PennyMac Financial Services (NYSE:PFSI), a top mortgage lender and servicer, released its second-quarter 2025 earnings on July 22, 2025. The company reported GAAP EPS of $2.54, underperforming the analyst estimate of $2.75 (GAAP). Revenue (GAAP) reached $444.7 million, well below the $553.8 million (GAAP) expected. Despite these shortfalls, the company expanded its servicing portfolio to $699.7 billion and increased book value per share to $78.04. The quarter was marked by strong origination and servicing volume, but profitability was pressured by higher expenses, margin compression, and unfavorable hedging results.

Source: PennyMac Financial. Note: Analyst estimates provided by FactSet.

PennyMac Financial Services operates as a major mortgage lender and servicer in the United States. It sources, originates, and processes home loans through retail, broker, and correspondent channels. After funding loans, it either sells the assets or retains the right to service them, which involves managing payments, customer support, and default management.

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Source Fool.com