Pagaya is a profitable AI credit-infrastructure platform trading like a cyclical lender despite strong operating leverage, expanding auto/POS growth, and meaningful upside if capital markets remain open.
Overview
Pagaya is an AI-driven credit infrastructure platform connecting lenders with institutional capital rather than operating as a traditional balance-sheet lender. Its APIs help banks monetize declined or near-prime borrowers while avoiding incremental credit risk. Revenue is primarily transaction-fee based through FRLPC, supplemented by interest income and ABS execution fees. The company serves banks, fintechs, auto lenders, and over 165 institutional capital partners, positioning itself as a capital-light network layer for consumer credit and real estate assets.