Pagaya (PGY) Q1 2026 Earnings Call Transcript

Motley Fool Transcribing, The Motley Fool Fri, May 8, 2026 at 11:17 PM GMT+7 45 min read PGY Image source: The Motley Fool. Chief Financial Officer — Evangelos Perros Chief Strategy Officer and Incoming CFO — Jonathan Dobres Need a quote from a Motley Fool analyst? Email pr@fool.com Craig Smyth: Thank you, and welcome to Pagaya s First Quarter 2026 Earnings Conference Call. Joining me today to talk about our business and results are Gal Krubiner, Chief Executive Officer of Pagaya; Sanjiv Das, President; Evangelos Perros, Chief Financial Officer; and Jon Dobres, Chief Strategy Officer. You can find the materials that accompany our prepared remarks and a replay of today s webcast on the Investor Relations section of our website at investor.pagaya.com. Our remarks today will include forward-looking statements that are based on our current expectations and forecasts with respect to, among other things, our operations and financial performance, including our financial outlook for the second quarter and full year 2026. Our actual results may differ materially from those contemplated by these forward-looking statements. Factors that could cause these results to differ materially from our expectations include, but are not limited to, those risks described in today s press release and our filings with the U.S. Securities and Exchange Commission. We undertake no obligation to update any forward-looking statements as a result of new information or future events. Please refer to the documents we file from time to time with the SEC, including our 10-K, 10-Q and other reports for a more detailed discussion of these factors. Additionally, non-GAAP financial measures, including adjusted EBITDA, adjusted EBITDA margin, adjusted net income, fee revenue less production costs, or FRLPC, FRLPC as a percentage of network volume, core operating expenses and core operating expenses as a percentage of FRLPC will be discussed on the call. We also provide an outlook for the second quarter and the full year 2026 on a non-GAAP basis. Reconciliations to the most directly comparable GAAP financial measures are available to the extent available without unreasonable effort in our earnings release and other materials, which are posted on our Investor Relations website. We encourage you to review the shareholder letter, which was furnished with the SEC on Form 8-K today for detailed commentary on our business and performance in conjunction with the company earnings supplement and press release. With that, let me turn the call over to Gal. Gal Krubiner: Thank you, and welcome, everyone. Before turning to the quarter, this morning, we announced that EP is stepping down as CFO after nearly 5 years with Pagaya. He has been a great partner to Sanjiv and me and was instrumental in laying the foundation for positive GAAP net income and cash flow, one of the most important pillars for our long term success. The transition takes effect June 15, with EP remaining as a strategic adviser through year-end. We are grateful for his contribution and look forward to continuing to work with him in the future. We are also excited to announce Jon Dobres as the CFO of Pagaya. Since joining Pagaya in 2021, he has worked closely with me, Sanjiv and EP on our corporate strategy and key financing initiatives, including our term loan and high-yield bond offering. I m confident he is the right leader for this role. He knows our business inside out and has been a driving force behind our financial transformation. He will continue to strengthen our balance sheet, drive profitable growth and sharpen our engagement with the investor community that is here on the call. With that, let me turn to our quarterly results. I m pleased to report another strong quarter for Pagaya. Despite the macro environment full of volatility, we stayed focused on what we can control, our core business drivers, and delivered GAAP net income of $25 million. This is now 5 consecutive quarters of profitability. These results reflect a team that is executing a clear plan, drive sustained profitability by expanding our partner network, building a differentiated product and operating a platform that is designed to perform through cycles. Now let s turn into the consumer. What we see is a resilient consumer, supported by stable labor markets and credit conditions. Our first quarter credit performance is in line with expectations with some benefit from seasonal tax trends. But I want to be clear, we are not relying on those tailwinds to extend risk. We continue to maintain our selective posture, and that strategic cushion is what allows us to execute our long-term plan regardless of short-term market dislocation. As you will recall, in the fourth quarter last year, we intentionally pulled back origination volumes in selected segments. Throughout the first quarter, we maintained that same credit posture unchanged. We are data-dependent and flexible, and we believe that a measured approach tod

Pagaya (PGY) Q1 2026 Earnings Call Transcript

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Pagaya (PGY) Q1 2026 Earnings Call Transcript

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