PRA Group, Inc. reported significant financial improvements in its third quarter of 2024 compared to the same period in 2023. Total revenues for Q3 2024 reached $281.5 million, a 30.1% increase from $216.4 million in Q3 2023. Year-to-date revenues also rose to $821.3 million, up 41.3% from $581.1 million in the prior year. The increase in revenue was primarily driven by a substantial rise in portfolio revenue, which totaled $276.7 million for Q3 2024, compared to $212.1 million in Q3 2023, reflecting a 30.5% year-over-year growth.

Net income for Q3 2024 was $28.9 million, a significant turnaround from a net loss of $8.2 million in Q3 2023. Year-to-date net income also improved to $65.8 million, compared to a net loss of $60.9 million in the same period last year. This resulted in a diluted earnings per share of $0.69 for Q3 2024, compared to a loss of $0.31 in Q3 2023.

Operating expenses increased to $191.5 million in Q3 2024, up 10.4% from $173.4 million in Q3 2023, primarily due to higher legal collection fees and compensation expenses. Interest expense also rose significantly, totaling $61.1 million for Q3 2024, an increase of 23.4% from $49.5 million in the previous year, attributed to higher average debt balances and interest rates.

PRA Group's total assets increased to $4.9 billion as of September 30, 2024, up from $4.5 billion at the end of 2023. Total borrowings also rose to $3.3 billion, reflecting a 13.1% increase from $2.9 billion at the end of 2023, driven by net borrowings under the North American revolving credit facility and senior notes.

The company reported a total stockholders' equity of $1.2 billion as of September 30, 2024, an increase from $1.2 billion at the end of 2023. The estimated remaining collections (ERC) rose to $7.3 billion, a 22.1% increase from $6.0 billion a year earlier, indicating strong future cash flow potential.

Strategically, PRA Group has focused on enhancing its operational capabilities, including improvements in U.S. call center operations and legal collections. The company has also made significant portfolio purchases, totaling $975.2 million year-to-date, with a notable increase in U.S. portfolio acquisitions. The company continues to navigate challenges in certain consumer segments while maintaining a disciplined investment approach in the European market.