Pagaya Lifts 2026 Net Income Outlook After Record Quarter

The Tip Desk · October 29, 2026 · 3 min read

GAAP net income attributable to Pagaya shareholders reached a record $50 million in the third quarter, and the company raised its full-year 2026 GAAP net income range to $162 million–$182 million.

Pagaya Technologies Ltd. (PGY), a global technology company delivering AI-driven product solutions for the financial ecosystem, reported record GAAP net income attributable to shareholders of $50 million in the third quarter of 2026, up $27 million from a year earlier, and raised its full-year 2026 GAAP net income outlook to $162 million–$182 million from $155 million–$180 million.

The result sat at the high end of the company’s $42 million–$52 million outlook for the quarter. Diluted earnings were $0.52 a share, versus $0.23 a year earlier. The company said the increase reflected revenue growth and lower expenses.

Network volume reached a record $3.6 billion, up 29% from a year earlier, at the top of the $3.425 billion–$3.625 billion outlook. That year-over-year growth rate slowed from 33% in the second quarter. The company attributed the volume increase to growth in Auto and Personal Loan verticals while maintaining a focus on prudent underwriting.

Total revenue and other income was a record $390 million, up 12% year-over-year, also at the high end of the $370 million–$390 million outlook. That growth rate slowed from 19% in the second quarter. Fee revenue was $362 million. Interest income was $29 million.

Revenue from fees less production costs, or FRLPC, was $146 million. FRLPC as a percentage of network volume contracted 91 basis points year-over-year to 4.1%, versus a 61-basis-point contraction to 4.2% in the second quarter. The company said the third-quarter compression was driven by the short-term impact of higher benchmark rates.

Operating income was a record $113 million, up 41% year-over-year, which the company said was driven by network volume growth and stable operating expenses. Adjusted EBITDA was a record $130 million, at the top of the $120 million–$130 million outlook. Adjusted EBITDA margin expanded 3 percentage points to a record 33%. The company said adjusted EBITDA benefited from growth in FRLPC and operating leverage as the business scales.

The company said it onboarded Citizens Financial Group for Personal Loans and First National Bank of Omaha for Point-of-Sale, bringing the total number of partners onboarded in the last 12 months to 7. It also closed more than $2 billion of longer-duration committed capital across an Auto Forward Flow, a Personal Loan Variable Funding Note warehouse, and a revolving Personal Loan securitization.

For the fourth quarter of 2026, Pagaya expects network volume of $2.961 billion–$3.261 billion, total revenue and other income of $355 million–$405 million, adjusted EBITDA of $117 million–$137 million, and GAAP net income of $42 million–$62 million. Full-year 2026 outlooks are network volume of $12.725 billion–$13.025 billion, total revenue and other income of $1.45 billion–$1.5 billion, and adjusted EBITDA of $465 million–$485 million.

Chief Executive Gal Krubiner said momentum was building on more partners, products, and applications feeding a network that is becoming essential infrastructure for consumer lending.