Company: PGYWW
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001883085-25-000169
Chunk: 175

Company: Pagaya Technologies Ltd.
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 8
Chunk 175
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 in credit-related impairment loss on certain investments from $53.6 million in the prior period to $15.6 million in the current period, 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 $15.6 million in the current period, $1.9 million is attributable to the noncontrolling interest in certain VIEs and accordingly, is not attributable to Pagaya Shareholders. Also contributing to the decrease was $2.8 million of gain from sales of certain investments in the current period, and a favorable impact of $2.2 million from a release of contingent liability associated with the acquisition of Theorem. These decreases were partially offset by higher interest expenses of $1.5 million.

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Income Tax Expense

Three Months Ended June 30,20252024Change% Change(in thousands, except percentages)Income tax expense$4,978 $14,512 $(9,534)(66)%

Income tax expense for the three months ended June 30, 2025 decreased $9.5 million, compared to the same period in 2024. The decrease was primarily driven by a decrease in discrete tax expenses during the three months ended June 30, 2025. 

Net Loss Attributable to Noncontrolling Interests

Three Months Ended June 30,20252024Change% Change(in thousands, except percentages)Net loss attributable to noncontrolling interests$(92)$(7,894)$7,802 99 %

Net loss attributable to noncontrolling interests for the three months ended June 30, 2025 decreased $7.8 million 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 $7.3 million on the risk retention holdings. For further information, see “—Total Revenue and Other Income” and “—Other Expense, Net.”

Comparison of Six Months Ended June 30, 2025 and 2024

Total Revenue and Other Income  

Six Months Ended June 30,20252024Change% Change(in thousands, except percentages)Revenue from fees$600,418 $479