Pagaya Technologies trades at deep-value valuation while delivering 67% operating income growth and raising full-year guidance

In Q1, Pagaya generated $317 million in revenue (up 10% year over year), with $299 million (94%) from loan placement fees. Operating income rose 67% to $80 million, and net income spiked 212% to about $25 million.

Pagaya uses AI to match rejected loan requests from banks with alternative lenders in its network, specializing in non-prime loans. It recently signed a deal with Sezzle to provide point-of-sale lending for its BNPL platform.

The company raised its 2026 guidance to $11.45 billion–$13 billion in network volume (from $10.5 billion in 2025) and $110 million–$160 million in net income. All 10 Wall Street analysts covering Pagaya rate it a buy, with a median price target of $25 per share, suggesting 86% upside.