Q1 2025 Pagaya Technologies Ltd Earnings Call Transcript
Key Points
- Pagaya Technologies Ltd (PGY) achieved positive GAAP net income of $8 million, ahead of their second-quarter guidance and for the first time as a public company.
- Revenue grew by 18% year over year, reaching an annualized run rate of nearly $1.2 billion.
- Fee revenue less production costs (FRLPC) grew by 26%, reaching an annualized run rate of over $460 million.
- Adjusted EBITDA doubled to an annualized equivalent of approximately $320 million, demonstrating strong operational efficiency.
- The company has diversified its funding sources, including a forward flow agreement with Blue Owl Capital to purchase up to $2.4 billion in loans over 24 months.
- Network volume was slightly below guidance, primarily due to lower SFR volume.
- There is ongoing macroeconomic and geopolitical uncertainty, which could impact future performance.
- Interest expense remains a concern, although it has decreased from previous quarters.
- The company faces potential credit-related losses, with net credit-related losses reported at $24 million for the quarter.
- The market volatility and potential changes in consumer health and credit performance remain risks that the company needs to manage carefully.
Greetings and welcome to Pagaya Technologies Q1 2025 earnings conference call.
(Operator Instructions)
As a reminder, this conference is being recorded.
It is now my pleasure to introduce your host, Mr. Josh Fagen, Head of Investor Relations. Thank you, Mr. Fagen. You may begin.
Thank you and welcome to Pagaya's first-quarter 2025 earnings conference call.
Joining me today to talk about our business and results are Gal Krubiner, Chief Executive Officer of Pagaya; Sanjiv Das, President; and Evangelos Perros, Chief Financial Officer.
You can find the materials that accompany our prepared remarks and a replay of today's webcast on the Investor Relations section of our website at investor.pagaya.com.
Our remarks today will include forward-looking statements that are based on our current expectations and forecasts with respect to, among other things, our operations and financial performance, including
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