Pagaya Technologies Ltd. (PGY) closed the last trading session at $11.58, gaining 20% 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 $22.89 indicates a 97.7% upside potential. The average comprises nine short-term price targets ranging from a low of $12 to a high of $36, with a standard deviation of $8.72. While the lowest estimate indicates an increase of 3.6% from the current pr ...

Pagaya Technologies Ltd. (PGY) shares soared 6.1% in the last trading session to close at $10.57. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 33.9% loss over the past four weeks. The upside can be attributed to Pagaya Technologies' core strength in its proprietary AI-powered technology, enabling efficient credit evaluation and decision-making for partners in originating loans and financial products. The company has processed ...

Group 1 - The article discusses the potential for undervalued stocks that are mispriced by the market as a strategy to end Q3 [1] - It highlights the investment group "Out Fox The Street," led by Mark, which provides stock picks and research to identify potential multibaggers while managing portfolio risk through diversification [2] - Features of the investment group include model portfolios, stock picks with identifiable catalysts, daily updates, real-time alerts, and community chat access [2] Group 2 - The article emphasizes the importance of conducting personal research or consulting a financial advisor before making investment decisions [3] - It notes that past performance is not indicative of future results, and no specific investment recommendations are provided [4]

In the latest market close, Pagaya Technologies Ltd. (PGY) reached $12.33, with a -1.75% movement compared to the previous day. This change lagged the S&P 500's 0.19% loss on the day. Elsewhere, the Dow saw an upswing of 0.09%, while the tech-heavy Nasdaq depreciated by 0.36%. The company's shares have seen an increase of 1.95% over the last month, not keeping up with the Business Services sector's gain of 6.7% and the S&P 500's gain of 2.06%. The investment community will be closely monitoring the performa ...

Pekic Pagaya - It's valuation has nothing to do with its performance or its outlook It has been a bit over a year since I wrote about Pagaya Technologies Ltd. (NASDAQ:PGY) in an article published on SA. Since that time the shares appreciated initially, then fell relentlessly and finally have come back to a level just a bit less than they were when the article was initially published. Unless you are a devotee of roller-coaster rides-and I am not-that is not the performance that is desirable to see for anyone ...

Core Viewpoint - Pagaya's Q2 2024 results were mixed, with revenues and adjusted EBITDA exceeding expectations, but net losses were higher than anticipated. The company announced significant partnerships and a forward flow agreement that are expected to positively impact future performance [1][11]. Financial Performance - Quarterly revenues reached $250 million, surpassing the expected $239 million, representing a 28% year-over-year growth [1]. - Adjusted EBITDA was reported at $50 million, marking the first time it exceeded this psychological barrier [1]. - Net operating cash flow improved to $29 million, indicating strong business evolution [1]. - Net losses amounted to $75 million, with adjusted EPS and GAAP EPS falling short of expectations at +$0.10 and -$1.04 respectively [1][11]. Asset Management - Losses from asset valuation adjustments on the balance sheet were primarily due to old loans with higher default rates, which have since decreased by 40% from their peak in 2021 [1][4]. - The company aims to reduce asset retention on the balance sheet to 2%-3% from the legal minimum of 5% [1][7]. Strategic Partnerships - Pagaya signed a forward flow agreement (FFA) for up to $1 billion with Castlelake, which is expected to mitigate liquidity risk [1][2]. - A partnership with a top 5 US bank was also announced, which is anticipated to enhance growth [1][2]. Future Outlook - The company targets achieving profitability and positive net cash flow by 2025, supported by ongoing revenue growth and strategic alliances [2][5]. - Total business volume for 2024 is projected to be approximately $10 billion, with a medium-term goal of reaching $25 billion [5]. Valuation Metrics - Pagaya's market capitalization is currently under $900 million, with an estimated annual adjusted EBITDA of $200 million for 2024, resulting in a valuation of just over 4 times its annual EBITDA [3][8]. - The stock is considered undervalued, with potential upside estimated at three times the current price, suggesting a target price of approximately $38 [3][8]. Margin Improvement - The company reported a record Fee Revenue Less Production Costs (FRLPC) of 4.2%, with a target average of 3.5% to 4.5% for 2024 [7]. - Gross margin improved to 42% in Q2 2024, reflecting increased efficiency and cost savings [7].

Financial Performance - Total assets increased to $1,452,977 thousand as of June 30, 2024, compared to $1,208,376 thousand as of December 31, 2023[9] - Revenue from fees for the six months ended June 30, 2024, was $479,598 thousand, up from $360,939 thousand in the same period in 2023[10] - Net loss attributable to Pagaya Technologies Ltd. for the six months ended June 30, 2024, was $96,008 thousand, compared to $92,268 thousand in the same period in 2023[10] - Operating income for the six months ended June 30, 2024, was $12,717 thousand, compared to an operating loss of $35,214 thousand in the same period in 2023[10] - Comprehensive loss attributable to Pagaya Technologies Ltd. for the six months ended June 30, 2024, was $167,502 thousand, compared to $89,592 thousand in the same period in 2023[12] - Total revenue and other income for the six months ended June 30, 2024, was $495,620 thousand, up from $382,250 thousand in the same period in 2023[10] - Net loss for the period ending June 30, 2024, was $82.679 million, compared to a net loss of $114.341 million in the previous period[14] - Net loss including noncontrolling interests decreased to $114.3 million in H1 2024 from $130.8 million in H1 2023, reflecting a 12.6% improvement[16] - Net cash provided by operating activities improved significantly to $36.0 million in H1 2024 from a net cash used of $25.5 million in H1 2023[16] - Net loss attributable to Pagaya Technologies Ltd. ordinary shareholders for the three months ended June 30, 2024, was $61.6 million for Class A shares and $13.2 million for Class B shares[107] - Net loss per share attributable to ordinary shareholders for the six months ended June 30, 2024, was $1.41 for both Class A and Class B shares[107] - Net loss attributable to Pagaya Technologies Ltd. was $74.8 million for the three months ended June 30, 2024, compared to $31.3 million in the same period in 2023[150] - Non-GAAP adjusted net income improved to $7.2 million for the three months ended June 30, 2024, compared to $0.9 million in the same period in 2023[150] - Net Loss Attributable to Pagaya Technologies Ltd. for the three months ended June 30, 2024 was $(74,785), compared to $(31,297) in the same period in 2023[188] Revenue and Fees - Revenue from fees for the six months ended June 30, 2024, was $479,598 thousand, up from $360,939 thousand in the same period in 2023[10] - Total revenue and other income for the six months ended June 30, 2024, was $495,620 thousand, up from $382,250 thousand in the same period in 2023[10] - Network AI fees grew 36.0% to $437.1 million in H1 2024 from $321.5 million in H1 2023[30] - Contract fees increased 7.9% to $42.5 million in H1 2024 compared to $39.4 million in H1 2023[33] - Total revenue from fees for the three months ended June 30, 2024 was $242.6 million, a 30.6% increase from $185.7 million in the same period in 2023[37] - For the six months ended June 30, 2024, total revenue from fees was $479.6 million, up 32.9% from $360.9 million in the prior year period[37] - Revenue from related parties for the six months ended June 30, 2024, reached $353.8 million, compared to $302.0 million in the same period in 2023[73] - Revenue from fees increased by $56.9 million, or 31%, to $242.6 million, primarily due to a $54.3 million increase in Network AI fees, with Network Volume growing by 19.1% to $2.3 billion[154] - Total revenue and other income increased by $113.4 million (30%) to $495.6 million for the six months ended June 30, 2024, driven by a $118.7 million (33%) increase in revenue from fees[167] - Network AI fees increased by $115.6 million to $437.1 million for the six months ended June 30, 2024, driven by improved economics in AI integration fees and a 25% increase in Network Volume to $4.8 billion[168] - Revenue from fees for the three months ended June 30, 2024 was $242,594, a 31% increase from $185,685 in the same period in 2023[187] Assets and Liabilities - Total assets increased to $1,452,977 thousand as of June 30, 2024, compared to $1,208,376 thousand as of December 31, 2023[9] - Total current liabilities increased to $241,254 thousand as of June 30, 2024, from $74,925 thousand as of December 31, 2023[9] - Cash and cash equivalents increased to $233,593 thousand as of June 30, 2024, from $186,478 thousand as of December 31, 2023[9] - Total non-current assets increased to $1,091,780 thousand as of June 30, 2024, from $904,974 thousand as of December 31, 2023[9] - Total shareholders' equity as of June 30, 2024, was $615.574 million, down from $665.749 million at December 31, 2023[14] - Accumulated deficit as of June 30, 2024, was $638.645 million, up from $542.637 million at December 31, 2023[14] - Non-controlling interests as of June 30, 2024, were $89.592 million, down from $106.028 million at December 31, 2023[14] - Total shareholders' equity as of June 30, 2023, was $703.123 million, down from $765.423 million at December 31, 2022[15] - Accumulated deficit as of June 30, 2023, was $506.467 million, up from $414.199 million at December 31, 2022[15] - Non-controlling interests as of June 30, 2023, were $179.940 million, down from $211.903 million at December 31, 2022[15] - Cash, cash equivalents and restricted cash decreased by 19.2% to $267.9 million as of June 30, 2024 from $331.4 million as of June 30, 2023[17] - Secured borrowings increased to $400.2 million as of June 30, 2024, up from $271.7 million at December 31, 2023[40] - The outstanding principal balance under repurchase agreements was $367.7 million as of June 30, 2024, compared to $251.4 million at December 31, 2023[41] - Long-term debt outstanding was $232.6 million as of June 30, 2024, with aggregate future maturities totaling $248.6 million[45][46] - The fair value of investments in loans and securities was $911.4 million as of June 30, 2024, up from $716.8 million at December 31, 2023[49][50] - Investments in loans and securities, available for sale, totaled $1,150.8 million in amortized cost and $911.4 million in fair value as of June 30, 2024[53] - The balance of allowance for credit losses was $(178.1) million as of June 30, 2024, compared to $(100.9) million at the beginning of the period[58] - Equity method and other investments totaled $26.6 million as of June 30, 2024, up slightly from $26.4 million as of December 31, 2023[61] - Consolidated VIEs had net assets of $111.2 million as of June 30, 2024, down from $132.7 million as of December 31, 2023[63] - The company's direct interest in unconsolidated VIEs was $807.0 million in carrying amount and maximum exposure to loss as of June 30, 2024, up from $591.0 million as of December 31, 2023[65] - Total fee receivables from related parties increased to $88.5 million as of June 30, 2024, up from $84.8 million at the end of 2023[71] - Investments in loans and securities (Level 3) increased to $853.418 million as of June 30, 2024, up from $626.368 million at the end of 2023[82] - Cash, cash equivalents, and restricted cash increased from $222.5 million as of December 31, 2023, to $267.9 million as of June 30, 2024[86][87] - Total assets grew from $336.2 million as of December 31, 2023, to $394.4 million as of June 30, 2024[86][87] - Cash, cash equivalents and restricted cash as of June 30, 2024 was $267.9 million, a 20% increase from $222.5 million as of December 31, 2023[189] Investments and Loans - Investments in loans and securities increased by 49.5% to $408.5 million in H1 2024 compared to $273.3 million in H1 2023[16] - The fair value of investments in loans and securities was $911.4 million as of June 30, 2024, up from $716.8 million at December 31, 2023[49][50] - Gross unrealized losses on investments in loans and securities totaled $12.6 million as of June 30, 2024, compared to $3.8 million at December 31, 2023[52] - Investments in loans and securities, available for sale, totaled $1,150.8 million in amortized cost and $911.4 million in fair value as of June 30, 2024[53] - Proceeds from sales/maturities/prepayments of investments in loans and securities were $66.8 million for the six months ended June 30, 2024, down from $91.4 million in the same period of 2023[57] - Additions to allowance for credit losses were $(79.9) million for the six months ended June 30, 2024, compared to $(85.6) million in the same period of 2023[57] - The company purchased $19.5 million of loan principal from Financing Vehicles in the six months ended June 30, 2024, recognizing an $18.4 million loss[65] - Investments in loans and securities (Level 3) increased to $853.418 million as of June 30, 2024, up from $626.368 million at the end of 2023[82] - The weighted average discount rate for Level 3 fair value measurements increased to 15.4% as of June 30, 2024, from 15.0% at the end of 2023[84][85] - The company purchased $19.5 million of loan principal from Financing Vehicles in the first six months of 2024, resulting in a loss of $18.4 million[74] Cash Flow and Financing - Net cash provided by operating activities improved significantly to $36.0 million in H1 2024 from a net cash used of $25.5 million in H1 2023[16] - The company raised $244.7 million from long-term debt and $89.9 million from ordinary shares sale in H1 2024[16] - Cash, cash equivalents and restricted cash decreased by 19.2% to $267.9 million as of June 30, 2024 from $331.4 million as of June 30, 2023[17] - The Receivables Facility maximum principal amount was increased from $32 million to $45 million in June 2024, with the term extended until June 2026[42] - The Company entered into a new Credit Agreement in February 2024, providing for a $35 million revolving credit facility and a $255 million term loan facility[43] - Net cash provided by operating activities for the six months ended June 30, 2024 was $35,961, compared to $(25,513) in the same period in 2023[201] - Net cash used in investing activities for the six months ended June 30, 2024 was $(351,287), compared to $(190,867) in the same period in 2023[201] - Net cash provided by financing activities for the six months ended June 30, 2024 was $362,434, a 70% increase from $213,359 in the same period in 2023[201] - The company issued 298,057 shares under the Equity Financing Purchase Agreement for net proceeds of $5.2 million during the six months ended June 30, 2024[198] - Net cash provided by operating activities for the six months ended June 30, 2024 was $36.0 million, an increase of $61.5 million from net cash used in operating activities of $25.5 million for the same period in 2023[202] - Net cash used in investing activities for the six months ended June 30, 2024 was $351.3 million, primarily due to purchases of risk retention assets of $408.5 million[205] - Net cash provided by financing activities for the six months ended June 30, 2024 was $362.4 million, including $230.4 million from issuance of long-term debt and $90.0 million from the ordinary share offering[206] - The company entered into a Credit Agreement on February 2, 2024, providing a $25 million revolving credit facility and a $255 million term loan facility[206] Expenses and Costs - Depreciation and amortization expenses increased 67.3% to $13.4 million in H1 2024 from $8.0 million in H1 2023[16] - Share-based compensation decreased 8.4% to $33.5 million in H1 2024 from $36.6 million in H1 2023[16] - Share-based compensation for the period ending June 30, 2024, was $20.093 million, down from $37.710 million in the previous period[14] - Share-based compensation for the period ending June 30, 2023, was $22.395 million, down from $39.691 million in the previous period[15] - Rent expense was $5.8 million for the six months ended June 30, 2024, down from $6.8 million in the same period of 2023[66] - Sublease income was $2.0 million for the six months ended June 30, 2024, down slightly from $2.1 million in the same period of 2023[66] - Total operating lease liabilities amount to $45.956 million as of 2024, with imputed interest deducted at $10.283 million[67] - The company has a remaining contractual obligation of $6.1 million with a third-party cloud computing provider, of which $4.9 million is due within the next 12 months[69] - The maximum potential future payments under guarantees total $29.2 million as of June 30, 2024[70] - Production costs increased by $25.0 million, or 21%, to $145.6 million, driven by increases in Network Volume and new Partners onboarded[158][159] - Technology, data, and product development costs increased by $4.3 million, or 24%, to $21.9 million, primarily due to higher depreciation of capitalized software[160] - Sales and marketing costs decreased by $1.2 million, or 8%, to $13.3 million, driven by reduced compensation expenses and marketing-related costs[162] - General and administrative costs increased by $11.4 million, or 22%, to $64.4 million, excluding a $13.4 million loss from loan purchases, costs decreased by $2.0 million[163] - Production costs increased by $44.8 million (18%) to $290.5 million for the six months ended June 30, 2024, due to higher Network Volume and new Partners onboarded[172] - Technology, data and product development costs increased by $2.5 million (6%) to $41.3 million for the six months ended June 30, 2024, primarily due to higher depreciation of capitalized software[173] - Sales and marketing costs decreased by $5.3 million (18%) to $23.6 million for the six months ended June 30, 2024, driven by lower compensation expenses[175] - General and administrative costs increased by $23.4 million (22%) to $127.5 million for the six months ended June 30, 2024, excluding a $18.4 million loss from loan purchases[176] - Other expense, net increased by $23.7 million (28%) to $107.5 million for the six months ended June 30, 2024, due to higher interest expenses and credit-related impairment losses[177] - Non-cash charges for the six months ended June 30, 2024 included impairment losses on investments in loans and securities, which increased by $1.6 million[203] - Share-based compensation decreased by $3.1 million, while depreciation and amortization increased by $5.4 million primarily from capitalized software[203] Shareholder Equity and Compensation - Total shareholders' equity as of June 30, 2024, was $615.574 million, down from $665.749 million at December 31, 2023[14] - Share-based compensation for the period ending June 30, 2024, was $20.093 million, down from $37.710 million in the previous period[14] - Share-based

Pagaya Technologies Ltd. (PGY) reported $250.34 million in revenue for the quarter ended June 2024, representing a year-over-year increase of 34.8%. EPS of $0.10 for the same period compares to $0.00 a year ago. The reported revenue compares to the Zacks Consensus Estimate of $239.16 million, representing a surprise of +4.68%. The company delivered an EPS surprise of -50.00%, with the consensus EPS estimate being $0.20. While investors scrutinize revenue and earnings changes year-over-year and how they comp ...

Pagaya Technologies Ltd. (PGY) came out with quarterly earnings of $0.10 per share, missing the Zacks Consensus Estimate of $0.20 per share. This compares to break-even earnings per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -50%. A quarter ago, it was expected that this company would post earnings of $0.16 per share when it actually produced earnings of $0.20, delivering a surprise of 25%. Over the last four quarters, the c ...

Overall Performance and Outlook Pagaya delivered record Q2 2024 financial results, exceeding outlooks, expanding its network, and raising full-year guidance, positioning for future self-funded growth and profitability [Q2 2024 Financial & Business Highlights](index=2&type=section&id=Q2%20Financial%20%26%20Business%20Highlights) Pagaya delivered record Q2 2024 financial results, exceeding outlooks with strong network volume, revenue, and adjusted EBITDA, alongside network expansion and capital efficiency enhancements | Financial Metric | Q2 2024 Result | Growth / Note | | :--- | :--- | :--- | | Network Volume | $2.3 billion | 19% YoY | | Total Revenue & Other Income | $250 million | 28% YoY, exceeded outlook | | Revenue from Fees | $243 million | 31% YoY | | FRLPC | $97 million | 49% YoY | | FRLPC % of Network Volume | 4.2% | +84 bps YoY, an all-time high | | Adjusted EBITDA | $50 million | Nearly 3x higher than Q2 2023, exceeded outlook | | Adjusted Net Income | $7 million | 5th consecutive quarter of positive adjusted net income | | GAAP Operating Income | $5 million | 4th consecutive quarter of positive GAAP operating income | | Cash Flow from Operations | $15 million | 4th consecutive quarter of positive operating cash flow | | Net Loss Attributable to Pagaya | ($75 million) | Impacted by non-cash items | - The company continued to expand its lending network, onboarding a new **top 5 bank** in the point-of-sale (POS) vertical and signing an enterprise deal with OneMain Financial to support its auto and personal loan businesses[3](index=3&type=chunk) - Achieved a record **FRLPC percentage of 4.2%**, leading the company to raise its target range for the remainder of 2024 to **3.5% - 4.5%** from the previous **3.0% - 4.0%**[3](index=3&type=chunk) - Enhanced capital efficiency by signing a **$1 billion forward flow purchase agreement** with Castlelake and achieving a first-ever **AAA rating** on its personal loan ABS program, which is expected to lower the cost of capital and reduce risk retention[4](index=4&type=chunk) - A business reorganization is expected to reduce core operating expenses by **$25 million** on an annualized basis, with **$10 million** in savings anticipated in the second half of 2024[5](index=5&type=chunk) [Shareholder Letter (CEO & CFO Commentary)](index=4&type=section&id=Shareholder%20Letter%20%28CEO%20%26%20CFO%20Commentary%29) CEO and CFO commentary highlights strong business momentum, positive incremental cash flow, and strategic priorities for network expansion and capital efficiency, targeting self-funded growth and GAAP profitability - The company has reached a critical inflection point where fees earned from network volume (FRLPC) are now higher than the capital required for risk retention, generating **positive incremental cash flow**[6](index=6&type=chunk)[23](index=23&type=chunk)[24](index=24&type=chunk) - Pagaya is on track to become **cash flow positive** and achieve **GAAP net income profitability in 2025**[8](index=8&type=chunk)[24](index=24&type=chunk) - The company is running at an annualized rate of approximately **$1 billion in total revenue**, **$400 million in FRLPC**, and **$200 million in adjusted EBITDA**[7](index=7&type=chunk) [Strategic Execution & Growth](index=5&type=section&id=Strategic%20Execution%20%26%20Growth) Pagaya is executing its growth strategy by expanding its lender network with new enterprise partners and focusing on the Point-of-Sale (POS) segment as a key growth frontier - The company is successfully expanding its network, adding enterprise lenders like OneMain Financial and a new **top 5 bank** in the POS vertical, in line with its goal of adding **2-4 new partners annually**[9](index=9&type=chunk)[10](index=10&type=chunk) - Point-of-Sale (POS) lending is a major growth opportunity, with a target to become **more than 30% of the business** at scale. The partnership with Elavon is on track to go live in Q4, and the company joined Mastercard's Engage program as the sole POS credit enabler[13](index=13&type=chunk)[15](index=15&type=chunk) - The partnership with Klarna is accelerating, with Q2 2024 network originations up approximately **2x** compared to Q2 2023[15](index=15&type=chunk)[16](index=16&type=chunk) - The company is developing a pre-screen product to offer existing customers of its lending partners pre-approved access to new credit, with positive initial results from a beta test[20](index=20&type=chunk) [Capital & Financial Strategy](index=7&type=section&id=Capital%20%26%20Financial%20Strategy) The company's financial strategy emphasizes capital efficiency through a $1 billion forward flow agreement and optimized ABS structures, aiming for cash flow positivity by early 2025 - Signed a **$1 billion, 12-month forward flow arrangement** with Castlelake to fund personal loan purchases, significantly improving capital efficiency[4](index=4&type=chunk)[18](index=18&type=chunk) - Achieved a first-ever **AAA rating** on its personal loan ABS program, which helps lower investor cost of capital and reduces the company's risk retention requirements going forward[4](index=4&type=chunk)[18](index=18&type=chunk) - The pending acquisition of Theorem Technology Inc. will create a combined credit fund platform with over **$3 billion in AUM**, strengthening the funding ecosystem[4](index=4&type=chunk)[18](index=18&type=chunk) - Credit performance of recent loan vintages remains stable and strong, with early-stage delinquencies at their lowest levels since the 2021 peak[18](index=18&type=chunk) [Q2 2024 Detailed Financial Results](index=9&type=section&id=Second%20Quarter%202024%20Results) Q2 2024 saw significant growth in Network Volume, Total Revenue, and FRLPC, with strong operating leverage leading to a near tripling of Adjusted EBITDA | Metric | Q2 2024 | Q2 2023 | YoY Change | | :--- | :--- | :--- | :--- | | Network Volume | $2.3B | $2.0B | +19% | | Total Revenue & Other Income | $250M | $196M | +28% | | FRLPC | $97M | $65M | +49% | | FRLPC % | 4.2% | 3.3% | +84 bps | | Adjusted EBITDA | $50M | $17M | +188% | - FRLPC growth significantly outpaced network volume growth, driven by a higher FRLPC % in the personal loan vertical, which reached **6.2% in Q2 2024**[27](index=27&type=chunk)[28](index=28&type=chunk) - The company demonstrated strong operating leverage, with core operating expenses flat year-over-year at **$55 million**, representing **22% of total revenue**, down from **28%** in the prior year[31](index=31&type=chunk) - The funding network expanded to **120 institutional investors** with the addition of **22 new funding partners** since the start of the year[35](index=35&type=chunk) - Net loss attributable to Pagaya was **$75 million**, compared to a **$31 million loss** in Q2 2023, primarily impacted by higher interest expense and non-cash fair value adjustments on the risk retention portfolio[33](index=33&type=chunk) [2024 Financial Outlook](index=14&type=section&id=2024%20Financial%20Outlook) Pagaya raised its full-year 2024 guidance for Total Revenue and Adjusted EBITDA, reflecting strong performance and an increased FRLPC target range | Metric | Q3 2024 Outlook | Full Year 2024 Outlook | | :--- | :--- | :--- | | Network Volume | $2.3B to $2.5B | $9.25B to $10.25B | | Total Revenue & Other Income | $250M to $260M | $975M to $1,050M | | Adjusted EBITDA | $50M to $60M | $180M to $210M | - The target range for FRLPC % was increased to **3.5% to 4.5%** for the remainder of 2024, up from the previous range of **3.0% to 4.0%**[42](index=42&type=chunk) Financial Statements & Reconciliations This section presents Pagaya's consolidated financial statements, including statements of operations, financial position, cash flows, and reconciliations of non-GAAP financial measures [Consolidated Statements of Operations](index=18&type=section&id=Consolidated%20Statements%20of%20Operations) For Q2 2024, Pagaya reported increased Total Revenue and achieved Operating Income, despite a Net Loss attributable to the company due to other expenses | (In thousands) | Three Months Ended June 30, 2024 | Three Months Ended June 30, 2023 | | :--- | :--- | :--- | | Total Revenue and Other Income | $250,344 | $195,612 | | Total Costs and Operating Expenses | $245,317 | $205,850 | | **Operating Income (Loss)** | **$5,027** | **($10,238)** | | Other income (expense), net | ($73,194) | ($16,895) | | **Net Loss Attributable to Pagaya** | **($74,785)** | **($31,297)** | [Consolidated Statements of Financial Position](index=19&type=section&id=Consolidated%20Statements%20of%20Financial%20Position) As of June 30, 2024, Pagaya's total assets increased to $1.45 billion, primarily due to investments, while total liabilities also rose, impacting shareholders' equity | (In thousands) | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Cash and cash equivalents | $233,593 | $186,478 | | Investments in loans and securities | $911,425 | $716,793 | | **Total Assets** | **$1,452,977** | **$1,208,376** | | Secured borrowing (current & non-current) | $400,221 | $271,713 | | Long-term debt (current & non-current) | $232,592 | $0 | | **Total Liabilities** | **$763,153** | **$468,377** | | **Total Shareholders' Equity** | **$615,574** | **$665,749** | [Consolidated Statements of Cash Flows](index=20&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) For the first half of 2024, Pagaya generated positive cash flow from operations, with investing activities primarily funding loans and securities, and financing activities providing substantial cash | (In thousands) | Six Months Ended June 30, 2024 | Six Months Ended June 30, 2023 | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | $35,961 | ($25,513) | | Net cash used in investing activities | ($351,287) | ($190,867) | | Net cash provided by financing activities | $362,434 | $213,359 | | **Net increase (decrease) in cash** | **$45,385** | **($5,708)** | [Reconciliation of Non-GAAP Financial Measures](index=21&type=section&id=Reconciliation%20of%20Non-GAAP%20Financial%20Measures) In Q2 2024, Pagaya reconciled its GAAP Net Loss to positive Adjusted Net Income and Adjusted EBITDA, primarily adjusting for non-cash items and interest expense | (In thousands) | Three Months Ended June 30, 2024 | | :--- | :--- | | **Net Loss Attributable to Pagaya** | **($74,785)** | | Share-based compensation | $18,044 | | Impairment loss on certain investments | $58,179 | | Other adjustments | $5,750 | | **Adjusted Net Income (Loss)** | **$7,188** | | Interest expenses | $21,563 | | Income tax expense (benefit) | $14,512 | | Depreciation and amortization | $7,042 | | **Adjusted EBITDA** | **$50,305** | | (In thousands, unless otherwise noted) | Three Months Ended June 30, 2024 | | :--- | :--- | | Revenue from fees | $242,594 | | Production costs | $145,602 | | **Fee Revenue Less Production Costs (FRLPC)** | **$96,992** | | Network Volume (in millions) | $2,331 | | **FRLPC %** | **4.2%** |