Pagaya is an AI-powered lending technology company that acts as an intermediary between consumer lenders and institutional investors. Pagaya's core product is a real-time AI underwriting engine that evaluates loan applications rejected by its lender partners — a "second look" or decline monetization model. When a borrower is declined by a partner lender, the application routes to Pagaya's network, which uses its own AI models to assess creditworthiness. If approved, the loan is originated under the partner's brand and funded by Pagaya's institutional investor network, with the partner earning fee income without taking on credit risk. Pagaya operates across three asset classes: personal loans, auto loans, and point-of-sale financing. Beyond decline monetization, Pagaya has expanded into adjacent products including concurrent underwriting, affiliate channel optimization, direct marketing prescreen tools, and borrower verification tools — roughly half of personal loan volume already comes from these newer products. Pagaya earns fees from both lenders (per loan originated) and investors (for managing securitization vehicles). The key profitability metric is FRLPC (fee revenue less production costs), which scales with total network volume. Pagaya funds loans primarily through asset-backed securities and forward flow agreements with institutional investors. A regulatory requirement to retain 4-5% of each ABS deal aligns Pagaya's incentives with investors but creates P&L exposure to credit performance. Pagaya's cost structure is largely fixed, giving the business significant operating leverage as volume grows. Growth is driven by deepening existing partner relationships through multi-product adoption and adding new lender partners.