Pagaya Technologies Ltd. · NASDAQ:PGY
Pagaya Technologies — Q1 2025 Earnings Presentation
26 slides from Pagaya Technologies's earnings presentation, May 7, 2025
Slide 1: 1Q'25 Earnings Supplement
PAGAYA TECHNOLOGIES LTD. 1Q’25 Earnings Supplement May 7, 2025 1
Slide 2: Forward Looking Statements and Non-GAAP Information
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. Forward looking st
Slide 3: Contents
01 Financial Metrics 02 Contents Operating Metrics 03 Non-GAAP Reconciliations 3
Slide 4: Financial Metrics
01 Financial Metrics 4
Slide 5: 1Q'25 financial highlights
1Q’25 financial highlights ($ millions) 1Q’2024 1Q’2025 %∆ Network Volume $2,419 $2,400 (1%) Total revenue & other income $245 $290 18% Revenue from fees $237 $283 19% Production costs $145 $167 15% Revenue from fees less production costs (FRLPC)* $92 $116 26% Core operating expenses* $61 $44 (27%)
Slide 6: Key financial metrics
Key financial metrics $ in millions; % in YoY growth Total Revenue FRLPC Adjusted EBITDA Net Income $290 $80 $8 18% 26% $116 137% 100% $245 $92 $40 ($21) 1Q'24 1Q'25 1Q'24 1Q'25 1Q'24 1Q'25 1Q'24 1Q'25 6 Note: “Fee revenue less production costs (FRLPC)” and “Adjusted EBITDA” are Non-GAAP metrics; se
Slide 7: Evolution of FRLPC
Evolution of FRLPC Components of FRLPC as a % of network volume (FRLPC %) 11.8% 10.4% 10.6% 10.6% 9.8% 8.8% Targeting 7.0% 4.0%-5.0% 6.0% 6.2% 6.3% 6.1% FRLPC% in 2025 5.6% 4.5% 4.8% 4.2% 4.3% 3.8% 3.2% 4Q'23 1Q'24 2Q'24 3Q'24 4Q'24 1Q'25 Fee revenue % of network volume Production costs % of network
Slide 8: Evolution of FRLPC by product
Evolution of FRLPC by product % contribution from lending partner and investor products Fee revenue less production costs as a % of network volume (FRLPC %) – breakdown by product 4.3% 4.5% 4.8% 4.2% 4.8% 3.8% 4.3% 4.5% 3.3% 3.4% 3.2% 4.2% 3.0% 2.9% 3.0% 3.8% 2.7% 3.3% 3.4% 3.2% 3.0% 2.9% 3.0% 2.7%
Slide 9: Evolution of FRLPC by line item
Evolution of FRLPC by line item $ in millions 1Q’24 2Q’24 3Q’24 4Q’24 1Q’25 AI integration $206 $216 $221 $244 $257 Contract $22 $21 $20 $26 $29 Capital markets $10 $6 $8 $6 ($4) Total Fee Revenue $237 $243 $249 $276 $283 Production costs ($145) ($146) ($149) ($158) ($167) Total FRLPC* $92 $97 $100
Slide 10: Core operating expenses
Core operating expenses $ in millions Total operating expenses excluding share-based compensation expense, one-time expenses, and depreciation $61 $57 $55 $53 $44 66% 57% 52% 49% 38% 1Q'24 2Q'24 3Q'24 4Q'24 1Q'25 Core Opex Core Opex as a % of FRLPC “Core Opex” is a Non-GAAP metric; see “Appendix” fo
Slide 11: Adjusted EBITDA
Adjusted EBITDA $ in millions $80 $64 $56 $50 $40 1Q'24 2Q'24 3Q'24 4Q'24 1Q'25 11 Note: “Adjusted EBITDA” is a Non-GAAP metrics; see “Appendix” for a reconciliation of non-GAAP measures to the most comparable GAAP measure.
Slide 12: Operating Metrics
02 Operating Metrics 12
Slide 13: Network Volume
Network Volume $ in millions $2,604 $2,380 $2,419 $2,331 $2,351 $2,400 $2,112 $1,947 $1,924 $1,957 $1,850 $1,786 $1,621 $1,650 $1,522 $1,088 $673 1Q'21 2Q'21 3Q'21 4Q'21 1Q'22 2Q'22 3Q'22 4Q'22 1Q'23 2Q'23 3Q'23 4Q'23 1Q'24 2Q'24 3Q'24 4Q'24 1Q'25 Source: Pagaya internal data, as of 3/31/2025. 13
Slide 14: Our ABS funding network
Our ABS funding network Growing ABS ABS Investor Base ABS Issuance Investors in Pagaya’s financing vehicles Pagaya ABS issuance across all products (in $billions) investor base by investor type $6.6 $6.1 $6.2 $5.7 135 132 125 120 $4.5 116 98 89 84 77 6767 52 474750 42 36 22 6 6 7 1 2 5 5 Asset Manag
Slide 15: Applications evaluated vs. conversion rate %
Applications evaluated vs. conversion rate % Applications per quarter ($ in billions) versus conversion rate of applications into network volume $224B Applications (%) evaluated in 1Q’25 ~1% Conversion rate of applications to issued loans in 1Q’25 1Q'21 2Q'21 3Q'21 4Q'21 1Q'22 2Q'22 3Q'22 4Q'22 1Q'2
Slide 16: Credit performance: personal loan portfolio
Credit performance: personal loan portfolio Pagaya personal loan portfolio weighted average coupon (“WAC”) vs. 30-day+ DQs plus cumulative gross loss (“DQ”) Figures represent performance 3 months from issuance 25% 4% 20% 3% 15% WAC (%) DQ (%) 2% 10% 1% 5% 0% 0% 1Q'21 2Q'21 3Q'21 4Q'21 1Q'22 2Q'22 3Q
Slide 17: Credit performance: auto loan portfolio
Credit performance: auto loan portfolio Pagaya auto loan portfolio effective weighted average coupon (“EWAC”) vs. 60-day+ DQs plus cumulative gross loss (“DQ”) Figures represent performance 6 months from issuance 25% 16% 20% 12% 15% EWAC (%) DQ (%) 8% 10% 4% 5% 0% 0% 1Q'21 2Q'21 3Q'21 4Q'21 1Q'22 2Q
Slide 18: Investments in loans and securities – composition
Investments in loans and securities – composition Composition by vintage and security type, as of March 31, 2025 Composition by vintage year Composition by type of security ($ in millions, % of total) $ in millions Fair Value % of Total $59, 8% $86, 11% Securitization Notes $244 32.1% $147, 19% Secu
Slide 19: Investments in loans and securities
Investments in loans and securities Change in investments in loans and securities Key unobservable inputs compared to December 31, 2024 compared to December 31, 2024 Three months ended Weighted Average Weighted Average ($ in thousands) March 31, 2025 March 31, 2025 December 31, 2024 Balance, beginni
Slide 20: Fair value adjustments (net of NCI)
Fair value adjustments (net of NCI) 1Q’25 Fair value adjustments* by 1Q’25 Impairment composition, net of Noncontrolling Interest vintage year, net of Noncontrolling Interest ($ in millions, % of total) $ in millions 2Q’24 3Q’24 4Q’24 1Q’25 Credit-related fair value ($44) ($70) ($229) ($24) adjustme
Slide 21: Investments in loans & securities – sensitivity analysis, stress scenarios
Investments in loans & securities – sensitivity analysis, stress scenarios Full Year 2025 GAAP Net Income guidance reflects the unchanged implied fair value adjustments from Scenario A Illustrative scenarios Base Case ($ in millions) Scenario A Scenario B (as of 3/31/2025) Change in expected cash fl
Slide 22: Non-GAAP Reconciliations
03 Non-GAAP Reconciliations 22
Slide 23: Reconciliation of Non-GAAP Financial Measures
PAGAYA TECHNOLOGIES LTD. RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (UNAUDITED) FOR THREE MONTHS AND YEAR ENDED MARCH 31, 2025 AND 2024 Three Months Ended March 31, (in thousands, unless otherwise noted) 2025 2024 Net Income (Loss) Attributable to Pagaya Technologies Ltd. $7,893 ($21,223) Adjuste
Slide 24: Reconciliation of Non-GAAP Financial Measures (FRLPC)
PAGAYA TECHNOLOGIES LTD. RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (UNAUDITED) FOR THREE MONTHS AND YEAR ENDED MARCH 31, 2025 AND 2024 (in thousands, unless otherwise noted) Three Months Ended March 31, Fee revenue less production costs (FRLPC) 2025 2024 Operating Income $47,685 $7,690 Add: Tech
Slide 25: Reconciliation of Non-GAAP Financial Measures (Core operating expenses)
PAGAYA TECHNOLOGIES LTD. RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (UNAUDITED) FOR THREE MONTHS AND YEAR ENDED MARCH 31, 2025 AND 2024 (in thousands, unless otherwise noted) Three Months Ended March 31, 2025 2024 Operating expenses ($75,221) ($92,705) Adjusted to exclude the following: Share-bas
Slide 26: Summary Cap Table and Diluted Share Calculation
PAGAYA TECHNOLOGIES LTD. Summary Cap Table and Diluted Share Calculation Cap Table as of March 31, 2025 (Shares in millions) Shares Outstanding Preferred Shares 5 Exchangeable notes 11 Class A ordinary shares 63 Class B ordinary shares 13 Share options with $7.30 weighted-average exercise price 4 Op