Company: PGYWW
Filing Date: 2025-11-10
Form Type: 10-Q
Source: 0001883085-25-000195
Chunk: 96

Company: Pagaya Technologies Ltd.
Filing Date: 2025-11-10
Form: 10-Q
Item: Part I, Item 2
Chunk 96
---
 or 29%, to $940.3 million, compared to the same period in 2024. The increase was primarily due to a $177.7 million increase in Network AI fees, comprised of AI integration fees and capital markets execution fees, from $666.2 million for the nine months ended September 30, 2024 to $843.9 million for the nine months ended September 30, 2025. The increase in Network AI fees was primarily driven by improved economics of AI integration fees earned from certain Partners, as well as the growth in Network Volume, which increased by 11% from $7.1 billion for the nine months ended September 30, 2024 to $7.9 billion for the nine months ended September 30, 2025. These increases were partially offset by a  decrease in capital markets execution fees earned from our ABS and forward flow transactions during the nine months ended September 30, 2025. 

Contract fees, comprised of administration and management fees and performance fees, increased by $33.7 million from $62.7 million for the nine months ended September 30, 2024 to $96.4 million for the nine months ended September 30, 2025. This increase was due to higher net asset values of assets held by certain Financing Vehicles driven by continued business growth, and an increase in performance fees, as the prior period included a reversal of performance fees.

Interest income increased by $8.7 million, or 35%, to $33.3 million for the nine months ended September 30, 2025 from $24.7 million for the nine months ended September 30, 2024. The increase in interest income was directly related to our risk retention holdings and related securities held in our consolidated VIEs as well as certain risk retention holdings held directly by our consolidated subsidiaries. For further information, see “—Net Income (Loss) Attributable to Noncontrolling Interests.” The increase in interest income was primarily the result of changes in structure and composition of asset portfolio.

Investment loss increased by $6.4 million to $7.1 million for the nine months ended September 30, 2025, reflecting an unfavorable impact from the change in valuation of certain proprietary investments.  

Costs and Operating Expenses   

Nine Months Ended September 30,20252024(in thousands)Production costs$559,122 $439,448 Technology, data and product development56,