Company: PGYWW
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001883085-25-000169
Chunk: 174

Company: Pagaya Technologies Ltd.
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 8
Chunk 174
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,455 $21,935 $(3,480)(16)%

Technology, data and product development costs for the three months ended June 30, 2025 decreased $3.5 million, or 16%, compared to the same period in 2024. The decrease was driven by a $2.0 million decrease in compensation expenses and a $1.9 million decrease in depreciation expense, including impairment charges for capitalized software development costs, partially offset by a $0.6 million increase in amortization of intangible assets.   

During the three months ended June 30, 2025 and 2024, we capitalized $4.0 million and $5.9 million of software development costs, respectively. Depreciation expense, including impairment charges for capitalized software development costs was $5.9 million and $7.9 million during the three months ended June 30, 2025 and 2024, respectively.

Sales and Marketing

Three Months Ended June 30,20252024Change% Change(in thousands, except percentages)Sales and marketing$19,660 $13,331 $6,329 47 %

Sales and marketing costs for the three months ended June 30, 2025 increased by $6.3 million, compared to the same period in 2024. The increase was primarily driven by higher compensation expenses, including shared-based compensation.

General and Administrative

Three Months Ended June 30,20252024Change% Change(in thousands, except percentages)General and administrative$40,349 $64,449 $(24,100)(37)%

General and administrative costs for the three months ended June 30, 2025 decreased by $24.1 million, or 37%, compared to the same period in 2024. The decrease was primarily driven by a $11.4 million lower loss from loan purchases and a $8.8 million decrease in compensation expenses during the three months ended June 30, 2025.

Other Expense, Net

Three Months Ended June 30,20252024Change% Change(in thousands, except percentages)Other expense, net$(34,928)$(73,194)$38,266 52 %

Other expense, net for the three months ended June 30, 2025 decreased $38.3 million compared to the same period in 2024. The decrease was primarily due to a $38.0 million decrease