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Jun 30, 2024
Pagaya Q2 2024 Earnings Report
Pagaya achieved record total revenue, FRLPC, and adjusted EBITDA, leading to an increased full-year outlook.
Key Takeaways
Pagaya reported record financial results for Q2 2024, driven by a 28% year-over-year increase in total revenue and other income to $250 million. The company expanded its network with top lenders, enhanced funding capacity, and achieved a record adjusted EBITDA of $50 million. GAAP operating income was $5 million, marking the fourth consecutive quarter of positive GAAP operating income.
Network volume grew by 19% year-over-year to $2.3 billion.
Total revenue and other income increased by 28% year-over-year to $250 million.
Revenue from fees less production costs (FRLPC) increased by 49% year-over-year to $97 million.
Adjusted EBITDA reached a record $50 million, compared to $17 million in the second quarter of 2023.
Forward Guidance
For the third quarter of 2024, Pagaya expects network volume between $2.3 billion and $2.5 billion, total revenue and other income between $250 million and $260 million, and adjusted EBITDA between $50 million and $60 million.
Positive Outlook
- Network Volume Expected to be between $2.3 billion and $2.5 billion
- Total Revenue and Other Income Expected to be between $250 million and $260 million
- Adjusted EBITDA Expected to be between $50 million and $60 million
- Network Volume Expected to be between $9.25 billion and $10.25 billion
- Total Revenue and Other Income Expected to be between $975 million and $1,050 million
Challenges Ahead
- The Company cannot reconcile its expected Adjusted EBITDA to expected Net Loss Attributable to Pagaya under “Full-Year 2024 Financial Outlook” without unreasonable effort because certain items that impact net income (loss) and other reconciling items are out of the Company's control and/or cannot be reasonably predicted at this time, which unavailable information could have a significant impact on the Company’s U.S. GAAP financial results.
- Changes in the political, legal and regulatory framework for AI technology, machine learning, financial institutions and consumer protection
Historical Earnings Impact
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Avg. Return Before/After Earnings
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