Pagaya Technologies Ltd -A (NASDAQ:PGY) Surpasses Q2 2025 Estimates with Strong Revenue and EPS Beat

PAGAYA TECHNOLOGIES LTD -A (NASDAQ:PGY) reported its second-quarter 2025 financial results, delivering revenue and earnings per share (EPS) that exceeded analyst expectations. The company posted revenue of $326.4 million, surpassing the consensus estimate of $318.4 million. Adjusted EPS came in at $0.64, significantly higher than the projected $0.21. The strong performance has been met with positive market reaction, with shares rising over 13% in pre-market trading.

Key Financial Highlights vs. Estimates

• Revenue: $326.4M (actual) vs. $318.4M (estimated) – a 2.5% beat.
• Adjusted EPS: $0.64 (actual) vs. $0.21 (estimated) – a 205% beat.
• GAAP Net Income: $17M, exceeding the company’s own guidance of breakeven to $10M.

The outperformance was driven by strong growth in network volume, which reached $2.6 billion (up 14% year-over-year), and improved fee revenue less production costs (FRLPC), which climbed 30% to $126 million. Adjusted EBITDA also hit a record $86 million, up $36 million from the prior year.

Market Reaction

The stock surged in pre-market trading, reflecting investor optimism following the earnings beat. This follows a mixed performance in recent weeks, with shares up 34% over the past month but down nearly 7% in the last two weeks. The strong Q2 results appear to have reignited bullish sentiment, particularly given the company’s improved profitability metrics.

Outlook vs. Analyst Expectations

Pagaya provided guidance for Q3 and full-year 2025:

• Q3 2025 Revenue: Expected between $330M-$350M (vs. analyst estimates of $316.7M).
• Full-Year 2025 Revenue: Forecasted at $1.25B-$1.325B (vs. consensus of $1.27B).

The company’s outlook suggests confidence in sustaining growth, particularly in its auto and point-of-sale lending verticals. The raised guidance aligns with recent business expansions, including a new $2.5B forward flow agreement with Castlelake for personal loans.

Key Takeaways from the Earnings Report

• Record network volume and revenue growth across core segments.
• Successful execution of six ABS transactions totaling $2.3B in Q2.
• Expansion of funding partners to 145, with two additional deals completed in Q3.
• First AAA-rated auto ABS securitization, signaling credit strength.

For more detailed earnings estimates and historical performance, visit Pagaya’s earnings page.

Disclaimer: This article is for informational purposes only and does not constitute investment advice.