PennyMac Financial Services, Inc.

For the period ended Sep 30, 2025. Filed Oct 28, 2025.

About this filing

A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.

Sep 30, 2025 · Filed Oct 28, 2025

PFSI$62.85-5.4%Stored close · as of Nov 10, 2026

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Contents

Consolidated Statements of Cash Flows

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)


· · Nine months ended September 30,
· 2025 · 2024
		(in thousands)
Cash flow from operating activities
Net income	$394,246		$206,934
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Net gains on loans held for sale at fair value	(770,151)		(595,324)
Change in fair value of mortgage servicing rights and mortgage servicing liabilities	1,070,300		758,158
Mortgage servicing rights hedging results	(95,978)		224,371
Accrual of unearned discounts on principal-only stripped mortgage-backed securities	(31,676)		(29,219)
Capitalization of interest on loans held for sale	(1,839)		(362)
Amortization of debt issuance costs	24,835		21,860
Results of real estate acquired in settlement in loans	1,159		(330)
Change in fair value of investment in common shares of PennyMac Mortgage Investment Trust	24		51
Repricing of payable to exchanged Private National Mortgage Acceptance Company, LLC unitholders under tax receivable agreement	(1,092)		—
Stock-based compensation expense	28,531		21,314
Provision for servicing advance losses	22,100		13,974
Depreciation and amortization	41,583		42,165
Impairment of capitalized software	4,333		—
Amortization of operating lease right-of-use assets	10,555		10,256
Purchase of loans held for sale from PennyMac Mortgage Investment Trust	(52,856,500)		(57,502,461)
Purchase of loans held for sale from non-affiliates	(26,920,281)		(1,933,158)
Origination of loans held for sale	(18,739,010)		(12,069,838)
Purchase of loans from Ginnie Mae securities and early buyout investors	(3,412,426)		(2,379,099)
Sale to non-affiliates and principal payment of loans held for sale	95,792,613		70,706,054
Sale of loans held for sale to PennyMac Mortgage Investment Trust	5,673,014		191,250
Repurchase of loans subject to representations and warranties	(77,071)		(70,700)
Decrease in servicing advances	7,508		194,088
Increase in receivable from PennyMac Mortgage Investment Trust	(16,256)		(5,451)
Sale of real estate acquired in settlement of loans	53,576		37,840
Increase in other assets	(53,288)		(42,377)
Increase (decrease) in accounts payable and accrued expenses	117,010		(106,125)
Decrease in operating lease liabilities	(13,846)		(13,359)
Decrease in payable to PennyMac Mortgage Investment Trust	(35,099)		(127,710)
Increase in income taxes payable	20,395		62,664
Net cash provided by (used in) operating activities	237,269		(2,384,534)

Statements continue on the next page

(Continued)

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)


· · Nine months ended September 30,
· 2025 · 2024
		(in thousands)
Cash flow from investing activities
Decrease (increase) in short-term investment	358,325		(657,666)
Purchase of principal-only stripped mortgage-backed securities	—		(935,356)
Repayment of principal-only stripped mortgage-backed securities	119,258		36,506
Sale of interest-only stripped mortgage-backed securities	—		121,520
Net settlement of derivative financial instruments used for hedging of mortgage servicing rights	143,439		(210,157)
Sale of mortgage servicing rights to non-affiliates	165,162		—
Sale of mortgage servicing rights to PennyMac Mortgage Investment Trust	1,895		—
Acquisition of capitalized software	(24,484)		(13,001)
Purchase of furniture, fixtures, equipment and leasehold improvements	(3,751)		(1,467)
Increase in margin deposits	(133,835)		(99,989)
Net cash provided by (used in) investing activities	626,009		(1,759,610)
Cash flow from financing activities
Sale of assets under agreements to repurchase	101,562,221		77,065,706
Repurchase of assets sold under agreements to repurchase	(103,118,313)		(74,225,451)
Issuance of mortgage loan participation purchase and sale certificates	18,936,637		17,117,748
Repayment of mortgage loan participation purchase and sale certificates	(18,733,607)		(17,046,112)
Issuance of notes payable secured by mortgage servicing assets	525,000		725,000
Repayment of notes payable secured by mortgage servicing assets	(1,250,000)		(875,000)
Issuance of unsecured senior notes	2,350,000		650,000
Repayment of unsecured senior notes	(650,000)		—
Payment of debt issuance costs	(57,062)		(32,432)
Issuance of common stock by exercise of stock options	10,406		18,016
Payment of withholding taxes relating to stock-based compensation	(3,763)		(9,401)
Payment of dividends to holders of common stock	(46,619)		(36,487)
Repurchase of common stock	(4,739)		—
Net cash (used in) provided by financing activities	(479,839)		3,351,587
Net increase (decrease) in cash	383,439		(792,557)
Cash at beginning of period	238,482		938,371
Cash at end of period	$621,921		$145,814
Supplemental cash flow information:
Cash paid for interest	$700,541		$571,461
Cash paid for income taxes, net	$2,371		$2,064
Non-cash investing activities:
Mortgage servicing rights received from loan sales	$2,165,213		$1,532,709
Unsettled portion of MSR sales	$18,352		$—
Exchange of mortgage servicing spread for interest-only stripped mortgage-backed securities	$—		$121,520
Operating right-of-use assets recognized	$13,622		$1,388
Non-cash financing activities:
Issuance of common stock in settlement of directors' fees	$173		$199

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