Pagaya Technologies Reports Disappointing Earnings, Shares Plunge
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 13 2026
0mins
Should l Buy PGY?
Source: seekingalpha
Pagaya Technologies Ltd. shares fell 4.90% as the stock hit a 20-day low, reflecting investor concerns following a disappointing earnings report.
The company's recent earnings report revealed revenues of $321 million, falling short of the $349.5 million consensus estimate, which led to a nearly 24% drop in share price. Despite a significant increase in non-GAAP net income, the overall growth was weak, raising questions about future profitability and market position. Additionally, the company anticipates flat or slightly declining network volume for the first quarter, further dampening investor sentiment.
This disappointing performance has led to a significant decline in investor confidence, prompting analysts to adjust their outlooks. The market is now closely monitoring Pagaya's strategic adjustments and future developments to gauge potential recovery.
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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.
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- 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
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- 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
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- 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
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- 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
