Pagaya Technologies reported record third-quarter results, with growth in lending volume lifting revenue and operating income. Net income attributable to shareholders reached $50 million, while adjusted EBITDA rose 22% from a year earlier.
The AI-focused lending platform also added two bank partners and secured more than $2 billion in longer-term funding commitments. Pagaya raised its full-year 2026 net income outlook and provided fourth-quarter forecasts.
Third-quarter results
– Net income: $50 million, up $27 million year over year and within the company’s prior $42 million to $52 million outlook.
– Operating income: A record $113 million, up 41%, as lending network volume grew and operating expenses remained stable.
– Revenue and other income: A record $390 million, up 12%, driven by growth in fee revenue and interest income.
– Network volume: A record $3.6 billion, up 29%, led by auto and personal loans. Pagaya said it maintained its focus on prudent underwriting.
– Adjusted EBITDA: A record $130 million, up 22%, reflecting higher fee revenue after production costs and operating leverage as the business scaled.
– Fees after production costs: $146 million, up 5%. The measure fell to 4.1% of network volume, down 91 basis points from a year earlier; Pagaya attributed the decline to the short-term effect of higher benchmark interest rates.
Partners and funding
– Pagaya onboarded Citizens Financial Group and First National Bank of Omaha for personal loans and point-of-sale lending. The two additions bring the total number of partners onboarded over the past 12 months to seven.
– The company closed more than $2 billion in longer-duration committed capital across an auto forward-flow arrangement, a personal-loan warehouse facility and a revolving personal-loan securitization. Pagaya said the financing expands and diversifies its funding capacity to support originations through different market cycles.
Outlook
– 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, and GAAP net income of $42 million to $62 million.
– For full-year 2026, it forecasts 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. The company said it raised its full-year net income guidance.
The quarter’s results show higher lending volume alongside stronger operating income and earnings. At the same time, the decline in fees after production costs as a share of network volume indicates that growth in volume did not translate into an equivalent improvement in that measure’s rate. The new funding commitments broaden Pagaya’s sources of capital and add capacity for lending activity.