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Pagaya Q3 revenue rises 12%, net income more than doubles

By Reuters News


Overview

  • Israel-U.S. AI finance platform's Q3 revenue rose 12% yr/yr to record $390 mln

  • Q3 net income more than doubled yr/yr to $50 mln, driven by revenue growth and lower expenses

  • Adjusted EBITDA for Q3 rose 22% yr/yr to $130 mln on operating leverage and FRLPC growth


Outlook

  • Pagaya raises full-year 2026 GAAP net income guidance to $162 mln-$182 mln

  • Company expects Q4 network volume of $2.961 bln-$3.261 bln

  • Company forecasts Q4 adjusted EBITDA of $117 mln-$137 mln


Result Drivers

  • NETWORK VOLUME GROWTH - Co said 29% yr/yr increase in network volume was driven by growth in Auto and Personal Loan verticals and focus on underwriting

  • FEE AND INTEREST INCOME - Co attributed 12% yr/yr revenue growth to higher fee revenue and interest income

  • OPERATING LEVERAGE - Co said 22% yr/yr adjusted EBITDA growth benefited from FRLPC growth and operating leverage as business scales


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Total Revenue & Other Income

$390 mln

Q3 Net Income

$50 mln

Q3 Adjusted EBITDA

$130 mln


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 12 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the financial technology (fintech) peer group is "buy"

  • Wall Street's median 12-month price target for Pagaya Technologies Ltd. is $28.50, about 39.2% above its October 28 closing price of $20.47

  • The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 11 three months ago


Reuters Recommended Reads

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  • Oct 27 - PayPal CEO touts turnaround progress as annual profit forecast rises

  • Oct 27 - SoFi's shares jump after fintech beats estimates, raises revenue forecast


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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