Free cash flow generation has improved to a 12.6% margin in 2026Q1, though operating cash flow remains sensitive to working capital outflows of $31.0 million.
| Cash from Operations | 247.38M | 238.62M | 66.52M | 9.58M | -40M | 49.81M | 4.26M | -7.95M |
| Operating CF Margin % | - | 18.92% | 6.62% | 1.24% | -5.84% | 11.17% | 4.64% | -21.99% |
| Operating CF Growth % | 1734.69% | 258.72% | 594.58% | 123.94% | -180.3% | 1070.1% | 153.57% | - |
| Net Income | 98.19M | 81.39M | -445.7M | -196.74M | -302.32M | -69.52M | 19.92M | -5.62M |
| Depreciation & Amortization | 26.22M | 30.08M | 28.75M | 19.13M | 6.29M | 815K | 290K | 91K |
| Stock-Based Compensation | 20.78M | 0 | 61.5M | 71.06M | 0 | 67.78M | 156K | 74K |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 3.71M |
| Other Non-Cash Items | 181.71M | 200.42M | 419.88M | 137.02M | 297.96M | 53.59M | -331K | 1.13M |
| Working Capital Changes | -80.25M | -73.27M | 2.09M | -20.89M | -41.94M | -2.86M | -15.78M | -3.62M |
| Change in Receivables | -34.89M | -26.28M | -24M | -20.74M | -46.45M | -27.55M | -19.72M | -3.78M |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Payables | 1M | 3.42M | 5.68M | -448K | -9.84M | 11M | 427K | 0 |
| Cash from Investing | -298.74M | -309.71M | -498.64M | -412.69M | -159.95M | -140.74M | -122.76M | -36.24M |
| Capital Expenditures | -29.3M | -29.9M | -17.74M | -20.19M | -22.41M | -6.62M | -1.1M | -666K |
| CapEx % of Revenue | 2.26% | 2.37% | 1.77% | 2.61% | 3.27% | 1.49% | 1.2% | 1.84% |
| Acquisitions | -318K | -159K | -9.24M | 0 | 105.47M | -14.07M | 350K | 0 |
| Investments | - | - | - | - | - | - | - | - |
| Other Investing | -37.68M | 318K | -5.5M | 1.61M | 0 | 0 | 0 | -35.57M |
| Cash from Financing | 197.62M | 129.6M | 436.69M | 289.1M | 332.45M | 289.62M | 119.5M | 46.54M |
| Debt Issued (Net) | 232.85M | 148.44M | 294.07M | 207.08M | 181.51M | 37.91M | 0 | 0 |
| Equity Issued (Net) | 4.87M | 6.92M | 101.82M | 102.14M | 293.49M | 172.65M | 64.81M | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -40.11M | -25.76M | 40.79M | -20.13M | -142.55M | 79.07M | 54.69M | 46.54M |
| Net Change in Cash | 139.91M | 81.83M | 3.98M | -114.53M | 134.55M | 198.69M | 1M | 4.88M |
| Free Cash Flow | 234.07M | 224.72M | 43.28M | -10.61M | -62.41M | 43.19M | 3.16M | -8.61M |
| FCF Margin % | 18.05% | 17.82% | 4.31% | -1.37% | -9.1% | 9.69% | 3.44% | -23.83% |
| FCF Growth % | 400.05% | 419.18% | 507.87% | 83% | -244.5% | 1266.68% | 136.69% | - |
| FCF per Share | 2.42 | 2.70 | 0.61 | -0.18 | -1.63 | 2.65 | 0.17 | -0.54 |
| FCF Conversion (FCF/Net Income) | 2.38x | 2.93x | -0.17x | -0.07x | 0.13x | -0.55x | 0.29x | 1.41x |
| Interest Paid | 0 | 0 | 80.32M | 17.78M | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 4.91M | 9.17M | 0 | 2.61M | 324K | 0 |
ABS market liquidity sensitivity
As reported in recent financial filings, Pagaya's operating cash flow consistently exceeds net income, with the OCF/NI ratio reaching 1.75 in 2026Q1, which suggests that non-cash fair value adjustments continue to obscure the underlying cash-generating capacity of the company's core credit-matching platform.
The persistent gap between net income and operating cash flow indicates that GAAP earnings are heavily influenced by non-cash accounting entries related to retained interests. Investors should monitor whether this divergence narrows as the business matures, as a reliance on non-cash income to drive bottom-line results may mask underlying operational volatility.
Based on quarterly data, Pagaya has successfully transitioned to positive free cash flow, achieving a 12.6% FCF margin in 2026Q1, a marked improvement from the negative cash flow territory observed in 2024Q3, reflecting better alignment between operational scale and capital expenditure requirements.
The shift toward consistent positive free cash flow suggests that the company is beginning to capture the operating leverage inherent in its software-based infrastructure. However, the sustainability of this trajectory remains contingent on maintaining volume growth without requiring proportional increases in capital-intensive balance sheet retention.
According to recent SEC filings, Pagaya experienced a significant working capital outflow of $31.0 million in 2026Q1, highlighting the inherent lumpiness of its business model where timing differences between loan origination and institutional funding can create substantial, albeit temporary, pressure on operating cash flow.
The recurring negative working capital changes suggest that the company's cash cycle is highly sensitive to the velocity of its securitization pipeline. Analysts should interpret these fluctuations as a structural feature of the originate-to-distribute model rather than a sign of operational inefficiency, though it warrants close monitoring during periods of market stress.
As evidenced by financial statements, Pagaya maintains a disciplined capital expenditure profile with a CapEx/Revenue ratio of approximately 1.0% in 2026Q1, confirming that the company's core AI-driven infrastructure requires minimal physical asset investment to support its ongoing network volume expansion.
The low capital intensity reinforces the company's positioning as a software-first infrastructure provider rather than a traditional lender. This lean asset base allows for greater flexibility, provided that the company does not feel compelled to increase capital retention to satisfy institutional investors during periods of market volatility.
Quick answers to the most common questions about buying PGY stock.
Pagaya Technologies Ltd. (PGY) generated $238.6M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Pagaya Technologies Ltd. (PGY) generated $224.7M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Pagaya Technologies Ltd. (PGY) spent $29.9M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.