TRANSACTIONS WITH RELATED PARTIES |
6 Months Ended |
|---|---|
Jun. 30, 2026 | |
| Related Party Transactions [Abstract] | |
| TRANSACTIONS WITH RELATED PARTIES | TRANSACTIONS WITH RELATED PARTIES In the ordinary course of business, the Company earns revenues and has outstanding receivable balances from the ABS securitization trusts and to a lesser extent investment funds when these entities purchase network assets. Both the ABS securitization trusts and investment funds are primarily funded with capital from third-party investors. The ABS securitization trusts purchase loans originated by our lending partners using our proprietary technology. Despite the fact that the ABS securitization trusts are primarily funded by third-party investors, these vehicles are considered related parties because Pagaya is the sponsor and administrative agent of the trusts. The investment funds invest in ABS securities as well as whole loans originated by our lending partners using our proprietary technology. Despite the fact that the investment funds are primarily funded by third-party investors, Pagaya is the registered investment advisor of the funds. The Company has not entered into any transactions with directors, principal officers, their immediate families, and affiliated companies in which they are principal shareholders (commonly referred to as related parties). As of June 30, 2026, the fee receivables from related parties are $124.3 million, which consist of $110.9 million from the ABS securitization trusts and $13.4 million from investment funds for which the Company is the registered investment advisor. As of December 31, 2025, the fee receivables from related parties are $106.9 million, which consists of $85.9 million from ABS securitization trusts and $21.0 million from investment funds. As of June 30, 2026 and December 31, 2025, other assets include revolving facilities and other amounts due from related parties of $46.9 million and $42.6 million, respectively, all of which were attributable to the ABS securitization trusts and investment funds. For the three months ended June 30, 2026, the total revenue from related parties is $231.4 million, which consists of $227.5 million from the ABS securitization trusts and $3.9 million from investment funds. For the six months ended June 30, 2026, the total revenue from related parties is $390.3 million, which consists of $382.0 million from the ABS securitization trusts and $8.3 million from investment funds. For the three months ended June 30, 2025, the total revenue from related parties is $146.6 million, which consists of $137.9 million from the ABS securitization trusts and $8.7 million from investment funds. For the six months ended June 30, 2025, the total revenue from related parties is $314.5 million, which consists of $297.0 million from the ABS securitization trusts and $17.5 million from investment funds. During the three and six months ended June 30, 2026, the Company purchased approximately $7.8 million and $16.0 million of loan principal from the ABS securitization trusts. These repurchases resulted in a net loss of approximately $3.1 million for both the three and six months ended June 30, 2026. During the three and six months ended June 30, 2025, the Company purchased approximately $2.0 million and $5.8 million, respectively, of loan principal from the ABS securitization trusts and included a loss of approximately $1.9 million and $5.4 million, respectively.
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