Stock Analysis

Stock Analysis · Pagaya Technologies Ltd (PGY)

Overview

Pagaya Technologies Ltd (PGY) is a financial technology company that builds and operates an AI-driven platform used in consumer credit. In simple terms, Pagaya works with banks and other lending partners to help them evaluate borrowers, approve more loans that fit their risk rules, and package those loans so long-term capital providers can fund them.

The business sits between two groups: (1) companies that originate loans (for example, lenders offering personal loans, auto loans, or point-of-sale financing) and (2) investors and funding partners that provide capital. Pagaya’s goal is to improve how credit decisions are made and how loans are financed, using data models and automation.

Pagaya’s revenue is primarily tied to its network activity—when loans are originated through partners and then distributed to funding sources. In company reporting, these economics are generally described through items such as fees for facilitating origination and fees connected to funding, securitization, and related program activities. Exact revenue splits by category can change over time and are best read directly from the latest annual report segment and revenue note disclosures.

Commonly described revenue drivers include:

Fees tied to facilitating loan origination through partners
Fees and other income connected to funding programs and capital markets execution (for example, packaging loans and placing them with funding providers)
Other platform-related revenue items (as disclosed in filings)

From 2021 to 2025, total revenue increased from about $446M to about $1.26B. Over the same period, gross profit rose (about $214M to about $512M), and operating income turned positive in 2024–2025 (about $39M and $52M, respectively). Net income was volatile, including large losses in 2022–2024, followed by positive net income in 2025 (about $81M). Interest expense is a meaningful line item across the period.

Key Figures

Metric	Value	Industry ⓘ
Date	Feb 13, 2026
Context
Sector	Technology
Industry	Software - Infrastructure
Market Cap ⓘ	$996.91M
Beta ⓘ	5.88
Fundamental
P/E Ratio ⓘ	N/A	25.67
Profit Margin ⓘ	6.25%	6.91%
Revenue Growth ⓘ	19.80%	15.20%
Debt to Equity ⓘ	192.24%	19.82%
PEG ⓘ	0.03
Free Cash Flow ⓘ	$183.50M

Pagaya’s market capitalization is about $1.0B. The stock’s beta is about 5.88, which indicates the share price has historically moved much more than the broader market. On operating metrics, revenue growth is about 19.8% year over year (above the industry median of about 15.2%). Profit margin is about 6.25% versus an industry median near 6.91%. Debt-to-equity is about 192% versus an industry median near 20%, pointing to significantly higher leverage than many peers. Trailing twelve-month free cash flow is about $183.5M.

Growth (Medium)

Pagaya operates in areas that are structurally supported by long-term trends: digitization of consumer lending, greater use of automated decisioning, and ongoing demand for efficient ways to connect loan originators with diversified funding sources. If these trends continue, platforms that can improve approval rates while managing credit performance and funding access can have room to expand.

Strategy-wise, the company’s growth logic is straightforward: add and deepen relationships with originators, increase the volume of qualified loans that run through its network, and maintain dependable access to capital markets and other funding channels. The more consistent the platform is across credit cycles, the easier it is to scale.

Year-over-year revenue growth has been positive but uneven. It was very high in 2022 (above 70% in some quarters), then moderated into single digits in parts of 2023, and re-accelerated through much of 2024 and 2025 (roughly in the high teens to low 30% range).

Free cash flow has also been volatile, including a negative period in 2023 (about -$87M on a trailing basis), followed by a return to positive territory in 2024 and 2025. The latest value shown is positive (about $183.5M), which can matter for flexibility because it may support funding needs, investment in product development, or balance sheet management.

Potential catalysts discussed in company materials often include expanding partner programs, scaling new lending products or geographies (if applicable), and improved capital markets conditions that support loan funding and securitization volume. In a model like Pagaya’s, the ability to keep funding channels open through changing credit conditions can be a key driver of growth consistency.