Is the business good?
How good a business is PGY?
Pagaya Technologies Ltd. earns 46% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
46%
Return on invested capital · cost of capital 9.0% · 37 points above what the capital costs: growth creates value
- Operating margin
- 25%
Operating margin · Software - Infrastructure median 6.1% · 12 months to Q2 2026
- Cash conversion
- 1.99×
Cash conversion · every dollar of reported profit arrived as cash, and more
- Share count, year on year
- +22%
Share count, year on year · shareholders own a smaller slice than a year ago
| Year | Operating margin |
|---|---|
| FY2020 | 21% |
| FY2021 | −1.2% |
| FY2022 | −34% |
| FY2023 | −3.0% |
| FY2024 | 6.5% |
| FY2025 | 20% |
Details›
- Gross margin12 months to Q2 2026
- 43%
- Operating margin12 months to Q2 2026
- 25%
- Net margin12 months to Q2 2026
- 9.1%
- Free cash flow margin
- 18%
- R&D as % of revenue
- 5.1%
- Revenue, trailing twelve months
- $1.39B
- Free cash flow, trailing twelve months
- $252M
- Net income, trailing twelve months
- $127M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 46%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.
Software - Infrastructure
Ranks #40 of 78 by Smart Score