Pagaya’s personal loan portfolio in the second quarter of 2026 showed higher balances and stronger borrower income, while credit scores and coupon rates moved in opposite directions.
Average loan size rose to $11,459 in Q2 2026 from $11,241 in Q1, and up from $10,752 in Q4 2025. Weighted average borrower annual income increased to $124,538 from $120,020 in the prior quarter and from $114,905 at the end of 2025. The weighted average credit score slipped to 662 from 667 in Q1, and to 661 from 663 in Q1 2025. The weighted average coupon edged up to 20.13% from 19.53% in Q1, but remained below 20.50% in Q4 2025. Debt-to-income was essentially flat at 28.02%, compared with 28.00% in Q1 and 27.57% in Q4 2025. Payment-to-income improved to 6.64% from 6.75% in Q1 and 6.77% in Q4 2025.
In auto, the portfolio moved in the opposite direction on several core measures. The weighted average coupon fell to 17.73% in Q2 2026 from 18.89% in Q1 and 20.46% in Q4 2025. Average loan size increased to $75.2K from $72.6K in Q1, while average borrower annual income jumped to $88,012 from $75,726. Weighted average credit score ticked up to 594 from 593 in Q1. Loan-to-value rose to 124% from 122% in Q1, after ending 2025 at 121%. Debt-to-income improved to 25.40% from 25.90% in Q1, and payment-to-income fell to 11.14% from 12.20%.
The auto book also saw a sharp drop in mileage and vehicle age. Average miles fell to 23,984 from 31,963 in Q1 and from 35,033 in Q4 2025. Average vehicle age declined to 2.18 years from 2.75 years in Q1 and 3.10 years in Q4 2025. As a result of these announcements, the company's shares have moved 3.1% on the market, and are now trading at a price of $17.98. Check out the company's full 8-K submission here.
