PRA Group Inc. (NASDAQ: PRAA), a leading acquirer and collector of nonperforming loans, saw its stock price surge 11.96% in after-hours trading on Monday following the release of its impressive second-quarter 2025 financial results. The company reported significant improvements across key financial metrics, surpassing analyst expectations and demonstrating robust growth.
The highlight of PRA Group's Q2 report was the doubling of its earnings per share (EPS) to $1.08, up from $0.54 in the same period last year. This remarkable 100% increase was driven by a net income of $42.374 million, nearly double the $21.5 million reported in Q2 2024. The company's quarterly sales reached $287.688 million, beating the analyst consensus estimate of $279.343 million by 2.99% and showing a 1.22% increase from the previous year.
PRA Group's strong performance was underpinned by robust cash collections, which totaled $536.3 million for the quarter. The Americas and Australia Core segment made a significant contribution, collecting $301.7 million. Additionally, the company reported an approximate $30 million after-tax gain from the previously announced sale of RCB equity interest in Brazil, further boosting its financial results. In a show of confidence, PRA Group also repurchased $10 million worth of shares during the quarter. Martin Sjolund, president and CEO of PRA Group, emphasized the company's focus on high-return opportunities and improving cash efficiency, stating, "We remain committed to optimizing investments, operational execution, and managing expenses as part of our strategic pillars." This strong quarterly performance and positive outlook appear to have fueled investor enthusiasm, resulting in the significant after-hours stock price increase.
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