pricing ranges from $0.05 to $0.50 per dollar of face value. A $349 million write-up of European portfolios occurred after 26 consecutive quarters of cash overperformance.
Sjolund emphasized the firm’s role in returning capital to banks, stating, "We play a very important role in the ecosystem of the financial system, actually, because we return capital to banks so that they can focus on lending."
