Company: PGYWW
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001883085-25-000169
Chunk: 92

Company: Pagaya Technologies Ltd.
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 2
Chunk 92
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20252024(in thousands)Production costs$358,548 $290,483 Technology, data and product development37,899 41,315 Sales and marketing29,254 23,588 General and administrative86,532 127,517 Total Costs and Operating Expenses$512,233 $482,903 

Production Costs

Six Months Ended June 30,20252024Change% Change(in thousands, except percentages)Production costs$358,548 $290,483 $68,065 23 %

Production costs increased by $68.1 million, or 23%, to $358.5 million for the six months ended June 30, 2025 from $290.5 million for the six months ended June 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.

Technology, Data and Product Development

Six Months Ended June 30,20252024Change% Change(in thousands, except percentages)Technology, data and product development$37,899 $41,315 $(3,416)(8)%

Technology, data and product development costs for the six months ended June 30, 2025 decreased $3.4 million, or 8%, compared to the same period in 2024. This decrease was primarily driven by a $4.3 million decrease in compensation expense and a $1.3 million decrease in depreciation expense, including impairment charges for capitalized software development costs, 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