Pagaya Technologies (NASDAQ:PGY – Get Free Report) posted its earnings results on Thursday. The company reported $1.07 earnings per share for the quarter, beating the consensus estimate of $0.47 by $0.60, FiscalAI reports. Pagaya Technologies had a return on equity of 51.56% and a net margin of 9.12%. The business had revenue of $390.49 million during the quarter, compared to the consensus estimate of $382.10 million. During the same period in the previous year, the business earned $1.02 EPS. The business’s quarterly revenue was up 11.5% on a year-over-year basis.
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 Down 5.7%
Shares of PGY traded down $1.20 during midday trading on Friday, hitting $19.61. 738,780 shares of the company’s stock traded hands, compared to its average volume of 3,381,484. Pagaya Technologies has a 1 year low of $10.40 and a 1 year high of $29.75. The firm’s fifty day moving average is $19.77 and its 200-day moving average is $16.60. The company has a current ratio of 11.08, a quick ratio of 11.08 and a debt-to-equity ratio of 1.12. The stock has a market capitalization of $1.64 billion, a price-to-earnings ratio of 14.41 and a beta of 5.50.
Analysts Set New Price Targets
Several research analysts recently commented on PGY shares. Weiss Ratings reaffirmed a “hold (c-)” rating on shares of Pagaya Technologies in a research report on Monday, September 14th. B. Riley Financial reaffirmed a “buy” rating and set a $38.00 target price (up from $36.00) on shares of Pagaya Technologies in a research report on Friday. TD Cowen lowered their price target on shares of Pagaya Technologies from $26.00 to $25.00 and set a “buy” rating for the company in a research note on Tuesday, October 6th. Canaccord Genuity Group increased 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. Finally, Zacks Research cut Pagaya Technologies from a “strong-buy” rating to a “hold” rating in a report on Monday, September 28th. Two analysts have rated the stock with a Strong Buy rating, eight have given a Buy rating and two have assigned a Hold rating to the company. According to data from MarketBeat, Pagaya Technologies currently has a consensus rating of “Buy” and an average price target of $31.38.
View Our Latest Stock Analysis on PGY
Key Pagaya Technologies News
Here are the key news stories impacting Pagaya Technologies this week:
- Positive Sentiment: Pagaya reported adjusted earnings of $1.07 per share, well above consensus estimates, while GAAP diluted EPS was $0.52. Revenue rose 11.5% year over year to approximately $390.5 million, also exceeding expectations. Pagaya Reports Third Quarter 2026 Results
- Positive Sentiment: Management raised its 2026 GAAP net-income outlook to $162 million-$182 million, signaling greater confidence in profitability. The company said it is prioritizing unit economics and disciplined growth rather than pursuing volume at unfavorable returns. Pagaya forecasts 2026 GAAP net income
- Positive Sentiment: Network volume increased 29% to $3.6 billion, and Pagaya highlighted an expanding bank-partner pipeline. B. Riley reaffirmed its Buy rating and raised its price target from $36 to $38, implying substantial upside from recent trading levels. B. Riley rating and price target
- Neutral Sentiment: The earnings beat has prompted at least one analyst to upgrade Pagaya to Hold, reflecting improved profitability but uncertainty about the pace and quality of future growth. Pagaya profitability upgrade to Hold
- Negative Sentiment: Fourth-quarter 2026 network-volume guidance is lower, while elevated funding costs could pressure margins and limit growth. The more cautious outlook appears to be offsetting some of the benefit from the earnings and guidance beats.
Insider Transactions at Pagaya Technologies
In other news, Director Tami Rosen sold 1,986 shares of the business’s stock in a transaction on Friday, October 2nd. The shares were sold at an average price of $17.83, for a total transaction of $35,410.38. Following the sale, the director directly owned 13,414 shares of the company’s stock, valued at $239,171.62. The trade was a 12.90% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, President Sanjiv Das sold 14,300 shares of the company’s stock in a transaction on Monday, September 28th. The shares were sold at an average price of $17.04, for a total value of $243,672.00. Following the completion of the transaction, the president directly owned 173,864 shares in the company, valued at approximately $2,962,642.56. The trade was a 7.60% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last ninety days, insiders sold 98,117 shares of company stock worth $2,019,059. Company insiders own 41.99% of the company’s stock.
About Pagaya Technologies
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.
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