--- title: "PAGAYA TECHNOLOGIES LTD C/WTS (TO PUR COM) | 8-K: FY2026 Q1 Revenue: USD 317.94 M" type: "News" locale: "en" url: "https://longbridge.com/en/news/285536110.md" datetime: "2026-05-07T11:06:47.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/285536110.md) - [en](https://longbridge.com/en/news/285536110.md) - [zh-HK](https://longbridge.com/zh-HK/news/285536110.md) --- # PAGAYA TECHNOLOGIES LTD C/WTS (TO PUR COM) | 8-K: FY2026 Q1 Revenue: USD 317.94 M Revenue: As of FY2026 Q1, the actual value is USD 317.94 M. EPS: As of FY2026 Q1, the actual value is USD 0.28. EBIT: As of FY2026 Q1, the actual value is USD 82 M. ### Segment Revenue - **Total Revenue and Other Income**: Pagaya Technologies Ltd. reported total revenue and other income of $317,944 thousand in Q1 2026, marking a 10% year-over-year increase from $289,989 thousand in Q1 2025 . This figure was within the outlook of $315 million to $335 million . Revenue from fees grew 6% to $299 million . - **Revenue from Fees Less Production Costs (FRLPC)**: FRLPC increased 5% year-over-year to $121,430 thousand in Q1 2026, up from $115,621 thousand in Q1 2025 . - **FRLPC as a % of Network Volume (FRLPC %)**: This metric contracted by 19 basis points year-over-year to 4.6% in Q1 2026, from 4.8% in Q1 2025 . - **Interest Income**: Interest income grew 130% year-over-year, reaching $17,666 thousand in Q1 2026 compared to $7,676 thousand in Q1 2025 . Interest and investment income almost doubled in the period . ### Operational Metrics - **GAAP Net Income Attributable to Pagaya Shareholders**: Pagaya Technologies Ltd. recorded $24,694 thousand in Q1 2026, an improvement from $7,893 thousand in Q1 2025 . This was within the outlook of $15 million to $35 million . The company achieved an 8% margin for GAAP net income . - **Adjusted EBITDA**: Adjusted EBITDA increased by 18% year-over-year to $94,166 thousand in Q1 2026, up from $79,583 thousand in Q1 2025 . This figure was within the outlook of $80 million to $95 million , and exceeded it according to another source . Adjusted EBITDA margin rose over 2 points to 30% . - **Operating Income**: Operating income grew 68% year-over-year to $80,005 thousand in Q1 2026, compared to $47,685 thousand in Q1 2025 . - **Operating Costs**: Total Costs and Operating Expenses were $237,939 thousand in Q1 2026, a decrease from $242,304 thousand in Q1 2025 . - Production costs were $177,561 thousand in Q1 2026, up from $167,083 thousand in Q1 2025 . - Technology, data and product development expenses were $15,940 thousand in Q1 2026, down from $19,444 thousand in Q1 2025 . - Sales and marketing expenses were $11,132 thousand in Q1 2026, up from $9,594 thousand in Q1 2025 . - General and administrative expenses decreased to $33,306 thousand in Q1 2026 from $46,183 thousand in Q1 2025 . - Core operating expenses were flat sequentially and $3 million higher compared to the same quarter last year, representing 39% of FRLPC . - **Gains and (Losses) on Investments in Loans and Securities**: This resulted in a loss of -$37,996 thousand in Q1 2026, compared to a loss of -$29,024 thousand in Q1 2025 . The fair value of the overall investment portfolio and allowances was adjusted downward by -$21 million in Q1, compared to -$50 million in the prior quarter . - **Other Expense, Net**: This amounted to -$15,466 thousand in Q1 2026, an improvement from -$18,709 thousand in Q1 2025 . - **Income Tax Expense (Benefit)**: The company reported an income tax expense of $3,149 thousand in Q1 2026, compared to a benefit of -$2,540 thousand in Q1 2025 . - **Adjusted Net Income**: Adjusted net income was $67,496 thousand in Q1 2026, up from $53,189 thousand in Q1 2025 . ### Cash Flow - **Net Cash Provided by Operating Activities**: Pagaya Technologies Ltd. generated $43,184 thousand in net cash from operating activities in Q1 2026, an increase from $34,427 thousand in Q1 2025 . - **Net Cash Used in Investing Activities**: Net cash used in investing activities was -$15,916 thousand in Q1 2026, an improvement from -$26,886 thousand in Q1 2025 . - **Net Cash Provided by (Used in) Financing Activities**: The company reported $64,235 thousand in net cash provided by financing activities in Q1 2026, compared to -$3,779 thousand in Q1 2025 . - **Net Increase in Cash and Cash Equivalents, and Restricted Cash and Cash Equivalents**: This amounted to $91,682 thousand in Q1 2026, significantly up from $3,116 thousand in Q1 2025 . - **Cash and Cash Equivalents**: Cash and cash equivalents were $317,813 thousand as of March 31, 2026, compared to $235,329 thousand as of December 31, 2025 . ### Unique Metrics - **Network Volume**: Network volume reached $2.6 billion in Q1 2026, up 9% year-over-year, or 23% excluding single-family rental (SFR), driven by growth in Auto and Point-of-Sale verticals . This was within the outlook of $2.5 billion to $2.7 billion . - **ABS Funding**: Pagaya Technologies Ltd. raised $2.1 billion in ABS funding across four transactions during the quarter . The company also closed its first ~$450 million RPM resecuritization ABS and achieved its first AAA Fitch Rating on a $368 million PAID resecuritization . - **Partner Onboarding**: Year-to-date, Pagaya Technologies Ltd. onboarded four new partners across all three asset classes . - **Application-to-volume conversion**: This metric fell below 1% due to proactive cuts and underwriting of higher-quality borrowers . - **Personal Loans**: Personal Loans represented 63% of total production this quarter . - **Auto volumes**: Auto volumes reached a record high annualized run rate of $2.3 billion, significantly increasing compared to Q1 2025 . - **Total Assets**: Total Assets were $1,648,643 thousand as of March 31, 2026, compared to $1,545,914 thousand as of December 31, 2025 . - **Investments in Loans and Securities at fair value**: These were $941,367 thousand as of March 31, 2026, compared to $945,269 thousand as of December 31, 2025 . - **Corporate Notes Repurchased**: Pagaya repurchased -$7 million of corporate notes in February and -$4 million in April . - **Credit Performance**: Credit performance remained in line with underwriting expectations across all verticals . Personal loans cumulative net losses (CNLs) for quarterly vintages from Q4 2024 through Q3 2025 are trending approximately 30% - 35% lower than historically peak levels in Q4 2021 at month-on-book (MOB) 5 - 14 . Auto loans CNLs across the same vintages are trending approximately 40% - 60% below comparable 2022 periods at MOB 5 - 14 . Credit trends for Point-of-Sale (POS) remained stable and in line with expectations . ### Outlook / Guidance For the second quarter of 2026, Pagaya Technologies Ltd. expects network volume between $2.875 billion and $3.075 billion, total revenue and other income between $345 million and $365 million, Adjusted EBITDA between $100 million and $115 million, and GAAP net income between $25 million and $45 million . For the full year 2026, the company anticipates network volume between $11.45 billion and $13 billion, total revenue and other income between $1.4 billion and $1.575 billion, Adjusted EBITDA between $420 million and $460 million, and GAAP net income between $110 million and $160 million . The company also raised its full-year net income guidance and expects FRLPC as a percentage of network volume to be between 4.0% and 5.0% for the full year 2026 . ### Related Stocks - [PGYWW.US](https://longbridge.com/en/quote/PGYWW.US.md) ## Related News & Research - [Apollo Clarifies Legal Status of Recent 8-K Disclosure](https://longbridge.com/en/news/286564452.md) - [FS KKR Capital to post investor presentations on website after market close](https://longbridge.com/en/news/286815114.md) - [Capital City Bank Group posts Q1 2026 investor presentation on website](https://longbridge.com/en/news/286599786.md) - [Watts Water Technologies, Inc. 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