Pagaya Technologies' Q2 Earnings Surge 14% Year-Over-Year, Stock Up 297%

Pagaya Technologies, a leading financial technology company, has reported robust second-quarter earnings for 2025, garnering positive feedback from Wall Street analysts. The company's strong financial performance has led to upward revisions in target prices and the maintenance of "outperform" ratings from key analysts.

JMP Securities has increased its target price for Pagaya from $26 to $35 per share, while Keefe, Bruyette & Woods has raised its target price from $27 to $38 per share. Both firms have retained their "outperform" ratings, indicating their optimism about the company's future prospects.

Pagaya's recent quarterly results have been particularly impressive. The company achieved a record GAAP net income of $17 million, driven by revenue growth and cost reductions. This performance was bolstered by significant growth in its automotive and point-of-sale verticals, which contributed to a record $2.6 billion in transaction volume, a 14% year-over-year increase. Additionally, Pagaya's adjusted EBITDA reached a record $86 million, marking a $36 million increase from the previous year.

Analysts have noted that Pagaya is at a critical inflection point, where nearly all incremental gross profit is being converted into pre-tax income. This efficiency in converting revenue into profit is a key factor in the company's strong financial performance and has contributed to its recent stock price appreciation. Pagaya's latest closing price was $36.88, reflecting a year-to-date increase of 297%.

The positive outlook from analysts is supported by Pagaya's strategic initiatives and operational improvements. The company's focus on high-growth verticals and cost management has positioned it well to capitalize on market opportunities. As Pagaya continues to execute on its growth strategy, it is expected to maintain its strong financial performance and attract further investor interest.