Pagaya Technologies .(US:PGY) ZACKS·2025-11-24 15:11Core Insights - Pagaya Technologies Ltd. (PGY) has demonstrated strong growth in network volume, achieving a year-over-year increase of 10.5% for the nine months ending September 30, 2025 [1][11] Business Model and Expansion - PGY has diversified its business model beyond personal loans, expanding into auto lending and point-of-sale financing, which has been a key driver of network volume growth [2][11] - The company has improved its credit trends and diversified its funding sources, including more forward flow deals and asset-backed securities (ABS) issuance, which enhances flexibility and reduces reliance on a single funding source [3][11] Financial Performance - The increase in network volume has led to a 26.7% year-over-year rise in network AI fees during the first nine months of 2025, contributing to a total revenue growth of 28.4% year-over-year [4][11] - For the full year 2025, PGY anticipates network volume to reach between $10.5 billion and $10.75 billion, supported by advancements in AI credit models and a scalable ABS platform [5] Market Position and Valuation - PGY's stock has surged by 132.8% this year, contrasting with a 10.1% decline in the industry, indicating strong investor confidence [10] - Currently, PGY trades at a 12-month forward price-to-sales (P/S) ratio of 1.13X, significantly below the industry average of 2.92X over the past three years [12] Earnings Estimates - The Zacks Consensus Estimate for PGY's earnings has increased to $3.10 for 2025 and $3.41 for 2026, reflecting year-over-year growth projections of 273.5% and 10%, respectively [13]