Pagaya Technologies Targets Major Auto and Bank Partners as New Deals Ramp Up in 2027

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Pagaya Technologies (NASDAQ:PGY) expects recently signed lending partners to begin contributing material loan volume in the second half of 2027, while it pursues a large auto…

Pagaya Technologies (NASDAQ:PGY) expects recently signed lending partners to begin contributing material loan volume in the second half of 2027, while it pursues a large auto manufacturer and another large bank as potential partners, Chief Financial Officer Jon Dobres said at a company discussion.

Dobres said Pagaya has more than 35 lending partners across personal loans, auto loans and point-of-sale financing. Its network produced a run rate of approximately $14 billion in funded loans over the past 12 months and a $200 million run rate of GAAP net income, he said.

The CFO said most of Pagaya's new partners this year were in personal loans, including Citizens, while FNBO was a point-of-sale addition. New relationships typically ramp slowly because Pagaya wants to observe actual loan performance before increasing volume, he said.

Dobres said Pagaya limited originations in its riskiest tiers around the end of 2025 and beginning of 2026, not because it was seeing pressure in those tiers but because lower-income borrowers are more exposed to persistent inflation.

Pagaya's personal loan originations now have average borrower income of approximately $120,000 to $125,000 and average FICO scores in the high 600s, he said. Dobres said the company's credit stance has not changed since the earlier adjustment and that he is comfortable with current underwriting and performance.

In auto lending, Pagaya grew this year without adding a material number of new partners, Dobres said. He attributed growth in part to working with existing lenders, including Ally, to reach borrower groups beyond applicants those lenders had initially declined.

Dobres said Pagaya feels comfortable that it will add a large auto original equipment manufacturer in the first half of 2027. He also said the company feels good about adding another large bank for personal loans during 2027, though he did not name either prospective partner.

In point-of-sale lending, Dobres expects initial growth in 2027 to come…

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