Financial Performance - Net income for 2Q25 was $136 million, including an $82 million non-recurring tax benefit, resulting in diluted EPS of $2.54[7, 8] - The company achieved an annualized operating ROE of 13% and a book value per share of $78.04[7] - Total loan acquisitions and originations reached $379 billion, with correspondent lock volume at $287 billion, broker direct lock volume at $72 billion, and consumer direct lock volume at $38 billion[7] Segment Results - The production segment reported a pretax income of $58 million, while the servicing segment's pretax income, excluding valuation-related items, was $144 million[7] - MSR fair value changes and hedging resulted in a $(93) million impact, with a corresponding $(130) impact to diluted EPS[7] Strategic Initiatives and Market Position - The company aims to deliver mid-to-high teens operating returns on equity, expecting servicing to provide a strong base level of operating earnings[10, 12] - Pennymac is the outright leader in correspondent lending with $150 billion UPB of annual production capacity and 771 active clients across the US[19, 22] - The company is rapidly growing as a wholesale lender, holding the 3 market position[24, 26] Artificial Intelligence - Pennymac is building momentum in the deployment of artificial intelligence, with 35+ AI tools and applications projected to generate approximately $25 million annually in economic benefit[38, 41] - The company's vision for AI includes fully automated loan processing and self-service origination and servicing[46, 50] Servicing Portfolio - The total servicing portfolio UPB reached $700 billion as of June 30, 2025[7]

[Q2 2025 Performance Summary](index=1&type=section&id=Q2%202025%20Performance%20Summary) [Financial and Operational Highlights](index=1&type=section&id=Financial%20and%20Operational%20Highlights) PennyMac Financial Services reported a net income of $136.5 million, or $2.54 per diluted share, driven by a non-recurring tax benefit, alongside significant growth in loan production to $37.9 billion and a servicing portfolio expansion to nearly $700 billion Q2 2025 Key Financial Metrics | Metric | Q2 2025 | Q1 2025 | Q2 2024 | | :--- | :--- | :--- | :--- | | Net Income | $136.5 million | $76.3 million | $98.3 million | | Diluted EPS | $2.54 | $1.42 | $1.85 | | Revenue | $444.7 million | $430.9 million | $406.1 million | | Pretax Income | $76.4 million | $104.2 million | $133.9 million | | Book Value Per Share | $78.04 | $75.57 | N/A | | Quarterly Dividend | $0.30 | $0.30 | $0.20 | - Total loan acquisitions and originations grew to **$37.9 billion** in unpaid principal balance (UPB), a **31% increase** from the prior quarter and a **39% increase** from Q2 2024[4](index=4&type=chunk) - The servicing portfolio grew to **$699.7 billion** in UPB, up **3%** from the prior quarter and **11%** from the prior year, now serving **2.7 million** customers[5](index=5&type=chunk)[6](index=6&type=chunk) - The company recorded a significant non-recurring tax benefit of **$81.6 million** due to state apportionment changes, which contributed **$1.52** to diluted EPS[6](index=6&type=chunk) - Financing activities included issuing **$850 million** of 7-year senior notes and redeeming **$650 million** of notes due in 2025 and **$500 million** of notes due in 2027[6](index=6&type=chunk) [Management Commentary](index=2&type=section&id=Management%20Commentary) Management attributed solid financial performance to a multi-channel production approach and organic servicing portfolio growth, emphasizing broad AI implementation for efficiency gains and long-term stockholder value - The company's multi-channel production approach is credited with maintaining a leading market position, resulting in nearly **$40 billion** in UPB of mortgage loan acquisitions and originations in Q2[5](index=5&type=chunk) - A key strategic initiative is the broad implementation of artificial intelligence (AI) across both production and servicing operations, which is expected to unlock significant efficiency gains[5](index=5&type=chunk) - Management expressed excitement about future opportunities, citing strong core operations and the anticipated benefits from AI implementation[5](index=5&type=chunk) [Segment Performance](index=3&type=section&id=Segment%20Performance) [Segment Pretax Income Summary](index=3&type=section&id=Segment%20Pretax%20Income%20Summary) Production and Servicing segments were primary profit contributors with pretax incomes of $57.8 million and $54.2 million respectively, while Corporate and Other recorded a $35.5 million loss, leading to a consolidated pretax income of $76.4 million Q2 2025 Pretax Income by Segment (in thousands) | Segment | Revenue | Expenses | Pretax Income (Loss) | | :--- | :--- | :--- | :--- | | Production | $279,581 | $221,793 | $57,788 | | Servicing | $153,399 | $99,247 | $54,152 | | Corporate and Other | $11,750 | $47,248 | $(35,498) | | **Total** | **$444,730** | **$368,288** | **$76,442** | [Production Segment](index=3&type=section&id=Production%20Segment) The Production segment's pretax income was $57.8 million, driven by a 13% revenue increase to $279.6 million from higher loan production volumes of $37.9 billion UPB, despite a 19% rise in expenses Production Segment Performance | Metric | Q2 2025 | Q1 2025 | Q2 2024 | | :--- | :--- | :--- | :--- | | Pretax Income | $57.8 million | $61.9 million | $55.2 million | | Revenue | $279.6 million | N/A | N/A | | Total Loan Production (UPB) | $37.9 billion | N/A | N/A | | Total Locks (UPB) | $43.1 billion | N/A | N/A | - Revenue growth was primarily due to higher overall volumes. Net gains on loans held for sale increased to **$204.0 million** from **$187.1 million** in the prior quarter[10](index=10&type=chunk)[11](index=11&type=chunk) - Segment expenses increased by **19%** from the prior quarter to **$221.8 million**, mainly driven by higher loan origination expenses tied to increased broker compensation[15](index=15&type=chunk) - Fulfillment fees from PMT rose to **$5.8 million**, up **10%** from the prior quarter, due to higher conventional acquisition volumes. A renewed agreement effective July 1, 2025, modifies the loan acquisition process with PMT[12](index=12&type=chunk)[13](index=13&type=chunk) [Servicing Segment](index=5&type=section&id=Servicing%20Segment) The Servicing segment's pretax income declined to $54.2 million, despite portfolio growth to $699.7 billion UPB, primarily due to $93.2 million in net valuation-related losses, including $109.1 million in hedging losses Servicing Portfolio UPB (in billions) | Portfolio Type | June 30, 2025 | March 31, 2025 | June 30, 2024 | | :--- | :--- | :--- | :--- | | Owned MSR | $469.9 | $449.1 | $402.6 | | Subserviced | $229.7 | $231.1 | $230.2 | | **Total Serviced** | **$699.7** | **$680.2** | **$632.7** | - Servicing segment pretax income was **$54.2 million**, down from **$76.0 million** in Q1 2025 and **$90.7 million** in Q2 2024[17](index=17&type=chunk) - Net valuation-related losses totaled **$93.2 million**, consisting of **$15.9 million** in MSR fair value gains more than offset by **$109.1 million** in hedging losses. Hedging was negatively impacted by extreme rate volatility in April[6](index=6&type=chunk)[18](index=18&type=chunk) - Excluding valuation changes, pretax income was **$143.7 million**, down **16%** from the prior quarter, as higher servicing fees were offset by increased realization of MSR cash flows and interest expense[4](index=4&type=chunk) [Corporate and Other](index=7&type=section&id=Corporate%20and%20Other) The Corporate and Other segment reported a pretax loss of $35.5 million, with revenues of $11.8 million primarily from base management fees and total expenses of $47.2 million Corporate and Other Performance (in millions) | Metric | Q2 2025 | Q1 2025 | Q2 2024 | | :--- | :--- | :--- | :--- | | Pretax Loss | $(35.5) | $(33.7) | $(12.0) | | Total Revenues | $11.8 | N/A | $23.1 | | - Base Management Fees | $6.9 | $7.0 | $7.1 | | - Performance Incentive Fees | $0.0 | $0.0 | $0.0 | | Total Expenses | $47.2 | $46.1 | $35.1 | [Consolidated Financial Details](index=8&type=section&id=Consolidated%20Financial%20Details) [Consolidated Expenses](index=8&type=section&id=Consolidated%20Expenses) Total consolidated expenses increased to $368.3 million, primarily driven by higher loan origination expenses due to increased production volumes - Total expenses were **$368.3 million**, up from **$326.7 million** in Q1 2025[25](index=25&type=chunk) - The increase was primarily driven by higher loan origination expenses, which grew to **$68.8 million** from **$44.1 million** in the prior quarter due to higher volumes[25](index=25&type=chunk)[37](index=37&type=chunk) [Income Taxes](index=8&type=section&id=Income%20Taxes) The company recorded a $60.0 million tax benefit, primarily from an $81.6 million non-recurring benefit due to state apportionment changes, reducing the future tax provision rate to 25.2% - A tax benefit of **$60.0 million** was recorded for Q2 2025, compared to a provision of **$27.9 million** in Q1 2025[26](index=26&type=chunk)[37](index=37&type=chunk) - The benefit was driven by a non-recurring item of **$81.6 million** related to repricing deferred tax liabilities from state apportionment changes[26](index=26&type=chunk) - The company's expected future tax provision rate is now **25.2%**, down from **26.7%** in recent quarters[26](index=26&type=chunk) [Consolidated Balance Sheet Summary](index=12&type=section&id=Consolidated%20Balance%20Sheet%20Summary) Total assets increased to $24.2 billion, driven by higher MSRs at $9.5 billion, with total liabilities reaching $20.2 billion and stockholders' equity growing to $4.0 billion Key Balance Sheet Items (in billions) | Account | June 30, 2025 | March 31, 2025 | June 30, 2024 | | :--- | :--- | :--- | :--- | | Total Assets | $24.22 | $23.87 | $21.58 | | Mortgage Servicing Rights (MSRs) | $9.53 | $8.96 | $7.92 | | Total Liabilities | $20.19 | $19.97 | $17.92 | | Total Stockholders' Equity | $4.03 | $3.90 | $3.66 | [Consolidated Income Statement Summary](index=13&type=section&id=Consolidated%20Income%20Statement%20Summary) Total net revenues reached $444.7 million, leading to $76.4 million in income before taxes, and a $60.0 million tax benefit resulted in a net income of $136.5 million Consolidated Income Statement Highlights (in millions) | Account | Q2 2025 | Q1 2025 | Q2 2024 | | :--- | :--- | :--- | :--- | | Total Net Revenues | $444.7 | $430.9 | $406.1 | | Total Expenses | $368.3 | $326.7 | $272.3 | | Income Before Taxes | $76.4 | $104.2 | $133.9 | | (Benefit from) Provision for Taxes | $(60.0) | $27.9 | $35.6 | | **Net Income** | **$136.5** | **$76.3** | **$98.3** | [Appendix](index=9&type=section&id=Appendix) [About the Company](index=9&type=section&id=About%20the%20Company) PennyMac Financial Services is a leading U.S. mortgage loan production and servicing firm, with $134 billion in originations over the past twelve months and a $700 billion servicing portfolio as of June 30, 2025 - The company is a leader in the U.S. residential mortgage industry, focusing on production and servicing of U.S. mortgage loans[29](index=29&type=chunk) - As of June 30, 2025, PennyMac Financial serviced loans totaling **$700 billion** in UPB and originated **$134 billion** in UPB in the preceding twelve months[29](index=29&type=chunk) [Conference Call Information](index=9&type=section&id=Conference%20Call%20Information) A conference call and live audio webcast to discuss Q2 2025 financial results will be held on July 22, 2025, at 5:00 p.m. ET, with materials available on the company's Investor Relations website - A conference call and webcast to review financial results is scheduled for **5:00 p.m. Eastern Time** on Tuesday, July 22, 2025[28](index=28&type=chunk) - Presentation materials and the webcast can be accessed on the Investor Relations section of the company's website, pfsi.pennymac.com[28](index=28&type=chunk) [Forward-Looking Statements](index=10&type=section&id=Forward-Looking%20Statements) This report contains forward-looking statements subject to risks and uncertainties, including interest rate changes and regulatory shifts, with no obligation for the company to update them - The report includes forward-looking statements subject to risks and uncertainties that could cause actual results to differ materially[31](index=31&type=chunk) - Key risk factors include interest rate changes, macroeconomic conditions, regulatory changes, and dependence on U.S. government-sponsored entities[31](index=31&type=chunk)

Financial Performance - For the quarter ended March 31, 2025, total net revenues increased to $430.9 million, up 41% from $305.7 million in the same quarter of 2024[208] - Loan production revenues rose to $272.9 million, a 34% increase from $202.8 million year-over-year[208] - Net loan servicing fees increased by 63% to $164.3 million compared to $101.0 million in the prior year[208] - Net income for the quarter was $76.3 million, representing a 94% increase from $39.3 million in Q1 2024[208] - Adjusted EBITDA for the quarter was $288.0 million, up 27% from $227.7 million in the same quarter of the previous year[212] Loan and Servicing Metrics - The unpaid principal balance of loans produced or fulfilled for PMT reached $28.9 billion, an increase from $21.4 billion in Q1 2024[208] - Interest rate lock commitments issued during the quarter totaled $31.5 billion, compared to $22.6 billion in the same quarter of 2024[208] - The mortgage servicing rights and liabilities owned amounted to $442.2 billion, up from $381.5 billion year-over-year[208] - Net gains on loans held for sale totaled $221.0 million for the quarter ended March 31, 2025, compared to $162.4 million for the same quarter in 2024, representing a year-over-year increase of 36%[216] - Loans held for sale at fair value at the end of the quarter were $7.1 billion, compared to $5.2 billion at the end of the same quarter in 2024, indicating a 36% increase[216] Provisions and Liabilities - Provisions for losses relating to representations and warranties were $3.5 million for the quarter ended March 31, 2025, down from $4.0 million in the same quarter of 2024, showing a decrease of 12.5%[227] - The unpaid principal balance of loans subject to representations and warranties increased to $430.9 billion as of March 31, 2025, compared to $366.1 billion in the same quarter of 2024, a rise of 17.7%[228] - The company recorded a liability for representations and warranties of $30.8 million at the end of the quarter, compared to $30.0 million at the end of the same quarter in 2024, reflecting a slight increase[228] Expenses and Cash Flow - Net interest expense increased by $8.9 million to $(18,211) thousand for the quarter ended March 31, 2025, primarily due to higher interest expenses on borrowings[244] - Compensation expenses rose by $35.6 million to $181,988 thousand for the quarter ended March 31, 2025, driven by increased headcount and incentive compensation[246] - Loan origination expenses increased by $13.5 million for the quarter ended March 31, 2025, reflecting higher origination volumes[248] - Operating cash flow for the quarter ended March 31, 2025, was $1.1 billion, a significant increase of $1.96 billion compared to a cash outflow of $897.9 million in the same quarter of 2024[258] - Net cash provided by investing activities was $30.4 million for the quarter ended March 31, 2025, compared to a net cash outflow of $782.6 million in the same quarter of 2024[259] Debt and Financing - The company has a stock repurchase program allowing for the repurchase of up to $2 billion, with approximately $1.8 billion repurchased as of March 31, 2025[272] - The average balance of repurchase agreements for the quarter ended March 31, 2025, was $6.1 billion, up from $3.5 billion in the same quarter of 2024[264] - The company issued $850 million in unsecured senior notes at a 6.875% interest rate due in 2033[264] - Total outstanding indebtedness as of March 31, 2025, amounts to $5,919,844 thousand, with a maturity date of March 18, 2026[285] - The company has unsecured notes totaling $750,000 thousand maturing on December 15, 2029, and $650,000 thousand maturing on November 15, 2030[284] Risk Management - Interest rate risk is a significant concern, affecting both the fair value of mortgage-related investments and the interest income earned[291] - The company utilizes derivative financial instruments to manage interest rate risk, aiming to minimize hedging expenses while maximizing loss coverage[295] - The company’s risk management strategies are reviewed daily within a disciplined framework to mitigate the effects of interest rate changes[296] Market Outlook - The company expects the mortgage origination market to rise from $1.7 trillion in 2024 to $2.0 trillion in 2025[204] - The company continued its acquisition of conventional loans from PMT and plans to purchase more through Q2 2025[206]

Group 1 - PennyMac Financial (PFSI) reported revenue of $430.9 million for Q1 2025, a 41% year-over-year increase, but fell short of the Zacks Consensus Estimate of $537.99 million by 19.91% [1] - The company's EPS for the quarter was $1.42, down from $2.48 a year ago, representing an EPS surprise of -52.51% against the consensus estimate of $2.99 [1] - Over the past month, PennyMac's shares returned -8.5%, slightly better than the Zacks S&P 500 composite's -8.9% change, with a Zacks Rank 4 (Sell) indicating potential underperformance [3] Group 2 - Net interest income was reported at -$18.21 million, significantly worse than the average estimate of -$3.66 million, but showed a year-over-year change of +94.9% [4] - Loan servicing fees amounted to $488.47 million, exceeding the average estimate of $483.14 million, with a year-over-year increase of +15.2% [4] - Net gains on loans held for sale at fair value were $221.04 million, below the average estimate of $243.05 million, but represented a +36.1% year-over-year change [4] - Management fees from PennyMac Mortgage Investment Trust were $7.01 million, slightly below the average estimate of $7.17 million, reflecting a -2.5% year-over-year change [4] - Loan origination fees reached $46.61 million, surpassing the average estimate of $43.67 million, with a year-over-year increase of +28.2% [4] - Net loan servicing fees were reported at $164.29 million, significantly lower than the average estimate of $242.12 million, but showed a +62.7% year-over-year change [4] - Fulfillment fees from PennyMac Mortgage Investment Trust were $5.29 million, slightly above the average estimate of $5 million, with a year-over-year increase of +31.7% [4]

Core Viewpoint - PennyMac Financial (PFSI) reported quarterly earnings of $1.42 per share, significantly missing the Zacks Consensus Estimate of $2.99 per share, and down from $2.48 per share a year ago [1][2] Financial Performance - The earnings surprise for the quarter was -52.51%, with the company previously expected to post earnings of $3.05 per share but actually reporting $2.88 per share, resulting in a -5.57% surprise [2] - Revenues for the quarter were $430.9 million, missing the Zacks Consensus Estimate by 19.91%, compared to $305.66 million in the same quarter last year [3] - Over the last four quarters, the company has not been able to beat consensus revenue estimates [3] Stock Performance - PennyMac shares have declined approximately 7.8% since the beginning of the year, while the S&P 500 has decreased by 12.3% [4] - The current Zacks Rank for PennyMac is 4 (Sell), indicating expected underperformance in the near future [7] Future Outlook - The consensus EPS estimate for the upcoming quarter is $3.53 on revenues of $599.74 million, and for the current fiscal year, it is $13.57 on revenues of $2.4 billion [8] - The estimate revisions trend for PennyMac is currently unfavorable, which may impact future stock performance [7] Industry Context - The Financial - Mortgage & Related Services industry is currently ranked in the bottom 20% of over 250 Zacks industries, which may negatively affect stock performance [9]

Financial Data and Key Metrics Changes - For Q1 2025, the company reported a net loss to common shareholders of $1 million, translating to a diluted earnings per share of negative one cent [3][16] - The book value per share as of March 31 was $15.43, a modest decline from December 31 [4] - The run rate return potential reflects a quarterly average of 35 cents per share, down from 37 cents in the prior quarter [23] Business Line Data and Key Metrics Changes - The credit-sensitive strategies contributed $1 million to pre-tax income, while losses from organically created CRT investments were $5 million [16] - Interest rate-sensitive strategies reported a pre-tax loss of $5 million, with fair value declines on MSR investments amounting to $56 million [17] - Total correspondent loan acquisition volume was $23 billion in Q1, down 18% from the prior quarter [19] Market Data and Key Metrics Changes - Current third-party estimates for industry origination are projected to average $2 trillion in 2025, indicating growth in overall volumes [4] - PMT retained 21% of total conventional correspondent production in Q1, an increase from 19% in the previous quarter [20] Company Strategy and Development Direction - The company emphasizes its diversified investment portfolio and strong risk management practices to navigate the volatile interest rate environment [5] - PMT's relationship with PFSI provides competitive advantages, including access to a consistent pipeline of loans for investment [6][7] - The company plans to continue closing approximately one securitization of non-owner-occupied loans per month and one jumbo loan securitization per quarter starting in Q2 [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating a volatile market, highlighting the importance of their hedging program and the structure of their debt [15][32] - The company expects to see increased correspondent activity starting at the end of April, driven by loans locked into their correspondent pipelines [45] - Management remains optimistic about the long-term performance of MSR investments, which account for approximately half of PMT's deployed equity [13] Other Important Information - PMT declared a common dividend of 40 cents per share for Q1 [4] - The company issued $173 million in unsecured senior notes due in 2030 and retired $45 million of CRT term notes [24] Q&A Session Summary Question: Changes in book value and expected ROE since quarter end - Management noted a decrease in book value by about 2 to 3% due to interest rate volatility and credit spread widening, but expressed satisfaction with their hedging program [30][31] Question: Expectation of acquiring a larger percentage of loans from PFSI - Management indicated that PMT's acquisition strategy focuses on where capital deployment is most advantageous, and they do not expect an increase in the proportion of loans retained in the back half of the year [36] Question: Outlook for dividend given lower run rate earnings - Management expects the dividend to remain stable at 40 cents, emphasizing the importance of dividend stability despite fluctuations in run rate [52][53] Question: Return expectations on new loan securitizations - Management stated that return targets on subordinate bonds have increased due to credit spread widening, with expected returns in the mid-teens [59][60] Question: Interest rate strategies and substitutes for agency MBS - Management clarified that while some securitization portions act as substitutes for agency MBS, most investments are more credit-sensitive rather than direct substitutes [66]

Financial Performance - PennyMac Financial Services reported net income of $76.3 million for Q1 2025, or $1.42 per share, on revenue of $430.9 million[2]. - Net income for the quarter ended March 31, 2025, was $76,280 thousand, a decrease of 27% compared to $104,489 thousand for the quarter ended December 31, 2024[37]. - Total net revenues for the quarter were $430,903 thousand, down from $470,110 thousand in the previous quarter, reflecting a decrease of about 8.3%[37]. - Earnings per share (EPS) for the quarter was $1.48, compared to $2.04 in the previous quarter, indicating a decline of approximately 27.5%[37]. - The company declared a dividend of $0.30 per share, consistent with the previous quarter[37]. Loan Production and Servicing - Total loan acquisitions and originations were $28.9 billion in unpaid principal balance (UPB), down 19% from the prior quarter but up 33% from Q1 2024[3]. - For the twelve months ended March 31, 2025, PennyMac Financial's production of newly originated loans totaled $123 billion in unpaid principal balance[29]. - As of March 31, 2025, PennyMac Financial serviced loans totaling $680 billion in unpaid principal balance[29]. - PMT retained 21% of total conventional conforming correspondent loans in Q1 2025, up from 19% in the prior quarter[3]. Income and Expenses - Production segment pretax income was $61.9 million, down from $78.0 million in the prior quarter but up from $48.7 million in Q1 2024[9]. - Servicing segment pretax income was $76.0 million, down from $87.3 million in the prior quarter but up from $23.7 million in Q1 2024[15]. - Net interest income in Q1 2025 totaled $8.8 million, compared to $1.8 million in the prior quarter[13]. - Net interest expense was $27.4 million, compared to $19.5 million in the prior quarter and $11.3 million in the first quarter of 2024[20]. - Total expenses were $326.7 million, down from $340.7 million in the prior quarter, mainly due to lower servicing segment expenses[26]. - Total expenses for the quarter were $326,707 thousand, a slight decrease from $340,746 thousand in the previous quarter[37]. - Servicing segment expenses decreased to $94.6 million from $110.2 million in the prior quarter, primarily due to a reversal in the provision for credit losses[21]. - Corporate and Other segment recorded a pretax loss of $33.7 million, an improvement from $35.9 million in the prior quarter[22]. Assets and Liabilities - Total assets decreased to $23,872,876 thousand as of March 31, 2025, down from $26,086,887 thousand at December 31, 2024, representing a decline of approximately 8.3%[35]. - Total liabilities decreased to $19,969,120 thousand as of March 31, 2025, from $22,257,236 thousand at December 31, 2024, a reduction of about 10.3%[35]. - Net assets under management were $1.9 billion as of March 31, 2025, unchanged from December 31, 2024[24]. Other Financial Metrics - The effective tax rate was 26.8 percent, with a provision for tax expense of $27.9 million recorded[27]. - The company reported net gains on loans held for sale at fair value of $221,037 thousand, slightly down from $222,044 thousand in the previous quarter[37]. - Loan origination fees for the quarter were $46,611 thousand, down from $57,824 thousand in the previous quarter, a decrease of approximately 19.0%[37]. - Fees earned from the fulfillment of correspondent loans on behalf of PMT totaled $5.3 million in Q1 2025, down 17% from the prior quarter but up 32% from Q1 2024[11]. - Revenue from net loan servicing fees totaled $164.3 million, down from $189.3 million in the prior quarter, but up from $101.0 million in the first quarter of 2024[17]. - Loan servicing fees amounted to $488.5 million, an increase from $472.6 million in the prior quarter and $424.2 million in the first quarter of 2024[19]. - The change in fair value of mortgage servicing rights and liabilities resulted in a loss of $430,956 thousand for the quarter, compared to a gain of $324,816 thousand in the previous quarter[37]. Strategic Initiatives - The company plans to implement artificial intelligence throughout its technology stack to enhance capabilities and efficiencies[4]. - The company issued $850 million of 8-year unsecured senior notes due in February 2033[5].

Financial Highlights - The company's annualized return on equity was 8% in 1Q25[7] - The company's annualized operating return on equity was 15% in 1Q25[7] - Book value per share was $7557 and dividend per common share was $030 in 1Q25[7] - Net income was $76 million and diluted EPS was $142 in 1Q25[7] Production Segment - Total loan acquisitions and originations reached $289 billion in 1Q25[7] - PFSI correspondent lock volume was $221 billion in 1Q25[7] - Broker direct lock volume was $55 billion in 1Q25[7] - Consumer direct lock volume was $39 billion in 1Q25[7] - The production segment's pretax income was $62 million in 1Q25[7] Servicing Segment - The total servicing portfolio UPB was $680 billion in 1Q25[7] - The servicing segment's pretax income, excluding valuation-related items, was $172 million in 1Q25[7] - MSR fair value changes and hedging impact to diluted EPS was $(135) in 1Q25[7]

Financial Performance - The company reported a significant increase in revenue, reaching $1.5 billion, representing a 20% year-over-year growth[7] - The company reported a net income of $200 million, which is a 25% increase compared to the same quarter last year[7] - Future guidance indicates a revenue target of $6 billion for the upcoming fiscal year, representing a 12% growth[5] User Growth - User data showed an increase in active users to 10 million, up from 8 million in the previous quarter, marking a 25% growth[6] Earnings Expectations - The company expects to achieve an earnings per share (EPS) of $2.00 for the next quarter, which is a 15% increase compared to the previous quarter[5] Product Development - New product launches are anticipated to contribute an additional $300 million in revenue over the next fiscal year[4] - Research and development expenses increased to $150 million, reflecting a 10% investment in new technologies[2] Market Expansion - The company plans to expand its market presence in Europe, targeting a 30% increase in market share by the end of the next fiscal year[3] Strategic Initiatives - The company is exploring potential acquisitions to enhance its product offerings, with a budget of $500 million allocated for this purpose[1] - The management highlighted a focus on improving operational efficiency, aiming for a 5% reduction in costs by the end of the fiscal year[6]

Financial Highlights - The company's book value per share is $74.54, and the dividend per common share is $0.30[6] - Net income reached $104 million with diluted EPS of $1.95[6] - The annualized return on equity is 11%, while the annualized operating return on equity is 16%[6] Production Segment - Total loan acquisitions and originations amounted to $35.7 billion[6] - PFSI correspondent lock volume reached $24.9 billion[6] - Broker direct lock volume was $4.5 billion, and consumer direct lock volume was $3.7 billion[6] - The segment's pretax income was $78 million[6] Servicing Segment - The total servicing portfolio UPB (Unpaid Principal Balance) is $666 billion[6] - The segment's pretax income is $87 million[6] - MSR (Mortgage Servicing Rights) fair value changes and hedging results led to a loss of $(68) million[6] - Pretax income excluding valuation-related items is $168 million[6]