Company: PGYWW
Filing Date: 2025-05-07
Form Type: 10-Q
Source: 0001883085-25-000082
Chunk: 45

Company: Pagaya Technologies Ltd.
Filing Date: 2025-05-07
Form: 10-Q
Item: Part I, Item 1
Chunk 45
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 investments.  

Costs and Operating Expenses   

Three Months Ended March 31,20252024(in thousands)Production costs$167,083 $144,881 Technology, data and product development19,444 19,380 Sales and marketing9,594 10,257 General and administrative46,183 63,068 Total Costs and Operating Expenses$242,304 $237,586 

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Production Costs

Three Months Ended March 31,20252024Change% Change(in thousands, except percentages)Production costs$167,083 $144,881 $22,202 15 %

Production costs increased by $22.2 million, or 15%, to $167.1 million for the three months ended March 31, 2025 from $144.9 million for the three months ended March 31, 2024. This increase was due to the composition of the asset classes that make up our Network Volume, as well as new Partners onboarded to our network. 

Technology, Data and Product Development

Three Months Ended March 31,20252024Change% Change(in thousands, except percentages)Technology, data and product development$19,444 $19,380 $64 — %

Technology, data and product development costs remained relatively flat year over year. Excluding $1.3 million contributions from Theorem in the current period, technology, data and product development costs decreased by $1.2 million. This decrease was primarily driven by a $2.9 million decrease in compensation expense, partially offset by a $0.7 million increase in  depreciation expenses and a $1.1 million increase in other miscellaneous costs.

During the three months ended March 31, 2025 and 2024, we capitalized $4.5 million and $6.3 million of software development costs, respectively. Depreciation expense, including impairment charges, for capitalized software development costs was $6.2 million and $5.6 million during the three months ended March 31, 2025 and 2024, respectively.

Sales and Marketing

Three Months Ended March 31,20252024Change% Change(in thousands, except percentages)Sales and marketing$9,594 $10,257 $(663)(6)%

Sales and marketing costs for the three months ended March 31, 2025 decreased by $0.7 million, compared to the