Revenue: As of FY2026 Q1, the actual value is USD 298.99 M.EPS: As of FY2026 Q1, the actual value is USD 0.28.EBIT: As of FY2026 Q1, the actual value is USD 63.05 M.<h4>Overview of Financial Performance and Operational Metrics</h4>Pagaya Technologies Ltd.’s financial performance for the three months ended March 31, 2026, showed growth in revenue and improved profitability compared to the same period in 2025 .<h4>Key Operating Metric</h4>Network Volume, representing the gross dollar value of assets originated by Partners with the assistance of Pagaya Technologies Ltd.’s AI technology, increased to $2,624 million for the three months ended March 31, 2026, from $2,400 million for the same period in 2025, marking a 9.3% growth .<h4>Revenue and Other Income</h4>Total Revenue and Other Income increased by 10% to $317,944 thousand for the three months ended March 31, 2026, up from $289,989 thousand in the prior year . Revenue from Fees: Total revenue from fees increased by 6% to $298,991 thousand for the three months ended March 31, 2026, from $282,704 thousand in the prior year . Network AI Fees: These fees increased to $266,900 thousand in Q1 2026 from $251,500 thousand in Q1 2025 . Contract Fees: These fees rose to $32,100 thousand in Q1 2026 from $31,200 thousand in Q1 2025 . Performance fee revenue related to prior years was $100 thousand in Q1 2026 and $600 thousand in Q1 2025 . Interest Income: Interest income significantly increased by 130% to $17,666 thousand in Q1 2026 from $7,676 thousand in Q1 2025 . Investment Income (Loss), Net: This segment reported income of $1,287 thousand in Q1 2026, a favorable change from a loss of - $391 thousand in Q1 2025 .<h4>Costs and Operating Expenses</h4>Total Costs and Operating Expenses decreased by 2% to $237,939 thousand in Q1 2026 from $242,304 thousand in Q1 2025 . Production Costs: These costs increased by 6% to $177,561 thousand in Q1 2026 from $167,083 thousand in Q1 2025 . Technology, Data and Product Development: Expenses decreased by -18% to $15,940 thousand in Q1 2026 from $19,444 thousand in Q1 2025 . Capitalized software development costs were $3,600 thousand in Q1 2026 and $4,500 thousand in Q1 2025 . Depreciation expense for capitalized software was $2,200 thousand in Q1 2026 and $6,200 thousand in Q1 2025 . Sales and Marketing: Costs increased by 16% to $11,132 thousand in Q1 2026 from $9,594 thousand in Q1 2025 . General and Administrative: Expenses decreased by -28% to $33,306 thousand in Q1 2026 from $46,183 thousand in Q1 2025 .<h4>Operating Income and Other Items</h4><ul><li>Operating Income: Operating Income increased to $80,005 thousand in Q1 2026 from $47,685 thousand in Q1 2025 .</li><li>Gains and (Losses) on Investments in Loans and Securities: Losses increased by -31% to - $37,996 thousand in Q1 2026 from - $29,024 thousand in Q1 2025 .</li><li>Other Expenses, Net: Other expenses, net decreased by 17% to - $15,466 thousand in Q1 2026 from - $18,709 thousand in Q1 2025 .</li><li>Gains from Extinguishment of Debt: A gain of $767 thousand was recognized in Q1 2026 .</li><li>Income (Loss) Before Income Taxes: The company reported income of $27,310 thousand in Q1 2026, a significant improvement from a loss of - $48 thousand in Q1 2025 .</li><li>Income Tax Expense (Benefit): Income tax expense was $3,149 thousand in Q1 2026, compared to a benefit of - $2,540 thousand in Q1 2025 .</li><li>Net Income Including Noncontrolling Interests: Net income increased to $24,161 thousand in Q1 2026 from $2,492 thousand in Q1 2025 .</li><li>Net Loss Attributable to Noncontrolling Interests: The net loss attributable to noncontrolling interests decreased to - $533 thousand in Q1 2026 from - $5,401 thousand in Q1 2025 .</li><li>Net Income Attributable to Pagaya Technologies Ltd.: Increased to $24,694 thousand in Q1 2026 from $7,893 thousand in Q1 2025 .</li></ul><h4>Non-GAAP Financial Measures</h4><ul><li>Fee Revenue Less Production Cost (FRLPC): Increased to $121,430 thousand in Q1 2026 from $115,621 thousand in Q1 2025 .</li><li>FRLPC %: Decreased slightly to 4.6% in Q1 2026 from 4.8% in Q1 2025 .</li><li>Adjusted Net Income: Increased to $67,496 thousand in Q1 2026 from $53,189 thousand in Q1 2025 .</li><li>Adjusted EBITDA: Increased to $94,166 thousand in Q1 2026 from $79,583 thousand in Q1 2025 .</li></ul><h4>Cash Flow</h4><ul><li>Net cash provided by operating activities: $43,184 thousand in Q1 2026, compared to $34,427 thousand in Q1 2025 .</li><li>Net cash used in investing activities: - $15,916 thousand in Q1 2026, compared to - $26,886 thousand in Q1 2025 . Purchases of investments in loans and securities were - $209,069 thousand in Q1 2026 and - $81,943 thousand in Q1 2025 . Proceeds from maturity and prepayment of investments were $196,329 thousand in Q1 2026 and $58,674 thousand in Q1 2025 .</li><li>Net cash provided by (used in) financing activities: $64,235 thousand in Q1 2026, compared to - $3,779 thousand in Q1 2025 . Proceeds from revolving credit facility were $114,700 thousand in Q1 2026 and $0 in Q1 2025 . Payments made to secured borrowing were - $87,994 thousand in Q1 2026 and - $46,919 thousand in Q1 2025 .</li></ul><h4>Investments and Borrowings</h4><ul><li>Investments in Loans and Securities at Fair Value: Total investments were $941,367 thousand as of March 31, 2026, compared to $945,269 thousand as of December 31, 2025 .<ul><li>Risk Retention: Total Risk Retention was $489,172 thousand as of March 31, 2026, and $504,258 thousand as of December 31, 2025 .</li><li>Additional Investments: Total Additional Investments were $452,195 thousand as of March 31, 2026, and $441,011 thousand as of December 31, 2025 .</li></ul></li><li>Outstanding Borrowings (as of March 31, 2026): Revolving credit facility ($114,700 thousand), Secured borrowing ($156,275 thousand), Exchangeable notes ($149,416 thousand), and Long-term debt ($474,988 thousand) . The weighted average interest rate for secured borrowings was approximately 6% as of March 31, 2026, down from 8% as of December 31, 2025 .</li></ul><h4>Commitments and Contingencies</h4>As of March 31, 2026, total remaining contractual obligations from cloud computing web services providers were approximately $9,200 thousand, with $6,300 thousand due in the next 12 months . The unfunded maximum potential amount of undiscounted future payments under guarantees totaled $135,400 thousand, with $55,500 thousand segregated in restricted cash .<h4>Future Outlook and Strategy</h4>Pagaya Technologies Ltd. plans to continue strategic investments in technology, data, and product development, expecting to fund operations using existing cash, cash generated from operations, and additional secured borrowing . The company may also raise additional capital through debt or equity financing to support liquidity and capital position . Management is actively monitoring macroeconomic conditions and geopolitical instability, implementing remote-work protocols for its Tel Aviv-based team, and aims to refine its AI technology to adapt to changing market dynamics and deliver value .

PAGAYA TECHNOLOGIES LTD C/WTS (TO PUR COM) | 10-Q: FY2026 Q1 Revenue: USD 298.99 M