Key Takeaways LendingClub is poised for growth backed by its hybrid bank and marketplace model.PGY posted record $81.4M net income in 2025 as revenues rose 26.1% y/y and EBITDA jumped 76.3%.The LC stock has gained 28.5% in a year and trades at 1.24X P/B versus Pagaya's 1.78X.LendingClub Corporation (LC) and Pagaya Technologies Ltd. (PGY) operate in the same consumer credit ecosystem but with different business models. Both use advanced data analytics and technology to broaden credit access and enhance under ...

Core Viewpoint - Pagaya Technologies (NASDAQ:PGY) is identified as one of the small-cap software infrastructure stocks with significant upside potential despite recent price target reductions by analysts [1]. Group 1: Analyst Insights - Benchmark analyst Mark Palmer reduced the price target for Pagaya Technologies from $48 to $33 while maintaining a Buy rating, indicating an upside potential of over 168% [1]. - Citizens JMP analyst David Scharf lowered his target price from $35 to $22 but kept an Outperform rating, suggesting an upside potential of nearly 79% from current levels [3]. - Both analysts noted that the recent selloff was disconnected from management's expectations, with no operational issues or credit stress reported by the company [2]. Group 2: Company Overview - Pagaya Technologies is a product-focused technology company that aims to reduce manual effort and enhance accuracy in business workflows through data science and proprietary AI-enabled technology [4]. - The company serves a variety of clients, including financial institutions, fintech companies, banks, and real estate service providers [4]. Group 3: Market Context - Management's guidance for 2026 reflects a cautious growth forecast amid credit tightening, but there are potential entry points due to near-term market fluctuations [3].

Core Insights - Pagaya Technologies (PGY) achieved GAAP profitability in 2025 after substantial losses in previous years, marking a significant turnaround with positive net income reported in all four quarters of the year [1][2]. Financial Performance - For the full year 2025, Pagaya reported a record net income of $81.4 million, a substantial recovery from a net loss of $401.4 million in 2024 [2][9]. - Total revenue and other income grew by 26.1% year over year, primarily driven by increased fee income from its lending network [2][9]. - Adjusted EBITDA surged by 76.3% year over year, indicating improved operational efficiency and cost management [3][9]. Operational Efficiency - The company benefited from operating leverage, where revenue growth outpaced expense growth, leading to improved margins and a quicker transition to profitability [3][4]. - Enhanced funding diversification and disciplined risk management practices supported the company's profitability, allowing it to maintain capital availability while focusing on profitable growth [4]. Market Reaction - Despite the strong performance in 2025, PGY's stock experienced a decline due to management's softer-than-expected guidance for early 2026, projecting network volume of $2.5-$2.7 billion and total revenues of $315-$335 million for Q1 2026 [5][9]. - The stock has lost 63.4% over the past six months, contrasting with a 25% decline in the industry [8][10]. Peer Comparison - In 2025, Upstart Holdings, Inc. reported a net income of $53.6 million, with total revenues increasing by 64% year over year to $1.04 billion [6]. - Upstart expects total revenues of $1.4 billion for 2026, indicating strong growth prospects in comparison to Pagaya's guidance [7].

Core Viewpoint - Canaccord and Keefe Bruyette have both lowered their price targets for Pagaya Technologies Ltd. while maintaining positive ratings, indicating a cautious but optimistic outlook on the company's future growth potential [1][2]. Group 1: Price Target Adjustments - Canaccord reduced its price target on Pagaya Technologies Ltd. to $32 from $39 while maintaining a Buy rating [1] - Keefe Bruyette lowered its price target to $30 from $35 while keeping an Outperform rating [2] Group 2: Financial Performance - Pagaya reported fourth-quarter revenue of $321.036 million, which was below the consensus estimate of $349.51 million [2] - For fiscal 2026, Pagaya guided revenue expectations between $1.4 billion and $1.575 billion, compared to consensus estimates of $1.52 billion [2] Group 3: Company Strategy and Market Position - CEO Gal Krubiner emphasized the company's focus on long-term growth and profitability, supported by previous investments [2] - Pagaya utilizes data science and proprietary AI technology to serve financial services providers and asset investors across various markets [3]

Key Takeaways PGY stock plunged 47.7% in a month after it provided a soft early 2026 guidance.Pagaya projects 1Q26 network volume of $2.5-$2.7B and revenues of $315-$335M.PGY's tighter underwriting may boost credit quality but could curb near-term loan growth.After an impressive price performance in most of 2025, shares of Pagaya Technologies Ltd. (PGY) have plunged 47.7% in the past month, underperforming the S&P 500 Index and the industry to which it belongs.If we compare the company’s price performance t ...

Core Insights - Pagaya Technologies Ltd. (NASDAQ:PGY) is identified as one of the 14 oversold value stocks to invest in currently [1] Group 1: Financial Transactions - On February 4, 2026, Pagaya closed a $800 million AAA-rated personal loan ABS transaction, exceeding the initial $600 million target by 33% due to strong institutional demand [2] - The transaction involved 32 investors, most of whom returned from prior deals, indicating confidence in Pagaya's AI-driven consumer credit platform [2] - Since 2018, Pagaya has issued over $34.5 billion across 85 ABS deals, showcasing its significant market presence [2] Group 2: Strategic Agreements - On January 26, 2026, Pagaya finalized a forward flow agreement with Sound Point Capital Management to acquire up to $720 million in point-of-sale loans [3] - This agreement allows Pagaya to employ scalable, repeatable capital solutions across its growing product portfolio, enhancing its operational capabilities [3] - The company aims to build a multi-channel funding platform by combining public ABS programs with private capital partnerships to drive growth and resilience in 2026 [3] Group 3: Company Overview - Pagaya Technologies Ltd. is a New York-based AI fintech company that develops data-driven solutions for consumer credit [4] - The company enables real-time evaluation across personal loans, auto, and point-of-sale products for institutional investors [4]

Core Insights - Pagaya Technologies reported quarterly earnings of 80 cents per share, exceeding the analyst consensus estimate of 69 cents per share [1] - The company reported quarterly sales of $321.036 million, which fell short of the analyst consensus estimate of $349.048 million [1] - For the first quarter, Pagaya expects sales between $315 million and $335 million, compared to market estimates of $346.734 million [1] Financial Performance - The fourth quarter and full-year results highlight the company's focus on long-term growth and profitability, benefiting from prior investments [2] - CEO Gal Krubiner emphasized the company's strategy to bridge the gap between Main Street and Wall Street [2] Stock Performance - Pagaya Technologies shares increased by 1% to $14.34 following the earnings announcement [3] - Analysts adjusted their price targets for Pagaya Technologies after the earnings report [3] Analyst Ratings - Canaccord Genuity analyst Joseph Vafi maintained a Buy rating on Pagaya Technologies but reduced the price target from $39 to $32 [4] - Benchmark analyst Mark Palmer also maintained a Buy rating while lowering the price target from $48 to $33 [4]

Core Viewpoint - Pagaya Technologies Ltd. (NASDAQ:PGY) has received an "Overweight" rating from Stephens, with a revised price target of $25, down from $33, despite a significant drop in stock price [1][6]. Financial Performance - Pagaya reported total revenue and other income of $335 million for the latest quarter, representing a 20% year-over-year increase, but this was below analysts' expectations of nearly $349 million [2]. - The company's non-GAAP net income surged nearly sixfold to approximately $78.8 million, or $0.80 per share, significantly exceeding the consensus estimate of $0.35 per share [4][6]. Stock Performance - The stock price of PGY is currently $14.19, reflecting a decrease of $4.45 or approximately 23.87% [5]. - During the trading day, PGY fluctuated between a low of $13.50 and a high of $15.29, with a market capitalization of approximately $1.14 billion and a trading volume of 23,772,868 shares on NASDAQ [5]. Network Volume - Pagaya's network volume saw a modest increase of 3%, reaching $2.7 billion, which, combined with the revenue shortfall, raised investor concerns [3].

Core Viewpoint - Pagaya Technologies Ltd. is a financial technology company utilizing artificial intelligence to enhance decision-making in the financial sector, with a price target of $33 set by Benchmark Co., indicating a potential increase of 132% from its current price of $14.19 [1][5] Financial Performance - The Q4 2025 earnings call revealed that despite the current stock price of $14.19, which is a decrease of 23.87% from previous levels, the company is committed to its long-term growth strategy [2][5] - The company's stock has shown significant volatility, with a 52-week high of $44.99 and a low of $8.50, which is crucial for investors to consider [3][5] Market Activity - Pagaya's market capitalization is approximately $1.14 billion, reflecting its size in the financial technology sector [3] - The trading volume for NASDAQ:PGY is 23,772,868 shares, indicating active investor interest that can influence stock price movements and liquidity [4]

Core Insights - Pagaya Technologies reported quarterly results that fell short of market expectations, resulting in a nearly 24% decline in share price [1] Financial Performance - The company generated $335 million in total revenue and other income for the fourth quarter, marking a 20% year-over-year increase [2] - Network volume increased by only 3% to $2.7 billion, which was below expectations [2] - Non-GAAP net income rose almost sixfold to nearly $78.8 million, or $0.80 per share, surpassing the consensus estimate of $0.35 per share [4] Strategic Changes - The slower growth in network volume and the disparity between revenue and net income growth rates were attributed to Pagaya's strategic exit from its single-family rental (SFR) operations [5] Future Guidance - For the first quarter, Pagaya anticipates network volume to be flat or slightly down, ranging from $2.5 billion to $2.7 billion, with revenue projected between $315 million and $335 million [7] - The company's guidance for the full year includes a network volume range of $11.25 billion to $13 billion and revenue expectations of $1.4 billion to nearly $1.58 billion [8]