Pagaya Technologies (PGY) investor relations material

Executive summary

• Achieved fifth consecutive quarter of GAAP net income, reporting $25 million profit in Q1 2026, up $17 million year-over-year, reflecting disciplined execution, revenue growth, lower expenses, and normalized impairments.

• Network volume grew 9% year-over-year to $2.6 billion, driven by expanded partner activity, Auto and Point-of-Sale verticals, and improved AI integration economics.

• Total revenue and other income rose 10% year-over-year to $318 million, with fee revenue up 6% to $299 million and interest income surging 130% to $17.7 million.

• Leadership transition announced: Evangelos Perros stepping down as CFO, succeeded by Jon Dobres, ensuring continuity in financial strategy.

• Adjusted EBITDA reached $94 million, up 18% year-over-year, with margin improving to 30% from 27% in the prior year.

Financial highlights

• Q1 2026 revenue: $318 million, up 10% year-over-year; fee revenue less production cost (FRLPC): $121 million, up 5%.

• Adjusted EBITDA: $94 million (29.6%–30% margin), up $15 million and 200 basis points year-over-year.

• Operating income increased 68% year-over-year to $80 million; GAAP net income margin improved to 8% from 3%.

• Cash and cash equivalents rose to $318 million as of March 31, 2026.

• Diluted shares outstanding for Q1 2026 were 97 million.

Outlook and guidance

• Q2 2026 guidance: network volume $2.875–$3.075 billion, revenue $345–$365 million, adjusted EBITDA $100–$115 million, GAAP net income $25–$45 million.

• Full-year 2026 guidance: network volume $11.45–$13 billion, revenue $1.4–$1.575 billion, adjusted EBITDA $420–$460 million, GAAP net income $110–$160 million.

• FRLPC margin expected between 4% and 5% for the year, assuming elevated cost of capital.

• Sensitivity analysis projects potential credit-related impairments of $100–$150 million under Scenario A and $150–$200+ million under Scenario B.

• Management expects continued growth in network volume and fee revenue, supported by partner expansion and technology improvements.