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NEW YORK--(BUSINESS WIRE)--Pagaya Technologies Ltd. (NASDAQ: PGY) (“Pagaya”), a global technology company delivering AI-driven product solutions for the financial ecosystem, today announced that the Company's management team will participate in the following investor conference: CG 46th Annual Growth Conference Date: August 11, 2026 Location: Boston, MA Webcast: Click here to register and listen to a live fireside at 4:30pm ET on August 11, 2026. About Pagaya Technologies Pagaya (NASDAQ: PGY) i.

NEW YORK--(BUSINESS WIRE)--Pagaya Technologies Ltd. (NASDAQ: PGY) (“Pagaya”), a global technology company delivering AI-driven product solutions for the financial ecosystem, today announced the closing of RPM 2026-4, a $750 million upsized auto asset-backed securitization (ABS). This marks Pagaya's fourth fully pre-funded auto ABS transaction of 2026 and its largest to date, bringing the total amount of pre-funded auto ABS raised this year to $2.25 billion. Notably, this transaction features Pa.

NEW YORK--(BUSINESS WIRE)--Pagaya Technologies Ltd. (NASDAQ: PGY) (“Pagaya”) will announce its second quarter 2026 earnings on July 30, 2026. A conference call to discuss those earnings will be held on the same day at 8:30 a.m. ET / 3:30 p.m. IST. Details to register for the live webcast presentation are available here and on Pagaya's IR website located at investor.pagaya.com. The webcast replay will be available on the IR website following the conclusion of the event. About Pagaya Technologies.

Pagaya Technologies (PGY) remains a volatile but compelling undervalued fintech with a 32% surge since my last coverage. I maintain a Strong Buy rating, citing robust revenue growth, multi-year sector tailwinds, and significant undervaluation versus peers. PGY trades at a forward P/E of 6x and a PEG of 0.05, reflecting a steep discount to sector medians.

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Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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Pagaya Technologies Ltd. (PGY - Free Report) closed at $15.87 in the latest trading session, marking a +2.52% move from the prior day. This move outpaced the S&P 500's daily loss of 0.05%. Elsewhere, the Dow saw a downswing of 0.09%, while the tech-heavy Nasdaq depreciated by 0.24%.

Shares of the company witnessed a gain of 10.89% over the previous month, beating the performance of the Finance sector with its gain of 2.3%, and the S&P 500's loss of 1.42%.

Analysts and investors alike will be keeping a close eye on the performance of Pagaya Technologies Ltd. in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $0.71, marking a 10.94% rise compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $358.15 million, up 9.73% from the year-ago period.

For the full year, the Zacks Consensus Estimates are projecting earnings of $3.23 per share and revenue of $1.48 billion, which would represent changes of -2.42% and +13.68%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for Pagaya Technologies Ltd. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. At present, Pagaya Technologies Ltd. boasts a Zacks Rank of #1 (Strong Buy).

Looking at valuation, Pagaya Technologies Ltd. is presently trading at a Forward P/E ratio of 4.79. This indicates a discount in contrast to its industry's Forward P/E of 11.12.

The Financial - Miscellaneous Services industry is part of the Finance sector. Currently, this industry holds a Zacks Industry Rank of 103, positioning it in the top 43% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.

Pagaya Technologies LTD. (NASDAQ: PGY) ("Pagaya" or the “Company”), a global technology company delivering AI-driven product solutions for the financial ecosystem, today announced the closing of an upsized $800 million AAA-rated personal loan ABS transaction (PAID 2026-4).

With 39 unique investors participating, the upsized deal brings Pagaya’s year-to-date personal loan ABS issuance to nearly $4 billion and marks the company’s third upsized personal loan ABS transaction this calendar year. The deal brings Pagaya’s total issuance since 2018 to $40 billion through 91 ABS transactions, backed by more than 165 institutional investors across its personal loan, auto and POS programs. Notably, collateral for this transaction includes personal loans from new network partners including Upstart and Achieve.

“The upsizing of our last two PAID transactions highlights the strength of our funding platform and the confidence institutional investors continue to place in Pagaya’s underwriting and asset performance,” said Sahil Chandiramani, Head of Capital Markets at Pagaya. “This transaction further expands our capacity to support both existing and new lending partners as they grow, while continuing to deliver attractive investment opportunities to the market.”

About Pagaya Technologies

Pagaya (NASDAQ: PGY) is a global technology company making life-changing financial products and services available to more people nationwide, as it reshapes the financial services ecosystem. By using machine learning, a vast data network and an AI-driven approach, Pagaya provides consumer credit and other products for its partners, their customers, and investors. Its proprietary API and capital solutions integrate into its network of partners to deliver seamless user experiences and greater access to the mainstream economy. For more information, visit pagaya.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260615808339/en/

It is hard to find an artificial intelligence (AI) stock these days that investors would rate as a value stock, but Pagaya Technologies (PGY +8.62%) is one. AI stocks and value arenʻt mutually exclusive. It's just that most AI stocks are overvalued, not undervalued, given the hype surrounding them.

But Pagaya has somehow avoided the hype, remaining just below the AI radar. It's stock trades at around $13 per share and has a trailing 12-month price-to-earnings (P/E) ratio of 11. But it has a forward P/E ratio of just 4, and its five-year price/earnings-to-growth (PEG) ratio barely registers at 0.03.

In other words, Pagaya stock is trading like a deep value stock, but it has massive growth potential.

Image source: Getty Images.

Pagaya uses AI to place loans Pagaya is a fintech that uses AI to help banks and financial institutions process loans. But the company specializes in handling non-prime loan requests that have been passed on by banks. Rejected loan requests deemed too risky by the average bank are forwarded to Pagaya, which uses its AI-enabled platform to determine if an alternate lender can be found in its network.

Pagaya is really the only company that specializes in this area, so it has carved out a growing niche. It makes most of its revenue through fees for placing these loans with lenders.

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In the first quarter, it generated $317 million in revenue, up 10% year over year. Of that amount, $299 million, or 94%, came from fees. The rest was mostly from interest income.

Its network volume rose by 9% in the quarter to $2.6 billion, fueled by growth in auto loans and point-of-sale loans, like those obtained through buy now, pay later (BNPL) companies. The point-of-sale loans are a rapidly growing part of its business and should continue to surge, as Pagaya just signed a deal with Sezzle to provide that service for its BNPL platform.

In addition, Pagaya reduced its expenses in Q1. This allowed it to raise its operating income by 67% to $80 million, while its net income spiked 212% to about $25 million.

Growth outlook Pagaya anticipates strong growth this year, and it recently raised its guidance for network volume and net income. The company now anticipates network volume of between $11.45 billion and $13 billion in 2026, which would be up from $10.5 billion last year. The previous guidance called for $11.25 billion at the low end.

Revenue is forecast by management at $1.4 billion to $1.575 billion this year, up almost 15% at the midpoint from 2025. Net income is anticipated to be within a range of $110 million to $160 million, up 67% at the midpoint from last year. The previous guidance called for net income of $100 million to $150 million.

It is this type of growth, combined with its dirt cheap valuation, that has Wall Street analysts extremely bullish on Pagaya stock. 100% of the 10 analysts covering Pagaya rate it a buy, with a median price target of $25 per share, suggesting 86% upside over the next year or so.

If you are looking for a cheap growth stock with big upside, this is one stock to consider.

Pagaya Has Delivered Five Straight Profitable Quarters, So Why Is Nearly 20% Of The Float Still Short?

Here are five stocks added to the Zacks Rank #1 (Strong Buy) List today:

Pagaya Technologies Ltd. (PGY - Free Report) : This product-focused technology company has seen the Zacks Consensus Estimate for its current year earnings increasing 12.2% over the last 60 days.

TTM Technologies, Inc. (TTMI - Free Report) : This company that manufactures and sells printed circuit boards has seen the Zacks Consensus Estimate for its current year earnings increasing 27.5% over the last 60 days.

Green Dot Corporation (GDOT - Free Report) : This financial technology and bank holding company has seen the Zacks Consensus Estimate for its current year earnings increasing 12.8% over the last 60 days.

Occidental Petroleum Corporation (OXY - Free Report) : This explorer and developer of oil and gas has seen the Zacks Consensus Estimate for its current year earnings increasing 67.2% over the last 60 days.

Civista Bancshares, Inc. (CIVB - Free Report) : This financial holding company for Civista Bank has seen the Zacks Consensus Estimate for its current year earnings increasing 9.2% over the last 60 days.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Momentum investing is essentially an exception to the idea of "buying low and selling high." Investors following this style of investing are usually not interested in betting on cheap stocks and waiting long for them to recover. Instead, they believe that "buying high and selling higher" is the way to make far more money in lesser time.

Who doesn't like betting on fast-moving trending stocks? But determining the right entry point isn't easy. Often, these stocks lose momentum once their valuation moves ahead of their future growth potential. In such a situation, investors find themselves loaded up on expensive shares with limited to no upside or even a downside. So, going all-in on momentum could be risky at times.

It could be safer to invest in bargain stocks that have been witnessing price momentum recently. While the Zacks Momentum Style Score (part of the Zacks Style Scores system), which pays close attention to trends in a stock's price or earnings, is pretty useful in identifying great momentum stocks, our 'Fast-Paced Momentum at a Bargain' screen comes handy in spotting fast-moving stocks that are still attractively priced.

There are several stocks that currently pass through the screen and Pagaya Technologies Ltd. (PGY - Free Report) is one of them. Here are the key reasons why this stock is a great candidate.

A dash of recent price momentum reflects growing interest of investors in a stock. With a four-week price change of 6.2%, the stock of this company is certainly well-positioned in this regard.

While any stock can see a spike in price for a short period, it takes a real momentum player to deliver positive returns for a longer time frame. PGY meets this criterion too, as the stock gained 31.6% over the past 12 weeks.

Moreover, the momentum for PGY is fast paced, as the stock currently has a beta of 5.35. This indicates that the stock moves 435% higher than the market in either direction.

Given this price performance, it is no surprise that PGY has a Momentum Score of B, which indicates that this is the right time to enter the stock to take advantage of the momentum with the highest probability of success.

In addition to a favorable Momentum Score, an upward trend in earnings estimate revisions has helped PGY earn a Zacks Rank #1 (Strong Buy). Our research shows that the momentum-effect is quite strong among Zacks Rank #1 and #2 stocks. That's because as covering analysts raise their earnings estimates for a stock, more and more investors take an interest in it, helping its price race to keep up. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Most importantly, despite possessing fast-paced momentum features, PGY is trading at a reasonable valuation. In terms of Price-to-Sales ratio, which is considered as one of the best valuation metrics, the stock looks quite cheap now. PGY is currently trading at 0.94 times its sales. In other words, investors need to pay only 94 cents for each dollar of sales.

So, PGY appears to have plenty of room to run, and that too at a fast pace.

In addition to PGY, there are several other stocks that currently pass through our 'Fast-Paced Momentum at a Bargain' screen. You may consider investing in them and start looking for the newest stocks that fit these criteria.

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Pagaya Technologies Ltd. (PGY - Free Report) could be a solid choice for investors given its recent upgrade to a Zacks Rank #1 (Strong Buy). This upgrade primarily reflects an upward trend in earnings estimates, which is one of the most powerful forces impacting stock prices.

A company's changing earnings picture is at the core of the Zacks rating. The system tracks the Zacks Consensus Estimate -- the consensus measure of EPS estimates from the sell-side analysts covering the stock -- for the current and following years.

Individual investors often find it hard to make decisions based on rating upgrades by Wall Street analysts, since these are mostly driven by subjective factors that are hard to see and measure in real time. In these situations, the Zacks rating system comes in handy because of the power of a changing earnings picture in determining near-term stock price movements.

As such, the Zacks rating upgrade for Pagaya Technologies Ltd. is essentially a positive comment on its earnings outlook that could have a favorable impact on its stock price.

Most Powerful Force Impacting Stock PricesThe change in a company's future earnings potential, as reflected in earnings estimate revisions, has proven to be strongly correlated with the near-term price movement of its stock. The influence of institutional investors has a partial contribution to this relationship, as these big professionals use earnings and earnings estimates to calculate the fair value of a company's shares. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it. Their bulk investment action then leads to price movement for the stock.

For Pagaya Technologies Ltd., rising earnings estimates and the consequent rating upgrade fundamentally mean an improvement in the company's underlying business. And investors' appreciation of this improving business trend should push the stock higher.

Harnessing the Power of Earnings Estimate RevisionsAs empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, tracking such revisions for making an investment decision could be truly rewarding. Here is where the tried-and-tested Zacks Rank stock-rating system plays an important role, as it effectively harnesses the power of earnings estimate revisions.

The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here >>>> .

Earnings Estimate Revisions for Pagaya Technologies Ltd.This company is expected to earn $3.23 per share for the fiscal year ending December 2026, which represents no year-over-year change.

Analysts have been steadily raising their estimates for Pagaya Technologies Ltd.. Over the past three months, the Zacks Consensus Estimate for the company has increased 30.9%.

Bottom LineUnlike the overly optimistic Wall Street analysts whose rating systems tend to be weighted toward favorable recommendations, the Zacks rating system maintains an equal proportion of "buy" and "sell" ratings for its entire universe of more than 4,000 stocks at any point in time. Irrespective of market conditions, only the top 5% of the Zacks-covered stocks get a "Strong Buy" rating and the next 15% get a "Buy" rating. So, the placement of a stock in the top 20% of the Zacks-covered stocks indicates its superior earnings estimate revision feature, making it a solid candidate for producing market-beating returns in the near term.

You can learn more about the Zacks Rank here >>>

The upgrade of Pagaya Technologies Ltd. to a Zacks Rank #1 positions it in the top 5% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher in the near term.

Key Takeaways Pagaya connects lenders and institutional investors, using AI to approve and price consumer loans.In Q1 2026, network volume was $2.6B, with growth largely driven by auto and POS.Pagaya had 30 lending partners and 160 funding partners as of Mar. 31, 2026, supporting ABS. Pagaya Technologies (PGY - Free Report) has built a U.S.-focused platform that sits between lenders and institutional investors. It uses proprietary artificial intelligence (AI) to improve credit decisioning and capital allocation across consumer finance.

The investment case often comes down to whether Pagaya can keep scaling volumes and profitability without loosening credit standards. First quarter results have reflected that balance, with management pointing to fee generation, operating leverage, disciplined spending and funding flexibility as key drivers.

PGY’s Platform Basics: AI Credit at ScalePagaya’s core role is to connect lenders that want to originate loans with institutional investors that want exposure to consumer credit with targeted risk-adjusted outcomes. The platform applies AI to large volumes of real-time and historical data to make informed approval and pricing decisions.

The model is designed to be asset-light. Pagaya originates and structures loans through partners, but sells most of the credit exposure to institutional investors. That reduces capital intensity and balance sheet risk, so revenues are primarily fee-driven rather than dependent on holding loans.

Those fees are tied to technology solutions that support marketing, underwriting and decisioning, paired with capital-efficiency capabilities focused on funding and risk management. PGY’s goal is to scale volumes while keeping credit quality and capital markets execution in view.

Pagaya’s Products: From Personal Loans to POSPagaya started in personal loans and expanded into auto, point of sale (POS) and single-family rental, while also adding credit cards as another market. The broader footprint matters because it diversifies volume sources and helps the network stay resilient when one asset class slows.

That breadth is showing up in the mix. In the first quarter of 2026, network volume was $2.6 billion and growth was largely driven by auto and POS, underscoring momentum beyond personal loans.

Product-led tools are meant to fit across the lending lifecycle. Direct Marketing Engine, Affiliate Optimizer and FastPass are positioned as technology layers that help partners with customer acquisition and conversion, underwriting decisioning and a more integrated workflow.

Sales Estimates
 

Image Source: Zacks Investment Research

PGY’s Funding Engine: ABS Scale and Investor DepthPagaya finances originations through multiple channels, including securitizations sponsored or administered by Pagaya or affiliates, funds managed or advised by Pagaya or affiliates, and third-party special purpose vehicles under forward-flow arrangements, among similar structures.

A key point is how much of the credit exposure is distributed rather than retained. By selling most exposure to institutional investors, Pagaya can keep its balance sheet relatively asset-light while using capital markets execution to support growth.

Scale and partner breadth are central to that engine. As of March 31, 2026, PGY reported more than 30 lending partners and 160 institutional funding partners supporting its asset-backed securities (ABS) and other funding channels. Since 2018, it has raised more than $36 billion across over 85 ABS transactions, and it raised $2.1 billion in ABS funding across four transactions in the first quarter of 2026.

Pagaya’s Growth Markers: Volumes, Partners, PenetrationPagaya’s network has evaluated more than $3.7 trillion in loan applications since inception, which speaks to the scale of the top-of-funnel data feeding its models and partner workflows.

Management has emphasized expanding the partner base and deepening multiproduct penetration. The company planned to onboard seven to eight new partners by the end of the second quarter of 2026, and it had already onboarded four partners across its three core consumer credit asset classes through May 7, 2026. Multi-year deals with two large partners in auto and personal lending are also intended to support predictability.

Broader adoption can matter as much as new logos. In the first quarter of 2026, revenue from fees increased as partner adoption broadened, with Pagaya adding Experian Activate for personal loans and scaling Affiliate Optimizer and Direct Marketing Engine. The company completed 12 campaigns across five partners, a data point that ties product usage to potential revenue per application over time.

Earnings Estimates
 

Image Source: Zacks Investment Research

What Moves PGY’s Unit EconomicsInvestors often track revenue from fees less production costs (FRLPC) as a core margin lens. In the first quarter of 2026, FRLPC was $121 million, up 5% year over year, while FRLPC as a percentage of network volume was 4.6%.

That margin can move quickly with funding conditions. Management attributed the year-over-year decline in FRLPC margin to asset-class mix, new partner contributions and tighter pricing on the company’s ABS transactions, reflecting a higher cost of capital and market-driven pricing pressure. When ABS pricing tightens, capital markets execution fees can come under pressure and take rates can compress.

Near-term economics can also be influenced by ramp-up dynamics and underwriting posture. Management deliberately reduced loan production in late 2025 by about $100 to $150 million per month and carried that lower run-rate into early 2026, while application-to-volume conversion stayed below 1% as the company leaned into higher-quality borrowers.

Pagaya: Key Watch List for InvestorsMonitor partner onboarding cadence and the pace at which new relationships translate into network volume, with management positioning new partner ramps as a more meaningful contributor in the back half of 2026.

Watch the auto and POS mix, since mix shifts have been linked to near-term FRLPC pressure. Management expects FRLPC margin of 4-5%, with a tilt toward the lower end due to increased POS mix, new partners and funding mix.

Monitor underwriting selectivity, including whether conversion remains below 1% and how that interacts with volume targets. Follow funding conditions, especially ABS pricing, since tighter pricing has flowed through to lower capital markets execution fees. Finally, look for updates on the single-family rental business path, as management has been evaluating strategic alternatives.

Pagaya’s Price Performance & Zacks RankFor context, Pagaya’s peers in the broader fintech and consumer credit ecosystem include Affirm Holdings (AFRM - Free Report) and LendingClub Corporation (LC - Free Report) .

Over the past three months, shares of PGY have jumped 38.6%, outperforming the industry’s rally of 7.8%. In the same time frame, Affirm Holdings and LendingClub have gained 52.4% and 23.7%, respectively.

3-Month Price Performance
 

Image Source: Zacks Investment Research

At present, Pagaya sports a Zacks Rank #1 (Strong Buy), while Affirm Holdings and LendingClub carry a Zacks Rank #3 (Hold) and a Zacks Rank #2 (Buy), respectively. You can see the complete list of today’s Zacks #1 Rank stocks here.

Key Takeaways Pagaya posted Q1 2026 GAAP net income of $24.7M, up from $7.9M, on operating leverage.PGY lifted 2026 GAAP net income guidance to $110M-$160M and revenue to $1.4B-$1.575B.Pagaya raised $2.1B of ABS across four deals and completed its first auto resecuritization. Pagaya Technologies (PGY - Free Report) is leaning into a different narrative in 2026: scaling profits without loosening credit standards. The first quarter reinforced that shift, with another GAAP profit and clear evidence of operating leverage.

Management also raised its full-year GAAP net income outlook, while pointing to fee generation, disciplined spending, and a more durable funding playbook as key supports.

PGY’s Q1 Takeaways: Profits and Operating LeverageFirst-quarter 2026 adjusted earnings of 73 cents beat the Zacks Consensus Estimate of 48 cents, as profitability improved year over year. GAAP net income attributable to Pagaya rose to $24.7 million from $7.9 million in the prior-year quarter. 
 

The setup was straightforward: total revenues and other income increased 9.6% year over year to $317.9 million, while total costs and operating expenses declined 1.8% to $237.9 million. Lower technology, data and product development costs, along with lower general and administrative costs, helped drive that expense improvement.

The first quarter fits into a broader operating leverage trend. Revenue growth has been outpacing expense growth, helping margins improve and supporting a profitability streak into 2026. Operational efficiencies and tighter cost discipline have been reinforced by better performance in personal loans and auto lending, keeping spending in check as the platform scales.

Pagaya’s 2026 Outlook: What Changed and WhyManagement raised full-year 2026 GAAP net income guidance to $110-$160 million, up from $100-$150 million previously. Adjusted EBITDA guidance was also updated to $420-$460 million from $410-$460 million.

The company also expects 2026 network volume of $11.45-$13 billion, with the lower end lifted by about $200 million versus prior guidance, and total revenues projected at $1.4-$1.575 billion.

For the second quarter, management projects network volume of $2.875-$3.075 billion and total revenues of $345-$365 million, alongside adjusted EBITDA of $100-$115 million and GAAP net income of $25-$45 million.

The drivers behind the higher net income outlook center on fee generation, operating leverage, and disciplined spending. At the same time, management continues to factor in a conservative macro stance and selective underwriting, which can temper near-term volume even as profitability improves.

Earnings Estimates
 

Image Source: Zacks Investment Research

PGY’s Near-Term Setup: Strong Buy Signal and Style ScoresPagaya sports a Zacks Rank #1 (Strong Buy), which is designed to be most effective over a one- to three-month holding horizon by capturing earnings estimate revision trends. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Style Scores add another layer of near-term support. A VGM Score of A, paired with a Value Score of A, suggests the shares screen well across value and blended factor frameworks. Growth and Momentum scores of B indicate a supportive, though not extreme, factor backing those dimensions.

Context matters in this peer group. Affirm Holdings, Inc. (AFRM - Free Report) and Upstart Holdings, Inc. (UPST - Free Report) both carry a Zacks Rank #3 (Hold) in the same industry comparison set. This highlights how Pagaya’s near-term rating profile stacks up compared with other consumer finance platforms.

Pagaya’s Funding Flexibility: Stress-Test EvidenceFunding durability is central to Pagaya’s model, and the first quarter delivered tangible proof points. The company raised $2.1 billion of asset-backed securities (ABS) funding across four transactions despite market volatility and completed its first auto resecuritization.

These steps matter because PGY’s approach is built around expanding securitization capacity and adding new investors, supporting an upfront model that raises cash before loans are originated. A broader institutional funding partner base is intended to reduce volatility and improve execution resilience when markets get choppy.

The trade-off is that funding costs remain a swing factor. Tighter ABS pricing can compress take rates and pressure revenue per unit of volume, making capital markets conditions an ongoing variable to watch even with improved funding flexibility.

Valuation Lens for PGY: Tangible Book ContextOn valuation, the key anchor is tangible book value. Pagaya has been trading at 2.65X trailing 12-month tangible book value, compared with 4.23X for the industry.

History shows a wide range. Over the past three years, the stock has traded as high as 8.03X and as low as 0.83X tangible book, with a three-year median of 1.84X.

P/TB TTM
 

Image Source: Zacks Investment Research

For investors, that context frames the current multiple as neither a peak nor a trough versus its own range, while keeping the focus on whether profitability and funding execution can justify holding above the longer-term median.

In comparison, Affirm Holdings and Upstart Holdings are trading at a premium to PGY. At present, Affirm Holdings and Upstart Holdings are trading at a trailing 12-month tangible book value of 7.87X and 4.89X, respectively.

Decision Checklist: What Would Change the CallFirst, track whether Pagaya can sustain GAAP profitability beyond a single quarter and keep operating discipline intact as volumes scale.

Second, monitor the FRLPC trend versus expectations. FRLPC as a percentage of network volume was 4.6% in the first quarter, and the company expects a 4-5% range for 2026 while trending toward the lower end due to point-of-sale mix, new partners, and funding mix.

Third, watch stability in funding costs and ABS execution economics, since tighter pricing can squeeze take rates.

Fourth, execution on partner ramps matters, with management targeting additional onboarding and framing ramps as more back-half weighted. Finally, keep an eye on concentration risk, including the contribution from a related-party customer that represented about 20% of total fee revenues in the first quarter.

Here are five stocks added to the Zacks Rank #1 (Strong Buy) List today:

Douglas Dynamics (PLOW - Free Report) : This company, which designs, manufactures and sells snow and ice control equipment for light trucks, has seen the Zacks Consensus Estimate for its current year earnings increasing 15.4% over the last 60 days.

Pagaya Technologies Ltd. (PGY - Free Report) : This company, which applies proprietary artificial intelligence (AI) to improve credit decisioning and capital allocation across consumer finance, has seen the Zacks Consensus Estimate for its current year earnings increasing 12.2% over the last 60 days.

Macro Bank (BMA - Free Report) : This company, which is a leading bank in Argentina, has seen the Zacks Consensus Estimate for its current year earnings increasing 11.1% over the last 60 days.

The Estee Lauder Companies (EL - Free Report) : This company, which is one of the world's leading manufacturers and marketers of skin care, makeup, fragrance and hair care products, has seen the Zacks Consensus Estimate for its current year earnings increasing 7.6% over the last 60 days.

Shore Bancshares (SHBI - Free Report) : This bank holding company, which is engaged in the business of banking through its subsidiaries, has seen the Zacks Consensus Estimate for its current year earnings increasing 5.6% over the last 60 day.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

NEW YORK--(BUSINESS WIRE)--Pagaya Technologies Ltd. (NASDAQ: PGY) (“Pagaya”), a global technology company delivering AI-driven product solutions for the financial ecosystem, today announced an expansion of its long-term partnership with Upgrade, Inc., a financial technology company providing affordable and responsible credit, mobile banking and payment products to mainstream consumers. The expansion brings Pagaya’s AI-driven credit decisioning to Flex Pay, Upgrade’s Buy Now, Pay Later (BNPL) solution.

The announcement marks a significant milestone in the ongoing partnership between the two companies, moving beyond personal loans into a new asset class. With Pagaya integrated into its point-of-sale solution, Upgrade can responsibly extend its simple, surprise-free Flex Pay monthly payment options to a broader range of customers at the moment of purchase.

“By leveraging Pagaya’s AI-powered decisioning within our Flex Pay product, we are enabling more people to access the payment solutions they need, allowing them to make thoughtful purchases now and pay overtime through a quick and easy application process,” said Tom Botts, President of Flex Pay.

The initial partnership expansion focuses on the travel merchant segment, where Flex Pay is a trusted payment method for thousands of the world’s leading brands. By utilizing Pagaya’s real-time underwriting, Upgrade will be able to extend its seamless Flex Pay financing options to more customers across its extensive network of travel partners.

“Our expanded partnership with Upgrade to integrate into Flex Pay underscores the strength of our long-term relationship, as we deepen our collaboration beyond personal loans,” said Sanjiv Das, President of Pagaya. “By extending our network across new asset classes, we are supporting Flex Pay as it continues to grow. This expansion is part of our strategy to extend our point-of-sale business towards more purpose-driven transactions.”

About Pagaya
Pagaya (NASDAQ: PGY) is a global technology company making life-changing financial products and services available to more people nationwide, as it reshapes the financial services ecosystem. By using machine learning, a vast data network and an AI-driven approach, Pagaya provides consumer credit and other products for its partners, their customers, and investors. Its proprietary API and capital solutions integrate into its network of partners to deliver seamless user experiences and greater access to the mainstream economy. For more information, visit pagaya.com.

About Upgrade
Upgrade is a financial technology company that offers affordable and responsible credit, mobile banking, and payment products to mainstream consumers. Since its inception in 2017, Upgrade has delivered over $47 billion in credit to over 7.8 million customers. Upgrade’s platform includes six core products: BNPL, Home Improvement Financing, Personal Loans, Cards, Mobile Banking, and Auto Financing. Loans and credit lines are issued, and banking services are provided, by Cross River Bank, a New Jersey State Chartered Commercial Bank, Member FDIC, Equal Housing Lender, Blue Ridge Bank, a nationally chartered commercial bank, Member FDIC, and Celtic Bank, a Utah State Chartered Industrial Bank, Member FDIC.

Upgrade is headquartered in San Francisco, California, with an operations center in Phoenix, Arizona, a technology center in Montreal, Canada, and regional offices in Atlanta, Georgia, and Irvine, California.

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