Company: PGYWW
Filing Date: 2025-11-10
Form Type: 10-Q
Source: 0001883085-25-000195
Chunk: 99

Company: Pagaya Technologies Ltd.
Filing Date: 2025-11-10
Form: 10-Q
Item: Part I, Item 2
Chunk 99
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 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 $(20,763)(260)%

Income tax expense for the nine months ended September 30, 2025 decreased $20.8 million, compared to the same period in 2024. The decrease was primarily driven by a decrease in discrete tax expenses during the nine months ended September 30, 2025. 

Net Loss Attributable to Noncontrolling Interests

Nine Months Ended September 30,20252024Change% Change(in thousands, except percentages)Net loss attributable to noncontrolling interests$(4,765)$(25,088)$20,323 81 %

Net loss attributable to noncontrolling interests for the nine months ended September 30, 2025 decreased by $20.3 million, or 81%, 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 $19.6 million on the risk retention holdings. For further information, see “—Total Revenue and Other Income” and “—Gains and (losses) on Investments in Loans and Securities.”

Reconciliation of Non-GAAP Financial Measures

To supplement our consolidated financial statements prepared and presented in accordance with U.S. GAAP, we use the non-GAAP financial measures FRLPC, Fee Revenue Less Production Costs as percentage of Network Volume (FRLPC %), Adjusted Net