NASDAQ$PRAA

Pra Group Inc · Q4 2024 earnings

Q4 2024 earnings · · After market close · Investor relations

Briefing

PRA Group reported a transformational year culminating in enhanced profitability, driven by record portfolio purchases and significant cash collections growth.

PRA Group, a global leader in acquiring and collecting nonperforming loans, reported strong financial results for Q4 2024 and the full year 2024. The company achieved record portfolio purchases of $1.4 billion for the full year and saw cash collections grow by 13% year-over-year to $1.9 billion. Net income attributable to PRA Group, Inc. for Q4 2024 was $18.5 million, or $0.47 per diluted share, marking a significant improvement from the previous year.

  • Net income attributable to PRA Group, Inc. for Q4 2024 was $18.5 million, or $0.47 per diluted share.
  • Total portfolio purchases reached $432.7 million in Q4 2024, contributing to a record $1.4 billion for the full year.
  • Total cash collections increased 14.1% to $468.1 million in Q4 2024 compared to the same period last year.
  • The company updated its 2025 financial targets, raising the portfolio purchases target to $1.2 billion.

Headline financials

Total Revenue

$293K

Previous: $221M-99.9%
EPS (adj)

$0.47

Previous: -$0.22+313.6%
Total cash collections

$468K

Previous: $410K+14.1%
Estimated remaining collections

$7.5B

No prior period
Cash efficiency ratio

58.0%

No prior period
Total portfolio purchases

$433K

Previous: $285K+51.9%
Adjusted EBITDA (LTM)

$1.14M

Previous: $1.01M+13.0%
Capital Expenditures

-$1.16M

Previous: $581K-300.3%
Net Income

$18.5K

Previous: -$5.86M+100.3%
Operating Income

$94.1K

Previous: $45.5M-99.8%

Revenue & EPS history

Pra Group · Revenue · Quarterly

$293K

Q4 2024-99.9%vs Q4 2023
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Revenue by segment

Pra Group · $205M total across 2 segments · Q2 2023

  • Portfolio income
    $184M
  • Changes in expected recoveries
    $21.1M

Forward guidance

PRA Group has updated its financial and operational targets for the full year 2025, demonstrating optimism for sustained profitable growth and shareholder value.

Tailwinds

  • Targeting $1.2 billion in portfolio investments for 2025, an increase from previous targets.
  • Expecting high single-digit cash collections growth.
  • Aiming for a cash efficiency ratio of 60%+.
  • Targeting approximately 12% return on average tangible equity.
  • Positioned to further optimize the platform and drive shareholder value.

Headwinds

  • The targets exclude the impact of the Company exercising its right to sell its equity interest in RCB Investimentos S.A., the servicing company for the Company's nonperforming loans in Brazil.
  • The transaction does not impact the Company's ownership of any portfolios in Brazil.
  • The Company does not expect this to impact its existing operations or future portfolio investment opportunities in this market.
  • Forward-looking statements involve risks and uncertainties, and actual events or results may differ materially.
  • Amounts purchased under forward flow commitments may vary significantly due to actual delivery by sellers and foreign exchange rate fluctuations.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q4 2024

Historical avgQ4 2024

+0.5%

Avg return

Earnings day

+0.9%

Avg return

5 days after

+2.2%

Avg return

30 days after

47%

32 / 68 earnings

Positive

+37.1%

Q1 2020

Best reaction

-31.0%

Q1 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-8.1%-29.6%
Q4 2025+24.0%+34.6%+33.0%
Q3 2025-11.1%+0.7%+17.6%
Q1 2025-29.4%-30.0%-26.1%
Q4 2024-4.2%-6.0%-13.9%
Q3 2024+14.3%+16.0%-0.4%
Q2 2024-10.3%-5.3%-7.5%
Q1 2024+0.4%+6.1%-16.5%
Q4 2023+21.6%+13.3%-0.8%
Q3 2023+20.3%+14.2%+46.6%
Q2 2023-0.6%-7.1%-12.1%
Q1 2023-31.0%-47.4%-33.8%
Q4 2022+5.8%+5.5%-5.2%
Q3 2022-3.1%+1.7%+7.7%
Q2 2022+2.3%+2.3%-4.8%
Q1 2022-6.5%-8.8%-11.2%
Q4 2021-2.2%-2.0%-1.7%
Q3 2021-2.1%-4.0%-3.6%
Q2 2021+9.6%+6.7%+10.2%
Q1 2021+0.0%-3.1%+0.3%
Q4 2020-2.1%-2.5%-1.0%
Q3 2020-1.0%+5.4%+17.9%
Q2 2020+5.7%+6.9%+7.3%
Q1 2020+37.1%+32.6%+56.3%
Q4 2019+10.6%+8.2%-20.3%
Q3 2019+7.7%+7.3%+6.3%
Q2 2019+11.8%+12.3%+16.4%
Q1 2019+5.6%+5.4%+6.5%
Q4 2018-3.8%-6.8%-16.1%
Q3 2018-11.6%-2.0%-13.0%
Q2 2018-8.6%-5.7%-7.2%
Q1 2018+8.3%+6.4%+12.2%
Q4 2017+8.7%+10.4%+7.8%
Q3 2017+23.7%+20.4%+28.2%
Q2 2017-11.5%-17.7%-26.8%
Q1 2017+10.1%+11.0%+12.0%
Q4 2016-14.2%-17.2%-21.1%
Q3 2016-12.6%+0.3%+20.1%
Q2 2016+6.8%+0.7%+20.7%
Q1 2016-20.7%
Q4 2015-15.9%
Q3 2015-14.1%
Q2 2015-10.0%
Q1 2015+5.9%
Q4 2014-0.7%
Q3 2014-2.3%
Q2 2014-6.2%
Q1 2014-1.5%
Q4 2013+16.7%
Q3 2013-6.2%
Q2 2013+5.6%
Q1 2013+7.3%
Q4 2012+6.9%
Q3 2012+4.4%
Q2 2012+18.0%
Q1 2012+10.5%
Q4 2011-0.6%
Q3 2011-0.5%
Q1 2010-11.0%
Q2 2011-11.0%
Q1 2011+1.7%
Q4 2008+0.4%
Q4 2010+0.4%
Q3 2010+0.1%
Q3 2009+0.1%
Q2 2010-1.0%
Q2 2009-1.0%
Q4 2009-1.0%

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