$PFSI

PennyMac Financial Services, Inc.

CIK:0001745916|SEC Filings

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Net gains on loans held for sale at fair value:
Net gains on loans held for sale at fair value	$ 280,319	$ 234,659	$ 625,304	$ 455,696
Loan origination fees	69,518	59,091	141,964	105,702
Fulfillment fees from PennyMac Mortgage Investment Trust	5,023	5,814	10,760	11,104
Loan servicing fees:
Owned servicing	515,293	485,022	1,026,453	951,761
Change in fair value of mortgage servicing rights and mortgage servicing liabilities	(204,507)	(247,170)	(376,500)	(678,126)
Mortgage servicing rights hedging results	(185,581)	(109,102)	(392,868)	(2,328)
Change in fair value of mortgage servicing rights and mortgage-backed securities	(390,088)	(356,272)	(769,368)	(680,454)
Net loan servicing fees - owned servicing	125,205	128,750	257,085	271,307
Subservicing fees	20,616	21,645	41,566	43,374
Net loan servicing fees	145,821	150,395	298,651	314,681
Net interest expense:
Interest income	242,452	221,929	450,631	411,800
Interest expense	270,710	239,577	520,432	447,659
Net interest expense	(28,258)	(17,648)	(69,801)	(35,859)
Management fees from PennyMac Mortgage Investment Trust	6,810	6,869	13,572	13,881
Results of real estate acquired in settlement of loans	(1,766)	47	(4,082)	(178)
Change in fair value of investment in and dividends received from PennyMac Mortgage Investment Trust	2	(105)	(35)	80
Repricing of payable to exchanged Private National Mortgage Acceptance Company , LLC unitholders under tax receivable agreement		1,092		1,092
Other	19,496	4,516	25,616	9,434
Total net revenues	496,965	444,730	1,041,949	875,633
Expenses
Compensation	222,820	187,541	439,213	369,529
Loan origination	93,855	68,836	173,551	112,932
Technology	44,442	42,257	90,574	82,454
Servicing	42,505	28,286	80,738	50,161
Marketing and advertising	16,881	12,389	37,975	21,821
Professional services	15,891	8,380	30,290	17,417
Occupancy and equipment	10,698	8,379	20,689	16,761
Other	18,348	12,220	32,703	23,920
Total expenses	465,440	368,288	905,733	694,995
Income before provision for income taxes	31,525	76,442	136,216	180,638
Provision for income taxes	9,799	(60,021)	32,168	(32,105)
Net income	$ 21,726	$ 136,463	$ 104,048	$ 212,743
Earnings per share
Basic (in dollars per share)	$ 0.42	$ 2.64	$ 2	$ 4.12
Diluted (in dollars per share)	$ 0.41	$ 2.54	$ 1.94	$ 3.97
Weighted average shares outstanding
Basic (in shares)	51,932	51,667	52,031	51,587
Diluted (in shares)	53,251	53,635	53,549	53,626
Related Party
Net gains on loans held for sale at fair value:
Net gains on loans held for sale at fair value	$ 14,097	$ 7,075	$ 21,846	$ 11,913
Loan origination fees		502		979
Loan servicing fees:
Subservicing fees	19,640	21,645	39,363	43,374
Nonrelated Party
Net gains on loans held for sale at fair value:
Net gains on loans held for sale at fair value	266,222	227,584	603,458	443,783
Loan origination fees	69,518	58,589	141,964	104,723
Loan servicing fees:
Subservicing fees	976		2,203
Net interest expense:
Interest expense	270,710	239,577	520,432	447,659
Non-affiliates \| Nonrelated Party
Loan servicing fees:
Owned servicing	470,775	435,517	940,141	853,204
Others \| Nonrelated Party
Loan servicing fees:
Owned servicing	$ 44,518	$ 49,505	$ 86,312	$ 98,557

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
Cash flow from operating activities
Net income	$ 104,048	$ 212,743
Adjustments to reconcile net income to net cash provided by operating activities:
Net gains on loans held for sale at fair value	(625,304)	(455,696)
Change in fair value of mortgage servicing rights and mortgage servicing liabilities	376,500	678,126
Mortgage servicing rights hedging results	392,868	2,328
Accrual of unearned discounts on principal-only stripped mortgage-backed securities	(3,527)	(18,034)
Capitalization of interest on loans held for sale	(3,938)	(1,598)
Amortization of debt issuance costs	18,113	17,277
Results of real estate acquired in settlement in loans	4,082	178
Change in fair value of investment in common shares of PennyMac Mortgage Investment Trust	95	(21)
Repricing of payable to exchanged Private National Mortgage Acceptance Company, LLC unitholders under tax receivable agreement		(1,092)
Stock-based compensation expense	6,911	18,602
Provision for servicing advance losses	45,021	11,970
Depreciation and amortization	27,932	28,627
Impairment of capitalized software	1,535
Amortization of operating lease right-of-use assets	8,639	7,036
Purchase of loans held for sale from non-affiliates	(51,722,435)	(2,202,139)
Origination of loans held for sale	(21,020,089)	(11,725,361)
Purchase of loans held for sale from PennyMac Mortgage Investment Trust		(47,382,225)
Purchase of loans from Ginnie Mae securities and early buyout investors	(1,922,199)	(2,195,739)
Sale to non-affiliates and principal payment of loans held for sale	65,991,372	62,243,471
Sale of loans held for sale to PennyMac Mortgage Investment Trust	9,378,680	1,689,692
Repurchase of loans subject to representations and warranties	(56,418)	(45,360)
(Increase) decrease in servicing advances	(142,311)	35,809
Increase in receivable from PennyMac Mortgage Investment Trust	(9,585)	(3,897)
Sale of real estate acquired in settlement of loans	45,235	37,325
Decrease in other assets	152,878	9,541
(Decrease) increase in accounts payable and accrued expenses	(234,755)	48,838
Decrease in operating lease liabilities	(8,058)	(9,563)
Decrease in payable to PennyMac Mortgage Investment Trust	(35,811)	(32,648)
Increase (decrease) in income taxes payable	31,618	(33,548)
Net cash provided by operating activities	801,097	934,642
Cash flow from investing activities
Increase in short-term investment	(124,311)	(41,709)
Repayment of principal-only stripped mortgage-backed securities	113,827	84,267
Net settlement of derivative financial instruments used for hedging of mortgage servicing rights	(262,863)	(10,913)
Adjustment to sales of mortgage servicing rights to non-affiliates	(6,429)
Sale of mortgage servicing rights to PennyMac Mortgage Investment Trust	10,292
Acquisition of capitalized software	(28,708)	(16,283)
Purchase of furniture, fixtures, equipment and leasehold improvements	(5,625)	(1,676)
Increase in margin deposits	(229,801)	(140,719)
Net cash used in investing activities	(533,618)	(127,033)
Cash flow from financing activities
Sale of assets under agreements to repurchase	75,108,474	63,703,978
Repurchase of assets sold under agreements to repurchase	(75,469,624)	(65,044,887)
Issuance of mortgage loan participation purchase and sale certificates	13,595,723	12,277,214
Repayment of mortgage loan participation purchase and sale certificates	(13,596,335)	(12,072,836)
Issuance of notes payable secured by mortgage servicing assets	475,000	100,000
Repayment of notes payable secured by mortgage servicing assets	(375,000)	(825,000)
Issuance of unsecured senior notes		1,700,000
Repayment of unsecured senior notes		(650,000)
Payment of debt issuance costs	(9,882)	(43,763)
Issuance of common stock by exercise of stock options	4,433	5,965
Payment of withholding taxes relating to stock-based compensation	(6,186)	(3,763)
Payment of dividends to holders of common stock	(31,478)	(30,813)
Repurchase of common stock	(50,011)
Net cash used in financing activities	(354,886)	(883,905)
Net decrease in cash	(87,407)	(76,296)
Cash at beginning of period	301,680	238,482
Cash at end of period	214,273	162,186
Supplemental cash flow information:
Cash paid for interest	517,133	457,513
Cash paid for income taxes, net	550	1,443
Non-cash investing activities:
Mortgage servicing rights received from loan sales	1,368,267	1,464,887
Operating right-of-use assets recognized	32,218	1,209
Non-cash financing activities:
Issuance of common stock in settlement of directors' fees	$ 193	$ 115

CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Thousands	Jun. 30, 2026	Dec. 31, 2025
ASSETS
Cash	$ 214,273	$ 301,680
Short-term investment at fair value	534,348	410,037
Principal-only stripped mortgage-backed securities at fair value pledged to creditors	609,103	722,528
Loans held for sale at fair value ($7,686,901 and $8,983,503 pledged to creditors)	7,819,890	9,123,410
Derivative assets with non-affiliates	200,447	185,518
Derivative assets with PennyMac Mortgage Investment Trust	1,234	2,257
Servicing advances, net (valuation allowance of $128,904 and $103,574; $390,814 and $406,825 pledged to creditors)	589,386	589,542
Mortgage servicing rights at fair value ($10,306,189 and $9,367,851 pledged to creditors)	10,586,794	9,598,941
Investment in PennyMac Mortgage Investment Trust at fair value	846	941
Receivable from PennyMac Mortgage Investment Trust	$ 18,929	$ 17,122
Other Receivable, after Allowance for Credit Loss, Related Party [Extensible Enumeration]	Affiliated Entity [Member]	Affiliated Entity [Member]
Loans eligible for repurchase	$ 8,290,697	$ 7,409,800
Other ($13,976 and $10,393 pledged to creditors)	993,504	1,026,913
Total assets	29,859,451	29,388,689
LIABILITIES
Assets sold under agreements to repurchase	8,435,392	8,794,002
Mortgage loan participation purchase and sale agreements	696,475	696,618
Notes payable secured by mortgage servicing assets	1,425,888	1,326,021
Unsecured senior notes	4,837,096	4,831,742
Derivative liabilities with non-affiliates	34,563	9,559
Derivative liabilities with PennyMac Mortgage Investment Trust	5,239	6,247
Accounts payable and accrued expenses	437,012	645,468
Payable to PennyMac Mortgage Investment Trust	$ 82,517	$ 116,585
Other Liability, Related Party [Extensible Enumeration]	Affiliated Entity [Member]	Affiliated Entity [Member]
Payable to exchanged Private National Mortgage Acceptance Company, LLC unitholders under tax receivable agreement	$ 24,757	$ 24,757
Income taxes payable	1,215,638	1,184,020
Liability for loans eligible for repurchase	8,290,697	7,409,800
Liability for losses under representations and warranties	37,291	34,894
Total liabilities	25,522,565	25,079,713
Commitments and contingencies - Note 18
STOCKHOLDERS' EQUITY
Common stock-authorized 200,000,000 shares of $0.0001 par value; issued and outstanding, 51,943,691 and 52,061,346 shares, respectively	5	5
Additional paid-in capital	52,210	96,870
Retained earnings	4,284,671	4,212,101
Total stockholders' equity	4,336,886	4,308,976
Total liabilities and stockholders' equity	$ 29,859,451	$ 29,388,689