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PFSI

PennyMac Financial Services, Inc.

PFSI

PennyMac Financial Services, Inc. • NYSE
$134.57 ▼ -1.10% (-1.49)
Market Cap $6.94 B
52w High $136.62
52w Low $85.74
Dividend Yield 1.20%
P/E 14.47
Volume 156.96K
Outstanding Shares 51.55M

Income Statement

Period Revenue Operating Expense Net Income Net Profit Margin Earnings Per Share EBITDA
Q3-2025 $632.898M ▼ $219.33M ▼ $181.503M ▲ 28.678% ▲ $3.51 ▲ $486.274M ▲
Q2-2025 $931.582M ▼ $406.575M ▼ $136.463M ▲ 14.649% ▲ $2.64 ▲ $95.224M ▼
Q1-2025 $1.07B ▲ $582.534M ▲ $76.28M ▼ 7.131% ▼ $1.48 ▼ $121.822M ▼
Q4-2024 $470.11M ▲ $180.855M ▲ $104.489M ▲ 22.227% ▲ $2.04 ▲ $148.247M ▲
Q3-2024 $411.834M $176.404M $69.368M 16.844% $1.36 $111.236M

Balance Statement

Period Cash & Short-term Total Assets Total Liabilities Total Equity
Q3-2025 $621.921M ▼ $25.401B ▲ $21.193B ▲ $4.208B ▲
Q2-2025 $624.448M ▼ $24.222B ▲ $20.189B ▲ $4.032B ▲
Q1-2025 $654.486M ▼ $23.873B ▼ $19.969B ▼ $3.904B ▲
Q4-2024 $659.035M ▼ $26.087B ▲ $22.257B ▲ $3.83B ▲
Q3-2024 $813.748M $22.872B $19.132B $3.739B

Cash Flow Statement

Period Net Income Cash From Operations Cash From Investing Cash From Financing Net Change Free Cash Flow
Q3-2025 $181.503M ▲ $-697.373M ▼ $753.042M ▲ $404.066M ▲ $459.735M ▲ $-707.649M ▼
Q2-2025 $136.463M ▲ $-131.315M ▼ $-157.417M ▼ $239.825M ▲ $-48.907M ▼ $-141.766M ▼
Q1-2025 $76.28M ▼ $1.066B ▲ $30.384M ▲ $-1.124B ▼ $-27.389M ▼ $1.058B ▲
Q4-2024 $104.489M ▲ $-2.149B ▼ $-128.345M ▲ $2.37B ▲ $92.668M ▲ $-2.156B ▼
Q3-2024 $69.368M $-393.708M $-239.204M $183.39M $-449.522M $-398.196M

Revenue by Products

Product Q4-2024Q1-2025Q2-2025Q3-2025
Mortgage banking Production
Mortgage banking Production
 $260.00M ▲$250.00M ▼$280.00M ▲$360.00M ▲
Mortgage banking Servicing
Mortgage banking Servicing
 $180.00M ▲$170.00M ▼$150.00M ▼$260.00M ▲

Five-Year Company Overview

Income Statement

Income Statement Earnings have come down a lot from the mortgage boom years, but they are clearly better than the weak point seen a couple of years ago. Revenue has shrunk from peak levels, yet the company has managed to protect a decent portion of its profits through cost control and efficiency. Net income and earnings per share are now much lower than in the pandemic surge, which reflects a tougher rate environment and lower refinancing activity, not a broken business model. Overall, this looks like a cyclical normalization with some margin resilience rather than a straight collapse.

Balance Sheet

Balance Sheet The balance sheet is built around a loan-heavy, capital‑intensive model, which naturally brings high debt levels for funding mortgages. Equity has edged up over time, suggesting gradual value build for owners despite the cycle. Cash on hand is modest, so the firm relies more on credit lines and financing facilities than on large cash reserves, which is typical for this type of business but still a point to watch. The key question is ongoing access to funding and prudent leverage management rather than raw balance of cash versus debt.

Cash Flow

Cash Flow Cash flow swings sharply from year to year, which is common in mortgage finance where loans are originated, sold, and serviced in big waves. Some years show strong cash inflows, while others show sizeable outflows driven mainly by working capital movements, not heavy investment spending. Actual capital expenditures are small, so most of the volatility comes from how loans and funding move through the system. This pattern puts the focus on liquidity management and funding flexibility rather than on large, lumpy investment projects.

Competitive Edge

Competitive Edge PennyMac sits in a scale-driven, intensely competitive mortgage market, but it has carved out a strong position through both size and technology. Its very large servicing portfolio provides a recurring revenue base and a steady stream of customer relationships, which can be tapped when markets are more favorable. The firm competes across multiple channels—direct to consumer, correspondent, and broker—which broadens its reach and helps balance different phases of the housing cycle. Main pressures come from rate-sensitive volumes, aggressive pricing by rivals, and regulatory complexity, but its cost and technology advantages give it meaningful defenses.

Innovation and R&D

Innovation and R&D The company is leaning heavily into technology rather than traditional lab-style R&D, with dozens of AI tools embedded across the business. These tools cut servicing and processing costs, speed up workflows, and free staff to handle more complex tasks, which can improve both customer experience and profitability. The partnership with a modern, cloud-based loan origination platform and the appointment of digital-focused leadership show a clear commitment to ongoing digital transformation. The strategy resembles a self-reinforcing loop: savings from automation are reinvested into even better systems, deepening the moat over time if execution stays on track.

Summary

PennyMac looks like a mortgage specialist that boomed in the low‑rate era, then reset to more normal earnings as rates rose and refinancing slowed. Profitability is well below the peak years but has improved from the post‑boom trough, helped by disciplined costs and a large servicing base. The balance sheet is highly leveraged, as is typical for the business model, and cash flows are choppy, making funding access and risk management central to its resilience. Where the company stands out is in its tech-led, AI‑driven operations and modern loan platforms, which together create a cost and efficiency edge. Future performance will hinge on interest rate trends, housing activity, regulatory conditions, and continued successful rollout of its technology—factors that can drive results meaningfully up or down over time.

NEWS

October 21, 2025 · 4:15 PM UTC

PennyMac Financial Services, Inc. Reports Third Quarter 2025 Results

Read more

October 6, 2025 · 4:15 PM UTC

Pennymac Announces Organizational Changes

Read more