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Pagaya Gains as Q1 Earnings Beat on Higher Revenues, Guidance Raised
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Key Takeaways
PGY posted Q1 adjusted EPS of 73 cents, topping estimates as revenues rose 9.6% y/y.
Pagaya's network volume climbed 9% y/y to $2.6B, driven by Auto and POS growth.
PGY raised its 2026 GAAP net income view to $110-$160M and EBITDA outlook to $420-$460M.
Shares of Pagaya Technologies (PGY - Free Report) gained 4.5% following the release of the company’s better-than-expected first-quarter 2026 results and a raised 2026 outlook. Adjusted earnings per share of 73 cents surpassed the Zacks Consensus Estimate of 48 cents. The bottom line improved 5.8% from the prior-year quarter.
Results were primarily aided by an improvement in total revenues, along with lower operating expenses. Growth in network volume was robust, which supported the results.
Net income attributable to Pagaya (GAAP basis) was $24.7 million, up significantly from $7.9 million in the prior-year quarter.
PGY’s Revenues Improve, Expenses Decline
Total revenues and other income were $317.9 million, up 9.6% year over year. The increase was driven by a significant rise in interest income. Also, higher revenues from fees and a net investment income of $1.3 million supported the rise. However, the top line missed the Zacks Consensus Estimate of $320.5 million.
Total costs and operating expenses declined 1.8% year over year to $237.9 million. The fall was led by lower technology, data and product development costs, and general and administrative costs.
The company recorded network volume of $2.6 billion, which grew 9% year over year, driven by growth in Auto and Point-of-Sale verticals.
Revenue from fees less production costs (FRLPC) of $121 million increased 5% year over year.
FRLPC as a percentage of network volume contracted by 19 basis points (bps) year over year to 4.6%, driven by asset class mix, new partner contributions and tighter pricing on the company’s asset-backed securities (ABS) transactions, reflecting higher cost of capital and a tighter pricing in light of market conditions.
PGY’s Balance Sheet Solid
As of March 31, 2026, total assets were $1.65 billion, up 6.6% from Dec. 31, 2025.
As of March 31, 2026, long-term debt was $475 million and shareholders’ equity was $599.2 million.
In the first quarter, the company raised $2.1 billion in ABS funding across four transactions despite market volatility.
PGY Management’s Outlook
Second-Quarter 2026
Management expects network volume of $2.875-$3.075 billion.
Total revenues are expected between $345 million and $365 million.
The adjusted EBITDA is expected to be $100-$115 million and GAAP net income is anticipated to be $25-$45 million.
Full-Year 2026
Network volume of $11.45-$13 billion is expected.
Total revenues are projected to be $1.4-$1.575 billion.
Management raised its full-year net income guidance. It expects GAAP net income of $110-160 million, up from the previously mentioned $100-$150 million. Similarly, adjusted EBITDA is expected to be $420-$460 million, up from the previously mentioned $410-$460 million.
Our Take on Pagaya
Secular growth in embedded credit, rising efficiency, diversified funding sources and broader multi-product adoption will likely continue to drive Pagaya’s scalable and profitable expansion in the near term.
Pagaya Technologies Ltd. Price, Consensus and EPS Surprise
LendingTree, Inc. (TREE - Free Report) reported first-quarter 2026 adjusted net income per share of $1.66, which surpassed the Zacks Consensus Estimate of $1.49. The figure compares favorably with 99 cents reported in the prior-year quarter.
TREE’s results were driven by a rise in revenues. An increase in adjusted EBITDA was an added positive. However, a rise in total costs acted as a spoilsport.
LendingClub Corporation (LC - Free Report) registered first-quarter 2026 earnings of 44 cents per share, beating the Zacks Consensus Estimate of 38 cents. The bottom line compared favorably with 10 cents in the prior-year quarter.
LC’s results were aided by a rise in revenues and lower provisions. However, higher expenses hurt the results to some extent.
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Pagaya Gains as Q1 Earnings Beat on Higher Revenues, Guidance Raised
Key Takeaways
Shares of Pagaya Technologies (PGY - Free Report) gained 4.5% following the release of the company’s better-than-expected first-quarter 2026 results and a raised 2026 outlook. Adjusted earnings per share of 73 cents surpassed the Zacks Consensus Estimate of 48 cents. The bottom line improved 5.8% from the prior-year quarter.
Results were primarily aided by an improvement in total revenues, along with lower operating expenses. Growth in network volume was robust, which supported the results.
Net income attributable to Pagaya (GAAP basis) was $24.7 million, up significantly from $7.9 million in the prior-year quarter.
PGY’s Revenues Improve, Expenses Decline
Total revenues and other income were $317.9 million, up 9.6% year over year. The increase was driven by a significant rise in interest income. Also, higher revenues from fees and a net investment income of $1.3 million supported the rise. However, the top line missed the Zacks Consensus Estimate of $320.5 million.
Total costs and operating expenses declined 1.8% year over year to $237.9 million. The fall was led by lower technology, data and product development costs, and general and administrative costs.
The company recorded network volume of $2.6 billion, which grew 9% year over year, driven by growth in Auto and Point-of-Sale verticals.
Revenue from fees less production costs (FRLPC) of $121 million increased 5% year over year.
FRLPC as a percentage of network volume contracted by 19 basis points (bps) year over year to 4.6%, driven by asset class mix, new partner contributions and tighter pricing on the company’s asset-backed securities (ABS) transactions, reflecting higher cost of capital and a tighter pricing in light of market conditions.
PGY’s Balance Sheet Solid
As of March 31, 2026, total assets were $1.65 billion, up 6.6% from Dec. 31, 2025.
As of March 31, 2026, long-term debt was $475 million and shareholders’ equity was $599.2 million.
In the first quarter, the company raised $2.1 billion in ABS funding across four transactions despite market volatility.
PGY Management’s Outlook
Second-Quarter 2026
Management expects network volume of $2.875-$3.075 billion.
Total revenues are expected between $345 million and $365 million.
The adjusted EBITDA is expected to be $100-$115 million and GAAP net income is anticipated to be $25-$45 million.
Full-Year 2026
Network volume of $11.45-$13 billion is expected.
Total revenues are projected to be $1.4-$1.575 billion.
Management raised its full-year net income guidance. It expects GAAP net income of $110-160 million, up from the previously mentioned $100-$150 million. Similarly, adjusted EBITDA is expected to be $420-$460 million, up from the previously mentioned $410-$460 million.
Our Take on Pagaya
Secular growth in embedded credit, rising efficiency, diversified funding sources and broader multi-product adoption will likely continue to drive Pagaya’s scalable and profitable expansion in the near term.
Pagaya Technologies Ltd. Price, Consensus and EPS Surprise
Pagaya Technologies Ltd. price-consensus-eps-surprise-chart | Pagaya Technologies Ltd. Quote
Currently, PGY carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of PGY’s Peers
LendingTree, Inc. (TREE - Free Report) reported first-quarter 2026 adjusted net income per share of $1.66, which surpassed the Zacks Consensus Estimate of $1.49. The figure compares favorably with 99 cents reported in the prior-year quarter.
TREE’s results were driven by a rise in revenues. An increase in adjusted EBITDA was an added positive. However, a rise in total costs acted as a spoilsport.
LendingClub Corporation (LC - Free Report) registered first-quarter 2026 earnings of 44 cents per share, beating the Zacks Consensus Estimate of 38 cents. The bottom line compared favorably with 10 cents in the prior-year quarter.
LC’s results were aided by a rise in revenues and lower provisions. However, higher expenses hurt the results to some extent.