Pagaya Q2 profit beats on strong network volume growth

Overview

• AI-driven financial solutions provider's Q2 adjusted EPS beat analyst expectations

• Q2 total revenue and other income rose 19% yr/yr to $387 mln

• Company raised full-year net income guidance after record Q2 performance

Outlook

• Pagaya sees 3Q26 network volume between $3.425 bln and $3.625 bln

• Company expects 3Q26 GAAP net income between $42 mln and $52 mln

• Pagaya raises FY26 GAAP net income guidance to $155 mln-$180 mln

Result Drivers

• NETWORK VOLUME GROWTH - Co said 33% yr/yr increase in network volume was driven by growth in Auto vertical and expansion of partner relationships

• FEE AND INTEREST INCOME - 19% yr/yr revenue growth attributed to higher fee revenue and interest income

• OPERATING LEVERAGE - Operating income rose 87% yr/yr as network volume grew and operating expenses remained stable

Company press release: ID:nBw3KNNJga

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 11 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the financial technology (fintech) peer group is "buy"

• Wall Street's median 12-month price target for Pagaya Technologies Ltd is $26.00, about 60.6% above its July 29 closing price of $16.19

• The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 8 three months ago

Reuters Recommended Reads

• July 29 - PSQ Holdings Q2 revenue jumps on Fintech growth

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• July 28 - TransUnion beats Q2 revenue estimates, raises 2026 revenue growth outlook

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)