Q2 2026 Pagaya Technologies Ltd Earnings Call Transcript
Key Points
- Record network volume of $3.5 billion, up 33% year-over-year, driven by strong growth in auto and personal loans.
- Record GAAP EPS of $0.49 and GAAP net income of $45 million, up significantly from $29 million in the prior year.
- Core operating expenses remained flat year-over-year despite 33% volume growth, demonstrating strong operating leverage.
- Auto segment achieved record volume due to dynamic offer optimization and expanded partner flow, with significant growth potential remaining.
- Funding diversification strengthened with $3.7 billion raised in Q2, 174 investors, and upsized securitizations, including a record $600 million auto ABS.
- FRLPC as a percentage of network volume contracted 60 basis points sequentially to 4.2% due to product mix and elevated benchmark rates.
- Point-of-sale volume expected to decrease in late Q3 and Q4 due to the roll-off of a partner, though with minimal FRLPC impact.
- Elevated benchmark rates continue to compress margins from the funding side of the network.
- Investment portfolio fair value adjusted downward by $42 million in the quarter, reflecting ongoing market conditions.
- Conversion rate remained steady at roughly 1%, indicating that despite higher application volume, the rate of turning applications into loans did not improve.
Greetings.
Welcome to the Pagaya second quarter 2026 earnings call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press *0 on your telephone keypad. Please note this conference is being recorded.
I will now turn the conference over to Craig Smith, Investor Relations at Pagaya Technologies.
Thank you, Craig. You may begin.
Thank you, and welcome to Pagaia's second-quarter 2026 earnings conference call. Joining me today to talk about our business and results are Gal Krubiner, Chief Executive Officer of Pagaia Sanjeev Das, President and John Dovers, Chief Financial Officer. You can find the materials that accompany our prepared remarks in a replay of today's webcast on the Investor Relations section of our website at investor.pagaia.com.
Our remarks today will include forward-looking statements that are based on our
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
