Pagaya Technologies (NASDAQ:PGY) Announces Quarterly Earnings Results, Beats Expectations By $0.60 EPS

Pagaya Technologies (NASDAQ:PGY) posted its quarterly earnings results on Thursday. The company reported $1.07 EPS for the quarter, beating analysts’ consensus estimates of $0.47 by $0.60, FiscalAI reports. The company had revenue of $390.49 million during the quarter, compared to analyst estimates of $382.10 million. Pagaya Technologies had a net margin of 10.77% and a return on equity of 52.60%. The firm’s revenue was up 11.5% compared to the same quarter last year. During the same period in the prior year, the business posted $1.02 EPS.

Here are the key takeaways from Pagaya Technologies’ conference call:

• Record profitability and growth: Q3 GAAP net income reached nearly $50 million, up 121% year over year, while network volume grew 29% to $3.6 billion. Adjusted EBITDA increased 22% to $130 million as operating expenses remained essentially flat.
• Partner pipeline is expanding: Citizens Financial Group and FNBO joined the network, bringing Pagaya to six new partners this year and its largest-ever pipeline, which management said is up more than 50% year over year. The company highlighted increasing adoption by larger banks seeking lending products without significant balance-sheet investment.
• Funding and credit indicators remain strong: Pagaya raised $3 billion through ABS transactions, added more than $2 billion of committed capital, and expanded its investor network to over 180 participants. Management cited strong credit performance, including 63 securitization-tranche upgrades and no downgrades in the latest KBRA surveillance reports.
• Higher rates pressured unit economics: Q3 FRLPC as a percentage of network volume fell to 4.1%, the low end of the company’s 4%-5% target range, as funding costs increased. Pagaya raised APRs by 100 basis points for personal loans and 140 basis points for auto loans, expecting the margin to recover toward the midpoint of its target range during 2027.
• Full-year outlook was raised: Management now expects 2026 GAAP net income of $162 million-$182 million, revenue and other income of $1.45 billion-$1.5 billion, and adjusted EBITDA of $465 million-$485 million. Q4 volume is expected to decline seasonally and reflect the full removal of Klarna, although management said Klarna had little impact on profit.

Pagaya Technologies Stock Performance

Shares of PGY stock traded down $1.58 during mid-day trading on Friday, reaching $19.23. 2,411,647 shares of the company’s stock traded hands, compared to its average volume of 2,017,387. The company has a debt-to-equity ratio of 1.12, a quick ratio of 11.08 and a current ratio of 11.08. The firm has a market capitalization of $1.60 billion, a PE ratio of 11.65 and a beta of 5.50. Pagaya Technologies has a 12 month low of $10.40 and a 12 month high of $29.75. The firm has a 50 day moving average price of $19.75 and a two-hundred day moving average price of $16.58.

Pagaya Technologies News Roundup

Here are the key news stories impacting Pagaya Technologies this week:

• Positive Sentiment: Pagaya exceeded estimates with adjusted EPS of $1.07 and revenue of $390.5 million, up 11.5% year over year. Network volume increased 29% to $3.6 billion, while management raised its 2026 GAAP net-income outlook to $162 million-$182 million. Pagaya Reports Third Quarter 2026 Results
• Positive Sentiment: Management cited $2 billion in newly committed capital, an expanding bank-partner pipeline and additional partnerships as support for continued loan-volume growth and resilience across credit cycles. Pagaya forecasts 2026 GAAP net income while expanding bank partner pipeline
• Positive Sentiment: B. Riley reaffirmed its Buy rating and lifted its price target to $38 from $36, citing substantial potential upside. B. Riley Financial rating
• Neutral Sentiment: Some analysts view PGY as undervalued at roughly five times projected 2027 earnings, though the stock remains exposed to the market’s broader discount for fintech companies. Pagaya Technologies: Stuck In The Fintech Discount Isle
• Negative Sentiment: Management’s fourth-quarter network-volume guidance is lower, and higher funding costs are pressuring margins. Pagaya is prioritizing unit economics over pursuing maximum volume, while raising APRs to improve fee revenue per loan; investors may interpret those measures as signs of near-term growth constraints. Pagaya: I Was Wrong On Profitability, Upgrading To Hold

Analyst Ratings Changes

A number of research firms recently issued reports on PGY. Weiss Ratings reissued a “hold (c-)” rating on shares of Pagaya Technologies in a research note on Monday, September 14th. TD Cowen lifted their price target on Pagaya Technologies from $25.00 to $27.00 and gave the company a “buy” rating in a research report on Friday. Citizens Jmp increased their price objective on Pagaya Technologies from $22.00 to $25.00 and gave the stock a “market outperform” rating in a report on Friday, July 31st. Jefferies Financial Group upped their price objective on shares of Pagaya Technologies from $23.00 to $27.00 and gave the stock a “buy” rating in a report on Tuesday, August 18th. Finally, Canaccord Genuity Group lifted their price target on Pagaya Technologies from $32.00 to $36.00 and gave the stock a “buy” rating in a research report on Friday, July 31st. Two equities research analysts have rated the stock with a Strong Buy rating, eight have assigned a Buy rating and two have given a Hold rating to the stock. According to MarketBeat.com, the company presently has an average rating of “Buy” and an average target price of $31.62.

Insider Transactions at Pagaya Technologies

In related news, CAO Cory Vieira sold 2,170 shares of the business’s stock in a transaction that occurred on Monday, September 28th. The stock was sold at an average price of $17.04, for a total transaction of $36,976.80. Following the completion of the transaction, the chief accounting officer directly owned 25,160 shares in the company, valued at approximately $428,726.40. The trade was a 7.94% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, President Sanjiv Das sold 21,289 shares of the firm’s stock in a transaction that occurred on Monday, August 3rd. The stock was sold at an average price of $22.00, for a total transaction of $468,358.00. Following the sale, the president owned 144,186 shares in the company, valued at approximately $3,172,092. The trade was a 12.87% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold 98,117 shares of company stock valued at $2,019,059 over the last quarter. 41.99% of the stock is currently owned by company insiders.

Pagaya Technologies Company Profile

Pagaya Technologies Ltd. is a financial technology company that uses artificial intelligence and machine learning to help financial institutions expand access to credit and other financial products. Its technology platform analyzes large volumes of data to evaluate assets, identify investment opportunities and support lending decisions.

The company works with banks, lenders and other financial institutions, as well as institutional investors. Through its network-based platform, Pagaya helps partners originate loans and other assets while connecting those assets with institutional funding and capital markets solutions.