Company: PGYWW
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001883085-25-000169
Chunk: 24

Company: Pagaya Technologies Ltd.
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 1
Chunk 24
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 sheets. The Company’s operating lease expense consists of rent and variable lease payments. Variable lease payments such as common area maintenance were included in operating expenses. Rent expense for the Company’s short-term leases was immaterial for the periods presented. Operating lease expense was as follows (in thousands):Three Months Ended June 30,Six Months Ended June 30,2025202420252024Rent expense$2,734$2,938$5,573$5,849Variable lease payments$130$80$264$174Sublease income (1)$1,310$1,003$2,474$2,008(1) The Company entered into sublease agreements for certain leased office space, and the amounts were included in other expense, net in the unaudited condensed consolidated statements of income.Supplemental information related to the Company’s operating leases was as follows ($ in thousands):

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June 30, 2025December 31, 2024Weighted-average remaining lease term (in years)5.45.8Weighted-average discount rate9.0 %9.1 %Three Months Ended June 30,Six Months Ended June 30,2025202420252024Operating lease right-of-use assets recognized in exchange for new operating lease obligations$(113)$— $(113)$(219)Maturities of the Company’s operating lease liabilities as of June 30, 2025 were as follows (in thousands): 2025$4,861 20269,765 20278,310 20285,604 20295,697 Thereafter10,921 Total45,158 Less: imputed interest(9,074)Total operating lease liabilities$36,084 

NOTE 8 - COMMITMENTS AND CONTINGENCIES 

Legal Proceedings — From time to time the Company is subject to legal proceedings and claims in the ordinary course of business. The results of such matters often cannot be predicted with certainty. In accordance with applicable accounting guidance, the Company establishes an accrued liability for legal proceeding and claims when those matters present loss contingencies which are both probable and reasonably estimable. All such liabilities arising from current legal matters, to the extent such matters existed, have been recorded in accrued expenses and other liabilities on the unaudited condensed consolidated balance sheets and these matters are immaterial. Contractual Obligations and Commitments — From time to time, the Company enters into a purchase commitment with our third-party cloud computing web services providers. As of June