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 ...

Group 1 - Pagaya Technologies is a financial technology company that utilizes proprietary data and an internal AI model to underwrite asset-backed securities (ABS) loans [1] - The company collaborates with over 30 lending partners and more than 100 capital partners to fund these loans [1] - Pagaya primarily focuses on personal loans [1]

Financial Performance - Revenue for the year ended December 31, 2024, was $1,032.2 million, representing a 27% growth from $812.1 million in 2023[156]. - Net loss attributable to shareholders for 2024 was $401.4 million, compared to a loss of $128.4 million in 2023[156]. - Adjusted EBITDA improved to positive $210.4 million in 2024 from negative $82.0 million in 2023, reflecting successful FRLPC improvement initiatives and disciplined cost management[156]. - Fee Revenue Less Production Costs (FRLPC) from lending partners comprised 69% of total FRLPC in 2024, up from 57% in 2023, indicating enhanced monetization of partnerships[130]. - The company is particularly susceptible to fluctuations in consumer credit activity and capital markets, with a significant portion of current revenues derived from Financing Vehicles acquiring consumer credit assets[202]. Growth and Expansion - As of December 31, 2024, Pagaya's network generated approximately $9.7 billion in Network Volume, representing a growth of over 506% compared to $1.6 billion in 2020[114]. - The company processed more than $2.6 trillion in loan applications since inception, with its network currently processing more than one application per second[112]. - The company plans to expand its product ecosystem to new lenders across markets, building on its success in personal loans and entering auto and point-of-sale markets[124]. - The company expanded its network by onboarding new partners, including OneMain Financial and Avvance, which could connect to millions of new consumers and expand across multiple products and markets[129]. - The company continues to develop and improve its proprietary technology and expand its product offerings supported by AI technology[172]. Strategic Transactions and Acquisitions - Pagaya's recent acquisition of Theorem Technology, Inc. was completed for approximately $17.5 million, consisting of $10 million in cash and $7.5 million in Class A Ordinary Shares[104]. - The strategic acquisition of Darwin Homes, Inc. in January 2023 aims to enhance the company's technology capabilities in real estate investments[195]. - The company actively evaluates potential strategic transactions, including acquisitions, which may not yield expected benefits or may be difficult to integrate[150]. - Acquisitions may disrupt ongoing operations and increase liabilities, potentially leading to adverse impacts on financial results[243]. Technology and Innovation - The company’s AI technology is designed to price risk more efficiently than traditional methods, enhancing risk-reward opportunities for investors[126]. - The company is heavily dependent on its AI technology, which is crucial for evaluating creditworthiness and processing loan applications[176]. - The company continues to invest in AI technology to support the origination of new financial products, including point-of-sale loans, but faces risks associated with unproven business strategies and regulatory compliance[198]. - The company’s network provides an automated solution for transactions with minimal latency, improving the customer experience for partners[127]. Market Risks and Challenges - The company faces heightened interest rate risk due to the U.S. Federal Reserve's actions to reduce inflation, which could negatively impact demand for refinancing and personal loans[167]. - The company may need to raise additional funds to support growth, which may not be available on acceptable terms, potentially jeopardizing its business[150]. - The overall economic conditions could materially adversely affect the company's financial position and ability to raise capital when needed[232]. - Regulatory scrutiny on consumer credit products, particularly those involving AI technology, could lead to decreased demand for loans and negatively impact the company's partnerships[212]. Operational Risks - The company faces significant cybersecurity risks due to the complexity and accessibility of its information technology systems, which store large amounts of sensitive information[259]. - Cyberattacks are increasing in frequency and sophistication, posing threats such as ransomware attacks that can disrupt operations and lead to financial losses[259]. - The company relies on third-party data sources for its AI technology, and any inaccuracies or loss of access to this data could compromise its ability to evaluate potential customers effectively[254]. - The company faces risks related to fraud and misconduct by third-party service providers, which could lead to significant liability and reputational damage[282]. Regulatory and Compliance Issues - The company is subject to increased regulatory scrutiny regarding conflicts of interest and cost allocations, which could lead to reputational harm and regulatory penalties[229]. - Compliance with various governmental laws and regulations may increase costs and affect the company's growth strategy[290]. - Legal and regulatory developments may impose significant penalties and restrictions on the company's ability to manage rental properties[289]. Employee and Workforce Management - The company underwent a workforce reduction affecting over 20% of its workforce in 2024, incurring a severance-related charge of approximately $3.1 million[161]. - As of December 31, 2024, the company had a total of 553 employees, reflecting its growth trajectory and team-oriented culture[133]. - The company faces intense competition for attracting and retaining highly skilled personnel, particularly in Israel, which may impact its operational efficiency and growth prospects[220]. Corporate Governance - The dual class structure allows Founders to concentrate approximately 65.8% of the voting power through Class B Ordinary Shares, which have 10 votes per share compared to 1 vote for Class A Ordinary Shares[292]. - If the Founders fully exercise their Pagaya Options, their voting power could increase to approximately 83.6%[292]. - Class B Ordinary Shares will convert to Class A Ordinary Shares under specific conditions, reducing their voting power from 10 votes to 1 vote per share[292].

Core Insights - Pagaya (NASDAQ: PGY) reported its Q4 operating results and provided an outlook for 2025, indicating that the results were decent depending on the definition used [1] Financial Performance - The article does not provide specific financial metrics or performance data for Pagaya's Q4 results or the outlook for 2025 [1] Analyst Background - Bert Hochfeld, a seasoned analyst with a degree in economics from the University of Pennsylvania and an MBA from Harvard, has a long career in the tech sector and has been recognized for his work as a sell-side analyst [1] - Hochfeld founded Hochfeld Independent Research Group, providing research services to major institutions and hedge funds, and operated the Hepplewhite Fund, which was rated as the best performing small-cap fund for five years ending in 2011 [1] - Despite his accolades, Hochfeld faced legal issues in 2012 for misappropriating funds from a hedge fund he managed [1] Analyst's Position - The article mentions that the analyst has a beneficial long position in the shares of PGY and AFRM, indicating a personal investment interest [2]