Company: PGYWW
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001883085-25-000169
Chunk: 36

Company: Pagaya Technologies Ltd.
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 1
Chunk 36
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 as tax rates in foreign jurisdictions and the relative amounts of income the Company earns in those jurisdictions. The change in the effective tax rate was primarily due to discrete tax expenses related to a change in uncertain tax positions in the three and six months ended June 30, 2025. The difference between the effective tax rate and the statuary tax rate in Israel mainly related to a change in valuation allowance in Israel, tax expenses in the United States, and a change in uncertain tax positions. The Company regularly assesses the need for a valuation allowance against its deferred tax assets. In making that assessment, the Company considers both positive and negative evidence related to the likelihood of realization of the deferred tax assets to determine, based on the weight of available evidence, whether it is more likely than not that some or all of the deferred tax assets will not be realized.The Company provides a valuation allowance to offset certain deferred tax assets due to the uncertainty of realizing future tax benefits from its net operating loss carryforwards and other deferred tax assets. On July 4, 2025, the One Big Beautiful Bill Act was signed into law in the U.S. which contains a broad range of tax reform provisions affecting businesses. We are evaluating the full effects of the legislation on our effective tax rate and cash tax position on our financial statements. As the legislation was signed into law after the close of our second quarter, the impacts are not included in our operating results for three and six months ended June 30, 2025

NOTE 14 - EARNINGS (LOSS) PER SHARE

The following tables set forth the calculation of basic and diluted earnings (loss) per share attributable to ordinary shareholders for the three and six months ended June 30, 2025 and 2024 (in thousands, except share and per share data): 

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Three Months Ended June 30, 2025Six Months Ended June 30, 2025Basic EPS:Numerator:  Net income attributable to Pagaya Technologies Ltd.$16,655 $24,548   Less: Undistributed earnings allocated to preferred shares1,017 1,509   Net income attributable to Pagaya Technologies Ltd. ordinary shareholders, basic$15,638 $23,039 Denominator:  Weighted average shares used for earnings per ordinary share, basic76,873,52976,347,801  Earnings per share attributable to ordinary shareholders, basic$0.20 $0.30 Diluted EPS:Numerator: