Pagaya Technologies Ltd. (NASDAQ:PGY) shares plunged more than 20% in premarket trading on Monday after the company reported fourth-quarter results that beat earnings expectations but missed on revenue and came with weaker-than-expected guidance.
Pagaya posted adjusted earnings of $0.80 per share for the fourth quarter, well ahead of the analyst consensus of $0.35. Revenue, however, totaled $334.8 million, falling short of expectations of $348.75 million. Compared with the same quarter a year earlier, revenue rose 20% year over year, while network volume increased 3% to $2.7 billion.
The sharp sell-off appeared to be driven by investor concern over the revenue shortfall and the company’s near-term outlook. For the first quarter of 2026, Pagaya forecast revenue in the range of $315 million to $335 million, below the $344 million consensus estimate.
“Our fourth quarter and full-year results demonstrate, again, the benefits of years of work to position our company for long-term durable growth with a focus on increasing profitability, benefitting from our prior investments across the entire enterprise,” said Gal Krubiner, CEO and Co-Founder of Pagaya.
On a GAAP basis, Pagaya reported net income attributable to shareholders of $34 million for the quarter, a significant turnaround from a loss in the prior-year period. Adjusted EBITDA climbed 53% year over year to $98 million.
Looking ahead to full-year 2026, the company expects network volume of between $11.25 billion and $13.0 billion, with total revenue projected in a range of $1.4 billion to $1.575 billion. Pagaya also guided for GAAP net income of $100 million to $150 million for the year.