Pagaya Technologies Ltd. · NASDAQ:PGY
Pagaya Technologies — Q2 2025 Earnings Presentation
35 slides from Pagaya Technologies's earnings presentation, Aug 7, 2025
Slide 1: Pagaya Technologies Investor Presentation
August 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, 145 Funding partners >$2.9T Applications evaluated since inception >$29B Funding raised across >70 ABS auto, point-of-sale, credit transactions since 2018 card, and single-family rental) ~$67M ~$1.3B Annualized run-rate total revenu
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 >$2.9T 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% ~$112K 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: Pagaya Network Connects Lenders with Institutional Capital, Better Serving Customers
Pagaya Network Connects Lenders with Institutional Capital, Better Serving Customers Lending Partners Funding Partners PGY’s tech drives new PGY delivers diverse assets at customers for Banks and other scale in an automated manner Lending Partners AI • Origination growth without incremental capital
Slide 9: 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 10: 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 11: 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 12: Constantly expanding data moat
The Competitive Differentiator Constantly expanding data moat Pagaya leverages its network of 31 partners to pair seasoned borrower data with the latest production, giving selection insights and real-time adaptability across all stages of the credit cycle Historical Production Real-Time Tens of Bill
Slide 13: Our flagship product provides a win-win-win for lending partners, their customers and funding 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 14: 2Q'25 Results: Strong execution driving profitable growth
2Q’25 Results: Strong execution driving profitable growth 2Q’25 Total Revenues 2Q’25 FRLPC1 • 2nd consecutive quarter and record GAAP Net Income positive, ahead of guidance • Record Revenue, FRLPC, and Adjusted EBITDA $326M $126M 30% ~$1.3B 30% >$500M • Core OpEx expenses as a % of FRLPC vs. 2Q’24 2
Slide 15: Growth Strategy
02 Growth Strategy 15 15
Slide 16: 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 17: 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 Top 5 80% 2-4 Partner additions annually, Auto of top 25 U.S. Banks with a focus on large by asset size Captive banks and auto captives Banks POS
Slide 18: Monetization is improving as evidenced by FRLPC % upside relative to target range
Monetization is improving as evidenced by FRLPC1 % upside relative to target range Established a playbook to evaluate lender economics over time as we strengthen our value proposition • Continue to boost monetization among leading partners, Growth of FRLPC1 margin % over time & based on adding new p
Slide 19: 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 Growth Market Share & Wallet Share Enable lenders to capture customers that Increase Growth Product roadmap designed to drive & Customer otherwise woul
Slide 20: Funding Strategy
02 Funding Strategy 20 20
Slide 21: Access to diverse sources of funding limits Pagaya's use of capital to fund volume
Access to diverse sources of funding limits Pagaya’s use of capital to fund volume 2025 Funding Announcements Funding Highlights ~$2.5B ✓ Raised >$29B in our ABS program across >70 Funded in PAID* transactions with 145 institutional funding partners year to date ~$900M ✓ #1 ABS issuer of Personal Lo
Slide 22: 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 $7.2 $6.6 $6.1 $6.2 145 132135 125 $4.5 120 116 98 89 84 77 6767 52 474
Slide 23: Financials
03 Financials 23 23
Slide 24: 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 30% 30% 55% 26% 28% 18% 38% 21% 49% 28% $326 $117 $116 $126 $257 $279 $290 $97 $100 $250 Take 2Q'24 3Q'24 4Q'24 1Q'25 2Q'25 2Q'24 3Q'24 4Q'24
Slide 25: Expanding FRLPC % providing stronger unit economics and greater revenue visibility
Expanding FRLPC % providing stronger unit economics and greater revenue visibility Fee Revenue Less Production Costs (“FRLPC”)* represent net fees earned from lending and funding partners Target Range for FRLPC as % of Network Volume (1) 3.0% to 4.0% FRLPC % of Network Volume 3.5% to 4.5% 4.0% to 5.
Slide 26: Illustrative unit economics: FRLPC economics
Illustrative unit economics: FRLPC1 economics 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 27: Growing network volumes while maintaining conversion rates at historical lows
Growing network volumes while maintaining conversion rates at historical lows $238B Applications evaluated in 2Q’25 ~1% Conversion rate of applications to issued loans in 2Q’25 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 Quarterly Appli
Slide 28: 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% 4.8% 5.2% 160% 4.5% 4.2% 4.3% 3.8% 4.2% 140% 3.3% 3.4% 3.2% 3.0% 2.9% 3.0% 120% 2.7% 3.2% 100% 2.2% 1% 25% 80% 32% 43% 58% 60% 63% 63% 69% 1.2% 71% 71% 60% 77% 81% 99% 0.2% 40% 75%
Slide 29: Attractive financial profile rooted in profitability & high operating margins
Attractive financial profile rooted in profitability & high operating margins Pagaya’s operating leverage drives high FRLPC* to net income conversion $ in millions FRLPC Core Opex Core Opex as a % of FRLPC $126 $117 $116 $97 $100 $55 $53 $57 $44 $49 57% 52% 49% 38% 39% 2Q'24 3Q'24 4Q'24 1Q25 2Q'25 $
Slide 30: 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 +13% +25% +70% +$511M YoY YoY YoY YoY $10.5B to $11.5B $55M to $75M $9.7B $1.25B to $345M to $1.325B $370M $1.03B $210M ($446M) 2024A 2025E 2024A 2025E 2024A 2025E 2024A 2025E (
Slide 31: 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 >$2.9T of applications seen since inception existing
Slide 32: Appendix: Non-GAAP Reconciliation
05 Appendix: Non-GAAP Reconciliation 32 32
Slide 33: Net Income (Loss) Attributable to Pagaya Technologies Ltd. Adjusted to exclude the following
PAGAYA TECHNOLOGIES LTD. RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (UNAUDITED) (in thousands) 2Q'24 3Q'24 4Q'24 1Q'25 2Q'25 Net Income (Loss) Attributable to Pagaya Technologies Ltd. $ (74,785) $ (67,476) $ (237,922) $ 7,893 $ 16,655 Adjusted to exclude the following: Share-based compensation 18
Slide 34: Add: Technology, data and product development
PAGAYA TECHNOLOGIES LTD. RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (UNAUDITED) (in thousands, unless otherwise noted) 2Q'24 3Q'24 4Q'24 1Q'25 2Q'25 Operating Income $ 5,027 $ 22,384 $ 31,739 $ 47,685 $ 56,469 Add: Technology, data and product development 21,935 16,655 18,601 19,444 18,455 Add: S
Slide 35: Operating expenses Adjusted to exclude the following
PAGAYA TECHNOLOGIES LTD. RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (UNAUDITED) (in thousands, unless otherwise noted) 2Q'24 3Q'24 4Q'24 1Q'25 2Q'25 Operating expenses $ 99,715 $ 85,885 $ 89,451 $ 75,221 $ 78,464 Adjusted to exclude the following: Share-based compensation 18,044 12,333 15,645 13,