Pagaya Posts Record Net Income of $49.732 Million and Raises Annual Forecast
Key Facts
Pagaya Technologies reported record net income attributable to shareholders of $49.732 million in the third quarter of 2026, compared with $22.545 million in the same period of 2025, and raised its annual net income forecast range. The company said in its results statement that the year-over-year increase in net income reflected revenue growth and lower expenses. Operating income was $113 million, up 41% year over year. Network volume also reached $3.6 billion, up 29% from the third quarter of last year. Revenue of $390 million and adjusted EBITDA of $130 million matched the upper end of the company’s announced ranges for the quarter.
Total revenue and other income was $390 million, up 12% year over year, and Pagaya said growth in fee revenue and interest income contributed to the increase. Adjusted EBITDA was $130 million, up 22% year over year. The company attributed growth in the metric to higher net fee revenue after production costs and operating leverage as the business expanded. Operating income rose with network volume growth and stable operating expenses, according to the statement. Activity, revenue and operating profitability indicators all increased in parallel during the quarter.
Net fee revenue after production costs reached $146 million, up 5% year over year, but its share of network volume fell 91 basis points to 4.1%. Pagaya attributed the contraction to the short-term impact of higher benchmark interest rates. The figures show a divergence between growth in net fee revenue and a decline in its share of network volume during the period. On commercial expansion, the company added Citizens Financial Group and First National Bank of Omaha to its personal loan and point-of-sale financing platforms. The additions brought the number of partners that joined over the past twelve months to 7, according to the results statement.
Pagaya said it closed more than $2 billion in longer-term committed capital arrangements, including a term financing for auto loans, a variable funding note warehouse for personal loans and a revolving personal loan securitization. The company described the arrangements as supporting funding diversification and loan origination. On October 12, it announced the completion of a $650 million auto loan-backed securitization, which it said was its 100th asset-backed securitization since its first issuance in 2018. The deal adds to the company’s record of financing loans through securitization markets. Pagaya had raised its 2026 net income forecast range to $155–180 million in its second-quarter results announcement, the baseline before its latest revision.
The company scheduled its third-quarter results conference for October 29, 2026, at 8:30 a.m. Eastern Time. The event follows the increase in its annual net income forecast, amid activity growth and pressure from benchmark interest rates on net fee revenue as a share of network volume. The information provided did not include further details on the company’s new annual forecast or its fourth-quarter ranges. The comparison with the previous July range of $155–180 million for annual net income remains a reference point for the revision Pagaya announced with its third-quarter results.