Key Highlights

  • Revenue of USD 390.49 million rose 12% year over year, above the consensus estimate of USD 382.10 million.
  • GAAP diluted EPS of USD 0.52 beat the consensus estimate of USD 0.47, up from USD 0.23 a year earlier.
  • Network Volume grew 29% to USD 3.6 billion, and adjusted EBITDA rose 22% to a record USD 130 million.
  • Annual GAAP Net Income guidance rose to USD 162 to 182 million, Revenue guided to USD 1.45 to 1.5 billion.

Pagaya Technologies Ltd. (NASDAQ:PGY) reported third quarter 2026 total revenue and other income of USD 390.49 million, up 12% from USD 350.17 million and above the consensus estimate of USD 382.10 million. GAAP Diluted Earnings per Share were USD 0.52, ahead of the consensus estimate of USD 0.47 and more than double the USD 0.23 reported a year earlier.

Net income attributable to Pagaya shareholders reached a record USD 49.7 million, up USD 27 million, against an outlook range of USD 42 million to USD 52 million. Operating Income rose 41% to USD 112.5 million, as total costs and operating expenses grew only 3% to USD 277.9 million.

Volume, Fee Margin and Operating Leverage

Network volume of USD 3.6 billion grew 29%, driven by the Auto and Personal Loan verticals, and application volume rose to USD 377 billion. Revenue from fees increased 7% to USD 362.2 million, while interest income climbed to USD 29.0 million from USD 14.9 million. Fee revenue less production costs was USD 146 million, up 5%, though the ratio to network volume narrowed 91 basis points to 4.1% because of higher benchmark rates.

Adjusted EBITDA of USD 130 million carried a 33% margin, up 3 percentage points. The chief financial officer said core operating expenses were USD 45 million, down USD 2 million, and have been constant for seven straight quarters. The company raised consumer APRs from September by 100 basis points in Personal Loans and 140 basis points in Auto in response to benchmark rate moves of about 130 basis points this year.

Guidance and Funding Capacity

Full year 2026 guidance calls for network volume of USD 12.725 billion to USD 13.025 billion, revenue of USD 1.45 billion to USD 1.5 billion, adjusted EBITDA of USD 465 million to USD 485 million and GAAP net income of USD 162 million to USD 182 million. Fourth quarter guidance includes revenue of USD 355 million to USD 405 million, adjusted EBITDA of USD 117 million to USD 137 million and GAAP net income of USD 42 million to USD 62 million. The chief financial officer said higher loan pricing is projected to offset the rate impact by the start of next year.

The company closed more than USD 2 billion of committed capital, including a USD 700 million auto forward flow with Neuberger Berman, a USD 700 million Personal Loan variable funding note and a revolving securitization supporting USD 850 million of production. It raised USD 3 billion in ABS transactions and onboarded Citizens Financial Group and First National Bank of Omaha. Chief Executive Officer Gal Krubiner said the pipeline entering the fourth quarter is the largest in company history.

Data Points to Follow Next Quarter

Several figures stand out for the next report. Fee revenue less production costs as a share of network volume, now 4.1%, is guided to stay within a 4% to 5% band for the full year. Fourth quarter network volume is guided to USD 2.961 billion to USD 3.261 billion, below the third quarter level. Core operating expenses of USD 45 million and the effect of the September APR increases are further reference points.