Pagaya Technologies (PGY) Company Report

Pagaya Technologies (PGY) operates a B2B AI/ML-based credit decisioning platform, providing white-label solutions to 31 lending partners and connecting them with 155 institutional investors across personal loan, Auto, and POS asset classes.
The company reported its third consecutive quarter of GAAP net income positive, with Q3 showing a 10% fee revenue growth, 24% adjusted EBITDA growth, and 35% net income growth.
Management noted stable credit performance and no deterioration in the underlying consumer, maintaining a prudent underwriting approach since the beginning of the year.
Pagaya aims for 20% consistent annual growth, primarily through adding new partners and leveraging existing relationships, while diversifying its funding mix to a target 50/50 split between ABS and forward flow from the current 60/40.
The company highlights its unique B2B model and high barriers to entry in the market, with potential future expansion into asset classes like home improvement, healthcare POS, and credit cards.

Nov 18, 2025, 7:00 PM

Transcript

Pagaya Reports Strong Financial Performance and Outlines Growth and Funding Strategies

PGY

Revenue Acceleration/Inflection

New Projects/Investments

Guidance Update

Pagaya reported its third consecutive quarter of GAAP net income positive, with a run rate of approximately $110 million in net income. The company achieved 10% fee revenue growth, 24% adjusted EBITDA growth, and 35% net income growth quarter over quarter.
The company has eight new lending partners currently in the onboarding phase, though significant volume contribution from these partners is expected in late 2026 or 2027 due to ramp-up time. Pagaya aims for 20% year-over-year growth.
Pagaya's funding mix is currently 60% ABS and 40% forward flows/other structures, with a strategic goal to achieve a 50-50% split for diversification.
The company highlights its unique B2B white-label model with high barriers to entry, requiring significant investment and time to replicate, giving it a first-mover advantage.

Nov 18, 2025, 7:00 PM

Transcript

Pagaya Technologies Reports Strong Q3 Performance and Increased 2025 Guidance

PGY

Guidance Update

Revenue Acceleration/Inflection

New Projects/Investments

Pagaya Technologies (PGY) reported its third consecutive quarter of GAAP net income positive, with net income run-rating at approximately $110 million. The company also increased its guidance for 2025.
Key Q3 2025 performance metrics include 12% quarter-over-quarter application flow growth, 6% volume increase, 10% fee revenue growth, 24% adjusted EBITDA growth, and 35% net income growth.
The company operates a B2B white-label solution model, integrating with 31 lending partners and making fees primarily from these partners (80%). This model results in no customer acquisition costs and high barriers to entry.
Pagaya has 8 new partners in the onboarding phase, with significant volume contribution anticipated in late 2026 or 2027, supporting its goal of 20% year-over-year growth.
The funding mix is currently approximately 60% ABS and 40% forward flow, with a strategic target of a 50-50% split for diversification.

Nov 18, 2025, 7:00 PM

Transcript

Pagaya Discusses Sustainable Growth, Product Expansion, and Capital Markets Strategy at Citi FinTech Conference

PGY

New Projects/Investments

Debt Issuance

Revenue Acceleration/Inflection

Pagaya (PGY) is focused on a B2B strategy for sustainable network growth, aiming for "sticky growth" by perfecting products for existing lenders and expanding its product suite to include a Marketing Affiliate product and "FastPass" for auto lending.
The company has become cash flow positive in 2024, with a strategic focus on optimizing capital markets and funding, achieving a blended net risk retention of approximately 1.5% across its personal loan, auto loan, and point-of-sale products.
Pagaya anticipates a 150 basis point reduction in the cost of capital in 2025 compared to 2024, which is expected to strengthen unit economics and provide more flexibility in managing credit cycles.
The company is strategically retaining B-bonds to generate high returns on equity (ROE) and improve GAAP net income, aiming to build a more robust balance sheet and lower its cost of capital.
Pagaya's long-term vision is to be a leading technology company that solves core problems for lenders across various asset classes and credit spectrums, with plans to increase forward flow agreements and improve credit ratings.

Nov 18, 2025, 6:30 PM

Transcript

Pagaya Discusses Sustainable Growth and Capital Strategy

PGY

New Projects/Investments

Product Launch

Debt Issuance

Pagaya (PGY) is focused on a B2B strategy for sustainable growth, emphasizing product development like Marketing Affiliate and FastPass for auto loans, and a Pre-screen Engine to drive partner value and customer acquisition.
The company has achieved cash flow positive status and is implementing a capital allocation strategy to reduce its cost of capital, including retaining B-bonds and resecuritizing maturing positions, aiming for a more robust balance sheet.
Management noted a 150 basis point reduction in the cost of capital in 2025 compared to 2024, contributing to strong unit economics and enabling stable growth without aggressive credit box expansion.
Pagaya plans to increase forward flows to 40-50% of production and pursue improved credit ratings (e.g., Moody's, S&P) to further compress spreads and enhance funding efficiency.

Nov 18, 2025, 6:30 PM

Transcript

Pagaya Technologies Reports Record Q3 2025 Results, Raises Full-Year Outlook

PGY

Earnings

Guidance Update

Debt Issuance

Pagaya Technologies Ltd. reported record financial results for the third quarter and first nine months of 2025, showing significant year-over-year growth in GAAP net income, adjusted EBITDA, total revenue, and network volume.
The company raised its full-year guidance for 2025 for total revenue, adjusted EBITDA, and GAAP net income, driven by strong performance in its Auto and Point-of-Sale verticals.
Pagaya's Adjusted EBITDA margin rose nearly 9 points to 31%, demonstrating strong operating leverage.
The company expanded its financial partnerships and credit facilities, including issuing $1.8 billion in its ABS program in Q3 2025 and raising $500 million in corporate debt rated by major credit agencies.

Nov 8, 2025, 7:03 PM

Morningstar

Pagaya Technologies Secures $500M Auto Loan Deal with Castlelake

PGY

New Projects/Investments

Revenue Acceleration/Inflection

Pagaya Technologies secured a $500 million forward flow agreement with Castlelake LP to purchase auto loans sourced through its AI-driven platform, marking the first auto loan transaction between the two firms and expanding their partnership beyond personal loans.
This agreement is expected to significantly accelerate Pagaya's auto lending capabilities and enhance its funding diversification.
Pagaya operates in the technology sector, specifically software, with a market capitalization of approximately $1.999 billion and a 21.6% revenue growth rate over the past three years.

Nov 3, 2025, 1:43 PM

Morningstar

Pagaya Technologies expands revolving credit facility

PGY

Debt Issuance

New Projects/Investments

Pagaya Technologies Ltd. has expanded its revolving credit facility to $132 million, more than doubling the prior $58 million facility.
The interest rate on the facility has been significantly reduced by 400 basis points, from SOFR+750 to SOFR+350, lowering the cost of debt capital by nearly 35%.
The new facility, effective October 1, 2025, matures on October 2, 2028, and is supported by new bank partners including Citizens, TD Bank, Wells Fargo, and Texas Capital Bank, as well as expanded commitments from existing lenders.

Oct 2, 2025, 11:51 AM

8-K

Pagaya Technologies Discusses Business Model, Funding, and Financial Performance

PGY

Debt Issuance

New Projects/Investments

Revenue Acceleration/Inflection

Pagaya positions itself as a B2B service provider offering an "extended platform" with AI underwriting and machine learning capabilities to help lenders approve and fund more customers, serving fintechs, regional, and large banks like U.S. Bank.
The company emphasizes risk management and has significantly reduced funding risk through forward flow agreements (over 30% of production) and a prefunding model.
Pagaya is the largest ABS personal loan securitizer in the U.S., generating $5 billion to $7 billion in capital market paper annually, supported by an investor network of over 135 investors. They also leverage private credit and recently completed a B-rated high-yield bond offering to fund their balance sheet.
Pagaya has achieved cash flow positive and GAAP earnings positive status earlier than anticipated. The company maintains a light balance sheet with risk retention as low as 1% to 2% of full production and demonstrates strong operational leverage, with 300-400 core employees driving $10 billion to $12 billion in production.

Sep 3, 2025, 3:00 PM

Pagaya Technologies Ltd. Reports Record Q2 2025 Results and Raises Full Year Guidance

PGY

Earnings

Guidance Update

Debt Issuance

Pagaya Technologies Ltd. reported record Q2 2025 financial results, including $17,000,000 in GAAP net income and $326,000,000 in total revenues.
The company successfully completed a $500,000,000 corporate bond issuance, which is expected to reduce the cost of debt from approximately 11% to 9% and improve GAAP profitability by approximately $12,000,000 annually.
Pagaya raised its full year 2025 guidance, now projecting network volume between $10,500,000,000 and $11,500,000,000 and GAAP net income between $55,000,000 and $75,000,000.
Originations are increasingly diversified, with point of sale and auto volumes comprising 30% of total volumes, up from 9% a year ago, and credit performance remains strong with cumulative net losses trending 30% to 60% lower than peak levels.

Aug 8, 2025, 9:35 AM

Earnings Transcripts

Quarterly earnings call transcripts for Pagaya Technologies.

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