PGYWW · Pagaya Technologies Ltd.

Pagaya Technologies reported strong first quarter 2026 results, with GAAP net income of $25 million, up $17 million year-over-year, driven by revenue growth, lower expenses, and normalized impairments. Total revenue and other income reached $318 million, a 10% increase, fueled by 130% growth in interest income. Adjusted EBITDA grew 18% to $94 million, with margin expanding to 30%, reflecting operating leverage. Network volume rose 9% to $2.6 billion, with Auto reaching a record annualized run rate of $2.3 billion. The company raised its full-year 2026 GAAP net income guidance to $110-$160 million, up from prior outlook, citing accelerated momentum in auto. Management highlighted disciplined risk management, with application-to-volume conversion below 1% due to tighter underwriting. The company also announced a CFO transition: Evangelos Perros will step down on June 15, 2026, and will serve as Strategic Executive Advisor through year-end. Jonathan Dobres, currently Chief Strategy Officer, will assume the CFO role. Dobres' employment agreement includes a $650,000 base salary, a $350,000 upfront bonus, and RSU grants totaling $2 million over three years, with standard severance and change-in-control provisions. The leadership change is not related to any accounting or operational disagreements. The company also reported progress in partner onboarding, with four new partners added year-to-date, and achieved a first AAA Fitch rating on a PAID resecuritization, enhancing capital markets access.