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Pagaya Technologies Ltd (PGY)
NASDAQ:PGY
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Pagaya Technologies Ltd
(NASDAQ:PGY)
63Neutral
Positive Factors
Financial Performance
1Q results and outlook were solid, with an emphasis on prudent profitability growth noted as a key positive ahead of rising momentum.
Partnership Expansion
The platform continues to win new partners, including an indirect win with Walmart’s OnePay for Buy Now, Pay Later, and is now positioned to expand their post-screening solution to help partners in their pre-screening efforts.
Positive Earnings
Pagaya Technologies' Q1 report marked a significant milestone with its first-ever quarter of positive GAAP net income as a public company, achieved earlier than management had anticipated.
Negative Factors
Market Anxiety
Investors’ anxiety about the macroeconomic situation and markets has been reflected in PGY’s share price, which has declined by 38%.
Volume Underperformance
The company's network volume was below management's guidance range due to lower volume from its lower-margin single-family rental business.
Pagaya Technologies Ltd (PGY) vs. S&P 500 (SPY)
Market Cap
$1.13B
Dividend YieldN/A
Average Volume (3M)2.21M
Price to Earnings (P/E)―
Beta (1Y)2.62
Revenue Growth25.84%
EPS Growth-248.65%
CountryUS
Employees527
SectorTechnology
Sector Strength77
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)0.10
Shares Outstanding63,055,283
10 Day Avg. Volume2,965,260
30 Day Avg. Volume2,209,554
Financial Highlights & Ratios
PEG Ratio0.02
Price to Book (P/B)3.32
Price to Sales (P/S)0.00
P/FCF Ratio19.35
Enterprise Value/Market Cap1.41
Enterprise Value/Revenue0.44
Enterprise Value/Gross Profit3.92
Enterprise Value/Ebitda8.25
Forecast
1Y Price Target
$20.85Price Target Upside38.45% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering6
Pagaya Technologies Ltd Business Overview & Revenue Model
Company DescriptionPagaya Technologies Ltd. operates as a financial technology company in Israel, the United States, and the Cayman Islands. It develops and implements proprietary artificial intelligence technology and related software solutions to assist partners to originate loans and other assets. Its partners include high-growth financial technology companies, incumbent financial institutions, auto finance providers, and brokers. The company was founded in 2016 and is headquartered in Tel Aviv, Israel.
How the Company Makes MoneyPagaya Technologies Ltd primarily generates revenue through its technology platform, which is offered to institutional investors and financial institutions. The company earns money by charging fees for access to its AI-driven analytics and data solutions that help optimize investment portfolios and manage risk. Additionally, Pagaya may receive performance-based fees or a share of the profits generated from the investment strategies it helps to implement. Significant partnerships with large financial institutions and asset managers contribute to its earnings by expanding its client base and enhancing the scalability of its platform.
Pagaya Technologies Ltd Key Performance Indicators (KPIs)
Any
Revenue From Fees
Shows the income generated from service fees, highlighting the company's ability to monetize its platform and sustain its business model.
Shows the income generated from service fees, highlighting the company's ability to monetize its platform and sustain its business model.
Data provided by:
Main Street Data
Main Street DataPagaya Technologies Ltd Financial Statement Overview
Summary
Pagaya Technologies Ltd exhibits strong revenue growth but faces challenges in profitability and debt management. The company needs to address its high debt levels and focus on converting revenue growth into sustainable profit margins. Cash flow improvements are promising, but further efforts are needed to ensure long-term financial health and stability.Income Statement
Pagaya Technologies Ltd has shown significant revenue growth over the years, with a notable increase in total revenue from 2023 to 2024. However, the company is struggling with profitability, as indicated by negative net income and fluctuating EBIT and EBITDA margins. Despite the revenue growth, the company needs to focus on improving its cost management and profitability metrics.65
Positive
Balance Sheet
The company's balance sheet reveals a concerning debt-to-equity ratio, which has increased over the years. Although stockholders' equity has grown, the rising total debt poses a risk to financial stability. The equity ratio remains relatively low, indicating a higher reliance on debt financing.55
Neutral
Cash Flow
Pagaya Technologies Ltd has improved its operating cash flow, with positive free cash flow in the latest year. However, the cash flow from investing activities is significantly negative, which may indicate heavy investment in growth. The operating cash flow to net income ratio suggests challenges in converting profits into cash, necessitating better cash management.60
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 1.00B | 772.81M | 685.41M | 445.87M | 91.74M | Gross Profit |
| 406.90M | 263.87M | 234.33M | 213.54M | 42.66M | EBIT |
| 66.84M | -24.40M | -315.02M | -34.53M | 13.71M | EBITDA |
| 66.84M | -24.40M | -270.08M | -33.72M | 14.00M | Net Income Common Stockholders |
| -401.41M | -128.44M | -292.77M | -69.52M | 19.92M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 195.72M | 188.97M | 310.80M | 200.94M | 62.63M | Total Assets |
| 1.29B | 1.21B | 1.05B | 590.26M | 204.27M | Total Debt |
| 680.81M | 412.58M | 212.26M | 37.91M | 2.47M | Net Debt |
| 492.89M | 226.11M | -97.53M | -152.87M | -2.60M | Total Liabilities |
| 857.74M | 553.01M | 279.66M | 412.91M | 116.13M | Stockholders Equity |
| 326.49M | 559.72M | 553.52M | 1.29M | 3.20M |
| Cash Flow | Free Cash Flow | |||
| 43.28M | -10.61M | -62.41M | 43.19M | 3.16M | Operating Cash Flow |
| 66.52M | 9.58M | -40.00M | 49.81M | 4.26M | Investing Cash Flow |
| -498.64M | -412.69M | -265.42M | -140.74M | -122.76M | Financing Cash Flow |
| 436.69M | 289.10M | 437.92M | 289.62M | 119.50M |
Pagaya Technologies Ltd Technical Analysis
Positive
15.06
Price Trends
11.01
Positive
10.91
Positive
11.29
Positive
Market Momentum
1.14
Negative
71.22
Negative
93.56
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PGY, the sentiment is Positive. The current price of 15.06 is above the 20-day moving average (MA) of 11.71, above the 50-day MA of 11.01, and above the 200-day MA of 11.29, indicating a bullish trend. The MACD of 1.14 indicates Negative momentum. The RSI at 71.22 is Negative, neither overbought nor oversold. The STOCH value of 93.56 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PGY.
Pagaya Technologies Ltd Risk Analysis
Pagaya Technologies Ltd disclosed 1 risk factors in its most recent earnings report. Pagaya Technologies Ltd reported the most risks in the “Legal & Regulatory” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Pagaya Technologies Ltd Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $1.13B | 19.02 | 6.35% | ― | -0.13% | 263.78% | |
73 Outperform | $823.78M | 5.75 | 0.63% | ― | -35.88% | 4611.09% | |
66 Neutral | $845.98M | ― | -18.61% | ― | 4.11% | -935.85% | |
65 Neutral | $975.98M | ― | -57.86% | ― | 16.35% | 14.27% | |
63 Neutral | $1.13B | ― | -77.37% | ― | 25.84% | -248.65% | |
60 Neutral | $11.60B | 10.64 | -6.04% | 2.94% | 7.87% | -11.74% | |
57 Neutral | $712.37M | ― | -6.09% | ― | ― | ― |
* Technology Sector Average
Performance Comparison
PGY
Pagaya Technologies Ltd
15.06
3.27
27.74%
VRNT
Verint Systems
18.09
-13.83
-43.33%
YEXT
Yext
6.87
1.09
18.86%
IIIV
I3 Verticals
26.75
6.85
34.42%
CGNT
Cognyte Software
9.73
2.09
27.36%
BASE
Couchbase
18.44
-8.08
-30.47%
Pagaya Technologies Ltd Earnings Call Summary
Earnings Call Date:May 07, 2025
(Q1-2025)
| % Change Since: 31.07%|
Next Earnings Date:Aug 08, 2025
Earnings Call Sentiment Positive
The earnings call reflects a strong positive sentiment with significant achievements in revenue growth, profitability, and strategic partnerships, despite minor challenges in network volume.Q1-2025 Updates
Positive Updates
Record Revenue and Growth
Pagaya Technologies achieved an 18% year-over-year revenue growth, reaching an annualized run rate of nearly $1.2 billion. Fee revenue less production costs (FRLPC) grew by 26%.
Positive GAAP Net Income
The company achieved a positive GAAP net income of $8 million, ahead of guidance and for the first time as a public company.
Significant Increase in Adjusted EBITDA
Adjusted EBITDA grew by 100% year-over-year to an annualized equivalent of approximately $320 million.
Expansion in Lending Partnerships
The company doubled the number of lending partners with at least $100 million in volume this quarter compared to a year ago.
Diversified Funding Structure
Pagaya secured a forward flow agreement with Blue Owl Capital to purchase up to $2.4 billion in loans over 24 months, enhancing its liquidity and funding strategy.
Negative Updates
Network Volume Slightly Below Guidance
Network volume was slightly below guidance at $2.4 billion due to lower Single-Family Rental (SFR) volume.
Company Guidance
During the Pagaya Technologies Q1 2025 earnings call, the management highlighted key performance metrics and provided guidance for the upcoming quarters. The company reported a notable 18% year-over-year increase in revenue, reaching an annualized run rate of nearly $1.2 billion. Fee revenue less production costs (FRLPC) grew by 26%, reaching an annualized run rate of over $460 million. The company's efficient cost structure led to a 100% growth in adjusted EBITDA, amounting to approximately $320 million on an annualized basis. For the first time as a public company, Pagaya achieved positive GAAP net income of $8 million, one quarter ahead of schedule. The guidance for Q2 2025 includes a network volume between $2.3 billion and $2.5 billion, with total revenue anticipated to be between $290 million and $310 million. Adjusted EBITDA is projected to be in the range of $75 million to $90 million, and GAAP net income is expected to be between breakeven and $10 million. For the full year 2025, the company 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.Pagaya Technologies Ltd Corporate Events
Private Placements and FinancingBusiness Operations and StrategyFinancial Disclosures
Pagaya Technologies Reports Q1 2025 Profitability Turnaround
Positive
May 7, 2025
On May 7, 2025, Pagaya Technologies Ltd. reported its financial results for the first quarter ending March 31, 2025, highlighting a significant turnaround to GAAP profitability earlier than anticipated. The company achieved a net income of $8 million, a record adjusted EBITDA of $80 million, and total revenue of $290 million, marking substantial year-over-year growth. Pagaya also raised its full-year guidance for total revenue, GAAP net income, and adjusted EBITDA, indicating strong operational leverage and growing partner adoption. The company expanded its funding network with three new investors, raising $1.4 billion across three transactions in Q1, and expects continued growth in the second quarter and full year 2025.
Spark’s Take on PGY Stock
According to Spark, TipRanks’ AI Analyst, PGY is a Neutral.
Pagaya Technologies Ltd scores moderately due to strong revenue growth and a positive earnings outlook. However, challenges with profitability, high debt levels, and mixed technical signals limit the overall score. The promise of future profitability and strategic partnerships provides a positive long-term outlook.
To see Spark’s full report on PGY stock, click here.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.