Pagaya Technologies Closes $800 Million ABS Transaction
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 04 2026
0mins
Should l Buy PGY?
Source: Newsfilter
Pagaya Technologies Ltd. saw a significant pre-market decline of 19.53% as it crossed below its 5-day SMA.
The company successfully closed an $800 million AAA-rated personal loan ABS transaction, marking the largest securitization since November 2024. This transaction attracted 32 unique investors, demonstrating strong demand for Pagaya's AI-enabled assets in the consumer credit ABS market. Despite this positive development, the stock is experiencing a downturn, likely influenced by broader market conditions.
This transaction reinforces Pagaya's leadership in the ABS market, but the current stock price movement suggests a disconnect between the company's strong operational performance and investor sentiment. The market's mixed reaction may provide an opportunity for investors to reassess the stock's value moving forward.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy PGY?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on PGY
Wall Street analysts forecast PGY stock price to rise
6 Analyst Rating
6 Buy
0 Hold
0 Sell
Strong Buy
Current: 10.990
Low
35.00
Averages
43.33
High
54.00
Current: 10.990
Low
35.00
Averages
43.33
High
54.00
About PGY
Pagaya Technologies Ltd is an Israel-based company. It is primarily engaged in financial technology (FinTech) industry. The Company develops data science, machine learning and AI technology (Artificial Intelligence) analytics, enabling accurate, real-time customer credit assessments. Company's customers are lending companies that, by connecting to the AI Pagaya network, have the opportunity to discover and approve new customers that meet their credit criteria. Thanks to the Company's solutions, its customers gains a customer without undue risk. Pagaya Technologies Ltd delivers technology that provides loan assistance such as personal, car and credit card loans. The Company serves its clients all over the world.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Three Undervalued Tech Stocks with Growth Potential
- Clearwater Analytics Growth: Clearwater Analytics (CWAN) saw a 72% revenue surge in Q4 2025 to $217.5 million, with annual recurring revenue (ARR) increasing 77% to $841 million, indicating strong growth potential in the investment management sector.
- AI-Driven Efficiency: The launch of CWAN GenAI has led to clients reporting 90% less manual work and 80% faster reporting cycles, significantly enhancing client efficiency and satisfaction through automated reconciliation and portfolio analysis.
- Karooooo's Subscription Model: Karooooo reported a 22% increase in subscription revenue in Q3 fiscal 2026, reaching $298 million in ARR, with net subscriber additions of 111,478, showcasing robust growth and high customer retention in the connected vehicle platform market.
- Pagaya's Profitability: Pagaya achieved $1.3 billion in revenue for 2025, with adjusted EBITDA rising 76% to $371 million, marking its first GAAP net income of $80 million, and projecting net income of $100 million to $150 million for 2026, demonstrating the sustainability of its capital-light, fee-driven business model.
See More
Three Undervalued Tech Stocks with Growth Potential
- Clearwater Analytics Growth Surge: Clearwater Analytics reported a 72% revenue increase in Q4 2025, reaching $217.5 million, with annual recurring revenue (ARR) up 77% to $841 million, showcasing its robust growth potential in investment management, particularly through AI applications that reduce manual work by 90% and reporting cycles by 80%.
- Karooooo Subscription Revenue Rise: In Q3 FY 2026, Karooooo's subscription revenue grew by 22%, with ARR reaching $298 million and net subscriber additions hitting a record 111,478, demonstrating strong performance in the connected vehicle platform market, where 98% of revenue comes from predictable subscription models, ensuring high margins and stable cash flow.
- Pagaya Technologies Achieves Profitability: Pagaya Technologies reached $1.3 billion in revenue for FY 2025, a 26% increase, with adjusted EBITDA of $371 million and a GAAP net income of $80 million, marking its first profitable year, with guidance for net income of $100 million to $150 million in 2026, indicating rapid expansion and market acceptance of its AI-driven lending network.
- Significant Market Potential: All three companies exhibit strong market potential in their respective fields, with Clearwater's acquisition proposal, Karooooo's sustained growth, and Pagaya's profitability indicating their important roles in the future tech market, attracting investor interest.
See More
Analysis of AI-Driven Potential Companies
- Weave Communications Growth: Weave Communications achieved $239 million in revenue in 2025, a 17% increase, and expanded its market size to $22 billion through new product launches, indicating strong growth potential in the healthcare software sector.
- Evolv Technologies' Technical Edge: Evolv Technologies saw a 57% surge in Q3 2025 revenue to $42.9 million, with full-year guidance of $142 million to $145 million, establishing an irreplicable data advantage in security through its AI weapons detection systems.
- Pagaya Technologies' Market Positioning: Pagaya posted $1.3 billion in revenue in 2025, up 26%, and expects GAAP net income of $100 million to $150 million in 2026, showcasing its robust data infrastructure capabilities beyond traditional credit scoring.
- Strategic Importance of AI Technology: These companies leverage AI technology not only to enhance operational efficiency but also to create new market opportunities in their respective fields, reflecting the significance and potential of AI in addressing real-world problems.
See More
Weave Communications Introduces AI Receptionists to Healthcare
- AI Receptionist Innovation: Weave Communications is launching a new AI receptionist capable of automating patient calls, appointments, and routine inquiries, which is expected to enhance customer service efficiency and reduce labor costs.
- Market Expansion: In 2025, Weave achieved $239 million in revenue, a 17% increase, and expanded its addressable market to $22 billion through new product launches, indicating strong market demand and growth potential.
- Security Technology Breakthrough: Evolv Technologies' AI weapons detection system saw a 57% revenue surge to $42.9 million in Q3 2025, with full-year revenue guidance of $142 million to $145 million, showcasing its technological edge in public safety.
- Credit Market Transformation: Pagaya posted $1.3 billion in revenue for 2025, up 26%, and expects GAAP net income of $100 million to $150 million in 2026, highlighting its unique value and growth potential within the traditional credit system.
See More
Pagaya Closes First Auto ABS Transaction of 2026
- Record Financing: Pagaya successfully raised over $8.5 billion in ABS transactions in 2025, marking a strong performance in the auto ABS sector and further solidifying its position in the financial ecosystem.
- First Transaction Highlights: The first auto ABS transaction of 2026, RPM 2026-1, totals $400 million, demonstrating sustained market demand for Pagaya's auto collateral and reflecting the company's success in attracting investors.
- Investor Participation Growth: The transaction attracted over 20 unique investors, the majority of whom were repeat participants, with the number of participating investors increasing by 62% year-over-year, showcasing the appeal and market confidence in the Pagaya platform.
- Diversified Funding Strategy: The successful execution of RPM 2026-1 supports Pagaya's goal of pursuing a diversified funding strategy, aimed at enhancing its financial flexibility and market competitiveness through ABS and Forward Flow deals.
See More
Long-Term Prospects for Fintech Stocks
- Current Status of Block: Block has a market cap of $38 billion and a current stock price of $63.03, down approximately 80% from its historical highs; despite slight sales growth in Q4, profitability remains a concern, leading to cautious market sentiment regarding its future.
- Layoffs and AI Integration: Block announced a reduction in workforce from 10,000 to 6,000 employees, reflecting its efforts to optimize operations while increasing AI integration for efficiency, yet the market remains skeptical about its long-term competitiveness.
- Growth Potential of Pagaya: Pagaya, with a market cap of $907 million, reported a 20% year-over-year revenue increase in Q4, achieving a net income of $34 million, exceeding projections, indicating strong performance and demand in the credit sector.
- Funding and Market Challenges: Pagaya recently secured $800 million in funding; despite facing pressures from the real estate market and a modest 15% revenue growth outlook for 2026, all analysts rate the stock as a buy, with the lowest target price approximately 80% higher than its current price.
See More
Three Undervalued Tech Stocks with Growth Potential
- Clearwater Analytics Growth: Clearwater Analytics (CWAN) saw a 72% revenue surge in Q4 2025 to $217.5 million, with annual recurring revenue (ARR) increasing 77% to $841 million, indicating strong growth potential in the investment management sector.
- AI-Driven Efficiency: The launch of CWAN GenAI has led to clients reporting 90% less manual work and 80% faster reporting cycles, significantly enhancing client efficiency and satisfaction through automated reconciliation and portfolio analysis.
- Karooooo's Subscription Model: Karooooo reported a 22% increase in subscription revenue in Q3 fiscal 2026, reaching $298 million in ARR, with net subscriber additions of 111,478, showcasing robust growth and high customer retention in the connected vehicle platform market.
- Pagaya's Profitability: Pagaya achieved $1.3 billion in revenue for 2025, with adjusted EBITDA rising 76% to $371 million, marking its first GAAP net income of $80 million, and projecting net income of $100 million to $150 million for 2026, demonstrating the sustainability of its capital-light, fee-driven business model.
See More
Three Undervalued Tech Stocks with Growth Potential
- Clearwater Analytics Growth Surge: Clearwater Analytics reported a 72% revenue increase in Q4 2025, reaching $217.5 million, with annual recurring revenue (ARR) up 77% to $841 million, showcasing its robust growth potential in investment management, particularly through AI applications that reduce manual work by 90% and reporting cycles by 80%.
- Karooooo Subscription Revenue Rise: In Q3 FY 2026, Karooooo's subscription revenue grew by 22%, with ARR reaching $298 million and net subscriber additions hitting a record 111,478, demonstrating strong performance in the connected vehicle platform market, where 98% of revenue comes from predictable subscription models, ensuring high margins and stable cash flow.
- Pagaya Technologies Achieves Profitability: Pagaya Technologies reached $1.3 billion in revenue for FY 2025, a 26% increase, with adjusted EBITDA of $371 million and a GAAP net income of $80 million, marking its first profitable year, with guidance for net income of $100 million to $150 million in 2026, indicating rapid expansion and market acceptance of its AI-driven lending network.
- Significant Market Potential: All three companies exhibit strong market potential in their respective fields, with Clearwater's acquisition proposal, Karooooo's sustained growth, and Pagaya's profitability indicating their important roles in the future tech market, attracting investor interest.
See More
Analysis of AI-Driven Potential Companies
- Weave Communications Growth: Weave Communications achieved $239 million in revenue in 2025, a 17% increase, and expanded its market size to $22 billion through new product launches, indicating strong growth potential in the healthcare software sector.
- Evolv Technologies' Technical Edge: Evolv Technologies saw a 57% surge in Q3 2025 revenue to $42.9 million, with full-year guidance of $142 million to $145 million, establishing an irreplicable data advantage in security through its AI weapons detection systems.
- Pagaya Technologies' Market Positioning: Pagaya posted $1.3 billion in revenue in 2025, up 26%, and expects GAAP net income of $100 million to $150 million in 2026, showcasing its robust data infrastructure capabilities beyond traditional credit scoring.
- Strategic Importance of AI Technology: These companies leverage AI technology not only to enhance operational efficiency but also to create new market opportunities in their respective fields, reflecting the significance and potential of AI in addressing real-world problems.
See More
Weave Communications Introduces AI Receptionists to Healthcare
- AI Receptionist Innovation: Weave Communications is launching a new AI receptionist capable of automating patient calls, appointments, and routine inquiries, which is expected to enhance customer service efficiency and reduce labor costs.
- Market Expansion: In 2025, Weave achieved $239 million in revenue, a 17% increase, and expanded its addressable market to $22 billion through new product launches, indicating strong market demand and growth potential.
- Security Technology Breakthrough: Evolv Technologies' AI weapons detection system saw a 57% revenue surge to $42.9 million in Q3 2025, with full-year revenue guidance of $142 million to $145 million, showcasing its technological edge in public safety.
- Credit Market Transformation: Pagaya posted $1.3 billion in revenue for 2025, up 26%, and expects GAAP net income of $100 million to $150 million in 2026, highlighting its unique value and growth potential within the traditional credit system.
See More
Pagaya Closes First Auto ABS Transaction of 2026
- Record Financing: Pagaya successfully raised over $8.5 billion in ABS transactions in 2025, marking a strong performance in the auto ABS sector and further solidifying its position in the financial ecosystem.
- First Transaction Highlights: The first auto ABS transaction of 2026, RPM 2026-1, totals $400 million, demonstrating sustained market demand for Pagaya's auto collateral and reflecting the company's success in attracting investors.
- Investor Participation Growth: The transaction attracted over 20 unique investors, the majority of whom were repeat participants, with the number of participating investors increasing by 62% year-over-year, showcasing the appeal and market confidence in the Pagaya platform.
- Diversified Funding Strategy: The successful execution of RPM 2026-1 supports Pagaya's goal of pursuing a diversified funding strategy, aimed at enhancing its financial flexibility and market competitiveness through ABS and Forward Flow deals.
See More
Long-Term Prospects for Fintech Stocks
- Current Status of Block: Block has a market cap of $38 billion and a current stock price of $63.03, down approximately 80% from its historical highs; despite slight sales growth in Q4, profitability remains a concern, leading to cautious market sentiment regarding its future.
- Layoffs and AI Integration: Block announced a reduction in workforce from 10,000 to 6,000 employees, reflecting its efforts to optimize operations while increasing AI integration for efficiency, yet the market remains skeptical about its long-term competitiveness.
- Growth Potential of Pagaya: Pagaya, with a market cap of $907 million, reported a 20% year-over-year revenue increase in Q4, achieving a net income of $34 million, exceeding projections, indicating strong performance and demand in the credit sector.
- Funding and Market Challenges: Pagaya recently secured $800 million in funding; despite facing pressures from the real estate market and a modest 15% revenue growth outlook for 2026, all analysts rate the stock as a buy, with the lowest target price approximately 80% higher than its current price.
See More
