PRA Group Posts $58 Million Profit as European Portfolio Value Climbs

The Norfolk-based firm, a major player in the acquisition of nonperforming loans, saw its Estimated Remaining Collections (ERC) swell by $349 million following a deep-dive assessment of its European holdings. This upward revision reflects more than six years of sustained cash overperformance in the region, signaling a shift that management expects will drive higher portfolio income in the coming quarters.

Total cash collections climbed to $559 million, a 4% increase over the same period last year. While the company continues to lean into its core business, it is also aggressively trimming overhead. Recent moves include consolidating U.S. call center footprints and reducing headcount, which helped offset a $16 million rise in operating expenses—largely tied to increased legal collection efforts. Alongside these operational changes, the board has authorized a new $150 million share repurchase program, following the $10 million in buybacks executed during the second quarter.