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PGY Gains as Q3 Earnings Beat on Record Revenues, Raises 2026 View
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Key Takeaways
PGY shares gained 1.7% as Q3 earnings beat estimates, with revenues hitting $390.5M.
Record network volume rose 28.7% to $3.61B, driven by growth in auto and personal loans.
PGY raised its 2026 GAAP net income outlook to $162-$182M, with adjusted EBITDA projected at $465-$485M.
Shares of Pagaya Technologies (PGY - Free Report) have gained 1.7% following the release of its third-quarter 2026 results. Quarterly adjusted earnings per share of $1.07 surpassed the Zacks Consensus Estimate of 96 cents. The bottom line improved 4.9% from the prior-year quarter.
Results were aided by record performance across key metrics. The company recorded an improvement in total revenues, which, along with growth in network volumes, primarily supported the results. An increase in production costs hurt the results to some extent.
Net income attributable to Pagaya (GAAP basis) was a record $49.7 million, up significantly from $22.5 million in the prior-year quarter.
PGY’s Revenues Improve, Expenses Rise
Total revenues and other income were a record $390.5 million, up 11.5% year over year. The increase was driven by a rise in interest income and revenues from fees. A decline in net investment loss also supported the rise. The top line surpassed the Zacks Consensus Estimate of $378.1 million.
Total costs and operating expenses increased 2.9% year over year to $277.9 million. The rise was due to higher production costs.
In the third quarter, network volume was a record $3.61 billion, which grew 28.7% year over year, driven by growth in the company’s auto and personal loan verticals, while maintaining focus on prudent underwriting.
Revenue from fees less production costs (FRLPC) was $146.5 million, which increased 5.1% year over year.
FRLPC as a percentage of network volume contracted by 91 basis points (bps) year over year to 4.1%, driven by the short-term impact of higher benchmark rates.
Adjusted EBITDA was a record $130.3 million, up 21.7% year over year, benefiting from growth in FRLPC and operating leverage as the business scales.
PGY’s Balance Sheet Solid
As of Sept. 30, 2026, total assets were $1.80 billion, up 16.3% from Dec. 31, 2025.
Long-term debt was $472.3 million and shareholders’ equity attributable to Pagaya was $622.4 million.
In the third quarter, the company closed more than $2 billion of longer-duration committed capital across an auto forward flow, a personal loan variable funding note warehouse and a revolving personal loan securitization.
PGY Management’s Outlook
Q4
Management expects network volume of $2.961-$3.261 billion.
Total revenues are expected between $355 million and $405 million.
The adjusted EBITDA is expected to be $117-$137 million and GAAP net income is anticipated to be $42-$62 million.
2026
The company raised its 2026 GAAP net income outlook.
Network volume of $12.725-$13.025 billion is expected.
Total revenues are projected to be $1.45-$1.5 billion.
Management raised its full-year net income guidance. It expects GAAP net income of $162-$182 million. Adjusted EBITDA is expected to be $465-$485 million.
Our Take on Pagaya
Growth in network volumes, expansion in the auto and personal loan verticals, new partner additions and diversified funding sources are expected to support Pagaya’s performance in the near term. However, the short-term impacts of higher benchmark rates on FRLPC and risks related to its investments in loans and securities remain concerns.
Pagaya Technologies Ltd. Price, Consensus and EPS Surprise
Upstart Holdings, Inc. (UPST - Free Report) is scheduled to report quarterly results on Nov. 3.
The Zacks Consensus Estimate for UPST’s quarterly earnings has been unchanged at 60 cents over the past week. The figure indicates 15.4% growth from the prior-year quarter’s actual.
Affirm Holdings, Inc. (AFRM - Free Report) is scheduled to report quarterly results on Nov. 5.
The Zacks Consensus Estimate for AFRM’s quarterly earnings has been unchanged at 35 cents over the past week. The figure indicates 52.2% growth from the prior-year quarter’s actual.
View the Zacks #1 Rank List
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PGY Gains as Q3 Earnings Beat on Record Revenues, Raises 2026 View
Key Takeaways
Shares of Pagaya Technologies (PGY - Free Report) have gained 1.7% following the release of its third-quarter 2026 results. Quarterly adjusted earnings per share of $1.07 surpassed the Zacks Consensus Estimate of 96 cents. The bottom line improved 4.9% from the prior-year quarter.
Results were aided by record performance across key metrics. The company recorded an improvement in total revenues, which, along with growth in network volumes, primarily supported the results. An increase in production costs hurt the results to some extent.
Net income attributable to Pagaya (GAAP basis) was a record $49.7 million, up significantly from $22.5 million in the prior-year quarter.
PGY’s Revenues Improve, Expenses Rise
Total revenues and other income were a record $390.5 million, up 11.5% year over year. The increase was driven by a rise in interest income and revenues from fees. A decline in net investment loss also supported the rise. The top line surpassed the Zacks Consensus Estimate of $378.1 million.
Total costs and operating expenses increased 2.9% year over year to $277.9 million. The rise was due to higher production costs.
In the third quarter, network volume was a record $3.61 billion, which grew 28.7% year over year, driven by growth in the company’s auto and personal loan verticals, while maintaining focus on prudent underwriting.
Revenue from fees less production costs (FRLPC) was $146.5 million, which increased 5.1% year over year.
FRLPC as a percentage of network volume contracted by 91 basis points (bps) year over year to 4.1%, driven by the short-term impact of higher benchmark rates.
Adjusted EBITDA was a record $130.3 million, up 21.7% year over year, benefiting from growth in FRLPC and operating leverage as the business scales.
PGY’s Balance Sheet Solid
As of Sept. 30, 2026, total assets were $1.80 billion, up 16.3% from Dec. 31, 2025.
Long-term debt was $472.3 million and shareholders’ equity attributable to Pagaya was $622.4 million.
In the third quarter, the company closed more than $2 billion of longer-duration committed capital across an auto forward flow, a personal loan variable funding note warehouse and a revolving personal loan securitization.
PGY Management’s Outlook
Q4
Management expects network volume of $2.961-$3.261 billion.
Total revenues are expected between $355 million and $405 million.
The adjusted EBITDA is expected to be $117-$137 million and GAAP net income is anticipated to be $42-$62 million.
2026
The company raised its 2026 GAAP net income outlook.
Network volume of $12.725-$13.025 billion is expected.
Total revenues are projected to be $1.45-$1.5 billion.
Management raised its full-year net income guidance. It expects GAAP net income of $162-$182 million. Adjusted EBITDA is expected to be $465-$485 million.
Our Take on Pagaya
Growth in network volumes, expansion in the auto and personal loan verticals, new partner additions and diversified funding sources are expected to support Pagaya’s performance in the near term. However, the short-term impacts of higher benchmark rates on FRLPC and risks related to its investments in loans and securities remain concerns.
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 #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Expected Earnings Release of PGY’s Peers
Upstart Holdings, Inc. (UPST - Free Report) is scheduled to report quarterly results on Nov. 3.
The Zacks Consensus Estimate for UPST’s quarterly earnings has been unchanged at 60 cents over the past week. The figure indicates 15.4% growth from the prior-year quarter’s actual.
Affirm Holdings, Inc. (AFRM - Free Report) is scheduled to report quarterly results on Nov. 5.
The Zacks Consensus Estimate for AFRM’s quarterly earnings has been unchanged at 35 cents over the past week. The figure indicates 52.2% growth from the prior-year quarter’s actual.