Core Insights - Pagaya Technologies (PGY) stock is currently undervalued based on its price/sales (P/S) ratio compared to peers, making it an attractive investment opportunity [1][7] - The company's forward 12-month P/S ratio is 1.37X, significantly lower than the industry average of 3.19X, indicating potential for significant gains as the market recognizes its true value [2][8] Valuation Metrics - PGY's P/S ratio is lower than its historical highs over the past three years, suggesting undervalued trading [3] - Competitors such as Upstart Holdings (UPST) and Virtu Financial, Inc. (VIRT) have higher P/S ratios of 3.24X and 2.87X respectively, further highlighting PGY's attractive valuation [6] Business Model and Strategy - Pagaya has a diversified and resilient business model, expanding beyond personal loans into auto lending and point-of-sale financing, which reduces cyclical risk [9] - The company has established a network of over 135 institutional funding partners, utilizing forward flow agreements to secure funding and mitigate credit risk [10][16] - PGY's proprietary data and product suite, including a pre-screen solution, enhances customer relationships and expands credit access with minimal marketing costs [11][12] Financial Performance - Pagaya has shown strong performance in 2025, with a year-to-date stock increase of 196.9%, outperforming both the industry and the S&P 500 Index [19] - The company has achieved three consecutive quarters of positive GAAP net income, a significant turnaround from previous losses [17][18] Expense Trends and Earnings Outlook - Despite strong performance, PGY has experienced a compound annual growth rate of 26.2% in total costs and operating expenses over the past three years, primarily due to rising production costs [22] - Analysts have maintained earnings estimates for 2025 and 2026 at $2.65 and $3.40 respectively, indicating a neutral outlook on earnings growth potential [24]

Core Insights - Pagaya Technologies Ltd. (NASDAQ: PGY) is recognized for its AI infrastructure in the financial sector, with a focus on prudent underwriting and consistent execution [1] Financial Performance - On November 10, 2025, PGY reported an earnings per share (EPS) of $0.23, which fell short of the expected $0.65 [2][4] - The company's revenue for the quarter was $350.16 million, surpassing the forecast of $338.86 million and closely matching the previous quarter's revenue of $350.17 million [2][4] - PGY has consistently exceeded revenue estimates in the last four quarters and outperformed consensus EPS estimates in two of the past four quarters [4] Financial Ratios - The price-to-sales ratio is approximately 1.92, indicating that investors are paying $1.92 for every dollar of sales [3] - The debt-to-equity ratio stands at 2.08, suggesting that the company has more than twice as much debt as equity [3] - PGY maintains a current ratio of about 1.42, reflecting a reasonable level of liquidity to cover short-term liabilities [3][4]

Financial Performance - Revenue from fees for the three months ended September 30, 2025, was $339,887 thousand, a 36.3% increase compared to $249,283 thousand for the same period in 2024[20] - Operating income for the nine months ended September 30, 2025, was $184,112 thousand, significantly higher than $35,101 thousand for the same period in 2024, marking an increase of over 424%[20] - Net income attributable to Pagaya Technologies Ltd. for the three months ended September 30, 2025, was $22,545 thousand, compared to a net loss of $67,476 thousand for the same period in 2024[20] - Comprehensive income attributable to Pagaya Technologies Ltd. for the three months ended September 30, 2025, was $10,320 thousand, recovering from a loss of $86,858 thousand in the same period of 2024[22] - For the nine months ended September 30, 2025, Pagaya Technologies reported a net income of $42.3 million, a significant improvement compared to a net loss of $188.6 million in the same period of 2024[26] - The company reported a net income (loss) before income taxes of $8,063 thousand for the three months ended September 30, 2025, compared to a loss of $85,755 thousand for the same period in 2024[20] - Net income for the period ending September 30, 2025, was $47,093,000, while the comprehensive loss amounted to $34,580,000[24] - Total revenue and other income increased by $92.9 million, or 36%, to $350.2 million for the three months ended September 30, 2025, compared to $257.2 million for the same period in 2024[203] Assets and Liabilities - Total assets increased to $1,455,376 thousand as of September 30, 2025, up from $1,291,072 thousand as of December 31, 2024, representing a growth of approximately 12.7%[17] - Total liabilities rose to $889,438 thousand as of September 30, 2025, compared to $775,276 thousand as of December 31, 2024, indicating an increase of approximately 14.7%[17] - As of September 30, 2025, Pagaya Technologies Ltd. reported a total equity of $535,835,000, with retained earnings showing a deficit of $896,950,000[24] - Cash and cash equivalents increased to $218,314 thousand as of September 30, 2025, up from $187,921 thousand as of December 31, 2024, reflecting a growth of 16.2%[17] - The balance of redeemable convertible preferred shares decreased to $30,103,000 as of September 30, 2025[24] - The total number of ordinary shares outstanding increased to 80,127,904 as of September 30, 2025, reflecting an increase from previous periods[24] Expenses - Technology, data, and product development expenses for the nine months ended September 30, 2025, were $56,135 thousand, slightly down from $57,970 thousand in the same period of 2024[20] - Share-based compensation expenses were reported at $44.0 million for the nine months ended September 30, 2025, slightly down from $45.9 million in the same period of 2024[26] - The company recognized share-based compensation expenses totaling $47,821,000 during the reporting period[24] - General and administrative expenses decreased from $57.8 million to $36.9 million, reflecting a reduction in personnel-related costs[208] - Sales and marketing costs for Q3 2025 increased by $3.0 million to $11.4 million, a 26% rise compared to Q3 2024[213] Cash Flow and Investments - The company generated $158.8 million in net cash from operating activities for the nine months ended September 30, 2025, compared to $19.9 million in the same period of 2024[26] - Pagaya Technologies' cash flows from investing activities resulted in a net cash outflow of $209.5 million for the nine months ended September 30, 2025, compared to an outflow of $448.1 million in the same period of 2024[26] - The company reported additions to investments in loans and securities of $67,811,000 for the three months ended September 30, 2025, compared to $130,271,000 for the same period in 2024[116] - The company experienced a loss from investments in loans and securities amounting to $65.5 million for the nine months ended September 30, 2025, compared to $157.5 million in the same period of 2024[26] Debt and Financing - The Company issued $160 million of 6.125% Exchangeable Notes due 2029, with an effective interest rate of 8.7%[61][62] - The Company completed the issuance of $500 million Senior Unsecured Notes due 2030, accruing interest at 8.875% per annum[63] - The Company incurred a loss of $1.1 million related to the write-off of deferred issuance costs during Q3 2025[56] - The Company’s secured borrowings decreased to $131.5 million as of September 30, 2025, down from $176.1 million at the end of 2024[55] - Long-term debt increased to $487.8 million as of September 30, 2025, compared to $321.3 million at the end of 2024, reflecting a 52% rise[55] Market and Economic Conditions - Macroeconomic conditions, including inflation and geopolitical tensions, may affect consumer demand and the availability of funding from investors[176] - The Company has diversified its investor network, which is critical for growth, despite macroeconomic pressures such as high interest rates and inflation[178] - The company aims to enhance financial opportunities through its AI-powered technology and data network, targeting improved creditworthiness assessments for financial products[152] Shareholder Information - The weighted average shares outstanding for basic shares increased to 78,539,137 for the three months ended September 30, 2025, compared to 72,728,667 for the same period in 2024[20] - Basic earnings per share increased to $0.27 for the three months ended September 30, 2025, compared to a loss of $0.93 for the same period in 2024[201] - The total shares of ordinary shares reserved for future issuance as of September 30, 2025, was 53,257,011, a slight decrease from 54,762,940 as of December 31, 2024[123] Regulatory and Compliance - The transition to "large accelerated filer" status will occur as of December 31, 2025, requiring compliance with additional disclosure requirements and auditor attestation[158] - The company is currently subject to federal tax audits in Israel and the U.S., with no material issues raised to date[145]

Core Insights - The article emphasizes the importance of saving and investing wisely, suggesting that individuals should save at least 10% of their income regardless of the amount earned [1] - It advocates for investing in sectors where one has expertise, recommending that individuals focus on their competitive advantages rather than diversifying into unfamiliar areas without proper guidance [1] - The piece encourages a long-term investment strategy over trading, highlighting that investments should only be sold if the original investment thesis is no longer valid [1] - It stresses the significance of pursuing passions over purely financial gains, suggesting that long-term happiness can outweigh short-term financial benefits [1] Summary by Categories Saving and Personal Finance - Individuals are advised to save 10% of their income consistently, regardless of the amount, as a fundamental financial principle [1] Investment Strategy - The article recommends investing in familiar sectors where one has a competitive advantage, such as E&P companies for those with oil industry experience, and suggests seeking professional advice for diversification [1] - It promotes a long-term investment approach, indicating that investments should be held unless the underlying thesis changes [1] Career and Personal Fulfillment - The importance of doing what one loves is highlighted, with the notion that pursuing passion can lead to greater long-term satisfaction, even if it means earning less money in the short term [1]

Core Insights - U.S. stocks experienced an upward trend, with the Nasdaq Composite increasing by over 400 points on Monday [1] - Pagaya Technologies Ltd reported better-than-expected third-quarter financial results and raised its FY25 sales guidance, leading to a significant increase in its stock price [1][2] Pagaya Technologies - Pagaya Technologies reported quarterly earnings of $1.02 per share, surpassing the analyst consensus estimate of 18 cents per share [2] - The company achieved quarterly sales of $339.887 million, exceeding the analyst consensus estimate of $338.947 million [2] - Following the earnings report, Pagaya Technologies shares surged by 17.4% to $28.72 [2] Other Notable Stock Movements - Cogent Biosciences Inc saw its shares jump by 133.3% to $34.57 after positive results from its Phase 3 PEAK study [4] - Sable Offshore Corp gained 30.3% to $6.96 following a $250 million private placement announcement [4] - Personalis Inc rose by 28.8% to $8.92 after announcing Medicare coverage for its ultrasensitive MRD test in breast cancer [4] - Ironwood Pharmaceuticals, Inc. surged by 27.6% to $2.45 after reporting better-than-expected third-quarter results and raising its FY25 sales guidance [4] - Telos Corp's shares increased by 23% to $7.85 after reporting strong third-quarter results and issuing FY25 sales guidance above estimates [4] - TreeHouse Foods Inc jumped by 22.3% to $23.30 after announcing its acquisition by Investindustrial [4] - Village Farms International Inc gained 17.5% to $3.48 following better-than-expected quarterly earnings [4]

Financial Data and Key Metrics Changes - Pagaya achieved consistent GAAP net income profitability, with an exit rate of over $120 million on an annual basis [5] - Network volume grew 19% year over year to a record $2.8 billion, with a 31% growth in personal loans [21] - Total revenue and other income rose 36% to a record $350 million, driven by fee revenue growth outpacing volume [21] - Adjusted EBITDA increased 91% to a record $107 million, with margins expanding 9 percentage points to 30.6% [22] - GAAP net income of $23 million represented a significant improvement from a net loss of $67 million in Q3 2024 [23] Business Line Data and Key Metrics Changes - Personal loans accounted for a significant portion of growth, with cumulative net losses trending approximately 35%-40% lower than peak levels in Q4 2021 [27] - Point of Sale (POS) volumes grew to about $1.4 billion, up from $1.2 billion last quarter [19] - Auto annualized volumes increased to $2.2 billion, up from $2 billion last quarter [19] - Multi-product partners represent only 30% of Pagaya's partners by number but contribute more than two-thirds of the volume [16] Market Data and Key Metrics Changes - Pagaya issued $1.8 billion in ABS programs across four transactions during the third quarter [29] - The company raised $500 million in corporate debt and expanded its corporate revolver with four new major banks [9] - The demand for Pagaya's assets remained consistent and robust, with strong investor interest across all asset classes [25] Company Strategy and Development Direction - The company is focusing on product-led growth and enhancing its product offerings to solve fundamental challenges facing lenders and consumers [6] - Pagaya aims to become a necessary utility for every lender in the U.S. by deepening partner engagement and expanding its funding network [8] - The strategy includes institutionalizing relationships with lending partners through long-term agreements and product agreements [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate through economic cycles, emphasizing a disciplined approach to underwriting and risk management [20] - The macroeconomic environment remains stable, with no significant deterioration in credit performance observed [56] - The company expects to maintain steady growth in personal loans and continued expansion in auto and POS products [32] Other Important Information - Pagaya introduced a new reporting line for Gains and Losses on Investments in Loans and Securities to enhance transparency [23] - The company ended the quarter with $265 million in cash and cash equivalents and $888 million in investments in loans and securities [30] Q&A Session Summary Question: Can you provide perspective on credit quality and borrowers' ability to manage their credits? - Management stated that credit performance is well within expectations, reflecting a balanced and conservative underwriting approach [34][35] Question: How has risk retention changed with successful ABS issuances? - The company noted robust demand for origination and a diversified funding strategy, with a current mix of approximately 60-40% between ABS and other structures [41] Question: Can you discuss the differences between Pagaya's B2B model and traditional B2C lenders? - Management highlighted that Pagaya's B2B model allows for more stable growth without the fluctuations associated with B2C marketing spend [44][49] Question: What is the outlook for potential new asset classes? - Management indicated that home improvement credit is gaining traction, but any expansion will be approached with strict criteria to ensure market stability and partner interest [60][63]

分组1 - Pagaya Technologies Ltd. reported quarterly earnings of $1.02 per share, exceeding the Zacks Consensus Estimate of $0.62 per share, and showing an increase from $0.44 per share a year ago, resulting in an earnings surprise of +64.52% [1] - The company achieved revenues of $350.17 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 3.29%, and up from $257.23 million year-over-year [2] - Pagaya Technologies Ltd. has outperformed the S&P 500, with shares increasing approximately 163.2% since the beginning of the year compared to the S&P 500's gain of 14.4% [3] 分组2 - The current consensus EPS estimate for the upcoming quarter is $0.70 on revenues of $359.25 million, and for the current fiscal year, it is $2.65 on revenues of $1.31 billion [7] - The Zacks Industry Rank for Financial - Miscellaneous Services is in the top 30% of over 250 Zacks industries, indicating a favorable outlook for the industry [8]

Financial Performance - Network Volume reached $2.802 billion in 3Q'25, a 19% increase compared to $2.351 billion in 3Q'24[12] - Total revenue & other income increased by 36% from $257 million in 3Q'24 to $350 million in 3Q'25[12] - Fee revenue less production costs (FRLPC) grew by 39% from $100 million in 3Q'24 to $139 million in 3Q'25[12] - Adjusted EBITDA increased by 91% from $56 million in 3Q'24 to $107 million in 3Q'25[12] - The company achieved a Net Income of $23 million in 3Q'25, a significant improvement of $90 million compared to a loss of $67 million in 3Q'24[12, 14] Operating Metrics - The company's ABS issuance reached $7.4 billion TTM (Trailing Twelve Months) in 3Q'25[34] - Applications evaluated in 3Q'25 totaled $266 billion, representing a 12% quarter-over-quarter increase[35] - The conversion rate of applications to issued loans was approximately 1% in 3Q'25[35] FRLPC Evolution - FRLPC % (Fee revenue less production costs as a % of network volume) reached 5% in 3Q'25[56], with a target of 4%-5% for 2025[17] - AI integration contributed $309 million to fee revenue in 3Q'25[22]

Core Insights - Pagaya Technologies Ltd. reported strong financial results for Q3 and the first nine months of 2025, raising full-year guidance for the third consecutive quarter, indicating robust performance and a strong pipeline of opportunities [2][4]. Financial Performance - GAAP Net Income reached $23 million, an increase of $90 million year-over-year [4][5]. - Adjusted EBITDA was $107 million, up 91% year-over-year [4][5]. - Total revenue and other income amounted to $350 million, reflecting a 36% increase year-over-year [4][5]. - Network volume hit a record of $2.8 billion, up 19% year-over-year, driven by growth in Auto and Point-of-Sale verticals [4][5]. Guidance and Outlook - Full-year 2025 guidance for Network Volume is expected to be between $10.5 billion and $10.75 billion [7]. - Total Revenue and Other Income is projected to be between $1,300 million and $1,325 million [7]. - Adjusted EBITDA is anticipated to be between $372 million and $382 million [7]. - GAAP Net Income is expected to range from $72 million to $82 million [7]. Strategic Developments - The company raised $500 million in corporate debt, receiving positive ratings from all three major credit rating agencies, which validates its strategic direction [5]. - Pagaya expanded its Revolving Credit Facility to $132 million, reducing interest rates by nearly 35% [5]. - A partnership with One William Street Capital Management was established to enhance capital efficiency in the auto platform [5]. - An inaugural Auto forward flow agreement with Castlelake was announced, allowing for the purchase of up to $500 million in Auto Loans [5].

Financial Performance - Record network volume reached $2.8 billion, growing 19% year-over-year, exceeding the outlook of $2.75 - $2.95 billion[3] - Total revenue and other income hit a record $350 million, a 36% year-over-year increase, surpassing the outlook of $330 - $350 million[4] - Revenue from fees less production costs (FRLPC) was $139 million, up 39% year-over-year, with FRLPC as a percentage of network volume improving to 5.0%[5] - Adjusted EBITDA reached a record $107 million, growing 91% year-over-year, with an adjusted EBITDA margin of 31%[6] - GAAP net income attributable to shareholders was $23 million, a 6% margin, significantly up from $10 - $20 million outlook[7] - Total revenue for Q3 2025 reached $350 million, a 36% year-over-year increase, with fee revenue contributing 97% of total revenue[57] - GAAP net income for Q3 2025 was $23 million, compared to a net loss of $67 million in Q3 2024, reflecting a significant improvement in profitability[67] - Revenue for Q3 2025 reached $350.165 million, a 36.1% increase from $257.234 million in Q3 2024[103] - Net income attributable to Pagaya Technologies Ltd. was $22.545 million in Q3 2025, compared to a loss of $67.476 million in Q3 2024[103] - Non-GAAP adjusted net income for the nine months ended September 30, 2025, was $196.567 million, up from $53.641 million in the same period of 2024[105] - Adjusted EBITDA for Q3 2025 was $107,038 thousand, up from $56,085 thousand in Q3 2024, reflecting a 91% year-over-year increase[107] - The company's operating income increased to $79,958 thousand in Q3 2025, compared to $22,384 thousand in Q3 2024, marking a 258% increase[107] - The adjusted net income for the nine months ended September 30, 2025, was $196,567 thousand, compared to $53,641 thousand for the same period in 2024, indicating a substantial increase[107] Funding and Capital Structure - The company issued $1.8 billion in ABS across four transactions, enhancing funding momentum and diversification[11] - A public bond offering raised $500 million in corporate debt, improving balance sheet efficiency and reducing funding costs by 400bps[13] - The company issued $1.8 billion in ABS during Q3 2025, enhancing its funding capabilities and diversifying its funding sources[79] - The balance sheet as of September 30, 2025, included $265 million in cash and $888 million in investments in loans and securities[81] - Total liabilities increased to $889.438 million as of September 30, 2025, from $775.276 million at the end of 2024[104] - The company expects to achieve $12 million in annualized interest expense savings due to recent refinancing efforts[71] - Interest expense is projected to trend lower due to a recent refinancing notes transaction[87] Growth and Market Position - The onboarding pipeline reached a record number of partners, indicating strong demand and growth potential[14] - Approximately 50% of current volumes come from newer products and features, showcasing the effectiveness of product expansion strategies[42] - Annualized Point-of-Sale volumes grew to $1.4 billion, up from $1.2 billion in the previous quarter, while Auto volumes increased to $2.2 billion from $2 billion[51] - The company anticipates an annual run rate of over $120 million of GAAP income in Q4, reflecting continued operational momentum[15] - The full-year 2025 outlook anticipates Network Volume between $10.5 billion and $10.75 billion, with an implied 4Q'25 volume of $2.65 billion to $2.9 billion[88] - Total Revenue & Other Income is projected to be between $1.3 billion and $1.325 billion for FY25, with 4Q'25 expected to range from $333 million to $358 million[88] - Adjusted EBITDA for FY25 is estimated between $372 million and $382 million, with an implied 4Q'25 range of $99 million to $109 million[88] - GAAP Net Income is forecasted to be between $72 million and $82 million for FY25, with 4Q'25 expected to be between $25 million and $35 million[88] - The company expects Fee Revenue Less Production Costs (FRLPC) to grow steadily, ranging from 4.0% to 5.0% as a percentage of network volume in 4Q'25, compared to 3Q'25[87] Operational Efficiency - Core operating expenses as a percentage of FRLPC improved to 34% in Q3 2025, down from 52% in Q3 2024, demonstrating enhanced operational efficiency[107] - Operating expenses decreased to $69,633 thousand in Q3 2025 from $85,885 thousand in Q3 2024, a reduction of 19%[107] - The company incurred $18,606 thousand in impairment losses on certain investments in Q3 2025, down from $81,827 thousand in Q3 2024, showing a reduction in investment-related losses[107] Strategic Focus - The company emphasizes a focus on profitable growth while monitoring market volatility closely[86] - The company plans to maintain a cautious stance amid ongoing economic uncertainties[86] - Future credit-related impairments are considered in the guidance, reflecting potential scenarios[87] - Pagaya utilizes machine learning and a vast data network to enhance its financial products and services[91] - Pagaya Technologies Ltd. completed the acquisition of Theorem Technology, Inc., which is expected to enhance its market position[105]