Pagaya Technologies Ltd. is a financial technology enterprise operating across Israel, the United States, and the Cayman Islands. The company specializes in ...
Pagaya Technologies Ltd. (NASDAQ: PGY), headquartered in New York, is an Israeli-American financial technology company that builds and deploys AI-powered software for the financial ecosystem. Founded in 2016, the company’s core purpose is to help financial institutions make faster and more accurate credit decisions by using proprietary artificial intelligence systems ...Pagaya Technologies Ltd. (NASDAQ: PGY), headquartered in New York, is an Israeli-American financial technology company that builds and deploys AI-powered software for the financial ecosystem. Founded in 2016, the company’s core purpose is to help financial institutions make faster and more accurate credit decisions by using proprietary artificial intelligence systems and data-driven underwriting models.
Business-wise, Pagaya operates as a technology and product partner to a range of counterparties. Rather than acting purely as a traditional balance-sheet lender, it provides AI-driven product solutions that are used by partners such as fintech lenders, traditional financial institutions, auto finance providers, and brokers. The goal is to increase credit approvals while controlling risk—effectively improving the throughput and performance of lending origination workflows. Through its “AI lending network” approach, Pagaya aims to connect capital and origination processes with smarter decisioning.
Products and services center on software platforms that evaluate loan applications and support lending origination using deep data insights and machine-learning models. These systems are designed to learn from data and enhance decision quality across the lending lifecycle—helping partners originate loans and other financial assets with improved efficiency. In practice, a large portion of the value proposition comes from model performance (e.g., predictive accuracy and stability), integration into existing lending processes, and the operational advantage of automating and accelerating parts of the credit decision pipeline.
From a cost and operating perspective, an AI-focused financial technology company typically bears key cost drivers such as data acquisition and management, model development and maintenance (including continuous training/validation), cloud/compute for inference and experimentation, and compliance/controls related to regulated lending. The platform’s effectiveness may be reflected in the company’s operating metrics and profitability profile reported on a trailing-twelve-month basis, including gross profit margin (around 40.6%), EBIT margin (around 7.4%), net profit margin (around 9.6%), and operating profit margin (around 21.2%). Valuation and cash-flow efficiency indicators provided for trailing twelve months include an enterprise value (about $2.47B) with EV-to-sales around 1.86 and EV-to-free-cash-flow around 9.8, suggesting the market is pricing in growth and/or improvements in cash generation over time.
Key people include CEO and co-founder Gal Krubiner, who has served as CEO and a director since co-founding the company in 2016, alongside other founding leadership that helped shape the company’s technology direction. Pagaya employs several hundred people (about 518 full-time employees reported in the provided dataset), placing it in the mid-sized technology workforce tier.
Overall, Pagaya’s “wishes” from a strategy standpoint align with continuing to scale partner adoption, improving underwriting and decisioning performance across more use cases, expanding the breadth of lending opportunities serviced through its network, and sustaining reliable operations under evolving market and regulatory conditions.
YoYYoY means Year-over-Year. It compares the latest annual value with the previous annual value to show long-term trend strength.
QoQQoQ means Quarter-over-Quarter. It compares the latest quarter with the immediately previous quarter to show short-term momentum changes.
RevenueThe total money that came through the front door from selling things, before paying a single bill. Think of it as the grand total of every credit card swipe from customers. (YoY compares this year to last year's performance, while QoQ compares the current three months to the previous three).
$1.3B
+25.6%
+22.3%
Net IncomeThe absolute bottom line. If the company paid every single supplier, employee, banker, and tax collector, this is the actual money left in their pocket at the end of the day.
$81.4M
+120.3%
+83.3%
Gross MarginThe basic markup. If they sell a $100 pair of sneakers, this percentage tells you how much of that price tag is profit right after paying for the rubber and shoelaces, but before paying for things like store rent or TV commercials.
+40.6%
+0.2%
-1.1%
Operating MarginThe 'day job' efficiency score. Out of every dollar a customer spends, this shows how many cents the company keeps after making the product AND paying for all the everyday corporate overhead (like salaries, marketing, and keeping the lights on).
+17.7%
+166.7%
+13.0%
Net MarginThe final take-home percentage. When you strip away every conceivable cost, tax, and interest payment, this is the exact number of cents the company truly gets to keep from every dollar in sales.
+6.5%
+116.1%
+49.9%
Free Cash FlowThe holy grail of corporate cash. It's the spendable, physical money left over after the business pays for its daily operations AND buys the big, expensive upgrades (like new factories or servers) it needs to survive. This is the 'free' money they can use to pay dividends or buy back stock.
$224.7M
+419.2%
+78.1%
FCF MarginThe ultimate cash conversion rate. It shows how good the company is at turning regular sales directly into cold, hard, spendable cash. A high percentage means the business is an absolute cash-printing machine.
+17.8%
+313.5%
+45.6%
Debt / EquityThe financial risk gauge. It compares how much of the company's empire was built using borrowed money (loans) versus the owners' own money (shareholders). A high number means they are heavily leveraged and playing a riskier game; a low number means they are playing it safe.
178.8%
-14.2%
-12.9%
Current RatioThe 12-month survival check. It simply compares the cash they have right now (plus things they can quickly turn into cash) against the immediate bills they absolutely must pay this year. A score above 1 means they have enough in the wallet to cover the upcoming bills without panicking.
11.06x
+515.4%
+77.5%
Total AssetsThe absolute size of the company's empire. It bundles together absolutely everything of value they own—from the cash in the register and the inventory in the warehouse, to the software patents in the vault and the factories on the ground.
Operator: Hello, and welcome, everyone, joining today's Pagaya First Quarter 2026 Earnings Call. [Operator Instructions] Please note, this call is being recorded, and we are standing by. It is now my pleasure to turn the meeting over to Craig Smyth, Investor Relations. Please go ahead.
Craig Smyth: Thank you, and welcome to Pagaya's First Quarter 2026 Earnings Conference Call. Joining me today to talk about our business and results are Gal Krubiner, Chief Executive Officer of Pagaya; Sanjiv Das, President; Evangelos Perros, Chief Financial Officer; and Jon Dobres, Chief Strategy Officer. You can find the materials that accompany our prepared remarks and a replay of today's webcast on the Investor Relations section of our website at investor.pagaya.com. Our remarks today will include forward-looking statements that are based on our current expectations and forecasts with respect to, among other things, our operations and financial performance, including our financial outlook for the second quarter and full year 2026. Our actual results may differ materially from those contemplated by these forward-looking statements. Factors that could cause these results to differ materially from our expectations include, but are not limited to, those risks described in today's press release and our filings with the U.S. Securities and Exchange Commission. We undertake no obligation to update any forward-looking statements as a result of new information or future events. Please refer to the documents we file from time to time with the SEC, including our 10-K, 10-Q and other reports for a more detailed discussion of these factors. Additionally, non-GAAP financial measures, including adjusted EBITDA, adjusted EBITDA margin, adjusted net income, fee revenue less production costs, or FRLPC, FRLPC as a percentage of network volume, core operating expenses and core operating expenses as a percentage of FRLPC will be discussed on the call. We also provide an outlook for the second quarter and the full year 2026 on a non-GAAP basis. Reconciliations to the most directly comparable GAAP financial measures are available to the extent available without unreasonable effort in our earnings release and other materials, which are posted on our Investor Relations website. We encourage you to review the shareholder letter, which was furnished with the SEC on Form 8-K today for detailed commentary on our business and performance in conjunction with the company earnings supplement and press release. With that, let me turn the call over to Gal.
Gal Krubiner: Thank you, and welcome, everyone. Before turning to the quarter, this morning, we announced that EP is stepping down as CFO after nearly 5 years with Pagaya. He has been a great partner to Sanjiv and me and was instrumental in laying the foundation for positive GAAP net income and cash flow, one of the most important pillars for our long term success. The transition takes effect June 15, with EP remaining as a strategic adviser …
