Pagaya Technologies Ltd (PGY) AI Stock Analysis

• Market Cap: $2.06B
• Dividend Yield: N/A
• Average Volume (3M): 5.00M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.13
• Revenue Growth: 26.24%
• EPS Growth: -94.81%
• Country: US
• Employees: 527
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): 0.20
• Shares Outstanding: 65,319,850
• 10 Day Avg. Volume: 3,318,721
• 30 Day Avg. Volume: 4,999,014
• PEG Ratio: >-0.01
• Price to Book (P/B): 2.02
• Price to Sales (P/S): 0.66
• P/FCF Ratio: 13.50
• Enterprise Value/Market Cap: 1.17
• Enterprise Value/Revenue: 2.14
• Enterprise Value/Gross Profit: 5.24
• Enterprise Value/Ebitda: 14.93
• 1Y Price Target: $39.67
• Price Target Upside: 47.53% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7

• Rating: 53 Neutral
• Price Target: $29.00 ▲(7.85% Upside)

Pagaya Technologies Ltd's overall stock score is driven by strong earnings call performance and strategic growth initiatives, which are offset by financial risks related to profitability and leverage. The technical analysis and valuation further highlight the challenges, with mixed market signals and a negative P/E ratio.

Positive Factors

Revenue Growth

Record revenue growth indicates strong market demand and effective business strategies, supporting long-term financial health and expansion opportunities.

Diversification

Diversification into new lending segments reduces dependency on traditional markets, enhancing resilience and growth potential in varying economic conditions.

Operational Efficiency

High operational efficiency, as evidenced by strong EBITDA, indicates effective cost management and scalability, crucial for sustaining profitability and competitive advantage.

Negative Factors

High Leverage

High leverage can constrain financial flexibility and increase risk, potentially impacting the company's ability to invest in growth and weather economic downturns.

Profitability Challenges

Negative profit margins highlight challenges in achieving sustainable profitability, which can limit reinvestment capacity and shareholder returns over the long term.

Macroeconomic Caution

Caution due to macroeconomic uncertainties may lead to conservative strategies, potentially slowing growth and impacting market positioning in a dynamic environment.

Pagaya Technologies Ltd Business Overview & Revenue Model

Company Description

Pagaya 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 Money

Pagaya generates revenue through a combination of asset management fees, performance fees, and partnerships with financial institutions. Its primary revenue stream comes from managing investment portfolios for clients, where it charges management fees based on the assets under management (AUM). Additionally, the company earns performance fees tied to the investment returns it achieves for its clients. Pagaya has established significant partnerships with banks and credit unions, which help broaden its reach and facilitate access to a larger pool of capital. These collaborations not only enhance its credibility in the market but also contribute to increased transaction volumes, thereby boosting its overall earnings.

Pagaya Technologies Ltd Financial Statement Overview

Summary

Pagaya Technologies Ltd shows growth in revenue and cash flow, but faces challenges in profitability and leverage. The company needs to improve its net profit margins and manage its debt levels to enhance financial stability.

Income Statement

Pagaya Technologies Ltd shows a mixed performance in its income statement. The company has achieved a positive revenue growth rate of 7.15% in the TTM, indicating a growing top line. However, the net profit margin remains negative at -24.96%, reflecting ongoing profitability challenges. The gross profit margin is relatively healthy at 40.84%, but the EBIT and EBITDA margins are modest at 11.61% and 14.34% respectively, suggesting room for operational efficiency improvements.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 2.08, indicating significant leverage and potential financial risk. The return on equity is negative at -75.34%, highlighting challenges in generating returns for shareholders. The equity ratio stands at 26.21%, suggesting a moderate level of equity financing relative to total assets.

Cash Flow

The cash flow statement shows a strong free cash flow growth rate of 59.34% in the TTM, indicating improved cash generation. The operating cash flow to net income ratio is 0.48, which is below 1, suggesting that operating cash flow is not fully covering net losses. However, the free cash flow to net income ratio is 0.87, indicating better cash flow management relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.13B	1.00B	772.81M	685.41M	445.87M	91.74M
Gross Profit	459.65M	406.90M	263.87M	234.33M	213.54M	42.66M
EBITDA	161.34M	67.89M	-24.40M	-270.08M	-33.72M	14.00M
Net Income	-280.85M	-401.41M	-128.44M	-292.77M	-69.52M	19.92M
Balance Sheet
Total Assets	1.40B	1.29B	1.21B	1.05B	590.26M	204.27M
Cash, Cash Equivalents and Short-Term Investments	204.50M	195.72M	188.97M	310.80M	200.94M	62.63M
Total Debt	763.71M	680.81M	412.58M	212.26M	37.91M	2.47M
Total Liabilities	931.06M	849.53M	553.01M	279.66M	412.91M	116.13M
Stockholders Equity	366.75M	326.49M	559.72M	553.52M	1.29M	3.20M
Cash Flow
Free Cash Flow	106.55M	48.78M	-10.61M	-62.41M	43.19M	3.16M
Operating Cash Flow	122.34M	66.52M	9.58M	-40.00M	49.81M	4.26M
Investing Cash Flow	-299.55M	-498.64M	-412.69M	-265.42M	-140.74M	-122.76M
Financing Cash Flow	148.91M	436.69M	289.10M	437.92M	289.62M	119.50M

Pagaya Technologies Ltd Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 26.89
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PGY, the sentiment is Negative. The current price of 26.89 is below the 20-day moving average (MA) of 28.65, below the 50-day MA of 33.34, and above the 200-day MA of 20.97, indicating a neutral trend. The MACD of -1.52 indicates Negative momentum. The RSI at 39.21 is Neutral, neither overbought nor oversold. The STOCH value of 19.15 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PGY.

Pagaya Technologies Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ODD	―	$2.53B	25.25	30.36%	―	26.12%	28.03%
DOCN	―	$3.70B	31.94	―	―	13.29%	79.98%
PAGS	―	$3.16B	7.70	14.59%	1.42%	0.09%	5.38%
AVPT	―	$2.98B	―	-2.60%	―	24.41%	40.20%
Sector *	―	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
PGY	―	$2.06B	―	-62.92%	―	26.24%	-94.81%
WRD	―	$3.34B	―	―	―	―	―

Pagaya Technologies Ltd Corporate Events

Pagaya Technologies Refinances Credit Facility for Growth

On October 1, 2025, Pagaya Technologies Ltd. announced the refinancing of its revolving credit facility by terminating the 2024 Credit Agreement and entering into a new agreement with BMO BANK N.A. and other lenders. The new facility, amounting to $132 million, significantly reduces Pagaya’s cost of debt capital by lowering the interest rate by nearly 35%. This expansion more than doubles the previous facility and reflects strong demand from both new and existing lenders, enhancing Pagaya’s financial stability and positioning it for sustained growth amidst market volatility.

The most recent analyst rating on (PGY) stock is a Buy with a $48.00 price target. To see the full list of analyst forecasts on Pagaya Technologies Ltd stock, see the PGY Stock Forecast page.

Pagaya Technologies Reports Strong Q2 2025 Results

Pagaya Technologies Ltd., a global technology company specializing in artificial intelligence infrastructure for the financial ecosystem, reported its financial results for the second quarter and first half of 2025, showcasing significant growth and strategic advancements.

Pagaya Technologies’ Earnings Call Highlights Record Growth

Pagaya Technologies Ltd. recently held its earnings call, revealing a mix of record-breaking achievements and notable challenges. The sentiment was largely positive, with significant accomplishments in income and revenue, bolstered by successful funding initiatives and robust credit performance. However, the company also faced onboarding delays with bank partners and incurred substantial one-time costs that impacted net income. Despite these hurdles, the overall outlook remains optimistic.

Pagaya Technologies Reports Strong Q2 2025 Results

On August 7, 2025, Pagaya Technologies Ltd. reported its financial results for the second quarter and first half of 2025, showcasing a second consecutive quarter of positive GAAP net income and raising its full-year guidance. The company achieved record performance across key metrics, including a net income of $17 million, adjusted EBITDA of $86 million, and total revenue of $326 million. Pagaya also issued its first AAA-rated Auto ABS and Point-of-Sale ABS structures and successfully issued $500 million in senior unsecured notes. These results highlight Pagaya’s disciplined execution and strategic growth in its lending and funding network, positioning it as a unique player in bridging Wall Street and Main Street.

The most recent analyst rating on (PGY) stock is a Buy with a $14.50 price target. To see the full list of analyst forecasts on Pagaya Technologies Ltd stock, see the PGY Stock Forecast page.