Pagaya Technologies Ltd.

Pagaya Technologies Ltd. added fintech and payments veteran Jason Gardner, founder of Marqeta Inc., to its Board of Directors following shareholder approval at the August annual meeting. Gardner's background in building and scaling payments platforms brings additional industry-specific governance expertise that could influence how Pagaya develops and commercializes its AI-driven financial technology offerings. His appointment does not materially alter the company's immediate drivers, but it modestly strengthens governance and payments expertise around how Pagaya builds and rolls out its products. The move comes alongside Pagaya's addition to the Zacks Rank #1 (Strong Buy) list, following a double digit increase in earnings estimates, a recognition based on improving earnings expectations and a low price to earnings multiple relative to peers. Pagaya's narrative projects $2.0 billion revenue and $394.6 million earnings by 2029, yielding a $28.80 fair value, a 41% upside to its current price, while some of the lowest analysts expect around US$2.1 billion in 2029 revenue and US$421.7 million in earnings.

Pagaya Technologies has entered a new forward flow agreement covering up to US$700 million of auto loans, a deal that could support higher volumes and shape how investors view the timing and durability of future profits. The agreement has sharpened interest in the business, though the stock still trades at a discount on an earnings framework, at around 13.9x earnings versus a wider Software industry average of about 29.5x and a peer group on roughly 41.6x. Over the past 5 years the stock has fallen 82.8%, and community views on Pagaya split sharply, with one camp seeing a discounted AI infrastructure play and the other highlighting valuation and cycle risks. One bull case puts Pagaya Technologies at 68% undervalued, while a bear case puts it at 70% overvalued. The key question for shareholders is whether the risks around Pagaya's funding model and loan exposure justify the lower P/E or whether the gap is too wide.

Pagaya Technologies announced a new forward flow agreement with Neuberger Specialty Finance, the Asset Based Finance arm of Neuberger, for the purchase of up to $700 million of auto loans sourced through Pagaya's network of auto lending partners. The deal marks Pagaya's first forward flow agreement with Neuberger and its second auto forward flow agreement overall, extending a partnership that currently spans multiple capital markets and financing transactions. NBSF manages over $5 billion across more than 50 portfolio companies and various investment vehicles since the strategy's inception in 2018, and is led by Peter Sterling, with cumulative investments of more than $16 billion through 80 global origination partners. Pagaya Chief Financial Officer Jon Dobres said the committed capital reinforces the company's diversified range of funding solutions and provides predictable, long-term capacity. Last quarter, Pagaya's auto network volume grew to an annualized run-rate of $4.8 billion, contributing more than 75% of Pagaya's year-over-year network volume growth. Pagaya's AI-driven technology connects more than 35 lending partners with institutional investors across personal loans, auto loans and point-of-sale, leveraging a data network built on over $4 trillion in processed applications since inception.

Pagaya Technologies closed an upsized $800 million AAA-rated personal loan ABS transaction named PAID 2026-4, drawing 39 unique investors. The deal brings the company's year-to-date personal loan ABS issuance to nearly $4 billion and marks its third upsized personal loan ABS transaction this year. Total issuance since 2018 now stands at $40 billion across 91 ABS deals backed by more than 165 institutional investors. Collateral for the latest deal included personal loans from new network partners Upstart and Achieve.