Company: PGYWW
Filing Date: 2025-11-10
Form Type: 10-Q
Source: 0001883085-25-000195
Chunk: 93

Company: Pagaya Technologies Ltd.
Filing Date: 2025-11-10
Form: 10-Q
Item: Part I, Item 2
Chunk 93
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 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 30,20252024Change% Change(in thousands, except percentages)Sales and marketing$14,453 $11,440 $3,013 26 %

Sales and marketing costs for the three months ended September 30, 2025 increased by $3.0 million, compared to the same period in 2024. The increase was primarily driven by higher compensation expenses, including shared-based compensation.

General and Administrative

Three Months Ended September 30,20252024Change% Change(in thousands, except percentages)General and administrative$36,944 $57,790 $(20,846)(36)%

General and administrative costs for the three months ended September 30, 2025 decreased by $20.8 million, or 36%, compared to the same period in 2024, primarily driven by a $14.3 million lower loss from loan purchases and a $8.0 million decrease in transaction costs charged to general and administrative costs.

Gains and (Losses) on Investments in Loans and Securities

Three Months Ended September 30,20252024Change% Change(in thousands, except percentages)Gains and (losses) on investments in loans and securities$(19,557)$(77,594)$58,037 75