Operating margins have expanded to 25.2% in 2026Q1, reflecting improved efficiency even as year-over-year revenue growth decelerated to 12.5%.
| Sales/Revenue | 1.3B | 1.26B | 1B | 772.81M | 685.41M | 445.87M | 91.74M | 36.14M |
| Revenue Growth % | 23.45% | 25.56% | 29.99% | 12.75% | 53.73% | 386.01% | 153.84% | - |
| Cost of Goods Sold | 759.65M | 749.17M | 597.65M | 508.94M | 451.08M | 232.32M | 49.09M | 27.97M |
| COGS % of Revenue | - | 59.39% | 59.49% | 65.86% | 65.81% | 52.11% | 53.5% | 77.39% |
| Gross Profit | 536.93M | 512.17M | 406.9M | 263.87M | 234.33M | 213.54M | 42.66M | 8.17M |
| Gross Margin % | 41.41% | 40.61% | 40.51% | 34.14% | 34.19% | 47.89% | 46.5% | 22.61% |
| Gross Profit Growth % | - | 25.87% | 54.2% | 12.61% | 9.73% | 400.63% | 421.97% | - |
| Operating Expenses | 254.56M | 288.36M | 340.06M | 288.27M | 485.83M | 219.35M | 21.4M | 12.08M |
| OpEx % of Revenue | - | 22.86% | 33.85% | 37.3% | 70.88% | 49.2% | 23.33% | 33.41% |
| Selling, General & Admin | 179.64M | 213.15M | 291.19M | 253.12M | 398.42M | 181.86M | 16.34M | 6.44M |
| SG&A % of Revenue | - | 16.9% | 28.99% | 32.75% | 58.13% | 40.79% | 17.81% | 17.82% |
| Research & Development | 71.71M | 75.21M | 76.57M | 74.38M | 150.93M | 66.21M | 12.33M | 5.43M |
| R&D % of Revenue | - | 5.96% | 7.62% | 9.63% | 22.02% | 14.85% | 13.44% | 15.04% |
| Other Operating Expenses | -1000K | 0 | -27.7M | -39.24M | -63.51M | -28.72M | -7.27M | 200K |
| Operating Income | 282.37M | 223.81M | 66.84M | -24.4M | -251.5M | -5.81M | 21.25M | -3.9M |
| Operating Margin % | 21.78% | 17.74% | 6.65% | -3.16% | -36.69% | -1.3% | 23.17% | -10.8% |
| Operating Income Growth % | - | 234.84% | 373.93% | 90.3% | -4229.57% | -127.33% | 644.39% | - |
| EBITDA | 305.98M | 253.88M | 95.59M | -5.27M | -245.21M | -4.99M | 21.54M | -3.81M |
| EBITDA Margin % | 23.6% | 20.13% | 9.52% | -0.68% | -35.78% | -1.12% | 23.48% | -10.55% |
| EBITDA Growth % | 123.35% | 165.59% | 1912.88% | 97.85% | -4810.11% | -123.18% | 664.99% | - |
| D&A (Non-Cash Add-back) | 23.61M | 30.08M | 28.75M | 19.13M | 6.29M | 815K | 290K | 91K |
| EBIT | 157.92M | 51.63M | 39.14M | -63.64M | -315.02M | -34.53M | 13.98M | -3.9M |
| Net Interest Income | 57.09M | 40.02M | 32.29M | 38.75M | 57.76M | 28.88M | 6.99M | 0 |
| Interest Income | 57.09M | 40.02M | 32.29M | 38.75M | 57.76M | 28.88M | 6.99M | 0 |
| Interest Expense | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | -203.39M | -172.18M | -487.96M | -156.77M | -24.87M | -55.84M | -55K | -124K |
| Pretax Income | 78.98M | 51.63M | -421.12M | -181.17M | -276.37M | -61.65M | 21.2M | -4.03M |
| Pretax Margin % | 6.09% | 4.09% | -41.92% | -23.44% | -40.32% | -13.83% | 23.11% | -11.15% |
| Income Tax | -14.06M | -19.75M | 24.58M | 15.57M | 16.4M | 7.88M | 1.28M | 172K |
| Effective Tax Rate % | -17.8% | -38.25% | -5.84% | -8.59% | -5.93% | -12.77% | 6.02% | -4.27% |
| Net Income | 98.19M | 81.39M | -401.41M | -128.44M | -302.32M | -91.15M | 14.47M | -5.62M |
| Net Margin % | 7.57% | 6.45% | -39.96% | -16.62% | -44.11% | -20.44% | 15.77% | -15.55% |
| Net Income Growth % | 126.37% | 120.28% | -212.53% | 57.52% | -231.67% | -729.93% | 357.47% | - |
| Net Income (Continuing) | 93.04M | 71.37M | -445.7M | -196.74M | -292.77M | -69.52M | 19.92M | -4.2M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 69.84M | 75.33M | 115.06M | 106.03M | 211.9M | 176.06M | 84.94M | 24.8M |
| EPS (Diluted) | 1.02 | 0.93 | -5.66 | -2.14 | -7.65 | -4.27 | 1.08 | -0.53 |
| EPS Growth % | 121.09% | 116.43% | -164.49% | 72.03% | -79.16% | -495.37% | 303.77% | - |
| EPS (Basic) | - | 1.04 | -5.66 | -2.14 | -7.65 | -4.27 | 1.08 | -0.54 |
| Diluted Shares Outstanding | 96.7M | 83.1M | 70.88M | 60.04M | 38.25M | 16.28M | 18.38M | 15.93M |
| Basic Shares Outstanding | 88.19M | 78.34M | 70.88M | 60.02M | 38.25M | 16.28M | 18.38M | 15.54M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - |
ABS market liquidity sensitivity
According to quarterly financial disclosures, Pagaya's year-over-year revenue growth has decelerated to 12.5% in 2026Q1, down from the peak expansion rates observed in 2025, suggesting that the initial rapid adoption phase of its AI-driven credit infrastructure is transitioning toward a more mature, volume-dependent growth trajectory.
The deceleration in top-line growth indicates that the company is increasingly reliant on existing partner network velocity rather than explosive new customer acquisition. Investors should monitor whether this trend reflects market saturation in core personal loan segments or a strategic pivot toward more conservative underwriting standards.
As reported in recent income statements, Pagaya has successfully expanded its operating margin to 25.2% in 2026Q1, a significant improvement from the low single-digit margins seen in early 2024, demonstrating that the company is finally capturing the intended operating leverage inherent in its software-based infrastructure model.
The reduction in SG&A as a percentage of revenue suggests that the company has moved past the most intensive phase of its partner onboarding cycle. This shift implies that future revenue gains may flow more directly to the bottom line, provided that production costs remain contained.
Based on historical income statement data, Pagaya's net income has exhibited extreme volatility, swinging from a $237.9 million loss in 2024Q4 to a $24.7 million profit in 2026Q1, largely driven by non-operating fair value adjustments on retained interests that complicate the assessment of core operational profitability.
The reliance on fair value accounting for retained assets introduces significant noise into the bottom line, making GAAP net income a potentially unreliable indicator of cash-generating capability. Analysts should focus on the consistency of fee-based revenue streams to gauge the true underlying health of the business.
While gross margins have stabilized around 40-44%, as evidenced by recent filings, the company remains highly vulnerable to ABS market spreads, which may force a compression of take rates if institutional appetite for credit risk wanes or if competitive pressures from other fintech platforms intensify.
The reliance on third-party capital to fund loan originations creates a structural dependency that could lead to rapid margin contraction during liquidity shocks. Investors should remain cautious regarding the sustainability of these margins if the credit environment deteriorates and forces higher yield requirements from institutional buyers.
Quick answers to the most common questions about buying PGY stock.
For fiscal year 2025, Pagaya Technologies Ltd. (PGY) reported total revenue of $1.26B. This represents a 3390.1% increase compared to $36.1M in 2019.
Pagaya Technologies Ltd. (PGY) is profitable, generating $81.4M in net income for the fiscal year ending 2025 with a net profit margin of 6.5%.
Pagaya Technologies Ltd. (PGY) reported an operating income of $223.8M, resulting in an operating profit margin of 17.7%. This margin reflects the operational efficiency of the business before interest and taxes.
Pagaya Technologies Ltd. (PGY) generated $512.2M in gross profit for the year, representing a gross profit margin of 40.6%. This demonstrates the company's core pricing power and production efficiency.