PennyMac Financial Services, Inc.

For the period ended Jun 30, 2026. Filed Aug 4, 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.

Jun 30, 2026 · Filed Aug 4, 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)


· · Six months ended June 30,
· · 2026 · · 2025
		(in thousands)
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

Statements continue on the next page

(Continued)

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)


· · Six months ended June 30,
· · 2026 · · 2025
		(in thousands)
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

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