PRA Group, Inc. has recently released its latest 10-Q report. The company buys and manages nonperforming loan portfolios, with most purchases coming from credit originators that have stopped pursuing or have been unable to collect the full balance owed. It also buys loans tied to bankruptcy or similar proceedings and provides fee-based services for class action claims recoveries. Its operations are centered in the United States and Europe, with smaller activity in South America, Canada and Australia.
In the first quarter of 2026, PRA Group reported net income attributable to the company of $28.2 million, up from $3.7 million a year earlier, while diluted earnings per share rose to $0.73 from $0.09. Total revenues increased 16.7% to $314.5 million, driven by portfolio income of $269.6 million and changes in expected recoveries of $43.9 million. Cash collections climbed 11.0% to $551.9 million, with U.S. collections rising 10.5% to $288.6 million and European collections increasing 14.5% to $212.6 million.
Portfolio purchases fell 24.3% to $220.9 million, including a 26.4% decline in the U.S. to $118.5 million and a 19.2% drop in Europe to $91.6 million. The company said the lower purchase volume reflected discipline around net returns, and noted that its global Core vintage PPM was 1.96x, down from 2.01x in the prior-year quarter. Estimated remaining collections reached $8.55 billion at March 31, 2026, up from $7.81 billion a year earlier.
Operating expenses rose 8.3% to $211.3 million. Legal collection costs were the biggest driver of the increase, jumping 45.1% to $48.5 million, while legal collection fees rose 12.1% to $17.1 million and agency fees increased 15.0% to $24.6 million. Compensation and benefits declined 3.5% to $70.7 million.
By geography, portfolio revenue increased 16.6% to $313.5 million, with U.S. revenue up 14.9% to $156.0 million and Europe revenue up 25.5% to $125.4 million. U.S. legal collections rose to $141.0 million from $111.2 million, while European legal collections increased to $74.0 million from $62.0 million. Total finance receivables, net, were $4.64 billion at quarter-end, compared with $4.31 billion a year earlier, and borrowings increased to $3.78 billion from $3.47 billion. Total stockholders’ equity attributable to PRA Group fell to $1.00 billion from $1.22 billion. Following these announcements, the company's shares moved -8.14%, and are now trading at a price of $19.18. For more information, read the company's full 10-Q submission here.
