Pagaya Technologies Ltd - Class A
Q2 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +2.86%.
Did PGY Beat Earnings? Q2 2025 Results
Pagaya Technologies delivered a broadly strong second quarter of 2025, though its earnings per share of $0.64 came in just below the Wall Street consensus of $0.67, a miss of 4.48%, even as the underlying business showed considerable momentum. Revenue climbed 34.5% year-over-year to $326.40 million, supported by record capital markets activity that included $2.30 billion raised across six ABS transactions and an expanded institutional funding partner base of 145. The company posted GAAP net income attributable to shareholders of $16.66 million, compared to a net loss of $74.78 million in the same period a year ago, a swing driven by revenue growth and tighter operating expenses. Product diversification is also accelerating, with Auto and Point-of-Sale collectively representing 30% of network volume versus just 9% a year ago. Looking ahead, Pagaya raised its full-year 2025 guidance, now targeting total revenue of $1.25 billion to $1.33 billion and GAAP net income of $55.00 million to $75.00 million, signaling confidence in continued execution despite the modest near-term EPS shortfall.
- 30% year-over-year revenue growth driven by personal loan and auto business fee revenue
- FRLPC percentage of network volume expanded 61 basis points year-over-year to 4.8%
- Lending product fees made up 81% of total FRLPC vs 69% in Q2 2024
- Core operating expenses as percentage of FRLPC near lowest since going public at 39%
- Incremental adjusted EBITDA margins of over 100% of FRLPC
- 100% of loans underwritten without manual intervention
- Credit performance stable with personal loan CNLs trending 30-40% below peak levels
“Our results reflect continued disciplined execution across our network of lending and funding partners. Through the combination of our increasingly diversified sources of revenue, our scalable operating model, and our proprietary data advantage, Pagaya continues to create a unique category with the goal to bridge Wall Street and Main Street for the long term.”
Pagaya Technologies CEO, on the earnings call
Forward Guidance & Outlook
For Q3 2025, Pagaya expects network volume of $2.75–$2.95 billion, total revenue and other income of $330–$350 million, adjusted EBITDA of $90–$100 million, and GAAP net income of $10–$20 million (including ~$5–$10 million net loss impact from one-time items such as ~$24 million in bond issuance costs offset by a tax-related benefit). For full-year 2025, the company raised guidance to network volume of $10.5–$11.5 billion, total revenue and other income of $1.25–$1.325 billion, adjusted EBITDA of $345–$370 million, and GAAP net income of $55–$75 million. FRLPC as a percentage of network volume is expected to range between 4.0% and 5.0% for the year. Interest expense is projected to trend lower due to the recent $500 million unsecured notes refinancing.
PGY YoY Financials
Figures from SEC filings and company reports. Not investment advice.