Pagaya Delivers Stellar 1H 2026 Results: Here's What Drove it

PGY’s robust performance was primarily fueled by sustained growth across its AI-powered lending network. The company continued to deepen relationships with existing lending partners while onboarding new ones, resulting in higher loan originations across auto lending, point-of-sale (POS) financing and personal loans.

Another key contributor has been the company’s diversified funding platform. Pagaya completed multiple oversubscribed asset-backed securities (ABS) transactions during the first half, including its first RPM resecuritization and first AAA-rated PAID resecuritization, while issuing more than $2 billion of ABS in the first quarter alone. The continued ability to access institutional capital at scale enabled the company to fund record loan volumes while demonstrating investor confidence in the quality of its underlying assets.

Management’s confidence in the business outlook was reflected in its raised full-year guidance following the first quarter and continued optimism after the second quarter. Following its impressive second-quarter results, management expects full-year GAAP net income of $155-180 million and adjusted EBITDA of $460-$490 million. With a growing pipeline of lending partners, increasing network adoption, disciplined underwriting and a highly scalable operating model, Pagaya expects to maintain profitable growth through the remainder of 2026.

1H26 Performance of Pagaya’s Peers

Let us see how PGY’s two key peers, LendingTree TREE and Upstart Holdings, Inc. UPST, performed this year.

LendingTree’s first-half 2026 net income per share of $1.90 compared favorably with a loss of 26 cents in the prior-year period. The company reported total revenues of $640.7 million in the first six months of this year, up 30.8% year over year, driven by continued solid performance of the Insurance segment. Total costs increased 23.5% year over year to $587.8 million.

Now, LendingTree expects 2026 revenues of $1.30-$1.32 billion and variable marketing margin of $364-$374 million. TREE expects adjusted EBITDA of $145-$152 million in 2026.

Upstart is scheduled to report second-quarter 2026 results on Aug. 4. In the first quarter of this year, UPST reported revenues of $308 million, up 44% year over year. Revenues from fees were $277 million, up 49% year over year, with platform/referral fees of $224.6 million and servicing/other fees of $52.4 million.

In the first quarter, core personal loans held up against typical seasonality, while secured products scaled rapidly. Auto originations rose more than 300% year over year and grew sequentially on dealer network expansion and product improvements. However, Upstart’s GAAP net loss widened to $6.6 million from a net loss of $2.4 million in the year-ago period.

PGY’s Price Performance, Valuation & Estimate Analysis

Pagaya’s shares have gained 4% in the past six months compared with the industry’s 6% decline.

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The PGY stock is currently trading at a 12-month forward price-to-sales (P/S) of 1.01X, which is below the industry average of 2.78X.

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Over the past 30 days, the Zacks Consensus Estimate for PGY’s 2026 and 2027 earnings has been unchanged at $3.23 and $3.72, respectively. The consensus estimate indicates a 2.4% decline for 2026 and 15.2% growth for 2027. 

Image Source: Zacks Investment Research

Currently, Pagaya carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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