Company: PGYWW
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001883085-25-000169
Chunk: 89

Company: Pagaya Technologies Ltd.
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 2
Chunk 89
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 June 30, 2025 and 2024, respectively.

Sales and Marketing

Three Months Ended June 30,20252024Change% Change(in thousands, except percentages)Sales and marketing$19,660 $13,331 $6,329 47 %

Sales and marketing costs for the three months ended June 30, 2025 increased by $6.3 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 June 30,20252024Change% Change(in thousands, except percentages)General and administrative$40,349 $64,449 $(24,100)(37)%

General and administrative costs for the three months ended June 30, 2025 decreased by $24.1 million, or 37%, compared to the same period in 2024. The decrease was primarily driven by a $11.4 million lower loss from loan purchases and a $8.8 million decrease in compensation expenses during the three months ended June 30, 2025.

Other Expense, Net

Three Months Ended June 30,20252024Change% Change(in thousands, except percentages)Other expense, net$(34,928)$(73,194)$38,266 52 %

Other expense, net for the three months ended June 30, 2025 decreased $38.3 million compared to the same period in 2024. The decrease was primarily due to a $38.0 million decrease in credit-related impairment loss on certain investments from $53.6 million in the prior period to $15.6 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 $15.6 million in the current period, $1.9 million is attributable to the noncontrolling interest in certain VIEs and accordingly, is not attributable to Pagaya Shareholders. Also contributing to the decrease was $2.8 million of gain from sales of certain investments in the current period, and a favorable impact of $2.2 million from a release of contingent liability associated with the acquisition of Theorem. These decreases were partially offset by higher interest expenses of $1.5 million.

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Income Tax Expense

Three