Company: PGYWW
Filing Date: 2025-05-07
Form Type: 10-Q
Source: 0001883085-25-000082
Chunk: 46

Company: Pagaya Technologies Ltd.
Filing Date: 2025-05-07
Form: 10-Q
Item: Part I, Item 1
Chunk 46
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 same period in 2024. Excluding $1.3 million contribution from Theorem in the current period, sales and marketing costs for the three months ended March 31, 2025 decreased $2.0 million compared to the same period in 2024, primarily driven by a $3.6 million decrease in compensation expenses, partially offset by a  $1.7 million increase in overhead allocation and other miscellaneous costs. 

General and Administrative

Three Months Ended March 31,20252024Change% Change(in thousands, except percentages)General and administrative$46,183 $63,068 $(16,885)(27)%

General and administrative costs for the three months ended March 31, 2025 decreased by $16.9 million, compared to the same period in 2024. Excluding $2.6 million contribution from Theorem in the current period, general and administrative costs for the three months ended March 31, 2025 decreased $19.5 million, or 31%, primarily driven by a $12.5 million decrease in transaction costs, and a $3.0 million decrease in compensation expenses.

34

Other Expense, Net

Three Months Ended March 31,20252024Change% Change(in thousands, except percentages)Other expense, net$(47,733)$(34,349)$(13,384)(39)%

Other expense, net for the three months ended March 31, 2025 increased $13.4 million, compared to the same period in 2024. The increase was primarily due to a higher interest expenses of $8.7 million from the long-term debt and exchangeable note and a higher credit-related impairment loss of $7.9 million on certain investments, 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 the credit-related impairment loss of $7.9 million, $6.8 million is attributable to the noncontrolling interest in certain VIEs and accordingly, is not attributable to Pagaya. For further information, please see “—Net Income (Loss) Attributable to Noncontrolling Interests.” These increases were partially offset by a $3.2 million favorable impact from the changes in a contingent consideration liability. See Note 8 for additional information.

Income Tax Expense 

Three Months Ended March 31