PRAAPRA GROUP INC

Short-Term Business Credit Institutions

Revenue: $1.2B; 7.8% YoY
Operating margin: -2.5%; 108% YoY
EBITDA: −$21M; 106% YoY
Market cap: $734M
Employees: 2,615; $460K revenue each
Net debt / EBITDA: —; $3.6B net debt
AI in 10-K: 5.5; mentions per 10K words

Takeover score 2 of 13

Fixable underperformance 1 of 7

TSR below peersYes
4 of 5 years
3+ of last 5 years
High CEO pay despite TSRNo
—
Median CEO pay ≥ $15M while TSR trails
Earnings not backed by cashNo
—
Cash flow under 80% of net income
Dilutive SBCNo
1% of revenue
Over 10% of revenue
Payouts exceed cash flowNo
-23% of cash flow
Buybacks + dividends over cash flow
Goodwill-heavyNo
1% of assets
Over 40% of assets
Shareholder dissentNo
93% lowest support
Any vote under 80% support

Buyer economics 1 of 4

Low revenue per employeeNo
$460K · 39th pct
Bottom quartile of its SIC industry
Quiet on AINo
5.5 per 10K words · 84th pct
Bottom quartile of AI mentions in 10-Ks
Net cashNo
—
More cash than debt, positive EBITDA
Buyout-sizedYes
$734M market cap
Market cap $500M–$5B

Catalysts 0 of 2

Active 13DNo
0 filings
Active-intent 13D in 18 months
Net insider sellingNo
$212K net
Net sales over $10M in 12 months

Financials

Metric	FY2021	FY2022	FY2023	FY2024	FY2025	YoY	Trend
Revenue	$15M	$967M	$803M	$1.1B	$1.2B	7.8%
Operating income	$375M	$286M	$100M	$340M	−$30M	109%
Net income	$183M	$117M	−$83M	$71M	−$305M	530%
Operating cash flow	$85M	$22M	−$98M	−$95M	−$86M	9.6%
Capex	$11M	$13M	$3M	$4M	$5M	19%
Stock-based comp	$16M	$13M	$11M	$13M	$16M	18%
Buybacks	$201M	$111M	$0	$0	$20M

Deal filings

None.

13D filers

Filed	Filer	Form	Stake	Intent
Feb 16, 2024	Engaged Capital LLC	SC 13D/A	5.0%	Passive
Dec 13, 2023	Engaged Capital LLC	SC 13D	5.1%	Active

Insider trading

Open-market buys, 12 mo: $212K · 1
Open-market sells, 12 mo: $0 · 0
Net: $212K

Pay vs performance

Year	CEO total comp	Comp actually paid	TSR (indexed)	Peer TSR
FY2025	—	—	45	158
FY2024	—	—	53	137
FY2023	—	—	66	109
FY2022	—	—	85	97
FY2021	—	—	127	127