Company: PGYWW
Filing Date: 2025-11-10
Form Type: 10-Q
Source: 0001883085-25-000195
Chunk: 187

Company: Pagaya Technologies Ltd.
Filing Date: 2025-11-10
Form: 10-Q
Item: Part I, Item 8
Chunk 187
---
 a $16.3 million increase in loss from sales of certain investments in the current period.

39

Other Expense, Net

Three Months Ended September 30,20252024Change% Change(in thousands, except percentages)Other expense, net$(27,377)$(30,345)$2,968 10 %

Other expense, net for the three months ended September 30, 2025 decreased $3.0 million compared to the same period in 2024. The decrease was primarily due to a $4.8 million decrease in interest expenses resulting from the Company’s ongoing strategy to optimize its capital structure by reducing higher-cost debt, and a favorable foreign exchange impact of $4.2 million. These favorable impacts were offset by an unfavorable impact of $3.7 million from the change in fair value of warrant liability.

Loss from Extinguishment of Debt

Three Months Ended September 30,20252024Change% Change(in thousands, except percentages)Loss from extinguishment of debt$(24,961)$(200)$(24,761)NM

NM: Not Meaningful

Loss from extinguishment of debt is $25.0 million one-time loss related to the write-off of deferred issuance costs and the early payment penalty from the repayment of the outstanding principal balance under the Credit Agreement and secured borrowings using the proceeds from the issuance of Senior Notes.

Income Tax Benefit

Three Months Ended September 30,20252024Change% Change(in thousands, except percentages)Income tax benefit$(15,210)$(11,524)$(3,686)(32)%

Income tax benefit for the three months ended September 30, 2025 increased $3.7 million, compared to the same period in 2024. The increase was primarily driven by an increase in discrete tax benefit during the three months ended September 30, 2025. 

Net Income (Loss) Attributable to Noncontrolling Interests

Three Months Ended September 30,20252024Change% Change(in thousands, except percentages)Net income (loss) attributable to noncontrolling interests$728 $(6,755)$7,483 111 %

Net income (loss) attributable to noncontrolling interests for the three months ended September 30, 2025 increased $7.5 million compared to the same period in 2024. The increase was driven by the net income generated by our consolidated VIEs associated with our risk retention holdings. This amount