Company: PGYWW
Filing Date: 2025-11-10
Form Type: 10-Q
Source: 0001883085-25-000195
Chunk: 163

Company: Pagaya Technologies Ltd.
Filing Date: 2025-11-10
Form: 10-Q
Item: Part I, Item 8
Chunk 163
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 comprehensive loss. Declines in fair value due to credit are reflected in gains and (losses) on investments in loans and securities 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 gains and (losses) on investments in loans and securities 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 nine months ended September 30, 2025 and 2024 (in thousands):

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Three Months Ended September 30,Nine Months Ended September 30,2025202420252024Balance, beginning of period$736,735 $853,418 $663,189 $626,368 Transfer from Level 2—— — 10,469 Additions67,811 130,271 316,789 536,966 Cash received(40,407)(13,077)(148,423)(55,649)Gain on sale of Investments in loans and securities2 — 8,595 — Loss on sale of Investments in loans and securities(16,279)— (16,279)— Change in accrued interest on investments10,599 — 20,497 — Change in fair value and other adjustments (OCI)(14,134)(19,711)(36,892)(87,342)Credit-related impairment loss, net of recoveries8,137 (76,049)(55,012)(155,960)Balance, end of period$752,464$874,852$752,464$874,852Significant unobservable inputs used for our Level 3 fair value measurement of the loans and securities and credit losses are the discount rate, loss rate, and prepayment rate and consideration of any optional redemption features in our investment securities. Significant increases or decreases in any of the inputs in isolation could result in a significantly lower or higher fair value measurement. The following tables present quantitative information about the significant unobservable inputs used for our Level 3 fair value measurement of the securities as of September 30, 2025 and December 31