(MENAFN - Investor Ideas) Investorideas , a go-to platform for big investing ideas, including AI and tech stocks reports on trading for Pagaya Technologies Ltd. (NASDAQ: PGY), a global technology company delivering artificial intelligence infrastructure for the financial ecosystem.

Yesterday Pagaya announced financial results for the third quarter and nine months ended 2024.

The stock is being sold off by investors on the news, currently trading at $10.98, down 5.91. losing 35.02% on volume of over 10 Million shares. The stock has a day's range of 10.21 - 12.00 as of this report.

"We delivered another set of strong results, with a laser-focus on profitable, sustainable growth," said Gal Krubiner, co-founder and CEO of Pagaya Technologies. "With successful execution of our 2024 strategy, we are well on the way to reaching GAAP profitability and cash flow generation during 2025. We have built a franchise that we believe can deliver long-term value for our shareholders, lending and funding partners, and U.S. consumers."

Third Quarter 2024 Highlights

All comparisons are made versus the same period in 2023 and on a year-over-year basis unless otherwise stated.

Network volume of $2.4 billion (in line with outlook of $2.3 billion to $2.5 billion) grew by 11% year-over-year.

Continued to grow volumes with existing partners and advance our sales pipeline. Growth of existing partners led to personal loan network volume growth of 15% and point-of-sale ("POS") network volume growth of 67% year-over-year. The onboarding of a top 5 bank by total assets in our POS vertical continues to progress. Elavon, U.S. Bank's POS business, is now live on the Pagaya network.

Record total revenue and other income of $257 million (in line with outlook of $250 million to $260 million) increased by 21% year-over-year, driven by a 24% increase in revenue from fees.

GAAP operating income of $22 million grew by $22 million year-over-year.

Record fee generation and operating leverage as we drive profitable growth. FRLPC as a % of network volume reached a record 4.3%, reflecting the growing value we are delivering for our lending partners. Ongoing operating leverage is enhancing flow-through of fees to our bottom-line, with core operating expenses as a % of FRLPC reaching its lowest level since the Company went public, at 52%.

Net loss attributable to Pagaya shareholders of $67 million was impacted by non-cash items such as fair value adjustments and share-based compensation expense.

Record adjusted EBITDA of $56 million (in line with outlook of $50 million to $60 million) grew $28 million year-over-year, with Adjusted EBITDA margin up 846 basis points to 21.8%.

Adjusted net income of $33 million, which excludes the impact of non-cash items such as share-based compensation expense and fair value adjustments, grew by $19 million year-over-year.

Reached our lowest risk retention level in 2 years, at 2-3% of network volume by the end of the third quarter, as the result of structural improvements in our ABS program and broadening our funding sources to capital-efficient channels such as forward flow, pass-through certificate programs, and managed funds.

Announced transactions to de-risk the balance sheet and reduce interest expense, by refinancing high-cost borrowings and unlocking additional balance sheet liquidity of up to $100 million in the form of excess cash and the release of high-quality collateral.

Cash flow from operating activities of ($2) million was impacted by one-time items.

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