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PennyMac Financial Services, Inc. Reports Fourth Quarter and Full-Year 2025 Results

PennyMac Financial Services, Inc. Reports Fourth Quarter and Full-Year 2025 Results

WESTLAKE VILLAGE, Calif.–(BUSINESS WIRE)–
PennyMac Financial Services, Inc. (NYSE: PFSI) today reported net income of $106.8 million for the fourth quarter of 2025, or $1.97 per share on a diluted basis, on total net revenues of $538.0 million. Book value per share increased to $82.77 from $81.12 at September 30, 2025.

PFSI’s Board of Directors declared a fourth quarter cash dividend of $0.30 per share, payable on February 26, 2026, to common stockholders of record as of February 16, 2026.

Fourth Quarter 2025 Highlights

  • Pretax income was $134.4 million, down from $236.4 million in the prior quarter and up from $129.4 million in the fourth quarter of 2024

  • Production segment pretax income was $127.3 million, up from $122.9 million in the prior quarter and $78.0 million in the fourth quarter of 2024

    • Total loan acquisitions and originations, including those fulfilled for PennyMac Mortgage Investment Trust (NYSE: PMT), were $42.2 billion in unpaid principal balance (UPB), up 16 percent from the prior quarter and 18 percent from the fourth quarter of 2024

      • Correspondent acquisitions of conventional conforming and non-Agency eligible loans fulfilled for PMT were $3.7 billion in UPB, up 10 percent from the prior quarter and 5 percent from the fourth quarter of 2024

      • PMT purchased 17 percent of total conventional conforming correspondent loan volume and 100 percent of total non-Agency eligible correspondent loan volume from PFSI through their fulfillment agreement in the fourth quarter, both percentages unchanged from the prior quarter

    • Total locks, including those for PMT, were $46.8 billion in UPB, up 8 percent from the prior quarter and 29 percent from the fourth quarter of 2024

      • Correspondent lock volume for PMT’s account was $4.1 billion in UPB, down 7 percent from the prior quarter and up 28 percent from the fourth quarter of 2024

  • Servicing segment pretax income was $37.3 million, down from $157.4 million in the prior quarter and $87.3 million in the fourth quarter of 2024

    • Pretax income excluding valuation-related items was $47.8 million, down 70 percent from the prior quarter driven primarily by increased realization of mortgage servicing rights (MSR) cash flows as lower mortgage rates drove higher prepayment activity

    • Valuation-related items included:

      • $40.4 million in MSR fair value gains and $39.4 million in hedging losses

        • Net impact on pretax income related to these items was $1.0 million or $0.01 in diluted earnings per share

      • $11.4 million provision for losses on active loans

    • Servicing portfolio grew to $733.6 billion in UPB, up 2 percent from September 30, 2025 and 10 percent from December 31, 2024, driven by production volumes which more than offset prepayment activity

    • Completed the sale of an MSR portfolio totaling $24.4 billion in UPB; PFSI subserviced the portfolio on an interim basis through December 31, 2025 and the servicing transfer was completed in early January 2026

  • Pretax loss from Corporate and Other was $30.2 million, down from $43.9 million in the prior quarter and $35.9 million in the fourth quarter of 2024

Full-Year 2025 Highlights

  • Net income of $501.1 million, up from $311.4 million in 2024 and representing a return on equity of 12 percent

  • Pretax income of $551.4 million, up from $401.0 million in 2024

  • Total net revenue of $2.0 billion, up from $1.6 billion in 2024

  • Total loan production of $145.5 billion in UPB, an increase of 25 percent from 2024

  • Servicing portfolio UPB of $733.6 billion at year end, up 10 percent from December 31, 2024

  • Issued $2.35 billion of unsecured senior notes with maturities ranging from 2032 to 2034

  • Issued $300 million of Ginnie Mae MSR term notes due August 2030

  • Redeemed $650 million of unsecured notes and $700 million of Ginnie Mae MSR term notes

“PFSI finished the year with a solid fourth quarter, generating a 10 percent annualized return on equity with strong production results offset by increased runoff on our MSR asset as prepayment speeds increased,” said Chairman and CEO David Spector. “For the full year 2025, our balanced business model generated very strong financial results. We achieved double-digit earnings growth across both operating segments, with servicing pretax income up 58 percent and production pretax income up 19 percent. These results were driven by significant operational momentum, including a 25 percent increase in production volumes and 10 percent growth in our servicing portfolio UPB. In total, we generated a 12 percent return on equity for the year and 11 percent growth in book value per share, underscoring our ability to consistently create stockholder value through disciplined execution.”

Mr. Spector concluded, “As we look to 2026, Pennymac is uniquely positioned to lead the industry. Our balanced business model and cutting edge technology provides a powerful foundation for our continued growth. We remain focused on the continued advancement of our strategies to drive sustained long-term value for our stockholders.”

The following table presents the contributions of PFSI’s segments to pretax income:

Quarter ended December 31, 2025

Production

Servicing

Reportable

segment total

Corporate

and other

Total
(in thousands)
Revenue:
Net gains on loans held for sale at fair value

$

276,060

$

25,543

 

$

301,603

 

$

–

 

$

301,603
Loan origination fees

 

68,437

 

 

–

 

 

68,437

 

 

–

 

 

68,437

 
Fulfillment fees from PMT

 

6,538

 

 

–

 

 

6,538

 

 

–

 

 

6,538

 
Net loan servicing fees

 

–

 

 

149,780

 

 

149,780

 

 

–

 

 

149,780

 
Management fees

 

–

 

 

–

 

 

–

 

 

6,856

 

 

6,856

 
Net interest income (expense):
Interest income

 

128,953

 

 

134,642

 

 

263,595

 

 

299

 

 

263,894

 
Interest expense

 

109,189

 

 

153,807

 

 

262,996

 

 

–

 

 

262,996

 

 

19,764

 

 

(19,165

)

 

599

 

 

299

 

 

898

 
Other

 

187

 

 

(2,256

)

 

(2,069

)

 

5,962

 

 

3,893

 
Total net revenue

 

370,986

 

 

153,902

 

 

524,888

 

 

13,117

 

 

538,005

 
Expenses
Compensation

 

123,386

 

 

51,612

 

 

174,998

 

 

33,075

 

 

208,073

 
Loan origination

 

69,651

 

 

–

 

 

69,651

 

 

–

 

 

69,651

 
Technology

 

27,909

 

 

10,847

 

 

38,756

 

 

(3,378

)

 

35,378

 
Servicing

 

–

 

 

43,360

 

 

43,360

 

 

–

 

 

43,360

 
Marketing and advertising

 

8,506

 

 

555

 

 

9,061

 

 

1,242

 

 

10,303

 
Professional services

 

3,942

 

 

1,986

 

 

5,928

 

 

4,483

 

 

10,411

 
Occupancy and equipment

 

5,162

 

 

2,477

 

 

7,639

 

 

2,324

 

 

9,963

 
Other

 

5,123

 

 

5,726

 

 

10,849

 

 

5,612

 

 

16,461

 
Total expenses

 

243,679

 

 

116,563

 

 

360,242

 

 

43,358

 

 

403,600

 
Income (loss) before provision for income taxes

$

127,307

 

$

37,339

 

$

164,646

 

$

(30,241

)

$

134,405

 

Production Segment

The Production segment includes the correspondent acquisition of newly originated government-insured and conventional conforming loans for PFSI’s own account, fulfillment services on behalf of PMT and direct lending through the consumer direct and broker direct channels, including the underwriting and acquisition of loans from correspondent sellers on a non-delegated basis.

PFSI’s loan production activity for the quarter totaled $42.2 billion in UPB, $38.5 billion of which was for its own account, and $3.7 billion of which was fee-based fulfillment activity for PMT. Correspondent locks for PFSI and direct lending IRLCs totaled $42.8 billion in UPB, up 10 percent from the prior quarter and 30 percent from the fourth quarter of 2024.

Production segment pretax income was $127.3 million, up from $122.9 million in the prior quarter and $78.0 million in the fourth quarter of 2024. Production segment net revenues totaled $371.0 million, up 3 percent from the prior quarter and 42 percent from the fourth quarter of 2024. The increase in revenue from the prior quarter was primarily due to higher volumes in the consumer direct lending channel and was largely offset by lower margins. The increase from the fourth quarter of 2024 was primarily due to higher volumes across all channels.

The components of net gains on loans held for sale are detailed in the following table:

Quarter ended

December 31,

2025

September 30,

2025

December 31,

2024
(in thousands)
Receipt of MSRs

$

775,242

 

$

700,326

 

$

748,121

 
Gains on sale of loans to PennyMac Mortgage Investment Trust net of mortgage servicing rights recapture payable

 

16,341

 

 

17,454

 

 

2,387

 
Provision for representations and warranties, net

 

(2,924

)

 

(2,354

)

 

(1,633

)
Cash loss, including cash hedging results

 

(492,013

)

 

(284,589

)

 

(373,307

)
Fair value changes of pipeline, inventory and hedges

 

4,957

 

 

(116,382

)

 

(153,524

)
Net gains on mortgage loans held for sale

$

301,603

 

$

314,455

 

$

222,044

 
Net gains on mortgage loans held for sale by segment:
Production

$

276,060

 

$

280,092

 

$

195,070

 
Servicing

$

25,543

 

$

34,363

 

$

26,974

 

PFSI performs fulfillment services for certain conventional conforming and non-Agency eligible loans that it acquires from non-affiliates in its correspondent production business and subsequently sells to PMT. These services include, but are not limited to, marketing, relationship management, correspondent seller approval and monitoring, loan file review, underwriting, pricing, hedging and activities related to the subsequent sale and securitization of loans in the secondary mortgage markets for PMT.

Fees earned from the fulfillment of correspondent loans on behalf of PMT totaled $6.5 million in the fourth quarter, up 6 percent from the prior quarter and 3 percent from the fourth quarter of 2024. The increase was driven by higher acquisition volumes for PMT’s account.

Correspondent production volumes are initially acquired by PFSI. PMT retains the right to purchase up to 100 percent of non-government correspondent loan production. In the fourth quarter, PMT acquired all non-Agency eligible correspondent production and 17 percent of total conventional conforming correspondent production. In the first quarter of 2026, we expect PMT to acquire all non-Agency eligible correspondent production and 15 to 25 percent of total conventional conforming correspondent production.

Net interest income in the fourth quarter totaled $19.8 million, up from $13.7 million in the prior quarter. Interest income totaled $129.0 million, up from $111.3 million in the prior quarter, and interest expense totaled $109.2 million, up from $97.7 million in the prior quarter, both due to the increase in volumes.

Production segment expenses were $243.7 million, up 2 percent from the prior quarter and 33 percent from the fourth quarter of 2024. The increase from the prior quarter was primarily due to higher compensation expenses that resulted from the increase in consumer direct volumes. The increase from the fourth quarter of 2024 was primarily due to higher compensation and loan origination expenses from growth in the direct lending channels.

Servicing Segment

The Servicing segment includes income from owned MSRs and subservicing. The total servicing portfolio increased to $733.6 billion in UPB at December 31, 2025, up 2 percent from September 30, 2025 and up 10 percent from December 31, 2024. PFSI’s owned MSR portfolio totaled $471.0 billion in UPB, a decrease of 1 percent from September 30, 2025 as runoff along with the sale of $24.4 billion in UPB of MSRs more than offset the net growth from production. PFSI’s owned MSR portfolio UPB increased 8 percent from December 31, 2024, primarily due to production volumes, which more than offset runoff and MSR sales. PFSI subservices $262.6 billion in UPB, up 10 percent from the prior quarter. Of total subservicing UPB, $226.8 billion was for PMT, $24.3 billion was subserviced on an interim basis and $11.6 billion was for other non-affiliates.

The table below details PFSI’s servicing portfolio UPB:

December 31,

2025

September 30,

2025

December 31,

2024
(in thousands)
Owned
Mortgage servicing rights and liabilities
Originated

$

448,035,447

$

455,894,902

$

410,393,342
Purchased

 

13,999,998

 

 

14,404,290

 

 

15,681,406

 

 

462,035,445

 

 

470,299,192

 

 

426,074,748

 
Loans held for sale

 

8,930,477

 

 

7,303,091

 

 

8,128,914

 

 

470,965,922

 

 

477,602,283

 

 

434,203,662

 
Subserviced for:
PMT

 

226,774,067

 

 

227,101,009

 

 

230,753,581

 
Interim servicing

 

24,257,095

 

 

65,286

 

 

806,584

 
Other non-affiliates

 

11,616,738

 

 

11,863,843

 

 

–

 

 

262,647,900

 

 

239,030,138

 

 

231,560,165

 
Total loans serviced

$

733,613,822

 

$

716,632,421

 

$

665,763,827

 

Servicing segment pretax income was $37.3 million, down from $157.4 million in the prior quarter and $87.3 million in the fourth quarter of 2024. Servicing segment net revenues totaled $153.9 million, down from $259.5 million in the prior quarter and $197.5 million in the fourth quarter of 2024.

Revenue from net loan servicing fees totaled $149.8 million, down from $241.2 million in the prior quarter and $189.3 million in the fourth quarter of 2024. Net loan servicing fee revenues included $532.2 million in loan servicing fees, down slightly from the prior quarter due to the aforementioned sale of MSRs. Realization of cash flows was $383.4 million in the fourth quarter, up 32 percent from the prior quarter, consistent with the increase in prepayment speeds for the owned portfolio as lower mortgage rates drove higher prepayment activity. Net valuation-related gains totaled $1.0 million, comprised of MSR fair value gains of $40.4 million and hedging losses of $39.4 million.

The following table presents a breakdown of net loan servicing fees:

Quarter ended

December 31,

2025

September 30,

2025

December 31,

2024
(in thousands)
Loan servicing fees

$

532,192

 

$

535,106

 

$

472,563

 
Changes in fair value of MSRs and MSLs resulting from:
Realization of cash flows

 

(383,368

)

 

(289,679

)

 

(215,590

)
Change in fair value inputs

 

40,388

 

 

(102,495

)

 

540,406

 
Hedging (losses) gains

 

(39,432

)

 

98,306

 

 

(608,112

)
Net change in fair value of MSRs and MSLs

 

(382,412

)

 

(293,868

)

 

(283,296

)
Net loan servicing fees

$

149,780

 

$

241,238

 

$

189,267

 

Servicing segment revenue included $25.5 million in net gains on loans held for sale related to early buyout loans (EBOs), down from $34.4 million in the prior quarter and $27.0 million in the fourth quarter of 2024. The decrease from the prior quarter was primarily driven by the re-introduction of FHA’s trial payment plans, which extended modification timelines and delayed redeliveries into future quarters. These EBOs are previously delinquent loans that were brought back to performing status through PFSI’s successful servicing efforts.

Net interest expense totaled $19.2 million, compared to $15.1 million in the prior quarter and $19.5 million in the fourth quarter of 2024. Interest income was $134.6 million, down slightly from $137.1 million in the prior quarter as lower earnings rates on custodial balances more than offset the benefit of higher average balances. Interest expense was $153.8 million, up slightly from $152.2 million in the prior quarter.

Servicing segment expenses totaled $116.6 million, up from $102.1 million in the prior quarter primarily due to an increased provision for losses on active loans associated with seasonal increases in delinquencies and servicing advance balances.

Corporate and Other

Corporate and Other items include amounts attributable to corporate activities not directly attributable to the production and servicing segments as well as management fees earned from PMT. PFSI manages PMT for which it earns base management fees and may earn performance incentive fees.

Pretax loss for Corporate and Other was $30.2 million, down from $43.9 million in the prior quarter and $35.9 million in the fourth quarter of 2024.

Corporate and Other net revenues totaled $13.1 million, and consisted of $6.9 million in management fees, $6.0 million in other revenue, and $0.3 million of net interest income. No performance incentive fees were earned in the fourth quarter.

Expenses were $43.4 million, down from $55.5 million in the prior quarter and $47.4 million in the fourth quarter of 2024. The decrease from the prior quarter was primarily driven by increased capitalization of certain technology expenses and decreased performance-based incentive compensation.

Average PMT shareholders’ equity was $1.8 billion for the fourth quarter of 2025, essentially unchanged from the third quarter of 2025, and down slightly from the fourth quarter of 2024.

The following table presents a breakdown of management fees:

Quarter ended

December 31,

2025

September 30,

2025

December 31,

2024
(in thousands)
Management fees:
Base fees

$

6,856

$

6,912

$

7,149
Performance incentive fees

 

–

 

 

–

 

 

–

 
Total management fees

$

6,856

 

$

6,912

 

$

7,149

 
Average PMT shareholders’ equity used to calculate base management fees

$

1,813,357

 

$

1,828,365

 

$

1,896,220

 

Consolidated Expenses

Total expenses were $403.6 million, up from $396.5 million in the prior quarter due to higher expenses in both the production and servicing segments as mentioned above.

Taxes

PFSI recorded a provision for tax expense of $27.6 million, resulting in an effective tax rate of 20.5 percent. The provision for tax expense included a $4.3 million tax benefit consisting of a repricing of deferred tax liabilities and an adjustment to the 2025 tax accrual. PFSI’s tax provision rate in future periods is expected to be 25.1 percent, down slightly from 25.2 percent in recent quarters.

Management’s slide presentation and accompanying material will be available in the Investor Relations section of the Company’s website at pfsi.pennymac.com after the market closes on Thursday, January 29, 2026. Management will also host a conference call and live audio webcast at 5:00 p.m. Eastern Time to review the Company’s financial results. The webcast can be accessed at pfsi.pennymac.com, and a replay will be available shortly after its conclusion.

About PennyMac Financial Services, Inc.

PennyMac Financial Services, Inc. is a specialty financial services firm focused on the production and servicing of U.S. mortgage loans and the management of investments related to the U.S. mortgage market. Founded in 2008, the company is recognized as a leader in the U.S. residential mortgage industry and employs approximately 4,900 people across the country. In 2025, PFSI’s production of newly originated loans totaled $145 billion in UPB, making it a top lender in the nation. As of December 31, 2025, PFSI serviced loans totaling $734 billion in UPB, making it a top mortgage servicer in the nation. Additional information about PFSI is available at pfsi.pennymac.com.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, regarding management’s beliefs, estimates, projections, and assumptions with respect to, among other things, our financial results, future operations, business plans and investment strategies, as well as industry and market conditions, all of which are subject to change. Words like “believe,” “expect,” “anticipate,” “promise,” “project,” “plan,” and other expressions or words of similar meanings, as well as future or conditional verbs such as “will,” “would,” “should,” “could,” or “may” are generally intended to identify forward-looking statements. Actual results and operations for any future period may vary materially from those projected herein and from past results discussed herein. Factors which could cause actual results to differ materially from historical results or those anticipated include, but are not limited to: interest rate changes; changes in macroeconomic, consumer and real estate market conditions; changes in housing prices, housing sales and real estate values; changes in homeownership costs and affordability; compliance with changing federal, state and local laws and regulations applicable to the highly regulated industry in which we operate; lawsuits or governmental actions that may result from any noncompliance with the laws and regulations applicable to our business; the mortgage lending and servicing-related regulations promulgated by federal and state regulators and the enforcement of these regulations; the licensing and operational requirements of states and other jurisdictions applicable to our business, to which our bank competitors are not subject; difficulties inherent in adjusting the size of our operations to reflect changes in business levels; purchase and sales opportunities for mortgage servicing rights; our substantial amount of indebtedness; increases in loan delinquencies, defaults and forbearances; foreclosure delays and changes in foreclosure practices; our dependence on U.S. government-sponsored entities and changes in their current roles or their guarantees or guidelines; our reliance on PennyMac Mortgage Investment Trust (NYSE: PMT) as a significant contributor to our mortgage banking business; maintaining sufficient capital and liquidity and compliance with financial covenants; our obligation to indemnify third-party purchasers or repurchase loans if loans that we originate, acquire, service or assist in the fulfillment of, fail to meet certain criteria; our obligation to indemnify PMT if our services fail to meet certain criteria or characteristics or under other circumstances; investment management and incentive fees; the accuracy or changes in the estimates we make about uncertainties, contingencies and asset and liability valuations; conflicts of interest in allocating our services and investment opportunities among us and our advised entity; our ability to mitigate cybersecurity risks, cyber incidents and technology disruptions; the development of artificial intelligence; the effect of public opinion on our reputation; our exposure to risks of loss from severe weather events, man-made or other natural conditions, including climate change and pandemics; our ability to effectively identify, manage and hedge our credit, interest rate, prepayment, liquidity and climate risks; expanding or creating new business activities or strategies; our ability to detect misconduct and fraud; our ability to pay dividends to our stockholders; and our organizational structure and certain requirements in our charter documents. You should not place undue reliance on any forward-looking statement and should consider all of the uncertainties and risks described above, as well as those more fully discussed in reports and other documents filed by the Company with the Securities and Exchange Commission from time to time. The Company undertakes no obligation to publicly update or revise any forward-looking statements or any other information contained herein, and the statements made in this press release are current as of the date of this release only. The press release contains financial information calculated other than in accordance with U.S. generally accepted accounting principles (“GAAP”), such as pretax income excluding valuation-related items and operating net income that provide a meaningful perspective on the Company’s business results since the Company utilizes this information to evaluate and manage the business. Non-GAAP disclosures have limitations as an analytical tool and should not be viewed as a substitute for financial information determined in accordance with GAAP.

PENNYMAC FINANCIAL SERVICES, INC.

CONSOLIDATED BALANCE SHEETS (UNAUDITED)
 

December 31,

2025

September 30,

2025

December 31,

2024
(in thousands, except share amounts)
ASSETS
Cash

$

301,680

$

621,921

$

238,482
Short-term investment at fair value

 

410,037

 

 

62,228

 

 

420,553

 
Principal-only stripped mortgage-backed securities at fair value

 

722,528

 

 

774,021

 

 

825,865

 
Loans held for sale at fair value

 

9,123,410

 

 

7,490,473

 

 

8,217,468

 
Derivative assets

 

187,775

 

 

202,082

 

 

113,076

 
Servicing advances, net

 

589,542

 

 

396,006

 

 

568,512

 
Mortgage servicing rights at fair value

 

9,598,941

 

 

9,653,942

 

 

8,744,528

 
Receivable from PennyMac Mortgage Investment Trust

 

17,122

 

 

40,165

 

 

30,206

 
Loans eligible for repurchase

 

7,409,800

 

 

5,416,967

 

 

6,157,172

 
Other

 

1,027,854

 

 

743,315

 

 

771,025

 
Total assets

$

29,388,689

 

$

25,401,120

 

$

26,086,887

 
 
LIABILITIES
Assets sold under agreements to repurchase

$

8,794,002

 

$

7,130,423

 

$

8,685,207

 
Mortgage loan participation purchase and sale agreements

 

696,618

 

 

699,182

 

 

496,512

 
Notes payable secured by mortgage servicing assets

 

1,326,021

 

 

1,325,716

 

 

2,048,972

 
Unsecured senior notes

 

4,831,742

 

 

4,829,113

 

 

3,164,032

 
Derivative liabilities

 

15,806

 

 

24,276

 

 

40,900

 
Mortgage servicing liabilities at fair value

 

1,572

 

 

1,593

 

 

1,683

 
Accounts payable and accrued expenses

 

643,896

 

 

476,094

 

 

354,414

 
Payable to PennyMac Mortgage Investment Trust

 

116,585

 

 

80,605

 

 

122,317

 
Payable to exchanged Private National Mortgage Acceptance Company, LLC unitholders under tax receivable agreement

 

24,757

 

 

24,806

 

 

25,898

 
Income taxes payable

 

1,184,020

 

 

1,151,395

 

 

1,131,000

 
Liability for loans eligible for repurchase

 

7,409,800

 

 

5,416,967

 

 

6,157,172

 
Liability for losses under representations and warranties

 

34,894

 

 

33,064

 

 

29,129

 
Total liabilities

 

25,079,713

 

 

21,193,234

 

 

22,257,236

 
 
STOCKHOLDERS’ EQUITY
Common stock—authorized 200,000,000 shares of $0.0001 par value; issued and outstanding 52,061,346, 51,875,223, and 51,376,616 shares, respectively

 

5

 

 

5

 

 

5

 
Additional paid-in capital

 

96,870

 

 

86,680

 

 

56,072

 
Retained earnings

 

4,212,101

 

 

4,121,201

 

 

3,773,574

 
Total stockholders’ equity

 

4,308,976

 

 

4,207,886

 

 

3,829,651

 
Total liabilities and stockholders’ equity

$

29,388,689

 

$

25,401,120

 

$

26,086,887

 

PENNYMAC FINANCIAL SERVICES, INC.

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
 
Quarter ended

December 31,

2025

September 30,

2025

December 31,

2024
(in thousands, except per share amounts)
Revenues
Net gains on loans held for sale at fair value

$

301,603

 

$

314,455

 

$

222,044

 
Loan origination fees

 

68,437

 

 

61,696

 

 

57,824

 
Fulfillment fees from PennyMac Mortgage Investment Trust

 

6,538

 

 

6,162

 

 

6,356

 
Net loan servicing fees:
Loan servicing fees

 

532,192

 

 

535,106

 

 

472,563

 
Change in fair value of mortgage servicing rights and mortgage servicing liabilities

 

(342,980

)

 

(392,174

)

 

324,816

 
Mortgage servicing rights hedging results

 

(39,432

)

 

98,306

 

 

(608,112

)
Net loan servicing fees

 

149,780

 

 

241,238

 

 

189,267

 
Net interest income (expense):
Interest income

 

263,894

 

 

248,753

 

 

210,859

 
Interest expense

 

262,996

 

 

249,900

 

 

228,111

 

 

898

 

 

(1,147

)

 

(17,252

)
Management fees from PennyMac Mortgage Investment Trust

 

6,856

 

 

6,912

 

 

7,149

 
Other

 

3,893

 

 

3,582

 

 

4,722

 
Total net revenues

 

538,005

 

 

632,898

 

 

470,110

 
Expenses
Compensation

 

208,073

 

 

205,314

 

 

173,090

 
Loan origination

 

69,651

 

 

69,407

 

 

48,046

 
Servicing

 

43,360

 

 

29,105

 

 

38,088

 
Technology

 

35,378

 

 

44,772

 

 

40,831

 
Professional services

 

10,411

 

 

10,145

 

 

9,987

 
Marketing and advertising

 

10,303

 

 

14,016

 

 

7,765

 
Occupancy and equipment

 

9,963

 

 

8,604

 

 

8,173

 
Other

 

16,461

 

 

15,161

 

 

14,766

 
Total expenses

 

403,600

 

 

396,524

 

 

340,746

 
Income before provision for income taxes

 

134,405

 

 

236,374

 

 

129,364

 
Provision for income taxes

 

27,574

 

 

54,871

 

 

24,875

 
Net income

$

106,831

 

$

181,503

 

$

104,489

 
Earnings per share
Basic

$

2.05

 

$

3.51

 

$

2.04

 
Diluted

$

1.97

 

$

3.37

 

$

1.95

 
Weighted-average common shares outstanding
Basic

 

52,003

 

 

51,730

 

 

51,274

 
Diluted

 

54,171

 

 

53,879

 

 

53,576

 
Dividend declared per share

$

0.30

 

$

0.30

 

$

0.30

 

PENNYMAC FINANCIAL SERVICES, INC.

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
 
Year ended December 31,

2025

2024

2023
(in thousands, except earnings per share)
Revenues
Net gains on loans held for sale at fair value

$

1,071,754

 

$

817,368

 

$

545,943

 
Loan origination fees

 

235,835

 

 

185,700

 

 

146,118

 
Fulfillment fees from PennyMac Mortgage Investment Trust

 

23,804

 

 

26,291

 

 

27,826

 
Net loan servicing fees:
Loan servicing fees

 

2,062,433

 

 

1,799,480

 

 

1,484,946

 
Change in fair value of mortgage servicing rights and mortgage servicing liabilities

 

(1,413,280

)

 

(433,342

)

 

(605,568

)
Mortgage servicing rights hedging results

 

56,546

 

 

(832,483

)

 

(236,778

)
Net loan servicing fees

 

705,699

 

 

533,655

 

 

642,600

 
Net interest expense:
Interest income

 

924,447

 

 

793,566

 

 

632,924

 
Interest expense

 

960,555

 

 

819,348

 

 

637,777

 

 

(36,108

)

 

(25,782

)

 

(4,853

)
Management fees from PennyMac Mortgage Investment Trust

 

27,649

 

 

28,623

 

 

28,762

 
Other

 

17,903

 

 

27,876

 

 

15,260

 
Total net revenues

 

2,046,536

 

 

1,593,731

 

 

1,401,656

 
Expenses
Compensation

 

782,916

 

 

632,738

 

 

576,964

 
Loan origination

 

251,990

 

 

164,092

 

 

114,500

 
Technology

 

162,604

 

 

149,547

 

 

143,152

 
Servicing

 

122,626

 

 

105,997

 

 

69,433

 
Marketing and advertising

 

46,140

 

 

21,969

 

 

17,631

 
Professional services

 

37,973

 

 

37,992

 

 

60,521

 
Occupancy and equipment

 

35,328

 

 

32,898

 

 

36,558

 
Legal settlements

 

—

 

 

1,591

 

 

162,770

 
Other

 

55,542

 

 

45,881

 

 

36,496

 
Total expenses

 

1,495,119

 

 

1,192,705

 

 

1,218,025

 
Income before provision for income taxes

 

551,417

 

 

401,026

 

 

183,631

 
Provision for income taxes

 

50,340

 

 

89,603

 

 

38,975

 
Net income

$

501,077

 

$

311,423

 

$

144,656

 
Earnings per share
Basic

$

9.69

 

$

6.11

 

$

2.89

 
Diluted

$

9.30

 

$

5.84

 

$

2.74

 
Weighted average shares outstanding
Basic

 

51,728

 

 

50,990

 

 

49,978

 
Diluted

 

53,882

 

 

53,356

 

 

52,733

 

 

Media

Kristyn Clark

[email protected]

805.395.9943

Investors

Kevin Chamberlain

Isaac Garden

[email protected]

818.264.4907

KEYWORDS: California United States North America

INDUSTRY KEYWORDS: Residential Building & Real Estate Construction & Property Professional Services Finance

MEDIA:

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