Pagaya Technologies (PGY) investor relations material

Business model and market positioning

• Operates as a B2B infrastructure platform connecting lending institutions with institutional investors, offering a white-label solution that enhances underwriting and customer retention for partners.

• Integrated with about 35 lending partners, facilitating $12–13 billion in network volume across asset classes such as personal loans, auto, and point of sale.

• Focused on the U.S. market due to its data-rich environment, with potential for future international expansion.

• Unique value proposition includes providing funding for partners, allowing them to expand offerings without deploying their own capital.

• No direct competitors offer a full end-to-end white-label solution with integrated technology and funding.

Growth strategy and outlook

• Growth is driven by adding new lending partners and expanding product offerings, not by direct consumer marketing.

• Auto lending is a key growth vertical, with significant opportunity to add large partners and monetize existing relationships.

• New partners typically take 12–18 months to ramp up, with meaningful volume contributions expected by 2026–2027.

• Targets approximately 20% year-over-year growth over the cycle, with mid-teens growth expected in years with credit tightening.

• Product-led and partner-led strategies support both near-term and long-term expansion.

Financial guidance and capital allocation

• Recently raised the low end of network volume and net income guidance due to strong product-led growth, especially in auto.

• Maintains a diversified funding model, pivoting between ABS and whole loan sales based on market conditions.

• Consumer credit performance remains resilient, supporting strong investor demand for consumer assets.

• Generates $4–$5 in cash fees per loan, with risk retention averaging 2–3% over the cycle, enabling self-funding of growth.

• Capital allocation priorities include opportunistic bond buybacks, cautious approach to share repurchases, and preference for organic growth over M&A.