Company: PGYWW
Filing Date: 2025-11-10
Form Type: 10-Q
Source: 0001883085-25-000195
Chunk: 155

Company: Pagaya Technologies Ltd.
Filing Date: 2025-11-10
Form: 10-Q
Item: Part I, Item 8
Chunk 155
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 instrument, unrealized gains and losses for that instrument should be reported in earnings at each subsequent reporting date. We elected the fair value option to measure certain securities, as we believe that fair value best reflects the economic transaction of investing in certain new securities. We determined the fair value of certain securities using a discounted cash flow methodology, while also considering market data as it became available. We record the initial fair value measurement and subsequent measurement changes in fair value in the period in which the changes occur within the gains and (losses) on investments in loans and securities in the unaudited condensed consolidated statements of operations. We report the changes in fair value within (gains) and losses on investments in loans and securities in the unaudited condensed consolidated statements of cash flow.The following table presents activities of investments in securities for which we elected the fair value option. See Note 10 for the assumptions used in our fair value model (in thousands):Three Months Ended September 30,Nine Months Ended September 30,Investments in securities under the fair value option2025202420252024Balance, beginning of period$32,888 $— $— $— Purchases7,829 — 28,855 — Principal payments(9,010)— (9,010)— Change in fair value17,051 — 28,913 — Balance, end of period$48,758 $— $48,758 $— Equity Method and Other Investments The following investments, including those accounted for under the equity method, are included within Equity method and other investments in the unaudited condensed consolidated balance sheets as of September 30, 2025 and December 31, 2024 (in thousands):  Carrying ValueSeptember 30, 2025December 31, 2024Investments in Pagaya SmartResi F1 Fund, LP (1)$9,689 $12,530 Other (2)5,158 9,403 Total$14,847 $21,933 (1) The Company owns approximately 5.4% and is the general partner of Pagaya Smartresi F1 Fund LP.

(2) Represents the Company’s proprietary investments. Income (loss) from these investments is included in Investment income (loss), net in the unaudited condensed consolidated statements of operations. 

NOTE 6 - CONSOLIDATION AND VARIABLE INTEREST ENTITIES 

The Company has variable interests in se