Pagaya Technologies Reports Strong Growth and Positive Outlook

Pagaya Technologies Ltd. ((PGY)) has held its Q1 earnings call. Read on for the main highlights of the call.

Pagaya Technologies Ltd. recently held its earnings call, which was marked by a strong positive sentiment. The company celebrated significant achievements in revenue growth, profitability, and strategic partnerships, despite facing minor challenges in network volume.

Record Revenue and Growth

Pagaya Technologies reported an impressive 18% year-over-year revenue growth, reaching an annualized run rate of nearly $1.2 billion. The company also saw a 26% increase in fee revenue less production costs (FRLPC), highlighting its robust financial health and growth trajectory.

Positive GAAP Net Income

For the first time as a public company, Pagaya achieved a positive GAAP net income of $8 million, surpassing its guidance. This milestone reflects the company’s effective financial management and strategic execution.

Significant Increase in Adjusted EBITDA

The company reported a remarkable 100% year-over-year growth in adjusted EBITDA, reaching an annualized equivalent of approximately $320 million. This substantial increase underscores Pagaya’s operational efficiency and profitability.

Expansion in Lending Partnerships

Pagaya doubled the number of lending partners with at least $100 million in volume this quarter compared to the previous year. This expansion indicates the company’s growing influence and market presence in the lending sector.

Diversified Funding Structure

The company secured a forward flow agreement with Blue Owl Capital to purchase up to $2.4 billion in loans over 24 months. This agreement enhances Pagaya’s liquidity and funding strategy, ensuring financial stability and growth potential.

Network Volume Slightly Below Guidance

Despite the positive outcomes, Pagaya’s network volume was slightly below guidance at $2.4 billion, attributed to lower Single-Family Rental (SFR) volume. This minor setback highlights areas for potential improvement in the company’s operations.

Forward-Looking Guidance

Looking ahead, Pagaya Technologies has set optimistic projections for the upcoming quarters. The company anticipates a network volume between $2.3 billion and $2.5 billion for Q2 2025, with total revenue expected to range from $290 million to $310 million. Adjusted EBITDA is projected to be between $75 million and $90 million, while GAAP net income is forecasted to be between breakeven and $10 million. For the full year 2025, Pagaya has increased its GAAP net income guidance to a range of $10 million to $45 million, with total revenue projected between $1.175 billion and $1.3 billion.

In summary, Pagaya Technologies Ltd.’s earnings call was marked by a strong positive sentiment, with notable achievements in revenue growth, profitability, and strategic partnerships. Despite minor challenges in network volume, the company remains optimistic about its future, with robust guidance for the upcoming quarters. Investors and stakeholders can look forward to Pagaya’s continued growth and success in the financial markets.