Pagaya Technologies Ltd. Reports Strong Q4 2025 Results, Shares Fall 19.6 % on Market Reaction
Pagaya Technologies Ltd. (NASDAQ: PGY) announced its fourth‑quarter and full‑year 2025 financial results on February 9, 2026. The company reported a substantial turnaround in profitability and revenue growth, yet its shares declined by 19.66 % to $14.98, reflecting investor caution despite the positive earnings.
Key Financial Highlights
| Metric | Q4 2025 | YoY Change | 2025 Full‑Year | YoY Change |
|---|---|---|---|---|
| Revenue | $335 million | +20 % | $1.30 billion | +26 % |
| GAAP Net Income | $34 million | +$272 million | $81.4 million | +$280 million |
| Adjusted EBITDA | $98 million | +53 % | – | – |
| Net Income per Share | $0.41 | – | $0.99 | – |
| Loss per Share (2024) | – | – | –$3.20 | – |
| Total Network Volume | $2.7 billion | +3 % | – | – |
The company’s net income swung from a loss of $237.9 million in Q4 2024 to a profit of $34.3 million in Q4 2025. Full‑year net income improved from a loss of $401.4 million in 2024 to a profit of $81.4 million in 2025. Revenue increased by 26 % year over year to $1.30 billion.
Market Reaction
- The stock closed at $14.98, down $3.66 from the previous close of $18.64.
- Shares opened at $13.65 and traded between $13.50 and $15.25 during the session.
- Trading volume surged to approximately 15.61 million shares, well above the average volume of 3.47 million.
- The bid was $10.75 for 200 shares, while the ask stood at $17.48 for 200 shares.
Analysts note that the 19.6 % decline reflects concerns about the company’s valuation relative to its earnings and the broader market environment. Despite the return to profitability, investors may be weighing the company’s negative price‑earnings ratio of –7.25 and its 52‑week range of $8.50 to $44.99.
Company Commentary
CEO and co‑founder Gal Krubiner emphasized that the results demonstrate the benefits of the company’s long‑term strategy to increase profitability while leveraging its artificial‑intelligence platform. He stated that Pagaya will continue to use its disciplined risk framework to bridge the gap between “Main Street and Wall Street,” a focus that underpins the company’s growth narrative.
Outlook
Pagaya’s 2025 full‑year revenue forecast remains above the $1.0 billion mark, and the company expects to maintain its disciplined risk approach. Investors will likely monitor subsequent quarterly guidance and any updates on the company’s technology roadmap for further insight into its growth trajectory.
