Revenue: As of FY2026 Q1, the actual value is USD 298.99 M, missing the estimate of USD 323.84 M.EPS: As of FY2026 Q1, the actual value is USD 0.28, beating the estimate of USD 0.1975.EBIT: As of FY2026 Q1, the actual value is USD 63.05 M.<h4>Revenue and Other Income</h4>Pagaya Technologies Ltd.’s total revenue and other income increased by $28.0 million, or 10%, to $317.9 million for the three months ended March 31, 2026, compared to $290.0 million for the same period in 2025. This was primarily driven by a rise in revenue from fees and interest income . Revenue from fees grew by $16.3 million, or 6%, to $299.0 million from $282.7 million, primarily due to a $15.4 million increase in Network AI fees and a $1.0 million increase in contract fees . Interest income significantly increased by $10.0 million, or 130%, to $17.7 million from $7.7 million . Investment income, net, turned positive to $1.3 million from a loss of - $391 thousand in the prior year period .<h4>Operational Performance</h4>Production costs increased by $10.5 million, or 6%, to $177.6 million for the three months ended March 31, 2026, compared to $167.1 million in 2025, correlating with a 9.3% increase in Network Volume . Technology, data and product development costs decreased by $3.5 million, or 18%, to $15.9 million, mainly due to a $3.2 million reduction in depreciation expenses and a $0.4 million decrease in consultant expenses . Sales and marketing costs increased by $1.5 million, or 16%, to $11.1 million, primarily due to higher compensation expenses and amortization of intangible assets . General and administrative costs decreased by $12.9 million, or 28%, to $33.3 million, mainly due to a $6.4 million lower loss from loan purchases and a $5.1 million decrease in compensation expenses .Operating income increased to $80.0 million for the three months ended March 31, 2026, from $47.7 million in the prior year . Losses on investments in loans and securities increased by $9.0 million to - $38.0 million, primarily due to a $13.7 million increase in net losses from the redemption of certain investments, partially offset by a $4.2 million decrease in credit-related impairment losses on ABS securities . Other expenses, net, decreased by $3.2 million to - $15.5 million, largely due to a $5.3 million favorable fluctuation in warrant liability fair value and a $1.6 million decrease in interest expense from borrowings . Gains from extinguishment of debt amounted to $767 thousand in the current period, compared to $0 in the prior year . Income before income taxes was $27.3 million, a significant improvement from - $48 thousand in the prior year . Net income attributable to Pagaya Technologies Ltd. increased to $24.7 million from $7.9 million .<h4>Cash Flow</h4>Net cash provided by operating activities increased to $43.2 million for the three months ended March 31, 2026, compared to $34.4 million for the same period in 2025 . Net cash used in investing activities decreased to - $15.9 million from - $26.9 million, primarily due to an increase in proceeds from the maturity and prepayment of investments in loans and securities . Net cash provided by financing activities was $64.2 million, a substantial increase from - $3.8 million in the prior year, driven by proceeds from the revolving credit facility and secured borrowings . Cash and cash equivalents, and restricted cash and cash equivalents, at the end of the period totaled $380.0 million, up from $229.6 million .<h4>Unique Metrics</h4><ul><li>Network Volume: Increased by 9.3% to $2,624 million for the three months ended March 31, 2026, from $2,400 million in the prior year .</li><li>Fee Revenue Less Production Cost (FRLPC): Increased to $121.4 million for the three months ended March 31, 2026, from $115.6 million in the prior year .</li><li>FRLPC %: Decreased to 4.6% from 4.8% .</li><li>Adjusted Net Income: Increased to $67.5 million from $53.2 million .</li><li>Adjusted EBITDA: Increased to $94.2 million from $79.6 million .</li></ul><h4>Future Outlook and Strategy</h4>Pagaya Technologies Ltd. aims to be the leading lending technology partner for the consumer finance ecosystem by scaling new asset types, products, and services, expanding current Partner relationships, and adding new Partners to increase Network Volume . The company plans to leverage its data and AI capabilities to outperform the broader market, improve its cost of capital, and diversify its funding network . Pagaya Technologies Ltd. intends to continue making strategic investments in technology, data, and product development, and expects to fund operations with existing cash, cash generated from operations, and additional secured borrowing, with potential for further equity or debt financing to support future cash needs and strategic transactions .<h4>Subsequent Events (Outlook)</h4>Subsequent to March 31, 2026, Pagaya Technologies Ltd. repaid in full the $114.7 million outstanding balance under its revolving credit facility without penalties . The company also received $65.0 million in proceeds from secured borrowings under existing repurchase agreements . Additionally, Pagaya Technologies Ltd. repurchased $3.8 million of its outstanding 2030 Notes at a price equal to 78.5% of the principal amount, resulting in a $0.7 million net gain on extinguishment of debt .

Pagaya Tech | 10-Q: FY2026 Q1 Revenue Misses Estimate at USD 298.99 M