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