PennyMac Financial Services reported net income of $106.8 million for the fourth quarter of 2025, or $1.97 per diluted share, missing the Zacks Consensus Estimate of $3.23 per share and below the $2.88 per share posted in the year-ago period. Total net revenues for the quarter reached $538.0 million. The Board of Directors declared a cash dividend of $0.30 per share payable on February 26, 2026 to shareholders of record as of February 16, 2026. Book value per share rose to $82.77 from $81.12 at the end of the third quarter.

Production segment pretax income climbed to $127.3 million, up 3.6% sequentially and 63% year-over-year, driven by $42.2 billion in unpaid principal balance (UPB) of loan acquisitions and originations (up 16% sequentially and 18% versus Q4 2024). Net gains on loans held for sale totaled $276.1 million. Servicing segment pretax income declined to $37.3 million (from $157.4 million in Q3), with valuation-related fair value gains of $40.4 million largely offset by hedging losses of $39.4 million. The servicing portfolio grew 2% sequentially and 10% year-over-year to $733.6 billion in UPB, while a $24.4 billion MSR portfolio sale closed, with PennyMac subservicing through year end.

For the full year, PennyMac generated net income of $501.1 million, up 61% from 2024, on total net revenue of $2.0 billion (up 25%). Pretax income was $551.4 million (up 37%). Total loan production reached $145.5 billion in UPB, a 25% increase, and the servicing portfolio finished at $733.6 billion UPB, up 10%. The company issued $2.35 billion of unsecured senior notes and $300 million of Ginnie Mae MSR term notes while redeeming $650 million and $700 million of the same securities, respectively. Return on equity for the year was 12%, and book value per share grew 11%, reflecting disciplined execution and balanced segment contributions.