Pagaya Technologies Ltd. (NASDAQ: PGY), an AI-driven platform bridging Main Street and Wall Street in the financial ecosystem, reported strong fourth quarter and full-year 2025 financial results on February 9, 2026.
The company achieved GAAP net income attributable to shareholders of $34 million in Q4, a dramatic $272 million year-over-year (YoY) increase, and $81 million for the full year, up $483 million YoY. Total revenue and other income reached $335 million in the quarter (up 20% YoY) and $1.3 billion annually (up 26% YoY), reflecting scaled operations and improved economics across key verticals.
CEO and Co-Founder Gal Krubiner highlighted the results as validation of long-term investments. “Our fourth quarter and full-year results demonstrate the benefits of years of work to position our company for long-term durable growth with a focus on increasing profitability,” Krubiner said.
Adjusted EBITDA surged to $98 million in Q4 (up 53% YoY) and $371 million for the year (up from prior year), driven by operating leverage and growth in revenue from fees less production costs (FRLPC).
Q4 2025 Performance Highlights
Network volume totaled $2.7 billion, up 3% YoY (34% excluding single-family rental or SFR exposure), aligning closely with the company’s implied outlook of $2.65–$2.9 billion. FRLPC rose 12% YoY to $131 million, benefiting from stronger Personal Loan and Auto vertical economics. Adjusted net income, excluding non-cash items like share-based compensation, reached $79 million.
Pagaya advanced its funding ecosystem with key milestones. In January 2026, it signed an inaugural Point-of-Sale (POS) forward flow agreement with Sound Point for up to $720 million, completing coverage across all three core asset classes (Personal Loans, Auto, POS).
November 2025 saw the close of a $350 million AAA-rated PAID revolving ABS transaction with 26 North, providing up to $700 million capacity over 24 months. The company also onboarded three new partners across verticals while selectively reducing higher-variability risk bands.
Full-Year 2025 Achievements
Annual network volume grew 9% YoY to $10.5 billion (substantially higher excluding SFR), fueled by Auto and POS expansion under prudent underwriting. Full-year FRLPC increased 26% to $512 million.
Pagaya raised $8.5 billion in AAA-rated ABS across its shelves, launching revolving structures that created over $3 billion in capacity for Personal Loans and POS. Inaugural forward flow agreements in Auto and POS underscored institutional demand for its loan products.
Strategic Momentum and Risk Management
Pagaya’s platform optimizations included expanding the top of the funnel via new products and partners while tightening underwriting in riskier segments. This dual approach supported profitability without sacrificing volume growth. The company’s AI infrastructure continues to enable lenders to extend credit efficiently, fostering durable scaling.
2026 Outlook Signals Continued Acceleration
For Q1 2026, Pagaya guides network volume to $2.5–$2.7 billion, total revenue and other income to $315–$335 million, Adjusted EBITDA to $80–$95 million, and GAAP net income to $15–$35 million.
Full-year 2026 projections are ambitious: network volume of $11.25–$13 billion, revenue of $1.4–$1.575 billion, Adjusted EBITDA of $410–$460 million, and GAAP net income of $100–$150 million.
Pagaya’s transformation from losses to sustained profitability, coupled with expanded funding channels and vertical diversification, positions it to capitalize on AI-driven lending demand. The outlook reflects confidence in its risk framework and platform leverage for bridging credit access gaps.