Pagaya Posts Record $50M Q3 Net Income, $3.6B Network Volume; Raises Full-Year Outlook
PGY has more than doubled off its 52-week low of $10.4.
Summary
Pagaya delivered record GAAP net income of $50 million for Q3 2026, at the top of its $42-52 million outlook and up $27 million year-over-year, with EPS of 52c. Network volume hit a record $3.6 billion, up 29% year-over-year, and total revenue and other income reached $390 million, up 12%. Operating income of $113 million rose 41% and adjusted EBITDA of $130 million grew 22%, both at the high end of guidance. The soft spot is FRLPC margin: fee revenue less production costs was $146 million, up only 5%, and FRLPC as a percentage of network volume contracted 91 basis points to 4.1% on higher benchmark rates. The company also onboarded Citizens Financial Group and First National Bank of Omaha and closed over $2 billion of longer-duration committed capital, extending the funding diversification streak that included the $700M Neuberger forward flow, the $460M revolving facility, the ATLAS VFN warehouse, and the $600M and $650M ABS deals over the past six weeks. Full-year 2026 guidance now calls for $12.725-13.025 billion of network volume, $1.45-1.5 billion of revenue, $465-485 million of adjusted EBITDA, and $162-182 million of GAAP net income, while fourth-quarter adjusted EBITDA is seen at $117M-$137M. The 8:30 a.m. ET call is the next checkpoint, with the margin compression the main question to press management on.
At the time of this announcement, PGY was trading at $20.99 on NASDAQ in the Finance sector, with a market capitalization of approximately $1.7B. The 52-week trading range was $10.40 to $29.75. This news item was assessed with positive market sentiment and an importance score of 8 out of 10. Source: BusinessWire.