Pagaya Technologies Ltd. · NASDAQ:PGY
Pagaya Technologies — Q1 2026 Earnings Presentation
25 slides from Pagaya Technologies's earnings presentation, May 7, 2026
Slide 1: 1Q'26 Earnings Supplement
PAGAYA TECHNOLOGIES LTD. 1Q’26 Earnings Supplement May 7, 2026 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 under However, non-GAAP financial measures have limitations in their usefulness to investors because the Private Securities Litigation Reform Act of 1995. Forward lo
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'26 financial highlights
1Q’26 financial highlights ($ millions) 1Q’2025 1Q’2026 %∆ Network Volume $2,400 $2,624 9% Total revenue & other income $290 $318 10% Revenue from fees $283 $299 6% Production costs $167 $178 6% Fee revenue less production costs (FRLPC)* $116 $121 5% Core operating expenses* $44 $47 7% Net income at
Slide 6: Key financial metrics
Key financial metrics $ in millions; % in YoY growth Total Revenue FRLPC Adjusted EBITDA Net Income $318 10% 5% $25 $290 $94 $121 $116 18% +213% $80 $8 1Q'25 1Q'26 1Q'25 1Q'26 1Q'25 1Q'26 1Q'25 1Q'26 6 Note: “Fee revenue less production costs (FRLPC)” and “Adjusted EBITDA” are Non-GAAP metrics; see
Slide 7: Evolution of FRLPC
Evolution of FRLPC Components of FRLPC as a % of network volume (FRLPC %) 11.8% 12.0% 12.1% 12.0% 11.4% Targeting 7.0% 7.2% 7.2% 7.1% 6.8% 4.0%-5.0% FRLPC% in 2026 4.8% 4.8% 5.0% 4.9% 4.6% 1Q'25 2Q'25 3Q'25 4Q'25 1Q'26 Fee revenue % of network volume Production costs % of network volume FRLPC % 7 No
Slide 8: Evolution of FRLPC by line item
Evolution of FRLPC by line item $ in millions 1Q’25 2Q’25 3Q’25 4Q’25 1Q’26 AI integration $257 $292 $309 $293 $266 Contract $29 $32 $35 $34 $33 Capital markets ($4) ($6) ($5) ($6) $1 Total Fee Revenue $283 $318 $340 $321 $299 Production costs ($167) ($191) ($201) ($190) ($178) Total FRLPC* $116 $12
Slide 9: Core operating expenses
Core operating expenses $ in millions Total operating expenses excluding share-based compensation expense, one-time expenses, and depreciation $60 120% $49 $50 $47 $47 $47 100% $44 $40 80% $30 60% 38% 39% 39% $20 34% 36% 40% $10 20% $0 0% 1Q'25 2Q'25 3Q'25 4Q'25 1Q'26 Core Opex Core Opex as a % of F
Slide 10: Adjusted EBITDA
Adjusted EBITDA $ in millions $107 $98 $94 $86 $80 1Q'25 2Q'25 3Q'25 4Q'25 1Q'26 10 Note: “Adjusted EBITDA” is a Non-GAAP metric; see “Appendix” for a reconciliation of non-GAAP measures to the most comparable GAAP measure.
Slide 11: Operating Metrics
02 Operating Metrics 11
Slide 12: Network Volume
Network Volume $ in millions $2,802 $2,648 $2,684 $2,604 $2,624 $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 $673 1Q'21 2Q'21 3Q'21 4Q'21 1Q'22 2Q'22 3Q'22 4Q'22 1Q'23 2Q'23 3Q'23 4Q'23 1Q'24 2Q'24 3Q'24 4Q'24 1Q'25 2Q'25 3Q'25 4Q'25 1Q'26
Slide 13: Our ABS funding network
Our ABS funding network Growing ABS ABS Investor Base ABS Issuance Investors in Pagaya’s financing vehicles Pagaya ABS issuance across all products ($ in billions) investor base by investor type $9.1 $8.5 163 $6.6 $6.1 $6.2 135 116 $4.5 77 50 36 6 1 Asset Manager Bank / Depository Hedge Fund 1Q'19 1
Slide 14: Applications evaluated vs. conversion rate %
Applications evaluated vs. conversion rate % Applications per quarter ($ in billions) versus conversion rate of applications into network volume (%) $264B Applications evaluated in 1Q’26 <1% Conversion rate of applications to issued loans in 1Q’26 1Q'22 2Q'22 3Q'22 4Q'22 1Q'23 2Q'23 3Q'23 4Q'23 1Q'2
Slide 15: Credit performance: personal loan portfolio
Credit performance: personal loan portfolio Pagaya personal loan portfolio weighted average coupon (“WAC”) vs. 30-day+ DQs plus cumulative gross loss (“DQ”) Figures represent performance 3 months from issuance 25% 4% 20% 3% 15% WAC (%) DQ (%) 2% 10% 1% 5% 0% 0% 1Q'21 2Q'21 3Q'21 4Q'21 1Q'22 2Q'22 3Q
Slide 16: Credit performance: auto loan portfolio
Credit performance: auto loan portfolio Pagaya auto loan portfolio effective weighted average coupon (“EWAC”) vs. 60-day+ DQs plus cumulative gross loss (“DQ”) Figures represent performance 6 months from issuance 25% 16% 20% 12% EWAC (%) 15% DQ (%) 8% 10% 4% 5% 0% 0% 1Q'21 2Q'21 3Q'21 4Q'21 1Q'22 2Q
Slide 17: Investments in loans and securities – composition
Investments in loans and securities – composition Composition by vintage and security type, as of March 31, 2026 Composition by vintage year* Composition by type of security & vintage year ($ in millions, % of total) $ in millions 2023 & % of 2026 2025 2024 Total Prior Total 10%, Risk Retention: 18%
Slide 18: Investments in loans and securities
Investments in loans and securities Changes in investments in loans and securities Key unobservable inputs compared to December 31, 2025 compared to December 31, 2025 Three months ended Weighted Average Weighted Average ($ in millions) March 31, 2026 March 31, 2026 December 31, 2025 Balance, beginni
Slide 19: Investments in loans & securities – fair value and other adjustments
Investments in loans and securities - fair value and other adjustments Fair value impairments, net of NCI by 4Q’25 Fair value impairments and other adjustments composition vintage year $ in millions 1Q’26 $ in millions 1Q’25 2Q’25 3Q’251 4Q’25 1Q’26 2023 & prior ($4) Credit-related fair value adjust
Slide 20: Investments in loans & securities – sensitivity analysis, stress scenarios
Investments in loans & securities – sensitivity analysis, stress scenarios Our portfolio of investments in loans & securities have been adjusted to fair value as of 3/31/2026. For purposes of GAAP Net Income guidance, we have assumed the implied fair value adjustments over the life of the portfolio
Slide 21: Non-GAAP Reconciliations
03 Non-GAAP Reconciliations 21
Slide 22: Reconciliation of Non-GAAP Financial Measures
PAGAYA TECHNOLOGIES LTD. RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (UNAUDITED) FOR THREE MONTHS ENDED MARCH 31, 2026 AND 2025 Three Months Ended March 31, (in thousands, unless otherwise noted) 2026 2025 Net Income Attributable to Pagaya Technologies Ltd. $24,694 $7,893 Adjusted to exclude the f
Slide 23: Reconciliation of Non-GAAP Financial Measures
PAGAYA TECHNOLOGIES LTD. RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (UNAUDITED) FOR THREE MONTHS ENDED MARCH 31, 2026 AND 2025 (in thousands, unless otherwise noted) Three Months Ended March 31, Fee revenue less production costs (FRLPC) 2026 2025 Operating Income $80,005 $47,685 Add: Technology,
Slide 24: Reconciliation of Non-GAAP Financial Measures
PAGAYA TECHNOLOGIES LTD. RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (UNAUDITED) FOR THREE MONTHS ENDED MARCH 31, 2026 AND 2025 (in thousands, unless otherwise noted) Three Months Ended March 31, 2026 2025 Operating expenses $60,378 $75,221 Adjusted to exclude the following: Share-based compensati
Slide 25: Diluted Share Calculation
PAGAYA TECHNOLOGIES LTD. Diluted Share Calculation Diluted Shares Outstanding, Treasury Stock Method for three months ended March 31, 2026 (Shares in millions1) Basic shares outstanding 83 Plus: Share options with $6.7 weighted-average exercise price 3 Plus: Options to restricted shares with $19.3 w