Pagaya Technologies (NASDAQ:PGY) Posts Earnings Results, Beats Estimates By $0.60 EPS

Pagaya Technologies (NASDAQ:PGY) posted its quarterly 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 during the quarter, compared to analyst estimates of $382.10 million. During the same quarter in the prior year, the business earned $1.02 earnings per share. The firm’s revenue for the quarter 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 Price Performance

NASDAQ PGY traded up $0.22 during trading hours on Thursday, hitting $20.69. The company had a trading volume of 2,384,526 shares, compared to its average volume of 3,389,703. 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 firm has a market capitalization of $1.73 billion, a price-to-earnings ratio of 15.21 and a beta of 5.50. Pagaya Technologies has a 52 week low of $10.40 and a 52 week high of $29.75. The firm has a 50 day simple moving average of $19.76 and a 200 day simple moving average of $16.63.

Wall Street Analyst Weigh In

PGY has been the topic of a number of research reports. Jefferies Financial Group lifted their price target 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. Citizens Jmp increased their price objective on Pagaya Technologies from $22.00 to $25.00 and gave the company a “market outperform” rating in a report on Friday, July 31st. B. Riley Financial raised their target price on Pagaya Technologies from $32.00 to $36.00 and gave the stock a “buy” rating in a research report on Friday, July 31st. Canaccord Genuity Group upped their price target on Pagaya Technologies from $32.00 to $36.00 and gave the company a “buy” rating in a research report on Friday, July 31st. Finally, TD Cowen cut their price target on Pagaya Technologies from $26.00 to $25.00 and set a “buy” rating for the company in a research note on Tuesday, October 6th. Two 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. Based on data from MarketBeat.com, Pagaya Technologies currently has an average rating of “Buy” and an average price target of $31.12.

Insider Activity

In other Pagaya Technologies news, President Sanjiv Das sold 21,289 shares of the stock in a transaction that occurred on Monday, August 3rd. The shares were sold at an average price of $22.00, for a total value of $468,358.00. Following the sale, the president directly owned 144,186 shares in the company, valued at $3,172,092. This represents a 12.87% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CAO Cory Vieira sold 2,170 shares of the business’s stock in a transaction on Monday, September 28th. The shares were sold at an average price of $17.04, for a total transaction of $36,976.80. Following the transaction, the chief accounting officer owned 25,160 shares of the company’s stock, valued at $428,726.40. This trade represents a 7.94% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last ninety days, insiders sold 98,117 shares of company stock worth $2,019,059. 41.99% of the stock is owned by company 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.