Pagaya Technologies Reports 27% Revenue Growth to $1,032.2 Million in 2024

Pagaya Technologies Ltd. reported total revenue and other income of $1,032.2 million for the year ended December 31, 2024, a 27% increase compared to $812.1 million in 2023. This growth was primarily driven by a 30% increase in revenue from fees, reaching $1,004.6 million, due to higher Network AI fees and contract fees. However, interest income decreased by 17% to $32.3 million, and investment income fell to a loss of $4.6 million. The company incurred a net loss attributable to shareholders of $401.4 million in 2024, up from $128.4 million in 2023.

Significant changes in 2024 included the relocation of the company's headquarters to New York City, the election to file as a U.S. domestic issuer, and a 1-for-12 reverse share split. Pagaya also entered into a new Credit Agreement, securing a $355 million Term Loan Facility and a $58 million Revolving Credit Facility. Furthermore, the company completed a $90 million ordinary share offering and issued $160 million in exchangeable senior notes. The acquisition of Theorem Technology, Inc., an institutional asset manager, for approximately $17.5 million was also finalized.

Operational developments showed that Pagaya's network processed over $2.6 trillion in loan applications since its inception, with over 30 partners engaged as of December 31, 2024. Network Volume, a key performance indicator, increased to approximately $9.7 billion in 2024, more than six times the $1.6 billion recorded in 2020. The company employed 553 people globally as of December 31, 2024, following a workforce reduction in the first and second quarters of 2024.

The company's financial performance was impacted by several factors, including increased Production Costs (up 17% to $597.7 million), higher other expenses (primarily due to a $279.5 million credit-related impairment loss), and increased income tax expense (up 58% to $24.6 million). The increase in other expenses was partially offset by a favorable impact from changes in the fair value remeasurement of warrants. The company's outlook anticipates continued investments to support business growth, which, along with potentially challenging macroeconomic conditions, could negatively impact future profitability.

Pagaya's strategic developments focus on expanding its product offerings to new enterprise-level lenders, deepening existing partnerships, building out its product ecosystem, and driving capital efficiency and profitable growth. The company faces competition from various technology companies and financial institutions, and acknowledges risks related to its AI technology, data security, regulatory compliance, and macroeconomic conditions. The company does not intend to pay cash dividends in the foreseeable future.