Pagaya Technologies saw its share price drop 24% on Monday after reporting disappointing quarterly results. Despite the decline, the company’s earnings reached $335 million, a 20% increase year-over-year. However, network volume only grew by 3%, to $2.7 billion.
The discrepancy between top- and bottom-line growth rates has been attributed to Pagaya’s exit from its single-family rental business. Analysts had expected higher revenue of around $349 million but were pleased with the company’s adjusted net income of $0.35 per share.
Pagaya provided updated guidance for the current quarter and 2026, projecting flat or slightly decreased network volume and revenue. Analyst estimates are lower than Pagaya’s projections, indicating a potential sell-off may be unwarranted.
The author believes that despite the poor numbers, they may not be justified due to Pagaya’s strategic shifts. The writer remains optimistic about buying the stock, considering its recent exit from a significant business.
Source: https://www.fool.com/investing/2026/02/09/why-pagaya-technologies-stock-plummeted-by-almost