Company: PGYWW
Filing Date: 2025-11-10
Form Type: 10-Q
Source: 0001883085-25-000195
Chunk: 94

Company: Pagaya Technologies Ltd.
Filing Date: 2025-11-10
Form: 10-Q
Item: Part I, Item 2
Chunk 94
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Losses on investments in loans and securities for the three months ended September 30, 2025 decreased $58.0 million compared to the same period in 2024. The decrease was primarily due to a $74.0 million reduction in credit-related impairment loss on certain investments from $77.6 million in the prior period to $3.5 million in the current period, primarily 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, as well as fair value option gains from ABS resecuritizations at lower interest rates during the current period. Of the credit-related impairment loss of $3.5 million in the current period, $1.0 million is attributable to the noncontrolling interest in certain VIEs and accordingly, is not attributable to Pagaya Shareholders. These improvements were partially offset by a $16.3 million increase in loss from sales of certain investments in the current period.

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Other Expense, Net

Three Months Ended September 30,20252024Change% Change(in thousands, except percentages)Other expense, net$(27,377)$(30,345)$2,968 10 %

Other expense, net for the three months ended September 30, 2025 decreased $3.0 million compared to the same period in 2024. The decrease was primarily due to a $4.8 million decrease in interest expenses resulting from the Company’s ongoing strategy to optimize its capital structure by reducing higher-cost debt, and a favorable foreign exchange impact of $4.2 million. These favorable impacts were offset by an unfavorable impact of $3.7 million from the change in fair value of warrant liability.

Loss from Extinguishment of Debt

Three Months Ended September 30,20252024Change% Change(in thousands, except percentages)Loss from extinguishment of debt$(24,961)$(200)$(24,761)NM

NM: Not Meaningful

Loss from extinguishment of debt is $25.0 million one-time loss related to the write-off of deferred issuance costs and the early payment penalty from the repayment of the outstanding principal balance under the Credit Agreement and secured borrowings using the proceeds from the issuance of Senior Notes.

Income Tax Benefit

Three Months Ended September 30,20252024Change% Change(in thousands, except percentages)Income tax benefit$(15,210