Company: PGYWW
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001883085-25-000169
Chunk: 178

Company: Pagaya Technologies Ltd.
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 8
Chunk 178
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, partially offset by a $1.2 million increase in amortization of intangible assets and a $0.7 million increased in cloud server expenses. 

During the six months ended June 30, 2025 and 2024, we capitalized $8.4 million and $12.2 million of software development costs, respectively. Depreciation expense, including impairment charges for capitalized software development costs was $12.2 million and $13.5 million during the six months ended June 30, 2025 and 2024, respectively.

Sales and Marketing

Six Months Ended June 30,20252024Change% Change(in thousands, except percentages)Sales and marketing$29,254 $23,588 $5,666 24 %

Sales and marketing costs for the six months ended June 30, 2025 increased by $5.7 million compared to the same period in 2024. The increase was primarily driven by higher compensation expenses, including shared-based compensation.

General and Administrative

40

Six Months Ended June 30,20252024Change% Change(in thousands, except percentages)General and administrative$86,532 $127,517 $(40,985)(32)%

General and administrative costs for the six months ended June 30, 2025 decreased by $41.0 million, compared to the same period in 2024. The decrease was primarily driven by a $14.6 million decrease in loss from loan purchases, a $13.9 million decrease in transaction costs charged to general and administrative costs, and a $10.7 million decrease in compensation expense.

Other Expense, Net

Six Months Ended June 30,20252024Change% Change(in thousands, except percentages)Other expense, net$(82,661)$(107,543)$24,882 23 %

Other expense, net for the six months ended June 30, 2025 decreased $24.9 million, compared to the same period in 2024. The decrease was primarily due to a $24.2 million decrease in credit-related impairment loss on certain investments from $76.4 million in the prior period to $52.2 million in the current period, driven by changes in the fair value of investments in loans and securities as a result of fluctuations in key inputs to the discounted cash flow models used to determine fair value. Of the credit-related impairment loss of $52.2