PRA Group Inc (PRAA) shares skyrocketed 17.50% in intraday trading on Tuesday, building on a 12.48% pre-market gain, following the release of its stellar second-quarter 2025 financial results. The global nonperforming loan purchaser and collector reported earnings that significantly surpassed analysts' expectations, driven by strong operational performance and a substantial one-time gain.

The company announced a GAAP earnings per share of $1.08 for Q2 2025, more than doubling the consensus estimate of $0.44. This impressive figure was boosted by a non-recurring gain of $0.75 per share from the sale of PRA Group's Brazilian servicing affiliate. Even excluding this one-time gain, the company's normalized earnings outperformed projections. Revenue for the quarter reached $287.69 million, up 24.4% year-over-year and beating analysts' forecasts of $279.34 million.

PRA Group's core business demonstrated robust performance, with total cash collections increasing by 13.2% to $536.3 million. European operations were particularly strong, with collections surging 18.5%. Despite the positive results, the company has adopted a more selective approach to portfolio purchases, reflecting management's focus on quality investments in an uncertain economic environment. This prudent strategy, coupled with improved operational efficiency, has resonated well with investors. Adding to the positive sentiment, JMP Securities maintained its Market Outperform rating on PRA Group stock, further supporting the sharp price increase.