v3.26.1
INVESTMENTS (Tables)
 12 Months Ended
Dec. 31, 2025
Investments, Debt and Equity Securities [Abstract]  
Schedule of Debt Securities, Available-for-Sale Below is a disaggregated presentation of our investments in loans and securities, including fair value adjustments, accrued interest income and net of the allowance for credit losses, as applicable (in thousands):
Carrying Value
December 31, 2025December 31, 2024
Investments in securities, available for sale
Securitization notes, available for sale (1)
$395,717 $240,273 
Securitization certificates, available for sale (1)
471,661 533,243 
Total867,378 773,516 
Investments in loans and securities under the fair value option
Securitization notes (1)12,473 — 
Securitization certificates (1)60,840 — 
Other loans
4,578 — 
Total77,891 — 
Investments in loans, at amortized cost
Other loans, at amortized cost
— 4,893 
Total investments in loans and securities$945,269 $778,409 
(1) $504.3 million and $414.8 million were held by the Company for regulatory risk retention purposes as of December 31, 2025 and 2024, respectively.
The amortized cost, gross unrealized gains and losses and fair value of Investments in Securities Available for Sales (“AFS securities”) as of December 31, 2025 and 2024 were as follows (in thousands). The Company has determined that it is the primary beneficiary of certain VIEs that were established to purchase investments in Pagaya sponsored ABS notes and certificates. The portion of these consolidated VIEs that the Company does not own, is accounted for as noncontrolling interest in the consolidated financial statements. Refer to Note 6 for additional information.
As of December 31, 2025
Investments in securities, available for sale(1):
Amortized
Cost		Gross
Unrealized
Gains		Gross Unrealized Non-Credit Related AdjustmentsAllowance for Credit LossesFair
Value
Securitization notes$395,216 $970 $(469)$— $395,717 
Securitization certificates874,170 6,489 (23,120)(385,878)471,661 
Total$1,269,386 $7,459 $(23,589)$(385,878)$867,378 
(1) Includes accrued interest receivable of $25.8 million.
As of December 31, 2024
Investments in securities, available for sale(2):
Amortized
Cost		Gross
Unrealized
Gains		Gross Unrealized Non-Credit Related AdjustmentsAllowance for Credit LossesFair
Value
Securitization notes$240,396 $386 $(509)$— $240,273 
Securitization certificates1,048,734 7,926 (14,676)(508,741)533,243 
Total$1,289,130 $8,312 $(15,185)$(508,741)$773,516 
(2) Includes accrued interest receivable of $13.7 million, previously reported within “Fee receivables” as of December 31, 2024, has been reclassified to conform to the current period’s presentation.
The following table sets forth the amortized cost and fair value of AFS securities by contractual maturities, as of the date indicated (in thousands):
As of December 31, 2025
Within 1 yearGreater than 1 year, less than or equal to 5 yearsTotal
Investments in securities, available for sale:(1):
Amortized CostFair ValueAmortized CostFair ValueAmortized CostFair Value
Securitization notes$15,279 $15,602 $379,938 $380,115 $395,217 $395,717 
Securitization certificates42,698 13,495 831,471 458,166 874,169 471,661 
Total
$57,977 $29,097 $1,211,409 $838,281 $1,269,386 $867,378 

As of December 31, 2024
Within 1 yearGreater than 1 year, less than or equal to 5 yearsTotal
Investments in securities, available for sale:(1)(2):
Amortized CostFair ValueAmortized CostFair ValueAmortized CostFair Value
Securitization notes$9,907 $9,903 $230,489 $230,370 $240,396 $240,273 
Securitization certificates11,554 11,554 1,037,180521,6891,048,734533,243
Total
$21,461 $21,457 $1,267,669 $752,059 $1,289,130 $773,516 

(1) Based on contractual maturities of corresponding repurchase agreements. See Note 8 for additional information.
(2) Includes accrued interest receivable of $13.7 million, previously reported within “Fee receivables” as of December 31, 2024, has been reclassified to conform to the current period’s presentation.
Schedule of Debt Securities, Available-for-Sale, Unrealized Loss Position, Fair Value
The following tables set forth the fair value and gross unrealized losses on investments in AFS securities without an allowance for credit losses aggregated by investment category and length of time that individual securities had been in a continuous unrealized loss position, as of the dates indicated (in thousands):

As of December 31, 2025
Less than or equal to 1 yearGreater than 1 yearTotal
Investments in securities, available for sale:
Fair ValueUnrealized LossesFair ValueUnrealized LossesFair ValueUnrealized Losses
Securitization notes$36,797 $(442)$5,504 $(27)$42,301 $(469)

As of December 31, 2024
Less than or equal to 1 yearGreater than 1 yearTotal
Investments in securities, available for sale:
Fair ValueUnrealized LossesFair ValueUnrealized LossesFair ValueUnrealized Losses
Securitization notes$66 $(1)$27,295 $(508)$27,361 $(509)
Schedule of Realized Gain (Loss)
The following table sets forth gross proceeds and related investment gains and losses, as well as losses on write-downs and the allowance for credit losses of AFS securities, for the periods indicated (in thousands):
Year Ended December 31,
20252024
Investments in securities, available for sale:
Proceeds from sales/maturities/prepayments$321,848 $242,285 
Gross investment gains from sales(9,339)(7,922)
Reductions (additions) to allowance for credit losses
122,863 (410,062)
Schedule of Debt Securities, Available-for-Sale, Allowance for Credit Loss
The following tables set forth the activity in the allowance for credit losses for AFS securitization certificates, as of the dates indicated (in thousands):

Year Ended December 31,
Investments in securitization certificates, available for sale:
20252024
Balance, beginning of period$(508,741)$(98,679)
Additions to allowance on securities without a previous allowance
(90,401)(347,189)
Reductions for securities redeemed, prepaid or sold during the period
242,393 — 
Additions to allowance on securities with a previous allowance
(29,129)(62,873)
Balance, end of period$(385,878)$(508,741)
Schedule of Investments in Securities Elected for Fair Value Option
The following table presents activities of investments in securities for which we elected the fair value option. See Note 10 for the assumptions used in our fair value model (in thousands):

Year Ended December 31,
Investments in securities under the fair value option20252024
Balance, beginning of period$— $— 
Purchases78,358 — 
Principal payments(27,313)— 
Change in fair value22,268 — 
Balance, end of period (1)
$73,313 $— 
(1) The balance excludes $4.6 million of other loans accounted for under the fair value option.
The following tables summarize the activity related to the fair value of the investments in loans and securities for the year ended December 31, 2025 and 2024 (in thousands):
Balance as of December 31, 2023$624,073 
Transfer from level 210,469 
Additions607,398 
Cash received(180,567)
Gain on sale of investments in loans and securities7,920 
Change in accrued interest on investments12,921 
Change in fair value(13,858)
Credit-related impairment loss(410,060)
Balance as of December 31, 2024$658,296 
Transfer from level 242,577 
Additions550,154 
Cash received(294,467)
Gain on sale of investments in loans and securities 12,417 
Loss on sale of investments in loans and securities(26,836)
Change in accrued interest on investments40,083 
Change in fair value(9,746)
Credit-related impairment loss(94,924)
Balance as of December 31, 2025$877,554 
Schedule of Equity Method and Other Investments
The following investments, including those accounted for under the equity method, are included within Equity method and other investments in the consolidated balance sheets as of December 31, 2025 and December 31, 2024 (in thousands):

Carrying Value
December 31, 2025December 31, 2024
Investments in Pagaya SmartResi F1 Fund, LP (1)$8,324 $12,530 
Other (2)5,194 9,403 
Total$13,518 $21,933 

(1) The Company owns approximately 5.4% and is the general partner of Pagaya Smartresi F1 Fund LP.
(2) Represents the Company’s proprietary investments. Income (loss) from these investments is included in Investment (loss) income in the consolidated statements of operations.