Pagaya Technologies Ltd. (PGY) came out with quarterly earnings of $1.02 per share, beating the Zacks Consensus Estimate of $0.62 per share.
PGY expects strong Q3 results, with revenues rising 32% y/y.
In the closing of the recent trading day, Pagaya Technologies Ltd. (PGY) stood at $28.47, denoting a -1.86% move from the preceding trading day.
Pagaya's AI underwriting flywheel drives structural profitability and sustainable cash flow growth beyond traditional credit cycles. Revenue reached $1.15 billion with EBITDA of $193 million, confirming an inflection in operating leverage. Forward flow agreements exceeding $4.9 billion ensure predictable funding and lower capital intensity.
Pagaya Technologies is rated a buy, driven by strong growth, AI-powered lending, and significant undervaluation versus peers. PGY's capital-light model, robust partner network, and consistent double-digit revenue and EBITDA growth highlight its competitive edge and scalability. Forward P/E of 10.44x and a 73% forward EBITDA growth rate suggest the market is mispricing PGY, with a price target of $64.6 by the end of 2026.
Pagaya Technologies, a small-cap fintech player, has outperformed its fintech and Israeli tech peers by a huge margin this year, even as its share price has expanded by over 2x. Network volumes and FRLPC margins continue to expand at a healthy pace, while PGY will be GAAP profitable on an annual basis by the end of this year. PGY looks compelling from a PEG viewpoint (a multiple of less than 0.6x), while it is also priced at a substantial P/E discount to other peers, particularly Upstart.
The PGY stock has soared 225.3% in 2025, fueled by profitability, AI-driven growth and bullish analyst sentiment.
In the latest trading session, Pagaya Technologies Ltd. (PGY) closed at $31.76, marking a -8.31% move from the previous day.
Pagaya Technologies is delivering profitable growth, with Q2 2025 revenue up 30% y/y and two consecutive GAAP-profitable quarters. PGY raised 2025 guidance, driven by expanding margins, new verticals like auto and POS loans, and robust partnerships with over 30 lenders. Despite a 246% stock rally, PGY remains undervalued at 2.2x forward sales and 10x EBITDA, offering significant upside versus fintech peers.
PGY expands lending capacity with AI-driven growth and a capital-light, diversified model.
Pagaya Technologies Ltd. (PGY) shares have started gaining and might continue moving higher in the near term, as indicated by solid earnings estimate revisions.
Pagaya has soared 200% but remains undervalued, with strong Q2'25 results and a market cap just over $2 billion. The fintech is rapidly expanding its AI lending platform, signing major funding deals like Castlelake and moving into auto and POS loan originations. The stock trades at less than 10x 2026 EPS targets, though loan impairment charges are a risk to the investment story.