Pagaya Technologies Reports 30% Revenue Growth to $326.4 Million in Latest Quarter

Pagaya Technologies Ltd. reported significant financial performance improvements in its latest quarterly filing, with total revenue and other income reaching $326.4 million for the three months ended June 30, 2025, a 30% increase from $250.3 million in the same period last year. Revenue from fees alone rose by 31% to $317.7 million, driven primarily by a $64.1 million increase in Network AI fees, which reached $285.9 million. The company also reported a net income attributable to Pagaya Technologies Ltd. of $16.7 million, a notable recovery from a net loss of $74.8 million in the prior year.

In terms of operational metrics, Pagaya's Network Volume increased by 13.6% to $2.6 billion for the second quarter of 2025, compared to $2.3 billion in the same quarter of 2024. This growth reflects the company's expanding partnerships and the effectiveness of its AI technology in facilitating financial transactions. The company’s total assets grew to $1.4 billion as of June 30, 2025, up from $1.3 billion at the end of 2024, indicating a solid foundation for future growth.

Strategically, Pagaya completed the acquisition of Theorem Technology, Inc. in October 2024, enhancing its capabilities in the consumer credit space. The company also entered into new financing arrangements, including a $500 million issuance of Senior Unsecured Notes due 2030, which will be used to repay existing debt and support ongoing operations. As of June 30, 2025, Pagaya had 524 employees, a reduction from 591 a year earlier, reflecting efforts to streamline operations and reduce costs.

The company’s financial health is further evidenced by its cash and cash equivalents, which totaled $183 million, alongside restricted cash of $59 million. Pagaya's operational efficiency is highlighted by its Fee Revenue Less Production Costs (FRLPC), which reached $126.2 million for the second quarter, representing 4.8% of Network Volume. This metric underscores the company's ability to manage costs effectively while scaling its operations.

Looking ahead, Pagaya anticipates continued growth driven by the expansion of its partner network and improvements in its AI technology. However, the company remains cautious of macroeconomic factors, including interest rate fluctuations and geopolitical tensions, which could impact its performance. The transition to a large accelerated filer status by the end of 2025 will also bring additional regulatory requirements, which Pagaya is preparing to meet.