PGYHIGH SIGNALFINANCIAL10-K

Pagaya achieved a dramatic turnaround from a $401M net loss to $81M profit while significantly expanding operations and strengthening its balance sheet.

This represents a fundamental transformation in Pagaya's business performance, with the company successfully scaling revenue 26% while achieving profitability and generating substantial operating cash flows. The removal of reverse stock split references and EJFA merger language suggests the company is moving beyond its restructuring phase into a growth-oriented operational period.

Comparing 2026-03-02 vs 2025-03-12View on EDGAR →
FINANCIAL ANALYSIS

Pagaya delivered exceptional financial performance with operating income surging 295% to $264M and a remarkable swing from $401M net loss to $81M profit, demonstrating strong operational leverage as revenue grew 26% to $1.3B. Operating cash flow increased 259% to $239M while the company strengthened its balance sheet with stockholders' equity rising 47% to $480M and cash growing 25% to $235M, though current liabilities increased 161% reflecting expanded business activity. The overall picture signals a successful business transformation with Pagaya achieving profitability, strong cash generation, and sustainable growth momentum.

FINANCIAL STATEMENT CHANGES
Operating Income
P&L
+294.7%
$66.8M→$263.8M

Operating leverage kicking in — revenue growth outpacing cost growth, a hallmark of scaling businesses.

Operating Cash Flow
Cash Flow
+258.7%
$66.5M→$238.6M

Operating cash flow surged 258.7% — exceptional cash generation, highest quality earnings signal.

Current Liabilities
Balance Sheet
+160.9%
$74.9M→$195.5M

Current liabilities surged 160.9% — significant near-term obligations; verify ability to meet short-term debt.

Net Income
P&L
+120.3%
-$401.4M→$81.4M

Net income grew 120.3% — bottom-line growth signals improving overall business health.

Net Interest Income
P&L
+50%
$32.3M→$48.4M

Net interest income grew 50% — benefiting from rate environment or loan book expansion.

Stockholders Equity
Balance Sheet
+47%
$326.5M→$480.0M

Equity base grew 47% — retained earnings accumulation or equity issuance strengthening the balance sheet.

Revenue
P&L
+26.1%
$1.0B→$1.3B

Revenue growing 26.1% — solid top-line momentum, watch margins for quality of growth.

Cash & Equivalents
Balance Sheet
+25.2%
$187.9M→$235.3M

Cash grew 25.2% — improving liquidity position supports investment and shareholder returns.

Total Liabilities
Balance Sheet
+23.9%
$775.3M→$960.5M

Liabilities increased 23.9% — monitor debt-to-equity ratio and interest coverage.

Capital Expenditure
Cash Flow
-21.6%
$17.7M→$13.9M

Capex reduced 21.6% — investment cycle winding down or capital discipline; may improve near-term free cash flow.

LANGUAGE CHANGES
NEW — 2026-03-02
PRIOR — 2025-03-12
ADDED
The Proxy Statement will be filed with the Securities and Exchange Commission within 120 days of the Registrant s fiscal year ended December 31 , 2025 .
Management's Discussion and Analysis of Financial Condition and Results of Operations 64 Item 7A.
SELECTED DEFINITIONS 2030 Notes refer to the 8.875% Senior Unsecured Notes due 2030.
Adjusted EBITDA means net income (loss) attributable to Pagaya Technologies Ltd., excluding share-based compensation expense, change in fair value of warrant liability, change in fair value of contingent liability, impairment, including credit-related charges, restructuring expenses, transaction-related expenses, non-recurring expenses associated with mergers and acquisitions and other one-time expenses, interest expense, depreciation expense, and provision (and benefit from) for income taxes.
Adjusted Net Income (Loss) means net income (loss) attributable to Pagaya Technologies Ltd., excluding share-based compensation expense, change in fair value of warrant liability, change in fair value of contingent liability, impairment, including credit-related charges, restructuring expenses, transaction-related expenses, and non-recurring expenses associated with mergers and acquisitions and other one-time expenses.
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REMOVED
Share amounts on this cover page and throughout this Report have been updated, as appropriate, to reflect the Company s reverse share split, effective March 8, 2024.
Management's Discussion and Analysis of Financial Condition and Results of Operations 66 Item 7A.
SELECTED DEFINITIONS ABS refers to asset-backed securitizations.
Adjusted EBITDA means net income (loss) attributable to Pagaya Shareholders, excluding share-based compensation expense, change in fair value of warrant liability, impairment, including credit-related charges, restructuring expenses, transaction-related expenses, non-recurring expenses associated with mergers and acquisitions, including the EJFA Merger, interest expense, depreciation expense, and provision (and benefit from) for income taxes.
Adjusted Net Income (Loss) means net income (loss) attributable to Pagaya Shareholders, excluding share-based compensation expense, change in fair value of warrant liability, impairment, including credit-related charges, restructuring expenses, transaction-related expenses, and non-recurring expenses associated with mergers and acquisitions, including the EJFA Merger.
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