Pagaya Reports Fourth Quarter and Full Year Ended 2025 Results

NEW YORK & TEL AVIV, Israel--( BUSINESS WIRE)--Pagaya Technologies Ltd. (NASDAQ: PGY) (“Pagaya”, the “Company” or “we”), a global technology company delivering artificial intelligence infrastructure for the financial ecosystem, today announced financial results for the fourth quarter and full year ended 2025.

For additional information, view Pagaya's fourth quarter 2025 letter to shareholders here.

“Our fourth quarter and full-year results demonstrate, again, the benefits of years of work to position our company for long-term durable growth with a focus on increasing profitability, benefitting from our prior investments across the entire enterprise. Looking ahead, we will continue to leverage our platform and our disciplined risk framework, to further bridge the gap between Main Street and Wall Street,” said Gal Krubiner CEO & Co-Founder.

Fourth Quarter 2025 Highlights and Other Milestones

All comparisons are made versus the same period in 2024 and on a year-over-year basis unless otherwise stated.

Full Year 2025 Highlights and Other Milestones

All comparisons are made versus the same period in 2024 and on a year-over-year basis unless otherwise stated.

First Quarter 2026 Outlook

1Q26

Network Volume

Expected to be between $2.5 billion and $2.7 billion

Total Revenue and Other Income

Expected to be between $315 million and $335 million

Adjusted EBITDA

Expected to be between $80 million and $95 million

GAAP Net Income

Expected to be between $15 million and $35 million

Full Year 2026 Outlook

FY26

Network Volume

Expected to be between $11.25 billion and $13 billion

Total Revenue and Other Income

Expected to be between $1,400 million and $1,575 million

Adjusted EBITDA

Expected to be between $410 million and $460 million

GAAP Net Income

Expected to be between $100 million and $150 million

Webcast

The Company will hold a webcast and conference call today, February 9, 2026, at 8:30 a.m. Eastern Time. A live webcast of the call will be available via the Investor Relations section of the Company’s website at investor.pagaya.com. To listen to the live webcast, please go to the site at least five minutes prior to the scheduled start time in order to register, download and install any necessary audio software. Shortly before the call, the accompanying materials will be made available on the Company’s website. Shortly after the call, a replay of the webcast will be available for 90 days on the Company’s website.

The conference call can also be accessed by dialing 1-877-808-1531 or 1-201-493-6782 and providing conference ID PAGAYA. The telephone replay can be accessed by dialing 1-844-512-2921 or 1-412-317-6671 and providing the conference ID# 13757954. The telephone replay will be available starting shortly after the call until Monday, February 23, 2026. A replay will also be available on the Investor Relations website following the call.

About Pagaya Technologies

Pagaya (NASDAQ: PGY) is a global technology company making life-changing financial products and services available to more people nationwide. By using machine learning, a vast data network and an AI-driven approach, Pagaya provides comprehensive consumer credit and residential real estate solutions for its partners, their customers, and investors. Its proprietary API and capital solutions integrate into its network of partners to deliver seamless user experiences and greater access to the mainstream economy. Pagaya has offices in New York and Tel Aviv. For more information, visit pagaya.com.

Cautionary Note About Forward-Looking Statements

This document contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, that involve risks and uncertainties. These forward-looking statements generally are identified by the words “anticipate,” “believe,” “continue,” “can,” “could,” “estimate,” “expect,” “intend,” “may,” “opportunity,” “future,” “strategy,” “might,” “outlook,” “plan,” “possible,” “potential,” “predict,” “project,” “should,” “strive,” “will,” “would,” “will be,” “will continue,” “will likely result,” and similar expressions. All statements other than statements of historical fact are forward-looking statements, including statements regarding: The Company’s strategy and future operations, including the Company’s ability to continue to deliver consistent results for its lending partners and investors; the Company’s ability to continue to drive sustainable gains in profitability; the Company’s ability to achieve continued momentum in its business; the Company’s ability to maintain positive net cash flow; and the Company’s financial outlook for Network Volume, Total Revenue and Other Income, Net Income and Adjusted EBITDA for the fourth quarter and full year 2025. These forward-looking statements involve known and unknown risks, uncertainties and other important factors that may cause the Company's actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Risks, uncertainties and assumptions include factors relating to: the Company's ability to attract new partners and to retain and grow its relationships with existing partners to support the underlying investment needs for its securitizations and funds products; the need to maintain a consistently high level of trust in its brand; the concentration of a large percentage of its investment revenue with a small number of partners and platforms; its ability to sustain its revenue growth rate or the growth rate of its related key operating metrics; its ability to improve, operate and implement its technology, its existing funding arrangements for the Company and its affiliates that may not be renewed or replaced or its existing funding sources that may be unwilling or unable to provide funding to it on terms acceptable to it, or at all; the performance of loans facilitated through its model; changes in market interest rates; its securitizations, warehouse credit facility agreements; the impact on its business of general economic conditions, including, but not limited to rising interest rates, inflation, supply chain disruptions, exchange rate fluctuations and labor shortages; the effect of and uncertainties related to public health crises; geopolitical conflicts; its ability to realize the potential benefits of past or future acquisitions; anticipated benefits and savings from our recently announced reduction in workforce; changes in the political, legal and regulatory framework for AI technology, machine learning, financial institutions and consumer protection; the ability to maintain the listing of our securities on Nasdaq; the financial performance of its partners, and fluctuations in the U.S. consumer credit and housing market; its ability to grow effectively through strategic alliances; seasonal fluctuations in our revenue as a result of consumer spending and saving patterns; pending and future litigation, regulatory actions and/or compliance issues including with respect to the merger with EJF Acquisition Corp.; and other risks that are described in the Company’s Form 10-K filed on March 12, 2025 and subsequent filings with the U.S. Securities and Exchange Commission. These forward-looking statements reflect the Company's views with respect to future events as of the date hereof and are based on assumptions and subject to risks and uncertainties. Given these uncertainties, investors should not place undue reliance on these forward-looking statements. The forward-looking statements are made as of the date hereof, reflect the Company’s current beliefs and are based on information currently available as of the date they are made, and the Company assumes no obligation and does not intend to update these forward-looking statements.

Financial Information; Non-GAAP Financial Measures

Some of the unaudited financial information and data contained in this press release and Form 8-K, such as Fee Revenue Less Production Costs (“FRLPC”), Adjusted EBITDA and Adjusted Net Income, have not been prepared in accordance with United States generally accepted accounting principles (“U.S. GAAP”). To supplement the unaudited consolidated financial statements prepared and presented in accordance with U.S. GAAP, management uses the non-GAAP financial measures FRLPC, Adjusted Net Income and Adjusted EBITDA to provide investors with additional information about our financial performance and to enhance the overall understanding of the results of operations by highlighting the results from ongoing operations and the underlying profitability of our business. Management believes these non-GAAP measures provide an additional tool for investors to use in comparing our core financial performance over multiple periods. However, non-GAAP financial measures have limitations in their usefulness to investors because they have no standardized meaning prescribed by U.S. GAAP and are not prepared under any comprehensive set of accounting rules or principles. In addition, non-GAAP financial measures may be calculated differently from, and therefore may not be directly comparable to, similarly titled measures used by other companies. As a result, non-GAAP financial measures should be viewed as supplementing, and not as an alternative or substitute for, our unaudited consolidated financial statements prepared and presented in accordance with U.S. GAAP. To address these limitations, management provides a reconciliation of Adjusted Net Income and Adjusted EBITDA to net income (loss) attributable to Pagaya’s shareholders and FRLPC to operating income. Management encourages investors and others to review our financial information in its entirety, not to rely on any single financial measure and to view Adjusted Net Income and Adjusted EBITDA in conjunction with its respective related GAAP financial measures.

Non-GAAP financial measures include the following items:

Fee Revenue Less Production Costs (“FRLPC”) is defined as revenue from fees less production costs.

Adjusted Net Income (Loss) is defined as net income (loss) attributable to Pagaya Technologies Ltd.’s shareholders excluding share-based compensation expense, change in fair value of warrant liability, change in fair value of contingent liability, impairment, including credit-related charges, restructuring expenses, transaction-related expenses, and non-recurring expenses associated with mergers and acquisitions and other one-time expenses.

Adjusted EBITDA is defined as net income (loss) attributable to Pagaya Technologies Ltd.’s shareholders excluding share-based compensation expense, change in fair value of warrant liability, change in fair value of contingent liability, impairment, including credit-related charges, restructuring expenses, transaction-related expenses, non-recurring expenses associated with mergers and acquisitions and other one-time expenses, interest expense, depreciation expense, and income tax expense (benefit).

These items are excluded from our Adjusted Net Income (Loss) and Adjusted EBITDA measures because they are noncash in nature, or because the amount and timing of these items is unpredictable, is not driven by core results of operations and renders comparisons with prior periods and competitors less meaningful.

We believe FRLPC, Adjusted Net Income (Loss) and Adjusted EBITDA provide useful information to investors and others in understanding and evaluating our results of operations, as well as providing a useful measure for period-to-period comparisons of our business performance. Moreover, we have included FRLPC, Adjusted Net Income (Loss) and Adjusted EBITDA because these are key measurements used by our management internally to make operating decisions, including those related to operating expenses, evaluate performance, and perform strategic planning and annual budgeting. However, this non-GAAP financial information is presented for supplemental informational purposes only, should not be considered a substitute for or superior to financial information presented in accordance with U.S. GAAP and may be different from similarly titled non-GAAP financial measures used by other companies. The tables below provide reconciliations of this non-GAAP financial information to its most directly comparable U.S. GAAP metric.

In addition, Pagaya provides an outlook for the first quarter of 2026 and the fiscal year 2026 on a non-GAAP basis. The Company cannot reconcile its expected Adjusted EBITDA to expected Net Income Attributable to Pagaya under “Full-Year 2026 Financial Outlook” without unreasonable effort because certain items that impact net income (loss) and other reconciling items are out of the Company's control and/or cannot be reasonably predicted at this time, which unavailable information could have a significant impact on the Company’s U.S. GAAP financial results.

PAGAYA TECHNOLOGIES LTD.

CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

(In thousands, except share and per share data)

Three Months Ended

December 31,

Year Ended

December 31,

2025

2024

2025

2024

Revenue

Revenue from fees

321,036

275,669

1,261,341

1,004,550

Other Income

Interest income

15,101

7,619

48,434

32,291

Investment loss, net

(1,329

)

(3,894

)

(8,415

)

(4,593

)

Total Revenue and Other Income

334,808

279,394

1,301,360

1,032,248

Production costs

190,047

158,204

749,169

597,652

Technology, data and product development (2)

19,078

18,601

75,213

76,571

Sales and marketing (2)

9,884

15,376

53,591

50,404

General and administrative (2)

36,084

55,474

159,560

240,781

Total Costs and Operating Expenses

255,093

247,655

1,037,533

965,408

Operating Income

79,715

31,739

263,827

66,840

Gains and (losses) on investments in loans and securities (1)

(44,198

)

(250,149

)

(107,030

)

(404,150

)

Other expense, net (1)

(14,150

)

(22,131

)

(80,417

)

(83,612

)

Gains and (losses) from extinguishment of debt (1)

702

—

(24,755

)

(200

)

Income (Loss) Before Income Taxes

22,069

(240,541

)

51,625

(421,122

)

Income tax (benefit) expense

(6,973

)

16,585

(19,745

)

24,576

Net Income (Loss) Including Noncontrolling Interests

29,042

(257,126

)

71,370

(445,698

)

Less: Net income (loss) attributable to noncontrolling interests

(5,254

)

(19,204

)

(10,019

)

(44,292

)

Net Income (Loss) Attributable to Pagaya Technologies Ltd.

34,296

(237,922

)

81,389

(401,406

)

Earnings (loss) per share attributable to Pagaya Technologies Ltd. ordinary shareholders:

Basic

0.41

(3.20

)

0.99

(5.66

)

Diluted

0.36

(3.20

)

0.93

(5.66

)

Non-GAAP adjusted net income (3)

78,751

13,225

275,318

66,866

Non-GAAP adjusted net income per share:

Basic

0.96

0.18

3.51

0.94

Diluted

0.80

0.17

3.31

0.92

Weighted average shares outstanding:

Basic

81,945,101

74,334,181

78,336,095

70,879,807

Diluted

101,926,483

75,914,852

83,097,227

72,495,097

(1)

Prior period amounts have been reclassified to confirm to the current period’s presentation.

(2)

The following table sets forth share-based compensation for the periods indicated below:

Three Months Ended

December 31,

Year Ended

December 31,

2025

2024

2025

2024

Technology, data and product development

1,299

1,710

4,965

8,695

Selling and marketing

2,179

5,072

21,142

14,666

General and administrative

5,658

8,863

28,011

38,136

Total

9,136

15,645

54,118

61,497

(3)

See “Reconciliation of Non-GAAP Financial Measures.”

PAGAYA TECHNOLOGIES LTD.

CONSOLIDATED BALANCE SHEETS

(In thousands)

December 31,

2025

December 31,

2024

Assets

Cash and cash equivalents

235,329

187,921

Restricted cash and cash equivalents

53,020

38,597

Fees receivables (1)

153,250

127,114

Investments in loans and securities (1)

945,269

778,409

Equity method and other investments

13,518

21,933

Right-of-use assets

30,578

36,876

Property, equipment and software, net

30,221

37,974

Goodwill

22,903

23,062

Intangible assets, net

7,661

12,821

Other assets

54,165

26,365

Total Assets

1,545,914

1,291,072

Liabilities and Shareholders’ Equity

Liabilities:

Accounts payable

3,931

6,992

Accrued expenses and other liabilities

74,635

45,362

Operating lease liabilities

34,212

37,064

Income taxes payable and other tax liabilities

18,687

41,217

Warrant liability

4,723

893

Secured borrowing

193,892

176,089

Exchangeable notes

148,782

146,342

Long-term debt

481,598

321,317

Total Liabilities

960,460

775,276

Redeemable convertible preferred shares

30,103

74,250

Shareholders’ equity:

Ordinary shares

—

Additional paid-in capital

1,390,990

1,282,022

Accumulated other comprehensive loss

(48,319

)

(11,488

)

Accumulated deficit

(862,654

)

(944,043

)

Total Pagaya Technologies Ltd. Shareholders’ Equity

480,017

326,491

Noncontrolling interests

75,334

115,055

Total Shareholders’ Equity

555,351

441,546

Total Liabilities, Redeemable Convertible Preferred Shares, and Shareholders’ Equity

1,545,914

1,291,072

(1)

Accrued interest receivable of $14.3 million, previously reported within “Fee receivables” as of December 31, 2024, has been reclassified to “Investment in loans and securities” to conform to the current period’s presentation.

PAGAYA TECHNOLOGIES LTD.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

Year Ended December 31,

2025

2024

Cash flows from operating activities

Net income (loss) including noncontrolling interests

71,370

(445,698

)

Adjustments to reconcile net income (loss) to net cash used in operating activities:

Equity method loss

8,415

4,593

Depreciation and amortization

30,077

28,753

Share-based compensation

54,118

61,497

Fair value adjustment to warrant liability

3,830

(2,349

)

(Gains) and losses on investments in loans and securities (1)

108,907

408,098

Write-off of capitalized software and other assets

4,919

3,245

Amortization of deferred costs

11,253

3,739

Losses (gains) from extinguishment of debt

17,883

—

Losses (gains) on foreign exchange

1,115

4,189

Other non-cash items

—

367

Change in operating assets and liabilities:

Fees receivables (1)

(26,283

)

(23,041

)

Accrued interest on investments (1)

(42,824

)

(21,738

)

Right-of-use assets

6,298

1,115

Other assets

(13,350

)

(9,239

)

Accounts payable

3,420

5,678

Accrued expenses and other liabilities

28,518

6,861

Operating lease liability

(6,517

)

522

Income taxes

(22,529

)

21,159

Net cash provided by operating activities

238,620

47,751

Cash flows from investing activities

Proceeds from the sale/maturity/prepayment of:

Investments in loans and securities (1)

352,215

246,540

Equity method and other investments

—

Payments for the purchase of:

Investments in loans and securities

(632,182

)

(693,941

)

Property, equipment and software

(13,902

)

(17,737

)

Intangible assets

—

(5,500

)

Equity method and other investments

—

(175

)

Other assets

(16,000

)

—

Acquisition of Theorem Technology, Inc., net of cash acquired

159

(9,094

)

Net cash used in investing activities

(309,710

)

(479,876

)

Cash flows from financing activities

Proceeds from sale of ordinary shares, net of issuance costs

—

89,956

Proceeds from long-term debt

500,000

341,845

Proceeds from exchangeable notes

—

152,000

Proceeds from secured borrowing

355,968

265,656

Proceeds received from noncontrolling interests

—

63,960

Proceeds from revolving credit facility

—

59,000

Proceeds from exercise of stock options, warrants and contributions to ESPP

6,923

3,305

Proceeds from issuance of ordinary shares from the Equity Financing Purchase Agreement

—

11,865

Distributions made to noncontrolling interests

(25,762

)

(9,820

)

Payments made to revolving credit facility

—

(149,000

)

Payments made to secured borrowing

(341,350

)

(361,428

)

Payments made to long-term debt

(353,690

)

(14,000

)

Debt issuance costs

(12,488

)

(16,651

)

Net cash provided by financing activities

129,601

436,688

Effect of exchange rate changes on cash and cash equivalents, and restricted cash and cash equivalents

3,320

(586

)

Net increase in cash and cash equivalents, and restricted cash and cash equivalents

61,831

3,977

Cash and cash equivalents, and restricted cash and cash equivalents, beginning of period

226,518

222,541

Cash and cash equivalents, and restricted cash and cash equivalents, end of period

288,349

226,518

(1)

Accrued interest receivable previously reported within “Fee receivables” in the prior period has been reclassified to “Investment in loans and securities” to conform to the current period’s presentation.

PAGAYA TECHNOLOGIES LTD.

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (UNAUDITED)

($ in thousands, unless otherwise noted)

Three Months

Ended December 31,

Year Ended

December 31,

2025

2024

2025

2024

Net Income (Loss) Attributable to Pagaya Technologies Ltd.

34,296

(237,922

)

81,389

(401,406

)

Adjusted to exclude the following:

Share-based compensation

9,136

15,645

54,118

61,497

Fair value adjustment to contingent liability

(100

)

—

(5,907

)

—

Fair value adjustment to warrant liability

(2,656

)

(1,991

)

3,830

(2,349

)

Impairment loss on certain investments, net

37,117

234,995

98,321

394,484

Write-off of capitalized software and other assets

179

100

4,920

3,245

Restructuring expenses

—

1,392

3,583

Transaction-related expenses

—

488

2,095

Non-recurring expenses

779

1,910

37,232

5,717

Adjusted Net Income

78,751

13,225

275,318

66,866

Adjusted to exclude the following:

Interest expenses

19,179

26,085

85,337

90,183

Income tax (benefit) expense

(6,973

)

16,585

(19,745

)

24,576

Depreciation and amortization

7,126

8,278

30,077

28,753

Adjusted EBITDA

98,083

64,173

370,987

210,378

Three Months Ended

December 31,

Year Ended

December 31,

2025

2024

2025

2024

Operating Income

79,715

31,739

263,827

66,840

Add: Technology, data and product development

19,078

18,601

75,213

76,571

Add: Sales and marketing

9,884

15,376

53,591

50,404

Add: General and administrative

36,084

55,474

159,560

240,781

Less: Interest income

15,101

7,619

48,434

32,291

Less: Investment loss, net

(1,329

)

(3,894

)

(8,415

)

(4,593

)

Fee Revenue Less Production Costs (FRLPC)

130,989

117,465

512,172

406,898

Network Volume (in millions)

2,684

2,604

10,534

9,705

Fee Revenue Less Production Costs % (FRLPC %)

4.9

4.5

4.9

4.2