PRA Group Inc (NASDAQ:PRAA), a global acquirer of nonperforming loans, reported fourth-quarter and full-year 2025 financial results that significantly exceeded analyst expectations, triggering a sharp positive reaction in its stock price.
Earnings and Revenue Highlights
The company’s performance for the quarter ending December 31, 2025, showcased substantial beats on key financial metrics compared to Wall Street forecasts.
- Earnings Per Share (EPS): PRA Group reported non-GAAP EPS of $1.46 for Q4 2025. This result dramatically surpassed the analyst consensus estimate of $0.27.
- Revenue: Quarterly revenue came in at $333.4 million, comfortably above the estimated $294.6 million.
This strong quarterly finish contributed to the full-year narrative, where the company emphasized robust operational growth despite a significant accounting charge.
Market Reaction and Recent Performance
The market responded decisively to the earnings surprise. In after-hours trading following the release, the stock surged approximately 13.1%. This immediate jump indicates investor approval of the underlying operational performance, choosing to focus on the earnings beat rather than the full-year net loss driven by non-cash impairments.
The stock’s performance over recent periods shows a positive trend leading into the report:
- Last Week: +10.6%
- Last Two Weeks: +16.1%
- Last Month: -2.2%
The pre-earnings upward momentum suggests building investor optimism, which was validated and accelerated by the Q4 results.
Key Takeaways from the Press Release
Beyond the headline EPS and revenue figures, the company’s press release highlighted several critical operational achievements for the full year 2025:
- Cash Collections Growth: The company achieved a 13% year-over-year increase in cash collections, a core metric for a portfolio acquirer like PRA Group.
- Portfolio Purchasing Activity: PRA Group deployed $1.2 billion to purchase new nonperforming loan portfolios throughout the year, signaling confidence in future collection opportunities.
- Full-Year Bottom Line: The company reported a net loss attributable to PRA Group of $305 million for 2025. However, this was primarily due to a non-cash goodwill impairment charge of $413 million recorded in the third quarter. On an adjusted basis, which excludes this and other items, net income attributable to PRA was $73 million for the full year.
Looking Ahead
While the press release did not provide specific quantitative forward guidance, analyst estimates for the coming periods offer a benchmark. For the full year 2026, the consensus currently stands at EPS of $1.38 on revenue of $1.24 billion. For the immediate next quarter (Q1 2026), analysts are estimating EPS of $0.50 on revenue of $318.1 million. Investors will likely monitor the company’s ability to sustain its collection efficiency and purchase discipline against these expectations.
For a detailed breakdown of historical earnings, future estimates, and analyst ratings, you can review the data here.
Disclaimer: This article is for informational purposes only and does not constitute financial advice, a recommendation, or an offer to buy or sell any security. Investing involves risk, including the potential loss of principal.
