PRA Group, Inc. (PRAA)
NASDAQFinancialsFinancial - Credit ServicesSnapshot 2026-09-04
$19.02+0.16%
Close 2026-09-04 · 1-day change
NASDAQFinancialsFinancial - Credit ServicesSnapshot 2026-09-04
Intact: The reason to own it still holds.
PRA Group is improving cash collections, up 11% in the last year. Net income rose from $3.7M to $28.2M in one year. The company focuses on modernizing technology and AI to boost growth. Earnings per share guidance for 2026 is $1.84, showing profit potential.
The company is still loss-making with negative free cash flow. Revenue growth is expected to decline slightly by -1.5%. The recent sharp share price drop shows investor concern. Operational improvements may not sustain profit growth.
The market price is about 58% below our fair value near $46. Analysts expect about -2% revenue growth, reflecting skepticism. Our view is more optimistic on earnings recovery and cash collections.
Breaks if: cash collections fall below $497M in any quarter after 2026-Q1
Drive growth in cash collections through operational initiatives and portfolio investments across regions.
This is not a price target or investment advice.
A long-form read on the 1–3 year hold thesis. It updates when the weekly evidence changes.
This investment represents a turnaround story with a focus on improving earnings and disciplined capital allocation. The current thesis state is cautious, as recent financial performance has been weak compared to peers.
The market appears to price in a low level of fragility, suggesting that while PRAA is seen as cheap compared to peers, there is an expectations gap indicating some concern about future performance. The valuation reflects a justified premium versus its industry cohort.
Management is on track with its priorities, including the PRA 3.0 strategy and increasing net income. However, recent financial metrics show weakness, which may pose risks in the near term.
The thesis hinges on the performance of sector bellwethers like Visa, Mastercard, and American Express. Their ability to exceed earnings expectations could provide a favorable tailwind for PRAA, while any misses could lead to negative sentiment.
The most important moves since the prior daily snapshot.
Yes, our read has strengthened. The latest earnings beat supports a positive outlook for PRAA. Additionally, the company continues to advance its PRA 3.0 strategy, which reinforces its growth potential. There are no new threats identified that could weaken this outlook.
as of 2026-09-04
Review the evidence to watch, what would become a concern, and what would make it less concerning.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Stated in 3 of last 3 quarters. Total cash collections grew from $536 million in 2025-Q2 to $559 million in 2026-Q2 (+4%). The growth reflects operational initiatives and portfolio investments. Management is delivering on cash collection enhancement.
“Total cash collections of $559 million, up 4% compared to Q2 2025.”
“Total cash collections of $551.9 million, up 11% compared to Q1 2025.”
“Total cash collections of $531.7 million, up 13.6% compared to Q4 2024.”
Breaks if: EPS guidance falls below $1.84 for FY26
Breaks if: net income falls below $3.7M in any quarter after 2026-Q1
Focus on improving net income through operational efficiencies and portfolio performance enhancements.
Stated in 3 of last 3 quarters. Net income grew from $42 million in 2026-Q1 to $58 million in 2026-Q2. Diluted EPS rose from $0.73 to $1.51. The trajectory matches management's emphasis on improving earnings.
“Net income attributable to PRA Group, Inc. of $58 million, or diluted earnings per share of $1.51.”
“Net income attributable to PRA Group, Inc. of $28 million, or diluted earnings per share of $0.73.”
“Net income attributable to PRA Group, Inc. of $56.5 million, or diluted earnings per share of $1.46.”
Breaks if: no progress or setbacks in PRA 3.0 technology initiatives over next 4 quarters
Advance PRA 3.0 strategy focusing on technology modernization, AI initiatives, and operational improvements to drive higher returns and long-term shareholder value.
Stated as a priority in 3 of last 3 quarters. Total portfolio revenue grew from $284 million in 2025-Q2 to $365 million in 2026-Q2 (+28%). Adjusted EBITDA for the 12 months ended June 30, 2026 was $1.4 billion, up 10%. Management consistently emphasizes PRA 3.0 strategy execution and financial results show delivering progress.
“We continued to execute against our PRA 3.0 strategy during the second quarter to drive higher returns and long-term shareholder value.”
“We plan to continue making progress on our new PRA 3.0 strategy, including modernizing our technology platforms and innovating with our new mobile app in the UK and global AI initiatives.”
“We are introducing our PRA 3.0 strategy to evolve the Company into a high-performing, technology-enabled global allocator of capital.”
In the 1 to 3 year view, PRAA's performance will depend on management's execution and external market conditions. Not investment advice.