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Sep 30, 2024
Pagaya Q3 2024 Earnings Report
Pagaya demonstrated strong financial performance with increased revenue and operating income.
Key Takeaways
Pagaya Technologies Ltd. reported strong Q3 2024 results, achieving record total revenue of $257 million, a GAAP operating income of $22 million, and an adjusted EBITDA of $56 million. The company focused on profitable, sustainable growth and is progressing towards GAAP profitability and cash flow generation in 2025.
Network volume grew by 11% year-over-year, reaching $2.4 billion.
Total revenue increased by 21% year-over-year to $257 million, driven by a 24% increase in revenue from fees.
GAAP operating income grew by $22 million year-over-year.
Adjusted EBITDA grew $28 million year-over-year, reaching $56 million with a margin of 21.8%.
Forward Guidance
Pagaya provided full year 2024 outlook, expecting network volume between $9.5 billion and $9.7 billion, total revenue and other income between $1,010 million and $1,025 million, and adjusted EBITDA between $195 million and $205 million.
Positive Outlook
- Network Volume Expected to be between $9.5 billion and $9.7 billion
- Total Revenue and Other Income Expected to be between $1,010 million and $1,025 million
- Adjusted EBITDA Expected to be between $195 million and $205 million
- The company is well on the way to reaching GAAP profitability and cash flow generation during 2025
- Growth of existing partners led to personal loan network volume growth of 15% and point-of-sale (“POSˮ) network volume growth of 67% year-over-year.
Challenges Ahead
- The Company cannot reconcile its expected Adjusted EBITDA to expected Net Loss Attributable to Pagaya under “Full-Year 2024 Financial Outlookˮ 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
- Net loss attributable to Pagaya shareholders of $67 million was impacted by non-cash items such as fair value adjustments and share-based compensation expense.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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