PRA Group Q4 Cash Collections Rise 13.6% to $531.7M, ERC Hits $8.6B
PRA Group delivered Q4 2025 cash collections of $531.7M, up 13.6%, with diluted EPS of $1.46 and record estimated remaining collections of $8.6B. Full-year 2025 cash collections increased 12.8% to $2.1B, adjusted EBITDA rose 16% to $1.3B, and it incurred a $305.1M net loss driven by a $413M goodwill impairment.
1. Q4 2025 Performance
In Q4 2025, PRA Group reported total cash collections of $531.7 million, a 13.6% increase year-over-year, supported by a cash efficiency ratio of 61.4%. The company recorded net income of $56.5 million, or $1.46 diluted EPS, deployed $314.8 million on portfolio purchases, and achieved a record estimated remaining collections of $8.6 billion.
2. Full-Year 2025 Results
For the full year, PRA achieved cash collections of $2.1 billion, up 12.8%, and delivered adjusted EBITDA of $1.3 billion, a 16% increase. The company reported a net loss of $305.1 million, primarily due to a non-cash goodwill impairment charge of $413 million in Q3 2025, with adjusted net income of $72.6 million excluding impairment and divestiture gains.
3. Strategic Initiatives and Outlook
During 2025, PRA repurchased $20 million of shares and advanced cost-saving measures in its U.S. operations while modernizing IT and building European capabilities. Leadership unveiled the PRA 3.0 strategy to transform the firm into a technology-enabled global capital allocator, aiming to drive higher returns and reduce leverage going forward.