JFrog stock rises as Cantor Fitzgerald maintains Overweight rating after strong Q2
Investing.com -- Shares of Pagaya (NASDAQ:PGY) Technologies Ltd. (NASDAQ: PGY) rose 22% after the company reported fourth-quarter earnings that surpassed analyst expectations. The artificial intelligence financial technology firm announced a Q4 EPS of $0.17, significantly outperforming the analyst estimate of ($0.28). Revenue for the quarter reached $279.39 million, exceeding the consensus estimate of $266.68 million and marking a substantial increase from the same quarter last year.
The New York and Tel Aviv-based company also provided an optimistic outlook for the first quarter of 2025, projecting revenues of $280-295 million against a consensus estimate of $278.6 million. For the full year 2025, Pagaya anticipates revenues to be in the range of $1.15-1.27 billion, compared to the consensus of $1.18 billion.
Pagaya’s strong performance in the fourth quarter was highlighted by record network volume of $2.6 billion, a 9% growth YoY, driven primarily by personal loans. The company’s total revenue and other income for the quarter increased by 28% YoY, with fee revenue growing by 31%. These results were complemented by a record adjusted EBITDA of $64 million, up 88% YoY, and an adjusted EBITDA margin improvement of 728 basis points to 23.0%.
The company’s CEO, Gal Krubiner, expressed confidence in Pagaya’s financial and operational trajectory, citing strong operating results and the resolution of legacy issues. Krubiner emphasized the company’s strengthened balance sheet, operating leverage, and self-funded status, along with the initiation of guidance on GAAP profitability for the full year 2025. Pagaya expects to be GAAP Net Income profitable in the second quarter of 2025.
Despite marking down the fair market value of its investment portfolio by $156 million, which included $229 million of credit-related impairments and a positive reclassification of $79 million, the company does not foresee investments from 2021-2023 vintages materially impacting future performance.
Investors responded positively to the earnings report and the company’s forward-looking statements, which suggest a trajectory of sustainable revenue growth and profitability. The detailed financial results and management’s discussion are available in Pagaya’s fourth-quarter 2024 letter to shareholders.
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