Pagaya Technologies Ltd. reported significant financial developments in its latest 10-Q filing for the quarter ending September 30, 2024. The company experienced a notable increase in revenue, with total revenue and other income reaching $257.2 million, a 21% increase from $211.8 million in the same period of 2023. Revenue from fees rose 24% to $249.3 million, driven primarily by a $45.1 million increase in Network AI fees, which totaled $229.1 million, reflecting improved economics and an 11.3% growth in Network Volume.

Despite the revenue growth, Pagaya reported a net loss of $74.2 million for the third quarter, compared to a loss of $45.9 million in the prior year. The net loss attributable to Pagaya Technologies Ltd. was $67.5 million, up from $21.8 million in Q3 2023. For the nine months ended September 30, 2024, the net loss was $188.6 million, slightly higher than the $176.7 million loss reported for the same period in 2023.

The company’s operating income improved significantly, reaching $22.4 million for the third quarter, compared to a minimal operating loss of $162,000 in Q3 2023. However, comprehensive losses increased, with a comprehensive loss including noncontrolling interests of $93.4 million for Q3 2024, compared to $40.9 million in Q3 2023.

Pagaya's total assets grew to $1.37 billion as of September 30, 2024, up from $1.21 billion at the end of 2023. This increase was accompanied by a rise in total liabilities to $753.8 million, compared to $468.4 million at year-end 2023. The accumulated deficit also widened to $706.1 million from $542.6 million.

Strategically, Pagaya has made significant moves, including the acquisition of Theorem Technology, Inc. for approximately $17.5 million, and the issuance of $160 million in exchangeable senior notes due 2029. The company also reported a workforce reduction of over 20%, decreasing its employee count from 712 to 534, reflecting ongoing efforts to streamline operations.

Cash and cash equivalents decreased to $147.1 million from $186.5 million at the end of 2023, while net cash provided by operating activities improved to $34.5 million, a significant turnaround from the $9.4 million used in the same period last year. The company continues to navigate a challenging economic environment, monitoring potential impacts from macroeconomic conditions, including rising interest rates and geopolitical tensions.