Companies

Pagaya Technologies Ltd - Class A

NASDAQ: PGY
$20.72
▼ $1.02 (−4.67%) today
Markets open · 3:00pm ET

Q1 2026 Earnings

Reported May 7, 2026, 7:02am ET · SEC source
$0.73
Beat +29.43%
EPS · est. $0.56
$317.9M
Miss −1.82%
Revenue · est. $323.8M
−5.3%
Trailing market
PGY vs S&P since report
4 quarters
Consecutive EPS beats

Market Reaction

% change · around the report
−10%−5%0+5%May 7May 8report 7:02am ETearnings+0.3%−8.5%
−10%−5%0+5%May 7May 8earnings+0.3%−8.5%
PGY −8.5%S&P 500 +0.3%
−10%−5%0+5%May 7May 8report 7:02am ETearnings+2.0%−8.5%
−10%−5%0+5%May 7May 8earnings+2.0%−8.5%
PGY −8.5%NASDAQ +2.0%
−24%−16%−8%0May 6May 15report 7:02am ETearnings+0.7%−20.9%
−24%−16%−8%0May 6May 15earnings+0.7%−20.9%
PGY −20.9%S&P 500 +0.7%
−24%−16%−8%0May 6May 15report 7:02am ETearnings+1.7%−20.9%
−24%−16%−8%0May 6May 15earnings+1.7%−20.9%
PGY −20.9%NASDAQ +1.7%
+4.52%
Day of report
−2.00%
Next session
−12.26%
One week
−4.52%
30 days

S&P 500 over the same 30 days: +0.75%.

Did PGY Beat Earnings? Q1 2026 Results

Pagaya Technologies delivered a strong first-quarter beat in fiscal 2026, posting earnings per share of $0.73 against a consensus estimate of $0.56, a 30.36% positive surprise, as revenue climbed 12.5% year-over-year to $317.94 million. The outperformance was anchored by accelerating momentum in the Auto vertical, which reached an annualized run-rate of $2.30 billion, alongside a 130% surge in interest income to $17.67 million that bolstered total revenue and other income. Operating income rose 68% to $80.00 million as network volume grew 9% to $2.62 billion, with Auto and Point-of-Sale verticals leading the expansion. Adjusted EBITDA climbed 18% to $94.17 million, with margins widening to 30% from 27% a year ago. Looking ahead, management raised its full-year GAAP net income guidance to $110.00 million to $160.00 million, and guided Q2 revenue to $345.00 million to $365.00 million, signaling continued confidence in partner deepening and Auto vertical contributions through the remainder of the year.

Key Takeaways
  • Auto and Point-of-Sale vertical growth drove 9% YoY network volume increase (23% ex-SFR)
  • 130% growth in interest income reflecting continued growth in on-balance-sheet investments
  • Operating leverage with core operating expenses flat sequentially while FRLPC grew 5% YoY
  • Adjusted EBITDA margin expanded to 30% from 27% a year ago
  • Lower share-based compensation expense ($7.2M vs $13.2M YoY) contributed to operating efficiency
  • Deliberate shift toward higher-quality borrowers and tighter underwriting standards

“Our results this quarter demonstrate, once again, that at Pagaya, profitability and disciplined risk management are not in tension — they are the same strategy. As we expand our partner network and deepen product adoption, we are building the durable, through-the-cycle business that will bridge Wall Street and Main Street for the long run.”

Pagaya Technologies CEO, on the earnings call

Forward Guidance & Outlook

For Q2 2026, Pagaya expects network volume of $2.875–$3.075 billion, total revenue and other income of $345–$365 million, adjusted EBITDA of $100–$115 million, and GAAP net income of $25–$45 million. For full-year 2026, the company raised its GAAP net income guidance to $110–$160 million (previously not specified as raised but described as increased), with network volume expected at $11.45–$13.0 billion, total revenue and other income of $1.4–$1.575 billion, adjusted EBITDA of $420–$460 million, and FRLPC as a % of network volume of 4.0%–5.0%. Growth is expected to be driven by deeper engagement with existing partners (particularly Auto), contributions from new partners, and new product initiatives. The company assumes cost of capital remains at current elevated levels.

PGY YoY Financials

Q1 2026 vs Q1 2025 · SEC filings Q1 2025 Q1 2026
$0$90.0M$180.0M$270.0M$282.7M$317.9MRevenue$47.7M$80.0MOperating Income$7.9M$24.7MNet Income
$0$90.0M$180.0M$270.0MRevenueOperating IncomeNet Income

Figures from SEC filings and company reports. Not investment advice.