Pagaya v roce 2026 zvýšila objem emisí ABS nad 9 mld. USD, přestože rozšiřuje alternativní způsoby financování; sekuritizace tak zůstává jejím klíčovým zdrojem financování.
Key Takeaways Pagaya raised $3.7B across six ABS deals in Q2'26 and added 11 institutional investors.PGY secured major auto, personal-loan and receivables facilities to broaden funding flexibility.Pagaya's 2026 ABS issuance topped $9B, showing securitization remains central to its funding model. Pagaya Technologies (PGY - Free Report) is steadily broadening its funding base, which could make its capital model more resilient. In second-quarter 2026, it raised $3.7 billion across six asset-backed securities (ABS) transactions and added 11 new institutional investors, taking the total to 174. At the same time, the company is expanding committed-capital structures outside traditional securitization markets, improving funding flexibility and visibility.
Recent transactions reinforce this shift. Pagaya secured up to $700 million in auto funding from Neuberger Specialty Finance, a nearly $700-million Variable Funding Note facility with ATLAS SP Partners and a $460-million revolving personal-loan facility expected to support about $850 million in capital deployment. It also expanded its ALPF receivables facility to $100 million. Together, these arrangements broaden funding flexibility and reduce reliance on the timing of public securitizations.
That flexibility could become increasingly important as Pagaya scales across personal loans, auto and point-of-sale financing. Its auto business reached an annualized network-volume run rate of $4.8 billion in the second quarter, while total quarterly network volume was $3.5 billion. Management has indicated that a growing portion of funding now comes through non-prefunded structures, including forward-flow and revolving arrangements. A broader mix of committed funding sources could help Pagaya better match different asset classes with different pools of institutional capital and reduce execution risk during periods when securitization spreads widen or investor demand weakens.
However, the company is not moving away from ABS in any meaningful sense yet. A few days ago, Pagaya completed a $600-million AAA-rated personal-loan securitization, lifting 2026 ABS issuance to more than $9 billion, including more than $6 billion tied to personal loans. The transaction drew 47 investors, including three new participants, underscoring continued demand for Pagaya-backed assets. Importantly, some of the newer funding structures are designed to bridge loans into eventual securitizations, meaning they can support the ABS model rather than substitute for it.
Hence, Pagaya appears to be building a more diversified funding architecture rather than replacing securitization. Forward-flow agreements, revolving facilities and warehouse-style structures should improve capital availability and reduce funding concentration risk, which is constructive for growth and execution. Still, record ABS issuance shows that securitization remains a core funding engine.
Comparing Pagaya’s Business Model With PeersLike PGY, Upstart Holdings, Inc. (UPST - Free Report) is an artificial intelligence (AI)-based lending platform that aspires to become capital-light but often holds loans on its balance sheet temporarily. The company’s core business model involves finding financing for loans after its network of bank and institutional partners originates them.
Upstart partner banks can finance the loan by keeping it on their balance sheet. The bank can sell the whole loan on Upstart’s platform or use forward flow agreements from institutions that commit to buying a specific volume or type of loan originated on the Upstart platform in the future.
Upstart also uses securitization, wherein pools of loans are bundled together and sold as ABS to institutional investors. However, the firm frequently reverts to a balance-sheet-heavy model, especially in tight liquidity markets, making it more volatile and exposed to macro cycles.
Another close competitor of PGY is LendingTree (TREE - Free Report) . But unlike PGY, LendingTree is a marketplace platform, not a lender. It matches consumers with financial product providers like mortgages, personal loans, credit cards and insurance.
LendingTree does not underwrite, originate or hold loans. Hence, its balance sheet is not credit-heavy. TREE’s balance sheet is detached from revenue generation. The company is primarily structured to support a fee-based digital marketplace, not balance sheet lending.
PGY’s Price Performance, Valuation & Estimate AnalysisOver the past six months, Pagaya shares have gained 51.9%, outperforming the industry’s growth.
Image Source: Zacks Investment Research
The stock is currently trading at a 12-month forward price-to-sales of 0.94X, which is below the industry average of 2.70X.
Image Source: Zacks Investment Research
Over the past seven days, the Zacks Consensus Estimate for PGY’s 2026 and 2027 earnings has been unchanged at $3.68 and $4.13, respectively. The consensus estimate indicates 11.2% and 12.2% year-over-year growth for 2026 and 2027, respectively.
Pagaya Technologies v září klesla o 20 %, protože investoři se obávají dopadu vysokých sazeb a volatility dluhopisového trhu na její úvěrový byznys. Ve 2. čtvrtletí výnosy vzrostly o 19 % na 387 milionů USD a čistý zisk o 172 % na 45 milionů USD.
Shares of Pagaya Technologies (PGY +3.10%) stock fell 20% in September, according to data provided by S&P Global Market Intelligence. Investors are worried about how high interest rates and bond market volatility will impact the credit evaluation company.
The AI way to lend moneyPagaya operates a credit platform driven by artificial intelligence (AI) and machine learning. It teams up with client lenders, who have Pagaya's platform integrated into their systems, to assess borrower risk quickly and more accurately than traditional models. Client partners can then approve more loans without adding risk.
Image source: Getty Images.
The platform acts as a middleman, approving these loans and then selling them as asset-backed securities (ABS) to partnering funders. The software-based model is agile and low-cost, and Pagaya takes a fee from each loan. Each incremental loan from the same provider comes without marketing and acquisition costs, and the company's growth strategy involves adding new client partners as well as driving higher engagement with existing partners.
Pagaya already works with a stellar client list of 35 partners that includes Visa (V +0.23%), U.S. Bank (USB +0.26%), and SoFi Technologies (SOFI -0.44%). It has a long pipeline of new customers that are joining the platform, and its goal is to add two to four large clients annually, focusing on large banks and auto dealers.
Pagay isn't the only name in this space, but it has an advantage in its funding model. It has relationships with 170 institutional investors and has the funding before any loans are issued. It's the top issuer of personal ABS loans in the U.S., with a triple-A rating across categories.
Can it keep up high growth?Pagaya has been reporting consistent growth and increasing profits. In the second quarter, total revenue increased 19% year over year to $387 million, and net income increased 172% to $45 million. Volume increased 33%, so there's been no shortage of new loans to approve, so far, despite the high-interest rate environment. Growth was driven by auto loans.
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However, it's highly exposed to the credit industry, which has been troubled by higher borrowing costs. One area where the pressure is showing is in fee revenue less production costs (FRLPC) margin, an industry profitability metric. FRLPC increased 16% over last year in the quarter, but the margin decreased by 0.61 percentage points to 4.2%, based in part on the increased cost of capital.
Pagaya stock isn't for the risk-averse investor, but for those with a high appetite for risk, Pagaya stock looks like a bargain today. At the lower price, it trades at under 14 times trailing 12-month earnings, which is cheap for a high-growth AI stock.
Pagaya v 1. pololetí 2026 zvýšila tržby na 705 mil. USD a snížila základní provozní náklady o 6 % meziročně. Ve 2Q26 zároveň získala financování ve výši 3,7 mld. USD v šesti ABS transakcích.
Key Takeaways Pagaya trades at a 0.89X forward P/S, below the industry average and key competitors.PGY raised $3.7B across six ABS deals in 2Q26 and added 11 investors, bringing its total to 174.Pagaya's 1H26 revenues rose to $705M, while core operating expenses declined 6% y/y. The Pagaya Technologies (PGY - Free Report) stock is currently undervalued in terms of its price/sales (P/S) ratio when compared with peers. While making investment decisions, investors mostly look at a company’s valuation. Specifically, value investors try to find stocks that are either flying under the radar and are compelling buys, or offer up tantalizing discounts compared with fair value.
Such investors sometimes prefer to look at a company’s P/S ratio because this metric considers sales, something that is far harder to manipulate with accounting tricks than earnings. In the case of PGY, which is one of the most compelling fintech companies in today’s market, the stock is currently trading at a forward 12-month P/S ratio of 0.89X, below the industry average of 2.59X.
Also, as you can see in the chart below, PGY’s current P/S ratio is significantly lower than its high over the past three years, which suggests some level of undervalued trading compared with historical norms.
P/S (F12M)
Image Source: Zacks Investment Research
Pagaya’s valuation also compares favorably to its close competitors, Upstart Holdings (UPST - Free Report) and Virtu Financial, Inc. (VIRT - Free Report) . Upstart is currently trading at a forward 12-month P/S ratio of 1.29X, while Virtu Financial has a P/S (F12M) of 3.22X.
Thus, Pagaya seems like an attractive investment option now if we consider its P/S ratio. Its low valuation reflects that it is currently trading at a discount and, hence, has the potential for significant gains when the market recognizes its true worth.
However, before making any investment decision, it is better to have a look at the company’s fundamentals and growth prospects.
Key Positives of PagayaDiversified Funding Base: A diversified funding base is a key positive for Pagaya. The company continues to broaden its funding base, supporting an upfront model that raises cash before loans are originated. In second-quarter 2026, Pagaya raised $3.7 billion in funding across six asset-backed securities (ABS) transactions, its largest quarterly funding volume to date.
It also added 11 new investors, bringing the total to 174. Further strengthening its funding diversity, Pagaya has entered its first forward flow agreement with Neuberger Specialty Finance for the purchase of up to $700 million of auto loans sourced through its lending network.
Funding channels are becoming more flexible, with 40% of funding now coming through non-prefunded ABS products alongside forward flow and revolving structures. The company has expanded its ALPF receivables facility to $100 million from $65 million. This broader funding base improves execution visibility as network volume scales across personal loans, auto and point of sale (POS).
Multi-Product Expansion: Multi-product expansion is expected to deepen Pagaya’s partner economics. New products are widening partner use cases and raising revenues per application. In first-half 2026, revenues from fees increased as partner adoption broadened. The company's product-led playbook is being applied across personal loans, auto and POS, supported by pre-built integrations that can shorten partner onboarding.
In personal loans, the Affiliate Optimizer engine contributed more than $1 billion of network volume in the second quarter. Experian Activate has been adopted by key partners, with additional partners targeted in the second half of 2026, including regional banks.
In auto, Pagaya is using dynamic offer optimization to structure down payment, annual percentage rate, loan-to-value and term in real time at the dealer point of sale. Seven new partners were onboarded over the last six months across personal loans, auto and POS, supporting broader penetration beyond the company's flagship product.
Improving Operating Leverage: Improving operating leverage and cost efficiency has been driving Pagaya’s earnings growth of late. Across 2025, monetization and efficiency strengthened. The company’s revenue growth outpaced expense growth, allowing margins to improve and turning prior losses into positive net income.
In 2025, adjusted EBITDA rose sharply, showing that the platform scaled efficiently as utilization increased. The company’s profitability streak continued in 2026, with spending in check. In the first half of this year, total revenues increased to $705 million from $616.4 million in the year-ago period, while operating expenses rose only slightly to $519.2 million from $512.2 million. Core operating expenses declined 6% year over year and were 31% of fee revenue less production costs, a record low.
Management noted that core OpEx has been broadly flat for about 18 months, even as revenues and profits scaled. Management expects 2026 GAAP net income of $155-$180 million and adjusted EBITDA of $460-$490 million, reflecting confidence in further scale without a major expense ramp.
Analyzing PGY’s Price PerformancePagaya has performed remarkably well this year. Over the past six months, the PGY stock has gained 49.1%, outperforming the industry’s 4.6% rally. The company’s performance has also been better than that of Upstart and Virtu Financial.
Upstart shares have lost 9.8% and the VIRT stock has appreciated 22.2% in the past six months.
6-Month Price Performance
Image Source: Zacks Investment Research
Analyst Sentiments on Pagaya StockAnalysts do not seem too optimistic regarding PGY’s earnings growth potential. Over the past 30 days, the Zacks Consensus Estimate for Pagaya’s 2026 and 2027 earnings has been unchanged at $3.72 and $4.13, respectively.
Earnings Estimate Revision
Image Source: Zacks Investment Research
How to Approach the PGY Stock?Pagaya’s discounted valuation, expanding funding base, multi-product growth and improving operating leverage provide a solid foundation for long-term upside. The company is scaling revenues without a comparable increase in expenses, while greater use of forward-flow and other diversified funding structures should improve funding flexibility as network volume grows.
However, the current valuation discount alone may not be enough to support a more bullish stance. Funding costs and tighter ABS economics are pressuring revenue generated per unit of network volume, with fee revenue less production costs as a percentage of network volume declining year over year in the first half of 2026.
At the same time, earnings estimates for 2026 and 2027 have been unchanged over the past month, indicating a lack of near-term upward revisions that could provide another catalyst for the shares.
Therefore, Pagaya’s improving profitability, scalable platform and attractive valuation support retaining the stock, but margin pressures and muted earnings-estimate revisions argue against becoming too aggressive at current levels. Investors should prefer to wait for clearer evidence of stabilization in capital-markets economics or stronger earnings-revision momentum before building fresh positions.
At present, Pagaya carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Pagaya Technologies uzavřela s Neuberger Specialty Finance dohodu, která umožní nákup až 700 milionů USD autopůjček z její partnerské sítě. Objem už dosáhl ročního tempa 4,8 miliardy USD a tvořil přes 75 % meziročního růstu objemu.
Key Takeaways Pagaya's Neuberger deal provides up to $700M to purchase auto loans sourced through its partner network.Auto volume hit a $4.8B annualized run rate and drove more than 75% of Pagaya's y/y volume growth.Forward flow capital could diversify PGY's funding mix and support higher originations across its network. Pagaya Technologies (PGY - Free Report) is adding more funding muscle behind its fast-growing auto business through a new forward flow agreement with Neuberger Specialty Finance. The arrangement allows Neuberger to purchase up to $700 million of auto loans sourced through Pagaya’s lending-partner network, giving the latter additional capacity to support a segment that is becoming increasingly important to its growth story.
The importance is already visible in the numbers. Auto network volume reached an annualized run rate of $4.8 billion last quarter and contributed more than 75% of Pagaya’s year-over-year network volume growth. With auto carrying a large share of recent expansion, having committed capital in place could help Pagaya sustain momentum by giving lending partners greater confidence to originate more loans through its platform.
The agreement also strengthens the quality of Pagaya’s funding mix. Forward flow capital can complement securitizations and other capital-markets channels by offering a more consistent source of institutional demand. That could give Pagaya greater flexibility to support volumes across different market conditions and reduce its dependence on any single funding avenue.
The bigger opportunity lies in what additional capital can unlock across the network. Greater funding availability can help existing partners scale originations, support higher borrower approvals and improve Pagaya’s ability to attract new lenders. Rising loan volumes should also create more fee-generating opportunities and improve utilization of the company’s AI-driven underwriting infrastructure.
The key takeaway is that the Neuberger agreement adds capacity at a time when Pagaya’s auto business is already showing strong traction. The real upside will depend on how effectively PGY converts this funding into sustained network growth, deeper partner engagement and better operating leverage. If auto continues to scale, this deal could become a meaningful support to Pagaya’s broader growth trajectory.
Comparing PGY’s Business Model With PeersLike PGY, Upstart Holdings, Inc. (UPST - Free Report) is an AI-based lending platform that aspires to become capital-light but often holds loans on its balance sheet temporarily. The company’s core business model involves finding financing for loans after its network of bank and institutional partners originates them.
Upstart partner banks can finance the loan by keeping it on their balance sheet. The bank can sell the whole loan on Upstart’s platform or use forward flow agreements from institutions that commit to buying a specific volume or type of loan originated on the Upstart platform in the future.
Upstart also uses securitization, wherein pools of loans are bundled together and sold as ABS to institutional investors. However, the firm frequently reverts to a balance-sheet-heavy model, especially in tight liquidity markets, making it more volatile and exposed to macro cycles.
Another close competitor of PGY is LendingTree (TREE - Free Report) . But unlike PGY, LendingTree is a marketplace platform, not a lender. It matches consumers with financial product providers like mortgages, personal loans, credit cards and insurance.
LendingTree does not underwrite, originate or hold loans. Hence, its balance sheet is not credit-heavy. TREE’s balance sheet is detached from revenue generation. The company is primarily structured to support a fee-based digital marketplace, not balance sheet lending.
PGY’s Price Performance, Valuation & Estimate AnalysisInvestors have been bullish on the Pagaya stock, which has appreciated 91.9% in the past six months, outperforming the industry’s growth.
Image Source: Zacks Investment Research
The stock is currently trading at a 12-month forward price-to-sales of 1.05X, which is below the industry average of 2.59X.
Image Source: Zacks Investment Research
Over the past 30 days, the Zacks Consensus Estimate for PGY’s 2026 and 2027 earnings has been unchanged at $3.72 and $4.13, respectively. The consensus estimate indicates 12.4% and 11% year-over-year growth for 2026 and 2027, respectively.
Image Source: Zacks Investment Research
Currently, Pagaya carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Pagaya ve 2. čtvrtletí 2026 zvýšila síťový objem na rekordních 3,5 mld. USD, meziročně o 33 %, a tržby a ostatní výnosy vzrostly o 19 % na 387 mil. USD. Zvedla také výhled čistého zisku pro rok 2026 na 155–180 mil. USD.
Key Takeaways Pagaya's 2Q26 network volume hit a record $3.5B, up 33% y/y, while revenues and other income rose 19%.PGY's Auto volumes surged about 140%, driving more than 75% of total network volume growth.Pagaya raised its 2026 net income outlook to $155-$180M and sees network volume at $12.5-$13.25B. Pagaya Technologies (PGY - Free Report) is gaining momentum as its artificial intelligence (AI)-driven credit platform handles more lending activity across a growing partner network. In the second quarter of 2026, network volume reached a record $3.5 billion, up 33% year over year, while revenues and other income rose 19% to $387 million. The rally reflects stronger application flow, wider product adoption and deeper use of Pagaya’s technology across lending channels.
Auto lending remains a major driver. Pagaya’s Auto network volume reached a $4.8-billion annualized run rate, contributing more than 75% to the year-over-year increase in total network volume. Auto volume surged roughly 140%, while the company’s Affiliate Optimizer Engine generated more than $1 billion in network volume in the quarter. These offerings are helping Pagaya broaden the sources feeding its platform.
The company is also expanding into new credit categories. In June, Pagaya extended its partnership with Upgrade to support the lender’s Flex Pay buy-now-pay-later offering. This expands Pagaya’s role beyond personal loans and highlights its ability to deepen existing partnerships while entering adjacent lending markets.
Funding capacity is scaling alongside loan activity. Pagaya raised $3.7 billion through six asset-backed securities (ABS) transactions in the second quarter and expanded its institutional-investor network to 174 participants. It also completed large auto and personal-loan securitizations in July. However, higher capital costs remain a watch point, with fee revenue less production costs as a percentage of network volume falling year over year.
Importantly, stronger volumes are translating into higher profits. Adjusted EBITDA rose 43% to $124 million, while GAAP net income increased to $45 million. Pagaya also raised its 2026 net income outlook to $155-$180 million and expects network volume of $12.5-$13.25 billion. Continued growth in Auto, new products and partner penetration could keep the AI lending flywheel moving, though funding costs and credit discipline remain key variables to watch.
Comparing PGY’s Business Model With PeersLike PGY, Upstart Holdings, Inc. (UPST - Free Report) is an AI-based lending platform that aspires to become capital-light but often holds loans on its balance sheet temporarily. Its core business model involves finding financing for loans after its network of bank and institutional partners originates them.
Upstart partner banks can finance the loan by keeping it on their balance sheet. The bank can sell the whole loan on Upstart’s platform or use forward flow agreements from institutions that commit to buying a specific volume or type of loan originated on the Upstart platform in the future.
Upstart also uses securitization, wherein pools of loans are bundled together and sold as ABS to institutional investors. However, the firm frequently reverts to a balance-sheet-heavy model, especially in tight liquidity markets, making it more volatile and exposed to macro cycles.
Another close competitor of PGY is LendingTree (TREE - Free Report) . But unlike PGY, LendingTree is a marketplace platform, not a lender. It matches consumers with financial product providers like mortgages, personal loans, credit cards and insurance.
LendingTree does not underwrite, originate or hold loans. Hence, its balance sheet is not credit-heavy. TREE’s balance sheet is detached from revenue generation. The company is primarily structured to support a fee-based digital marketplace, not balance sheet lending.
PGY’s Price Performance, Valuation & Estimate AnalysisInvestors have been bullish on the Pagaya stock, which has appreciated 95.5% in the past six months, outperforming the industry’s growth.
Image Source: Zacks Investment Research
The PGY stock is currently trading at a 12-month forward price-to-sales of 1.10X, which is below the industry average of 2.59X over the last three years.
Image Source: Zacks Investment Research
Over the past 30 days, the Zacks Consensus Estimate for PGY’s 2026 and 2027 earnings has been unchanged at $3.72 and $4.13, respectively. The consensus estimate indicates 12.4% and 11% year-over-year growth for 2026 and 2027, respectively.
Image Source: Zacks Investment Research
Currently, Pagaya sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Sprout Social, Pagaya Technologies a Ooma patří mezi malé technologické firmy s očekávaným růstem zisku na akcii nad 30 %. Článek je vyzdvihuje jako levné tituly těžící z AI a komunikačních trendů.
Software’s Second Act: AI Shifts From Threat to Catalyst In my opinion, software stocks are resurfacing after a difficult 2026 because investors may have become too pessimistic about AI’s disruptive impact. I have seen concerns that generative AI could undermine traditional SaaS models, reduce per-seat pricing, and make customized software dramatically cheaper to build. Those fears drove significant multiple compression, particularly among small-cap software stocks.
More recently, I have seen encouraging evidence that AI may be an accelerant rather than an existential threat. I was very impressed with the earnings results from Snowflake (SNOW) and the possibility that the positive trend will impact other software stocks. Snowflake reported product revenue growth of 37% YoY, while remaining performance obligations increased 30%. Management also raised its full-year outlook and indicated that AI products contributed meaningfully to its recent growth acceleration. ServiceNow (NOW) has similarly reported strong adoption of AI-enabled products.
In my view, this creates an attractive setup for smaller software companies. If earnings continue to validate AI monetization, the AI trade could broaden from companies building the infrastructure to software companies monetizing it.
Small-Cap Tech Stocks Quietly Outperform Big Tech Despite AI concentration concerns and shifting interest rate expectations, the stock market has remained resilient as investor confidence improves. In the latest AAII Sentiment Survey, bulls retook the lead, with expectations stock prices will rise in the next six months up 6.8 percentage points. According to its August Asset Allocation Survey, equities reached 71.1% of investor portfolios, the highest level since late last year.
Bullish Investor Sentiment Regains The Upper Hand (Week Ending 9/2/2026)
Bloomberg
Tech stocks in particular have been able to endure volatility in the past month to post positive returns, lifted by blowout earnings from software giants like Salesforce (CRM) and Palantir (PLTR) and rising sector earnings expectations.
However, investors suffering from AI mega-cap exhaustion could consider select small-cap tech stocks whose earnings are not directly dependent on the hyperscaler capex cycle. In addition, these same stocks offer growth potential and stand to benefit from AI and tech-driven secular demand trends.
Although momentum has recently slowed, small-cap tech stocks have outperformed larger peers in the past year, and are trading at more attractive valuations. After gaining more than 60% in the past twelve months, Invesco’s small-cap technology ETF (PSCT) is trading at 18.3x forward earnings, a 29% discount to the S&P 500 Technology Sector (XLK), which has a forward P/E of 25.9x.
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Although small caps can offer significant upside potential, investors should assess their risk tolerance. Due to high volatility and risk, small caps are not for everyone. When any investment research firm issues a small-cap recommendation, for example, the stock can surge quickly due to low liquidity. This makes it even more crucial to ensure small-cap tech stocks have strong fundamentals, and Seeking Alpha’s quantitative tools can help investors achieve this objective.
How I Chose Top Small-Cap Tech Stocks Using Seeking Alpha’s Stock Screener, I filtered for small-cap tech stocks with Strong Buy Quant Ratings and solid Growth and Revision Factor Grades. I then narrowed the list by filtering for stocks with forward EPS growth rates above 30%. My small-cap tech basket includes two AI software names and a cloud communications company, showcasing accelerating momentum and bullish revisions, while trading at attractive earnings multiples. Moreover, their underlying businesses have little direct dependence on the hyperscaler capex cycle that has fueled the AI infrastructure boom.
1. Sprout Social, Inc. (SPT) Market Capitalization: $688.93M
Quant Rating: Strong Buy
Sector: Information Technology
Industry: Application Software
Quant Sector Ranking (as of 9/4/2026): 31 out of 530
Quant Industry Ranking (as of 9/4/2026): 5 out of 166
A provider of social media management software, Sprout Social’s revenue has continued to climb as the company expands the capabilities of its agentic AI offerings and business intelligence solutions. Sprout’s revenue grew by a CAGR of 25% over the past five years, and is projected to reach $494.61M in FY 2026. Exceptional price performance and earnings revisions helped drive the stock’s quant rating into Strong Buy territory in August.
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Broadening adoption among higher-value customers and increased renewal rates helped lift Sprout’s Q2 2026 revenue by 11% YoY. The number of customers generating at least $50K in ARR grew 16% YoY to 2,127, while customers with ARR above $30K now account for 60.1% of total subscription revenue. Total remaining performance obligations (RPO) surged 16% YoY, and multi-year deals now represent about half of Sprout’s contract mix.
Sprout Social Investor Presentation
Sprout raised its Q4 exit operating margin from 15% to 17%, citing a headcount reduction that is expected to yield $50M in annualized cost savings. The results contributed to an improving outlook, backed by 9 upward earnings revisions to no downward revisions in the last 90 days. Forward EPS growth of 45.49% underpins a solid factor grade, alongside surging operating cash flow.
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Trading at only 10x earnings vs. the sector’s 22x, Sprout continues to look attractively priced, in my opinion, even with the recent momentum, supporting an A+ Valuation Grade. Meanwhile, forward PEG - a crucial valuation metric that combines P/E and growth - sits at a whopping 71% discount to the sector. Long-term earnings visibility and an attractive valuation make Sprout a strong AI-fueled small cap to consider.
Quant Sector Ranking (as of 9/4/2026): 16 out of 530
Quant Industry Ranking (as of 9/4/2026): 1 out of 166
The top quant-rated Application Software stock, Pagaya offers AI-powered products to help lenders and institutional partners make better loan decisions. PGY soared after a huge Q2 earnings beat, and is now up more than 40% in the past three months for an outstanding Momentum Grade.
As the chart below illustrates, the stock’s accelerating price performance and bullish EPS revisions led to a dramatic turnaround in its Quant Rating over the past six months.
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The company achieved record network volume of $3.5B in Q2 2026, up 33% YoY. The network expansion helped drive revenue up by 19% to $387M, while adjusted EBITDA jumped 43%, demonstrating strong operating leverage as the business scales.
Pagaya Investor Presentation
Based on record EPS and strong visibility on the remainder of 2026, PGY raised full-year net income guidance by 25%. Anchored in a forward EPS growth rate of 70.94%, PGY showcases an A+ Growth Grade. PGY’s long-term EPS growth rate (3-5Y CAGR) of 139% is especially impressive when compared to the sector median of 19%.
The long-term EPS growth rate is a key element in the stock’s attractive valuation framework, with forward PEG at a 96% discount to the sector. PGY is also trading at a significant sector discount based on a forward P/E ratio of 6x, in addition to attractive EV/EBITDA, price/sales, and price/cash flow multiples.
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While I strongly believe PGY offers solid potential upside, investors should also weigh its elevated risk profile. PGY’s 24M beta of 2.52 indicates the stock has been substantially more volatile than the broader market. PGY also carries a short interest of 15.87%. However, when you consider the AI fintech’s strong fundamentals, exceptional growth, and attractive valuation, the reward could outweigh the risk.
3. Ooma, Inc. (OOMA) Market Capitalization: $642.36M
Quant Rating: Strong Buy
Sector: Information Technology
Industry: Application Software
Quant Sector Ranking (as of 9/4/2026): 21 out of 530
Quant Industry Ranking (as of 9/4/2026): 3 out of 166
A provider of cloud-based communication technologies, including telephony, messaging, and video solutions, OOMA has crushed the Russell 2000 in the past year, driving an A+ Momentum Grade. The company is targeting a fast-growing Unified Communications as a Service (UCaaS) and equipment market, which OOMA projects could reach $34.4B by 2029.
OOMA vs. Russell 2000 (IWM): 1Y Price Return
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Rapid growth in core business subscription and services drove Q2 FY27 revenue up by 25% YoY to $83.2 million, while EBITDA jumped by 74%. OOMA management said it expects profitable growth to continue as it expands AirDial, its analog phone line replacement solution, and integrates the FluentStream and Phone.com acquisitions. The Q2 surge in EBITDA has contributed to a solid Growth Grade, underpinned by a forward EPS growth rate of 32.02%.
Ooma Investor Presentation
Showcasing strong earnings visibility over the next three years, OOMA’s EPS and revenue outlook have increasingly improved. OOMA has seen a string of bullish EPS revisions from sell-side analysts in the past three months for a top-notch factor grade.
Seeking Alpha
Despite incredible price performance, the stock’s forward PEG represents a 41% discount to the sector, although elevated GAAP P/E metrics have weighed on the valuation grade. OOMA wraps up my small-cap tech picks, a basket of stocks showcasing strong forward earnings growth, solid EPS revisions, and accelerating momentum.
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Pagaya Technologies (PGY) za posledních šest měsíců vyskočila o 93,8 % a ve 2. čtvrtletí zvýšila objem transakcí o 33 %, tržby o 19 % a upravenou EBITDA o 43 %.
Firma zároveň zvýšila výhled pro rok 2026.
Key Takeaways Pagaya shares jumped 93.8% in six months, outperforming the broader market and industry peers.PGY's Q2 network volume rose 33% y/y, revenues climbed 19% and adjusted EBITDA grew 43%.Pagaya raised its 2026 outlook as funding, operating leverage and multi-product expansion strengthened. Pagaya Technologies (PGY - Free Report) shares have skyrocketed 93.8% in the past six months, outperforming the S&P 500 Index and the industry it belongs to.
If we compare the company’s price performance to its close peers, LendingTree (TREE - Free Report) and Upstart Holdings (UPST - Free Report) , it appears that the PGY stock has fared much better than both these firms. Shares of LendingTree have lost 23.3%, whereas Upstart has gained 2.8% in the past six months.
6-Month Price Performance
Image Source: Zacks Investment Research
In the first two months of this year, PGY shares came under significant pressure largely due to concerns over slowing near-term growth. Investors reacted negatively to the company’s fourth-quarter 2025 results. Although the company recorded its fourth straight quarter of positive GAAP net income in the three months ended Dec. 31, 2025 (as against negative earnings in the prior years), management issued softer-than-expected guidance for early 2026. Along with this, management’s decision to tighten underwriting standards and reduce exposure to higher-risk credit segments weakened investor sentiments, sending the PGY stock lower.
However, from March, the company’s shares staged a strong rebound, as subsequent results demonstrated that the slowdown was temporary and that profitability remained robust. PGY’s first-quarter adjusted EBITDA increased 18% year over year, prompting the company to raise its full-year net income guidance.
The momentum accelerated in the second quarter, with network volume growing 33%, revenues rising 19% and adjusted EBITDA jumping 43%. Management once again raised its 2026 earnings outlook. Investor confidence was also supported by strong capital-market execution, including several upsized, AAA-rated asset-backed securities (ABS) transactions, record funding activity, new lending partners and expansion of existing partnerships.
Stronger-than-expected operating growth, rising profitability, improved credit discipline and continued access to institutional funding together helped drive the sharp recovery in PGY shares between March and August.
Given the recent strength in price, investors might be tempted to invest in the stock now. However, before making any investment decision, it is important to examine the company’s fundamentals and growth prospects to see if it has upside potential left.
Key Fundamental Strengths of PGYDiversified Funding Base: A diversified funding base is a key positive for Pagaya. The company continues to broaden its funding base, supporting an upfront model that raises cash before loans are originated. In second-quarter 2026, Pagaya raised $3.7 billion in funding across six ABS transactions, its largest quarterly funding volume to date. It also added 11 new investors, bringing the total to 174.
Funding channels are becoming more flexible, with 40% of funding now coming through non-prefunded ABS products alongside forward flow and revolving structures.
The company has expanded its accrued loan purchasing fee receivables facility to $100 million from $65 million. This broader funding base improves execution visibility as network volume scales across personal loans, auto and point of sale (POS).
Multi-Product Expansion: Multi-product expansion is expected to deepen Pagaya’s partner economics. New products are widening partner use cases and raising revenues per application. In first-half 2026, revenues from fees increased as partner adoption broadened. The company's product-led playbook is being applied across personal loans, auto and POS, supported by pre-built integrations that can shorten partner onboarding.
In personal loans, the Affiliate Optimizer engine contributed more than $1 billion of network volume in the second quarter. Experian Activate has been adopted by key partners, with additional partners targeted in the second half of 2026, including regional banks.
In auto, Pagaya is using dynamic offer optimization to structure down payment, annual percentage rate (APR), loan-to-value and term in real time at the dealer point of sale. Seven new partners were onboarded over the last six months across personal loans, auto and POS, supporting broader penetration beyond the company's flagship product.
Improving Operating Leverage: Improving operating leverage and cost efficiency has been driving Pagaya’s earnings growth of late. Across 2025, monetization and efficiency strengthened. The company’s revenue growth outpaced expense growth, allowing margins to improve and turning prior losses into positive net income.
In 2025, adjusted EBITDA rose sharply, showing that the platform scaled efficiently as utilization increased. The company’s profitability streak continued in 2026, with spending in check. In the first half of this year, total revenues increased to $705 million from $616.4 million in the year-ago period, while operating expenses rose only slightly to $519.2 million from $512.2 million. Core operating expenses declined 6% year over year and were 31% of fee revenue less production costs, a record low.
Management noted that core OpEx has been broadly flat for about 18 months, even as revenues and profits scaled. Management expects 2026 GAAP net income of $155-$180 million and adjusted EBITDA of $460-$490 million, reflecting confidence in further scale without a major expense ramp.
Analyzing Pagaya’s ValuationIn terms of valuation, the PGY stock looks inexpensive compared with the industry at large. The stock is trading at a forward 12-month price/sales (P/S) ratio of 1.13X, below the industry average of 2.59X over the last three years.
Price-to-Sales F12M
Image Source: Zacks Investment Research
While Pagaya is trading at a discount compared with Upstart, the stock appears to be trading at a premium compared with TREE. LendingTree has a P/S (F12M) ratio of 0.30X, while Upstart has a P/S ratio of 1.65X.
How to Approach the Pagaya Stock Now?Given its robust performance in the last six months, a resilient business model and capital-efficient funding strategy, PGY continues to stand out in the fintech space. Its AI-driven platform, diversified revenue streams and reliance on forward flow agreements shield it from market volatility and credit risks.
Analysts seem optimistic regarding PGY’s earnings growth potential. Over the past 30 days, the Zacks Consensus Estimate for Pagaya’s 2026 and 2027 earnings has been revised upward to $3.72 and $4.13 per share, respectively. The estimated numbers indicate year-over-year growth rates of 12.4% and 11% for 2026 and 2027, respectively.
Earnings Estimate Revision
Image Source: Zacks Investment Research
Thus, with accelerating earnings estimates, along with bullish analyst sentiments, PGY is well-positioned for continued growth. Moreover, the stock trades at a discount relative to the industry at large, making its valuation attractive. For investors seeking exposure to a high-growth, tech-enabled lender with solid fundamentals, the PGY stock is a compelling buy.
At present, Pagaya sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Pagaya v 1. pololetí zvýšila síťový objem o 22 % meziročně na rekordních 6,16 mld. USD, což podpořilo růst výnosů a ostatních příjmů o 14,4 % na 705 mil. USD.
Key Takeaways Pagaya's 1H26 network volume rose 22% y/y to a record $6.16B, lifting total revenues 14.4%.Auto volumes surged about 140% in Q2, supported by nearly 30,000 dealerships and better decisioning tools.Pagaya expects 2026 network volume of $12.5-$13.25B, signaling continued 2H26 momentum. Pagaya Technologies Ltd.’s (PGY - Free Report) network volume, a key driver of its top line, has maintained strong momentum in the first half of 2026. Supported by strength in its Auto and Personal Loan businesses, along with a focus on prudent underwriting, PGY’s network volume increased 22% year over year to a record $6.16 billion in the first six months of this year. Fee revenue less production costs (FRLPC) rose 10.9% to $268.4 million while total revenues and other income increased 14.4% to $705 million, underscoring the positive impact of higher transaction volumes on Pagaya’s revenue base.
Auto has become a key growth driver for Pagaya. In the second quarter of this year, Auto volumes surged about 140% year over year, reaching a $4.8-billion annualized run rate. The company’s connections with nearly 30,000 dealerships, along with better pricing and decisioning tools, are helping lending partners make more competitive offers and improve conversion rates. Higher conversions, in turn, encourage dealers to send more applications through Pagaya’s network, supporting further volume growth.
Beyond Auto, Pagaya’s product-led strategy is broadening the sources of network volume. Its Affiliate Optimizer Engine generated more than $1 billion in second-quarter volume, while Direct Marketing Engine programs are expected to reach $500 million by the year-end. The company is also expanding in point-of-sale (POS) financing and adding new lending partners, which should further broaden its volume base.
Strong access to capital markets is another positive. Pagaya raised a record $3.7 billion through six asset-backed securities (ABS) transactions in the second quarter, while its institutional investor base grew to 174 investors. This funding support, combined with disciplined underwriting and stable credit performance, should help the company handle higher transaction volumes without materially relaxing credit standards.
Looking ahead, FRLPC growth may remain somewhat tempered in the near term by the mix of newer partners and products. Nonetheless, continued expansion in Auto, a healthy partner onboarding pipeline and strong funding availability should keep network volume on an upward trajectory and support top-line growth. Pagaya expects third-quarter 2026 network volume of $3.43-$3.63 billion and full-year volume of $12.5-$13.25 billion, pointing to continued momentum in the second half. Third-quarter and full-year total revenues and other income are projected at $370-$390 million and $1.43-$1.53 billion, respectively.
Comparing PGY’s Business Model With PeersLike PGY, Upstart Holdings, Inc. (UPST - Free Report) is an AI-based lending platform that aspires to become capital-light but often holds loans on its balance sheet temporarily. Its core business model involves finding financing for loans after its network of bank and institutional partners originates them.
Upstart partner banks can finance the loan by keeping it on their balance sheet. The bank can sell the whole loan on Upstart’s platform or use forward flow agreements from institutions that commit to buying a specific volume or type of loan originated on the Upstart platform in the future.
Upstart also uses securitization, wherein pools of loans are bundled together and sold as ABS to institutional investors. However, the firm frequently reverts to a balance-sheet-heavy model, especially in tight liquidity markets, making it more volatile and exposed to macro cycles.
Another close competitor of PGY is LendingTree (TREE - Free Report) . But unlike PGY, LendingTree is a marketplace platform, not a lender. It matches consumers with financial product providers like mortgages, personal loans, credit cards and insurance.
LendingTree does not underwrite, originate or hold loans. Hence, its balance sheet is not credit-heavy. TREE’s balance sheet is detached from revenue generation. The company is primarily structured to support a fee-based digital marketplace, not balance sheet lending.
PGY’s Price Performance, Valuation & Estimate AnalysisInvestors have been bullish on the PGY stock, which has appreciated 70.9% in the past six months against the industry’s 0.5% decline.
Image Source: Zacks Investment Research
Pagaya stock is currently trading at a 12-month forward price-to-sales (P/S) of 1.05X, which is below the industry average of 2.58X over the last three years.
Image Source: Zacks Investment Research
Over the past 30 days, the Zacks Consensus Estimate for PGY’s 2026 and 2027 earnings has moved higher to $3.72 and $4.13, respectively. The consensus estimates indicate 12.4% and 11% year-over-year growth for 2026 and 2027, respectively.
Image Source: Zacks Investment Research
Currently, Pagaya sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Pagaya Technologies očekává, že do konce roku dosáhne ročního tempa čistého zisku podle standardu GAAP ve výši 200 milionů USD. Ve druhém čtvrtletí její aplikace přesáhly 300 miliard USD a firma má asi 35 úvěrových partnerů.
This AI Lender Has Big Upside Potential—And Big Risks Pagaya Technologies NASDAQ: PGY CFO Jonathan Dobres outlined the company’s growth strategy, funding model and profitability trajectory at the 46th Annual Canaccord Growth Conference, emphasizing expansion with existing lending partners as well as new partner additions.
Dobres described Pagaya as a technology platform that connects lending partners with institutional capital, using an AI-based decisioning engine to evaluate loans that are funded primarily off balance sheet. The company currently operates with about 35 lending partners across personal loans, auto lending and point-of-sale financing, with approximately $14 billion in annualized consumer loan volume, he said.
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The Next Market Leaders? 5 Growth Stocks to Watch in 2026Pagaya reported net income of $45 million in the prior quarter, according to Dobres, and has increased net income in each of the past six quarters since becoming profitable. He said the company expects to exit the year with a $200 million GAAP net income run rate.
Growth Through Products and Partner Expansion Dobres said Pagaya’s growth is driven less by widening its credit criteria or increasing consumer marketing spending and more by adding lending partners, launching products and gaining access to a larger portion of partners’ application funnels.
5 Small-Cap Stocks With Impressive Growth and Upside PotentialEarlier in the year, Pagaya reduced or largely eliminated originations in its two riskiest credit tiers after identifying those lower-income borrower groups as potentially more exposed if consumer conditions weakened. Despite that step, the company continued to grow by accessing more applications through its lending partners, Dobres said.
In the second quarter, Pagaya’s total dollar value of applications exceeded $300 billion for the first time. Dobres said product-led growth was a contributor to the company’s 140% year-over-year auto growth.
In auto lending, Pagaya previously received applications that a partner had declined. The company now works with partners to identify borrowers whom the lender may technically approve but whose original offers may be less likely to convert. Pagaya can offer those borrowers different loan terms, potentially resulting in a funded loan under the partner’s name while allowing the partner to retain customer contact, servicing revenue and dealer relationships.
Dobres said this higher-funnel access has supported stronger borrower and collateral characteristics. In personal lending, he said Pagaya’s average borrower has about $120,000 in income and a FICO score in the 670-to-680 range. In auto lending, the average vehicle at loan inception is now about three years old with 30,000 miles, compared with vehicles that were roughly five to six years old with 60,000 miles two years earlier.
Pagaya has added five partners so far this year and expects to add three more before year-end, including two regional banks, Dobres said. New partners may take roughly 12 months to reach maturity, as integrations are completed and the company evaluates how its models perform with the new lending relationships.
Funding Mix and Institutional Demand On funding, Dobres said Pagaya’s current annualized funded-volume run rate is approximately $14 billion. Pre-funded securitizations account for about 60% of the company’s funding and provide roughly three to five months of visibility into future funding, he said.
Pagaya has more than 175 institutional investors with which it regularly engages, including asset managers, insurers and pension funds, according to Dobres. Over the prior three weeks, the company completed about $2 billion of oversubscribed securitizations, he said.
The company is also expanding its use of forward-flow arrangements, which provide six to 18 months of funding visibility, and longer-term revolving structures. Dobres said Pagaya is pursuing 12-to-24-month committed facilities in which it invests capital alongside banks and asset managers. While Pagaya may initially provide 3% to 5% of capital in such arrangements, the capital can be redeployed as the structure revolves over time.
“What we care about is diversity and commitment,” Dobres said, referring to long-term funding visibility.
Margins, Operating Leverage and Balance Sheet Dobres said Pagaya’s fee revenue less production costs, or FRLPC, reached a record level in the latest quarter. The company expects FRLPC to remain in a 4% to 5% range as a percentage of network volume, though it expects to operate at the lower end of that range for the rest of the year.
That lower-end positioning reflects the addition of newer partners and products, which initially generate lower margins before scaling, as well as the effect of higher benchmark rates on funding-side contributions, he said.
Still, Dobres said the company’s core operating expenses have remained approximately flat over the last six quarters, supporting operating leverage. He said FRLPC dollars convert to the bottom line at margins of roughly 90%, aided by Pagaya’s limited marketing spending.
Pagaya has about $1 billion in investments on its balance sheet, consisting of risk-retention and discretionary investments in securitization and other funding vehicles, Dobres said. About half of that amount is in equity portions of securitizations, while the other half consists of B and BB bond tranches that produce cash yields in the low- to mid-teens.
Dobres said the bond tranches have never missed a payment or been impaired in Pagaya’s history. The company’s net investment as a percentage of volume was about 2.4% over the last 12 months, he added.
About Pagaya Technologies (NASDAQ:PGY)Pagaya Technologies is a financial technology company that applies artificial intelligence and machine learning to the credit and asset management industries. Through its proprietary data-driven platform, Pagaya analyzes vast datasets from consumer credit portfolios to build predictive risk models, enabling institutional investors to gain access to alternative credit products. The company’s solutions streamline underwriting, optimize portfolio construction and facilitate the efficient securitization of consumer loans, credit card receivables and other asset classes.
Founded in 2016 and headquartered in New York, Pagaya has expanded its operations to serve financial institutions and asset managers primarily in the United States.
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Pagaya Technologies Ltd. za týden vzrostla o 10,4 % po rekordních tržbách, silnější ziskovosti a lepších provozních trendech. Firma zároveň ve 2. čtvrtletí získala 3,7 miliardy USD v šesti ABS transakcích.
Key Takeaways Pagaya gained 10.4% in a week after record revenues, stronger earnings and improving operating trends.Pagaya raised $3.7 billion across six ABS transactions and added 11 investors to its funding network.Higher funding costs, investment losses and partner concentration could limit further gains. Pagaya Technologies Ltd. (PGY - Free Report) shares gained 10.4% in the past week, putting the focus on whether the rebound can extend. The move comes after stronger second-quarter 2026 results and improving operating trends, but a one-week gain alone does not establish a specific catalyst.
The shares have also gained 18.3% in the past four weeks and 59.6% in the past 12 weeks. The broader advance raises a key question: Can improving profitability, deeper funding and partner momentum remain durable enough to support further gains?
3-Month Price Performance
Image Source: Zacks Investment Research
PGY’s Weekly Gain Raises the Sustainability QuestionPGY’s recent price performance is notable because it has occurred alongside firmer business trends. Still, the 10.4% one-week increase should be viewed as part of a larger rebound rather than proof that a particular event will drive the stock higher.
The key test is whether operating progress continues to support earnings. The investment case points to stronger profitability, partner momentum and improving funding depth as supports, while flagging macro, credit and concentration risks.
Pagaya’s Earnings Growth Supports the RallyPagaya reported record second-quarter revenue and other income of $387 million, up 19% year over year, while GAAP net income reached $45.3 million. Adjusted earnings per share came in at $1.07, above the Zacks Consensus Estimate of 71 cents.
The beat was not isolated. PGY topped earnings expectations in each of the trailing four quarters, with an average positive surprise of 43.5%.
Earnings Surprise History
Image Source: Zacks Investment Research
Analysts seem optimistic regarding PGY’s earnings growth prospects. The Zacks Consensus Estimate for the company’s 2026 and 2027 earnings increased by 15.2% and 11%, respectively over the past 30 days.
Estimate Revision Trend
Image Source: Zacks Investment Research
PGY’s Funding Depth Could Extend the UpsideFunding remains an important part of the sustainability argument. Pagaya raised a record $3.7 billion across six ABS transactions in the second quarter and added 11 investors, bringing its funding network to 174 investors.
The funding mix is also becoming more flexible, with 40% of funding coming through non-prefunded ABS products, alongside forward-flow and revolving structures. Amongst PGY’s key peers, Affirm Holdings, Inc. (AFRM - Free Report) uses technology, proprietary underwriting and third-party capital to support its pay-over-time platform, while Enova International, Inc. (ENVA - Free Report) operates an online lending platform powered by analytics and machine learning. Both AFRM and ENVA provide context for technology-driven consumer finance.
Pagaya’s Risks Could Limit Further GainsHigher benchmark rates remain a key risk because they can raise funding costs and pressure securitization economics. Pagaya’s FRLPC as a percentage of network volume fell 61 basis points year over year to 4.2% in the second quarter, partly because of tighter ABS pricing tied to higher cost of capital.
Investment volatility and concentration also warrant attention. Pagaya recorded an $80.3 million year-to-date loss on investments in the first half of 2026, while reliance on a limited number of partners creates network volume and revenue concentration risk. If funding costs remain elevated or partner execution weakens, revenue per unit of network volume could face pressure.
PGY’s Strong Rank Meets Mixed Style SignalsThe sustainability case remains constructive but not one-sided. Strong earnings growth, funding depth and partner expansion provide support, while FRLPC pressure and credit, investment and concentration risks could temper the upside.
PGY currently carries a Zacks Rank #1 (Strong Buy), with a Value Score of B, Growth Score of A, Momentum Score of B and VGM Score of A. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Rank is designed to help assess expected stock performance over the next one to three months, while the Style Scores complement it by measuring value, growth and momentum characteristics. These signals are supportive context, but they do not make continued gains certain.
Pagaya ve 2. čtvrtletí překonala odhady zisku i tržeb a výnosy vzrostly na 387 milionů USD. Síťový objem dosáhl rekordu 3,5 miliardy USD, hlavně díky autům, a firma zvýšila výhled čistého zisku podle GAAP na 155–180 milionů USD za celý rok 2026.
Key Takeaways Pagaya beat Q2 EPS and revenue estimates as network volume hit a record $3.5B, up 33% y/y.PGY said that auto drove more than three-quarters of the year-over-year network volume increase.Pagaya raised its 2026 GAAP net income view to $155-$180M while maintaining its underwriting posture. Pagaya Technologies Ltd. (PGY - Free Report) used its second-quarter 2026 earnings call to emphasize accelerating partner-led growth, especially in auto, while maintaining its underwriting posture. Management also raised its full-year GAAP net income guidance after record network volume and profitability.
Non-GAAP earnings per share of $1.07 beat the Zacks Consensus Estimate of $0.71. Total revenues of $387 million surpassed the consensus estimate of $358.2 million.
PGY Auto Flywheel Drives Volume GrowthCEO Gal Krubiner said that Pagaya’s growth reflected its partner-focused strategy, with network volume reaching a record $3.5 billion, up 33% year over year. Auto accounted for more than three-quarters of the year-over-year increase.
President Sanjiv Das said that dynamic offer optimization allows partners to adjust loan amount, APR, down payment and term in real time, helping lenders make more competitive offers at the dealer desk.
A Jefferies analyst asked why auto was accelerating. President Sanjiv Das cited product optimization, closer alignment with market terms and access to application flow that partners previously kept for themselves.
Pagaya Expands Through Partners & ProductsDas said that Pagaya is onboarding about seven partners across personal loans, auto and point of sale, with regional banks gaining importance in the personal-loan pipeline.
Das added that the Affiliate Optimizer product generated more than $1 billion in personal-loan network volume in the second quarter. Pagaya also expects additional personal-loan partners to join Experian Activate and several new partners to go live in the second half.
Krubiner said that the embedded platform is designed to scale products across existing partners with limited incremental investment, allowing new product capabilities to be replicated throughout the network.
PGY Raises Net Income OutlookCFO Jonathan Dobres said that Pagaya raised its full-year GAAP net income guidance by about 25% at the mid-point. The new guidance is $155-$180 million.
For the third quarter, CFO Jonathan Dobres guided network volume of $3.43-$3.63 billion, total revenues and other income to $370-$390 million, adjusted EBITDA to $120-$130 million, and GAAP net income to $42-$52 million.
For 2026, management expects network volume of $12.5-$13.25 billion, revenues of $1.43-$1.53 billion and adjusted EBITDA of $460-$490 million.
Pagaya Defends Underwriting DisciplineA Stephens analyst asked whether faster growth reflected looser underwriting. CEO Krubiner said that the company’s underwriting posture has not changed and attributed growth primarily to new products and deeper partner integration.
President Das said that more than 45% of application flow now comes from non-decline channels as Pagaya moves further up partners’ lending funnels.
Das said that the average personal-loan borrower has about $120,000 of income, a 680 FICO score and a 28% debt-to-income ratio. CFO Jonathan Dobres added that 2025 and 2026 vintages are performing in line with underwriting expectations.
PGY Funding Mix Supports ScaleDas said that Pagaya completed a record $3.7 billion in ABS funding across six transactions, while its last three securitizations were upsized amid investor demand.
CFO Jonathan Dobres said that about 40% of flow now comes from non-prefunded ABS products. The funding mix includes forward flow, committed revolving structures and traditional prefunded ABS.
A Canaccord Genuity analyst asked about forward-flow conditions. CFO Jonathan Dobres said that funding channels are more diversified and committed than before, with forward flow remaining one part of a broader funding strategy.
Pagaya’s Focus After Q2Krubiner kept the strategic focus on extending more products across more partners while preserving operating leverage. Core operating expenses declined 6% year over year even as network volume expanded.
Dobres informed that core operating expenses are already sized for significant growth. Management’s posture coming out of the second quarter centers on scaling the existing platform, maintaining credit discipline and broadening committed funding sources.
PGY Zacks Signals Favor Value & GrowthPGY currently carries a Zacks Rank #3 (Hold), with Value and Growth Scores of A, a Momentum Score of D and a VGM Score of A. The profile combines strong value and growth characteristics with weaker momentum. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Under the Zacks framework, A and B Style Scores are more favorable, while the strongest combinations generally pair those grades with a Zacks Rank #1 or #2 (Buy). PGY’s Zacks Rank can change as earnings estimates are revised after the just-reported results.
Key Takeaways PGY beat Q2 earnings estimates as record revenues and network volume lifted quarterly results.Pagaya posted record $387M in revenues and $3.54B in network volume, led by interest income and auto growth.PGY raised its 2026 outlook for network volume, GAAP net income and adjusted EBITDA. Shares of Pagaya Technologies (PGY - Free Report) have gained almost 19% since the release of its second-quarter 2026 results on July 30. Quarterly adjusted earnings per share of $1.07 comfortably surpassed the Zacks Consensus Estimate of 71 cents. The bottom line improved 67.2% from the prior-year quarter.
Results were aided by record performance across key metrics. The company recorded an improvement in total revenues, which, along with growth in network volumes, primarily supported the results. An increase in expenses hurt the results to some extent.
Net income attributable to Pagaya (GAAP basis) was a record $45.3 million, up significantly from $16.7 million in the prior-year quarter.
PGY’s Revenues Improve, Expenses RiseTotal revenues and other income were a record $387 million, up 18.6% year over year. The increase was driven by a rise in interest income and revenues from fees. A decline in net investment loss also supported the rise. The top line surpassed the Zacks Consensus Estimate of $358.2 million.
Total costs and operating expenses increased 4.2% year over year to $281.2 million. The rise was due to higher production costs.
In the second quarter, network volume was a record $3.54 billion, which grew 33.5% year over year, driven by growth in the company’s auto vertical, while maintaining focus on prudent underwriting.
Revenue from fees less production costs (FRLPC) was a record $146.9 million, which increased 16.4% year over year.
FRLPC as a percentage of network volume contracted by 60 basis points (bps) year over year to 4.2%, driven by asset class mix, new partner and product contributions, and tighter pricing on the asset-backed securities (ABS) transactions reflecting higher cost of capital in light of market conditions.
PGY’s Balance Sheet SolidAs of June 30, 2026, total assets were $1.69 billion, up 9.5% from Dec. 31, 2025.
Long-term debt was $471.9 million and shareholders’ equity was $594.2 million.
In the second quarter, the company raised a record $3.7 billion in ABS funding across six transactions.
PGY Management’s OutlookQ3Management expects network volume of $3.425-$3.625 billion.
Total revenues are expected between $370 million and $390 million.
The adjusted EBITDA is expected to be $120-$130 million and GAAP net income is anticipated to be $42-$52 million.
2026The company raised its 2026 outlook.
Network volume of $12.5-$13.25 billion is expected, changed from the previously mentioned $11.45-$13 billion.
Total revenues are projected to be $1.425-$1.525 billion, changed from the previous $1.4-$1.575 billion.
Management raised its full-year net income guidance as well. It expects GAAP net income of $155-180 million, up from the previously mentioned $110-$160 million. Similarly, adjusted EBITDA is expected to be $460-$490 million, up from the previously stated $420-$460 million.
Our Take on PagayaSecular growth in embedded credit, rising efficiency, diversified funding sources and broader multi-product adoption will likely continue to drive Pagaya’s scalable and profitable expansion in the near term. However, uncertainty around the single-family rental strategy might limit the company’s near-term volumes.
Currently, PGY carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance & Expected Earnings Release of PGY’s PeersLendingTree, Inc. (TREE - Free Report) reported second-quarter 2026 adjusted net income per share of $1.27, which missed the Zacks Consensus Estimate of $1.46. The figure compares favorably with $1.13 in the prior-year quarter.
TREE’s results were affected by a decline in Consumer segment revenues and higher total costs. However, growth in revenues and adjusted EBITDA, along with strong Insurance segment performance, supported the results to some extent.
Upstart Holdings, Inc. (UPST - Free Report) is scheduled to report quarterly results on Aug. 4.
The Zacks Consensus Estimate for UPST’s quarterly earnings has been unchanged at 58 cents over the past week. The figure indicates 61.1% growth from the prior-year quarter’s actual.
Pagaya Technologies Ltd. (NASDAQ:PGY) shares are trading higher Thursday after the company reported second-quarter earnings.
Pagaya shares are climbing with conviction. Why is PGY stock up today? Pagaya Beats Estimates with Strong GrowthPagaya reported adjusted earnings per share of $1.07, beating the consensus estimate of 33 cents. In addition, it reported revenue of $365.63 million, beating the consensus estimate of $356.02 million.
Network volume reached a record $3.5 billion, up 33% year-over-year, driven by growth in the company’s Auto vertical.
Fitch revised Pagaya’s corporate rating outlook to Positive, citing improvements in profitability, leverage, and interest coverage.
“Our record quarter reflects a flywheel that is clearly working: partners are sending more volume, adopting more products, and our network effects compound with every relationship we add,” said Gal Krubiner, CEO and Co-Founder of Pagaya.
Narrows FY GuidancePagaya sees third-quarter revenue of between $370.00 million and $390.00 million, versus the consensus estimate of $394.67 million. Furthermore, it narrowed its fiscal-year revenue guidance from between $1.40 billion and $1.57 billion to between $1.42 billion and $1.52 billion, versus the consensus estimate of $1.47 billion.
Pagaya Shares Race HigherPGY Price Action: At the time of publication, Pagaya shares are trading 11.18% higher at $18.00, according to data from Benzinga Pro.
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Pagaya Technologies (PGY) se obchoduje pod úrovní odvětví i konkurentů na ukazatelích P/S a P/TB, zatímco ziskovost se zlepšuje. Růst nákladů a beze změny odhady zisků ale mohou brzdit krátkodobý růst.
Key Takeaways Pagaya trades below industry and peers on P/S and P/TB metrics despite improving profitability.PGY's AI-powered platform and capital-light funding model support resilience across lending cycles.PGY faces rising production costs, while unchanged earnings estimates may limit near-term upside. Pagaya Technologies (PGY - Free Report) appears attractively valued based on two widely used valuation metrics: price-to-sales (P/S) and price-to-tangible book (P/TB). Value investors often seek companies trading below their intrinsic worth or at a discount to peers, and PGY currently fits that profile.
The stock trades at a forward 12-month P/S ratio of 0.86X, significantly below the industry average of 2.78X. Moreover, as shown in the chart below, PGY’s current forward P/S multiple is well below its three-year peak, indicating that the stock is trading at a discount to its historical valuation.
PGY P/S (F12M)
Image Source: Zacks Investment Research
PGY also looks inexpensive on a tangible book basis. Its trailing 12-month P/TB ratio stands at 2.82X compared with the industry average of 3.99X.
PGY P/TB (TTM)
Image Source: Zacks Investment Research
The company’s valuation remains compelling even when compared with close peers. Upstart Holdings (UPST - Free Report) trades at a forward 12-month P/S ratio of 1.59X, whereas Virtu Financial (VIRT - Free Report) trades at 3.64X, both well above PGY’s 0.86X. Similarly, PGY’s P/TB TTM ratio of 2.82X is lower than Upstart’s 4.05X and Virtu Financial’s 5.59X.
Taken together, these valuation metrics suggest that Pagaya is trading at a meaningful discount relative to both its industry and key peers, leaving room for potential upside if the market reassesses the company’s value.
However, valuation alone does not make a compelling investment case. Investors should also evaluate Pagaya’s underlying fundamentals, earnings trajectory and long-term growth prospects before making an investment decision.
Key Factors Supporting PagayaDiversified AI-Powered Lending Platform: PGY’s core strength has been its resilient and adaptable business model. The company has transformed itself from a personal loan-focused platform into a diversified lending technology company with exposure across personal loans, auto lending and point-of-sale (POS) financing. This broader product mix reduces reliance on any single lending category, making revenue generation more resilient across economic and credit cycles.
At the same time, the company’s proprietary AI-powered technology has strengthened its competitive advantage. Its pre-screen solution enables banks and lenders to identify creditworthy existing customers and extend pre-approved loan offers without requiring a formal application. This not only expands credit access but also helps lending partners increase customer engagement and wallet share while keeping customer acquisition costs low.
Capital-Light Funding Model: Unlike traditional lenders, Pagaya follows an asset-light business model and generally does not retain loans on its balance sheet. Instead, loans originated through its AI-powered network are quickly transferred to institutional investors through asset-backed securities (ABS) and forward flow agreements.
Supported by a network of more than 160 institutional funding partners, this funding model provides a diversified and dependable source of capital while reducing reliance on public securitization markets.
By keeping credit exposure low and limiting balance-sheet risk, Pagaya has maintained financial flexibility and liquidity even during periods of elevated interest rates and volatile capital markets.
Improving Profitability: Pagaya has been translating strong revenue growth into improving profitability through higher operating leverage and disciplined cost management. As transaction volumes and monetization increased in 2025, revenues grew faster than operating expenses, driving margin expansion, a sharp increase in adjusted EBITDA and a return to sustained GAAP profitability.
This momentum continued into the first quarter of 2026, supported by continued expense discipline and solid performance across the personal loan and auto lending businesses. Reflecting confidence in its scalable platform and profitability trajectory, management expects 2026 GAAP net income of $110-$160 million.
Analyzing PGY’s Price PerformanceDespite improving fundamentals, PGY shares have declined 20.5% year to date, underperforming both the industry and the broader market. The industry has lost 10.9%, while the S&P 500 Index has returned 7.8%. The disconnect between operating performance and stock price suggests that investors remain cautious toward the fintech sector despite Pagaya’s improving profitability.
The performance of PGY has been better than that of Upstart but worse than Virtu Financial. Upstart shares have lost 36.4%, while the VIRT stock has appreciated 76.1% year to date.
PGY’s YTD Price Performance
Image Source: Zacks Investment Research
How to Approach the Pagaya Stock?Given its resilient business model and capital-efficient funding strategy, PGY continues to stand out in the fintech space. Its AI-driven platform and reliance on forward flow agreements shield it from market volatility and credit risks.
Moreover, the stock trades at a discount relative to peers like UPST and Virtu Financial, making its valuation attractive.
However, the company has been witnessing a persistent increase in expenses over the past few years. Over the last three years (2022-2025), total costs and operating expenses saw a compound annual growth rate of 1.2%, mainly because of elevated production costs. Since production costs are highly correlated to the company’s network volume, the metric is anticipated to keep increasing in the near term as the value of the company’s assets originated by its partners with the assistance of AI and with respect to single-family rental operations grow. Thus, rising expenses will hurt PGY’s bottom-line growth to an extent.
Analysts do not seem optimistic regarding PGY’s earnings growth potential. Over the past 30 days, the Zacks Consensus Estimate for Pagaya’s 2026 and 2027 earnings has been unchanged at $3.23 and $3.72, respectively.
PGY’s Earnings Estimate Revision Trend
Image Source: Zacks Investment Research
Overall, Pagaya combines an attractive valuation with improving profitability, a scalable AI-driven platform and a capital-light business model. These strengths make the stock appealing for long-term investors seeking exposure to the fintech lending space. However, rising production costs and the absence of upward earnings estimate revisions suggest that near-term upside may remain limited.
As such, existing shareholders can continue to hold the stock, while prospective investors may prefer to wait for a more attractive entry point or clearer evidence of sustained earnings momentum.
At present, Pagaya carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
