Pagaya Technologies Posts Record Q2 Earnings, Raises 2025 Revenue Guidance

Pagaya Technologies (PGY) reported a record GAAP net income of $16.7 million in Q2 2025, up from a net loss of $74.8 million in the prior-year quarter. Total revenues and other income rose 30% YoY to $317.7 million, driven by a 31% increase in network AI fees and 52.9% growth in contract fees. The company raised its 2025 revenue guidance to $1.25-$1.325 billion, up from $1.175-$1.3 billion.

Pagaya Technologies (PGY) reported its fiscal 2025 Q2 earnings on Aug 07, 2025, showcasing strong performance and significant revenue growth. The company's total revenue increased by 31% year-over-year (YoY) to $317.7 million, driven by a 31% rise in network AI fees and a 52.9% growth in contract fees. This robust revenue growth underscores the effectiveness of Pagaya's AI-driven underwriting and expanded partner network.

The company's net income surged 120% YoY to $16.7 million, reversing a net loss of $74.8 million in Q2 2024. This remarkable turnaround highlights the strength of Pagaya's business model and its ability to drive profitability. The earnings per share (EPS) improved to $0.20, reversing from a loss of $1.04 per share the prior year.

Following the earnings report, the stock price of Pagaya Technologies declined 14.94% during the latest trading day. However, the stock has shown resilience with a 1.90% gain during the most recent full trading week and a 39.44% surge month-to-date.

Pagaya raised its full-year 2025 revenue guidance to $1.25-$1.325 billion, up from $1.175-$1.3 billion. The company anticipates network volume of $10.5-$11.5 billion, total revenue of $1.25-$1.325 billion, and adjusted EBITDA of $345-$370 million. For Q3 2025, the company expects network volume of $2.75-$2.95 billion, total revenue of $330-$350 million, and adjusted EBITDA of $90-$100 million. GAAP net income guidance for Q3 is $10-$20 million, though the company expects a net loss of $5-$10 million due to one-time costs from the bond issuance and early debt retirement. For the full year, GAAP net income is projected to range between $55-$75 million.

The recent $500 million bond issuance validates the company's capital structure strategy and long-term resilience. The outlook reflects disciplined, through-cycle growth and continued margin expansion, driven by high operating leverage and stable credit performance.

[1] https://www.ainvest.com/news/pagaya-technologies-2025-q2-earnings-strong-performance-net-income-surges-120-2508/
[2] https://mvcinvesting.substack.com/p/pagaya-technologies-pgy-q2-2025-earnings