We present a new approximation algorithm for the (metric) prize-collecting traveling salesperson problem (PCTSP). In PCTSP, opposed to the classical traveling salesperson problem (TSP), one may not include a vertex of the input graph in the returned tour at the cost of a given vertex-dependent penalty, and the objective is to balance the length of the tour and the incurred penalties for omitted vertices by minimizing the sum of the two. We present an algorithm that achieves an approximation guarantee of $1.774$ with respect to the natural linear programming relaxation of the problem. This significantly reduces the gap between the approximability of classical TSP and PCTSP, beating the previously best known approximation factor of $1.915$. As a key ingredient of our improvement, we present a refined decomposition technique for solutions of the LP relaxation, and show how to leverage components of that decomposition as building blocks for our tours.