Company: PGYWW
Filing Date: 2025-03-12
Form Type: 10-K
Source: 0001883085-25-000050
Chunk: 269

Company: Pagaya Technologies Ltd.
Filing Date: 2025-03-12
Form: 10-K
Item: Item 7
Chunk 269
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 Adjusted Net Income (Loss) and Adjusted EBITDA (in thousands):

Year Ended December 31,202420232022Revenue from fees$1,004,550 $772,814 $685,414 Production costs597,652 508,944 451,084 Fee Revenue Less Production Cost (FRLPC)$406,898 $263,870 $234,330 

FRLPC has grown during 2023 and 2024 primarily as a result of our ability to monetize the value creation inherent in our lending product. Approximately 50% of our lending partnerships are generating FRLPC from both our lending and investor products, while the remaining 50% are only generating FRLPC from our investor products.

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Table of Contents

Year Ended December 31,202420232022Net Loss Attributable to Pagaya Technologies Ltd.$(401,406)$(128,438)$(302,321)Adjusted to exclude the following:Share-based compensation61,497 71,055 241,689 Fair value adjustment to warrant liability(2,349)1,842 (11,088)Impairment loss on certain investments394,484 52,381 8,836 Write-off of capitalized software3,245 1,938 3,209 Restructuring expenses3,583 5,450 — Transaction-related expenses2,095 6,153 — Non-recurring expenses5,717 6,175 27,011 Adjusted Net Income (Loss)$66,866 $16,556 $(32,664)Adjusted to exclude the following:Interest expenses90,183 30,740 5,136 Income tax expense 24,576 15,571 16,400 Depreciation and amortization28,753 19,155 6,294 Adjusted EBITDA$210,378 $82,022 $(4,834)

Liquidity and Capital Resources

As of December 31, 2024 and December 31, 2023, the principal sources of liquidity were cash, cash equivalents and restricted cash of $226.5 million and $222.5 million, respectively. 

Our primary requirements for liquidity and capital resources are to purchase and finance risk retention requirements, invest in technology, data and product development and to attract, recruit and retain a strong employee base, as well as to fund potential strategic transactions