Company: PGYWW
Filing Date: 2025-05-07
Form Type: 10-Q
Source: 0001883085-25-000082
Chunk: 86

Company: Pagaya Technologies Ltd.
Filing Date: 2025-05-07
Form: 10-Q
Item: Part I, Item 2
Chunk 86
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 agreement (the “Underwriting Agreement”) with Citigroup Global Markets Inc. and Jefferies LLC as representatives of the several underwriters. The proceeds from the offer and sale of the securities are approximately $90.0 million, after deducting the underwriting discount and fees and offering expenses payable by the Company.

Cash Flows

The following table presents summarized consolidated cash flow information for the periods presented (in thousands):

Three Months Ended March 31, 20252024Net cash provided by operating activities$34,427 $17,709 Net cash used in investing activities$(26,886)$(228,125)Net cash (used in) provided by financing activities$(3,779)$298,743 

Operating Activities

Our primary uses of cash in operating activities are for ordinary course of business, with the primary use related to employee and personnel-related expenses. As of March 31, 2025, we had 527 employees compared to 892 on March 31, 2024. During the the first and second quarters of 2024, we reduced our headcount by over 20% across our Israel and U.S. offices. This reduction in workforce enabled us to streamline our operations resulting in cost savings. 

Net cash provided by operating activities for the three months ended March 31, 2025 was $34.4 million, an increase of $16.7 million from net cash provided by operating activities of $17.7 million for the same period in 2024. This reflects our net income including noncontrolling interests of $2.5 million, adjusted for non-cash charges of $56.0 million, and net cash outflows of $24.1 million from changes in our operating assets net of operating liabilities. 

Non-cash charges primarily consisted of (1) impairment losses on investments in loans and securities, which increased by $10.1 million driven by changes in the fair value of investments in loans and securities as a result of fluctuations in key inputs to the discounted cash flow models used to determine fair value, of which $6.8 million is not attributable to Pagaya, but rather 

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attributable to the VIEs noncontrolling interests, (2) share-based compensation, which decreased by $2.3 million, (3) depreciation and amortization, which increased by $1.4 million primarily from capitalized software, and (4) fair value adjustment to warrant liability, which increased by $3.0 million driven by changes in