Company: PGYWW
Filing Date: 2025-05-07
Form Type: 10-Q
Source: 0001883085-25-000082
Chunk: 55

Company: Pagaya Technologies Ltd.
Filing Date: 2025-05-07
Form: 10-Q
Item: Part I, Item 1
Chunk 55
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2024. This reflects our net income including noncontrolling interests of $2.5 million, adjusted for non-cash charges of $56.0 million, and net cash outflows of $24.1 million from changes in our operating assets net of operating liabilities. 

Non-cash charges primarily consisted of (1) impairment losses on investments in loans and securities, which increased by $10.1 million 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 which $6.8 million is not attributable to Pagaya, but rather 

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attributable to the VIEs noncontrolling interests, (2) share-based compensation, which decreased by $2.3 million, (3) depreciation and amortization, which increased by $1.4 million primarily from capitalized software, and (4) fair value adjustment to warrant liability, which increased by $3.0 million driven by changes in the market price of our Class A Ordinary Shares.

Our net cash flows resulting from changes in operating assets and liabilities decreased by $25.9 million to net cash outflows of $24.1 million for the three months ended March 31, 2025 compared to net cash inflows of $1.9 million for the same period in 2024.  

Investing Activities 

Our primary uses of cash in investing activities are the purchase of risk retention assets of sponsored securitization vehicles and investments in equity method and other investments.  

For the three months ended March 31, 2025, net cash used in investing activities of $26.9 million was primarily attributable to purchases of risk retention assets of $81.9 million, which decreased by $179.7 million driven by management’s decision to purchase more than the required minimum risk retention holdings in the prior period, partially offset by proceeds received from existing risk retention assets of $58.7 million, which increased by $20.0 million.

Financing Activities 

For the three months ended March 31, 2025, net cash used in financing activities of $3.8 million was primarily attributable to $46.9 million of payment made to secured borrowing, $4.4 million of distributions made to noncontrolling interests, and $4.4 million of repayments made to long-term debt. These net cash outflows were offset by $49.2 million of proceeds from secured borrowing. 

Indebtedness

Exchange