PRA Group, Inc. (PRAA) AI Stock Analysis

PRA Group, Inc. is a financial and business services provider that specializes in the acquisition, collection, and management of nonperforming loan portfolios across the Americas, Australia, and Europe. Founded in 1996 and based in Norfolk, Virginia, the company purchases unpaid obligations owed by individuals to banks and consumer finance entities. These include credit card balances, private label credit cards, installment loans, lines of credit, legal judgments, and trade payables. PRA Group also provides fee-based services for class action claims recoveries and the servicing of consumer bankruptcy accounts, partnering with banks, credit unions, retailers, utilities, and auto lenders.

Between FY2021 and FY2025, PRA Group experienced revenue swings, dropping from $1.10B in FY2021 to $815.5M in FY2023, before rebounding 37.8% in FY2024 to $1.12B and rising 10.4% to $1.24B in FY2025. Over the 5 years from FY2020 to FY2025, revenue achieved a CAGR of 3.1%. FY2025 gross margin stood at 99.2% and operating margin was 33.9%, though net income was -$305.1M. For the latest quarter ended June 30, 2026, quarterly revenue grew 29.4% year-over-year and quarterly earnings rose 40.1%, bringing trailing twelve month revenue to $1.33B with an operating margin of 41.2%.

As of June 30, 2026, PRA Group held $132.4M in cash and short-term investments against total debt of $30.7M, resulting in net cash of $101.8M. The company reported a current ratio of 1.98 and a debt-to-equity ratio of 0.03 alongside shareholders' equity of $1.05B. In FY2025, operating cash flow was -$85.5M and free cash flow was -$90.4M. Capital expenditures totaled $4.8M in FY2025, while share buybacks reached $20.0M, contributing to a 5-year share count change of -12.1%.

At a closing price of $19.39 on October 16, 2026, PRA Group traded at a market capitalization of $730.0M and an enterprise value of $4.29B. Its forward P/E of 11.6x sits above the 10.8x median of its US-listed Financial Services peers, while its EV/EBITDA of 16.4x is higher than the peer median of 11.7x. Conversely, its price-to-sales ratio of 0.5x is below the peer median of 3.2x. Over the past year, PRAA returned 45.5%, outperforming the S&P 500's 16.8% gain, but its 5-year return of -54.9% lagged the index's 83.0% return.

Wall Street analysts carry 1 Strong Buy, 2 Hold, and 0 Sell ratings on PRA Group. The mean price target is $26.00, representing a 34.1% upside from the last close of $19.39. For the fiscal year ending December 31, 2026, analysts estimate EPS of $3.40, reflecting 84.8% growth, on revenue of $1.30B. Next fiscal year estimates project EPS of $2.60 on revenue of $1.24B. The company beat EPS estimates in each of its last 4 quarters, with its next earnings date scheduled for November 5, 2026.

This page is an AI-written research summary of PRA Group, Inc. (PRAA). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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