Pagaya Technologies Ltd. Class A Ordinary Shares Q3 2026 Earnings Recap

Pagaya’s shares rose 1.7%, a roughly flat reaction, as 29% network-volume growth and record quarterly GAAP net income came alongside lower FRLPC margin from higher funding costs. Management said recent APR increases should lift the margin in Q4 and into 2027, but that improvement has yet to show in reported results.

Key Takeaways

• Network volume grew 29% year over year; application-to-conversion remained approximately 1%.
• GAAP net income reached a quarterly record of $50 million. Management said operating costs were held flat.
• Higher rates increased the cost of capital and pushed FRLPC margin toward the low end of the company’s 4%–5% range. Pagaya raised APRs in September and October, expecting a higher FRLPC percentage as Q4 progresses and into 2027.
• Credit performance in Auto and Personal Loans was described as in line with expectations; Pagaya raised $3 billion in ABS during the quarter and said funding availability was stronger than ever.
• Citizens and FNBO joined the network, bringing new partner additions to six over the past three quarters—above the stated annual target of two to four.