Pagaya Technologies Ltd. · NASDAQ:PGY
Pagaya Technologies — Investor Presentation (May 2025)
31 slides from Pagaya Technologies's investor presentation, May 2025
Slide 1: Pagaya Technologies Investor Presentation
May 2025 INTRODUCTION Pagaya Technologies Investor Presentation 1 1
Slide 2: Disclaimer: Forward Looking Statements and Non-GAAP Information
Disclaimer: Forward Looking Statements and Non-GAAP Information Certain comments made in this presentation may be characterized as forward looking However, non-GAAP financial measures have limitations in their usefulness to investors under the Private Securities Litigation Reform Act of 1995. Forwar
Slide 3: Company Overview
01 Company Overview 3 3
Slide 4: Delivering more financial opportunity
MISSION Delivering more financial opportunity to more people, more often 4 4
Slide 5: Pagaya by the numbers
Pagaya by the numbers 31 Lending partners 5 Markets (personal loan, auto, 135 Funding partners >$2.7T Applications evaluated since inception point-of-sale, credit card, and single-family rental) >$27B Funding raised across 65+ ABS transactions ~$1.2B Annualized run-rate total revenue ~$320M Annualiz
Slide 6: What makes Pagaya different
What makes Pagaya different Differentiated, enterprise-led growth strategy Network effects create expanding data advantage Constantly growing “top of the funnel” by Unique insights into the U.S. borrower with partnering and expanding with new and >$2.7T of applications seen since inception existing
Slide 7: Consumers can't get the credit they deserve
The Problem Consumers can’t get the credit they deserve 42% ~$120K 31 Unique API of U.S. consumers are denied the Average income of our borrowers(2) Integrations credit they seek under legacy credit Into lending scoring models(1) origination systems across multiple markets Our Solution Ensuring lend
Slide 8: How our Product Works
How our Product Works Lenders add more borrowers under their brand With Pagaya, the end borrower gets an offer from the lender they trust Step 1 Step 2 Step 3 Step 4 Personal Loan Personal Loan Personal Loan The outcome: a seamless experience for lenders & borrowers API • Lender keeps the relationsh
Slide 9: How We Fund Our Network Volume
How We Fund Our Network Volume Unlike traditional funding models, we raise funding before assets are created – minimizing liquidity risk Upfront funding model mitigates liquidity risk Pagaya’s upfront funding model • Pagaya raises cash from investors first, which sits in a trust waiting to be deploy
Slide 10: Our Differentiated Value Proposition
Our Differentiated Value Proposition Pagaya earns $4.0 - $5.0 in FRLPC1 for every $100 of loans issued FRLPC1 driven primarily by fees paid by our lending partners for helping them add more borrowers Lending Partners Funding Partners Pay fees to Pagaya to use our product to originate more loans and
Slide 11: Our flagship product provides a win-win-win for lending partners
Our flagship product provides a “win-win-win” for lending partners, their customers and funding partners Lending Partners Lending Partner Customers Funding Partners Grow originations and customers with Access to more financial opportunities Efficiently deploy capital at scale in no incremental cost
Slide 12: 1Q'25 Results: Strong execution driving profitable growth
1Q’25 Results: Strong execution driving profitable growth • 1st time GAAP Net Income positive since 2020, 1Q’25 Total Revenues 1Q’25 FRLPC1 achieved earlier than expected. • $290M $116M Historically high Revenue, FRLPC, and Adjusted EBITDA • FRLPC % reached its historical level in 1Q’25 at 4.8%, wit
Slide 13: Growth Strategy
02 Growth Strategy 13 13
Slide 14: Differentiated, enterprise-led growth strategy
Differentiated, enterprise-led growth strategy Strategic Growth Initiatives Adding Lending Partners To Our Network Expand New Products PL POS Auto 1 Helping partners increase customer lifetime value and drive further growth without additional marketing costs Cost Efficient: Scalable: No Incremental
Slide 15: Robust pipeline of enterprise-grade financial institutions
Robust pipeline of enterprise-grade financial institutions Strong network of 31 enterprise lenders In conversations with Targeting across 5 asset classes 80% 2-4 Top 5 Partner additions annually, Auto of top 25 U.S. Banks with a focus on large by asset size banks and auto captives Captive Banks POS
Slide 16: Monetization is improving as evidenced by FRLPC % upside
Monetization is improving as evidenced by FRLPC1 % upside relative to target range Established a playbook to evaluate lender economics • Continue to boost monetization among leading over time as we strengthen our value proposition partners, adding new products to further penetrate existing partners
Slide 17: Developing new products to help lenders extract more customer lifetime value
Developing new products to help lenders extract more customer lifetime value Increasing Flagship Product Increasing Products in Development Customer Wallet Market Share Share Enable lenders to capture customers that Increase Product roadmap designed to enhance Customer otherwise would have been turn
Slide 18: Pagaya aspires to be the go-to lending technology partner
Pagaya aspires to be the go-to lending technology partner for the consumer finance ecosystem Pagaya’s flagship product started in credit. We strive to help transform a bank’s full value chain with technology Today Long Term Origination Collections Marketing Platforms Funding Underwriting Model Risk
Slide 19: Funding Strategy
02 Funding Strategy 19 19
Slide 20: Access to diverse sources of funding limits use of capital
Access to diverse sources of funding limits Pagaya’s use of capital to fund volume Annual Funding Volume1 Funding Highlights ✓ Raised >$27B in our ABS program across 65 transactions with 135 institutional funding partners year to date ✓ #1 ABS issuer of Personal Loans ✓ AAA-rating on 6 ABS deals ✓ S
Slide 21: Pagaya remains the #1 personal loan ABS issuer in the U.S.
Pagaya remains the #1 personal loan ABS issuer in the U.S. Growing ABS ABS Investor Base ABS Issuance Investors in Pagaya’s financing vehicles by investor Pagaya ABS issuance across all products (in $billions) investor base type $6.6 $6.1 $6.2 $5.7 135 132 $4.5 125 120 116 98 89 81 77 67 67 52 4747
Slide 22: Financials
03 Financials 22 22
Slide 23: Driving profitability with growing unit economics
Driving profitability with growing unit economics Total revenues Fee revenue less production costs¹ $ in millions & YoY % growth $ in millions & YoY % growth 18% 28% 55% 26% 49% 38% 84% 21% 31% 28% $290 $279 $117 $116 $92 $97 $100 $250 $257 $245 1Q'24 2Q'24 3Q'24 4Q'24 1Q'25 1Q'24 2Q'24 3Q'24 4Q'24
Slide 24: Illustrative unit economics: FRLPC structure
Illustrative unit economics: FRLPC1 structure Metric Definition Illustrative Application Volume Total applications seen from lending partners $1,000,000 Conversion Rate % of loan offers accepted by the borrower 1% The notional value of all assets Network Volume (“NV”) $10,000 created using our techn
Slide 25: Growing network volumes while maintaining conversion rates at historical lows
Growing network volumes while maintaining conversion rates at historical lows $224B Applications evaluated in 1Q’25 ~1% Conversion rate of applications to issued loans in 1Q’25 Quarterly Application Volume ($B) Conversion Rate (%) Network Volume ($B) ©2023 Pagaya. Confidential | FOR INTERNAL USE ONL
Slide 26: Increasing fees as we deliver more value to our partners
Increasing fees as we deliver more value to our partners Fee revenue less production costs (“FRLPC(1)”) by product 4.8% 4.5% 4.2% 4.3% 3.8% 3.3% 3.4% 3.2% 3.0% 2.9% 3.0% 2.7% 1% 25% 32% 43% 58% 60% 63% 63% 69% 71% 71% 77% 99% 75% 68% 57% 42% 40% 37% 37% 31% 29% 29% 23% 2Q'22 3Q'22 4Q'22 1Q'23 2Q'23
Slide 27: On track to achieve GAAP profitability in 2025
On track to achieve GAAP profitability in 2025 2025 Guidance Network Volume Total Revenues Adjusted EBITDA GAAP Net Income +6% +20% +48% +$429M YoY YoY YoY YoY $9.5B to $11.0B $10M to $45M $1.175B to $290M to $1.3B $330M 2024A 2025E 2024A 2025E 2024A 2025E 2024A 2025E (1)These are non-GAAP ©2023 Pag
Slide 28: What makes Pagaya different
What makes Pagaya different Differentiated, enterprise-led growth strategy Network effects creating massive data advantage Constantly growing “top of the funnel” by Unique insights into the U.S. borrower with partnering and expanding with new and >$2.7T of applications seen since inception existing
Slide 29: Appendix: Non-GAAP Reconciliation
05 Appendix: Non-GAAP Reconciliation 29 29
Slide 30: Reconciliation of Non-GAAP Financial Measures
PAGAYA TECHNOLOGIES LTD. RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (UNAUDITED) (in thousands) 1Q'24 2Q'24 3Q'24 4Q'24 1Q'25 Net Income (Loss) Attributable to Pagaya Technologies Ltd. $ (21,223) $ (74,785) $ (67,476) $ (237,922) $ 7,893 Adjusted to exclude the following: Share-based compensation
Slide 31: Reconciliation of Non-GAAP Financial Measures: FRLPC
PAGAYA TECHNOLOGIES LTD. RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (UNAUDITED) (in thousands, unless otherwise noted) 1Q'24 2Q'24 3Q'24 4Q'24 1Q'25 Operating Income $ 7,690 $ 5,027 $ 22,384 $ 31,739 $ 47,685 Add: Technology, data and product development 19,380 21,935 16,655 18,601 19,444 Add: Sa
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