Company: PGYWW
Filing Date: 2025-05-07
Form Type: 10-Q
Source: 0001883085-25-000082
Chunk: 81

Company: Pagaya Technologies Ltd.
Filing Date: 2025-05-07
Form: 10-Q
Item: Part I, Item 2
Chunk 81
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 the amount and timing of these items is unpredictable, is not driven by core results of operations and renders comparisons with prior periods and competitors less meaningful.

We believe FRLPC, FRLPC %, Adjusted Net Income, and Adjusted EBITDA provide useful information to investors and others in understanding and evaluating our results of operations, as well as providing a useful measure for period-to-period comparisons of our business performance. Moreover, we have included FRLPC, FRLPC %, Adjusted Net Income, and Adjusted EBITDA in this report because these are key measurements used by our management internally to make operating decisions, including those related to operating expenses, evaluate performance, and perform strategic planning and annual budgeting. However, this non-GAAP financial information is presented for supplemental informational purposes only, should not be considered a substitute for or superior to financial information presented in accordance with U.S. GAAP and may be different from similarly titled non-GAAP financial measures used by other companies. 

The following tables present reconciliations of FRLPC to Operating Income, and Adjusted EBITDA to Net Income Attributable to Pagaya Technologies Ltd., in each case the most directly comparable U.S. GAAP measure ($ in thousands, unless otherwise noted):

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Three Months Ended March 31,20252024Operating Income$47,685 $7,690 Add: Technology, data and product development19,444 19,380 Add: Sales and marketing9,594 10,257 Add: General and administrative46,183 63,068 Less: Interest income7,676 7,744 Less: Investment (loss) income(391)528 Fee Revenue Less Production Costs (FRLPC)$115,621 $92,123 Network Volume (in millions)$2,400 $2,419 Fee Revenue Less Production Costs % (FRLPC %)4.8 %3.8 %

Three Months Ended March 31,20252024Net Income (Loss) Attributable to Pagaya Technologies Ltd.$7,893 $(21,223)Adjusted to exclude the following:Share-based compensation13,172 15,475 Fair value adjustment to contingent liability(3,184)— Fair value adjustment to warrant liability1,099 (1,900)Impairment loss on certain investments29,511 19,483 Restructuring expenses962 820 Transaction-related expenses14 400 Non-recurring expenses