Financial Data and Key Metrics Changes - Network volume for Q1 2023 was $1.85 billion, a 12% increase year-over-year, driving total revenue and other income to $187 million, which is 9% higher than last year [28] - Adjusted EBITDA for the quarter was $2 million, with a like-for-like improvement of $14 million sequentially compared to Q1 2022, excluding the impact of the Darwin acquisition [28][89] - The FRLPC margin declined to 2.7% in Q1, below the target of 3% to 4%, but is expected to increase above 3% in Q2 2023 [24][36] Business Line Data and Key Metrics Changes - Application volume for the auto business grew by 51% year-over-year, supported by a large bank onboarded in 2022, with network volume for that partner increasing by 4x since its first quarter on the network [19][50] - Approximately 26% of total origination volumes from the top three personal loan partners were created using the company's network, up from 10% in Q1 2021 [19] Market Data and Key Metrics Changes - The company raised over $16 billion in funding across all financial vehicles since 2020, maintaining a robust funding capability even during market dislocations [20] - The company became the top issuer of personal loan ABS in the U.S. in Q1 2023, holding over 30% market share [29] Company Strategy and Development Direction - The company aims to reach $25 billion in network volume and $1 billion in fee revenues by enhancing value for existing partners, adding new partners, and achieving a 3% to 4% FRLPC margin [30][50] - The acquisition of Darwin is expected to enhance the company's SFR platform and contribute meaningfully to business growth in the future [89] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to execute through volatility and emphasized a focus on sustainable profitable growth [16][36] - The company is maintaining its full-year guidance due to uncertainties in the macro environment, despite exceeding expectations in Q1 [76][93] Other Important Information - AI integration fees grew by 230 basis points from 5.5% to 7.8% of network volume, reflecting the company's ability to monetize its network effectively [29][35] - The company has onboarded two major asset managers to its network, strengthening relationships with long-term funding investors [29] Q&A Session Summary Question: What is the trajectory of application demand from new platforms? - Management indicated that new partnerships typically start with low application volumes but can grow significantly over time as relationships develop [9][10] Question: How does the company plan to utilize the recent capital raise? - The capital raise is intended to provide resources for potential M&A transactions and to support growth initiatives [4][91] Question: What is the outlook for the conversion rate? - Management believes the conversion rate has bottomed out and expects it to improve as market conditions stabilize [60] Question: How does the company view the impact of regional bank challenges? - The company sees opportunities to utilize its technology to help banks and credit unions improve their funding positions [78] Question: What is the expected normal percentage of partner volume in a more normalized environment? - Management discussed the importance of integration and the potential for continued growth in partner volume, suggesting that the trend is upward [79][97]

Management's Discussion and Analysis of Financial Condition and Results of Operations [Company Overview](index=1&type=section&id=Company%20Overview) Pagaya's AI and data network connects financial service providers, customers, and investors, enhancing creditworthiness and expanding financial product access - Pagaya utilizes an AI and data network to enhance financial product accessibility and improve creditworthiness assessments, addressing outdated manual processes in the financial services industry[3](index=3&type=chunk)[4](index=4&type=chunk) - The company's solution benefits Partners by increasing customer application approvals, driving revenue growth, and reducing customer acquisition costs; benefits customers through enhanced access to financial products; and benefits investors by providing exposure to AI-originated assets[5](index=5&type=chunk) [Recent Developments](index=1&type=section&id=Recent%20Developments) Pagaya acquired Darwin Homes, reduced workforce by 20% for $30M savings, extended a key agreement, and plans a $75M preferred share issuance - Pagaya completed the acquisition of Darwin Homes, Inc. on January 5, 2023, making Darwin a wholly-owned subsidiary[7](index=7&type=chunk)[8](index=8&type=chunk) - On January 18, 2023, Pagaya announced a workforce reduction of approximately **20%** across its Israel and U.S. offices, expecting to achieve approximately **$30 million** in annualized cost savings[9](index=9&type=chunk)[10](index=10&type=chunk) - The Letter Agreement with Radiance Star Pte. Ltd. was extended by three years to June 1, 2028, maintaining the same terms, including the issuance of **2,640,000 warrants**[11](index=11&type=chunk) - Pagaya entered into a Preferred Share Purchase Agreement on April 14, 2023, to issue and sell **60,000,000 Series A Preferred Shares** for an aggregate purchase price of **$75 million** to Oak HC/FT Partners V, L.P. and its affiliates, pending shareholder approval[12](index=12&type=chunk)[14](index=14&type=chunk) [Emerging Growth Company Status](index=3&type=section&id=Emerging%20Growth%20Company%20Status) Pagaya qualifies as an 'emerging growth company' under the JOBS Act, benefiting from reporting exemptions and electing an extended transition for new accounting standards - Pagaya qualifies as an 'emerging growth company' under the JOBS Act, benefiting from exemptions including auditor attestation requirements and reduced executive compensation disclosures[18](index=18&type=chunk) - The company has elected not to opt out of the extended transition period for new or revised financial accounting standards, meaning it will adopt them at the same time as private companies, which may impact comparability with other public companies[19](index=19&type=chunk) - Pagaya will remain an emerging growth company until the earlier of: (i) the last day of the fiscal year following the fifth anniversary of June 22, 2022, (ii) annual total gross revenue of at least **$1.235 billion**, (iii) being deemed a large accelerated filer (market value of ordinary equity held by non-affiliates exceeds **$700 million**), or (iv) issuing more than **$1 billion** in non-convertible debt securities during the prior three-year period[20](index=20&type=chunk) [Foreign Private Issuer Exemptions](index=3&type=section&id=Foreign%20Private%20Issuer%20Exemptions) As a 'foreign private issuer,' Pagaya benefits from distinct SEC reporting requirements, including less frequent filings and exemptions from Regulation FD and Section 16 - Pagaya reports as a 'foreign private issuer' under U.S. SEC rules, allowing it to file annual reports on Form 20-F within **120 days** after the fiscal year-end and furnish reports on Form 6-K for certain disclosures[22](index=22&type=chunk) - The company is exempt from Regulation FD, SEC rules on proxy solicitation, and Section 16 reporting and 'short-swing' profit recovery provisions for its officers, directors, and principal shareholders[22](index=22&type=chunk) [Our Economic Model](index=4&type=section&id=Our%20Economic%20Model) Pagaya's economic model is driven by Network Volume, generating revenue from AI and contract fees, interest, and investments, with Production Costs tied to volume and significant R&D - Pagaya's primary revenue source is Network Volume, which consists of assets originated by Partners with AI assistance and acquired by Financing Vehicles[24](index=24&type=chunk) - Revenue streams include Network AI fees (AI integration and capital markets execution fees), contract fees (management, performance), interest income from risk retention holdings, and investment income[24](index=24&type=chunk)[25](index=25&type=chunk)[26](index=26&type=chunk) - Production Costs, which compensate Partners for asset acquisition and origination, are highly correlated to Network Volume. Other significant expenses include headcount, technology overhead, and research and development[27](index=27&type=chunk)[28](index=28&type=chunk) [Key Factors Affecting Our Performance](index=4&type=section&id=Key%20Factors%20Affecting%20Our%20Performance) Pagaya's performance is shaped by partner retention, new partner adoption, AI advancements, funding availability, asset performance, and macroeconomic conditions - Pagaya has retained **100%** of its Partners since inception in 2016, with Partners experiencing approximately **3 times growth** in network-enabled originations between the 3rd and 12th month of onboarding[30](index=30&type=chunk) - In 2022, Pagaya onboarded **6 new Partners**, including Klarna and Ally Financial, which contributed approximately **$650 million** of Network Volume in 2022 and **20%** of total Network Volume in Q1 2023[31](index=31&type=chunk) - Improvements to Pagaya's AI technology benefit from a flywheel effect, with a continually increasing base of training data. Since inception, approximately **$1.3 trillion** in application volume has been evaluated by the network[33](index=33&type=chunk) - The availability of funding from investors is critical, with approximately **$16 billion** raised since 2019, but is subject to market conditions and the performance of AI-originated assets[35](index=35&type=chunk)[36](index=36&type=chunk) - Macroeconomic conditions (e.g., rising interest rates, inflation, bank failures) can impact consumer demand, Partner origination ability, funding availability, and operating costs, though they also provide data for AI improvement[37](index=37&type=chunk) [Key Operating Metrics](index=6&type=section&id=Key%20Operating%20Metrics) Network Volume is Pagaya's key operating metric, directly influencing revenue and reflecting scale, increasing **12%** year-over-year to **$1.85 billion** in Q1 2023 - Network Volume is considered a key operating metric, serving as a proxy for overall scale and reach, directly influencing revenue generation[41](index=41&type=chunk) Network Volume (Three Months Ended March 31) | Metric | 2023 ($ in millions) | 2022 ($ in millions) | % Change | | :------------- | :------------------- | :------------------- | :------- | | Network Volume | $1,850 | $1,650 | 12% | [Components of Results of Operations](index=6&type=section&id=Components%20of%20Results%20of%20Operations) Pagaya's results include network AI, contract, interest, and investment income, offset by Production, R&D, sales, and G&A expenses, with other income/loss and noncontrolling interests impacting net income - Revenue is generated from network AI fees (AI integration and capital markets execution), contract fees (administration, management, performance), interest income from risk retention holdings and cash balances, and investment income from ownership interests in Financing Vehicles[43](index=43&type=chunk)[44](index=44&type=chunk)[45](index=45&type=chunk)[46](index=46&type=chunk) - Costs and operating expenses include Production Costs (primarily for asset transfer from Partners to Financing Vehicles), research and development (for network and AI technology), sales and marketing (for Partner and investor management), and general and administrative (for executive, finance, legal, and administrative functions)[47](index=47&type=chunk)[48](index=48&type=chunk)[50](index=50&type=chunk)[51](index=51&type=chunk)[52](index=52&type=chunk) - Other Income (loss), net, primarily consists of changes in the fair value of warrant liabilities and non-recurring items like impairment of investments. Income tax expense is affected by Israeli tax benefits and the geographical mix of taxable income. Net income attributable to noncontrolling interests accounts for the portion of consolidated VIEs' net income not attributable to Pagaya[53](index=53&type=chunk)[54](index=54&type=chunk)[55](index=55&type=chunk) [Results of Operations - Three Months Ended March 31, 2023 and 2022](index=7&type=section&id=Results%20of%20Operations) Pagaya's Q1 2023 net loss increased to **$(61.0) million**, driven by higher Production Costs and a significant credit-related impairment, despite **9%** revenue growth Key Financial Results (Three Months Ended March 31) | Metric | 2023 ($ in thousands) | 2022 ($ in thousands) | Change ($ in thousands) | % Change | | :----------------------------------------- | :-------------------- | :-------------------- | :---------------------- | :------- | | Total Revenue and Other Income | 186,638 | 170,534 | 16,104 | 9% | | Total Costs and Operating Expenses | 211,614 | 180,546 | 31,068 | 17% | | Operating Income (Loss) | (24,976) | (10,012) | (14,964) | (149)% | | Other income (loss), net | (66,980) | 313 | (67,293) | NM | | Net Loss Attributable to Pagaya Tech Ltd. | (60,971) | (18,272) | (42,699) | (234)% | | Basic and Diluted Net Loss Per Share | (0.09) | (0.12) | 0.03 | 25% | - Revenue from fees increased by **$16.9 million (11%)** to **$175.3 million**, driven by a **$9.4 million** increase in Network AI fees due to **12% growth** in Network Volume, and a **$7.5 million** increase in contract fees[62](index=62&type=chunk) - Production costs increased by **$32.8 million (36%)** to **$125.1 million**, primarily due to growth in Network Volume and changes in asset class composition[67](index=67&type=chunk) - Other income (loss), net, shifted from a **$0.3 million income** to a **$67.0 million loss**, mainly due to a **$68.3 million net credit-related impairment loss** on certain investments[72](index=72&type=chunk) - Net income attributable to noncontrolling interests decreased by **$46.4 million (530%)** to a loss of **$(37.7) million**, driven by net losses in consolidated VIEs associated with risk retention holdings, including a **$41.9 million credit-related impairment loss**[74](index=74&type=chunk) [Reconciliation of Non-GAAP Financial Measures](index=12&type=section&id=Reconciliation%20of%20Non-GAAP%20Financial%20Measures) Pagaya uses Adjusted Net Income (Loss) and Adjusted EBITDA as non-GAAP measures to show ongoing operations and profitability, with both metrics decreasing in Q1 2023 - Adjusted Net Income (Loss) and Adjusted EBITDA are non-GAAP measures used to highlight results from ongoing operations and underlying profitability, excluding non-cash or unpredictable items[76](index=76&type=chunk)[80](index=80&type=chunk)[81](index=81&type=chunk) Adjusted Non-GAAP Financial Measures (Three Months Ended March 31) | Metric | 2023 ($ in thousands) | 2022 ($ in thousands) | | :----------------------- | :-------------------- | :-------------------- | | Adjusted Net Income (Loss) | (11,015) | 4,106 | | Adjusted EBITDA | 2,048 | 4,397 | - Adjusted Net Income (Loss) decreased from **$4.1 million** in Q1 2022 to **$(11.0) million** in Q1 2023, while Adjusted EBITDA decreased from **$4.4 million** to **$2.0 million** over the same period[79](index=79&type=chunk) [Liquidity and Capital Resources](index=13&type=section&id=Liquidity%20and%20Capital%20Resources) Pagaya faces net losses and a deficit, with cash at **$316.8 million**, but expects sufficient liquidity for **12 months** via existing cash, a **$167.5 million** credit facility, **$300 million** equity financing, and a **$75 million** preferred share agreement Liquidity Overview | Metric | March 31, 2023 ($ in millions) | December 31, 2022 ($ in millions) | | :---------------------- | :----------------------------- | :-------------------------------- | | Net Loss (attributable) | (61.0) | (18.3) | | Accumulated Deficit | 475.2 | 414.2 | | Cash, Cash Equivalents | 316.8 | 337.1 | | Shareholders' Equity | 527.9 | N/A | - Pagaya's primary liquidity requirements are to finance risk retention, invest in R&D, and attract/retain employees, with strategic investments planned to support business growth[87](index=87&type=chunk) - The company expects existing cash and PIPE investment proceeds to be sufficient for working capital and capital expenditures for at least the next **12 months**, but acknowledges risks from market conditions and access to funding[88](index=88&type=chunk)[89](index=89&type=chunk) - Pagaya has access to a **$167.5 million Revolving Credit Facility**, a committed equity financing agreement with B. Riley Principal Capital II for up to **$300 million** in Class A Ordinary Shares, and a **$75 million Series A Preferred Share Purchase Agreement** to raise additional capital[90](index=90&type=chunk)[96](index=96&type=chunk)[102](index=102&type=chunk) - The likelihood of warrant holders exercising their warrants for cash is dependent on the market price of Class A Ordinary Shares exceeding **$11.50 per share**, with potential proceeds of up to **$169.6 million**[93](index=93&type=chunk)[94](index=94&type=chunk) [Cash Flow](index=15&type=section&id=Cash%20Flow) Pagaya's Q1 2023 saw increased net cash used in operating activities by **$20.9 million** and investing activities by **$55.7 million**, offset by a **$74.0 million** increase in net cash from financing Summarized Consolidated Cash Flow (Three Months Ended March 31) | Activity | 2023 ($ in thousands) | 2022 ($ in thousands) | Change ($ in thousands) | % Change | | :---------------------------- | :-------------------- | :-------------------- | :---------------------- | :------- | | Net cash used in operating | (23,673) | (2,823) | (20,850) | (739)% | | Net cash used in investing | (99,665) | (43,918) | (55,747) | (127)% | | Net cash provided by financing | 103,024 | 29,042 | 73,982 | 255% | - The increase in net cash used in operating activities was mainly due to an **$89.1 million increase in net loss**, partially offset by a **$71.0 million increase in non-cash charges**, primarily a credit impairment[105](index=105&type=chunk) - The increase in net cash used in investing activities was primarily due to a **$47.7 million increase** in the purchase of investments in loans and securities[107](index=107&type=chunk) - The increase in net cash provided by financing activities was driven by an **$80.0 million increase** in proceeds from the revolving credit facility and a **$19.0 million increase** related to noncontrolling interests, partially offset by a **$26.9 million decrease** from secured borrowing[108](index=108&type=chunk) [Indebtedness](index=16&type=section&id=Indebtedness) Pagaya's indebtedness includes a **$167.5 million** Revolving Credit Facility, with **$95.0 million** drawn and continued access post-SVB closure, plus **5%** credit risk retention in securitization vehicles - Pagaya entered into a **3-year Senior Secured Revolving Credit Facility** for an initial principal amount of **$167.5 million** on September 2, 2022[110](index=110&type=chunk) - As of March 31, 2023, **$95.0 million** was drawn, **$20.0 million** in letters of credit were issued, and **$52.5 million** of borrowing capacity remained available under the Revolving Credit Facility, with Pagaya in compliance with all covenants[116](index=116&type=chunk) - Following the closure of Silicon Valley Bank (SVB) in March 2023, the Credit Agreement obligations were transferred to Silicon Valley Bridge Bank, National Association (SVBBNA), ensuring continued access to the facility[116](index=116&type=chunk)[117](index=117&type=chunk)[119](index=119&type=chunk) - Pagaya sponsors securitization vehicles to purchase loans from Partners and retains at least **5%** of the credit risk of issued securities to comply with risk retention regulatory requirements[121](index=121&type=chunk) [Recent Accounting Pronouncements](index=17&type=section&id=Recent%20Accounting%20Pronouncements) The adoption of ASU No. 2016-13 (Topic 326) regarding credit losses on financial instruments did not materially impact Pagaya's consolidated financial statements - The adoption of ASU No. 2016-13 (Topic 326), related to credit losses on financial instruments, did not materially impact Pagaya's consolidated financial statements[123](index=123&type=chunk) [Critical Accounting Policies and Estimates](index=17&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) Detailed information on Pagaya's significant accounting policies and their effects on financial condition and results of operations is available in the Annual Report on Form 20-F - Detailed information on Pagaya's significant accounting policies and their effects on financial condition and results of operations can be found in the audited consolidated financial statements in the Annual Report on Form 20-F[125](index=125&type=chunk) [Quantitative and Qualitative Discussions of Market Risk](index=17&type=section&id=Quantitative%20and%20Qualitative%20Discussions%20of%20Market%20Risk) Pagaya is exposed to credit, liquidity, and interest rate risks through investments and securitization markets, with no material changes in market risk exposure as of March 31, 2023 - Pagaya is exposed to market risks, including credit, liquidity, and interest rate risks, through investments in loans and securities and access to securitization markets[127](index=127&type=chunk) - As of March 31, 2023, there have been no material changes in the company's exposure to market risk compared to December 31, 2022[127](index=127&type=chunk)

[Introduction](index=5&type=section&id=INTRODUCTION) Introduces Pagaya Technologies Ltd., clarifying the report's reliance on statistical data and management estimates, subject to inherent uncertainties - References to 'we,' 'us,' 'our,' 'our business,' 'the Company,' and 'Pagaya' refer to Pagaya Technologies Ltd. and its consolidated subsidiaries[23](index=23&type=chunk) - The Annual Report includes statistical, market, and industry data from publicly available information and independent industry publications, as well as estimates, projections, and forecasts prepared by management, all of which are subject to inherent uncertainties and risks[24](index=24&type=chunk) [Selected Definitions](index=5&type=section&id=SELECTED%20DEFINITIONS) Provides a glossary of key terms and acronyms used throughout the annual report, essential for understanding the company's operations, financial instruments, and regulatory context - Network Capital refers to the total capital currently invested in assets originated by Partners with the assistance of Pagaya's AI technology and network, plus capital committed by asset investors available for new asset acquisition[59](index=59&type=chunk) - Network Volume refers to the gross dollar amount of assets originated by Partners with the assistance of Pagaya's AI technology and acquired by Financing Vehicles[60](index=60&type=chunk) - Partners are financial institutions (banks, peer-to-peer lending networks, online marketplaces, non-bank finance companies, fintechs, etc.) that utilize Pagaya's AI technology and network to assist in creating and originating credit and other assets[72](index=72&type=chunk) - Financing Vehicles include funds managed or advised by Pagaya or its affiliates, securitization vehicles sponsored or administered by Pagaya or its affiliates, and other similar vehicles[52](index=52&type=chunk) [Special Note Regarding Forward-Looking Statements](index=12&type=section&id=SPECIAL%20NOTE%20REGARDING%20FORWARD-LOOKING%20STATEMENTS) Highlights that the report contains forward-looking statements subject to substantial risks and uncertainties, cautioning readers not to rely solely on them - Forward-looking statements include expectations concerning business outlook, productivity, operational improvements, capital investments, market conditions, economic performance, and future financial performance[92](index=92&type=chunk) - Important factors that could cause actual results to differ materially include changes in interest rates, market conditions, capital availability, AI technology performance, competition, regulatory changes, and the ability to retain key employees[95](index=95&type=chunk)[97](index=97&type=chunk) - The company undertakes no obligation to revise forward-looking statements to reflect future events, changes in circumstances, or changes in beliefs, except as required by law[96](index=96&type=chunk) [Risk Factor Summary](index=15&type=section&id=RISK%20FACTOR%20SUMMARY) Summarizes the principal risks that could significantly and negatively affect Pagaya's business, prospects, financial conditions, or operating results - Key operational risks include rapid growth, potential adverse impacts from a recent workforce reduction, heavy dependence on AI technology, reliance on a limited number of Partners, and challenges in raising capital from asset investors[100](index=100&type=chunk) - Economic conditions such as interest rates, rising inflation, and instability in the banking system can adversely affect the business and the performance of Financing Vehicles, especially since AI technology has not been extensively tested during economic down-cycles[100](index=100&type=chunk)[101](index=101&type=chunk) - Technological and data-related risks involve the inability to continuously improve AI technology, potential for unintentional bias or discrimination in AI, difficulties in protecting intellectual property, and reliance on Partners' borrower data and third-party data[101](index=101&type=chunk)[102](index=102&type=chunk) - Regulatory and legal risks include potential litigation, regulatory actions, consumer complaints, compliance issues, challenges to the 'true lender' status of Partners, and the evolving political and regulatory framework for AI technology[102](index=102&type=chunk) - Risks specific to Single Family Rental (SFR) operations include challenges in integrating Darwin Homes, dependence on general economic and real estate conditions, and issues related to tenant selection, defaults, and compliance with rental laws[102](index=102&type=chunk) [Part I](index=19&type=section&id=PART%20I) Provides comprehensive information about Pagaya, including key details, risk factors, business overview, operational and financial review, and corporate information [Item 1. Identity of Directors, Senior Management and Advisers](index=19&type=section&id=Item%201.%20Identity%20of%20Directors,%20Senior%20Management%20and%20Advisers) States that information regarding the identity of directors, senior management, and advisers is not applicable for this report - Item 1 is marked 'Not applicable'[105](index=105&type=chunk) [Item 2. Offer Statistics and Expected Timetable](index=19&type=section&id=Item%202.%20Offer%20Statistics%20and%20Expected%20Timetable) States that information regarding offer statistics and expected timetable is not applicable for this report - Item 2 is marked 'Not applicable'[106](index=106&type=chunk) [Item 3. Key Information](index=19&type=section&id=Item%203.%20Key%20Information) Provides crucial information about the company, including its capitalization, indebtedness, and a comprehensive discussion of risk factors [A. [Reserved]](index=19&type=section&id=3.A.%20%5BReserved%5D) States that sub-item A is reserved and not applicable - Sub-item A is marked 'Not applicable'[107](index=107&type=chunk) [B. Capitalization and Indebtedness](index=19&type=section&id=3.B.%20Capitalization%20and%20Indebtedness) States that sub-item B is not applicable for this report - Sub-item B is marked 'Not applicable'[108](index=108&type=chunk) [C. Reasons for the Offer and Use of Proceeds](index=19&type=section&id=3.C.%20Reasons%20for%20the%20Offer%20and%20Use%20of%20Proceeds) States that sub-item C is not applicable for this report - Sub-item C is marked 'Not applicable'[109](index=109&type=chunk) [D. Risk Factors](index=19&type=section&id=3.D.%20Risk%20Factors) Discusses various risk factors that could significantly and negatively affect Pagaya's business, operations, and financial performance Net Losses Attributable to Pagaya Technologies Ltd. | Year | Net Loss (in millions) | | :--- | :--------------------- | | 2022 | $(302.3) | | 2021 | $(91.2) | - The company is a rapidly growing company with a relatively limited operating history, making future performance predictions difficult and exposing it to increased risks and uncertainties[113](index=113&type=chunk)[114](index=114&type=chunk) - A **20% workforce reduction** was announced on January 18, 2023, to streamline operations and achieve near-to-medium term priorities, but it may not result in anticipated savings or efficiencies and could disrupt business[121](index=121&type=chunk)[122](index=122&type=chunk) - The business is highly dependent on its AI technology; if it fails to improve, contains errors, or is ineffective, it could adversely affect growth prospects, business, financial condition, and results of operations[139](index=139&type=chunk) - A significant portion of revenue relies on a limited number of Partners, and the ability to raise capital from asset investors at competitive rates is a vital component of the products offered[142](index=142&type=chunk)[145](index=145&type=chunk) - Expansion into new markets like real estate and credit cards carries substantial risks, as the AI technology has not been extensively tested in these areas and may not perform as well as in existing consumer markets[154](index=154&type=chunk)[157](index=157&type=chunk) - The industry is highly competitive, with larger competitors possessing more diversified products, broader Partner/investor bases, and lower-cost funding, which could lead to price reductions, reduced margins, or loss of revenues for Pagaya[161](index=161&type=chunk)[162](index=162&type=chunk)[163](index=163&type=chunk) - Regulators, such as the CFPB and FTC, have expressed concerns that certain AI technology may lead to unintentional bias or discrimination in automated credit analysis, potentially subjecting the company to legal or regulatory liability and reputational harm[206](index=206&type=chunk)[207](index=207&type=chunk) - The dual-class structure of Pagaya Ordinary Shares concentrates voting power with the Founders (approximately **77.6%** of the total voting power as of March 31, 2023), effectively limiting other shareholders' ability to influence important determinations and transactions[268](index=268&type=chunk)[269](index=269&type=chunk) - The company and its Partners are subject to a variety of complex federal, state, and local laws related to consumer protection, lending, data protection, and investment advisory services; non-compliance could result in regulatory action, litigation, or monetary payments[277](index=277&type=chunk)[279](index=279&type=chunk) - There is a risk that obligations originated by Partners utilizing Pagaya's network could be successfully challenged on the basis that the Partner was not the 'true lender,' potentially rendering such obligations unenforceable or subjecting the company to penalties[314](index=314&type=chunk)[319](index=319&type=chunk) - The company's operations in Israel expose it to risks related to political, economic, and military conditions in the region, as well as potential disruptions from military reserve duty for employees and differences in Israeli corporate law[342](index=342&type=chunk)[347](index=347&type=chunk)[348](index=348&type=chunk) - The price of Class A Ordinary Shares and public warrants has been and may continue to be volatile due to various factors, including market and industry changes, analyst comments, and actions by shareholders or short sellers[370](index=370&type=chunk)[373](index=373&type=chunk)[375](index=375&type=chunk) - Future issuances of Class A Ordinary Shares, including under equity incentive plans or through committed equity financing, could dilute the interest of existing shareholders and potentially reduce the market price of the shares

Exhibit 10.1 Execution Version PREFERRED SHARES PURCHASE AGREEMENT This PREFERRED SHARES PURCHASE AGREEMENT (this "Agreement") is entered into on April 14, 2023, by and between Pagaya Technologies Ltd., a company organized under the laws of Israel ("Pagaya" or the "Company"), Oak HC/FT Partners V, L.P., Oak HC/FT Partners V-A, L.P. and Oak HC/FT Partners V-B, L.P (together, the "Investor"). WHEREAS, subject to the terms and conditions set forth in this Agreement and pursuant to Section 4(a)(2) of the Securi ...

Start Time: 08:30 January 1, 0000 9:15 AM ET Pagaya Technologies Ltd. (NASDAQ:PGY) Q4 2022 Earnings Conference Call February 15, 2023, 08:30 AM ET Company Participants Gal Krubiner - CEO Michael Kurlander - CFO Jency John - Head of IR Conference Call Participants Rayna Kumar - UBS Eugene Simuni - MoffettNathanson Hal Goetsch - Loop Capital Joseph Vafi - Canaccord Genuity Operator Good day, and welcome to the Pagaya Q4 and Full Year 2022 Earnings Call. At this time, all participants are in a listen-only mode ...

Disclaimer Cautionary Note About Forward-Looking Statements 4Q & Full Year 2022 Results February 15, 2023 Unaudited Financial Results This document contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, that involve risks and uncertainties. These forward-looking statements generally are identified by the words "anticipate", "believe", "continue", "can," "could", "estimate", "expect", ...

[Executive Summary & Financial Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Financial%20Highlights) Pagaya reported strong financial performance for both the full year and fourth quarter of 2022, exceeding guidance and demonstrating resilience in a challenging credit environment [Full Year and Fourth Quarter 2022 Performance](index=1&type=section&id=Full%20Year%20and%20Fourth%20Quarter%202022%20Financial%20Highlights) Pagaya reported strong growth in Network Volume and Total Revenue for both Q4 and FY22, exceeding guidance, and achieved near break-even Adjusted EBITDA for the full year, though net loss was significantly impacted by share-based compensation Key Financial Highlights (FY22 vs. FY21, 4Q22 vs. 4Q21) | Metric | FY22 | FY21 | Change (YoY) | 4Q22 | 4Q21 | Change (YoY) | | :-------------------------------- | :----------- | :----------- | :----------- | :----------- | :----------- | :----------- | | Network Volume ($ billion) | $7.3 | - | 49% | $1.8 | - | 10% | | Total Revenue and Other Income ($ million) | $748.9 | $474.6 | 58% | $192.9 | $154.7 | 25% | | Net Loss Attributable to Pagaya Shareholders ($ million) | ($302.3) | ($91.2) | - | ($34.0) | ($10.5) | - | | Adjusted Net Loss ($ million) | ($32.7) | $37.3 | - | ($3.7) | $0.4 | - | | Adjusted EBITDA ($ million) | ($4.8) | $45.9 | - | ($9.0) | ($2.8) | - | - Net loss was significantly impacted by share-based compensation expense of **$241.7 million** in FY22 and **$18.7 million** in 4Q22[2](index=2&type=chunk)[20](index=20&type=chunk) [CEO Commentary](index=1&type=section&id=CEO%20Commentary%20on%202022%20Performance%20and%202023%20Outlook) CEO Gal Krubiner highlighted 2022 as a record year with significant revenue growth and network expansion, including new strategic partners, while navigating a challenging credit environment and aiming for sustainable profitability on an adjusted EBITDA basis in 2023 - 2022 was a record year for Pagaya, achieving over **$7 billion** in network volume and **58% revenue growth** to **$749 million**, approximately 7 times its 2020 revenue[1](index=1&type=chunk) - The company delivered near break-even adjusted EBITDA while operating in the most challenging credit and rate environment in its history, and strengthened its position by going public, onboarding large strategic partners (Visa, Klarna, a top 3 auto lender), and elevating its SFR offering with an acquisition[1](index=1&type=chunk) - For 2023, Pagaya will remain focused on driving further expansion and monetization of its network and achieving sustainable profitability on an adjusted EBITDA basis[1](index=1&type=chunk) [2022 Business Highlights & Strategic Initiatives](index=2&type=section&id=2022%20Business%20Highlights) Pagaya achieved significant network expansion, enhanced partner and investor outcomes through AI-driven insights, and demonstrated strong capital raising and operating efficiency throughout 2022 [Network Expansion & Product Development](index=2&type=section&id=Expanding%20the%20network) Pagaya expanded its network by adding 6 new partners in 2022, including a top 3 auto lender and Klarna, and enhanced its single-family rental (SFR) offering through the acquisition of Darwin Homes, creating a fully integrated property technology platform - Pagaya expanded its network by adding **6 partners** in 2022, including a top 3 auto lender and Klarna in the Company's point-of-sale product[7](index=7&type=chunk) - The Company's solution is now connected to approximately **20,000 franchise and independent auto dealerships**, with approximately **$110 billion** in auto application volume evaluated in 2022[7](index=7&type=chunk) - Pagaya expanded its single-family rental ("SFR") offering with the acquisition of Darwin Homes, creating a technologically sophisticated, fully integrated property technology platform[7](index=7&type=chunk) [Enabling Better Outcomes for Partners & Investors](index=2&type=section&id=Enabling%20better%20outcomes%20for%20partners%20%26%20investors) The company saw a 98% increase in applications evaluated in 2022, while proactively reducing its conversion ratio by nearly 50% year-over-year, optimizing for investor returns by shifting the portfolio to a more resilient borrower archetype - Continued strong application flow from existing and new partners, with over **53 million applications** evaluated in 2022, representing **98% growth** compared to the prior year[7](index=7&type=chunk) - With the benefit of AI-driven insights, the Company proactively reduced its conversion ratio by nearly **50% year-over-year**, optimizing for investor returns by shifting the portfolio to a more resilient borrower archetype[7](index=7&type=chunk) [Capital Raising & Operating Efficiency](index=2&type=section&id=Consistently%20raising%20capital) Pagaya raised over $7 billion in funding for financing vehicles in FY22 and improved its operating expense ratio from 43% in the first half of 2022 to 39% in the second half of 2022, demonstrating disciplined cost management - Raised over **$7 billion** in funding into financing vehicles in FY22[7](index=7&type=chunk) - The Company's operating expense ratio, defined as operating expenses excluding stock-based compensation expense as a percentage of total revenue & other income, declined from **43%** in the first half of 2022 to **39%** in the second half of 2022[7](index=7&type=chunk) [2023 Financial Outlook](index=2&type=section&id=2023%20Outlook) Pagaya provides its financial projections for both the first quarter and full year 2023, indicating continued growth in network volume and revenue, alongside a strategic move towards adjusted EBITDA profitability [First Quarter 2023 Outlook](index=2&type=section&id=2023%20Outlook%20-%20First%20Quarter) For the first quarter of 2023, Pagaya expects Network Volume between $1.7 billion and $1.8 billion, Total Revenue between $175 million and $180 million, and Adjusted EBITDA between negative $5 million and $0 First Quarter 2023 Financial Projections | Metric | Range | | :-------------- | :-------------------------------- | | Network Volume ($ billion) | Expected to range between $1.7 and $1.8 | | Total Revenue ($ million) | Expected to range between $175 and $180 | | Adjusted EBITDA ($ million) | Expected to range between negative $5 and $0 | [Full Year 2023 Outlook](index=2&type=section&id=2023%20Outlook%20-%20Full%20Year) For the full year 2023, the company projects Network Volume between $7.5 billion and $8.0 billion, Total Revenue between $775 million and $825 million, and Adjusted EBITDA between $10 million and $25 million, indicating a move towards profitability Full Year 2023 Financial Projections | Metric | Range | | :-------------- | :-------------------------------- | | Network Volume ($ billion) | Expected to range between $7.5 and $8.0 | | Total Revenue ($ million) | Expected to range between $775 and $825 | | Adjusted EBITDA ($ million) | Expected to range between $10 and $25 | [Company Information](index=2&type=section&id=Company%20Information) This section provides details on Pagaya's webcast for financial results and an overview of the company's mission and technological approach [Webcast Information](index=2&type=section&id=Webcast) Pagaya held a webcast and conference call on February 15, 2023, to discuss its financial results, with a live webcast available via its Investor Relations website and a replay available for 90 days - The Company held a webcast and conference call on **February 15, 2023**, at **8:30 a.m. Eastern Time**[5](index=5&type=chunk) - A live webcast of the call was available via the Investor Relations section of the Company's website at investor.pagaya.com, with a replay available for **90 days**[5](index=5&type=chunk)[6](index=6&type=chunk) [About Pagaya Technologies](index=2&type=section&id=About%20Pagaya%20Technologies) Pagaya Technologies is a global AI-driven financial technology company that leverages machine learning and a vast data network to provide comprehensive consumer credit and residential real estate solutions, aiming to expand access to life-changing financial products and services - Pagaya Technologies Ltd. is a global technology company delivering artificial intelligence infrastructure for the financial ecosystem, making life-changing financial products and services available to more people nationwide[1](index=1&type=chunk)[8](index=8&type=chunk) - The company uses machine learning, a vast data network, and a sophisticated AI-driven approach to provide comprehensive consumer credit and residential real estate solutions for its partners, their customers, and investors[8](index=8&type=chunk) - Pagaya's proprietary API and capital solutions integrate into its network of partners to deliver seamless user experiences and greater access to the mainstream economy, with offices in New York and Tel Aviv[8](index=8&type=chunk) [Legal & Financial Disclosures](index=3&type=section&id=Legal%20%26%20Financial%20Disclosures) This section outlines important legal disclaimers regarding forward-looking statements and provides detailed explanations of the non-GAAP financial measures used by Pagaya [Cautionary Note About Forward-Looking Statements](index=3&type=section&id=Cautionary%20Note%20About%20Forward-Looking%20Statements) This section warns that the document contains forward-looking statements subject to known and unknown risks and uncertainties, which may cause actual results to differ materially from projections, advising investors not to place undue reliance on these statements as the company assumes no obligation to update them - This document contains forward-looking statements that involve known and unknown risks, uncertainties, and other important factors that may cause the Company's actual results, performance, or achievements to be materially different from any future results, performance, or achievements expressed or implied[9](index=9&type=chunk) - Risks and uncertainties include factors relating to the Company's ability to attract new partners, maintain trust, sustain revenue growth, implement technology, funding arrangements, market interest rates, economic conditions, and litigation[9](index=9&type=chunk) - These forward-looking statements reflect the Company's views as of the date of the report, and investors should not place undue reliance on them, as the Company assumes no obligation and does not intend to update them[9](index=9&type=chunk) [Non-GAAP Financial Measures](index=3&type=section&id=Financial%20Information%3B%20Non-GAAP%20Financial%20Measures) Pagaya uses non-GAAP financial measures like Adjusted Net Income (Loss) and Adjusted EBITDA to provide additional insights into its financial performance, emphasizing ongoing operations and underlying profitability, while acknowledging their limitations compared to GAAP and recommending review in conjunction with GAAP measures - Management uses non-GAAP financial measures (Adjusted Net Income (Loss) and Adjusted EBITDA) to provide investors with additional information about financial performance and enhance understanding of results by highlighting ongoing operations and underlying profitability[10](index=10&type=chunk)[11](index=11&type=chunk)[15](index=15&type=chunk) - Non-GAAP financial measures have limitations as they have no standardized meaning prescribed by GAAP and may not be directly comparable to similarly titled measures used by other companies[11](index=11&type=chunk) - Management encourages investors to review financial information in its entirety, not to rely on any single financial measure, and to view Adjusted Net Income (Loss) and Adjusted EBITDA in conjunction with their respective related GAAP financial measures[11](index=11&type=chunk)[15](index=15&type=chunk) [Definition of Adjusted Net Income (Loss)](index=4&type=section&id=Definition%20of%20Adjusted%20Net%20Income%20%28Loss%29) Adjusted Net Income (Loss) excludes share-based compensation, changes in warrant liability fair value, and non-recurring business combination expenses - Adjusted Net Income (Loss) is defined as net income (loss) attributable to Pagaya Technologies Ltd.'s shareholders excluding share-based compensation expense, change in fair value of warrant liability, and non-recurring expenses associated with the business combination[12](index=12&type=chunk) [Definition of Adjusted EBITDA](index=4&type=section&id=Definition%20of%20Adjusted%20EBITDA) Adjusted EBITDA excludes share-based compensation, warrant liability fair value changes, non-recurring merger expenses, interest, depreciation, and income taxes - Adjusted EBITDA is defined as net income (loss) attributable to Pagaya Technologies Ltd.'s shareholders excluding share-based compensation expense, change in fair value of warrant liability, non-recurring expenses associated with the Merger, interest expense, depreciation expense, and provision for income taxes[13](index=13&type=chunk) [Rationale for Using Non-GAAP Measures](index=4&type=section&id=Rationale%20for%20Using%20Non-GAAP%20Measures) Non-GAAP measures exclude non-cash or unpredictable items to provide clearer insights into core operations, aiding management in decision-making and performance evaluation - These items are excluded from Adjusted Net Income (Loss) and Adjusted EBITDA because they are noncash in nature, or their amount and timing are unpredictable, not driven by core results of operations, and render comparisons with prior periods and competitors less meaningful[14](index=14&type=chunk) - Adjusted Net Income (Loss) and Adjusted EBITDA are key measurements used by management internally to make operating decisions, evaluate performance, and perform strategic planning and annual budgeting[15](index=15&type=chunk) [Non-GAAP Outlook Disclosure](index=4&type=section&id=Disclosure%20on%20Non-GAAP%20Outlook) The fiscal year outlook is provided on a non-GAAP basis, and reconciliation to GAAP Net Loss is not feasible due to unpredictable items outside the company's control - The fiscal year outlook is provided on a non-GAAP basis, and the Company cannot reconcile its expected Adjusted EBITDA to expected Net Loss Attributable to Pagaya without unreasonable effort[16](index=16&type=chunk) - Certain items that impact net income (loss) and other reconciling items are out of the Company's control and/or cannot be reasonably predicted at this time, which unavailable information could have a significant impact on the Company's GAAP financial results[16](index=16&type=chunk) [Contact Information](index=4&type=section&id=Contact%20Information) This section provides contact details for investor relations and media inquiries at Pagaya Technologies [Investors & Analysts](index=4&type=section&id=Investors%20%26%20Analysts) Jency John serves as the Head of Investor Relations for Pagaya, with contact available via email - Investors & Analysts can contact Jency John, Head of Investor Relations, at IR@pagaya.com[17](index=17&type=chunk)[18](index=18&type=chunk) [Media & Press](index=5&type=section&id=Media%20%26%20Press) Emily Passer is the Head of PR & External Communications for Pagaya, available for media inquiries via email - Media & Press can contact Emily Passer, Head of PR & External Communications, at Press@pagaya.com[18](index=18&type=chunk) [Unaudited Consolidated Financial Statements](index=6&type=section&id=Unaudited%20Consolidated%20Financial%20Statements) This section presents Pagaya's unaudited consolidated financial statements, including statements of operations, financial position, and cash flows for the specified periods [Consolidated Statements of Operations](index=6&type=section&id=PAGAYA%20TECHNOLOGIES%20LTD.%20CONSOLIDATED%20STATEMENTS%20OF%20OPERATIONS%20%28UNAUDITED%29) The Consolidated Statements of Operations show Pagaya's revenue, costs, and net loss for the three months and year ended December 31, 2022, compared to 2021, highlighting significant increases in total revenue and operating expenses, leading to a larger operating and net loss Key Consolidated Statements of Operations Figures (in thousands) | Metric | 4Q22 | 4Q21 | FY22 | FY21 | | :------------------------------------------ | :----------- | :----------- | :----------- | :----------- | | Revenue from fees | $178,173 | $144,262 | $685,414 | $445,866 | | Total Revenue and Other Income | $192,890 | $154,730 | $748,928 | $474,588 | | Total Costs and Operating Expenses | $219,587 | $156,916 | $1,000,433 | $480,397 | | Operating Loss | ($26,697) | ($2,186) | ($251,505) | ($5,809) | | Loss Attributable to Pagaya Technologies Ltd. | ($33,998) | ($10,456) | ($302,321) | ($91,151) | | Net loss per share (Basic and Diluted) | ($0.05) | ($0.08) | ($0.69) | ($0.69) | Share-Based Compensation Breakdown (in thousands) | Category | 4Q22 | 4Q21 | FY22 | FY21 | | :------------------------ | :------- | :------- | :------- | :------- | | Research and development | $4,886 | $800 | $81,337 | $27,042 | | Selling and marketing | $3,843 | $1,048 | $58,377 | $18,458 | | General and administrative | $9,953 | $2,963 | $101,975 | $22,285 | | **Total** | **$18,682** | **$4,811** | **$241,689** | **$67,785** | [Consolidated Statements of Financial Position](index=7&type=section&id=PAGAYA%20TECHNOLOGIES%20LTD.%20CONSOLIDATED%20STATEMENTS%20OF%20FINANCIAL%20POSITION%20%28UNAUDITED%29) The Consolidated Statements of Financial Position present Pagaya's assets, liabilities, and shareholders' equity as of December 31, 2022, and 2021, showing a substantial increase in total assets, primarily driven by investments in loans and securities, and a significant rise in total shareholders' equity Key Consolidated Statements of Financial Position Figures (in thousands) | Metric | Dec 31, 2022 | Dec 31, 2021 | | :--------------------------------------------------- | :------------- | :------------- | | Total Assets | $1,045,079 | $590,258 | | Total Liabilities | $279,656 | $105,859 | | Total Pagaya Technologies Ltd. Shareholders' Equity | $553,520 | $1,292 | | Total Shareholders' Equity | $765,423 | $177,352 | [Consolidated Statements of Cash Flows](index=8&type=section&id=PAGAYA%20TECHNOLOGIES%20LTD.%20CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS%20%28UNAUDITED%29) The Consolidated Statements of Cash Flows detail the cash inflows and outflows from operating, investing, and financing activities for the years ended December 31, 2022, and 2021, indicating a shift from positive to negative cash flow from operations in 2022, offset by significant cash provided by financing activities Key Consolidated Statements of Cash Flows Figures (in thousands) | Metric | FY22 | FY21 | | :------------------------------------------ | :----------- | :----------- | | Net cash (used in) provided by operating activities | ($40,000) | $49,811 | | Net cash used in investing activities | ($265,419) | ($140,740) | | Net cash provided by financing activities | $437,920 | $289,624 | | Net increase in cash, cash equivalents and restricted cash | $132,501 | $198,695 | | Cash, cash equivalents and restricted cash, end of period | $337,076 | $204,575 | [Reconciliation of Non-GAAP Financial Measures](index=9&type=section&id=PAGAYA%20TECHNOLOGIES%20LTD.%20RECONCILIATION%20OF%20NON-GAAP%20FINANCIAL%20MEASURES%20%28UNAUDITED%29) This section provides a detailed reconciliation of Pagaya's GAAP financial results to its non-GAAP financial measures, Adjusted Net Income (Loss) and Adjusted EBITDA [Adjusted Net Income (Loss) and Adjusted EBITDA Reconciliation](index=9&type=section&id=Reconciliation%20of%20Adjusted%20Net%20Income%20%28Loss%29%20and%20Adjusted%20EBITDA) This section provides a detailed reconciliation of GAAP Net Loss Attributable to Pagaya Technologies Ltd. to non-GAAP Adjusted Net Income (Loss) and Adjusted EBITDA for both the fourth quarter and full year 2022 and 2021, showing the specific adjustments made for items such as share-based compensation and fair value adjustments to warrant liability Reconciliation of Non-GAAP Financial Measures (in thousands) | Metric | 4Q22 | 4Q21 | FY22 | FY21 | | :------------------------------------------ | :----------- | :----------- | :----------- | :----------- | | Net Loss Attributable to Pagaya Technologies Ltd. | ($33,998) | ($10,456) | ($302,321) | ($91,151) | | *Adjustments:* | | | | | | Share-based compensation | 18,682 | 4,811 | 241,689 | 67,785 | | Fair value adjustment to warrant liability | (1,680) | 1,542 | (11,088) | 53,019 | | Other than temporary impairment loss on certain investments | 8,836 | — | 8,836 | — | | Impairment of goodwill and other intangible assets | 3,209 | — | 3,209 | — | | Non-recurring expenses | 1,268 | 4,483 | 27,011 | 7,606 | | **Adjusted Net Income (Loss)** | **($3,683)** | **$380** | **($32,664)** | **$37,259** | | *Further Adjustments for EBITDA:* | | | | | | Interest expenses | 1,716 | — | 5,136 | — | | Provision for income tax | (9,204) | (3,542) | 16,400 | 7,875 | | Depreciation and amortization | 2,217 | 326 | 6,294 | 815 | | **Adjusted EBITDA** | **($8,954)** | **($2,836)** | **($4,834)** | **$45,949** |

Pagaya Technologies Ltd. Q3 2022 Earnings Conference Call November 10, 2022 5:00 PM ET Company Participants Jency John - Head of Investor Relations Gal Krubiner - Chief Executive Officer Michael Kurlander - Chief Financial Officer Conference Call Participants Eugene Simuni - MoffettNathanson Joseph Vafi - Canaccord David Scharf - JMP Securities Vincent Caintic - Stephens. Operator Good day, and welcome to Pagaya's Q3 2022 Earnings Call. Today's conference is being recorded. At this time, I would like to tur ...

Pagaya Technologies Ltd. 1 3Q 2022 Results November 10, 2022 Legal Disclaimer Cautionary Note About Forward-Looking Statements This document contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, that involve risks and uncertainties. These forward-looking statements generally are identified by the words "anticipate", "believe", "continue", "can," "could", "estimate", "expect", "inten ...

Exhibit 99.1 PAGAYA TECHNOLOGIES LTD. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION AS OF JUNE 30, 2022 AND DECEMBER 31, 2021 (In thousands) | | June 30, | December 31, | | --- | --- | --- | | | 2022 | 2021 | | Assets | | | | Current assets: | | | | Cash and cash equivalents | $414,968 | $190,778 | | Restricted cash | 10,010 | 7,000 | | Short-term deposits | — | 5,020 | | Fees receivable | 35,066 | 32,332 | | Investments in loans and securities | 4,173 | 5,142 | | Prepaid expenses and ot ...