Company: PGYWW
Filing Date: 2025-05-07
Form Type: 10-Q
Source: 0001883085-25-000082
Chunk: 78

Company: Pagaya Technologies Ltd.
Filing Date: 2025-05-07
Form: 10-Q
Item: Part I, Item 2
Chunk 78
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19.5 million, or 31%, primarily driven by a $12.5 million decrease in transaction costs, and a $3.0 million decrease in compensation expenses.

34

Other Expense, Net

Three Months Ended March 31,20252024Change% Change(in thousands, except percentages)Other expense, net$(47,733)$(34,349)$(13,384)(39)%

Other expense, net for the three months ended March 31, 2025 increased $13.4 million, compared to the same period in 2024. The increase was primarily due to a higher interest expenses of $8.7 million from the long-term debt and exchangeable note and a higher credit-related impairment loss of $7.9 million on certain investments, 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 $7.9 million, $6.8 million is attributable to the noncontrolling interest in certain VIEs and accordingly, is not attributable to Pagaya. For further information, please see “—Net Income (Loss) Attributable to Noncontrolling Interests.” These increases were partially offset by a $3.2 million favorable impact from the changes in a contingent consideration liability. See Note 8 for additional information.

Income Tax Expense 

Three Months Ended March 31,20252024Change% Change(in thousands, except percentages)Income tax (benefit) expense$(2,540)$5,003 $(7,543)(151)%

Income tax expense for the three months ended March 31, 2025 decreased $7.5 million, compared to the same period in 2024. The decrease was primarily driven by discrete tax expenses related to a change in the reserve for an uncertain tax position related to credit loss on investments in loans and securities during the three months ended March 31, 2025. 

Net Loss Attributable to Noncontrolling Interests

Three Months Ended March 31,20252024Change% Change(in thousands, except percentages)Net loss attributable to noncontrolling interests$(5,401)$(10,439)$5,038 48 %

Net loss attributable to noncontrolling interests for the three months ended March 31, 2025 decreased by $5.0 million, or 48%, compared to the