Company: PGYWW
Filing Date: 2025-11-10
Form Type: 10-Q
Source: 0001883085-25-000195
Chunk: 191

Company: Pagaya Technologies Ltd.
Filing Date: 2025-11-10
Form: 10-Q
Item: Part I, Item 8
Chunk 191
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.2 million compared to the same period in 2024. The decrease was primarily due to a $98.3 million reduction in credit-related impairment loss on certain investments from $154.0 million in the prior period to $55.7 million in the current period, primarily 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, as well as fair value option gains from ABS resecuritizations at lower interest rates during the current period. Of the credit-related impairment loss of $55.7 million in the current period, $9.7 million is attributable to the noncontrolling interest in certain VIEs and accordingly, is not attributable to Pagaya Shareholders. These improvements were partially offset by a $7.6 million increase in loss (net of gain) from sales of certain investments in the current period.

Other Expense, Net

42

Nine Months Ended September 30,20252024Change% Change(in thousands, except percentages)Other expense, net$(66,267)$(61,481)$(4,786)(8)%

Other expense, net for the nine months ended September 30, 2025 increased $4.8 million compared to the same period in 2024. The increase was primarily due to an unfavorable impact of $6.8 million from the change in fair value of warrant liability, and higher interest expenses of $2.3 million reflecting a higher borrowing balance in the current period. These increases were partially offset by a favorable impact of $5.8 million from a release of contingent liability associated with the acquisition of Theorem. 

Loss From Extinguishment of Debt

Nine Months Ended September 30,20252024Change% Change(in thousands, except percentages)Loss from extinguishment of debt$(25,457)$(200)$(25,257)NM

NM: Not Meaningful

Loss from extinguishment of debt is $25.3 million one-time loss related to the write-off of deferred issuance costs and the early payment penalty from the repayment of the outstanding principal balance under the Credit Agreement and secured borrowings using the proceeds from the issuance of Senior Notes.

Income Tax (Benefit) Expense 

Nine Months Ended September 30,20252024Change% Change(in thousands, except percentages)Income tax (benefit) expense$(12,772)$7,991 $(20,