Pagaya Technologies Ltd. (PGY) came out with quarterly earnings of $0.69 per share, beating the Zacks Consensus Estimate of $0.40 per share. This compares to earnings of $0.20 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 72.50%. A quarter ago, it was expected that this company would post earnings of $0.32 per share when it actually produced earnings of $0.17, delivering a surprise of -46.88%.Over the last four quarters, the ...

Pagaya Technologies (PGY) Q1 2025 Earnings Call May 07, 2025 08:30 AM ET Company Participants Josh Fagen - Head of Investor Relations & COO of FinanceGal Krubiner - Co-Founder, CEO & DirectorSanjiv Das - Co-Founder and PresidentEvangelos Perros - Chief Financial OfficerJohn Hecht - Managing DirectorJake Kooyman - Equity Research AssociateJoseph Vafi - Managing Director, Equity Research Conference Call Participants Pete Christiansen - Equity Research AnalystDavid Scharf - Analyst Operator Greetings, and welc ...

Financial Data and Key Metrics Changes - Revenue grew by 18% year over year, reaching an annualized run rate of nearly $1,200,000,000 [7] - Fee revenue less production costs (FRLPC) increased by 26%, reaching an annualized run rate of over $460,000,000 [7] - Adjusted EBITDA doubled year over year to an annualized equivalent of approximately $320,000,000 [7] - Achieved positive GAAP net income of $8,000,000, marking the first quarter of profitability as a public company [7][27] - Operating income rose to $48,000,000, up more than five times year over year [27] Business Line Data and Key Metrics Changes - Personal loans volume grew by 17% from year-ago levels, with stable application conversion rates at approximately 1% [25] - Auto loans volumes increased nearly 50% sequentially, reaching an annualized run rate of over $1,100,000,000 [19] - Point of sale lending remains robust, with expectations for continued growth as partnerships expand [20] Market Data and Key Metrics Changes - Network volume was $2,400,000,000, slightly below guidance due to lower SFR volume, but grew by 26% year over year excluding SFR [24] - The contribution of FRLPC from lending product fees rose to 77%, compared to 63% a year ago [26] Company Strategy and Development Direction - The company emphasizes a balanced and diversified growth strategy, focusing on profitable growth and efficient operations [6][10] - A commitment to responsible credit underwriting while driving consistent revenue and profitability is central to the company's strategy [14] - The introduction of proactive prescreen products aims to enhance value for lending partners and improve customer engagement [12][17] Management's Comments on Operating Environment and Future Outlook - Management acknowledges heightened macroeconomic uncertainty but remains focused on long-term growth and stability [10][11] - The company is well-positioned to navigate potential changes in consumer health and credit performance, with a diversified funding mechanism [11] - Future guidance reflects cautious optimism, with expectations for continued growth in personal loans and auto lending, offset by a decrease in SFR volume [34] Other Important Information - The company raised $800,000,000 in April for personal loan and auto loan ABS programs, demonstrating strong capital efficiency [13][32] - The balance sheet is robust, with $230,000,000 in cash and $760,000,000 in investments in loans and securities as of March 31 [33] Q&A Session Summary Question: How does the company position itself for economic uncertainty at the product level? - Management emphasizes building a long-term business that balances growth and profitability, with a focus on responsible credit underwriting and diversified funding [39][41] Question: What is the scaling potential of the prescreen product? - The prescreen product is expected to significantly lower acquisition costs for partners, enhancing customer growth and engagement [50][53] Question: What are the key drivers behind the addressable markets of personal loans, auto, and POS? - The company aims to enhance customer acquisition and retention through advanced data analytics and seamless lending experiences across all three markets [60][62] Question: What is the outlook for fair value adjustments moving forward? - Management indicates that fair value adjustments will reflect the ongoing performance of the portfolio, with expectations for stability in the coming quarters [72][77] Question: What is the current state of the ABS market and any changes in pricing? - The company notes that while spreads have widened recently, it remains well-positioned to manage pricing and maintain profitability [84][86]

Financial Data and Key Metrics Changes - Revenue grew by 18% year over year, reaching an annualized run rate of nearly $1,200,000,000 [6] - Fee revenue less production costs (FRLPC) increased by 26%, reaching an annualized run rate of over $460,000,000 [6] - Adjusted EBITDA grew by 100% to an annualized equivalent of approximately $320,000,000 [6] - Achieved positive GAAP net income of $8,000,000, marking the first quarter of profitability as a public company [6][26] - Operating income increased to $48,000,000, up more than five times year over year [26] Business Line Data and Key Metrics Changes - Personal loans volume grew by 17% from year-ago levels, with stable application conversion rates at approximately 1% [24] - Auto loans volumes increased nearly 50% sequentially, with an annualized run rate exceeding $1,100,000,000 [19] - Point of sale lending remains robust, with expectations for continued growth in this segment [19] Market Data and Key Metrics Changes - Network volume was $2,400,000,000, slightly below guidance due to lower SFR volume, but grew by 26% year over year excluding SFR [23] - FRLPC as a percentage of network volume rose by 100 basis points year over year to 4.8% [25] - The contribution of lending product fees increased to 77% in the quarter compared to 63% a year ago [25] Company Strategy and Development Direction - The company is focused on responsible and profitable growth, balancing growth with profitability [14][15] - Emphasis on leveraging unique data advantages and investments in products to add value to lending partners [14] - The introduction of proactive prescreen products aims to enhance the value proposition for lending partners [12] Management's Comments on Operating Environment and Future Outlook - Management acknowledges heightened macroeconomic uncertainty but remains committed to a prudent growth strategy [10][11] - The company is well-positioned to navigate potential changes in consumer health and credit performance [11] - Full-year guidance reflects momentum and resilience, with expectations for continued growth in personal loans and auto lending [33] Other Important Information - The company raised $800,000,000 in April for personal loan and auto loan ABS programs, demonstrating strong capital efficiency [13] - The balance sheet is anchored by $230,000,000 in cash and $760,000,000 in investments in loans and securities [32] - The company does not plan to raise equity capital in the foreseeable future, indicating a self-funded business model [31][32] Q&A Session Summary Question: How does the company position itself for economic variability at the product level? - Management emphasizes building a long-term business that balances growth and profitability, with a focus on responsible credit underwriting and diversified funding mechanisms [39][40][44] Question: How should prescreening be viewed in terms of scaling and impact on volumes? - Prescreening is expected to significantly lower acquisition costs and enhance customer engagement, contributing positively to the personal loans business [51][52] Question: What are the key drivers behind the addressable markets of personal loans, auto, and POS? - The company aims to enhance customer acquisition and retention through improved marketing strategies and seamless lending experiences across all three markets [60][62]

PAGAYA TECHNOLOGIES LTD. 1Q'25 Earnings Supplement May 7, 2025 1 Forward Looking Statements and Non-GAAP Information Certain comments made in this presentation may be characterized as forward looking under the Private Securities Litigation Reform Act of 1995. Forward looking statements are based on the Company's current assumptions regarding future business and financial performance. Those statements by their nature address matters that are uncertain to different degrees. Those statements involve a number o ...

PAGAYA Q1 Letter to Shareholders Gal Krubiner | Co-founder and CEO Q1 Financial Highlights $2.4B Network volume was flat year-over-year at $2.4 billion, vs. guidance of $2.5 - $2.7 billion, the shortfall attributable to lower SFR volume, due to our focus on profitable growth. Excluding SFR, total volume grew by 26% year-over-year and 6% quarter-over- quarter in line with our plan. $290M Record total revenue and other income of $290 million compared to our outlook of $280M - $295M and grew 18% year-over-year ...

Pagaya Technologies Ltd. (PGY) closed the last trading session at $11.21, gaining 5.2% over the past four weeks, but there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. The mean price target of $22.56 indicates a 101.3% upside potential.The mean estimate comprises nine short-term price targets with a standard deviation of $7.24. While the lowest estimate of $12.50 indicates an 11.5% increase from the current price level, the most optimisti ...

Core Viewpoint - Momentum investing focuses on "buying high and selling higher" rather than traditional "buying low and selling high" strategies, aiming for quicker profits [1] Group 1: Momentum Investing Characteristics - Momentum investing can be risky as stocks may lose momentum if their valuations exceed future growth potential, leading to potential losses for investors [2] - A safer approach involves investing in bargain stocks that exhibit recent price momentum, utilizing tools like the Zacks Momentum Style Score to identify such opportunities [3] Group 2: Pagaya Technologies Ltd. (PGY) Analysis - Pagaya Technologies Ltd. (PGY) has shown a four-week price change of 5.2%, indicating growing investor interest [4] - Over the past 12 weeks, PGY's stock has gained 20.8%, with a high beta of 5.89, suggesting significant price movement compared to the market [5] - PGY has a Momentum Score of A, indicating a favorable entry point for investors looking to capitalize on its momentum [6] Group 3: Earnings Estimates and Valuation - PGY has received upward revisions in earnings estimates, earning a Zacks Rank 2 (Buy), which typically attracts more investor interest and drives price increases [7] - The stock is currently trading at a Price-to-Sales ratio of 0.82, suggesting it is undervalued, as investors pay only 82 cents for each dollar of sales [7] Group 4: Additional Investment Opportunities - Besides PGY, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, presenting further investment opportunities [8] - Investors can explore over 45 Zacks Premium Screens tailored to different investing styles to identify potential winning stocks [9]

The Finance group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Pagaya Technologies Ltd. (PGY) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? A quick glance at the company's year-to-date performance in comparison to the rest of the Finance sector should help us answer this question.Pagaya Technologies Ltd. is one of 858 companies in the Finance gro ...

Pagaya Technologies Ltd. (PGY) could be a solid addition to your portfolio given its recent upgrade to a Zacks Rank #2 (Buy). This rating change essentially reflects an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the ...