Company: PGYWW
Filing Date: 2025-11-10
Form Type: 10-Q
Source: 0001883085-25-000195
Chunk: 189

Company: Pagaya Technologies Ltd.
Filing Date: 2025-11-10
Form: 10-Q
Item: Part I, Item 8
Chunk 189
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Contract fees, comprised of administration and management fees and performance fees, increased by $33.7 million from $62.7 million for the nine months ended September 30, 2024 to $96.4 million for the nine months ended September 30, 2025. This increase was due to higher net asset values of assets held by certain Financing Vehicles driven by continued business growth, and an increase in performance fees, as the prior period included a reversal of performance fees.

Interest income increased by $8.7 million, or 35%, to $33.3 million for the nine months ended September 30, 2025 from $24.7 million for the nine months ended September 30, 2024. The increase in interest income was directly related to our risk retention holdings and related securities held in our consolidated VIEs as well as certain risk retention holdings held directly by our consolidated subsidiaries. For further information, see “—Net Income (Loss) Attributable to Noncontrolling Interests.” The increase in interest income was primarily the result of changes in structure and composition of asset portfolio.

Investment loss increased by $6.4 million to $7.1 million for the nine months ended September 30, 2025, reflecting an unfavorable impact from the change in valuation of certain proprietary investments.  

Costs and Operating Expenses   

Nine Months Ended September 30,20252024(in thousands)Production costs$559,122 $439,448 Technology, data and product development56,135 57,970 Sales and marketing43,707 35,028 General and administrative123,476 185,307 Total Costs and Operating Expenses$782,440 $717,753 

Production Costs

Nine Months Ended September 30,20252024Change% Change(in thousands, except percentages)Production costs$559,122 $439,448 $119,674 27 %

Production costs increased by $119.7 million, or 27%, to $559.1 million for the nine months ended September 30, 2025 from $439.4 million for the nine 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.

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Technology, Data and Product Development

Nine Months Ended September 30,20252024Change% Change(in thousands,