📊 PRAA Key Takeaways
Is Pra Group Inc. (PRAA) a Good Investment?
Despite exceptional 577% revenue growth, PRA Group is severely unprofitable with a -25.4% net margin, negative operating income, and critically damaging free cash flow of -$90.4M. The company cannot cover interest expenses from operations and is destroying shareholder value with negative ROE of -31.1%, suggesting the growth is either unsustainable, acquisition-driven losses, or fundamentally poor business quality.
Why Buy Pra Group Inc. Stock? PRAA Key Strengths
- Exceptional revenue growth of 577% YoY indicates significant market activity and acquisition integration
- Manageable leverage with debt-to-equity of 0.78x provides room before becoming over-leveraged
- Cash position of $104.4M provides short-term liquidity runway
PRAA Stock Risks: Pra Group Inc. Investment Risks
- Operating income is deeply negative at -$30.3M despite $1.2B in revenue, indicating severe operational losses
- Free cash flow is sharply negative at -$90.4M, indicating cash depletion and inability to fund operations organically
- Interest coverage ratio of -0.2x means the company cannot cover debt service from operating earnings, creating refinancing risk
- Negative ROE (-31.1%) and ROA (-6.0%) demonstrate ongoing shareholder value destruction
- Quality of growth is poor with revenue expansion accompanied by accelerating losses, suggesting unsustainable business model or distressed assets
Key Metrics to Watch
- Path to operating profitability and operating margin expansion
- Free cash flow recovery and operating cash flow inflection
- Interest coverage ratio improvement toward positive territory
- Gross margin stabilization and cost structure rationalization
Pra Group Inc. (PRAA) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
PRAA Profit Margin, ROE & Profitability Analysis
PRAA vs Finance Sector: How Pra Group Inc. Compares
How Pra Group Inc. compares to Finance sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Pra Group Inc. Stock Overvalued? PRAA Valuation Analysis 2026
Based on fundamental analysis, Pra Group Inc. has mixed fundamental signals relative to the Finance sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Pra Group Inc. Balance Sheet: PRAA Debt, Cash & Liquidity
PRAA Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Pra Group Inc.'s revenue has declined by 80% over the 5-year period, indicating business contraction. The most recent EPS of $-2.13 indicates the company is currently unprofitable.
PRAA Revenue Growth, EPS Growth & YoY Performance
PRAA Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $281.5M | $27.2M | $0.69 |
| Q2 2025 | $284.2M | $21.5M | $0.54 |
| Q1 2025 | $255.6M | $3.5M | $0.09 |
| Q3 2024 | $216.4M | -$12.3M | $-0.31 |
| Q2 2024 | $209.2M | -$3.8M | $-0.10 |
| Q1 2024 | $155.5M | $3.5M | $0.09 |
| Q3 2023 | $216.4M | -$12.3M | $-0.31 |
| Q1 2023 | $155.5M | -$3.8M | $-0.10 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Pra Group Inc. Dividends, Buybacks & Capital Allocation
PRAA SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Pra Group Inc. (CIK: 0001185348)
📋 Recent SEC Filings
❓ Frequently Asked Questions about PRAA
What is the AI rating for PRAA?
Pra Group Inc. (PRAA) has an AI rating of STRONG SELL with 88% confidence, based on fundamental analysis of SEC EDGAR filings.
What are PRAA's key strengths?
Claude: Exceptional revenue growth of 577% YoY indicates significant market activity and acquisition integration. Manageable leverage with debt-to-equity of 0.78x provides room before becoming over-leveraged.
What are the risks of investing in PRAA?
Claude: Operating income is deeply negative at -$30.3M despite $1.2B in revenue, indicating severe operational losses. Free cash flow is sharply negative at -$90.4M, indicating cash depletion and inability to fund operations organically.
What is PRAA's revenue and growth?
Pra Group Inc. reported revenue of $1.2B.
Does PRAA pay dividends?
Pra Group Inc. does not currently pay dividends.
Where can I find PRAA SEC filings?
Official SEC filings for Pra Group Inc. (CIK: 0001185348) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is PRAA's EPS?
Pra Group Inc. has a diluted EPS of $-7.79.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is PRAA a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Pra Group Inc. has a STRONG SELL rating with 88% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is PRAA stock overvalued or undervalued?
Valuation metrics for PRAA: ROE of -31.1% (sector avg: 12%), net margin of -25.4% (sector avg: 25%). Compare these metrics with sector averages to assess valuation.
Should I buy PRAA stock in 2026?
Our dual AI analysis gives Pra Group Inc. a combined STRONG SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is PRAA's free cash flow?
Pra Group Inc.'s operating cash flow is $-85.5M, with capital expenditures of $4.8M. FCF margin is -7.5%.
How does PRAA compare to other Finance stocks?
Vs Finance sector averages: Net margin -25.4% (avg: 25%), ROE -31.1% (avg: 12%), current ratio N/A (avg: 1.2).