Company: PGYWW
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001883085-25-000169
Chunk: 187

Company: Pagaya Technologies Ltd.
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 8
Chunk 187
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 six months ended June 30, 2025 was $91.8 million, an increase of $64.8 million from net cash provided by operating activities of $27.0 million for the same period in 2024. This reflects our net income including noncontrolling interests of $19.1 million, adjusted for non-cash charges of $103.8 million, and net cash outflows of $31.1 million from changes in our operating assets net of operating liabilities. 

Non-cash charges during six months ended June 30, 2025 primarily consisted of (1) impairment losses on investments in loans and securities, which decreased by $25.4 million compared to the same period in 2024, 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 which $8.7 million is not attributable to Pagaya, but rather attributable to the VIEs noncontrolling interests, (2) share-based compensation, which decreased by $2.1 million compared to the same period in 2024,, (3) depreciation and amortization, which increased by $2.0 million compared to the same period in 2024, primarily from capitalized software, and (4) 

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fair value adjustment to warrant liability, which increased by $3.1 million compared to the same period in 2024, driven by changes in the market price of our Class A Ordinary Shares.

Our net cash flows resulting from changes in operating assets and liabilities decreased by $43.2 million to net cash outflows of $31.1 million for the six months ended June 30, 2025 compared to net cash inflows of $12.1 million for the same period in 2024.  

Investing Activities 

Our primary uses of cash in investing activities are the purchase of risk retention assets of sponsored securitization vehicles and investments in equity method and other investments.  

For the six months ended June 30, 2025, net cash used in investing activities totaled $152.2 million, primarily driven by purchases of risk retention assets. These purchases of risk retention assets amounted to $274.1 million, a decrease of $134.3 million compared to the prior period, driven by diversified funding channels, including asset-backed securitization, pass-through and forward flow transactions, in the current period. This cash outflow was partially offset by proceeds received from existing risk