Pagaya Technologies 2025 Q3 Earnings Record Revenue and Profitability Turnaround

Pagaya Technologies (PGY) delivered a record-breaking third quarter in 2025, surpassing revenue and profit expectations while raising full-year guidance. The fintech firm’s stock surged 17% pre-market on results that included a 36% year-over-year revenue increase and a dramatic shift from a $74 million net loss to a $23 million profit.

Revenue

Pagaya’s total revenue and other income reached $350.17 million in Q3 2025, a 36.3% increase from $249.28 million in the same period in 2024. This growth was driven by a $339.89 million increase in fee revenue, bolstered by $10.28 million in other income and $14.92 million in interest income. Despite a $4.64 million net investment loss, the company’s diversified revenue streams underscored its resilience and operational strength.

Earnings/Net Income

The company returned to profitability with a net income of $23.27 million in Q3 2025, marking a 131.4% improvement from a $74.23 million loss in 2024 Q3. Earnings per share (EPS) surged to $0.27, reversing a $0.93 loss per share the prior year. This represents a historic turnaround, with the company achieving its highest Q3 net income in four years. The EPS performance, though below the adjusted $1.02 referenced in additional news, reflects a significant improvement in cost management and operational efficiency.

Post-Earnings Price Action Review

Shares of Pagaya Technologies experienced robust post-earnings momentum, with the stock price rising 0.65% on the day of the report, 10.37% for the week, and 2.13% month-to-date. The 17% pre-market surge following the Q3 results highlighted investor confidence in the company’s profitability turnaround and revised guidance. Analysts attributed the rally to improved EBITDA margins, a $500 million corporate debt raise, and expanded credit facilities. However, the stock’s 16x forward P/E multiple, down from 27 three months ago, suggests a re-rating based on stronger fundamentals and disciplined growth.

CEO Commentary

Gal Krubiner, CEO and Co-Founder, emphasized the company’s operational discipline and strategic execution, stating, “Our results demonstrate another quarter of prudent underwriting and consistent execution across our network as we raise full-year guidance for the third consecutive quarter.” He highlighted the strength of Pagaya’s pipeline, noting that lenders increasingly recognize the value of its AI-driven platform. Krubiner also underscored the importance of maintaining credit underwriting standards as the company scales, signaling a balance between growth and risk management.

Guidance

Pagaya raised its full-year 2025 revenue guidance to a range of $1.3 billion to $1.325 billion, up from previous expectations of at least $1.25 billion. Adjusted EBITDA is projected to reach $372 million to $382 million, while GAAP net income is now targeted at $72 million to $82 million. For Q4, the company forecasts revenue between $333 million and $358 million and net income of $25 million to $35 million. These updates reflect confidence in sustained momentum and operational leverage, though the Q4 revenue guidance remains slightly below consensus estimates.

Additional News

In the three weeks following the Q3 earnings release, Pagaya Technologies announced a $500 million corporate debt raise rated by all three major credit agencies, expanding its revolving credit facility to $132 million. The company also reported record network volume of $2.8 billion, up 19% year-over-year, driven by growth in auto and point-of-sale lending. Additionally, Pagaya secured new bank partnerships, signaling continued expansion in its AI-powered lending ecosystem.

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