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Pagaya Shares Jump as Q3 Profit and Cash Flow Beat Drive Guidance Raise

Management raised 2025 targets to reflect a beat-driven swing to GAAP profit.

Overview

  • Q3 revenue rose 36% year over year to $350.17 million, topping consensus by about 3%.
  • Adjusted EPS came in at $1.02 versus expectations around $0.62–$0.66, while GAAP EPS was $0.23 with net income attributable to shareholders of $22.5 million.
  • Payments volume increased 19% to $2.8 billion as related fee revenue expanded 36%, supporting the top-line growth.
  • Year to date, operating cash flow reached $158.8 million and free cash flow totaled $148 million, helped by $10.8 million in capital spending.
  • Full‑year guidance was lifted to $1.30–$1.325 billion in revenue and $72–$82 million in net income, with Q4 outlook set at $333–$358 million in revenue and $25–$35 million in net income, and the stock logged double‑digit gains across two sessions.