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NEW YORK - Pagaya Technologies Ltd. (NASDAQ:PGY), an AI infrastructure provider for the financial sector whose stock has surged over 150% year-to-date according to InvestingPro data, announced Thursday it expects to exceed its second-quarter 2025 guidance across most metrics, with preliminary results showing stronger performance than previously forecast.
The company anticipates reporting approximately $326 million in total revenue, surpassing its prior guidance range of $290 million to $310 million. Network volume is expected to reach approximately $2.6 billion, exceeding the previous guidance of $2.3 billion to $2.5 billion. This growth aligns with the company’s strong revenue trajectory, having achieved nearly 24% growth in the last twelve months.
GAAP net income is projected to be approximately $17 million, significantly higher than the previously forecasted range of $0 to $10 million. Adjusted EBITDA is expected to be approximately $86 million, at the upper end of the prior guidance range of $75 million to $90 million.
"Our second-quarter results reflect continued strong execution across our network, with a focus on consistent and profitable growth," said Evangelos Perros, CFO of Pagaya.
The company stated it is making this announcement in connection with ongoing evaluation of opportunities to optimize its balance sheet and lower its cost of capital on existing debt. With a current ratio of 1.79, InvestingPro data shows Pagaya maintains strong liquidity with assets well exceeding short-term obligations. Pagaya confirmed it neither needs nor plans to issue equity or equity-linked instruments in the foreseeable future.
Pagaya is still finalizing its financial results for the quarter ended June 30, 2025, and noted that actual results may differ from these preliminary figures. The company plans to report complete second quarter results on August 7, 2025.
The preliminary results have not been audited or reviewed by the company’s independent registered public accounting firm, according to the press release statement.
Pagaya Technologies uses machine learning and AI-driven approaches to provide consumer credit and other financial products through its network of partners. Trading near its 52-week high with an overall "GOOD" financial health rating from InvestingPro, the company shows promising momentum. Investors can access detailed analysis and 8 additional ProTips about Pagaya through InvestingPro’s comprehensive research reports, available for over 1,400 US stocks.
In other recent news, Pagaya Technologies has announced a new $2.5 billion forward flow agreement with Castlelake, which aims to expand their personal loan segment over a 16-month period. This agreement doubles the size of their previous partnership, highlighting Pagaya’s growing funding capacity. Additionally, Pagaya has launched a $1 billion point-of-sale lending program named POSH, designed to enhance merchant satisfaction by increasing funding capacity for POS lenders. This new program has attracted over 20 unique investors, reflecting Pagaya’s momentum in asset-backed securitization markets.
At their recent Annual General Meeting, Pagaya shareholders voted on key proposals, including the election of directors and executive compensation, with strong support shown for all measures. In terms of analyst activity, JMP Securities reiterated a Market Outperform rating for Pagaya, citing potential for significant margin improvement beyond the next 12 months. Benchmark analysts also maintained their Buy rating, following discussions at a recent fintech seminar where Pagaya executives presented growth metrics.
These developments come as Pagaya continues to focus on self-funded growth strategies, without needing additional equity capital. The company’s ongoing initiatives demonstrate its commitment to expanding its financial services and enhancing its funding infrastructure.
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