PennyMac Financial Services (PFSI) investor relations material

Executive summary

• Q4 2025 net income was $107 million ($1.97 per share), with annualized ROE of 10% and book value per share rising to $82.77.

• Full-year 2025 net income rose 61% year-over-year to $501.1 million, with a 12% ROE and 11% book value per share growth.

• Production and servicing segments both grew, though servicing income was impacted by increased MSR runoff and prepayments.

• Technology investments, notably the Vesta loan origination system, drove efficiency and capacity gains.

• Dividend of $0.30 per share declared for Q4.

Financial highlights

• Q4 pretax income was $127 million in production and $37 million in servicing; total Q4 acquisition and origination volumes reached $42.2 billion UPB, up 16% sequentially.

• Book value per share reached $82.77 at year-end, up 11% year-over-year.

• Servicing portfolio UPB grew 10% year-over-year to $734 billion.

• Dividend per common share was $0.30 for the quarter.

• Total net revenue for 2025 was $2.0 billion, up from $1.6 billion in 2024.

Outlook and guidance

• ROE expected to ramp from low double digits to mid-to-high teens through 2026 as operational efficiencies and technology investments take effect.

• Origination market forecasted at $2.3–$2.4 trillion for 2026.

• Production income expected to rise as capacity and technology investments take effect.

• Realization of MSR cash flows anticipated to remain at Q4 levels throughout 2026.

• Management expects continued growth in 2026, citing a balanced business model and technology investments as key drivers.