Pagaya Technologies Ltd.

Pagaya Technologies Ltd. is an Israeli-American financial technology company that leverages artificial intelligence (AI) and a vast data network to reshape the financial services ecosystem. Its core mission is to expand access to credit and financial products for more people by modernizing credit assessment and connecting banks, lenders, and institutional investors. Founded in 2016, the company's global corporate headquarters are located in New York City, U.S., while its critical technology development and R&D center remains in Tel Aviv, Israel.

Pagaya's primary offering is an AI-powered decision-making platform that evaluates loan applications using big data sets and machine learning algorithms. This platform integrates with partners' systems to provide comprehensive consumer credit and residential real estate products. Key product suites include Decline Monetization, Dual Look, First Look, Affiliate Optimizer Engine, Direct Marketing Engine, and FastPass, which collectively form an AI-powered credit and acquisition ecosystem. The company's network is active across various credit segments, including unsecured consumer loans, auto loans, credit cards, point-of-sale financing, and residential real estate, serving a diverse client base of banks, fintechs, and other financial service providers.

Led by co-founder and CEO Gal Krubiner, Pagaya has been publicly traded on NASDAQ under the ticker PGY since 2022. Recent notable activities include the relocation of its corporate headquarters to New York City in 2024 to better align with its U.S.-centric business operations and attract institutional investors. The company frequently closes AAA-rated asset-backed securities (ABS) transactions for personal and auto loans, consistently attracting new institutional investors and demonstrating confidence in its AI-driven credit underwriting model. In 2024, Pagaya also acquired US fund manager Theorem Technology, further expanding its assets under management and diversifying its funding.

Latest updates

Pagaya Raises Full-Year Net Income Guidance on Strong Q1 2026 Results

Event summary

  • Pagaya reported Q1 2026 GAAP net income of $25 million, exceeding its outlook of $15–35 million.
  • Network volume grew 9% year-over-year to $2.6 billion, with 23% growth excluding single-family rentals.
  • Pagaya closed a $450 million RPM resecuritization ABS and received its first AAA rating from Fitch.
  • Evangelos Perros, CFO, is stepping down and will be succeeded by Jon Dobres, Chief Strategy Officer, effective June 15.
  • Full-year 2026 net income guidance raised to $110–160 million, up from previous expectations.

The big picture

Pagaya's strong Q1 2026 results highlight its ability to balance profitability with disciplined risk management. The company's focus on expanding its partner network and deepening product adoption positions it to bridge Wall Street and Main Street for the long term. The first AAA rating from Fitch on its resecuritization ABS reflects consistent credit performance and enhances secondary market liquidity, opening up additional pockets of institutional capital.

What we're watching

Execution Risk
Whether Pagaya can sustain its growth trajectory amid market volatility and tighter pricing conditions.
Governance Dynamics
How the leadership transition from Evangelos Perros to Jon Dobres will impact strategic decision-making.
Market Expansion
The pace at which Pagaya can onboard additional partners and expand its product adoption.

Pagaya Upsizes $800M Personal Loan ABS Deal Amid Market Volatility

Event summary

  • Pagaya closed an upsized $800M AAA-rated personal loan ABS transaction (PAID-2026-3) with 33 unique investors.
  • Year-to-date personal loan ABS issuance reached ~$3B, surpassing 2025 levels.
  • Total ABS issuance since 2018 now stands at nearly $38B across 89 transactions.
  • Three new investors joined Pagaya’s capital markets platform.

The big picture

Pagaya's successful upsizing of its latest ABS transaction underscores continued institutional demand for its personal loan products, even as market conditions remain uncertain. The company's ability to outpace last year's issuance levels highlights its growing role in the AI-driven financial ecosystem, with nearly $38B in total ABS issuance since 2018. This expansion signals both the scalability of Pagaya's platform and the increasing institutional appetite for alternative credit products.

What we're watching

Market Confidence
Whether Pagaya can sustain this issuance pace amid broader market volatility.
Investor Demand
How the addition of new investors will impact future ABS transactions.
Underwriting Discipline
The pace at which Pagaya can maintain its disciplined underwriting approach while expanding.

Pagaya Partners with Sezzle to Boost Point-of-Sale Lending Options

Event summary

  • Pagaya has partnered with Sezzle to embed its AI underwriting platform at the point of sale, enabling higher approval rates and larger basket sizes for merchants.
  • The collaboration allows Sezzle customers to access installment loans issued by WebBank within the Sezzle ecosystem.
  • Pagaya's AI-driven decisioning tools aim to responsibly expand consumer spending power without adding friction for shoppers or merchants.
  • Sezzle joins a growing list of Pagaya's partners leveraging AI models and real-time decisioning for better customer experiences.

The big picture

This partnership underscores the growing trend of fintech companies leveraging AI to enhance point-of-sale financing options. By integrating Pagaya's underwriting platform, Sezzle aims to provide more flexible financing solutions, potentially increasing merchant value and consumer spending. The collaboration highlights the strategic shift towards embedded financial services within digital payment platforms.

What we're watching

Market Expansion
How Pagaya and Sezzle will jointly pursue enterprise-level merchants with higher approval rates and flexible financing options.
Technology Integration
The pace at which Pagaya's AI-powered underwriting platform can be seamlessly integrated into other fintech ecosystems.
Regulatory Compliance
Whether the partnership can maintain responsible lending practices while expanding consumer spending power.

Pagaya Secures $500 Million AAA-Rated Auto ABS, Signaling Investor Confidence

Event summary

  • Pagaya closed RPM-2026-2, a $500 million auto asset-backed securitization (ABS), marking the seventh year of its RPM shelf.
  • The transaction received a AAA rating and attracted sixteen unique investors, the majority of whom were repeat participants.
  • Pagaya has raised over $37 billion across 88 ABS transactions since 2018, spanning personal loans, point-of-sale financing, and auto loans.
  • Sahil Chandiramani, Head of Capital Markets at Pagaya, highlighted increasing demand for the auto program due to a shift towards higher-quality credit flow.

The big picture

Pagaya's continued success in the ABS market validates its AI-driven approach to credit underwriting and demonstrates its ability to attract institutional investors. The $500 million deal underscores the ongoing demand for asset-backed securities, particularly those perceived as high-quality. However, the auto loan market faces headwinds from rising interest rates and potential economic slowdowns, which could impact the performance of these securities.

What we're watching

Credit Quality
The stated shift towards higher-quality credit flow will need to be consistently demonstrated in future ABS offerings to justify the AAA rating and maintain investor interest.
Investor Retention
The high proportion of repeat investors suggests a degree of satisfaction, but the company must ensure continued performance to prevent churn in a potentially volatile market.
Market Dynamics
The success of Pagaya’s RPM shelf will be increasingly dependent on broader economic conditions and the appetite for auto ABS, which are sensitive to interest rate changes and consumer spending.
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