Pagaya Technologies Ltd., an Israeli-based financial technology company, reported a net income attributable to shareholders of $81.4 million for the year ended December 31, 2025, a significant turnaround from the net loss of $401.4 million in the previous year. Total revenue and other income reached $1.301 billion, marking a 26% increase compared to $1.032 billion in 2024. The company's adjusted EBITDA also saw substantial growth, rising to $371.0 million from $210.4 million in the prior year, reflecting improved FRLPC (fee revenue less production costs) and disciplined cost management.
The increase in revenue was primarily driven by a $256.8 million increase in revenue from fees, reaching $1.261 billion. This growth was fueled by a $215.2 million increase in Network AI fees, which includes AI integration and capital markets execution fees, and a $41.6 million increase in contract fees. The company's Network Volume, representing the gross dollar value of assets originated by partners using Pagaya's AI technology, grew by 9% to $10.534 billion. Interest income also contributed to the revenue increase, rising by 50% to $48.4 million, while investment loss increased by $3.8 million to a loss of $8.4 million, reflecting an impairment recorded on certain proprietary investments.
Key operational developments included the issuance of $500 million in senior unsecured notes due 2030 and the refinancing of a revolving credit facility, providing a committed borrowing capacity of $132 million at a reduced interest rate. The company also repurchased approximately $14.3 million in aggregate principal amount of its outstanding 2030 Notes in open market transactions, funded by cash from its balance sheet. These actions reflect an ongoing capital allocation strategy aimed at optimizing the company's financial structure.
Looking ahead, Pagaya intends to continue investing in its AI technology, expanding its product offerings, and attracting new partners. The company's strategy is centered on product-led growth, focusing on solutions like Direct Marketing Engine and Affiliate Optimizer to address lender challenges. While the company acknowledges potential risks related to economic conditions, competition, and regulatory changes, it remains committed to building a sustainable and profitable business. The company's employee headcount stood at 518 as of December 31, 2025, reflecting a commitment to diversity, inclusion, and belonging.
About Pagaya Technologies Ltd.
Pagaya Technologies Ltd. is a technology-driven financial services company that leverages proprietary AI and data science to enhance credit underwriting and asset management. Its core activities include providing innovative lending solutions across consumer loans and real estate, connecting financial institutions with investors. The company focuses on scalable, API-integrated platforms, offering improved risk assessment, automation, and access to diverse markets for lenders and institutional investors.
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