Company: PGYWW
Filing Date: 2025-11-10
Form Type: 10-Q
Source: 0001883085-25-000195
Chunk: 59

Company: Pagaya Technologies Ltd.
Filing Date: 2025-11-10
Form: 10-Q
Item: Part I, Item 1
Chunk 59
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 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, except percentages)General and administrative$123,476 $185,307 $(61,831)(33)%

General and administrative costs for the nine months ended September 30, 2025 decreased by $61.8 million, compared to the same period in 2024. The decrease was primarily driven by a $24.0 million lower loss from loan purchases, a $21.9 million decrease in transaction costs charged to general and administrative costs, and a $11.0 million decrease in compensation expenses.

Gains and (Losses) on Investments in Loans and Securities

Nine Months Ended September 30,20252024Change% Change(in thousands, except percentages)Gains and (losses) on investments in loans and securities$(62,832)$(154,001)$91,169 59 %

Losses on investments in loans and securities for the nine months ended September 30, 2025 decreased $91.2 million compared to the same period in 2024. The decrease was primarily due to a $98.3 million reduction in credit-related impairment loss on certain investments from $154.0 million in the prior period to $55.7 million in the current period