PGY earnings analysis
What we found in PGY's 10-K: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Pagaya Technologies Ltd. delivered a strong performance in 2025, with total revenue growing to $1.301 billion, up 26% year-over-year, primarily driven by a notable increase in Network AI fees. A significant improvement in margins led to an operating income of $263.8 million, reflecting operational efficiencies. Despite fluctuations in investments and elevated production costs, the company demonstrated resilience in navigating macroeconomic challenges, posting a net income of $81.4 million, a stark contrast to the previous year's loss.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Significant Revenue Growth
- Total revenue increased by 26% year-over-year to $1.301 billion.
- Strong Operating Income
- Operating income rose to $263.8 million from $66.8 million in the prior year.
- Improved Earnings Per Share
- Diluted EPS stood at $0.93, compared to a net loss of $5.66 in the previous year.
- Network Volume Increase
- Network Volume grew 9% year-over-year, reaching $10.534 billion.
- Strong Interest Income Growth
- Interest income surged by 50% to $48.4 million compared to the previous year.
- Positive Cash Flow from Operating Activities
- Net cash provided by operating activities was $238.6 million, compared to $47.8 million in 2024.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Cybersecurity Vulnerabilities
- Increased risks from cyberattacks could impact brand and operations, highlighting the importance of robust cybersecurity governance. Dependencies on external partners heighten this risk.
- Geopolitical Tensions
- The ongoing conflict in the Middle East, particularly with Israel, poses potential operational risks that could disrupt performance.
- High Production Costs
- Production costs rose by 25% to $749.2 million, tightly coupled with increased Network Volume, which may impact margin stability.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $0.93
- Gross margin
- 40.2%
- Operating margin
- 20.3%
- Segment
- Network AI Fees
- Segment
- Contract Fees
What they said about what is next.
Full-year 2026 guidance expects revenue between $1.4B and $1.58B; EPS guidance is $0.86 to $1.04.
The filing reads better than the one before it.
What came before.
- 10-Q · May 7, 2026
- Pagaya Technologies reported strong Q1 2026 results with revenue of $317.9 million, a 10% increase year-over-year, despite missing revenue expectations. EPS of $0.73 exceeded estimates by 40%, reflecting growth in…
- 10-K · April 30, 2026
- Pagaya Technologies Ltd. has shown significant recovery and profitability in 2025, with operating margins reaching approximately 20.5% and free cash flow becoming positive. The company attributed this growth to…
- 10-K · March 2, 2026
- Pagaya’s 2025 operating performance shows clear recovery and margin expansion: fee revenue trended up through the year, operating margins reached ~20.5% in Q3–Q4 2025, and free cash flow increased to $77.0 million in Q4…
- 10-Q · August 7, 2025
- Pagaya posted strong quarter-to-date operational improvement: revenue from fees rose to $317,714,000 in Q2 2025 (up $75,120,000 or ~31.0% YoY versus $242,594,000 in Q2 2024), operating income expanded to $56,469,000…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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