Company Overview
Pagaya Technologies Ltd. operates as a product-focused technology enterprise that deploys advanced data science and proprietary artificial intelligence-powered solutions for financial services customers, institutional investors, and sophisticated investors across the United States, Israel, and the Cayman Islands. The company functions within the Technology sector, specifically classified under the Software - Infrastructure industry, positioning it as a provider of essential underlying technology rather than end-user applications. This operational scope is supported by an workforce of 518 employees, reflecting a significant organizational scale for a specialized software infrastructure provider. The company's market capitalization stands at $921.41M, while its Trailing Twelve Months revenue reached $1.30B, indicating a substantial market presence and the ability to generate significant top-line sales. These valuation and revenue figures suggest that the company has established a dominant position in its niche, leveraging its technological assets to capture a large volume of business within the global financial technology landscape.
Financial Health
Pagaya Technologies reported revenue of $1.30B and net income of $77.28M for the trailing twelve months, with an EBITDA of $270.00M, highlighting a robust operational cash generation capability before interest and taxes. The difference between the $1.30B revenue and the $77.28M net income reveals a cost structure where operating expenses, including cost of goods sold and selling, general, and administrative costs, consume approximately 93.7% of total revenue, which is typical for high-growth software infrastructure firms with significant research and development investments. The company generated free cash flow of $181.19M, demonstrating strong financial flexibility that allows for potential capital expenditures, share repurchases, or organic expansion without relying on external financing. The gross margin stands at 42.4%, indicating that the company retains more than 40% of each dollar of revenue after direct costs, while the operating margin of 23.8% shows efficient management of overhead costs, and the profit margin of 6.3% reflects the final profitability after all expenses. On the balance sheet, the company holds $1.18B in cash against $858.48M in debt, resulting in a debt-to-equity ratio of 146.64, which suggests a leveraged position where debt obligations exceed equity capitalization but are partially offset by substantial cash reserves. The current ratio is 13.11, a metric that indicates exceptional short-term liquidity, meaning the company possesses more than thirteen times the current assets required to cover its current liabilities. Return on Equity is 13.0% and Return on Assets is 11.6%, metrics that reveal that management is effectively utilizing shareholder equity and total assets to generate returns above the cost of capital.
Valuation Assessment
The trailing twelve months P/E ratio is 12.01, while the forward P/E is 3.35, a significant disparity that implies the market expects earnings to grow substantially in the coming year or that current earnings are unusually high relative to future expectations. The price-to-book ratio is 1.91, indicating that the market values the company at nearly twice its net asset book value, suggesting a premium assigned to its intangible assets, intellectual property, and growth prospects. Alternative valuation metrics include a price-to-sales ratio of 0.71 and an EV/EBITDA of 2.45, figures that suggest the stock is trading at a discount relative to its revenue and earnings power compared to many mature technology peers. The 52-week high is $44.99 and the 52-week low is $8.50, and without a specific current price provided in the facts, the valuation context is framed by this wide trading range of over five times the low price. The beta value is 5.94, which indicates that the stock's price volatility is nearly six times that of the broader market, exposing investors to significant fluctuations in share price relative to market movements.
Growth & Income
Revenue growth year over year is 19.8%, whereas earnings growth year over year is N/A, suggesting that while top-line expansion is accelerating, the bottom-line growth trajectory is either not yet realized in the current reporting period or is being influenced by non-recurring items. Since the earnings growth rate is listed as N/A, a direct comparison of earnings versus revenue growth rates cannot be calculated, but the 19.8% revenue growth demonstrates a strong top-line expansion that is a primary driver of company value. The company does not pay dividends, evidenced by a dividend yield of N/A and a payout ratio of 0.0%, meaning the company retains all earnings to reinvest into growth initiatives, research, and development rather than distributing cash to shareholders. This reinvestment strategy is typical for high-growth technology firms seeking to compound value through internal expansion and market share acquisition rather than providing immediate income to investors. The overall growth and income profile is characterized by strong double-digit revenue expansion and a complete retention of earnings for capital allocation purposes.