Company: PGYWW
Filing Date: 2025-11-10
Form Type: 10-Q
Source: 0001883085-25-000195
Chunk: 54

Company: Pagaya Technologies Ltd.
Filing Date: 2025-11-10
Form: 10-Q
Item: Part I, Item 1
Chunk 54
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controlling Interests.” The increase in interest income was primarily the result of changes in structure and composition of asset portfolio.

Investment loss increased by $3.9 million to $4.6 million for the three months ended September 30, 2025, reflecting an unfavorable impact from the change in valuation of certain proprietary investments. 

Costs and Operating Expenses  

Three Months Ended September 30,20252024(in thousands)Production costs$200,574 $148,965 Technology, data and product development18,236 16,655 Sales and marketing14,453 11,440 General and administrative36,944 57,790 Total Costs and Operating Expenses$270,207 $234,850 

Production Costs

Three Months Ended September 30,20252024Change% Change(in thousands, except percentages)Production costs$200,574 $148,965 $51,609 35 %

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Production costs increased by $51.6 million, or 35%, to $200.6 million for the three months ended September 30, 2025 from $149.0 million for the three 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.

Technology, Data and Product development

Three Months Ended September 30,20252024Change% Change(in thousands, except percentages)Technology, data and product development$18,236 $16,655 $1,581 9 %

Technology, data and product development costs for the three months ended September 30, 2025 increased $1.6 million, or 9%, compared to the same period in 2024. The increase was driven by a $1.0 million increase in depreciation expenses, net of capitalization (as explained below), and a $0.5 million increase in cloud server and miscellaneous expenses.

During the three months ended September 30, 2025 and 2024, we capitalized $3.9 million and $5.7 million of software development costs, respectively. Depreciation expense, including impairment charges for capitalized software development costs was $5.8 million and $6.6 million during the three months ended September 30, 2025 and 2024, respectively.

Sales and Marketing

Three Months Ended September 30,20252024