PRA Group, Inc. reported net income attributable to PRA Group, Inc. of $3.659 million for the first quarter of 2025, a slight increase from $3.475 million in Q1 2024. Diluted earnings per share remained flat at $0.09 for both periods.
The company achieved a 19% increase in portfolio purchases, reaching $291.702 million, and a record Estimated Remaining Collections (ERC) balance of $7.8 billion. Cash collections grew for the fourth consecutive quarter, rising to $497.436 million, and the cash efficiency ratio improved by nearly 300 basis points.
However, changes in expected recoveries moderated to $27.922 million, down from $51.674 million in Q1 2024, impacting profitability. The company also stated that its Return on Average Tangible Equity (ROATE) target is now likely to be at a lower level than the previously targeted approximately 12%.
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