PRA Group used its earnings call yesterday to send a clear message: its results are less about headline numbers and more about how the engine is being rebuilt. Management outlined a multi-year shift in channel mix, cost structure, underwriting discipline, and technology adoption that is materially changing how the company collects — particularly in the U.S.Overall, the company reported net income of $56 million for the final quarter of 2025, up from $18 million during the same period a year earlier.
The company’s legal is contributing more to its bottom line, and getting more investments as a result. PRA invested $125 million into the U.S. legal collections channel in 2025, and legal collection costs rose 30% year over year to $162 million. Legal collections accounted for 48% of U.S. forecast collections in 2025, up from 39% two years ago. Management emphasized that legal is not the first engagement channel, but when other outreach efforts fail, it provides greater certainty and typically drives higher overall recoveries. U.S. legal cash collections grew 28% in 2025, reflecting the scaling of that channel.
At the same time, PRA is redesigning its expense base. Offshore agents now represent approximately 32% of agent headcount, up from 0% two years ago. Call center headcount in the U.S. declined by 42% in 2025, and the number of U.S. call centers was reduced from six to three. The company also expanded its use of third-party debt collection agencies, with more than 2 million U.S. accounts now serviced externally. Management described this blended model as a deliberate shift toward greater cost variability and operational flexibility through the credit cycle.
Digital performance also accelerated, with global digital cash collections increasing 25% in 2025. PRA highlighted ongoing AI pilots across collections workflows, including large language models to process unstructured documents, chatbots to improve consumer engagement, and analytics initiatives to better target legal placements and optimize strategy. A senior AI leader was recently hired to accelerate these efforts across markets.
