Pagaya Technologies Gains Momentum After Strong Earnings Partnerships And Expansions

The company’s Q2 results have exceeded expectations, and its strategic moves are gaining a positive outlook among investors.

The Israel-based company listed on NASDAQ, Pagaya Technologies Ltd. (NASDAQ:PGY), deploys proprietary AI and machine learning platforms for optimizing B2B lending. It partners with financial institutions and fintech, underwriting loans, including second-look consumer credit for underserved segments. Recently, the company partnered with Klarna and issued its first $300 million bond backed by BNPL loans.

In its Q2 2025 earnings results, Pagaya Technologies Ltd. (NASDAQ:PGY) announced an EPS of $0.64, surpassing the forecasted $0.13, representing a surprise of 392.31%. Revenue also exceeded projections, reaching $326 million against an anticipated $311.96 million.

During the quarter, Pagaya Technologies Ltd. (NASDAQ:PGY) successfully recorded $2.3 billion across six ABS transactions and expanded its funding network by 10 new investors. The total funding partners currently stands at 145. Additionally, on July 14, 2025, the company entered a new forward flow agreement with Castlelake. The agreement sets a purchase of up to $2.5 billion in Personal Loans over 16 months, increasing capacity to approximately $5 billion since the end of 2024.

With a significant short float of 23.82% signaling elevated bearish bets, Pagaya Technologies Ltd. (NASDAQ:PGY) exudes a strong potential for a short squeeze if bullish momentum gains traction.

While we acknowledge the potential of PGY as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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