--- title: "PAGAYA TECHNOLOGIES LTD C/WTS (TO PUR COM) | 10-Q: FY2026 Q1 Revenue: USD 298.99 M" type: "News" locale: "en" url: "https://longbridge.com/en/news/285614989.md" datetime: "2026-05-07T20:39:25.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/285614989.md) - [en](https://longbridge.com/en/news/285614989.md) - [zh-HK](https://longbridge.com/zh-HK/news/285614989.md) --- # PAGAYA TECHNOLOGIES LTD C/WTS (TO PUR COM) | 10-Q: FY2026 Q1 Revenue: USD 298.99 M 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. #### Overview of Financial Performance and Operational Metrics 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 . #### Key Operating Metric 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 . #### Revenue and Other Income 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 . #### Costs and Operating Expenses 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 . #### Operating Income and Other Items - **Operating Income**: Operating Income increased to $80,005 thousand in Q1 2026 from $47,685 thousand in Q1 2025 . - **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 . - **Other Expenses, Net**: Other expenses, net decreased by 17% to - $15,466 thousand in Q1 2026 from - $18,709 thousand in Q1 2025 . - **Gains from Extinguishment of Debt**: A gain of $767 thousand was recognized in Q1 2026 . - **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 . - **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 . - **Net Income Including Noncontrolling Interests**: Net income increased to $24,161 thousand in Q1 2026 from $2,492 thousand in Q1 2025 . - **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 . - **Net Income Attributable to Pagaya Technologies Ltd.**: Increased to $24,694 thousand in Q1 2026 from $7,893 thousand in Q1 2025 . #### Non-GAAP Financial Measures - **Fee Revenue Less Production Cost (FRLPC)**: Increased to $121,430 thousand in Q1 2026 from $115,621 thousand in Q1 2025 . - **FRLPC %**: Decreased slightly to 4.6% in Q1 2026 from 4.8% in Q1 2025 . - **Adjusted Net Income**: Increased to $67,496 thousand in Q1 2026 from $53,189 thousand in Q1 2025 . - **Adjusted EBITDA**: Increased to $94,166 thousand in Q1 2026 from $79,583 thousand in Q1 2025 . #### Cash Flow - **Net cash provided by operating activities**: $43,184 thousand in Q1 2026, compared to $34,427 thousand in Q1 2025 . - **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 . - **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 . #### Investments and Borrowings - **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 . - **Risk Retention**: Total Risk Retention was $489,172 thousand as of March 31, 2026, and $504,258 thousand as of December 31, 2025 . - **Additional Investments**: Total Additional Investments were $452,195 thousand as of March 31, 2026, and $441,011 thousand as of December 31, 2025 . - **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 . #### Commitments and Contingencies 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 . #### Future Outlook and Strategy 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 . ### Related Stocks - [PGYWW.US](https://longbridge.com/en/quote/PGYWW.US.md) ## Related News & Research - [Ta Yang exits loss-making UK unit but keeps London foothold via asset swap](https://longbridge.com/en/news/286588935.md) - [OMNICOM TO PRESENT AT THE J.P. MORGAN GLOBAL TECHNOLOGY, MEDIA AND COMMUNICATIONS CONFERENCE | OMC Stock News](https://longbridge.com/en/news/286281406.md) - [Watts Water Technologies, Inc. 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