Company: PGYWW
Filing Date: 2025-11-10
Form Type: 10-Q
Source: 0001883085-25-000195
Chunk: 97

Company: Pagaya Technologies Ltd.
Filing Date: 2025-11-10
Form: 10-Q
Item: Part I, Item 2
Chunk 97
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135 57,970 Sales and marketing43,707 35,028 General and administrative123,476 185,307 Total Costs and Operating Expenses$782,440 $717,753 

Production Costs

Nine Months Ended September 30,20252024Change% Change(in thousands, except percentages)Production costs$559,122 $439,448 $119,674 27 %

Production costs increased by $119.7 million, or 27%, to $559.1 million for the nine months ended September 30, 2025 from $439.4 million for the nine months ended September 30, 2024. This increase was due to an increase in the Network Volume attributable to business growth in addition to the composition of the asset classes that make up our Network Volume.

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Technology, Data and Product Development

Nine Months Ended September 30,20252024Change% Change(in thousands, except percentages)Technology, data and product development$56,135 $57,970 $(1,835)(3)%

Technology, data and product development costs for the nine months ended September 30, 2025 decreased $1.8 million, or 3%, compared to the same period in 2024. This decrease was primarily driven by a $5.2 million decrease in compensation expense, partially offset by a $1.8 million increase in amortization of intangible assets and a $1.0 million increased in cloud server expenses. 

During the nine months ended September 30, 2025 and 2024, we capitalized $12.4 million and $17.8 million of software development costs, respectively. Depreciation expense, including impairment charges for capitalized software development costs was $18.0 million and $20.1 million during the nine months ended September 30, 2025 and 2024, respectively.

Sales and Marketing

Nine Months Ended September 30,20252024Change% Change(in thousands, except percentages)Sales and marketing$43,707 $35,028 $8,679 25 %

Sales and marketing costs for the nine months ended September 30, 2025 increased by $8.7 million compared to the same period in 2024. The increase was primarily driven by higher compensation expenses, including shared-based compensation.

General and Administrative

Nine Months Ended September 30,20252024Change% Change(in thousands