Pagaya Raises Full-Year Net Income Outlook Again

The Tip Desk · July 30, 2026 · 3 min read

Second-quarter network volume hit a record $3.5 billion, up 33% from a year earlier, as Auto volumes reached a $4.8 billion annualized run-rate.

Pagaya Technologies Ltd. (PGY), a global technology company delivering AI-driven product solutions for the financial ecosystem, reported record second-quarter 2026 results and raised its full-year GAAP net income outlook for a second consecutive quarter.

Network volume accelerated to $3.5 billion, up 33% from a year earlier, after $2.6 billion in the first quarter, which had grown 9% year-over-year. The company said the second-quarter increase was driven by growth in its Auto vertical while it maintained a focus on prudent underwriting. Annualized Auto network volumes reached a record $4.8 billion.

Total revenue and other income rose to $387 million, up 19% year-over-year, from $318 million in the first quarter. The company attributed the increase to growth in fee revenue and interest income. Revenue from fees less production costs, or FRLPC, reached a record $147 million, up 16% year-over-year. FRLPC as a percentage of network volume contracted 61 basis points year-over-year to 4.2%, after a 19 basis-point year-over-year contraction to 4.6% in the first quarter. The company said the latest contraction reflected asset-class mix, new partner and product contributions, and tighter pricing on ABS transactions reflecting a higher cost of capital.

GAAP net income attributable to Pagaya shareholders reached a record $45 million, up $29 million from a year earlier, and compared with $25 million in the first quarter. Diluted earnings were $0.49 a share. Operating income reached a record $106 million, up 87% year-over-year. Adjusted EBITDA accelerated to a record $124 million, up 43% year-over-year, from $94 million in the first quarter. Adjusted EBITDA margin rose more than 5 points to 32%. The company said the profit increase reflected revenue growth and lower expenses, and that Adjusted EBITDA benefited from growth in FRLPC and operating leverage.

Fitch revised the company’s corporate rating outlook to Positive, reflecting past improvement in profitability, leverage, and interest coverage.

ABS funding reached a record $3.7 billion across six transactions, including three upsized deals and one resecuritization, compared with $2.1 billion across four transactions in the first quarter. The company said it added an Auto Forward Flow agreement and increased its network to 174 institutional investors. It said the Affiliate Optimizer Engine contributed more than $1 billion in network volume in the quarter and that it expects to exit the year with its Direct Marketing Engine contributing $500 million in network volume.

Chief Executive Gal Krubiner said the record quarter reflected a flywheel in which partners send more volume, adopt more products, and network effects compound with each added relationship. He said Auto was the standout, with the company connected to roughly 30,000 dealerships, more than 40% of the market, and that personal loans reached an all-time high.

For the third quarter of 2026, 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 2026, the company now expects network volume of $12.5 billion to $13.25 billion, total revenue and other income 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. That net-income range followed a prior raise of full-year guidance in the first quarter.