PRA Group, Inc. reported its financial results for the first quarter of 2025, revealing total revenues of $269.6 million, a 5.5% increase from $255.6 million in the same period last year. The company's portfolio income, a key revenue driver, rose by 19.3% to $241.0 million, up from $202.1 million in Q1 2024. However, net income attributable to PRA Group decreased slightly to $3.7 million, compared to $3.5 million in the prior year, reflecting a more challenging environment for expected recoveries, which fell to $27.9 million from $51.7 million.
The company's financial position showed significant growth, with total assets increasing to $5.1 billion as of March 31, 2025, compared to $4.9 billion at the end of 2024. This growth was primarily driven by an increase in finance receivables, which rose to $4.3 billion from $4.1 billion, attributed to portfolio acquisitions totaling $291.7 million during the quarter. Additionally, PRA Group's cash and cash equivalents increased to $128.7 million, up from $105.9 million at the end of the previous year.
Operationally, PRA Group experienced a 10.7% increase in cash collections, totaling $497.4 million, compared to $449.5 million in Q1 2024. The company noted that approximately half of its cash collections were generated from international operations, highlighting the importance of its global diversification strategy. In the U.S., cash collections increased by 19.7% to $240.5 million, while European collections also saw a 10.8% rise to $185.6 million. However, the company faced challenges in Brazil, where cash collections decreased due to foreign exchange fluctuations and lower purchasing levels.
Strategically, PRA Group completed the sale of its remaining 11.7% interest in RCB Investimentos S.A. in April 2025, which is expected to result in a pre-tax gain of approximately $38.0 million. This transaction aligns with the company's focus on optimizing its portfolio investments and enhancing its operational efficiency. Looking ahead, PRA Group anticipates continued portfolio supply in the U.S. and stable conditions in Europe, while maintaining a disciplined approach to purchasing nonperforming loans. The company remains committed to improving its cash generation and cost management initiatives to drive future growth.
About PRA GROUP INC
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