Company: PGYWW
Filing Date: 2025-05-07
Form Type: 10-Q
Source: 0001883085-25-000082
Chunk: 77

Company: Pagaya Technologies Ltd.
Filing Date: 2025-05-07
Form: 10-Q
Item: Part I, Item 2
Chunk 77
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Technology, Data and Product Development

Three Months Ended March 31,20252024Change% Change(in thousands, except percentages)Technology, data and product development$19,444 $19,380 $64 — %

Technology, data and product development costs remained relatively flat year over year. Excluding $1.3 million contributions from Theorem in the current period, technology, data and product development costs decreased by $1.2 million. This decrease was primarily driven by a $2.9 million decrease in compensation expense, partially offset by a $0.7 million increase in  depreciation expenses and a $1.1 million increase in other miscellaneous costs.

During the three months ended March 31, 2025 and 2024, we capitalized $4.5 million and $6.3 million of software development costs, respectively. Depreciation expense, including impairment charges, for capitalized software development costs was $6.2 million and $5.6 million during the three months ended March 31, 2025 and 2024, respectively.

Sales and Marketing

Three Months Ended March 31,20252024Change% Change(in thousands, except percentages)Sales and marketing$9,594 $10,257 $(663)(6)%

Sales and marketing costs for the three months ended March 31, 2025 decreased by $0.7 million, compared to the 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 $