PGY Pagaya Technologies Ltd

Pagaya Technologies Ltd. (NASDAQ: PGY) (“Pagaya”, the “Company” or “we”), a global technology company delivering artificial intelligence infrastructure for the financial ecosystem, today announced financial results for the third quarter and nine months ended 2024.

For additional information, view Pagaya's third quarter 2024 letter to shareholders here.

"We delivered another set of strong results, with a laser-focus on profitable, sustainable growth,” said Gal Krubiner, co-founder and CEO of Pagaya Technologies. “With successful execution of our 2024 strategy, we are well on the way to reaching GAAP profitability and cash flow generation during 2025. We have built a franchise that we believe can deliver long-term value for our shareholders, lending and funding partners, and U.S. consumers."

Third Quarter 2024 Highlights

All comparisons are made versus the same period in 2023 and on a year-over-year basis unless otherwise stated.

• Network volume of $2.4 billion (in line with outlook of $2.3 billion to $2.5 billion) grew by 11% year-over-year.
• Continued to grow volumes with existing partners and advance our sales pipeline. Growth of existing partners led to personal loan network volume growth of 15% and point-of-sale (“POS”) network volume growth of 67% year-over-year. The onboarding of a top 5 bank by total assets in our POS vertical continues to progress. Elavon, U.S. Bank’s POS business, is now live on the Pagaya network.
• Record total revenue and other income of $257 million (in line with outlook of $250 million to $260 million) increased by 21% year-over-year, driven by a 24% increase in revenue from fees.
• GAAP operating income of $22 million grew by $22 million year-over-year.
• Record fee generation and operating leverage as we drive profitable growth. FRLPC as a % of network volume reached a record 4.3%, reflecting the growing value we are delivering for our lending partners. Ongoing operating leverage is enhancing flow-through of fees to our bottom-line, with core operating expenses as a % of FRLPC reaching its lowest level since the Company went public, at 52%.
• Net loss attributable to Pagaya shareholders of $67 million was impacted by non-cash items such as fair value adjustments and share-based compensation expense.
• Record adjusted EBITDA of $56 million (in line with outlook of $50 million to $60 million) grew $28 million year-over-year, with Adjusted EBITDA margin up 846 basis points to 21.8%.
• Adjusted net income of $33 million, which excludes the impact of non-cash items such as share-based compensation expense and fair value adjustments, grew by $19 million year-over-year.
• Reached our lowest risk retention level in 2 years, at 2-3% of network volume by the end of the third quarter, as the result of structural improvements in our ABS program and broadening our funding sources to capital-efficient channels such as forward flow, pass-through certificate programs, and managed funds.
• Announced transactions to de-risk the balance sheet and reduce interest expense, by refinancing high-cost borrowings and unlocking additional balance sheet liquidity of up to $100 million in the form of excess cash and the release of high-quality collateral.
• Cash flow from operating activities of ($2) million was impacted by one-time items.

Full Year 2024 Outlook

 

FY24

Network Volume

Expected to be between $9.5 billion and $9.7 billion

Total Revenue and Other Income

Expected to be between $1,010 million and $1,025 million

Adjusted EBITDA

Expected to be between $195 million and $205 million

Webcast

The Company will hold a webcast and conference call today, November 12, 2024, at 8:30 a.m. Eastern Time. A live webcast of the call will be available via the Investor Relations section of the Company’s website at investor.pagaya.com. To listen to the live webcast, please go to the site at least five minutes prior to the scheduled start time in order to register, download and install any necessary audio software. Shortly before the call, the accompanying materials will be made available on the Company’s website. Shortly after the call, a replay of the webcast will be available for 90 days on the Company’s website.

The conference call can also be accessed by dialing 1-877-407-9208 or 1-201-493-6784. The telephone replay can be accessed by dialing 1-844-512-2921 or 1-412-317-6671 and providing the conference ID# 13749063. The telephone replay will be available starting shortly after the call until Tuesday, November 26, 2024. A replay will also be available on the Investor Relations website following the call.

About Pagaya Technologies

Pagaya (NASDAQ: PGY) is a global technology company making life-changing financial products and services available to more people nationwide. By using machine learning, a vast data network and an AI-driven approach, Pagaya provides comprehensive consumer credit and residential real estate solutions for its partners, their customers, and investors. Its proprietary API and capital solutions integrate into its network of partners to deliver seamless user experiences and greater access to the mainstream economy. Pagaya has offices in New York and Tel Aviv. For more information, visit pagaya.com.

Cautionary Note About Forward-Looking Statements

This document contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, that involve risks and uncertainties. These forward-looking statements generally are identified by the words “anticipate,” “believe,” “continue,” “can,” “could,” “estimate,” “expect,” “intend,” “may,” “opportunity,” “future,” “strategy,” “might,” “outlook,” “plan,” “possible,” “potential,” “predict,” “project,” “should,” “strive,” “will,” “would,” “will be,” “will continue,” “will likely result,” and similar expressions. All statements other than statements of historical fact are forward-looking statements, including statements regarding: The Company’s strategy and future operations, including the Company’s ability to continue to deliver consistent results for its lending partners and investors; the Company’s ability to continue to drive sustainable gains in profitability; the Company’s ability to achieve continued momentum in its business; and the Company’s financial outlook for Network Volume, Total Revenue and Other Income and Adjusted EBITDA for the fourth quarter of 2024 and the full year 2024. These forward-looking statements involve known and unknown risks, uncertainties and other important factors that may cause the Company's actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Risks, uncertainties and assumptions include factors relating to: the Company's ability to attract new partners and to retain and grow its relationships with existing partners to support the underlying investment needs for its securitizations and other funding products; the need to maintain a consistently high level of trust in its brand; the concentration of a large percentage of its investment revenue with a small number of partners and platforms; its ability to sustain its revenue growth rate or the growth rate of its related key operating metrics; its ability to improve, operate and implement its technology, its existing funding arrangements for the Company and its affiliates that may not be renewed or replaced or its existing funding sources that may be unwilling or unable to provide funding to it on terms acceptable to it, or at all; the performance of loans facilitated through its model; changes in market interest rates; its securitizations, warehouse credit facility agreements; the impact on its business of general economic conditions, including, but not limited to interest rates, inflation, supply chain disruptions, exchange rate fluctuations and labor shortages; the effect of and uncertainties related to public health crises such as the COVID-19 pandemic (including any government responses thereto); geopolitical conflicts such as the war in Israel; its ability to realize the potential benefits of past or future acquisitions; anticipated benefits and savings from our recently announced reduction in workforce; changes in the political, legal and regulatory framework for AI technology, machine learning, financial institutions and consumer protection; the ability to maintain the listing of our securities on Nasdaq; the financial performance of its partners, and fluctuations in the U.S. consumer credit and housing market; its ability to grow effectively through strategic alliances; seasonal fluctuations in our revenue as a result of consumer spending and saving patterns; pending and future litigation, regulatory actions and/or compliance issues including with respect to the merger with EJF Acquisition Corp.; and other risks that are described in the Company’s Form 10-K filed on April 25, 2024 and subsequent filings with the U.S. Securities and Exchange Commission. These forward-looking statements reflect the Company's views with respect to future events as of the date hereof and are based on assumptions and subject to risks and uncertainties. Given these uncertainties, investors should not place undue reliance on these forward-looking statements. The forward-looking statements are made as of the date hereof, reflect the Company’s current beliefs and are based on information currently available as of the date they are made, and the Company assumes no obligation and does not intend to update these forward-looking statements.

Financial Information; Non-GAAP Financial Measures

Some of the unaudited financial information and data contained in this press release and Form 8-K, such as Fee Revenue Less Production Costs (“FRLPC”), FRLPC as a percentage of network volume (or FRLPC %), Adjusted EBITDA and Adjusted Net Income (Loss), have not been prepared in accordance with United States generally accepted accounting principles (“U.S. GAAP”). To supplement the unaudited consolidated financial statements prepared and presented in accordance with U.S. GAAP, management uses the non-GAAP financial measures FRLPC, FRLPC as a percentage of network volume (or FRLPC %), Adjusted Net Income (Loss) and Adjusted EBITDA to provide investors with additional information about our financial performance and to enhance the overall understanding of the results of operations by highlighting the results from ongoing operations and the underlying profitability of our business. Management believes these non-GAAP measures provide an additional tool for investors to use in comparing our core financial performance over multiple periods. However, non-GAAP financial measures have limitations in their usefulness to investors because they have no standardized meaning prescribed by U.S. GAAP and are not prepared under any comprehensive set of accounting rules or principles. In addition, non-GAAP financial measures may be calculated differently from, and therefore may not be directly comparable to, similarly titled measures used by other companies. As a result, non-GAAP financial measures should be viewed as supplementing, and not as an alternative or substitute for, our unaudited consolidated financial statements prepared and presented in accordance with U.S. GAAP. To address these limitations, management provides a reconciliation of Adjusted Net Income (Loss) and Adjusted EBITDA to net income (loss) attributable to Pagaya’s shareholders and a calculation of FRLPC and FRLPC as a percentage of network volume (or FRLPC %). Management encourages investors and others to review our financial information in its entirety, not to rely on any single financial measure and to view Adjusted Net Income (Loss) and Adjusted EBITDA in conjunction with its respective related GAAP financial measures.

Non-GAAP financial measures include the following items:

Fee Revenue Less Production Costs (“FRLPC”) is defined as revenue from fees less production costs. FRLPC as a percentage of network volume (or FRLPC %) is defined as FRLPC divided by Network Volume.

Adjusted Net Income (Loss) is defined as net income (loss) attributable to Pagaya Technologies Ltd.’s shareholders excluding share-based compensation expense, change in fair value of warrant liability, impairment, including credit-related charges, restructuring expenses, transaction-related expenses, and non-recurring expenses associated with mergers and acquisitions.

Adjusted EBITDA is defined as net income (loss) attributable to Pagaya Technologies Ltd.’s shareholders excluding share-based compensation expense, change in fair value of warrant liability, impairment, including credit-related charges, restructuring expenses, transaction-related expenses, non-recurring expenses associated with mergers and acquisitions, interest expense, depreciation expense, and income tax expense (benefit).

These items are excluded from our Adjusted Net Income (Loss) and Adjusted EBITDA measures because they are noncash in nature, or because the amount and timing of these items is unpredictable, is not driven by core results of operations and renders comparisons with prior periods and competitors less meaningful.

We believe FRLPC, FRLPC as a percentage of network volume (or FRLPC %), Adjusted Net Income (Loss) and Adjusted EBITDA provide useful information to investors and others in understanding and evaluating our results of operations, as well as providing a useful measure for period-to-period comparisons of our business performance. Moreover, we have included FRLPC, FRLPC as a percentage of network volume (or FRLPC %), Adjusted Net Income (Loss) and Adjusted EBITDA because these are key measurements used by our management internally to make operating decisions, including those related to operating expenses, evaluate performance, and perform strategic planning and annual budgeting. However, this non-GAAP financial information is presented for supplemental informational purposes only, should not be considered a substitute for or superior to financial information presented in accordance with U.S. GAAP and may be different from similarly titled non-GAAP financial measures used by other companies. The tables below provide reconciliations of Adjusted EBITDA to Net Loss Attributable to Pagaya Technologies Ltd., its most directly comparable U.S. GAAP amount.

In addition, Pagaya provides outlook for the fourth quarter of 2024 and the fiscal year 2024 on a non-GAAP basis. The Company cannot reconcile its expected Adjusted EBITDA to expected Net Loss Attributable to Pagaya under “Full-Year 2024 Financial Outlook” without unreasonable effort because certain items that impact net income (loss) and other reconciling items are out of the Company's control and/or cannot be reasonably predicted at this time, which unavailable information could have a significant impact on the Company’s U.S. GAAP financial results.

 

PAGAYA TECHNOLOGIES LTD.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

(In thousands, except share and per share data)

 

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

​

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

Revenue

​

 

​

 

 

 

 

Revenue from fees

$

249,283

 

 

$

201,447

 

 

$

728,881

 

 

$

562,386

 

Other Income

 

 

 

 

 

 

 

Interest income

 

8,735

 

 

 

10,375

 

 

 

24,672

 

 

 

30,965

 

Investment income (loss)

 

(784

)

 

 

(65

)

 

 

(699

)

 

 

656

 

Total Revenue and Other Income

 

257,234

 

 

 

211,757

 

 

 

752,854

 

 

 

594,007

 

Production costs

 

148,965

 

 

 

128,792

 

 

 

439,448

 

 

 

374,462

 

Technology, data and product development (1)

 

16,655

 

 

 

18,039

 

 

 

57,970

 

 

 

56,833

 

Sales and marketing (1)

 

11,440

 

 

 

11,339

 

 

 

35,028

 

 

 

40,197

 

General and administrative (1)

 

57,790

 

 

 

53,425

 

 

 

185,307

 

 

 

157,567

 

Total Costs and Operating Expenses

 

234,850

 

 

 

211,595

 

 

 

717,753

 

 

 

629,059

 

Operating Income (Loss)

 

22,384

 

 

 

162

 

 

 

35,101

 

 

 

(35,052

)

Other expense, net

 

(108,139

)

 

 

(47,260

)

 

 

(215,682

)

 

 

(131,135

)

Loss Before Income Taxes

 

(85,755

)

 

 

(47,098

)

 

 

(180,581

)

 

 

(166,187

)

Income tax expense (benefit)

 

(11,524

)

 

 

(1,158

)

 

 

7,991

 

 

 

10,515

 

Net Loss Including Noncontrolling Interests

 

(74,231

)

 

 

(45,940

)

 

 

(188,572

)

 

 

(176,702

)

Less: Net loss attributable to noncontrolling interests

 

(6,755

)

 

 

(24,188

)

 

 

(25,088

)

 

 

(62,682

)

Net Loss Attributable to Pagaya Technologies Ltd.

$

(67,476

)

 

$

(21,752

)

 

$

(163,484

)

 

$

(114,020

)

 

 

 

 

 

 

 

 

Per share data:

 

 

 

 

 

 

 

Net loss per share:

 

 

 

 

 

 

 

Basic and Diluted (3)

$

(0.93

)

 

$

(0.36

)

 

$

(2.35

)

 

$

(1.91

)

 

 

 

 

 

 

 

 

Non-GAAP adjusted net income (2)

$

33,122

 

 

$

14,296

 

 

$

53,641

 

 

$

4,167

 

Non-GAAP adjusted net income per share:

 

 

 

 

 

 

 

Basic (3)

$

0.46

 

 

$

0.24

 

 

$

0.77

 

 

$

0.07

 

Diluted (3)

$

0.44

 

 

$

0.22

 

 

$

0.75

 

 

$

0.07

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding:

 

 

 

 

 

 

 

Basic (3)

 

72,728,667

 

 

 

60,713,648

 

 

 

69,619,813

 

 

 

59,617,660

 

Diluted (3)

 

74,465,363

 

 

 

66,366,055

 

 

 

71,130,891

 

 

 

61,512,327

 

(1)

The following table sets forth share-based compensation for the periods indicated below:

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

 

 

2024

 

 

2023

 

 

2024

 

 

2023

Technology, data and product development

$

1,011

 

$

3,467

 

$

6,985

 

$

8,915

Selling and marketing

 

2,875

 

 

3,469

 

 

9,594

 

 

10,979

General and administrative

 

8,447

 

 

13,801

 

 

29,273

 

 

37,418

Total

$

12,333

 

$

20,737

 

$

45,852

 

$

57,312

(2)

See “Reconciliation of Non-GAAP Financial Measures.”

(3)

Share amounts have been retroactively adjusted to reflect the 1-for-12 reverse share split effected on March 8, 2024.

 

PAGAYA TECHNOLOGIES LTD.

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (UNAUDITED)

(In thousands)

 

 

September 30,

 

December 31,

 

 

2024

 

 

 

2023

 

Assets

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

147,099

 

 

$

186,478

 

Restricted cash

 

17,617

 

 

 

16,874

 

Fees and other receivables

 

98,280

 

 

 

79,526

 

Investments in loans and securities

 

11,251

 

 

 

2,490

 

Prepaid expenses and other current assets

 

24,214

 

 

 

18,034

 

Total current assets

 

298,461

 

 

 

303,402

 

Restricted cash

 

16,331

 

 

 

19,189

 

Fees and other receivables

 

30,783

 

 

 

34,181

 

Investments in loans and securities

 

912,131

 

 

 

714,303

 

Equity method and other investments

 

25,778

 

 

 

26,383

 

Right-of-use assets

 

34,087

 

 

 

55,729

 

Property and equipment, net

 

39,359

 

 

 

41,557

 

Goodwill

 

10,945

 

 

 

10,945

 

Intangible assets

 

638

 

 

 

2,550

 

Prepaid expenses and other assets

 

1,064

 

 

 

137

 

Deferred offering costs

 

1,198

 

 

 

—

 

Total non-current assets

 

1,072,314

 

 

 

904,974

 

Total Assets

$

1,370,775

 

 

$

1,208,376

 

Liabilities and Shareholders’ Equity

 

 

 

Current liabilities:

 

 

 

Accounts payable

$

5,835

 

 

$

1,286

 

Accrued expenses and other liabilities

 

32,550

 

 

 

28,562

 

Current maturities of operating lease liabilities

 

5,491

 

 

 

6,931

 

Current portion of long-term debt

 

12,750

 

 

 

—

 

Secured borrowing

 

195,457

 

 

 

37,685

 

Income taxes payable

 

2,370

 

 

 

461

 

Total current liabilities

 

254,453

 

 

 

74,925

 

Non-current liabilities:

 

 

 

Warrant liability

 

2,884

 

 

 

3,242

 

Revolving credit facility

 

15,000

 

 

 

90,000

 

Long-term debt

 

217,424

 

 

 

—

 

Secured borrowing

 

213,268

 

 

 

234,028

 

Operating lease liabilities

 

27,693

 

 

 

43,940

 

Long-term tax liabilities

 

22,839

 

 

 

22,135

 

Deferred tax liabilities, net

 

189

 

 

 

107

 

Total non-current liabilities

 

499,297

 

 

 

393,452

 

Total Liabilities

 

753,750

 

 

 

468,377

 

Redeemable convertible preferred shares

 

74,250

 

 

 

74,250

 

Shareholders’ equity:

 

 

 

Additional paid-in capital

 

1,258,862

 

 

 

1,101,914

 

Accumulated other comprehensive income (loss)

 

(90,432

)

 

 

444

 

Accumulated deficit

 

(706,121

)

 

 

(542,637

)

Total Pagaya Technologies Ltd. shareholders’ equity

 

462,309

 

 

 

559,721

 

Noncontrolling interests

 

80,466

 

 

 

106,028

 

Total shareholders’ equity

 

542,775

 

 

 

665,749

 

Total Liabilities, Redeemable Convertible Preferred Shares, and Shareholders’ Equity

$

1,370,775

 

 

$

1,208,376

 

 

PAGAYA TECHNOLOGIES LTD.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

(In thousands)

 

​

Nine Months Ended September 30,

​

 

2024

 

 

 

2023

 

Cash flows from operating activities

​

 

 

Net loss including noncontrolling interests

$

(188,572

)

 

$

(176,702

)

Adjustments to reconcile net income (loss) to net cash used in operating activities:

 

 

 

Equity method (income) loss

 

699

 

 

 

(655

)

Depreciation and amortization

 

20,475

 

 

 

13,161

 

Share-based compensation

 

45,852

 

 

 

57,312

 

Fair value adjustment to warrant liability

 

(358

)

 

 

3,763

 

Impairment loss on investments in loans and securities

 

155,960

 

 

 

115,644

 

Write-off of capitalized software

 

3,145

 

 

 

1,935

 

Tax benefit related to release of valuation allowance

 

—

 

 

 

(1,162

)

Long-term debt issuance costs amortization

 

2,065

 

 

 

—

 

Loss (gain) on foreign exchange

 

4,178

 

 

 

(302

)

Other non-cash items

 

367

 

 

 

—

 

Change in operating assets and liabilities:

 

 

 

Fees and other receivables

 

(15,332

)

 

 

(7,666

)

Deferred tax liabilities, net

 

82

 

 

 

13

 

Prepaid expenses and other assets

 

(8,213

)

 

 

1,812

 

Right-of-use assets

 

1,462

 

 

 

6,435

 

Accounts payable

 

4,607

 

 

 

(374

)

Accrued expenses and other liabilities

 

4,121

 

 

 

(16,682

)

Operating lease liability

 

(441

)

 

 

(6,433

)

Income tax / long-term tax liabilities

 

4,360

 

 

 

529

 

Net cash provided by (used in) operating activities

 

34,457

 

 

 

(9,372

)

Cash flows from investing activities

 

 

 

Proceeds from the sale/maturity/prepayment of:

 

 

 

Investments in loans and securities

 

89,905

 

 

 

134,101

 

Equity method and other investments

 

31

 

 

 

—

 

Cash and restricted cash acquired from Darwin Homes, Inc.

 

—

 

 

 

1,608

 

Payments for the purchase of:

 

 

 

Investments in loans and securities

 

(538,727

)

 

 

(436,242

)

Property and equipment

 

(13,761

)

 

 

(15,555

)

Equity method and other investments

 

(125

)

 

 

—

 

Net cash used in investing activities

 

(462,677

)

 

 

(316,088

)

Cash flows from financing activities

 

 

 

Proceeds from sale of ordinary shares, net of issuance costs

 

89,956

 

 

 

—

 

Proceeds from long-term debt

 

244,725

 

 

 

—

 

Proceeds from issuance of redeemable convertible preferred shares, net

 

—

 

 

 

74,250

 

Proceeds from secured borrowing

 

254,895

 

 

 

314,276

 

Proceeds received from noncontrolling interests

 

2,815

 

 

 

19,235

 

Proceeds from revolving credit facility

 

59,000

 

 

 

110,000

 

Proceeds from exercise of stock options and stock purchase plan

 

3,160

 

 

 

2,538

 

Proceeds from issuance of ordinary shares from the Equity Financing Purchase Agreement

 

11,865

 

 

 

3,793

 

Distributions made to noncontrolling interests

 

(7,892

)

 

 

(39,321

)

Payments made to revolving credit facility

 

(134,000

)

 

 

(25,000

)

Payments made to secured borrowing

 

(117,883

)

 

 

(182,358

)

Payments made to long-term debt

 

(9,563

)

 

 

—

 

Long-term debt issuance costs

 

(7,974

)

 

 

—

 

Payments for deferred offering costs

 

(1,198

)

 

 

—

 

Settlement of share-based compensation in satisfaction of tax withholding requirements

 

—

 

 

 

(650

)

Net cash provided by financing activities

 

387,906

 

 

 

276,763

 

Effect of exchange rate changes on cash, cash equivalents and restricted cash

 

(1,180

)

 

 

(4,201

)

Net increase (decrease) in cash, cash equivalents and restricted cash

 

(41,494

)

 

 

(52,898

)

Cash, cash equivalents and restricted cash, beginning of period

 

222,541

 

 

 

337,076

 

Cash, cash equivalents and restricted cash, end of period

$

181,047

 

 

$

284,178

 

 

PAGAYA TECHNOLOGIES LTD.

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (UNAUDITED)

($ in thousands, unless otherwise noted)

 

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

​

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

Net Loss Attributable to Pagaya Technologies Ltd.

$

(67,476

)

 

$

(21,752

)

 

$

(163,484

)

 

$

(114,020

)

Adjusted to exclude the following:

 

 

 

 

 

 

 

Share-based compensation

 

12,333

 

 

 

20,737

 

 

 

45,852

 

 

 

57,312

 

Fair value adjustment to warrant liability

 

1,213

 

 

 

1,328

 

 

 

(358

)

 

 

3,763

 

Impairment loss on certain investments

 

81,827

 

 

 

9,130

 

 

 

159,489

 

 

 

39,778

 

Write-off of capitalized software

 

584

 

 

 

305

 

 

 

3,145

 

 

 

1,935

 

Restructuring expenses

 

38

 

 

 

484

 

 

 

3,583

 

 

 

5,450

 

Transaction-related expenses

 

1,072

 

 

 

2,472

 

 

 

1,607

 

 

 

4,497

 

Non-recurring expenses

 

3,531

 

 

 

1,592

 

 

 

3,807

 

 

 

5,452

 

Adjusted Net Income

$

33,122

 

 

$

14,296

 

 

$

53,641

 

 

$

4,167

 

Adjusted to exclude the following:

 

 

 

 

 

 

 

Interest expenses

 

27,371

 

 

 

9,918

 

 

 

64,098

 

 

 

19,932

 

Income tax expense (benefit)

 

(11,524

)

 

 

(1,158

)

 

 

7,991

 

 

 

10,515

 

Depreciation and amortization

 

7,116

 

 

 

5,205

 

 

 

20,475

 

 

 

13,189

 

Adjusted EBITDA

$

56,085

 

 

$

28,261

 

 

$

146,205

 

 

$

47,803

 

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

​

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

Fee Revenue Less Production Costs (FRLPC):

 

 

 

 

 

 

 

Revenue from fees

$

249,283

 

 

$

201,447

 

 

$

728,881

 

 

$

562,386

 

Production costs

 

148,965

 

 

 

128,792

 

 

 

439,448

 

 

 

374,462

 

Fee Revenue Less Production Costs (FRLPC)

$

100,318

 

 

$

72,655

 

 

$

289,433

 

 

$

187,924

 

 

 

 

 

 

 

 

 

Fee Revenue Less Production Costs % (FRLPC %):

 

 

 

 

 

 

 

Fee Revenue Less Production Costs (FRLPC)

$

100,318

 

 

$

72,655

 

 

$

289,433

 

 

$

187,924

 

Network Volume (in millions)

 

2,351

 

 

 

2,112

 

 

 

7,101

 

 

 

5,919

 

Fee Revenue Less Production Costs % (FRLPC %)

 

4.3

%

 

 

3.4

%

 

 

4.1

%

 

 

3.2

%

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20241111271660/en/

Investors & Analysts Joshua Fagen Head of Investor Relations IR@pagaya.com

Media & Press Emily Passer Head of PR & External Communications Press@pagaya.com