PennyMac Financial Services, Inc.

For the period ended Mar 31, 2026. Filed May 5, 2026.

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.

Mar 31, 2026 · Filed May 5, 2026

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)


· · Quarter ended March 31,
· · 2026 · · 2025
		(in thousands)
Cash flow from operating activities
Net income	$82,322		$76,280
Adjustments to reconcile net income to net cash (used in) provided by operating activities:
Net gains on loans held for sale at fair value	(344,985)		(221,037)
Change in fair value of mortgage servicing rights and mortgage servicing liabilities	171,993		430,956
Mortgage servicing rights hedging results	207,287		(106,774)
Accrual of unearned discounts on principal-only stripped mortgage-backed securities	5,185		(11,335)
Capitalization of interest on loans held for sale	(3,632)		(210)
Amortization of debt issuance costs	8,650		7,072
Results of real estate acquired in settlement in loans	2,316		225
Change in fair value of investment in common shares of PennyMac Mortgage Investment Trust	66		(155)
Stock-based compensation expense	2,447		11,084
Provision for servicing advance losses	19,962		4,184
Depreciation and amortization	13,510		13,896
Impairment of capitalized software	317		—
Amortization of operating lease right-of-use assets	4,227		3,405
Purchase of loans held for sale from non-affiliates	(27,031,441)		(815,720)
Origination of loans held for sale	(10,510,064)		(5,084,079)
Purchase of loans held for sale from PennyMac Mortgage Investment Trust	—		(20,437,666)
Purchase of loans from Ginnie Mae securities and early buyout investors	(661,341)		(1,079,557)
Sale to non-affiliates and principal payment of loans held for sale	32,611,319		27,587,429
Sale of loans held for sale to PennyMac Mortgage Investment Trust	4,380,289		654,808
Repurchase of loans subject to representations and warranties	(24,922)		(19,942)
(Increase) decrease in servicing advances	(97,071)		25,134
Increase in receivable from PennyMac Mortgage Investment Trust	(4,096)		(229)
Sale of real estate acquired in settlement of loans	25,695		19,992
Increase in other assets	(15,605)		(9,458)
(Decrease) increase in accounts payable and accrued expenses	(182,123)		14,769
Decrease in operating lease liabilities	(3,935)		(4,630)
Decrease in payable to PennyMac Mortgage Investment Trust	(20,814)		(20,126)
Increase in income taxes payable	22,471		27,641
Net cash (used in) provided by operating activities	(1,341,973)		1,065,957

Statements continue on the next page

(Continued)

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)


· · Quarter ended March 31,
· · 2026 · · 2025
		(in thousands)
Cash flow from investing activities
Increase in short-term investment	(24,183)		(22,840)
Repayment of principal-only stripped mortgage-backed securities	58,069		37,738
Net settlement of derivative financial instruments used for hedging of mortgage servicing rights	(171,613)		74,572
Adjustment to sales of mortgage servicing rights to non-affiliates	(6,429)		—
Sale of mortgage servicing rights to PennyMac Mortgage Investment Trust	3,922		—
Acquisition of capitalized software	(15,925)		(7,137)
Purchase of furniture, fixtures, equipment and leasehold improvements	(2,250)		(371)
Increase in margin deposits	13,884		(51,578)
Net cash (used in) provided by investing activities	(144,525)		30,384
Cash flow from financing activities
Sale of assets under agreements to repurchase	38,971,144		27,533,478
Repurchase of assets sold under agreements to repurchase	(37,588,456)		(29,161,286)
Issuance of mortgage loan participation purchase and sale certificates	6,985,112		5,807,294
Repayment of mortgage loan participation purchase and sale certificates	(6,990,883)		(5,793,836)
Issuance of notes payable secured by mortgage servicing assets	100,000		—
Repayment of notes payable secured by mortgage servicing assets	—		(325,000)
Issuance of unsecured senior notes	—		850,000
Payment of debt issuance costs	(4,504)		(21,064)
Issuance of common stock by exercise of stock options	3,710		5,452
Payment of withholding taxes relating to stock-based compensation	(6,186)		(3,763)
Payment of dividends to holders of common stock	(15,595)		(15,005)
Repurchase of common stock	(50,011)		—
Net cash provided by (used in) financing activities	1,404,331		(1,123,730)
Net decrease in cash	(82,167)		(27,389)
Cash at beginning of quarter	301,680		238,482
Cash at end of quarter	$219,513		$211,093
Supplemental cash flow information:
Cash paid for interest	$249,269		$205,446
(Refunds received) cash paid for income taxes, net	$(103)		$274
Non-cash investing activities:
Mortgage servicing rights received from loan sales	$719,586		$650,349
Operating right-of-use assets recognized	$1,169		$561
Non-cash financing activities:
Issuance of common stock in settlement of directors' fees	$96		$57

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