Pagaya Technologies Ltd. Class A Ordinary Shares CG 46th Annual Growth Conference

Thank you. Great. Great to be here.

Sure. And thanks again for having us again this year. It has been a great conference. We have had a great set of meetings Great today so far.

Pagaya, at its core, is a technology solution that enables our bank, fintech, and just broader lending partners to convert a greater portion of their potential borrower flow. So what does that mean? We have created a network that connects, on the one side today, about 35 lending partners with very large pools of institutional capital. In the middle of that network is our well-honed, over time, AI decisioning engine. So we are obviously deciding on the loans originating from these lending partners and funding off balance sheet with these very large pools of capital. Currently, Pagaya is about $14 billion of run rate of consumer loans in personal loans, auto, and point-of-sale. Our net income last quarter was $45 million, which has scaled each of the last six quarters since we went net income positive.

We will exit this year with a $200 million GAAP net income run rate, which we are very excited about. But taking a step back, I think more about what Pagaya should be and will grow into. There is no reason why every lender, every bank in the U.S. shouldn't be a part of our network. And it is not because we are good at selling them, it is because the economics of it are undeniable. All we are doing for all of these banks, financial institutions, generally speaking, are bringing in more customers improving their relationships with the customers, and monetizing those customers for our partners.

If Ally or U.S. Bank, for example, originates a loan that we help facilitate, even though we're taking, and when I say we, again, this is mostly off balance sheet, even though we're taking the credit risk away from them, they're still getting the customer relationship.

They're still monetizing the customer in some way. It may be an origination fee at first, a servicing revenue stream that hits their ROE directly because there's no capital set aside against it. In the auto situation, they're improving their relationship with their dealer networks.

For point of sale, they're bringing a more holistic solution to their merchant networks. When I think about Pagaya on the whole, our opportunity is truly massive. We have 35 partners today. There's no reason why that shouldn't be double over time. When we think about our pipeline and just who we've onboarded this year, we see a trajectory to that level. What do each of those partners mean to us? A scaled partner, for us, is $30 million plus of essentially contribution margin on an annual basis. It takes a year or so for a partner to scale, so that's not day one.

When you think about the types of companies out there that have such deep, entrenched relationships as a service provider to financial institutions and can bring that much in terms of revenue and bottom line from each new relationship, when you extrapolate out our growth, it's really quite powerful.

Yeah. So Q2 to us, and it's been 2026 in general, but really started to click in Q2, is proof positive, I think, of what we've been saying really about our product-led growth strategy and how we grow, frankly, for most of the past 2 years. If you think about what we said at the beginning of the year, we looked at the macro, we looked at the consumer, and we saw a strong consumer. However, what we also thought is if macro conditions deteriorate, if inflation remains persistent, where would we see stress in what we're originating? And we identified in our riskiest 2 credit tiers, which tend to have a lower-income borrower, if stress leaks into the market, again, we weren't seeing it at the time, but if stress leaked in, those would be the credit tiers most affected.