Pagaya Technologies (PGY) investor relations material

Business model and growth strategy

• Operates a technology platform connecting 35 lending partners with institutional capital, using an AI-driven decision engine to fund consumer loans off balance sheet.

• Achieved $14 billion run rate in consumer loans across personal, auto, and point-of-sale categories, with net income scaling for six consecutive quarters.

• Expects to exit the year with a $200 million GAAP net income run rate, aiming to double the number of lending partners over time.

• Product-led growth strategy enables selective loan origination, focusing on higher-quality borrowers and improved partner economics.

• Added five new partners this year, with three more expected, including regional banks, providing a strong runway for future growth.

Credit and application funnel management

• Proactively tightened credit criteria by eliminating origination in the riskiest two credit tiers, focusing on higher-quality borrowers.

• Growth driven by moving up the application funnel, accessing more and better-quality applications from existing partners.

• Average personal loan borrower now has $120,000 income and a 670-680 FICO score, with improved auto loan collateral quality.

• Application volume exceeded $300 billion in Q2, with auto loan applications growing 140% year-over-year.

• Product innovations like Affiliate Optimizer and direct marketing pre-qualification are expanding reach within partner ecosystems.

Funding and capital structure

• Maintains a diversified funding mix: 60% pre-funded securitizations, forward flow agreements, and 12-24 month committed revolving structures.

• Over 175 institutional investors participate in funding, with recent $2 billion in oversubscribed securitizations.

• Higher asset quality enables more favorable pricing and strengthens securitization quality.

• Balance sheet includes $1 billion in investments, split between equity and high-yield bond tranches, with no missed payments or impairments.

• Net investment as a percentage of volume is about 2.4% over the last 12 months, supporting prudent capital use.