Company: PGYWW
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001883085-25-000169
Chunk: 51

Company: Pagaya Technologies Ltd.
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 1
Chunk 51
---
 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 $1.6 million to $2.1 million for the three months ended June 30, 2025, reflecting an unfavorable impact from the change in valuation of certain proprietary investments. 

Costs and Operating Expenses  

Three Months Ended June 30,20252024(in thousands)Production costs$191,465 $145,602 Technology, data and product development18,455 21,935 Sales and marketing19,660 13,331 General and administrative40,349 64,449 Total Costs and Operating Expenses$269,929 $245,317 

Production Costs

Three Months Ended June 30,20252024Change% Change(in thousands, except percentages)Production costs$191,465 $145,602 $45,863 31 %

37

Production costs increased by $45.9 million, or 31%, to $191.5 million for the three months ended June 30, 2025 from $145.6 million for the three months ended June 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.

Technology, Data and Product development

Three Months Ended June 30,20252024Change% Change(in thousands, except percentages)Technology, data and product development$18,455 $21,935 $(3,480)(16)%

Technology, data and product development costs for the three months ended June 30, 2025 decreased $3.5 million, or 16%, compared to the same period in 2024. The decrease was driven by a $2.0 million decrease in compensation expenses and a $1.9 million decrease in depreciation expense, including impairment charges for capitalized software development costs, partially offset by a $0.6 million increase in amortization of intangible assets.   

During the three months ended June 30, 2025 and 2024, we capitalized $4.0 million and $5.9 million of software development costs, respectively. Depreciation expense, including impairment charges for capitalized software development costs was $5.9 million