Overview

* PRA Group ( PRAA ) Q2 net income rises 96.9%, driven by Brazil equity sale gain

* Total cash collections up 13.2%, with improved cash efficiency ratio

* Adjusted EBITDA grows 16.4%, outpacing cash collections growth

Outlook

* PRA Group ( PRAA ) targets $1.2 bln in portfolio purchases for full-year 2025

Result Drivers

* PORTFOLIO PURCHASES - Strong portfolio purchases at attractive returns contributed to record ERC

* BRAZIL EQUITY SALE - Net income includes gain from sale of equity interest in Brazil

* CASH EFFICIENCY - Improved cash efficiency ratio reflects better expense management and increased cash collections

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 EPS $1.08

Q2 Net $42.37

Income mln

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the corporate financial services peer group is "buy"

* Wall Street's median 12-month price target for PRA Group Inc ( PRAA ) is $23.00, about 34.5% above its August 1 closing price of $15.06

* The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 8 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)