10-Q · August 4, 2026
PennyMac Financial reported Q2 2026 net revenue of $496.965 million and diluted EPS of $0.41, with revenue higher than $444.730 million a year earlier but EPS far below $2.54. Revenue also declined from approximately…
Earnings analysis · 10-Q
PFSI earnings analysis
Filed November 3, 2026 · Our reading of the company's report
The latest report
Q3 2026 results showed substantial year-over-year deterioration, with revenue falling 25.6% to $469 million and EPS declining 68.8% to $1.05, while production posted a $7 million pretax loss. Servicing profitability…
Read full summary
Q3 2026 results showed substantial year-over-year deterioration, with revenue falling 25.6% to $469 million and EPS declining 68.8% to $1.05, while production posted a $7 million pretax loss. Servicing profitability improved and EPS rose from $0.41 in Q2, but the quarter missed consensus and mortgage production remained pressured. The balance-sheet and cash-flow statements were not included in the extracted filing text, while the market-risk disclosures quantify significant MSR sensitivity to prepayments, spreads, and servicing costs.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $1.05
- Gross margin
- 100%
- Segment
- Production: $7 million pretax loss in Q3 2026
- Segment
- Servicing: profitability improved, but segment revenue and profit figures were not provided in the extracted filing
What stood out
-
Revenue declined sequentially and year over year
Revenue was $469 million, down $56 million, or 10.7%, from $525 million in Q2 2026 and down $161 million, or 25.6%, from $630 million in Q3 2025.
-
EPS improved sequentially but missed estimates
EPS was $1.05 versus $0.41 in Q2 2026, a $0.64 sequential increase, but down $2.32 from $3.37 in Q3 2025. EPS also missed the $1.25 consensus estimate by $0.20.
-
Production remained a headwind
Mortgage production generated a $7 million pretax loss in Q3 2026 as volumes contracted and margins were pressured, while servicing profitability improved.
-
Repurchase capacity remained unused
The company made no stock repurchases during July, August, or September 2026; $157.6 million remained available under the repurchase authorization at September 30, 2026.
-
MSRs remain highly rate-sensitive
MSR fair value sensitivity was negative $478.3 million for a 20% increase in prepayment speed and negative $360.7 million for a 20% increase in option-adjusted spreads.
What to watch
-
MSR prepayment risk
A 20% increase in MSR prepayment speed was estimated to reduce fair value by $478.300 million as of September 30, 2026, creating material exposure to changes in borrower prepayments and interest rates.
-
Rate and spread volatility
A 20% increase in option-adjusted spreads was estimated to reduce MSR fair value by $360.732 million, while most secured debt financing is based on floating rates, exposing earnings to market and funding-cost volatility.
-
Servicing-cost pressure
A 20% increase in annual per-loan servicing costs was estimated to reduce MSR fair value by $234.917 million. The filing states there were no material changes to the risk factors from the prior Form 10-K, so these exposures remain ongoing rather than newly identified.
Management's outlook
The 10-Q does not provide a quantitative revenue or EPS outlook. The filing states that risk factors had no material changes from the December 31, 2025 Form 10-K.
Earlier filings 4
10-Q · May 5, 2026
PennyMac Financial Services, Inc. reported Q1 2026 results showing a net income of $82.32 million and diluted EPS of $2.19, surpassing analysts' expectations of $2.16. However, revenue of $544.98 million fell short of…
10-K · February 20, 2026
PennyMac Financial Services (PFSI) reported strong top-line and earnings growth in 2025 with total net revenues of $2,046,536,000 and net income of $501,077,000 (diluted EPS $9.30). Growth was driven by production (net…
10-Q · April 29, 2025
PennyMac Financial Services reported Q1 net revenues of $430,903,000 and diluted EPS of $1.42, up meaningfully year-over-year from $305,660,000 and $0.74 (Q1 2024). Operating performance and cash generation…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.