Pagaya Technologies (NASDAQ:PGY) Announces Quarterly Earnings Results

Pagaya Technologies (NASDAQ:PGY) posted its earnings results on Thursday. The company reported $1.07 earnings per share for the quarter, beating the consensus estimate of $0.47 by $0.60, FiscalAI reports. Pagaya Technologies had a net margin of 9.12% and a return on equity of 51.56%. The company had revenue of $390.49 million for the quarter, compared to analyst estimates of $382.10 million. During the same period in the previous year, the business posted $1.02 EPS. Pagaya Technologies’s revenue was up 11.5% on a year-over-year basis.

Here are the key takeaways from Pagaya Technologies’ conference call:

• Record profitability and growth: Q3 GAAP net income reached nearly $50 million, up 121% year over year, while network volume grew 29% to $3.6 billion. Adjusted EBITDA increased 22% to $130 million as operating expenses remained essentially flat.
• Partner pipeline is expanding: Citizens Financial Group and FNBO joined the network, bringing Pagaya to six new partners this year and its largest-ever pipeline, which management said is up more than 50% year over year. The company highlighted increasing adoption by larger banks seeking lending products without significant balance-sheet investment.
• Funding and credit indicators remain strong: Pagaya raised $3 billion through ABS transactions, added more than $2 billion of committed capital, and expanded its investor network to over 180 participants. Management cited strong credit performance, including 63 securitization-tranche upgrades and no downgrades in the latest KBRA surveillance reports.
• Higher rates pressured unit economics: Q3 FRLPC as a percentage of network volume fell to 4.1%, the low end of the company’s 4%-5% target range, as funding costs increased. Pagaya raised APRs by 100 basis points for personal loans and 140 basis points for auto loans, expecting the margin to recover toward the midpoint of its target range during 2027.
• Full-year outlook was raised: Management now expects 2026 GAAP net income of $162 million-$182 million, revenue and other income of $1.45 billion-$1.5 billion, and adjusted EBITDA of $465 million-$485 million. Q4 volume is expected to decline seasonally and reflect the full removal of Klarna, although management said Klarna had little impact on profit.

Pagaya Technologies Stock Up 1.1%

Shares of PGY traded up $0.23 during midday trading on Thursday, hitting $20.70. The company had a trading volume of 2,252,833 shares, compared to its average volume of 3,389,222. Pagaya Technologies has a 1 year low of $10.40 and a 1 year high of $29.75. The firm has a market capitalization of $1.73 billion, a P/E ratio of 15.21 and a beta of 5.50. The company has a debt-to-equity ratio of 1.12, a quick ratio of 11.08 and a current ratio of 11.08. The company’s 50-day simple moving average is $19.76 and its 200-day simple moving average is $16.63.

Analysts Set New Price Targets

A number of equities research analysts have commented on the company. B. Riley Financial lifted their target price on Pagaya Technologies from $32.00 to $36.00 and gave the company a “buy” rating in a research report on Friday, July 31st. Weiss Ratings reaffirmed a “hold (c-)” rating on shares of Pagaya Technologies in a research note on Monday, September 14th. Citizens Jmp lifted their price target on shares of Pagaya Technologies from $22.00 to $25.00 and gave the company a “market outperform” rating in a research report on Friday, July 31st. Jefferies Financial Group upped their price objective on shares of Pagaya Technologies from $23.00 to $27.00 and gave the stock a “buy” rating in a report on Tuesday, August 18th. Finally, TD Cowen dropped their target price on shares of Pagaya Technologies from $26.00 to $25.00 and set a “buy” rating for the company in a report on Tuesday, October 6th. Two research analysts have rated the stock with a Strong Buy rating, eight have given a Buy rating and two have given a Hold rating to the company. According to data from MarketBeat.com, the company has an average rating of “Buy” and an average price target of $31.12.

Insider Activity at Pagaya Technologies

In other news, President Sanjiv Das sold 14,300 shares of Pagaya Technologies stock in a transaction on Monday, September 28th. The shares were sold at an average price of $17.04, for a total transaction of $243,672.00. Following the completion of the sale, the president directly owned 173,864 shares of the company’s stock, valued at approximately $2,962,642.56. The trade was a 7.60% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Tami Rosen sold 1,986 shares of the stock in a transaction on Friday, October 2nd. The shares were sold at an average price of $17.83, for a total value of $35,410.38. Following the completion of the transaction, the director directly owned 13,414 shares in the company, valued at $239,171.62. This trade represents a 12.90% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 98,117 shares of company stock valued at $2,019,059 over the last 90 days. 41.99% of the stock is owned by corporate insiders.

Pagaya Technologies Company Profile

Pagaya Technologies Ltd. is a financial technology company that uses artificial intelligence and machine learning to help financial institutions expand access to credit and other financial products. Its technology platform analyzes large volumes of data to evaluate assets, identify investment opportunities and support lending decisions.

The company works with banks, lenders and other financial institutions, as well as institutional investors. Through its network-based platform, Pagaya helps partners originate loans and other assets while connecting those assets with institutional funding and capital markets solutions.