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Sep 30
Pagaya Q3 2025 Earnings Report
Pagaya posted record Q3 2025 results with strong profitability and raised full-year guidance.
Key Takeaways
Pagaya delivered a record quarter with strong growth in revenue, adjusted EBITDA, and net income. Strategic execution in Auto and Point-of-Sale verticals contributed significantly to performance, prompting a full-year guidance raise.
Generated $350,165,000 in total revenue and other income, a record high.
Reported GAAP net income of $22,545,000 versus a loss in the prior year quarter.
Achieved adjusted net income of $92,754,000 and adjusted EBITDA of $107,038,000.
Network volume reached a record $2.8 billion driven by Auto and POS growth.
Pagaya
Pagaya
Forward Guidance
Pagaya raised its full-year 2025 guidance across revenue, adjusted EBITDA, and GAAP net income, citing robust network growth and enhanced capital efficiency.
Positive Outlook
- Raised full-year guidance for revenue and profitability metrics.
- Expecting FY25 GAAP net income of $72–$82 million.
- Expecting FY25 adjusted EBITDA of $372–$382 million.
- Q4 network volume forecasted between $2.65B and $2.9B.
- Closed AAA-rated Auto ABS and secured forward flow with Castlelake, adding $500M in capacity.
Challenges Ahead
- Reported $24.9M in debt extinguishment losses during the quarter.
- Investment losses of $19.6M impacted pre-tax income.
- Increase in general and administrative costs to $36.9M.
- Adjusted EBITDA includes non-operating items such as fair value adjustments.
- Limited visibility into geographic revenue segmentation despite strong performance.