PennyMac Financial Services, Inc.

For the period ended Sep 30, 2026. Filed Nov 3, 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.

Sep 30, 2026 · Filed Nov 3, 2026

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

Extracted filing text, with the paragraph anchors used by the comparison.

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Contents

Consolidated Statements of Cash Flows

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)


· · Nine months ended September 30,
· · 2026 · · 2025
		(in thousands)
Cash flow from operating activities
Net income	$132,702		$394,246
Adjustments to reconcile net income to net cash provided by operating activities:
Net gains on loans held for sale at fair value	(815,531)		(770,151)
Change in fair value of mortgage servicing rights and mortgage servicing liabilities	(284,930)		1,070,300
Mortgage servicing rights hedging results	1,340,540		(95,978)
Accrual of unearned discounts on principal-only stripped mortgage-backed securities	5,320		(31,676)
Capitalization of interest on loans held for sale	(4,165)		(1,839)
Amortization of debt issuance costs	27,343		24,835
Results of real estate acquired in settlement in loans	6,253		1,159
Change in fair value of investment in common shares of PennyMac Mortgage Investment Trust	350		24
Repricing of payable to exchanged Private National Mortgage Acceptance Company, LLC unitholders under tax receivable agreement	—		(1,092)
Stock-based compensation expense	13,356		28,531
Provision for servicing advance losses	65,536		22,100
Depreciation and amortization	41,850		41,583
Impairment of capitalized software	1,576		4,333
Amortization of operating lease right-of-use assets	13,029		10,555
Purchase of loans held for sale from non-affiliates	(69,605,430)		(26,920,281)
Origination of loans held for sale	(27,731,367)		(18,739,010)
Purchase of loans held for sale from PennyMac Mortgage Investment Trust	—		(52,856,500)
Purchase of loans from Ginnie Mae securities and early buyout investors	(3,322,729)		(3,412,426)
Sale to non-affiliates and principal payment of loans held for sale	89,363,924		95,792,613
Sale of loans held for sale to PennyMac Mortgage Investment Trust	12,702,942		5,673,014
Repurchase of loans subject to representations and warranties	(88,087)		(77,071)
(Increase) decrease in servicing advances	(240,485)		7,508
Increase in receivable from PennyMac Mortgage Investment Trust	(14,365)		(16,256)
Sale of real estate acquired in settlement of loans	67,890		53,576
Decrease (increase) in other assets	163,127		(53,288)
(Decrease) increase in accounts payable and accrued expenses	(165,490)		117,010
Decrease in operating lease liabilities	(12,110)		(13,846)
Decrease in payable to PennyMac Mortgage Investment Trust	(50,832)		(35,099)
Increase in income taxes payable	45,278		20,395
Net cash provided by operating activities	1,655,495		237,269

Statements continue on the next page

(Continued)

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)


· · Nine months ended September 30,
· · 2026 · · 2025
		(in thousands)
Cash flow from investing activities
(Increase) decrease in short-term investment	(2,485)		358,325
Repayment of principal-only stripped mortgage-backed securities	146,421		119,258
Net settlement of derivative financial instruments used for hedging of mortgage servicing rights	(1,349,779)		143,439
(Adjustment to sale) sale of mortgage servicing rights to non-affiliates	(6,429)		165,162
Sale of mortgage servicing rights to PennyMac Mortgage Investment Trust	14,415		1,895
Acquisition of capitalized software	(41,193)		(24,484)
Purchase of furniture, fixtures, equipment and leasehold improvements	(9,679)		(3,751)
Decrease (increase) in margin deposits	52,201		(133,835)
Net cash (used in) provided by investing activities	(1,196,528)		626,009
Cash flow from financing activities
Sale of assets under agreements to repurchase	102,173,917		101,562,221
Repurchase of assets sold under agreements to repurchase	(102,877,178)		(103,118,313)
Issuance of mortgage loan participation purchase and sale certificates	19,269,286		18,936,637
Repayment of mortgage loan participation purchase and sale certificates	(19,287,793)		(18,733,607)
Issuance of notes payable secured by mortgage servicing assets	690,000		525,000
Repayment of notes payable secured by mortgage servicing assets	(375,000)		(1,250,000)
Issuance of unsecured senior notes	—		2,350,000
Repayment of unsecured senior notes	—		(650,000)
Payment of debt issuance costs	(21,798)		(57,062)
Issuance of common stock by exercise of stock options	4,858		10,406
Payment of withholding taxes relating to stock-based compensation	(6,210)		(3,763)
Payment of dividends to holders of common stock	(47,367)		(46,619)
Repurchase of common stock	(50,011)		(4,739)
Net cash used in financing activities	(527,296)		(479,839)
Net (decrease) increase in cash	(68,329)		383,439
Cash at beginning of period	301,680		238,482
Cash at end of period	$233,351		$621,921
Supplemental cash flow information:
Cash paid for interest	$777,105		$700,541
Cash paid for income taxes, net	$783		$2,371
Non-cash investing activities:
Mortgage servicing rights received from loan sales	$1,763,278		$2,165,213
Unsettled portion of MSR sales	$—		$18,352
Operating right-of-use assets recognized	$32,561		$13,622
Non-cash financing activities:
Issuance of common stock in settlement of directors' fees	$279		$173

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The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.