Revenue: As of FY2026 Q2, the actual value is USD 497 M.

EPS: As of FY2026 Q2, the actual value is USD 0.41, missing the estimate of USD 2.2794.

EBIT: As of FY2026 Q2, the actual value is USD 32 M.

Overall Financial Performance (Second Quarter 2026)

PennyMac Financial Services, Inc. reported net income of $22 million, an 84% decrease year-over-year from $136 million in the second quarter of 2025. Total net revenues were $497 million, increasing 12% year-over-year from $445 million. Adjusted net income was $74 million, a 40% decrease year-over-year from $124 million. Adjusted net revenues were $566 million, up 5% year-over-year from $537 million. The annualized return on equity (ROE) was 2%, down from 14% in the prior year, while the annualized adjusted ROE was 7%, down from 13% year-over-year. Book value per share stood at $83.49, a 7% increase from $78.04 as of June 30, 2025. The Board of Directors declared a second quarter cash dividend of $0.30 per share, consistent with the prior year. Total liquidity was $4,010 million, a 4% decrease year-over-year from $4,163 million. Total equity increased by 8% year-over-year to $4,337 million, and tangible equity also increased by 8% year-over-year to $4,226 million. Pretax income totaled $38 million. Pretax income excluding valuation-related changes was $22 million. Valuation-related changes amounted to - $77 million.

Production Segment

In the Production segment, pretax income was $38 million, a 33% decrease year-over-year from $58 million in the second quarter of 2025. Revenues, net of loan origination expenses, were $243 million, increasing 15% year-over-year from $211 million. Expenses, net of loan origination expenses, were $205 million, a 34% increase year-over-year from $153 million. Production revenue margins were 77 basis points of total fallout adjusted lock volume, up from 55 basis points in the second quarter of 2025. Total loan acquisitions and originations were $34.9 billion in unpaid principal balance (UPB), an 8% decrease year-over-year from $37.9 billion. Consumer direct originations were $5.6 billion in UPB, a 103% increase year-over-year from $2.8 billion. Government first-lien refinance recapture rates increased by 15 percentage points year-over-year to 59%, and conventional first-lien refinance recapture rates increased by 12 percentage points year-over-year to 29%. Quarter-over-quarter, the Production segment’s pretax income was $38 million, a decrease from $134 million in the first quarter of 2026. Total Production revenues were $243 million, down from $327 million in the first quarter of 2026. Production expenses increased to $205 million from $194 million in the first quarter of 2026. PFSI correspondent revenue contribution declined to $52 million from $61 million in the first quarter of 2026. Broker direct revenue contribution slightly decreased to $67 million from $70 million in the first quarter of 2026. Consumer direct revenue contribution decreased to $142 million from $178 million in the first quarter of 2026. Post-lock impacts and other items resulted in - $23 million, compared to $13 million in the first quarter of 2026.

Servicing Segment

The Servicing segment reported pretax income of $22 million, a 60% decrease year-over-year from $54 million in the second quarter of 2025. Pretax income excluding valuation-related changes was $99 million, a 32% decrease year-over-year from $146 million. Servicing revenues excluding valuation-related items totaled $369 million, a 6% decrease year-over-year from $392 million. Servicing expenses excluding valuation-related items were $270 million, a 10% increase year-over-year from $246 million. MSR and hedging-related losses were - $77 million, compared to - $92 million in the second quarter of 2025. The owned servicing portfolio totaled $488 billion in UPB at June 30, 2026, up 5% from $463 billion at June 30, 2025. The total servicing portfolio UPB was $731 billion, up 4% year-over-year from $700 billion. Total loans serviced increased by 2% year-over-year to 2,753 thousand. The 60+ Day Delinquency rate for the owned portfolio was 4.1%, an increase of 0.9% year-over-year from 3.2%. Quarter-over-quarter, the Servicing segment’s pretax income was $22 million, an increase from $13 million in the first quarter of 2026. The total servicing portfolio UPB was $731 billion, representing a 1% increase quarter-over-quarter. The number of loans serviced increased to 2,753 thousand from 2,725 thousand in the first quarter of 2026. The 60+ day delinquency rate for the owned portfolio slightly decreased to 4.1% from 4.2% in the first quarter of 2026. The Actual Conditional Prepayment Rate (CPR) for the owned portfolio was 11.6%, down from 13.7% in the first quarter of 2026. UPB of completed modifications increased to $2,850 million from $1,400 million in the first quarter of 2026. EBO loan volume increased to $1,218 million from $632 million in the first quarter of 2026. Loan servicing fees were $536 million, up from $532 million in the first quarter of 2026. Earnings on custodial balances and deposits and other income increased to $119 million from $105 million in the first quarter of 2026. Realization of MSR cash flows was - $323 million, an improvement from - $355 million in the first quarter of 2026. Servicing operating expenses were - $76 million, down from - $81 million in the first quarter of 2026. Interest expense for the Servicing segment increased to - $140 million from - $125 million in the first quarter of 2026. Non-GAAP pretax income excluding valuation-related changes was $99 million, up from $57 million in the first quarter of 2026.

Corporate and Other

Pretax loss from Corporate and other was - $29 million, compared to a loss of - $35 million in the second quarter of 2025. Revenues were $23 million, a 98% increase year-over-year from $12 million, primarily due to a non-recurring gain from a minority equity interest in Vesta. Expenses were $52 million, a 10% increase year-over-year from $47 million, primarily driven by higher marketing, advertising, and legal expenses.

Operational Metrics

PennyMac Financial Services, Inc. continued progress on the acquisition of Cenlar’s subservicing business, with an expected close in the fourth quarter. Servicing advances outstanding for PennyMac Financial Services, Inc.’s MSR portfolio were approximately $526 million at June 30, 2026, down from $545 million at March 31, 2026.

Outlook / Guidance

PennyMac Financial Services, Inc. expects annualized adjusted ROEs to remain in the high single digits through 2026 due to a projected smaller origination market resulting from higher interest rates. The company plans to reduce its expense base to mitigate these impacts and is driving toward mid-teens returns on equity through structural cost reductions, technology expense inflection, and capital-light fee growth. These initiatives include the expected addition of stable, contractual fee revenue from the Cenlar acquisition and continued growth in recapture rates and broker direct.