Pagaya Technologies' Revenue Jumps 28%

Core Insights - Pagaya Technologies reported strong fourth-quarter results, significantly exceeding analysts' expectations across multiple metrics [2][6] - The company demonstrated robust year-over-year growth, particularly in revenue and adjusted EBITDA, indicating effective utilization of its AI technology [2][6] Financial Performance - Non-GAAP EPS for Q4 was $0.17, compared to a consensus estimate of a loss of $0.52 per share [2][3] - Total revenue reached $279 million, surpassing the analyst estimate of $264 million and reflecting a 28.1% increase from $218 million in Q4 2023 [3][6] - Adjusted EBITDA was $64 million, an 87.5% increase from $34 million in the same quarter last year, with an adjusted EBITDA margin growth of 728 basis points to 23.0% [3][6] Operational Highlights - Network volume for the quarter was $2.6 billion, a 9.4% increase from $2.38 billion in Q4 2023 [3] - The company has facilitated over $1.8 trillion in loan applications, showcasing its strong market presence and technological capabilities [4] - Pagaya's strategic partnerships with institutions like U.S. Bank and Elavon are aimed at expanding its offerings beyond personal loans [5][8] Challenges and Risks - Despite strong revenue growth, Pagaya reported a net loss of $238 million for the quarter, attributed to non-cash fair value adjustments and stock-based compensation [7] - Credit impairments from loans issued between 2021 and 2023 indicate potential performance issues under previous market conditions [7] Future Outlook - For Q1 2025, Pagaya forecasts network volume between $2.5 billion and $2.7 billion, with expectations for growth in full-year volumes to reach between $10.25 billion and $11.75 billion [9] - Management anticipates achieving GAAP profitability by mid-2025, with projected total revenue between $1.15 billion and $1.275 billion [10]