Pagaya Technologies (NASDAQ:PGY) CFO Jonathan Dobres discussed the company’s growth strategy at the 46th Annual Canaccord Growth Conference. Pagaya operates a technology platform connecting lending partners with institutional capital and currently collaborates with approximately 35 lending partners across various sectors, achieving an annualized consumer loan volume of about $14 billion.
In the previous quarter, Pagaya reported a net income of $45 million and has shown consistent profitability for the past six quarters. The company anticipates a GAAP net income run rate of $200 million by year-end. Pagaya aims to expand by adding more partners, with five added so far this year and three more expected before the year concludes, all while maintaining a focus on high-quality borrowers.
Pagaya’s funding model utilizes pre-funded securitizations for about 60% of its capital, with $2 billion in oversubscribed securitizations completed recently. The company has about $1 billion in investments on its balance sheet, consisting primarily of equity in securitizations and bonds, while maintaining a 90% margin conversion rate on its fee revenue.
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