Pagaya Technologies (PGY) Q2 2026 earnings summary

Executive summary

• Achieved record Q2 2026 performance with network volume up 33% year-over-year to $3.5–$3.54 billion, driven by Auto and personal loan growth, partner expansion, and operational leverage.

• Total revenue and other income rose 19% year-over-year to $387 million, with fee revenue up 15% to $366 million and interest income more than doubling to $22.2 million.

• GAAP net income reached a record $45.3 million, up $29 million or 172% year-over-year; EPS was $0.49 diluted.

• Adjusted EBITDA increased 43% to $124 million, with margin expanding to 32% from 26% in the prior year.

• Operating income rose 87% to $106 million, reflecting network volume growth and stable expenses.

Financial highlights

• Fee revenue less production costs (FRLPC) grew 16% year-over-year to $147 million, with FRLPC as a percent of network volume at 4.2%.

• Core operating expenses declined 6% year-over-year to $46 million, representing 31% of FRLPC, down from 39% a year ago.

• Adjusted net income for Q2 2026 was $101 million, nearly doubling year-over-year.

• Record ABS funding of $3.7 billion across 6 transactions, with upsized deals and new Auto Forward Flow agreement.

• Diluted shares outstanding for the quarter were 97 million.

Outlook and guidance

• Full-year 2026 guidance raised: network volume $12.5–$13.25 billion, revenue $1.425–$1.525 billion, adjusted EBITDA $460–$490 million, GAAP net income $155–$180 million.

• Q3 2026: network volume expected $3.425–$3.625 billion, revenue $370–$390 million, adjusted EBITDA $120–$130 million, GAAP net income $42–$52 million.

• Management expects continued growth in network volume and fee revenue, supported by partner expansion and technology improvements.

• FRLPC margin expected to remain in the 4%–5% range for the rest of the year.

• Sensitivity analysis projects potential credit-related impairments of $100–$150 million in a moderate stress scenario.