PGY

Track your investments for FREE with Simply Wall St, the portfolio command center trusted by over 7 million individual investors worldwide. Pagaya Technologies stock has had a difficult five year run, with long term shareholders facing a large decline, yet current valuation checks still suggest the shares screen as cheap on several metrics. Over the past five years, Pagaya Technologies has declined about 82%, which means long term holders have absorbed a steep capital loss that colors how attractive any current valuation signal may look. The key upside driver now is whether Pagaya Technologies can translate its business model into more consistent cash generation. The main risk is that any ongoing execution issues or funding needs limit how much value shareholders can reasonably expect to recoup. The broader checks lean cheap, with Pagaya Technologies screening as undervalued on 5 of 6 valuation measures, giving it a high value score of 5. The issue now is whether that high value score is pointing to a genuine opportunity in Pagaya Technologies or simply reflecting the damage already done to long term returns. Find out why Pagaya Technologies' -32.4% return over the last year is lagging behind its peers. The P/E ratio is a useful starting point for Pagaya Technologies because it is now producing earnings that give you a clearer anchor for the share price. Pagaya Technologies currently trades on a P/E of 13.9x. This sits well below the Software industry average of 31.4x and also below a peer group average of 38.9x. In addition, the modelled fair P/E for Pagaya Technologies, which blends its growth profile, margins, size and risk, is 43.8x. That is a large gap to where the stock is currently priced. Such a wide spread between the present P/E and both the industry norms and the fair ratio indicates the market is applying a heavy discount to Pagaya Technologies despite its positive earnings base. On the P/E multiple alone, Pagaya Technologies stock appears inexpensive compared with both its peers and the fair ratio implied by its fundamentals. See what the numbers say about this price — find out in our valuation breakdown. Simply Wall St Narratives for Pagaya Technologies sit on the Community page and pick up where this valuation puzzle leaves off by spelling out what growth, margin and earnings paths would need to hold for the stock to be worth materially more or less than today’s price. Each scenario links Pagaya Technologies' potential catalysts and risks to a specific fair value estimate so you can later compare which story aligns most closely with what actually happens. Community views on Pagaya Technologies are sharply split, with one side seeing a discounted AI infrastructure play and the other flagging valuation and structural risks. Bull case: 68% undervalued Read the full Bull Case to see why Pagaya Technologies could be undervalued Bear case: 71% overvalued Read the full Bear Case to see why Pagaya Technologies could be overvalued Do you think there's more to the story for Pagaya Technologies? Head over to our Community to see what others are saying! Pagaya Technologies screens as undervalued on market multiples, with a P/E that sits well below both sector and peer averages and a fair ratio that is materially higher than where the stock trades today. That discount only matters if Pagaya Technologies can keep turning its model into reliable earnings and cash generation instead of requiring repeated funding support. The key question for you is whether the current gap to peer valuations reflects an overly cautious market or a rational price for execution and credit cycle risks that remain front and centre in the bull versus bear debate. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include PGY. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Pagaya Technologies Ltd. PGY delivered a stronger-than-expected second quarter. Record network volume, revenues and GAAP net income, together with higher full-year guidance, raise the bar for the company’s 2026 performance.The key event-driven question is whether Pagaya can sustain the operating leverage behind the latest results while managing funding-cost and credit risks. Pagaya reported adjusted earnings of $1.07 per share in the second quarter, comfortably above the Zacks Consensus Estimate of 71 cents. GAAP net income attributable to Pagaya reached a record $45.3 million, up from $16.7 million a year earlier.The beat was not isolated. PGY topped earnings expectations in each of the trailing four quarters, with an average positive surprise of 43.5%. Image Source: Zacks Investment Research Total revenue and other income reached a record $387 million, up 18.6% year over year, and exceeded the Zacks Consensus Estimate of $358.2 million. The company also reported record adjusted EBITDA of $124 million, up 43% year over year.Network volume reached a record $3.54 billion, increasing 33.5% year over year. Growth was driven by the auto vertical while Pagaya maintained its focus on prudent underwriting. Revenue from fees less production costs, or FRLPC, reached a record $146.9 million, up 16.4% year over year.The figures show that Pagaya is scaling across its lending network, with auto providing a major source of incremental volume while personal loans and point-of-sale financing remain part of the broader product strategy. The company’s investor presentation also highlighted 33% year-over-year total network-volume growth and 140% auto network-volume growth in the second quarter.Supported by robust performance and strength in fundamentals, the company’s shares have gained 3.3% year to date, outperforming the industry’s 9.4% decline. Image Source: Zacks Investment Research Pagaya raised a record $3.7 billion of ABS funding across six transactions in the second quarter and added 11 investors. The final three transactions were upsized, and the company also added an Auto Forward Flow agreement. The funding activity points to continued demand for assets across the platform.A broader funding base can support network-volume growth by giving Pagaya more flexibility across ABS, forward-flow and revolving structures. The company has also been expanding the number of institutional funding partners and diversifying funding channels. That matters because the ability to fund growing network volume is a key part of converting partner and product expansion into revenue.PGY’s 40% of funding comes through non-prefunded ABS products, alongside forward-flow and revolving structures. Amongst PGY’s key peers, Affirm Holdings, Inc. AFRM uses technology, proprietary underwriting and third-party capital to support its pay-over-time platform, while Enova International, Inc. ENVA operates an online lending platform powered by analytics and machine learning. Both AFRM and ENVA provide context for technology-driven consumer finance. Management now expects full-year 2026 network volume of $12.5-$13.25 billion, compared with the previous $11.45-$13 billion range. Total revenue and other income is projected at $1.425-$1.525 billion, versus the prior $1.4-$1.575 billion outlook.The company also raised its full-year GAAP net income guidance to $155-$180 million from $110-$160 million and its adjusted EBITDA outlook to $460-$490 million from $420-$460 million. The higher targets reflect greater confidence in volume growth and operating leverage, but they also increase the importance of successful partner ramps and continued expense discipline.The near-term outlook reinforces that higher expectations are not limited to the second quarter. Management expects third-quarter network volume of $3.425-$3.625 billion, revenue and other income of $370-$390 million, adjusted EBITDA of $120-$130 million and GAAP net income of $42-$52 million.Supported by management’s higher guidance for key metrics, the Zacks Consensus Estimate for the company’s 2026 and 2027 earnings increased by 15.2% and 11%, respectively over the past 30 days. Image Source: Zacks Investment Research PGY currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.Its Zacks Style Scores are a Value Score of B, Growth Score of A, Momentum Score of B and VGM Score of A. The Growth Score supports the company’s improving earnings profile, while the Value and Momentum Scores provide additional context for the stock’s setup.The Zacks Style Scores are designed to complement the Zacks Rank by evaluating value, growth and momentum characteristics. The Style Score Education material notes that the individual scores measure different investment styles, while the VGM Score combines the weighted average of the three styles. For PGY, those signals support the stronger earnings setup, but they do not remove the execution risks associated with funding costs, credit performance and FRLPC pressure.The key event-driven takeaway is therefore mixed but constructive. The second-quarter beat and higher guidance provide stronger evidence that Pagaya’s growth and operating-leverage strategy is working. Sustaining that trajectory will depend on continued network-volume expansion, funding availability and disciplined execution as the company moves toward its higher 2026 targets. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Pagaya Technologies Ltd. (PGY) : Free Stock Analysis Report Enova International, Inc. (ENVA) : Free Stock Analysis Report Affirm Holdings, Inc. (AFRM) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Pagaya Technologies Ltd. (PGY) appears an attractive pick given a noticeable improvement in the company's earnings outlook. The stock has been a strong performer lately, and the momentum might continue with analysts still raising their earnings estimates for the company. The upward trend in estimate revisions for this company reflects growing optimism of analysts on its earnings prospects, which should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. Our stock rating tool -- the Zacks Rank -- is principally built on this insight. The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Strong Buy) to a Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record of outperformance, with Zacks #1 Ranked stocks generating an average annual return of +25% since 2008. Consensus earnings estimates for the next quarter and full year have moved considerably higher for Pagaya Technologies Ltd., as there has been strong agreement among the covering analysts in raising estimates. The chart below shows the evolution of forward 12-month Zacks Consensus EPS estimate: The company is expected to earn $0.97 per share for the current quarter, which represents a year-over-year change of -4.9%. The Zacks Consensus Estimate for Pagaya Technologies Ltd. has increased 11.25% over the last 30 days, as one estimate has gone higher compared to no negative revisions. For the full year, the earnings estimate of $3.72 per share represents a change of +12.4% from the year-ago number. In terms of estimate revisions, the trend for the current year also appears quite encouraging for Pagaya Technologies Ltd.. Over the past month, one estimate has moved higher compared to no negative revisions, helping the consensus estimate increase 16.44%. The promising estimate revisions have helped Pagaya Technologies Ltd. earn a Zacks Rank #1 (Strong Buy). The Zacks Rank is a tried-and-tested rating tool that helps investors effectively harness the power of earnings estimate revisions and make the right investment decision.You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Our research shows that stocks with Zacks Rank #1 (Strong Buy) and 2 (Buy) significantly outperform the S&P 500. Investors have been betting on Pagaya Technologies Ltd. because of its solid estimate revisions, as evident from the stock's 18.3% gain over the past four weeks. As its earnings growth prospects might push the stock higher, you may consider adding it to your portfolio right away. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Pagaya Technologies Ltd. (PGY) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Pagaya Technologies Ltd. PGY used its second-quarter 2026 earnings call to emphasize accelerating partner-led growth, especially in auto, while maintaining its underwriting posture. Management also raised its full-year GAAP net income guidance after record network volume and profitability. Non-GAAP earnings per share of $1.07 beat the Zacks Consensus Estimate of $0.71. Total revenues of $387 million surpassed the consensus estimate of $358.2 million. Pagaya Technologies Ltd. price-consensus-eps-surprise-chart | Pagaya Technologies Ltd. Quote CEO Gal Krubiner said that Pagaya’s growth reflected its partner-focused strategy, with network volume reaching a record $3.5 billion, up 33% year over year. Auto accounted for more than three-quarters of the year-over-year increase. President Sanjiv Das said that dynamic offer optimization allows partners to adjust loan amount, APR, down payment and term in real time, helping lenders make more competitive offers at the dealer desk. A Jefferies analyst asked why auto was accelerating. President Sanjiv Das cited product optimization, closer alignment with market terms and access to application flow that partners previously kept for themselves. Das said that Pagaya is onboarding about seven partners across personal loans, auto and point of sale, with regional banks gaining importance in the personal-loan pipeline. Das added that the Affiliate Optimizer product generated more than $1 billion in personal-loan network volume in the second quarter. Pagaya also expects additional personal-loan partners to join Experian Activate and several new partners to go live in the second half. Krubiner said that the embedded platform is designed to scale products across existing partners with limited incremental investment, allowing new product capabilities to be replicated throughout the network. CFO Jonathan Dobres said that Pagaya raised its full-year GAAP net income guidance by about 25% at the mid-point. The new guidance is $155-$180 million. For the third quarter, CFO Jonathan Dobres guided network volume of $3.43-$3.63 billion, total revenues and other income to $370-$390 million, adjusted EBITDA to $120-$130 million, and GAAP net income to $42-$52 million. For 2026, management expects network volume of $12.5-$13.25 billion, revenues of $1.43-$1.53 billion and adjusted EBITDA of $460-$490 million. A Stephens analyst asked whether faster growth reflected looser underwriting. CEO Krubiner said that the company’s underwriting posture has not changed and attributed growth primarily to new products and deeper partner integration. President Das said that more than 45% of application flow now comes from non-decline channels as Pagaya moves further up partners’ lending funnels. Das said that the average personal-loan borrower has about $120,000 of income, a 680 FICO score and a 28% debt-to-income ratio. CFO Jonathan Dobres added that 2025 and 2026 vintages are performing in line with underwriting expectations. Das said that Pagaya completed a record $3.7 billion in ABS funding across six transactions, while its last three securitizations were upsized amid investor demand. CFO Jonathan Dobres said that about 40% of flow now comes from non-prefunded ABS products. The funding mix includes forward flow, committed revolving structures and traditional prefunded ABS. A Canaccord Genuity analyst asked about forward-flow conditions. CFO Jonathan Dobres said that funding channels are more diversified and committed than before, with forward flow remaining one part of a broader funding strategy. Krubiner kept the strategic focus on extending more products across more partners while preserving operating leverage. Core operating expenses declined 6% year over year even as network volume expanded. Dobres informed that core operating expenses are already sized for significant growth. Management’s posture coming out of the second quarter centers on scaling the existing platform, maintaining credit discipline and broadening committed funding sources. PGY currently carries a Zacks Rank #3 (Hold), with Value and Growth Scores of A, a Momentum Score of D and a VGM Score of A. The profile combines strong value and growth characteristics with weaker momentum. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Under the Zacks framework, A and B Style Scores are more favorable, while the strongest combinations generally pair those grades with a Zacks Rank #1 or #2 (Buy). PGY’s Zacks Rank can change as earnings estimates are revised after the just-reported results. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Pagaya Technologies Ltd. (PGY) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Pagaya Technologies PGY delivered a strong first half of 2026, driven by record lending activity, robust revenue growth and expanding profitability. In the six months ended June 30, 2026, network volume surged 22% year over year to a record $6.2 billion, while total revenues jumped 14.4% to $705 million.In the second quarter alone, adjusted earnings per share came in at $1.07, rising 67.2% from the year-ago quarter. In the six months ended June 30, 2026, the company generated GAAP net income of $70 million and adjusted EBITDA of $217.7 million, reflecting improving operating leverage.PGY’s robust performance was primarily fueled by sustained growth across its AI-powered lending network. The company continued to deepen relationships with existing lending partners while onboarding new ones, resulting in higher loan originations across auto lending, point-of-sale (POS) financing and personal loans.Another key contributor has been the company’s diversified funding platform. Pagaya completed multiple oversubscribed asset-backed securities (ABS) transactions during the first half, including its first RPM resecuritization and first AAA-rated PAID resecuritization, while issuing more than $2 billion of ABS in the first quarter alone. The continued ability to access institutional capital at scale enabled the company to fund record loan volumes while demonstrating investor confidence in the quality of its underlying assets.Management’s confidence in the business outlook was reflected in its raised full-year guidance following the first quarter and continued optimism after the second quarter. Following its impressive second-quarter results, management expects full-year GAAP net income of $155-180 million and adjusted EBITDA of $460-$490 million. With a growing pipeline of lending partners, increasing network adoption, disciplined underwriting and a highly scalable operating model, Pagaya expects to maintain profitable growth through the remainder of 2026. Let us see how PGY’s two key peers, LendingTree TREE and Upstart Holdings, Inc. UPST, performed this year.LendingTree’s first-half 2026 net income per share of $1.90 compared favorably with a loss of 26 cents in the prior-year period. The company reported total revenues of $640.7 million in the first six months of this year, up 30.8% year over year, driven by continued solid performance of the Insurance segment. Total costs increased 23.5% year over year to $587.8 million.Now, LendingTree expects 2026 revenues of $1.30-$1.32 billion and variable marketing margin of $364-$374 million. TREE expects adjusted EBITDA of $145-$152 million in 2026.Upstart is scheduled to report second-quarter 2026 results on Aug. 4. In the first quarter of this year, UPST reported revenues of $308 million, up 44% year over year. Revenues from fees were $277 million, up 49% year over year, with platform/referral fees of $224.6 million and servicing/other fees of $52.4 million.In the first quarter, core personal loans held up against typical seasonality, while secured products scaled rapidly. Auto originations rose more than 300% year over year and grew sequentially on dealer network expansion and product improvements. However, Upstart’s GAAP net loss widened to $6.6 million from a net loss of $2.4 million in the year-ago period. Pagaya’s shares have gained 4% in the past six months compared with the industry’s 6% decline. Image Source: Zacks Investment Research The PGY stock is currently trading at a 12-month forward price-to-sales (P/S) of 1.01X, which is below the industry average of 2.78X. Image Source: Zacks Investment Research Over the past 30 days, the Zacks Consensus Estimate for PGY’s 2026 and 2027 earnings has been unchanged at $3.23 and $3.72, respectively. The consensus estimate indicates a 2.4% decline for 2026 and 15.2% growth for 2027. Image Source: Zacks Investment Research Currently, Pagaya carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Pagaya Technologies Ltd. (PGY) : Free Stock Analysis Report LendingTree, Inc. (TREE) : Free Stock Analysis Report Upstart Holdings, Inc. (UPST) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Track your investments for FREE with Simply Wall St, the portfolio command center trusted by over 7 million individual investors worldwide. Pagaya Technologies stock is coming off a long period of weak returns, with the share price down 83.4% over the past 5 years. However, the latest valuation checks suggest the market may now be pricing it too low relative to its fundamentals. Pagaya Technologies has declined 83.4% over 5 years, which means long term holders have seen significant value erode and may now be focused on whether the current price better reflects the company’s fundamentals. The recent upsized US$900 million AAA rated personal loan ABS transaction can support confidence in Pagaya Technologies’ funding access. The business still faces the risk that any shift in investor demand for its loan structures could weigh on how the market values its earnings stream. On Simply Wall St’s broader checks, Pagaya Technologies screens as undervalued in 5 of 6 areas, which points to the stock looking cheap on several common valuation measures rather than expensive. The issue now is whether that apparent undervaluation offers enough compensation for the company’s track record of weak long term returns. Find out why Pagaya Technologies' -33.8% return over the last year is lagging behind its peers. The P/E ratio is a useful check for Pagaya Technologies because it ties the current share price directly to the earnings the business is already generating. Pagaya Technologies currently trades on a P/E of about 13.0x, which is less than half the wider software industry average of 29.0x and also sits below the peer group average of about 30.0x. On Simply Wall St’s fair multiple framework, which looks at factors such as growth, margins, size and risk, Pagaya Technologies screens on a fair P/E of about 44.6x. That is much higher than the present 13.0x, so the shares appear to trade on a material discount to what this model suggests might be warranted. Despite the recent US$900 million AAA rated personal loan ABS deal signalling strong funding access, the earnings multiple still prices Pagaya Technologies below both its sector and this tailored fair value marker. Overall, Pagaya Technologies stock appears undervalued on the current P/E multiple compared with both industry norms and the modelled fair ratio. See what the numbers say about this price — find out in our valuation breakdown. Simply Wall St Narratives pick up where this Pagaya Technologies valuation puzzle leaves off and spell out what kind of future growth, margins and earnings would need to occur for the stock to be worth materially more or less than today’s price. Rather than relying on a single multiple or model output, each Narrative lays out the assumptions behind its view of fair value so you can compare those expectations with Pagaya Technologies' actual results over time. Pagaya Technologies attracts sharply different views, with some investors focusing on operating leverage while others worry about how the model holds up through a tougher credit cycle. Bull case: 70% undervalued Read the full Bull Case to see why Pagaya Technologies could be undervalued Bear case: 61% overvalued Read the full Bear Case to see why Pagaya Technologies could be overvalued Do you think there's more to the story for Pagaya Technologies? Head over to our Community to see what others are saying! Pagaya Technologies currently screens as undervalued on common market multiples, with its P/E well below both peer and modelled fair value levels. That discount reflects investor concern about the company’s weaker long term return record and the durability of its funding and credit performance. For you as a shareholder or potential investor, the key question is whether Pagaya Technologies can maintain earnings quality and credit outcomes well enough for the market to re-rate the stock, or whether the current discount is an accurate reflection of ongoing risk. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include PGY. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Shares of Pagaya Technologies PGY have gained almost 19% since the release of its second-quarter 2026 results on July 30. Quarterly adjusted earnings per share of $1.07 comfortably surpassed the Zacks Consensus Estimate of 71 cents. The bottom line improved 67.2% from the prior-year quarter.Results were aided by record performance across key metrics. The company recorded an improvement in total revenues, which, along with growth in network volumes, primarily supported the results. An increase in expenses hurt the results to some extent.Net income attributable to Pagaya (GAAP basis) was a record $45.3 million, up significantly from $16.7 million in the prior-year quarter. Total revenues and other income were a record $387 million, up 18.6% year over year. The increase was driven by a rise in interest income and revenues from fees. A decline in net investment loss also supported the rise. The top line surpassed the Zacks Consensus Estimate of $358.2 million.Total costs and operating expenses increased 4.2% year over year to $281.2 million. The rise was due to higher production costs.In the second quarter, network volume was a record $3.54 billion, which grew 33.5% year over year, driven by growth in the company’s auto vertical, while maintaining focus on prudent underwriting.Revenue from fees less production costs (FRLPC) was a record $146.9 million, which increased 16.4% year over year.FRLPC as a percentage of network volume contracted by 60 basis points (bps) year over year to 4.2%, driven by asset class mix, new partner and product contributions, and tighter pricing on the asset-backed securities (ABS) transactions reflecting higher cost of capital in light of market conditions. As of June 30, 2026, total assets were $1.69 billion, up 9.5% from Dec. 31, 2025.Long-term debt was $471.9 million and shareholders’ equity was $594.2 million.In the second quarter, the company raised a record $3.7 billion in ABS funding across six transactions. Management expects network volume of $3.425-$3.625 billion.Total revenues are expected between $370 million and $390 million.The adjusted EBITDA is expected to be $120-$130 million and GAAP net income is anticipated to be $42-$52 million. The company raised its 2026 outlook.Network volume of $12.5-$13.25 billion is expected, changed from the previously mentioned $11.45-$13 billion.Total revenues are projected to be $1.425-$1.525 billion, changed from the previous $1.4-$1.575 billion.Management raised its full-year net income guidance as well. It expects GAAP net income of $155-180 million, up from the previously mentioned $110-$160 million. Similarly, adjusted EBITDA is expected to be $460-$490 million, up from the previously stated $420-$460 million. Secular growth in embedded credit, rising efficiency, diversified funding sources and broader multi-product adoption will likely continue to drive Pagaya’s scalable and profitable expansion in the near term. However, uncertainty around the single-family rental strategy might limit the company’s near-term volumes. Pagaya Technologies Ltd. price-consensus-eps-surprise-chart | Pagaya Technologies Ltd. Quote Currently, PGY carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. LendingTree, Inc. TREE reported second-quarter 2026 adjusted net income per share of $1.27, which missed the Zacks Consensus Estimate of $1.46. The figure compares favorably with $1.13 in the prior-year quarter.TREE’s results were affected by a decline in Consumer segment revenues and higher total costs. However, growth in revenues and adjusted EBITDA, along with strong Insurance segment performance, supported the results to some extent.Upstart Holdings, Inc. UPST is scheduled to report quarterly results on Aug. 4.The Zacks Consensus Estimate for UPST’s quarterly earnings has been unchanged at 58 cents over the past week. The figure indicates 61.1% growth from the prior-year quarter’s actual. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Pagaya Technologies Ltd. (PGY) : Free Stock Analysis Report LendingTree, Inc. (TREE) : Free Stock Analysis Report Upstart Holdings, Inc. (UPST) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Pagaya Technologies Ltd. (PGY) came out with quarterly earnings of $1.07 per share, beating the Zacks Consensus Estimate of $0.71 per share. This compares to earnings of $0.64 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +50.70%. A quarter ago, it was expected that this company would post earnings of $0.48 per share when it actually produced earnings of $0.73, delivering a surprise of +52.08%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Pagaya Technologies Ltd., which belongs to the Zacks Financial - Miscellaneous Services industry, posted revenues of $387.04 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 8.07%. This compares to year-ago revenues of $326.4 million. The company has topped consensus revenue estimates two times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Pagaya Technologies Ltd. shares have lost about 22.5% since the beginning of the year versus the S&P 500's gain of 6.9%. While Pagaya Technologies Ltd. has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Pagaya Technologies Ltd. was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.88 on $397.85 million in revenues for the coming quarter and $3.23 on $1.48 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Financial - Miscellaneous Services is currently in the bottom 28% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, Riot Platforms, Inc. (RIOT), is yet to report results for the quarter ended June 2026. The results are expected to be released on August 5. This company is expected to post quarterly loss of $0.39 per share in its upcoming report, which represents a year-over-year change of -168.4%. The consensus EPS estimate for the quarter has been revised 13.7% lower over the last 30 days to the current level. Riot Platforms, Inc.'s revenues are expected to be $150.47 million, down 1.7% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Pagaya Technologies Ltd. (PGY) : Free Stock Analysis Report Riot Platforms, Inc. (RIOT) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Interested in Pagaya Technologies Ltd.? Here are five stocks we like better. Pagaya posted record second-quarter results: Network volume rose 33% year over year to $3.5 billion, while revenue increased 19% to $387 million and GAAP net income nearly tripled to $45 million. Adjusted EBITDA climbed 43% to $124 million, with a 32% margin. Auto lending was the primary growth driver, contributing more than three-quarters of year-over-year network-volume growth. The company also expanded its dynamically optimized dealership offers and continued growing personal-loan partnerships. Management raised its 2026 GAAP net income outlook to $155 million–$180 million and expects full-year network volume of $12.5 billion–$13.25 billion. Pagaya also raised $3.7 billion during the quarter and completed six securitizations, strengthening its funding capacity. This AI Lender Has Big Upside Potential—And Big Risks Pagaya Technologies (NASDAQ:PGY) reported record second-quarter results, with growth in auto lending and personal loans helping drive higher network volume, revenue, profitability and earnings per share. Management raised its full-year GAAP net income outlook by about 25% at the midpoint, citing visibility into the remainder of 2026 and continued operating leverage. Chief Executive Officer Gal Krubiner said every major component of the company’s business model reached a record during the quarter, including network volume, fee revenue less production costs, adjusted EBITDA and earnings per share. He said Pagaya’s costs remained largely flat as volume grew, contributing to bottom-line gains. → Why SK hynix Could Be the Best AI Chip Stock to Buy Now The Next Market Leaders? 5 Growth Stocks to Watch in 2026 Network volume increased 33% year over year to a record $3.5 billion, according to Chief Financial Officer Jon Dobres. Total revenue rose 19% to $387 million, while fee revenue less production costs, or FRLPC, increased 16% to $147 million. Pagaya reported GAAP operating income of $106 million, up 87% from a year earlier. Adjusted EBITDA rose 43% to $124 million, producing a 32% margin, up five percentage points year over year. GAAP net income was $45 million, compared with $16 million a year earlier, and quarterly GAAP earnings per share reached a record $0.49. → 3 Value ETFs to Consider as Growth Stocks Lag Behind 5 Small-Cap Stocks With Impressive Growth and Upside Potential Dobres said core operating expenses declined 6% year over year and were lower sequentially, despite the increase in volume. Core operating expenses represented 31% of FRLPC, an eight-point improvement from the prior year. FRLPC as a percentage of network volume declined about 60 basis points sequentially to 4.2%. Dobres attributed the change to product and partner mix, as newer products and partners enter at lower initial margins, as well as elevated benchmark rates that pressure funding-related margins. Management expects FRLPC as a percentage of volume to be between 4% and 5% for the rest of 2026. → 5 AI Stocks Are Pulling Back—Which Growth Catalysts Still Look Strongest? President Sanjiv Das said auto lending accounted for more than three-quarters of Pagaya’s year-over-year network-volume growth. Application volume increased 29% from a year earlier, while application-to-volume conversion remained at roughly 1%. Das said the company’s auto product has been expanded to provide dynamically optimized offers at the dealership. Rather than offering a single loan structure, Pagaya can adjust variables such as down payment, annual percentage rate, loan-to-value ratio and loan term to offer borrowers multiple potential structures. Management said the approach is intended to help lending partners remain competitive at dealerships, where Das said approximately 83% of auto loans close. Pagaya said it is connected to more than 40% of the U.S. auto market. Krubiner said growth also resulted from access to additional loan flow from partners, including applications that may previously have remained with lenders. He described the strategy as product-led growth, in which a product developed for one partner can be deployed more broadly across the network. Personal loans also remained a major business line. Das said Pagaya’s Affiliate Optimizer Engine contributed more than $1 billion in network volume during the quarter. The company expects to add more personal-loan partners to Experian Activate this year and said it expects several new partners, including regional banks, to go live in the second half. Management said point-of-sale volume is expected to decline later in the year because one POS partner is rolling off. Dobres said that partner had little effect on FRLPC margins, and the company expects volume to ramp again as it scales newer POS relationships. Das cited existing relationships with Sezzle, Flex Pay and Upgrade, along with discussions around areas such as home-improvement loans and purchase financing. On the funding side, Pagaya raised $3.7 billion during the quarter and completed six asset-backed securitization transactions, including its largest auto securitization, totaling $600 million. The company added 11 investors, bringing its investor network to 174, and said its last three securitizations were upsized. Dobres said approximately 40% of current flow comes from funding channels other than pre-funded ABS transactions. The company continues to use forward-flow arrangements, longer-term revolving structures and other committed capital sources to diversify its funding. As of June 30, Pagaya held $249 million in unrestricted cash and cash equivalents and $1.04 billion in investments in loans and securities. About 50% of its investments were in bond tranches, compared with less than 30% in 2025, according to Dobres. The investment portfolio was adjusted downward by $42 million during the quarter, while the company added $118 million of new investments net of prior-deal paydowns. For the third quarter, Pagaya expects network volume of $3.425 billion to $3.625 billion, total revenue and other income of $370 million to $390 million, adjusted EBITDA of $120 million to $130 million, and GAAP net income of $42 million to $52 million. For the full year, the company now expects: Network volume of $12.5 billion to $13.25 billion; Total revenue of $1.425 billion to $1.525 billion; Adjusted EBITDA of $460 million to $490 million; and GAAP net income of $155 million to $180 million. Management said underwriting standards have not changed. Krubiner said Pagaya continues to monitor credit conditions and adjust pricing and risk selection as needed. Das said the company had previously reduced exposure to its highest-risk tiers and characterized the current borrower profile in personal loans as having average income of about $120,000, an average FICO score of roughly 680, 37% homeownership and an average debt-to-income ratio of approximately 28%. Dobres said Pagaya does not anticipate significant acquisitions in its near-term outlook, though the company continues to assess opportunities and views bond purchases as an attractive use of capital. Pagaya Technologies is a financial technology company that applies artificial intelligence and machine learning to the credit and asset management industries. Through its proprietary data-driven platform, Pagaya analyzes vast datasets from consumer credit portfolios to build predictive risk models, enabling institutional investors to gain access to alternative credit products. The company’s solutions streamline underwriting, optimize portfolio construction and facilitate the efficient securitization of consumer loans, credit card receivables and other asset classes. Founded in 2016 and headquartered in New York, Pagaya has expanded its operations to serve financial institutions and asset managers primarily in the United States. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Pagaya Technologies Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

This article first appeared on GuruFocus. Network Volume: Record $3.5 billion, a 33% increase year-over-year. Total Revenue: Record $387 million, up 19% year-over-year. Fee Revenue Less Production Costs (FRLPC): Record $147 million, up 16% year-over-year. FRLPC as a Percentage of Network Volume: 4.2%, contracting about 60 basis points sequentially. GAAP Operating Income: $106 million, up 87% year-over-year. Adjusted EBITDA: $124 million, up 43% year-over-year, with a margin of 32%. GAAP Net Income: $45 million, up $29 million year-over-year. GAAP Earnings Per Share (EPS): Record $0.49. Net Income Margin: 12%, compared to 5% last year. Core Operating Expenses: Decreased 6% year-over-year and were lower sequentially. Core Operating Expenses as a Percentage of FRLPC: Record low of 31%, an 8-point improvement versus last year. Unrestricted Cash and Cash Equivalents: $249 million as of June 30. Investments in Loans and Securities: $1.04 billion as of June 30. Funding Volume: Largest funding quarter ever at $3.7 billion. Investor Network: Grew by 11 to a total of 174 investors. Warning! GuruFocus has detected 6 Warning Signs with PGY. Is PGY fairly valued? Test your thesis with our free DCF calculator. Release Date: July 30, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Record network volume of $3.5 billion, up 33% year-over-year, driven by strong growth in auto and personal loans. Record GAAP EPS of $0.49 and GAAP net income of $45 million, up significantly from $29 million in the prior year. Core operating expenses remained flat year-over-year despite 33% volume growth, demonstrating strong operating leverage. Auto segment achieved record volume due to dynamic offer optimization and expanded partner flow, with significant growth potential remaining. Funding diversification strengthened with $3.7 billion raised in Q2, 174 investors, and upsized securitizations, including a record $600 million auto ABS. FRLPC as a percentage of network volume contracted 60 basis points sequentially to 4.2% due to product mix and elevated benchmark rates. Point-of-sale volume expected to decrease in late Q3 and Q4 due to the roll-off of a partner, though with minimal FRLPC impact. Elevated benchmark rates continue to compress margins from the funding side of the network. Investment portfolio fair value adjusted downward by $42 million in the quarter, reflecting ongoing market conditions. Conversion rate remained steady at roughly 1%, indicating that despite higher application volume, the rate of turning applications into loans did not improve. Here are the key highlights from Pagaya Technologies Ltd (NASDAQ:PGY)'s Q2 2026 earnings call, focusing on the most significant Q&A exchanges. Q: What drove the significant acceleration in auto loan volume this quarter? A: **Sanjiv Das, President**, explained that the growth was driven by a "dynamic offer optimization" product. This allows Pagaya to present multiple, win-worthy offers at the dealer desk by adjusting loan amount, rate, and terms in real-time. A key driver was gaining access to "counter flow"applications where a partner lender would have offered a reduced amount, which Pagaya can now fulfill with a better offer, unlocking new volume from existing partners. Q: How should we think about the product mix for 2027 given the strong momentum in auto? A: **Sanjiv Das, President**, stated that the mix is expected to remain roughly similar, with Personal Loans as the flagship, Auto showing significant growth, and POS continuing to diversify. He noted a shift in the pipeline, with increasing traction from regional banks for personal loans and growing interest from OEMs and enterprise-grade dealers in the auto space. Q: Is the negative $23 million impact from the capital markets line item a new run rate, and are you seeing changes in demand from asset managers? A: **Jonathan Dobres, Chief Strategy Officer**, clarified that this is not a run rate, but pressure from elevated benchmark rates will persist. He guided that the FRLPC margin will remain in the 4% to 5% range for the remainder of the year, reflecting the self-funded business model. Demand from asset managers remains strong, with the company upsizing its last three securitizations. Q: Has your underwriting posture changed given the re-acceleration in growth? A: **Gal Krubiner, CEO**, confirmed that the underwriting posture has not changed. The growth is driven by deploying new products to existing partners, not by loosening credit. **Sanjiv Das, President**, added that a major misconception is that Pagaya is a "decline-only" lender. He noted that over 45% of their flow now comes from non-decline sources like pre-screens and counters, and the average borrower profile has shifted to a healthier "Middle America" with an average income of $120,000 and a FICO of 680. Q: With core OpEx flat for 18 months, should we expect this to continue, or is there another step function in investment spending ahead? A: **Jonathan Dobres, Chief Strategy Officer**, stated that core OpEx is "rightsized today for significant growth" in the three major asset classes, so investors should not model much growth there. **Gal Krubiner, CEO**, added that the platform is repeatable and scalable, requiring minimal investment to handle double or triple the current volume and partner count. Q: Can you provide an update on the forward flow market and your overall funding strategy? A: **Jonathan Dobres, Chief Strategy Officer**, explained that funding channels are more diversified than ever, with about 40% of flow coming from non-prefunded ABS products. While forward flow remains an important tool, the company is also executing longer-term, one-to-two-year committed revolving structures with large asset managers and banks, creating a more stable and committed funding suite. Q: With all the operating leverage emerging, are there areas of marketing spend that could have attractive ROIs to put capital back to work? A: **Gal Krubiner, CEO**, stated that the platform does not require additional marketing investment to drive growth. He highlighted that the company is leveraging the "agentic revolution" to increase productivity, allowing them to do more with the same headcount rather than increasing spending. Q: How are you able to make more competitive offers at the dealer desk by understanding what other lenders are offering? A: **Sanjiv Das, President**, explained that through their lender partners, Pagaya now has access to the interaction between the dealer and the consumer. Instead of a static, one-dimensional offer, they can now provide multiple choices (e.g., different down payments, APRs) by leveraging that dealer feedback as an input into their underwriting decisioning process. Q: What are your current capital allocation priorities and thoughts on M&A? A: **Jonathan Dobres, Chief Strategy Officer**, stated that they are always calculating the best use of the net incremental dollar, noting that bond purchases for the balance sheet are an attractive use of capital. On M&A, he said there is nothing significant planned right now, and no M&A is anticipated in the near term. For the complete transcript of the earnings call, please refer to the full earnings call transcript.