Company: PGYWW
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001883085-25-000169
Chunk: 29

Company: Pagaya Technologies Ltd.
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 1
Chunk 29
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(1,571)Balance as of June 30, 2024$1,671 Assets and Liabilities Measured at Fair Value on a Recurring Basis (Level 3)Investments in Loans and Securities (Level 3)As of June 30, 2025, the Company held investments in loans and securities classified as available for sale. These assets are measured at fair value using a discounted cash flow model, and presented within investments in loans and securities on the unaudited condensed consolidated balance sheets. Changes in the fair value, other than declines in fair value due to credit, are reflected in other comprehensive income (loss) on the unaudited condensed consolidated statements of comprehensive loss. Declines in fair value due to credit are reflected in other expenses, net on the unaudited condensed consolidated statements of operations. The Company held investments in securities under the fair value option. These assets are measured using a discounted cash flow methodology, while also considering market data as it become available, and presented within investments in loans and securities on the unaudited condensed consolidated balance sheets. The initial fair value measurement and subsequent measurement changes in fair value in the period are reflected in the other expenses, net on the unaudited condensed consolidated statements of operations. The following tables summarize the activity related to the fair value of the investments in loans and securities available for sale (Level 3 only) for the three and six months ended June 30, 2025 and 2024 (in thousands):

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Three Months Ended June 30,Six Months Ended June 30,2025202420252024Balance, beginning of period$641,617 $825,121 $663,189 $626,368 Transfer from Level 2—— — 10,469 Additions182,259 146,821 248,978 406,696 Cash received(60,706)(19,559)(108,016)(42,572)Gain on sale of Investments in loans and securities2,699 — 8,593 — Change in accrued interest on investments5,659 — 8,937 — Change in fair value (OCI)(5,849)(45,905)(21,795)(67,632)Credit-related impairment loss, net of recoveries(28,944)(53,060)(63,151)(79,911)Balance, end of period$736,735$853,418$736,735$853,418Significant un