Company: PGYWW
Filing Date: 2025-05-07
Form Type: 10-Q
Source: 0001883085-25-000082
Chunk: 44

Company: Pagaya Technologies Ltd.
Filing Date: 2025-05-07
Form: 10-Q
Item: Part I, Item 1
Chunk 44
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.0 million for the three months ended March 31, 2025 from $245.3 million for the three months ended March 31, 2024. The increase was primarily driven by an increase in revenue from fees, partially offset by a decrease in investment (loss) income. 

Revenue from fees for the three months ended March 31, 2025 increased by $45.7 million, or 19%, to $282.7 million, compared to the same period in 2024. The increase was primarily due to a $38.1 million increase in Network AI fees, comprised of AI integration fees and capital markets execution fees, from $215.3 million for the three months ended March 31, 2024 to $253.4 million for the three months ended March 31, 2025. The increase in Network AI fees was primarily driven by improved economics of AI integration fees earned from certain Partners which increased by 25% from $205.6 million for the three months ended March 31, 2024 to $257.5 million for the three months ended March 31, 2025. These increases were partially offset by a  decrease in capital markets execution fees earned from our ABS transactions during the three months ended March 31, 2025. 

Contract fees, comprised of administration and management fees and performance fees, increased by $7.6 million from $21.7 million for the three months ended March 31, 2024 to $29.3 million for the three months ended March 31, 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 year period included a reversal of performance fees.  

Interest income remained relatively flat year over year. Interest income is 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.” 

Investment (loss) income decreased by $0.9 million to a loss of $0.4 million for the three months ended March 31, 2025 from an income of $0.5 million for three months ended March 31, 2024, reflecting an unfavorable impact from the change in valuation of certain proprietary