PennyMac Financial Services, Inc. (PFSI)

Key figures

The last twelve months reported, with the latest price and balance sheet.

Revenue, last twelve months

$2.2B

Revenue growth

25.9%

Net income, last twelve months

$392.4M

Earnings per share

$7.28

Operating margin

22.9%

Net margin

17.7%

Free cash flow

-$1.8B

Return on equity

9.0%

Market value

$3.3B

Price to earnings

8.7x

Dividend yield

1.9%

Cash

$214.3M

Debt

$6.3B

Debt to equity

1.46

Shares outstanding

51.9M

Financial statements

Revenue, profit and cash flow by fiscal year, each year linked to its annual report.

By quarter

What the company said with its results

From the second quarter of 2026 results, filed 29 July 2026.

• Net income and diluted EPS reported. Net income was $22 million and diluted EPS $0.41 on total net revenues of $497 million, compared with $82 million net income in the first quarter of 2026.
• Adjusted earnings and revenues reported. Adjusted net income was $74 million and adjusted diluted EPS $1.39, on adjusted net revenues of $566 million. The prior quarter reported adjusted diluted EPS of $2.19.
• Return on equity down year over year. Annualized ROE was 2% and annualized adjusted ROE was 7%, compared with 14% and 13% in the second quarter of 2025.
• Book value per share higher year over year. Book value per share was $83.49 at June 30, 2026, compared with $78.04 a year earlier and $83.31 at March 31, 2026.
• Total acquisitions and originations declined. Total acquisitions and originations were $34.9 billion in UPB, compared with $37.0 billion in the prior quarter. Fallout adjusted locks were $31.5 billion.
• Consumer direct originations more than doubled. Consumer direct originations reached $5.6 billion, compared with $2.8 billion a year earlier. Consumer direct fallout adjusted locks fell to $4.5 billion from $6.6 billion as refinance volume declined.
• Broker direct gained year over year. Broker direct fallout adjusted locks were $6.5 billion, compared with $7.1 billion in the prior quarter and $5.4 billion a year earlier.
• Correspondent volume fell on competition. Correspondent fallout adjusted locks were $20.5 billion, compared with $24.3 billion in the prior quarter and $30.8 billion a year earlier.
• Refinance recapture rates rose. Conventional first-lien refinance recapture rose to 29% and government first-lien recapture rose to 59%, from 22% and 50% in the prior quarter.
• Production pretax income fell to $38 million. Production segment pretax income was $38 million, compared with $134 million in the prior quarter and $58 million a year earlier.
• Post-lock impacts reduced production revenue. Production revenues net of loan origination expense were $243 million. The company cited a $36 million shift in post-lock impacts tied to market price changes.
• Consumer direct margin rose from first quarter. Consumer direct margin was 3.17%, compared with 2.67% in the first quarter of 2026 and 4.08% a year earlier.
• Production revenue per lock rose. Production revenues were 77 basis points of fallout adjusted locks, compared with 86 basis points in the prior quarter and 55 basis points a year earlier.
• Servicing pretax income rose from first quarter. Servicing pretax income was $22 million, compared with $13 million in the prior quarter and $54 million a year earlier.

Company events

The newest 8-K filings of 119 held.

Every filing

The newest filings with the SEC of 210 held.

Insider trades

Form 4 trades by officers, directors and 10% owners, last 12 months.

Planned insider sales

Form 144 notices, filed when the sell order goes to the broker.

Large holders

Schedule 13D and 13G filings by holders of more than 5% of the voting shares.

Short interest

Shares sold short and not yet bought back, on each FINRA settlement date.

Funds that hold it

From each fund's latest Form 13F.

267 funds held it at 30 Jun 2026: 118 added and 67 trimmed in the quarter. The largest:

Peers

Companies in the same industry.

• Rocket Companies, Inc. (RKT): revenue $10.0B, market value $32.9B

What the company does

PennyMac Financial Services is a specialty financial services firm that produces and services residential mortgage loans in the United States, activities it refers to as mortgage banking. Its main subsidiary, PennyMac Loan Services, LLC ("PLS"), is a non-bank producer and servicer of mortgage loans. The company also manages investments tied to the mortgage market through Pennymac Capital Management, LLC ("PCM"), which manages PennyMac Mortgage Investment Trust ("PMT"), a mortgage real estate investment trust listed on the New York Stock Exchange under the ticker PMT. At 31 December 2025 it serviced 2.8 million loans, and its mortgage servicing rights were backed by loans with unpaid principal balances totaling $462.0 billion. It had approximately 4,900 domestic employees.

How the business is organised

The company reports two segments, production and servicing. Production originates, acquires and sells loans for the company's own account and for PMT. Servicing handles loans the company holds for sale and loans it services or subservices for PMT and other investors. PLS is a seller/servicer for Fannie Mae and Freddie Mac and an approved issuer of Ginnie Mae securities. It is also a lender of the Federal Housing Administration and a lender/servicer of the U.S. Department of Veterans Affairs and the United States Department of Agriculture. The filing calls these six bodies the "Agencies".

How it sources loans

Production covers prime credit quality conventional loans and government-insured or guaranteed loans through three channels.

- Correspondent production: The company buys loans from non-affiliated sellers that were underwritten to investor guidelines. FHA, VA and USDA loans go to the company's own account for sale into Ginnie Mae securities. Other loans are allocated between the company and PMT. Beginning 1 July 2025 the company became the initial purchaser of all correspondent loans and transfers agreed volumes of conventional loans to PMT. PMT keeps the right to buy 100% of non-government correspondent loans from it. - Broker direct lending: The company takes application packages from non-affiliated mortgage brokers, then underwrites and funds the loans for sale. - Consumer direct lending: The company originates loans nationally through the internet and call center staff. It has no branch network. If it refinances a loan it subservices for PMT where PMT owns the servicing rights, it generally pays PMT a recapture fee.

According to Inside Mortgage Finance, as cited by the company, the correspondent channel was about one-third of US residential mortgage originations in 2025, consumer direct about half and broker about one-fifth.

How it earns money

On loans it originates or buys for its own account, the company earns origination fees and interest income while it holds the loans. It also earns gains or losses on their sale, and it generally keeps the right to service them. These rights are called mortgage servicing rights, or MSRs. For loans bought for PMT it earns fulfillment fees and tax service fees. PMT pays PCM base management fees, which are based on PMT's shareholders' equity. In servicing, owned loans produce fees set as an annualised percentage of unpaid principal balance, plus late charges and other borrower fees.

How servicing works

Servicing covers collecting and remitting loan payments, answering customer questions, holding impounded funds for property taxes and insurance, counselling delinquent borrowers, running loss mitigation and supervising foreclosures. The company services loans in two ways.

- As owner of the servicing rights: It carries MSRs at fair value, hedges their value, and advances its own funds to protect loan owners' interests. For Ginnie Mae loans that are at least three months delinquent, it can buy them out of the securities instead of continuing to advance payments. - As subservicer: It services for PMT, other non-affiliates and on an interim basis, without carrying the rights on its balance sheet. The filing says these fees are generally lower per loan.

Who it competes with

The filing describes high barriers to entry, including Agency approvals, state licensing, technology and capital needs. It says it has no direct competitor for the whole business. In production and servicing it competes with large global banks, the cash windows of the government-sponsored entities, and non-bank firms such as Rocket Mortgage, Rithm Capital, Freedom Mortgage and United Wholesale Mortgage. In production it competes on customer service, product offerings, speed of execution, and rates and fees. In servicing it competes on experience, quality and efficiency of execution, and servicing performance. It also competes for capital with other investment managers.

Rules it operates under

PLS is licensed, or exempt or not required to be licensed, to service loans in all 50 states, the District of Columbia, Puerto Rico, Guam and the United States Virgin Islands. It can originate in all 50 states and the District of Columbia. The company and its regulated employees must hold state licences as mortgage banker or lender, loan servicer and debt collector. It must follow federal consumer protection laws such as the Real Estate Settlement Procedures Act, the Truth in Lending Act and the Fair Credit Reporting Act. A compliance management system, overseen by its Management Risk Committee, is designed to ensure compliance with mortgage origination and servicing rules.

Its people

The company says its success depends heavily on its employees. It offers base salary, annual cash incentives and long-term equity incentives, along with training, mentoring programmes and a wellness programme. Its philanthropy programme includes matching gifts, volunteer grants, charitable grants and corporate sponsorships. It holds trademarks on the Pennymac name and relies on proprietary systems, including a cloud-based servicing system and its own pricing engines.

*From PennyMac Financial Services's annual report on Form 10-K for the year ended 31 December 2025. [The filing](https://www.sec.gov/Archives/edgar/data/1745916/000110465926018142/pfsi-20251231x10k.htm)*

From the company's 10-K.