Pagaya Technologies Ltd. (PGY) saw its shares surge 6.70% in pre-market trading on Wednesday, following the release of its impressive first-quarter 2025 financial results. The AI-powered financial technology company significantly outperformed analyst expectations, demonstrating strong growth and achieving profitability earlier than anticipated.

The company reported an adjusted net income of $53 million for Q1, more than doubling the IBES estimate of $21.2 million. This stellar performance was underpinned by a robust total revenue and other income of $290 million. Pagaya also announced a GAAP net income of $8 million, marking its transition to profitability ahead of schedule. The adjusted EBITDA for the quarter stood at an impressive $80 million, further highlighting the company's operational efficiency.

Investors seem to be reacting positively to Pagaya's ability to exceed market expectations and achieve profitability sooner than projected. This strong financial performance, particularly in a challenging economic environment, suggests that Pagaya's AI-driven approach to financial services is gaining traction and delivering results. As the market digests these encouraging figures, it will be interesting to see if the stock can maintain its upward momentum throughout the regular trading session.