Pennymac Financial Services, Inc. (NYSE: PFSI) has reported its third-quarter 2025 results, revealing a net income of $181.5 million, translating to $3.37 per share on a diluted basis. This was achieved on total net revenues of $632.9 million, with book value per share increasing to $81.12 from $78.04 at June 30, 2025.
The company's third-quarter highlights include a significant increase in pretax income, which reached $236.4 million, up from $76.4 million in the prior quarter and $93.9 million in the third quarter of 2024. The production segment pretax income also surged to $122.9 million from $57.8 million in the prior quarter. However, it slightly declined from $129.4 million in the third quarter of 2024.
Total loan acquisitions and originations, including those fulfilled for Pennymac Mortgage Investment Trust (NYSE: PMT), amounted to $36.5 billion in unpaid principal balance (UPB), marking a 4% decrease from the prior quarter but a 15% increase from the third quarter of 2024.
The servicing segment also saw a notable increase in pretax income, reaching $157.4 million, up from $54.2 million in the prior quarter and $3.3 million in the third quarter of 2024. This was primarily driven by a reduction in net valuation-related losses. Moreover, the servicing portfolio grew to $716.6 billion in UPB, reflecting a 2% increase from June 30, 2025, and an 11% increase from September 30, 2024.
Pennymac Financial also declared a third quarter cash dividend of $0.30 per share, payable on November 26, 2025, to common stockholders of record as of November 17, 2025.
The company repurchased 50,300 shares of PFSI’s common stock at an average price of $94.19 per share for a cost of $4.7 million and issued $650 million of 8.5-year unsecured senior notes due in February 2034 as well as $300 million of 5-year term notes secured by Ginnie Mae MSR and servicing advances.
Chairman and CEO David Spector stated, “Pennymac Financial delivered outstanding financial and operational results in the third quarter, with an 18 percent return on equity,” attributing the substantial increase in profitability to the company's growing servicing portfolio and industry-leading low-cost structure.
Spector also announced a strategic transaction with Annaly Capital Management, Inc. (NYSE: NLY), involving the sale of low-interest rate MSRs with an underlying UPB of $12 billion, while retaining subservicing and recapture opportunities for this portfolio. He emphasized the company's long-standing track record as best-in-class stewards of stockholder capital, ensuring the balance sheet is optimized for continued execution and growth.
In addition, the following table presents the contributions of Pennymac Financial’s segments to pretax income:
Production Pretax Income: $122.9 million Servicing Pretax Income: $157.4 million Reportable Segment Total: $280.3 million Corporate and Other: $(43.9) million Total: $236.4 million
The company's detailed financials illustrate its strong performance and strategic growth initiatives, positioning it for continued success in the market. Today the company's shares have moved 1.16% to a price of $121.40. For more information, read the company's full 8-K submission here.
