Pagaya: The Profit Machine Is Awake In Auto Lending, But Wall Street Is Still Asleep - Strong Buy

Ryan Canady 604 Followers Follow Summary Pagaya continues its transformation into a deeply integrated player across the loan approval process, driving partner entrenchment and influence over loan quality. Q2 2026 saw record network volume of $3.5B (+33% YoY), with auto lending accounting for over 75% of growth and auto loan volume up 140% YoY. The company's profit and volume growth outpaced revenue, while operating expenses remained nearly flat, underscoring strong operating leverage and scalable technology. Despite recent stock appreciation, Pagaya trades at a significant discount to peers on P/E, P/S (1.553x), and EV/EBITDA, supporting a continued strong buy rating. vittaya pinpan/iStock via Getty Images I last reported on Pagaya ( PGY ) on June 30, 2026, when there was exciting news about the company's partnership with Upgrade's Flex Pay BNPL product . That was an exciting piece of news This article was written by Ryan Canady 604 Followers Follow Investing wisely does not have to be rocket science. It is about discipline and running the numbers. You don't have to be like a grandmaster chess player playing the game twenty moves ahead of your opponent, you just need to understand how the pieces work. Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.