Pagaya Technologies Ltd. (NASDAQ: PGY ) is a fintech (a financial technology) company that uses AI, machine learning, and data analytics to help financial institutions and investors offer better consumer credit and real estate solutions. They offer loans and credit cards. The company hasJoin a community generating outsized returnsGet more with our playbook to significantly grow your wealth by embracing a blended trading and investing approach at our one-stop shop.Our prices go up December 1st, but right now ...

Pagaya Technologies Ltd. (PGY) reported $257.23 million in revenue for the quarter ended September 2024, representing a year-over-year increase of 27.7%. EPS of $0.44 for the same period compares to $0.24 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $253.97 million, representing a surprise of +1.29%. The company delivered an EPS surprise of +76.00%, with the consensus EPS estimate being $0.25.While investors scrutinize revenue and earnings changes year-over-year and how they c ...

Financial Data and Key Metrics - The company reported Q3 2024 total revenue of $257 million, fee revenue less production cost (FRLPC) of $100 million, and adjusted EBITDA of $56 million [29] - Network volume grew by 11% year-over-year to $2.4 billion, with personal loans and point-of-sale (POS) businesses growing 15% and 67% respectively [33] - FRLPC as a percentage of network volume reached a record 4.3%, up 83 basis points year-over-year, driven by higher fees from lending partners [34] - Adjusted EBITDA margin improved by 846 basis points to 21.8%, with adjusted EBITDA growing by $28 million year-over-year [36] - Net loss attributable to the company was $67 million, primarily due to credit-related fair value adjustments of $70 million [37] Business Line Performance - Personal loans, the company's flagship asset class, achieved an FRLPC of 6.6% of volume, the highest among all products [25] - POS business volume grew by 67% year-on-year and 51% sequentially, with significant growth expected from partnerships like Klarna and Elavon [23] - Auto lending sector is stabilizing, with partners looking to achieve normalized growth expectations, focusing on premier lenders like Ally and OneMain [24] - Pre-screen product expanded to two live partners, with seven more in the pipeline, expected to drive additional lending opportunities [26][27] Market and Strategic Developments - The company is in term-sheet discussions with several top-20 lenders across personal loans, POS, and alternative lending, with announcements expected next year [10] - The onboarding of Elavon, U.S. Bank's POS arm, is complete, and contributions to results are expected in Q4 2024 [23] - The company is focusing on expanding its network, improving funding efficiency, and driving economies of scale to achieve GAAP profitability by 2025 [7][12] - The company has diversified funding sources, including ABS, forward flow, and managed funds, reducing net risk retention to 2%-3% of total network volume [43] Management Commentary on Industry and Outlook - Management is optimistic about the improving macroeconomic backdrop, which is expected to extend access to credit for more consumers [11] - The company is transitioning to a sustainably profitable business model, focusing on cash flow generation without raising external equity capital [11][15] - The company expects to achieve GAAP net income profitability in 2025, driven by continued top-line growth and reduced credit-related impairments [38][46] - The company is narrowing its full-year 2024 target ranges, expecting network volume between $9.5 billion and $9.7 billion, and adjusted EBITDA between $195 million and $205 million [48] Q&A Session Question: Funding Mechanics and Economics - The company allocates 60%-70% of volume to ABS and 30%-40% to alternative funding sources like forward flow and managed funds [53] - The blended net risk retention is expected to be around 2%-3% of total network volume, with significant demand for pass-through programs [51] Question: Point-of-Sale Growth Potential - POS is expected to grow significantly, potentially matching the size and profitability of the personal loans business, driven by partnerships with major banks and Klarna [54][55] Question: Expense Control vs. Investment - The company has inherent operating leverage, with costs remaining flat while FRLPC grew by 38%, allowing for continued growth without significant incremental investment [58][59] Question: Regulatory Environment Post-Election - Management expects a more constructive regulatory environment under the new administration, which should benefit the company's growth and technology adoption [60] Question: FRLPC Outlook Across Asset Classes - FRLPC margins are expected to converge across asset classes, with auto and POS businesses expected to reach similar profitability levels as personal loans as they mature [74][75] Question: Credit Impairments and Future Outlook - Credit impairments in Q3 were primarily related to 2023 vintages, with the majority of remaining adjustments expected in Q4 2024 [67][69] - The company has optimized funding structures and diversified sources, creating a significant cushion against future impairments [69][86] Question: Private Credit and Approval Rates - The company is seeing increased interest from private credit shops, but approval rates among lending partners remain prudent due to the high-interest-rate environment [80][81] Question: Fair Value Marks and Future Sensitivity - The company has reduced risk retention by 40% compared to 2023, with structural changes making future impairments less likely [86][87]

Pagaya Technologies Ltd. (PGY) came out with quarterly earnings of $0.44 per share, beating the Zacks Consensus Estimate of $0.25 per share. This compares to earnings of $0.24 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 76%. A quarter ago, it was expected that this company would post earnings of $0.20 per share when it actually produced earnings of $0.10, delivering a surprise of -50%.Over the last four quarters, the compa ...

PA G AYA T E C H N O L O G I E S LT D . 3Q24 Earnings Supplement November 12, 2024 Contents 01 Financial Metrics 02 Operating Metrics 03 Non-GAAP Reconciliations 01 Financial Metrics 3Q'24 financial highlights | --- | --- | --- | --- | |--------------------------------------------------------------|---------|---------|--------| | ($ millions) | Q3 2023 | Q3 2024 | %∆ | | Network Volume | $2,112 | $2,351 | 11% | | Total revenue & other income | $212 | $257 | 21% | | Revenue from fees | $201 | $249 | 24% | | ...

| --- | --- | --- | |---------------------------------------|---------|-------------------------------| | | | | | | | | | 》 PAGAYA | | | | | | | | PAGAYA TECHNOLOGIES LTD. Q3 Letter to | | | | Shareholders | Q3 2024 | Q4 2024 | | Q2 2024 Q1 2024 | | | | | | DATE ISSUED November 12, 2024 | | --- | --- | |-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------- ...

Pagaya Technologies Ltd. (PGY) shares rallied 12.4% in the last trading session to close at $14.62. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 31.6% gain over the past four weeks.Pagaya Technologies extended its rally for the second straight day, driven by optimism over the successful closing of two asset-backed securities (ABS) deals totaling $1 billion. The deals were oversubscribed, reflecting strong ...

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The most recent trading session ended with Pagaya Technologies Ltd. (PGY) standing at $11.68, reflecting a +1.39% shift from the previouse trading day's closing. This change outpaced the S&P 500's 0.41% gain on the day. Meanwhile, the Dow gained 0.69%, and the Nasdaq, a tech-heavy index, added 0.8%.Shares of the company witnessed a gain of 13.05% over the previous month, beating the performance of the Finance sector with its gain of 0.16% and the S&P 500's loss of 0.97%.The upcoming earnings release of Paga ...

This disruptive tech stock is making waves in the financial industry.Wall Street analysts' target prices are modeled based on many factors, and each one comes up with something different. Target prices can range from a large loss to a large gain, so it doesn't make sense to base your investment decisions based on one Wall Street analyst. No matter how much information they might have right now, no one can accurately predict what will happen in the markets.That said, there are several things to gain from pay ...