Pagaya Technologies (PGY) Q3 2026 Earnings
Adjusted figure excludes $36.9 million impairment loss on certain investments, $8.6 million share-based compensation, $3.8 million write-off of capitalized software and other assets, and $3.9 million non-recurring expenses (in thousands: 36,932; 8,607; 3,829; 3,925). GAAP diluted EPS was $0.52.
How Did PGY Stock React to Q3 2026 Earnings?
Did PGY Beat Earnings? Q3 2026 Results
Yes. Pagaya Technologies reported Q3 2026 earnings of $1.07 a share on Oct 29, 2026, beating the $1.00 consensus estimate by 7.5%. Revenue was $390.5M against a $383.1M estimate.
Pagaya Technologies delivered a strong third quarter of 2026, beating consensus estimates for the fourth consecutive quarter as disciplined cost control and accelerating network volume drove results ahead of expectations. The AI-driven lending network posted adjusted EPS of $1.07, ahead of the $1.00 consensus by 7.52%, while revenue climbed 14.9% year over year to $390.49 million, edging past the $383.07 million estimate by 1.94%. The headline driver was operating leverage: core operating expenses fell to $45.45 million from $47.08 million a year earlier, even as network volume surged 29% to $3.61 billion, fueled by Personal Loan and Auto verticals. Adjusted EBITDA rose 22% to $130.25 million, with margin expanding to 33%. The quarter was not without pressure, as rising benchmark rates squeezed fee revenue less production costs, prompting Pagaya to raise consumer APRs by up to 140 basis points starting in September. Management expects those pricing adjustments to offset rate headwinds by early next year and moved full-year GAAP net income guidance higher, for the third time in 2026, to a range of $162 million to $182 million.
- Network volume up 29% year over year to $3.6 billion, driven by Auto and Personal Loans
- Revenue from fees up 7% to $362 million; interest income up 94%
- Core operating expenses flat to down at $45 million (31% of FRLPC versus 34% a year earlier)
- Adjusted EBITDA margin expanded to 33% from 31%
- Application volume up 42% to $377 billion, with application-to-conversion steady at about 1%
- Share-based compensation down to $8.6 million from $13.6 million
“Our momentum is building on itself: more partners, more products, and more applications feeding a network that is becoming essential infrastructure for consumer lending.”
Pagaya Technologies CEO, on the earnings call
What Is Pagaya Technologies's Outlook?
Pagaya raised its full-year 2026 GAAP net income guidance to $162M–$182M, which management said is the third raise this year. Other FY26 guidance: network volume of $12.725B–$13.025B, total revenue and other income of $1.45B–$1.5B, and adjusted EBITDA of $465M–$485M. Implied Q4 2026 guidance: network volume of $2.961B–$3.261B, total revenue and other income of $355M–$405M, adjusted EBITDA of $117M–$137M, and GAAP net income of $42M–$62M. FRLPC as a percentage of network volume is expected near the low end of the 4–5% range for 2026. Management expects it to begin rising late in Q4 and move toward the midpoint in 2027 as APR increases offset higher benchmark rates. The outlook assumes cost of capital stays at currently elevated market levels. Management expects to exit the year with net income up 106% year over year.
PGY YoY Financials
| Metric | Q3 2026 | Q3 2025 | Year over year |
|---|---|---|---|
| Revenue | $390.5M | $339.9M | +14.9% |
| Gross Profit | $146.5M | $139.3M | +5.1% |
| Operating Income | $112.5M | $80.0M | +40.8% |
| Net Income | $49.7M | $22.5M | +120.6% |
Figures from SEC filings and company reports. Not investment advice.