Pagaya Technologies Ltd. Reports Strong 2025 Results but Shares Fall 20 %

Financial Highlights

  • Fourth‑quarter net income: $34.3 million, or $0.41 per share, versus a loss of $237.9 million ($3.20 per share) in Q4 2024.
  • Full‑year net income: $81.4 million, or $0.99 per share, compared with a loss of $401.4 million ($5.66 per share) in 2024.
  • Revenue: $1.30 billion for the year, up from $1.03 billion a year earlier.
  • Adjusted EBITDA: $98 million, an increase of 53 % year‑over‑year.
  • Network volume: $2.7 billion, up 3 % year‑over‑year (34 % excluding SFR).

The company attributes the turnaround to continued revenue growth, lower operating expenses and the normalization of impairments.

Market Reaction

  • Opening price (Mon Feb 9): $13.65.
  • Intraday range: $13.50 – $15.25.
  • Closing price: $14.98, a decline of 19.66 % from the previous close of $18.64.
  • Trading volume: 15.61 million shares, significantly above the average of 3.47 million.
  • Bid/ask: $10.75 bid for 200 shares; $17.48 ask for 200 shares.

Despite the company’s return to profitability and a 20 % rise in revenue, investors reacted negatively, leading to a sharp drop in the stock price.

Context

Pagaya Technologies Ltd. (NASDAQ: PGY) is headquartered in Tel‑Aviv, Israel, and offers software solutions for online lending, auto finance, student loans and credit card financing primarily to U.S. clients. The company’s market capitalization is $1.5 billion, with a price‑earnings ratio of –7.25. Its 52‑week high and low are $44.99 and $8.50, respectively.

The market’s negative response may reflect concerns about the company’s ability to sustain profitability momentum and the valuation implied by the current trading price. Investors will likely monitor subsequent guidance, cash‑flow metrics and any updates on the company’s risk framework and platform expansion.