- Adjusted EBITDA grew 20% this quarter, outpacing the 13% growth in cash collections.
- Cash collections grew 13% year-over-year to $536 million, driven by recent portfolio purchases and investments in the U.S. legal channel.
- Ending ERC reached a record $8.3 billion, up 22% year-over-year and 6% sequentially.
- Net income attributable to PRA was $42 million or $1.08 diluted EPS, including a $30 million after-tax gain from the sale of equity interest in Brazil's RCB; excluding this gain, net income was $13 million or $0.32 EPS.
- Net interest expense increased by $7 million to $62 million due to higher debt balances.
- Net leverage (net debt to adjusted EBITDA) was 2.81x, within the long-term target range of 2x to 3x.
- Operating expenses were $203 million, up 4%, mainly due to higher professional services and legal collection costs.
- Overall business overperformed by 7%, with Europe exceeding expectations by 14% and Americas by 3%.
- PRA Group purchased $347 million of portfolios in Q2 2025, with $199 million in the Americas and $147 million in Europe.
- Q2 U.S. legal cash collections increased 24% year-over-year to $119 million.
- The 2025 purchase price multiple was 2.14x for Americas Core and 1.82x for Europe Core, continuing an upward trend over recent years.
- The company repurchased $10 million of stock during the quarter, limited by debt covenant constraints.
- Total portfolio revenue was $284 million, up 1%, with portfolio income up 20% to $251 million reflecting higher portfolio investments at elevated multiples.
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- Core bank ROA was approximately 1.38%, supported by a low cost of deposits around 1.75%.
- Core expenses normalized to approximately $21 million, with expected reductions from technology savings and amortization ending.
- Net interest income would have been $27.5 million excluding interest reversals, up from $26.4 million in Q1 and $24.9 million a year ago.
- Net interest margin (NIM) excluding consumer program effects was 3.15%, up from 3.13% last quarter and 2.80% a year ago.
- Noninterest income was $10.6 million, driven primarily by increased mortgage revenue.
- Pretax pre-provision earnings were about $8.4 million after adjustments for mortgage support costs and interest write-offs.
- Primis Financial Corp. reported $8.4 million in net income or $0.34 per share for Q2 2025, including a $7.5 million pretax gain on a portion of its interest in PFH.
- Provision expense was $1.2 million, with no provision required for the consumer program this quarter.
- A $50 million new private placement debt was closed in August 2025 to retire $60 million of senior notes maturing the same month.
- Adjusted net income per adjusted share was flat compared to last quarter and up slightly compared to the second quarter of 2024.
- Adjusted operating expenses increased 3% from the first quarter and 5% from the same quarter last year, mainly due to higher incentive compensation and a $1.2 million charge related to the closure of the China Post-Venture strategy.
- Adjusted operating income increased slightly compared to the prior quarter and 3% compared to the same quarter last year.
- Average AUM for the quarter was flat sequentially and up 5% compared to the June 2024 quarter; year-to-date average AUM improved 7% over the prior year 6-month period.
- Balance sheet remains strong with approximately $140 million of seed capital invested in seeded products and an unused $100 million revolving credit facility.
- Net client cash outflows during the June quarter were $1.9 billion, driven by lower gross equity inflows and outflows, partially offset by positive fixed income flows.
- Revenues for the quarter were up 2% compared to the March quarter and up 4% compared to the prior year second quarter.
- Second quarter results reflect strong equity market returns across global markets, driving ending AUM to $176 billion, up 8% compared to the March quarter.
- The Board declared a quarterly dividend of $0.73 per share for the June 2025 quarter, a 7% increase over the prior quarter.
- The second quarter marks the 12th consecutive quarter of positive flows for the fixed income business.
- Weighted average recurring fee rate for the quarter was 68 basis points, slightly up from the prior quarter.
- Year-to-date 2025 revenues were up 5% compared to the first half of 2024; adjusted operating expenses increased 4% primarily from higher incentive compensation and long-term incentive award grants.
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