$PGY

Pagaya Technologies Ltd.

CIK:0001883085|SEC Filings

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) - USD ($)
$ in Thousands

3 Months Ended

6 Months Ended

Jun. 30, 2026

Jun. 30, 2025

Jun. 30, 2026

Jun. 30, 2025

Revenue

Revenue from fees

^[1]

$ 365,639

$ 317,714

$ 664,630

$ 600,418

Other Income

Interest income

22,205

10,739

39,871

18,415

Investment (loss) income, net

(802)

(2,055)

485

(2,446)

Total Revenue and Other Income

387,042

326,398

704,986

616,387

Production costs

218,715

191,465

396,276

358,548

Technology, data and product development

17,348

18,455

33,288

37,899

Sales and marketing

10,087

19,660

21,219

29,254

General and administrative

35,093

40,349

68,399

86,532

Total Costs and Operating Expenses

281,243

269,929

519,182

512,233

Operating Income

105,799

56,469

185,804

104,154

Gains and (losses) on investments in loans and securities

^[2]

(42,318)

(14,251)

(80,314)

(43,275)

Other expenses, net

^[2]

(22,972)

(20,181)

(38,438)

(38,890)

Gains and (losses) from extinguishment of debt

^[2]

737

(496)

1,504

(496)

Income Before Income Taxes

41,246

21,541

68,556

21,493

Income tax (benefit) expense

(1,088)

4,978

2,061

2,438

Net Income Including Noncontrolling Interests

42,334

16,563

66,495

19,055

Less: Net loss attributable to noncontrolling interests

(2,939)

(92)

(3,472)

(5,493)

Net Income Attributable to Pagaya Technologies Ltd.

$ 45,273

$ 16,655

$ 69,967

$ 24,548

Earnings per share attributable to Pagaya Technologies Ltd.’s ordinary shareholders (Note 12):

Basic (in dollars per share)

$ 0.53

$ 0.20

$ 0.82

$ 0.30

Diluted (in dollars per share)

$ 0.49

$ 0.20

$ 0.77

$ 0.29

Weighted average shares outstanding:

Basic (in shares)

83,184,935

76,873,529

82,926,257

76,347,801

Diluted (in shares)

97,247,579

79,667,635

96,963,421

78,301,110

[1]

Includes related-party revenues from ABS securitization trusts and investment funds totaling $231.4 million and $146.6 million for the three months ended June 30, 2026 and 2025, and $390.3 million and $314.5 million for the six months ended June 30, 2026 and 2025, respectively. Refer to Note 11, “Transactions with Related Parties,” for additional information regarding related-party transactions with ABS securitization trusts and investment funds.

[2]

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

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($)
$ in Thousands

6 Months Ended

Jun. 30, 2026

Jun. 30, 2025

Cash flows from operating activities

Net income including noncontrolling interests

$ 66,495

$ 19,055

Adjustments to reconcile net income to net cash used in operating activities:

Equity method and other investments (income) loss

(485)

2,446

Depreciation and amortization

7,777

15,315

Share-based compensation

15,765

31,400

Fair value adjustment to warrant liability

(3,948)

1,578

(Gains) and losses on investments in loans and securities

^[1]

80,314

45,915

Amortization of deferred costs

^[1]

11,619

5,347

(Gains) and losses from extinguishment of debt

^[1]

(1,504)

496

Write-off of capitalized software and other assets

^[1]

7,447

1,924

Losses on foreign exchange

157

1,311

Change in operating assets and liabilities:

Fee receivables

^[1]

(41,076)

(22,356)

Accrued interest on investments

(25,194)

(15,246)

Right-of-use assets

3,254

3,035

Other assets

^[1]

(8,245)

7,928

Accounts payable

770

2,108

Accrued expenses and other liabilities

5,210

(5,842)

Operating lease liability

(3,739)

(3,001)

Income taxes

3,270

364

Net cash provided by operating activities

117,887

91,777

Cash flows from investing activities

Proceeds from the maturity and prepayment of investments in loans and securities

^[1]

345,703

97,963

Proceeds from the sales of investments in loans and securities

^[1]

19,394

31,387

Proceeds from equity method and other investments

2,700

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

159

Purchases of investments in loans and securities

(496,019)

(274,125)

Purchases of property, equipment and software

(6,625)

(7,576)

Net cash used in investing activities

(134,847)

(152,192)

Cash flows from financing activities

Proceeds from secured borrowing

185,230

244,894

Proceeds from revolving credit facility

114,700

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

902

3,977

Distributions made to noncontrolling interests

(18,213)

(8,420)

Payments made to revolving credit facility

(114,700)

Payments made to secured borrowing

(127,489)

(156,924)

Payments made to long-term debt

(9,461)

(8,875)

Net cash provided by financing activities

30,969

74,652

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

2,065

1,279

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

16,074

15,516

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

288,349

226,518

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

304,423

242,034

Reconciliation of cash and cash equivalents, and restricted cash and cash equivalents within the unaudited condensed consolidated balance sheet to the amounts shown in the statements of cash flow above:

Cash and cash equivalents

249,257

182,986

Restricted cash and cash equivalents

55,166

59,048

Total cash and cash equivalents, and restricted cash and cash equivalents

$ 304,423

$ 242,034

[1]	Prior period amounts have been reclassified to conform to the current period’s presentation.

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($)
$ in Thousands

Jun. 30, 2026

Dec. 31, 2025

Assets

Cash and cash equivalents

$ 249,257

$ 235,329

Restricted cash and cash equivalents

55,166

53,020

Fee receivables

^[1]

190,470

153,250

Investments in loans and securities at fair value

1,040,118

945,269

Equity method and other investments

11,303

13,518

Right-of-use assets

27,324

30,578

Property, equipment and software, net

32,657

30,221

Goodwill

22,903

Intangible assets, net

4,801

7,661

Other assets

^[1]

59,108

54,165

Total Assets

1,693,107

1,545,914

Liabilities:

Accounts payable

4,053

3,931

Accrued expenses and other liabilities

80,136

74,635

Operating lease liabilities

32,413

34,212

Income taxes payable and other tax liabilities

21,913

18,687

Warrant liability

775

4,723

Secured borrowing

252,995

193,892

Exchangeable notes

150,070

148,782

Long-term debt

471,866

481,598

Total Liabilities

1,014,221

960,460

Redeemable convertible preferred shares, no par value, 6,666,666 shares authorized, 2,027,147 shares issued and outstanding as of both June 30, 2026 and December 31, 2025; aggregate liquidation preference of $60,814 as of both June 30, 2026 and December 31, 2025.

30,103

Shareholders' equity:

Additional paid-in capital

1,408,832

1,390,990

Accumulated other comprehensive loss

(21,992)

(48,319)

Accumulated deficit

(792,687)

(862,654)

Total Pagaya Technologies Ltd. shareholders’ equity

594,153

480,017

Noncontrolling interests

54,630

75,334

Total Equity

648,783

555,351

Total Liabilities, Redeemable Convertible Preferred Shares, and Equity

1,693,107

1,545,914

Common Class A

Shareholders' equity:

Common stock

Common Class B

Shareholders' equity:

Common stock

$ 0

[1]

ncludes related-party fee receivables from ABS securitization trusts and investment funds totaling $124.3 million and $106.9 million and other related-party assets from ABS securitization trusts and investment funds of $46.9 million and $42.6 million, as of June 30, 2026 and December 31, 2025, respectively. Refer to Note 11, “Transactions with Related Parties,” for additional information regarding related-party transactions with ABS securitization trusts and investment funds.