Pagaya Technologies reported record third-quarter revenue, operating income and net income, as network volume grew 29% from a year earlier. The AI-driven lending company also added two bank partners and secured more than $2 billion in committed funding, while raising its full-year GAAP net income guidance.
Revenue and adjusted EBITDA were at the upper ends of Pagaya’s third-quarter outlook ranges. The company attributed earnings growth to higher revenue and lower expenses, while noting that a measure of fee revenue relative to network volume narrowed amid higher benchmark rates.
Third-quarter results
- Net income attributable to Pagaya shareholders was $50 million, up $27 million year over year. That was within the company’s prior range of $42 million to $52 million.
- Operating income reached a record $113 million, up 41% from a year earlier. Pagaya cited network growth and stable operating expenses.
- Network volume was a record $3.6 billion, up 29% year over year and within the company’s $3.425 billion to $3.625 billion outlook. Growth came from auto and personal loans.
- Total revenue and other income reached a record $390 million, up 12% and at the top of the $370 million to $390 million outlook range. Pagaya cited growth in fee revenue and interest income.
- Adjusted EBITDA was a record $130 million, up 22% and at the high end of the $120 million to $130 million outlook. The company attributed the increase to growth in fee revenue after production costs and operating leverage as the business scales.
- Fee revenue less production costs was $146 million, up 5%. As a share of network volume, it fell 91 basis points year over year to 4.1%; Pagaya said higher benchmark rates had a short-term impact on the measure.
Partners, funding and outlook
- Pagaya onboarded Citizens Financial Group and First National Bank of Omaha for personal loans and point-of-sale lending. It said it had added seven partners over the past 12 months.
- The company closed more than $2 billion in longer-duration committed funding through an auto forward-flow arrangement, a personal-loan warehouse facility and a revolving personal-loan securitization. Pagaya said the funding expands its funding sources and capacity to support originations.
- For the fourth quarter, Pagaya expects:
- Network volume of $2.961 billion to $3.261 billion
- Revenue and other income of $355 million to $405 million
- Adjusted EBITDA of $117 million to $137 million
- GAAP net income of $42 million to $62 million
- For full-year 2026, it expects network volume of $12.725 billion to $13.025 billion, revenue and other income of $1.45 billion to $1.5 billion, adjusted EBITDA of $465 million to $485 million, and GAAP net income of $162 million to $182 million. Pagaya said it raised its full-year GAAP net income guidance.
The results point to stronger earnings alongside rapid growth in lending volume. The lower fee-revenue measure as a share of volume shows that this growth did not translate into an equivalent increase in that metric’s rate, which Pagaya linked to higher benchmark rates.