Pagaya Technologies (PGY) Q3 2024 earnings summary

Executive summary

• Achieved strong Q3 2024 results with network volume of $2.4B, up 11% year-over-year, and total revenue of $257M, up 21–24% year-over-year, driven by growth in personal loans and POS businesses.

• Adjusted EBITDA nearly doubled to $56M (21.8% margin), and adjusted net income rose to $33M, reflecting strong core business performance.

• Net loss attributable widened to $67M, mainly due to credit-related fair value adjustments and non-recurring items.

• Focused on sustainable cash flow and GAAP profitability, targeting positive GAAP net income in 2025.

• Completed a $160M exchangeable note offering and acquired Theorem Technology to expand asset management capabilities.

Financial highlights

• Q3 2024 total revenue was $257M (up 21–24% year-over-year); FRLPC was $100M (up 38%).

• Adjusted EBITDA reached $56M, up $28M year-over-year; adjusted net income was $33M.

• Net loss attributable was $67M, impacted by $70–76M in credit-related fair value adjustments.

• Cash, cash equivalents, and restricted cash at September 30, 2024: $147–181M.

• ABS issuance in the trailing twelve months was $6.1B, maintaining a strong funding network.

Outlook and guidance

• Full-year 2024 network volume expected between $9.5B–$9.7B.

• Total revenue and other income guidance narrowed to $1.01–$1.025B; adjusted EBITDA expected between $195–$205M.

• Positive GAAP net income targeted for 2025, with formal 2025 guidance to be provided next quarter.

• Management expects continued growth in network volume and fee revenue, supported by new partnerships and technology enhancements.