8-K: Pagaya Technologies Details Borrower Data

Pagaya Technologies Ltd. disclosed historical borrower characteristics, highlighting key metrics for personal and auto loan portfolios.

Summary

• Pagaya Technologies Ltd. (the Company) filed an 8-K to disclose information regarding the historical characteristics of borrowers facilitated through its network.
• The filing includes detailed data on personal loan portfolios, showing vintage performance metrics such as Weighted Average Coupon (WAC), Loan Size, Credit Score, Annual Income, Debt-to-Income (DTI), and Payment-to-Income (PTI).
• Data for personal loans indicates a WAC around 20-22% across vintages from Q1 2021 to Q2 2026, with average loan sizes increasing from approximately $8,000 to over $11,000.
• The weighted average credit score for personal loans remained in the mid-600s, with DTI ratios generally in the low to mid-20s and PTI in the high single digits.
• The filing also presents an overview of the auto loan portfolio, with similar vintage data including WAC, Original Term, Credit Score, Loan-to-Value (LTV), DTI, PTI, Vehicle Mileage, Annual Income, and Vehicle Age.
• Auto loan data shows a WAC around 20-21% for most vintages, with a weighted average credit score in the high 500s to low 600s.
• Average loan size for auto loans is approximately $37K, with a weighted average LTV of 124% and an average borrower annual income of $88K.
• The data provided is as of July 2026 and covers vintages from Q1 2021 through Q2 2026.

Sentiment

Score: 7

Explanation: StockSavvy.ai views this as a moderately positive disclosure, providing detailed historical borrower data that supports the company's risk assessment and underwriting capabilities, though it lacks forward-looking financial guidance.

Positives

• Provides transparency into the historical credit quality of borrowers on Pagaya's network, supporting its underwriting model.
• Detailed data on personal and auto loan portfolios allows for a granular assessment of risk characteristics.
• Demonstrates consistent WAC in the ~20% range for both loan types across multiple vintages.
• Shows an increase in average loan size for personal loans over time.
• Highlights a weighted average credit score in the mid-600s for personal loans and high 500s/low 600s for auto loans, indicating a defined risk profile.
• The data is presented with clear definitions for all metrics used.

Negatives

• The filing is a Regulation FD disclosure and does not contain updated financial statements or forward-looking guidance.
• No specific performance metrics (e.g., delinquency rates, default rates) are provided, only borrower characteristics.
• The data is historical and does not offer insights into current or future portfolio performance.
• The auto loan portfolio shows a high weighted average LTV of 124%, indicating significant leverage for borrowers.

Risks

• The high LTV in the auto loan portfolio could increase default risk if vehicle values decline or borrower income is impacted.
• Economic downturns or rising interest rates could negatively affect the repayment capacity of borrowers with existing DTI and PTI ratios.
• The credit scores, while within a defined range, are not exceptionally high, suggesting a segment of the borrower base is more susceptible to credit events.

Future Outlook

No specific forward-looking statements or guidance were provided in this filing, as it solely focuses on historical borrower data.

Industry Context

StockSavvy.ai notes that providing detailed historical borrower data is a common practice for fintech lenders to demonstrate underwriting capabilities and risk management to investors, especially in a market sensitive to credit quality.

Comparison to Industry Standards

• The weighted average credit score for personal loans (mid-600s) is generally in line with what might be expected for a non-prime or near-prime lending segment.
• The DTI ratios for personal loans (low to mid-20s) appear reasonable, though they can be sensitive to economic shifts.
• The auto loan LTV of 124% is notably high compared to traditional auto lending standards, which often aim for LTVs below 100% to mitigate risk.
• The WAC for both portfolios is competitive, reflecting current market interest rate environments for these borrower segments.

Stakeholder Impact

• Shareholders: Gain insight into the underlying credit quality of the company's facilitated loan network, aiding investment decisions.
• Creditors/Investors: The data provides a basis for assessing the risk profile of the loan pools originated through Pagaya's platform.
• Regulators: Transparency into borrower characteristics can be relevant for oversight of lending practices.

Key Dates

Keywords

borrower characteristics, personal loans, auto loans, credit score, loan-to-value, debt-to-income, weighted average coupon, vintage data