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Pagaya Q1 2025 Earnings Report
Pagaya reported strong first quarter 2025 results, achieving GAAP profitability earlier than expected.
Key Takeaways
Pagaya Technologies Ltd. announced strong financial results for the first quarter of 2025, with record Adjusted EBITDA and total revenue. The company achieved GAAP profitability earlier than anticipated, driven by revenue growth and operational efficiencies.
Net income attributable to Pagaya shareholders reached $8 million, a significant increase of $29 million year-over-year.
Adjusted EBITDA hit a record $80 million, doubling from the prior year.
Total revenue and other income reached a record $290 million, an 18% increase year-over-year.
The company raised its full-year guidance for Total Revenue, GAAP Net Income, and Adjusted EBITDA.
Pagaya
Pagaya
Forward Guidance
Pagaya provided an optimistic outlook for the second quarter and full year 2025, raising its full-year guidance for Total Revenue, GAAP Net Income, and Adjusted EBITDA.
Positive Outlook
- Second quarter 2025 Network Volume expected to be between $2.3 billion and $2.5 billion.
- Second quarter 2025 Total Revenue and Other Income expected to be between $290 million and $310 million.
- Second quarter 2025 Adjusted EBITDA expected to be between $75 million and $90 million.
- Full year 2025 Total Revenue and Other Income expected to be between $1.175 billion and $1.3 billion.
- Full year 2025 Adjusted EBITDA expected to be between $290 million and $330 million.
Challenges Ahead
- Second quarter 2025 GAAP Net Income expected to be between breakeven and $10 million.
- Full year 2025 Network Volume expected to be between $9.5 billion and $11 billion.
- Full year 2025 GAAP Net Income expected to be between $10 million and $45 million.
- The company cannot reconcile expected Adjusted EBITDA to expected Net Loss Attributable to Pagaya under 'Full-Year 2025 Outlook' without unreasonable effort.
- Certain items impacting net income (loss) and other reconciling items are out of the Company's control and/or cannot be reasonably predicted.