Company: PGYWW
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001883085-25-000169
Chunk: 93

Company: Pagaya Technologies Ltd.
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 2
Chunk 93
---
million compared to the same period in 2024. The increase was primarily driven by higher compensation expenses, including shared-based compensation.

General and Administrative

40

Six Months Ended June 30,20252024Change% Change(in thousands, except percentages)General and administrative$86,532 $127,517 $(40,985)(32)%

General and administrative costs for the six months ended June 30, 2025 decreased by $41.0 million, compared to the same period in 2024. The decrease was primarily driven by a $14.6 million decrease in loss from loan purchases, a $13.9 million decrease in transaction costs charged to general and administrative costs, and a $10.7 million decrease in compensation expense.

Other Expense, Net

Six Months Ended June 30,20252024Change% Change(in thousands, except percentages)Other expense, net$(82,661)$(107,543)$24,882 23 %

Other expense, net for the six months ended June 30, 2025 decreased $24.9 million, compared to the same period in 2024. The decrease was primarily due to a $24.2 million decrease in credit-related impairment loss on certain investments from $76.4 million in the prior period to $52.2 million in the current period, driven by changes in the fair value of investments in loans and securities as a result of fluctuations in key inputs to the discounted cash flow models used to determine fair value. Of the credit-related impairment loss of $52.2 million in the current period, $8.7 million is attributable to the noncontrolling interest in certain VIEs, and accordingly, is not attributable to Pagaya Shareholders. For further information, see “—Net Income (Loss) Attributable to Noncontrolling Interests.” Also contributing to the decrease was $8.7 million of gain from sales of certain investments in the current period, and a favorable impact of $5.4 million from a release of contingent liability associated with the acquisition of Theorem. Theses decreases were partially offset by higher interest expenses of $7.6 million and an unfavorable impact from the change in fair value of warrant liability of $3.1 million.

Income Tax Expense 

Six Months Ended June 30,20252024Change% Change(in thousands, except percentages)Income tax expense$2,438 $19,515 $(17