PRA Group reported second quarter revenue of $372 million, up 29% year over year, and net income of $58 million, or $1.51 per diluted share, in results announced yesterday.
The company announced that its physical footprint is nearly gone. PRA now runs a single U.S. call center, down from seven in 2023, after closing two more sites during the quarter and moving those operations to a work-from-home model. The company also consolidated its two offshore third-party collection sites into one location, which executives said is performing at target levels. A second wave of cost cuts eliminated 100 U.S. corporate and overhead roles plus 35 offshore positions, expected to generate roughly $20 million in annualized net savings. Since the start of 2025, PRA has cut more than 215 corporate and overhead roles, a reduction of more than 25%, along with more than 575 call center positions. Cash collections and earnings grew throughout.
Where did the work go? Two places. First, digital: nearly half of new payment plans created during the quarter came through the digital channel, and communication expense dropped 19% as the company pulled back on letters. PRA launched its cloud-based omnichannel contact platform in the U.S. last month, unifying voice, digital, chat, and email in a single system for agents. A dedicated AI team based in Charlotte now oversees global AI initiatives targeting automation, analytics, and back-office productivity.
Second, legal. U.S. legal cash collections grew 26% to $150 million and now represent more than half of all U.S. core cash collections, the payoff from court cost investments made in prior periods. Executives stressed that legal is not the preferred channel and comes only after extended outreach through other channels for consumers with an ability to pay. Legal cost growth is expected to moderate in 2026 after running at 40% in 2024 and 30% in 2025.
Total U.S. cash collections grew 6%, outpacing the company’s overall 4% growth to $559 million. On the buying side, U.S. core purchases came in at $90 million for the quarter, and CEO Martin Sjolund described the U.S. supply environment as stable and competitive, with the company holding to its return hurdles rather than volume targets. U.S. purchase price multiples ticked up to 2.17 in the quarter, which Sjolund characterized as a normalization after Q1 buying skewed toward lower-multiple, lower-cost segments.
