| Schedule of Earnings Per Share, Basic and Diluted |
The following tables set forth the calculation of basic and diluted earnings per share attributable to ordinary shareholders for the three and six months ended June 30, 2026 and 2025 (in thousands, except share and per share data): | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended June 30, | | Six Months Ended June 30, | | 2026 | | 2025 | | 2026 | | 2025 | | Basic EPS: | | | | | | | | | Numerator: | | | | | | | | | Net income attributable to Pagaya Technologies Ltd. | $ | 45,273 | | | $ | 16,655 | | | $ | 69,967 | | | $ | 24,548 | | | Less: Undistributed earnings allocated to preferred shares | 1,077 | | 1,017 | | 1,670 | | 1,509 | | Net income attributable to Pagaya Technologies Ltd. ordinary shareholders, basic | $ | 44,196 | | | $ | 15,638 | | | $ | 68,297 | | | $ | 23,039 | | | Denominator: | | | | | | | | | Weighted average shares used for earnings per ordinary share, basic | 83,184,935 | | 76,873,529 | | 82,926,257 | | 76,347,801 | | Earnings per share attributable to ordinary shareholders, basic | $ | 0.53 | | | $ | 0.20 | | | $ | 0.82 | | | $ | 0.30 | | | | | | | | | | | Diluted EPS: | | | | | | | | | Numerator: | | | | | | | | | Net income attributable to Pagaya Technologies Ltd. ordinary shareholders, diluted | $ | 44,196 | | | $ | 15,638 | | | $ | 68,297 | | | $ | 23,039 | | | Interest expense (add back) from exchangeable notes, net of tax (1) | 3,131 | | | — | | | 6,028 | | | — | | | Net income for diluted EPS | $ | 47,327 | | | $ | 15,638 | | | $ | 74,325 | | | $ | 23,039 | | | Denominator: | | | | | | | | | Shares used in computation of basic earnings per share | 83,184,935 | | | 76,873,529 | | | 82,926,257 | | | 76,347,801 | | | Assumed conversion of shares from exchangeable notes (1) | 11,434,704 | | | — | | | 11,434,704 | | | — | | | Ordinary share warrants | 785,284 | | | 785,289 | | | 785,385 | | | 785,062 | | | Share options | 1,202,770 | | | 705,685 | | | 1,313,324 | | | 289,132 | | | RSUs | 639,886 | | 1,264,668 | | 503,751 | | 852,798 | | Employee stock purchase plan | — | | | 38,464 | | — | | | 26,317 | | Weighted average shares used for earnings per ordinary share, diluted | 97,247,579 | | | 79,667,635 | | | 96,963,421 | | | 78,301,110 | | | Earnings per share attributable to ordinary shareholders, diluted | $ | 0.49 | | | $ | 0.20 | | | $ | 0.77 | | | $ | 0.29 | |
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| Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share |
The following potentially dilutive outstanding securities as of June 30, 2026 and 2025 were excluded from the computation of diluted earnings per share because their effect would have been anti-dilutive for the periods:
| | | | | | | | | | | | | | | | | | | June 30, | | | 2026 | | 2025 | | | Share options | | 836,760 | | | 914,710 | | | | | Options to restricted shares | | 19,883,294 | | | 19,909,511 | | | | | RSUs | | 484,281 | | | 82,509 | | | | | Ordinary share warrants | | 1,229,166 | | | 1,229,166 | | | | | | | | | | | | Exchangeable notes | | — | | | 11,434,704 | | | | | Total | | 22,433,501 | | | 33,570,600 | | | |
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