Company: PGYWW
Filing Date: 2025-11-10
Form Type: 10-Q
Source: 0001883085-25-000195
Chunk: 55

Company: Pagaya Technologies Ltd.
Filing Date: 2025-11-10
Form: 10-Q
Item: Part I, Item 1
Chunk 55
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Change% Change(in thousands, except percentages)Sales and marketing$14,453 $11,440 $3,013 26 %

Sales and marketing costs for the three months ended September 30, 2025 increased by $3.0 million, compared to the same period in 2024. The increase was primarily driven by higher compensation expenses, including shared-based compensation.

General and Administrative

Three Months Ended September 30,20252024Change% Change(in thousands, except percentages)General and administrative$36,944 $57,790 $(20,846)(36)%

General and administrative costs for the three months ended September 30, 2025 decreased by $20.8 million, or 36%, compared to the same period in 2024, primarily driven by a $14.3 million lower loss from loan purchases and a $8.0 million decrease in transaction costs charged to general and administrative costs.

Gains and (Losses) on Investments in Loans and Securities

Three Months Ended September 30,20252024Change% Change(in thousands, except percentages)Gains and (losses) on investments in loans and securities$(19,557)$(77,594)$58,037 75 %

Losses on investments in loans and securities for the three months ended September 30, 2025 decreased $58.0 million compared to the same period in 2024. The decrease was primarily due to a $74.0 million reduction in credit-related impairment loss on certain investments from $77.6 million in the prior period to $3.5 million in the current period, primarily 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, as well as fair value option gains from ABS resecuritizations at lower interest rates during the current period. Of the credit-related impairment loss of $3.5 million in the current period, $1.0 million is attributable to the noncontrolling interest in certain VIEs and accordingly, is not attributable to Pagaya Shareholders. These improvements were partially offset by a $16.3 million increase in loss from sales of certain investments in the current period.

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Other Expense, Net

Three Months Ended September 30,20252024Change% Change(in thousands, except percentages)Other expense, net$(27,377)$(30,