Company: PGYWW
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001883085-25-000169
Chunk: 179

Company: Pagaya Technologies Ltd.
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 8
Chunk 179
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 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 $(17,077)(88)%

Income tax expense for the six months ended June 30, 2025 decreased $17.1 million, compared to the same period in 2024. The decrease was primarily driven by a decrease in discrete tax expenses during the six months ended June 30, 2025. 

Net Loss Attributable to Noncontrolling Interests

Six Months Ended June 30,20252024Change% Change(in thousands, except percentages)Net loss attributable to noncontrolling interests$(5,493)$(18,333)$12,840 70 %

Net loss attributable to noncontrolling interests for the six months ended June 30, 2025 decreased by $12.8 million, or 70%, compared to the same period in 2024. The decrease was driven by the net loss generated by our consolidated VIEs associated with our risk retention holdings. This amount represented the net loss of the consolidated VIEs to which we had no economic right and was the result of a lower credit-related impairment loss of $12.7 million on the risk retention holdings. For further information, see “—Total Revenue and Other Income” and “—Other Expense, Net.”

Reconciliation of Non-GAAP Financial Measures

To supplement our consolidated financial statements prepared and presented in accordance with U.S. GAAP, we use the non-GAAP financial measures FRLPC, Fee Revenue Less Production Costs as percentage of Network Volume (FRLPC %), Adjusted Net Income, and Adjusted EBITDA to provide investors with additional information about our financial performance