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.
REPAY's Strategic Focus on Organic Growth and Capital Allocation Priorities
REPAY emphasized its focus on organic growth and investments, with a clear priority on managing CapEx as a percentage of revenue.
The company plans to use cash on hand to reduce its $220 million convertible notes due in February 2026, indicating a strategic debt management approach.
Management highlighted the potential for opportunistic share repurchases, with $38 million spent on buying back 7.9 million shares year-to-date.
REPAY remains open to strategic tuck-in M&A to accelerate growth, focusing on verticals like consumer payments and business payments.
The company aims to maintain a strong balance sheet with ample liquidity, including $413 million in total liquidity, to support its strategic initiatives.
Ameriprise reported adjusted operating EPS growth of 7% to $9.11 with a strong margin of 27%.
Ameriprise returned 81% of operating earnings to shareholders in the quarter and plans to increase payout ratio to 85% for the second half of the year.
Asset management operating earnings increased 2% to $222 million with margins at 39%.
Free cash flow generation remains strong with a 90% free cash flow conversion rate across segments.
Retirement and Protection Solutions earnings increased 9% to $214 million, driven by favorable life claims and strong interest earnings.
Return on equity remains very strong at 52%, among the industry's best.
The bank's total assets increased 6%, with good loan growth and spread earnings.
Total revenues increased 4% driven by asset growth and strong transactional activity.
Wealth management client assets grew 11% to a record $1.1 trillion, with wrap assets up 15%.
Core FFO per share reached a record $1.87, up 13% year-over-year and 6% higher than last quarter, reflecting strong upside from hyperscale commencements and better-than-expected 0-1 megawatt plus interconnection bookings.
Data center revenue increased 11% year-over-year, supported by strong renewal spreads, rent escalators and new lease commencements, offsetting disposition impacts.
Development CapEx was over $900 million gross, $700 million net to Digital Realty, with 96 megawatts of new capacity delivered (98% pre-leased) and 16 megawatts of new projects started construction.
Digital Realty posted double-digit growth in revenue, adjusted EBITDA and core FFO this quarter, driven by record lease commencements, low churn and higher fee income.
Gross data center development pipeline stands at $9 billion with a 12.2% expected stabilized yield; land bank grew to 3.7 gigawatts, extending runway to 5 gigawatts.
Leasing in the quarter totaled $177 million at 100% share, including $135 million at Digital Realty's share, with $90 million in the 0-1 megawatt plus interconnection category, an 18% increase over the prior record.
Renewal leases signed in the quarter totaled $177 million with a blended 7.3% cash basis increase, exceeding prior guidance.
Same-capital cash NOI grew 4.4% year-over-year, driven by 5.9% growth in data center revenue; on a constant currency basis, same-capital cash NOI rose 1.8%.
Total churn declined to 1%, with negligible churn in the greater than a megawatt category.
Dafinchi