Financial Analysis

BUSINESS COMBINATIONS Acquisition of Darwin Homes, Inc. On January 5, 2023 (Darwin acquisition date), the Company completed the acquisition of Darwin Homes, Inc. (Darwin), a leading real estate investment management platform based in Austin, Texas that offers a comprehensive, tech-enabled solution for acquiring, renovating, and managing single-family rental properties. Darwin is a wholly-owned subsidiary of the Company and the results of Darwin for the period from January 5, 2023 to December 31, 2023 are included in the Companys results of operations for the year ended December 31, 2023. Pro forma results of operations have not been presented because the effects of the acquisition was not material to the Company's consolidated statements of operations. The Company acquired 100% of Darwins equity through an all-stock transaction with a market value of approximately $18 million as of the Darwin acquisition date. In addition to the purchase consideration, the Company also granted approximately $12 million of cash and equity awards to Darwin employees which are recognized as compensation expense over their requisite service periods. Acquisition related costs of $0.1 million were expensed as incurred and are included in general and administrative expenses in the consolidated statement of operations. Darwin Net Assets Acquired The assets acquired and liabilities assumed have been included in the consolidated financial statements as of the Darwin acquisition date. Total assets acqui …

BusinessCombinationDisclosureTextBlock · excerpt; the full note is in the filing

COMMITMENTS AND CONTINGENCIES Legal Proceedings From time to time the Company is subject to legal proceedings and claims in the ordinary course of business. The results of such matters often cannot be predicted with certainty. In accordance with applicable accounting guidance, the Company establishes an accrued liability for legal proceeding and claims when those matters present loss contingencies which are both probable and reasonably estimable. All such liabilities arising from current legal and regulatory matters, to the extent such matters existed, have been recorded in accrued expenses and other liabilities on the consolidated balance sheets and these matters are immaterial. Contractual Obligations and Commitments From time to time, the Company entered into a purchase commitment with our third-party cloud computing web services provider. As of December 31, 2025, the total remaining contractual obligations are approximately $10.7 million, of which $6.3 million is for the next 12 months. The Company may pay more than the minimum purchase commitment based on usage. Additionally, the Company has contractual obligations related to its lease for corporate office space. See Note 14 for details regarding when these obligations are due. In October 2024, the Company completed the acquisition of Theorem Technology, Inc. (Theorem), a Silicon Valley-based institutional asset manager focused exclusively on the consumer credit space, managing assets for global institutional investors s …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

BORROWINGS The following table sets forth the Companys outstanding borrowings as of the date indicated (in thousands): December 31, 2025 December 31, 2024 Secured borrowing $ 193,892 $ 176,089 Exchangeable notes $ 148,782 $ 146,342 Long-term debt $ 481,598 $ 321,317 The Company was in compliance with all covenants as of December 31, 2025 and December 31, 2024. Secured Borrowing Secured borrowings are comprised of risk retention master repurchase agreements and receivable facilities. Interest expenses related to secured borrowings totaled $22.2 million for the year ended December 31, 2025, compared to $47.1 million for the year ended December 31, 2024. During the third quarter of 2025, the Company has repaid $153.9 million of secured borrowing, following the issuance of the 2030 Notes. As a result of these transactions, the Company has incurred a loss of $1.4 million related to the write-off of deferred issuance costs reported within Gains and (losses) from extinguishment of debt in the consolidated statements of operations. The following table sets forth the Companys outstanding secured borrowings as of the date indicated (in thousands, except percentage): December 31, 2025 December 31, 2024 Outstanding Balance Interest Rate (1) Outstanding Balance Interest Rate (1) Risk Retention Master Repurchase - Recourse $ 53,722 13% $ 115,298 17% Risk Retention Master Repurchase - Non-Recourse 53,584 6% 28,987 7% Receivables Facility - Recourse 22,427 8% % Receivables Facility - Non-Rec …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

Year Ended December 31, 2025 2024 2023 (in thousands) Services transferred at a point in time $ 1,120,513 $ 949,025 $ 734,924 Services transferred over time 140,828 55,525 37,890 Total revenue from fees, net $ 1,261,341 $ 1,004,550 $ 772,814

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"SHARE BASED COMPENSATION Share Options Granted share options expire at the earlier of termination of employment or ten years from the date of grant. Share options generally vest over four years of the employment commencement date or with 25% vesting on the twelve-month anniversary of the employment commencement date, and the remaining on a pro-rata basis each quarter over the next three years. Any options, which are forfeited or not exercised before expiration, become available for future grants. The following table summarizes the Companys share option activity during the year ended December 31, 2025: Number of Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value (000s) Balance, December 31, 2024 4,042,901 $ 7.5 6.7 $ 7,335 Granted 2,500 9.7 Exercised (734,988) 7.2 Forfeited (112,700) 32.2 Balance, December 31, 2025 3,197,713 $ 6.7 5.7 $ 45,031 Vested and exercisable, December 31, 2025 2,647,978 $ 5.0 5.1 $ 41,795 The weighted-average grant date fair value of employee options granted, aggregate intrinsic value of options exercised, and fair value of share options vested for the year ended December 31, 2025 was $9.67, $9.6 million and $7.9 million, respectively. Share-based compensation expense is based on the grant-date fair value on a straight-line basis for graded awards with only service conditions, which is generally the option vesting term of four years. The fair value of each option on the date of grant i …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

FAIR VALUE MEASUREMENT FASB ASC 820, Fair Value Measurements and Disclosures (ASC 820), defines fair value, establishes a framework for measuring fair value under generally accepted accounting principles, and requires certain disclosures about fair value measurements. In general, fair values of financial instruments are based upon quoted market prices, when available. If such quoted market prices are not available, fair value is based upon a discounted cash flow model that uses, as inputs, observable market-based parameters to the greatest extent possible. The Company determines the fair value of its financial instruments and conducts an ongoing assessment of the techniques used to ensure their appropriateness, consistent application and the reasonableness of the assumptions. In determining the fair value of each investment security and loan, the Company reviews performance characteristics of the underlying loan pool including origination vintage, borrower credit quality, macroeconomic environment, etc. The Company determines the fair value for each investment security and loan by then estimating significant assumptions including discount rate, cumulative net loss rate and prepayment rate which are reviewed and approved by management. The Company also engages a third-party valuation service provider to estimate a range of fair values for all significant investments in loans and securities. The Company reviews and validates its significant assumptions with reference to histori …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

INCOME TAXES Corporate Income Tax - Ordinary taxable income in Israel is subject to a corporate tax rate of 23%. Ordinary taxable income in Israel is subject to a corporate tax rate of 23%. However, the Company has received an approval from the Israeli Tax authorities on November 18, 2021 for Preferred Technological Enterprise (PTE) status. The Company is eligible for PTE status which is implemented commencing 2020. Income from a PTE is subject to 12% tax rate. The Company is currently in the process of obtaining a renewal of its PTE status. Foreign Exchange Regulations in Israel Under the Foreign Exchange Regulations, the Company calculates its tax liability in U.S. Dollars according to certain orders. The tax liability, as calculated in U.S. Dollars is translated into NIS according to the exchange rate as of December 31st of each year. One Big Beautiful Bill Act On July 4, 2025, the One Big Beautiful Bill Act (OBBBA) was signed into law in the U.S. which contains a broad range of tax reform provisions affecting businesses. The Company took an accelerated deduction following the enactment of new tax law. The OBBBA legislation is not expected to have a material impact on our effective tax rate, deferred tax position, or results of operations in 2026. Non-Israeli subsidiaries are taxed according to the tax laws in their respective countries of residence. The components of income (loss) before income taxes are as follows (in thousands): December 31, 2025 2024 2023 Domestic (Isr …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

LEASES The Company leases facilities under operating leases with various expiration dates through 2032. The Company leases office space in New York and Israel. The security deposits for the leases are $1.9 million and $3.3 million as of December 31, 2025 and December 31, 2024, respectively, which have been recognized as restricted cash and cash equivalents in the consolidated balance sheets. The Companys operating lease expense consists of rent and variable lease payments. Variable lease payments such as common area maintenance were included in operating expenses. Rent expense for the Companys short-term leases was immaterial for the periods presented. Operating lease expense was as follows (in thousands): Year Ended December 31, 2025 2024 2023 Rent expense $ 11,191 $ 11,993 $ 13,016 Variable lease payments $ 448 $ 365 $ 280 Sublease income (1) $ 5,233 $ 4,023 $ 4,053 (1) The Company entered into sublease agreements for certain leased office space, and the amounts were included in other expenses, net in the consolidated statement of operations. Supplemental information related to the Companys operating leases was as follows ($ in thousands): As of December 31, 2025 As of December 31, 2024 Weighted-average remaining lease term (in years) 5.1 5.8 Weighted-average discount rate 9.0 % 9.1 % Year Ended December 31, 2025 2024 2023 Operating lease right-of-use assets recognized in exchange for new operating lease obligations (1) $ (113) $ (17,737) $ (1,839) (1) During the year ended …

LesseeOperatingLeasesTextBlock · excerpt; the full note is in the filing

Recently Adopted Accounting Pronouncements In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The amendments in this update require entities to disclose specific categories in the effective tax rate reconciliation and provide additional information for reconciling items where the effect of those reconciling items is equal to or greater than 5% of the amount computed by multiplying pretax income/loss by the applicable statutory income tax rate. In addition, entities are required to disclose the year-to-date amount of income taxes paid (net of refunds received) disaggregated by jurisdictions. The adoption of the guidance did not have a material impact on the Companys financial statements but resulted in expanded disclosures in the Notes to the consolidated financial statements. The Company prospectively adopted the provisions of this ASU. See Note 16 for additional information. Recently Issued Accounting Pronouncements Not Yet Adopted In November 2024, the FASB issued ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosure (Subtopic 220-40), Disaggregation of Income Statement Expenses, which requires disclosure of disaggregated information about certain expense captions presented in the consolidated statements of operations as well as disclosure about selling expense. The effective date for this update was amended by ASU 2025-01 Income Statement-Reporting Comprehensive Incom …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

TRANSACTIONS WITH RELATED PARTIES In the ordinary course of business, the Company may enter into transactions with directors, principal officers, their immediate families, and affiliated companies in which they are principal shareholders (commonly referred to as related parties). The Company has transactions with the securitization vehicles and other Financing Vehicles which are also related parties. As of December 31, 2025, the total fee receivables from related parties are $106.9 million, which consist of $85.9 million from securitization vehicles and $21.0 million from other Financing Vehicles. As of December 31, 2024, the total fee receivables from related parties are $99.4 million, which consists of $79.0 million from securitization vehicles and $20.4 million from other Financing Vehicles. As of December 31, 2025 and 2024, the Company had amounts due from related parties $42.6 million and $15.2 million, respectively, which are included within other assets on the consolidated balance sheets. These amounts are entirely attributable to transactions with Financing Vehicles. Additionally, as of December 31, 2025 and 2024, the Company had amounts due to related parties of $10.6 million and $3.0 million, respectively, which are included within accrued expenses and other liabilities on the consolidated balance sheets. For the year ended December 31, 2025, the total revenue from related parties is $652.7 million, which consists of $621.9 million from securitization vehicles and $ …

RelatedPartyTransactionsDisclosureTextBlock · excerpt; the full note is in the filing

REVENUE Revenue from fees is comprised of Network AI fees and Contract fees. Network AI fees can be further broken down into two fee streams: AI integration fees and capital markets execution fees. AI integration fees are earned for the creation and delivery of assets that comprise Network Volume. The Company utilizes multiple funding channels to enable the purchase of network assets from Partners, such as asset backed securitizations (ABS), and forward flow arrangements. Capital markets execution fees are earned from the market pricing of ABS transactions, as well as upon the execution of forward flow transactions, while contract fees are management, performance and similar fees. These fees are the result of agreements with customers and are recognized in accordance with FASB Accounting Standards Codification 606, Revenue from Contracts with Customers (ASC 606). Revenue is recognized in accordance with ASC 606 with revenue recorded on a gross basis when the Company is a principal in the transaction with customers, and recorded on a net basis when the Company is acting as an agent on behalf of another. The Company generally recognizes revenue on a gross basis because the Company is primarily responsible for integrating the various services fulfilled by Partners and is ultimately responsible to the Financing Vehicles for the fulfillment of the related services. To the extent the Company does not meet the criteria for recognizing revenue on a gross basis, the Company records re …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

SEGMENTS AND GEOGRAPHICAL INFORMATION Segment Information The Company manages, monitors, and reports its financial performance as a single operating segment. The Company's chief operating decision-maker (CODM), who is the Chief Executive Officer, assesses performance, makes operating decisions, and allocates resources based on consolidated financial information. In accordance with Accounting Standards Update 2023-09, which requires public entities to disclose significant segment expense categories and amounts for each reportable segment, the following disclosures are provided for the Company's single reportable segment: Year Ended December 31, 2025 2024 2023 (in thousands) Personnel related costs $ 150,319 $ 175,631 $ 189,965 Non-personnel related costs 138,045 192,125 137,542 Total (1) $ 288,364 $ 367,756 $ 327,507 (1) Total of personnel and non-personnel related costs represent the total of technology, data and product development, sales and marking, and general and administrative expenses in the consolidated statements of operations. Personnel related costs include salaries, wages, bonuses, employee benefits, payroll taxes, and other related expenses associated with our workforce. Non-personnel related costs encompass expenses such as rent, utilities, depreciation and amortization, marketing and advertising, professional services, and other operational costs not directly linked to personnel. The Company does not have additional reportable segments, and therefore, all finan …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

"SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation and Principles of Consolidation The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (U.S. GAAP) and include the accounts of the Company, its wholly-owned subsidiaries, and consolidated variable interest entities (VIEs) if any. All intercompany accounts and transactions have been eliminated. Variable Interest Entities A VIE is a legal entity that has a total equity investment that is insufficient to finance its activities without additional subordinated financial support or whose equity investors lack the characteristics of a controlling financial interest. The Companys variable interest arises from contractual ownership or other monetary interests in the entity, which may change with fluctuations in the fair value of the VIEs net assets. A VIE is consolidated by its primary beneficiary, the party that has both the power to direct the activities that most significantly impact the VIEs economic performance, and an obligation to absorb losses or the right to receive benefits of the VIE that could potentially be significant to the VIE. The Company consolidates a VIE when it is deemed to be the primary beneficiary. The Company assesses whether or not it is the primary beneficiary of a VIE at initial involvement and on an ongoing basis. Refer to Note 6 for additional information. Use of Estimates The preparat …

SignificantAccountingPoliciesTextBlock · excerpt; the full note is in the filing

"ORDINARY SHARES AND ORDINARY SHARE WARRANTS As of December 31, 2025, 839,999,998 shares with no par value are authorized, of which, 6,666,666 shares are designated as Preferred Shares, 666,666,666 shares are designated as Class A Ordinary Shares, and 166,666,666 shares are designated as Class B Ordinary Shares. As of December 31, 2025, the Company had 2,027,147 Preferred Shares outstanding, 70,747,357 Class A Ordinary Shares outstanding and 11,288,577 Class B Ordinary Shares outstanding. The rights of the holders of each class of Ordinary Shares are identical, except with respect to voting. Each share of Class A Ordinary Share is entitled to one vote per share. Each share of Class B Ordinary Share is entitled to 10 votes per share. Shares of Class B Ordinary Share may be converted at any time at the option of the stockholder and automatically convert upon sale or transfer to Class A Ordinary Share. As of December 31, 2025 and 2024, the Company had reserved ordinary shares for future issuance as follows: December 31, 2025 December 31, 2024 Share options 3,197,713 4,042,901 Options to restricted shares 19,884,985 19,948,408 RSUs 2,150,173 3,009,918 Ordinary share warrants 2,076,008 2,372,858 Redeemable convertible preferred shares 2,027,147 5,000,000 Exchangeable notes 11,434,704 11,434,704 Shares available for future grant of equity awards(1) 9,836,203 8,121,438 Shares reserved for issuance under the ESPP 733,470 832,713 Total shares of ordinary share reserved 51,340,403 54,7 …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing

SUBSEQUENT EVENTS 2030 Notes Repurchase During the first quarter of 2026, the Company repurchased $7.4 million of the outstanding 2030 Notes at a price equal to 87.3% of the principal amount. The Company paid total consideration of $6.5 million, excluding accrued interest, resulting in a $0.8 million gain on extinguishment of debt. During the second quarter of 2026, the Company repurchased $3.8 million of the outstanding 2030 Notes at a price equal to 78.5% of the principal amount. The Company paid total consideration of $3.0 million, excluding accrued interest, resulting in a $0.7 million net gain on extinguishment of debt. These gains are net of the written-off carrying value, which included associated pro rata unamortized debt issuance cost. Following the repurchase, the remaining aggregate principal amount of the 2030 Notes outstanding was $481.9 million. Revolving Credit Facility Repayment During the first quarter of 2026, the Company drew down $114.7 million under its revolving credit facility, which was repaid in full during the second quarter of 2026. There were no penalties associated with the extinguishment of the revolving credit facility balance. Proceeds from Secured Borrowings During the second quarter of 2026, the Company received $65.0 million in proceeds from secured borrowings under its existing repurchase agreements.

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COMMITMENTS AND CONTINGENCIES Legal Proceedings From time to time, the Company is subject to legal proceedings and claims in the ordinary course of business. The results of such matters often cannot be predicted with certainty. In accordance with applicable accounting guidance, the Company establishes an accrued liability for legal proceeding and claims when those matters present loss contingencies which are both probable and reasonably estimable. All such liabilities arising from current legal matters, to the extent such matters existed, have been recorded in accrued expenses and other liabilities on the unaudited condensed consolidated balance sheets and these matters are not expected to have a material impact on the Companys interim consolidated financial statements for the three and six months ended June 30, 2026. Contractual Obligations and Commitments From time to time, the Company enters into purchase commitments with our third-party cloud computing web services providers. As of June 30, 2026, the total remaining contractual obligations from these purchase commitments are approximately $8.8 million, of which $6.4 million is for the next 12 months. The Company may pay more than the minimum purchase commitment based on usage. Additionally, the Company has contractual obligations related to its lease for corporate office space. During the normal course of business, we enter into certain lease contracts with lease terms through 2032. As of June 30, 2026, the total remainin …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

BORROWINGS The following table sets forth the Companys outstanding borrowings as of the date indicated (in thousands): June 30, 2026 December 31, 2025 Secured borrowing $ 252,995 $ 193,892 Exchangeable notes 150,070 148,782 Long-term debt 471,866 481,598 The Company was in compliance with all covenants as of June 30, 2026 and December 31, 2025. Secured Borrowing Secured borrowings are comprised of borrowings under risk retention master repurchase agreements and the Companys receivable facilities. Interest expenses related to secured borrowings was $3.8 million and $6.2 million for the three months ended June 30, 2026 and 2025, respectively, and $7.2 million and $12.1 million for the six months ended June 30, 2026 and 2025, respectively. Risk Retention Master Repurchase In the normal course of business, the Company, through consolidated VIEs, enters into repurchase agreements to finance the Companys risk retention balance in securitization notes and residual certificates retained from securitization transactions. Under these agreements, the Company sells its investment securities with an obligation to repurchase them in the future. These agreements generally contain contractual provisions allowing the counterparty the right to sell or repledge the collateral. As these agreements contain repurchase obligations, they are accounted for as secured borrowings with the sold investment retained on the unaudited condensed consolidated balance sheets. As of June 30, 2026 and December 3 …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 (in thousands) Services transferred at a point in time $ 341,129 $ 298,604 $ 611,159 $ 561,722 Services transferred over time 24,510 19,110 53,471 38,696 Total revenue from fees $ 365,639 $ 317,714 $ 664,630 $ 600,418

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SHARE BASED COMPENSATION Share Options Granted share options generally expire at the earlier of termination of employment or ten years from the date of grant. Share options generally vest over four years of the employment commencement date or with 25% vesting on the twelve-month anniversary of the employment commencement date, and the remaining on a pro-rata basis each quarter over the next three years. Any options, which are forfeited or not exercised before expiration, become available for future grants. The following table summarizes the Companys share option activity during the six months ended June 30, 2026: Number of Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value (000s) Balance, December 31, 2025 3,197,713 $ 6.7 5.7 $ 45,031 Granted Exercised (44,593) 7.4 Forfeited (31,042) 23.5 Balance, June 30, 2026 3,122,078 $ 6.6 5.2 $ 36,349 Vested and exercisable, June 30, 2026 2,595,276 $ 4.9 4.6 $ 34,620 The aggregate intrinsic value of options exercised, and fair value of share options vested for the six months ended June 30, 2026 was $0.4 million and $1.4 million, respectively. As of June 30, 2026, unrecognized compensation expense related to unvested share options was approximately $3.6 million, which is expected to be recognized over a remaining weighted-average vesting period of 1.3 years. Restricted Stock Units (RSUs) RSUs for new employees generally vest over two years of the employment commencement da …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

"FAIR VALUE MEASUREMENT FASB ASC 820, Fair Value Measurements and Disclosures (ASC 820), defines fair value, establishes a framework for measuring fair value under generally accepted accounting principles, and requires certain disclosures about fair value measurements. In general, fair values of financial instruments are based upon quoted market prices, when available. If such quoted market prices are not available, fair value is based upon a discounted cash flow model that uses, as inputs, observable market-based parameters to the greatest extent possible. The Company determines the fair value of its financial instruments and conducts an ongoing assessment of the techniques used to ensure their appropriateness, consistent application and the reasonableness of the assumptions. In determining the fair value of each investment security and loan, the Company reviews performance characteristics of the underlying loan pool including origination vintage, borrower credit quality, and macroeconomic environment, among other factors. The Company determines the fair value for each investment security and loan by then estimating significant assumptions including discount rates, cumulative net loss rates, expected prepayment rates and consideration of any optional redemption features which are reviewed and approved by management. The Company also engages a third-party valuation service provider to estimate a range of fair values for all significant investments in loans and securities. The …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

INCOME TAXES Corporate Income Tax Ordinary taxable income in Israel is subject to a corporate tax rate of 23%. The Company received approval from the Israeli Tax authorities on November 18, 2021 for Preferred Technological Enterprise (PTE) status which was implemented commencing 2020. The Company is currently in the process of obtaining a renewal of its PTE status. Income from a PTE is generally subject to a 12% tax rate, unless a tax payer is subject to Pillar Two taxation. Following Israels adoption of the OECD Pillar Two framework and the introduction of a Qualified Domestic Minimum Top-Up Tax (QDMTT) in late 2025, the Company became subject to a minimum corporate tax rate of 15%, partially offset by a refundable R&D tax credit beginning in the first half of 2026. Pillar Two Taxation On October 8, 2021, the Organisation for Economic Co-operation and Development (OECD)/G20 inclusive framework (the Inclusive Framework) on Base Erosion and Profit Shifting published a statement updating and finalizing the key components of a two-pillar plan on global tax reform. The Inclusive Framework plan has now been agreed to by more than 140 OECD members. While many countries have adopted some or all aspects of these rules, some countries have not adopted any or all of them, and many interpretive questions remain that are expected to be addressed in future guidance. Foreign Exchange Regulations in Israel Under the Foreign Exchange Regulations, the Company calculates its tax liability …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

In November 2024, the FASB issued ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosure (Subtopic 220-40), Disaggregation of Income Statement Expenses, which requires disclosure of disaggregated information about certain expense captions presented in the consolidated statements of income as well as disclosure about selling expense. The effective date for this update was amended by ASU 2025-01, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Clarifying the Effective Date, and is now effective for annual periods beginning after December 15, 2026, and interim reporting periods within annual reporting periods beginning after December 15, 2027. It could be applied either prospectively or retrospectively. The Company is currently evaluating the impact of these amendments on its consolidated financial statement disclosures. In September 2025, the FASB issued ASU 2025-06, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software, to modernize the accounting guidance for the costs to develop software for internal use. The standard applies to costs incurred to develop or obtain software for internal use. ASU 2025-06 amends the existing standard that refers to various stages of a software development project to align better with current software development methods, such as agile programming. Under the …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

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 receiva …

RelatedPartyTransactionsDisclosureTextBlock · excerpt; the full note is in the filing

REVENUE Revenue from fees is comprised of Network AI fees and Contract fees. Network AI fees can be further broken down into two fee streams: AI integration fees and capital markets execution fees. AI integration fees are earned for the creation and delivery of assets that comprise Network Volume. The Company utilizes multiple funding channels to enable the purchase of network assets from Partners, such as asset backed securitizations, and forward flow arrangements. Capital markets execution fees are earned from the market pricing of ABS transactions, as well as upon the execution of forward flow transactions, while contract fees are administration and management fees, performance fees, and servicing fees. These fees are the result of agreements with customers and are recognized in accordance with FASB Accounting Standards Codification 606, Revenue from Contracts with Customers (ASC 606). Revenue is recognized in accordance with ASC 606 with revenue recorded on a gross basis when the Company is a principal in the transaction with customers, and recorded on a net basis when the Company is acting as an agent on behalf of another. The Company generally recognizes revenue on a gross basis because the Company is primarily responsible for integrating the various services fulfilled by Partners and is ultimately responsible to the Financing Vehicles for the fulfillment of the related services. To the extent the Company does not meet the criteria for recognizing revenue on a gross bas …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation and Principles of Consolidation The accompanying unaudited condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (U.S. GAAP) and include the accounts of the Company, its wholly-owned subsidiaries, and consolidated variable interest entities (VIEs) if any. The accompanying unaudited condensed consolidated financial statements were derived from the audited consolidated financial statements, but do not include all of the disclosures, including certain notes required by GAAP on an annual reporting basis. Certain information and note disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. Therefore, these unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and the related notes thereto as of and for the year ended December 31, 2025 included in the Companys Annual Report on Form 10-K filed on March 2, 2026, and as amended on April 30, 2026 and June 1, 2026 (collectively, the 2025 Annual Report on Form 10-K). All intercompany accounts and transactions have been eliminated. The Companys functional and reporting currency is the U.S. Dollar. In managements opinion, the unaudited condensed consolidated financial statements have been prepa …

SignificantAccountingPoliciesTextBlock · excerpt; the full note is in the filing

SUBSEQUENT EVENTS Receivables Facility Amendment In July 2026, Pagaya Structured Products LLC, a wholly-owned subsidiary of the Company, entered into an Amendment to its Accrued Loan Purchasing Fee Receivables Facility (the ALPF Facility) with the lender, which increased the aggregate borrowing commitment from $65 million to $100 million. Pursuant to the amendment, the revolving period end date was extended from June 11, 2027, to July 16, 2028, and the scheduled maturity date was extended from December 11, 2027, to January 16, 2029. All other terms, including the interest rate, remained the same at the adjusted term SOFR (subject to a 1.00% floor) plus a margin of 1.9%. …

SubsequentEventsTextBlock · excerpt; the full note is in the filing