Operating margins have oscillated between 8.3% and 59.4% since 2023, indicating that the company struggles to maintain consistent profitability amidst shifting mortgage production cycles.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 |
|---|
| Sales/Revenue | 3.54B | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Revenue Growth % | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Cost of Goods Sold | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| COGS % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Gross Profit | 2.5B | 3.99B | 1.56B | 847.47M | 1.31B | 2.13B | 2.77B | 891.71M | 571.54M | 568.16M | 588.12M | 457.88M | 313.21M | 270.91M | 197.19M | 42.13M |
| Gross Margin % | 70.49% | 91.42% | 97.62% | 41.56% | 56.3% | 59.94% | 70.01% | 53.09% | 50.25% | 52.58% | 58% | 58.85% | 59.45% | 66.79% | 72.24% | 54.95% |
| Gross Profit Growth % | - | 156.42% | 83.58% | -35.16% | -38.73% | -22.91% | 210.33% | 56.02% | 0.6% | -3.39% | 28.44% | 46.19% | 15.62% | 37.38% | 368.09% | - |
| Operating Expenses | 1.49B | 2.48B | 654.71M | 493.43M | 618.27M | 773.92M | 526.45M | 362.27M | 303.85M | 232.25M | 205.03M | 178.69M | 90.17M | 88.78M | 78.87M | 27.43M |
| OpEx % of Revenue | - | 56.77% | 41.08% | 24.2% | 26.63% | 21.75% | 13.32% | 21.57% | 26.71% | 21.49% | 20.22% | 22.97% | 17.11% | 21.89% | 28.89% | 35.78% |
| Selling, General & Admin | 632.47M | 829.06M | 654.71M | 238.08M | 338.17M | 461.24M | 322.51M | 215.91M | 150.59M | 127.08M | 135.23M | 107.93M | 63.38M | 41.96M | 59.26M | 19.88M |
| SG&A % of Revenue | - | 19% | 41.08% | 11.68% | 14.57% | 12.96% | 8.16% | 12.85% | 13.24% | 11.76% | 13.34% | 13.87% | 12.03% | 10.34% | 21.71% | 25.93% |
| Research & Development | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Operating Income | 1B | 1.51B | 901.03M | 354.04M | 688.69M | 1.36B | 2.24B | 529.44M | 267.7M | 335.91M | 383.08M | 279.19M | 223.03M | 182.13M | 118.32M | 14.7M |
| Operating Margin % | 28.34% | 34.65% | 56.54% | 17.36% | 29.67% | 38.2% | 56.69% | 31.52% | 23.54% | 31.09% | 37.78% | 35.88% | 42.33% | 44.9% | 43.35% | 19.17% |
| Operating Income Growth % | - | 67.8% | 154.5% | -48.59% | -49.34% | -39.34% | 323.24% | 97.78% | -20.31% | -12.31% | 37.21% | 25.18% | 22.46% | 53.92% | 704.97% | - |
| EBITDA | 1.04B | 1.51B | 970.69M | 424.06M | 738.93M | 1.4B | 2.28B | 554.62M | 280.62M | 617.54M | 689.21M | 434.75M | 265.9M | 212.4M | 131.09M | 24.39M |
| EBITDA Margin % | 29.32% | 34.65% | 60.91% | 20.8% | 31.83% | 39.4% | 57.65% | 33.02% | 24.67% | 57.15% | 67.97% | 55.88% | 50.47% | 52.37% | 48.03% | 31.81% |
| EBITDA Growth % | 29.05% | 55.76% | 128.91% | -42.61% | -47.3% | -38.46% | 310.85% | 97.64% | -54.56% | -10.4% | 58.53% | 63.5% | 25.19% | 62.02% | 437.54% | - |
| D&A (Non-Cash Add-back) | 34.84M | 0 | 69.66M | 70.02M | 50.24M | 42.94M | 37.86M | 25.18M | 12.93M | 281.63M | 306.12M | 155.55M | 42.87M | 30.27M | 12.77M | 9.69M |
| EBIT | 1B | 1.51B | 403.51M | 354.04M | 688.69M | 1.36B | 2.24B | 529.44M | 267.7M | 335.91M | 383.08M | 279.19M | 223.03M | 182.13M | 118.32M | 14.7M |
| Net Interest Income | 18.96M | -36.11M | -25.78M | 0 | 0 | 0 | 0 | 0 | -144.6M | -1.34M | -106.21M | -19.38M | -9.49M | -1.04M | -7.88M | -343K |
| Interest Income | 720.81M | 924.45M | 793.57M | 0 | 0 | 0 | 0 | 0 | 0 | 143.18M | 0 | 49.16M | 27.77M | 15.63M | 0 | 1.53M |
| Interest Expense | 743.39M | 960.55M | 819.35M | 0 | 0 | 0 | 0 | 0 | 144.6M | 144.52M | 106.21M | 68.54M | 37.26M | 16.67M | 7.88M | 1.88M |
| Other Income/Expense | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Pretax Income | 551.91M | 551.42M | 401.03M | 183.63M | 665.25M | 1.36B | 2.24B | 529.44M | 267.7M | 335.91M | 383.08M | 279.19M | 223.03M | 182.13M | 118.32M | 14.7M |
| Pretax Margin % | 15.58% | 12.64% | 25.16% | 9.01% | 28.66% | 38.19% | 56.69% | 31.52% | 23.54% | 31.09% | 37.78% | 35.88% | 42.33% | 44.9% | 43.35% | 19.17% |
| Income Tax | 44.79M | 50.34M | 89.6M | 38.98M | 189.74M | 355.69M | 593.73M | 136.48M | 23.25M | 24.39M | 46.1M | 31.64M | 26.72M | 9.96M | 0 | 0 |
| Effective Tax Rate % | 8.12% | 9.13% | 22.34% | 21.22% | 28.52% | 26.17% | 26.5% | 25.78% | 8.69% | 7.26% | 12.03% | 11.33% | 11.98% | 5.47% | 0% | 0% |
| Net Income | 507.12M | 501.08M | 311.42M | 144.66M | 475.51M | 1B | 1.65B | 392.96M | 87.69M | 100.76M | 66.08M | 47.23M | 36.84M | 14.4M | 118.32M | 14.7M |
| Net Margin % | 14.31% | 11.48% | 19.54% | 7.09% | 20.48% | 28.2% | 41.67% | 23.39% | 7.71% | 9.32% | 6.52% | 6.07% | 6.99% | 3.55% | 43.35% | 19.17% |
| Net Income Growth % | 45.56% | 60.9% | 115.29% | -69.58% | -52.61% | -39.07% | 319.09% | 348.11% | -12.96% | 52.48% | 39.91% | 28.19% | 155.85% | -87.83% | 704.97% | - |
| Net Income (Continuing) | 507.12M | 501.08M | 311.42M | 144.66M | 475.51M | 1B | 1.65B | 392.96M | 244.44M | 311.52M | 336.98M | 247.56M | 196.31M | 172.16M | 118.32M | 14.7M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 14.21M | 1.25B | 1.05B | 791.52M | 593.3M | 461.8M | 0 | 0 |
| EPS (Diluted) | 9.42 | 9.30 | 5.84 | 2.74 | 8.50 | 14.87 | 20.92 | 4.89 | 2.48 | 1.28 | 2.94 | 2.17 | 1.73 | 0.82 | 10.65 | 1.32 |
| EPS Growth % | 44.33% | 59.25% | 113.14% | -67.76% | -42.84% | -28.92% | 327.81% | 97.18% | 93.75% | -56.46% | 35.48% | 25.43% | 110.98% | -92.3% | 706.82% | - |
| EPS (Basic) | - | 9.69 | 6.11 | 2.89 | 8.96 | 15.73 | 21.91 | 5.02 | 2.59 | 4.34 | 2.98 | 2.17 | 1.73 | 0.83 | 10.65 | 1.32 |
| Diluted Shares Outstanding | 53.86M | 53.88M | 53.36M | 52.73M | 55.95M | 67.47M | 78.73M | 80.34M | 35.32M | 78.94M | 76.63M | 76.1M | 75.95M | 75.89M | 11.11M | 11.11M |
| Basic Shares Outstanding | 52.13M | 51.73M | 50.99M | 49.98M | 53.06M | 63.8M | 75.16M | 78.21M | 33.83M | 23.2M | 22.16M | 21.75M | 21.25M | 17.31M | 11.11M | 11.11M |
| Dividend Payout Ratio | - | 12.48% | 16.75% | 28.65% | 11.49% | 5.27% | 1.88% | - | 11.46% | - | - | - | - | - | 13.39% | - |
Interest rate volatility exposure
As reported in recent financial statements, PFSI's gross margins have fluctuated significantly between 39.0% and 97.9% over the last ten quarters, a variance that appears primarily driven by non-cash fair value adjustments to mortgage servicing rights rather than shifts in core operational pricing power.
The extreme swings in gross margin suggest that investors should look past headline figures to evaluate the underlying profitability of the correspondent lending channel. This volatility warrants further investigation into how much of the margin expansion is sustainable versus how much is merely a byproduct of interest rate-driven accounting marks.
Based on the company's reported income statements, operating margins have oscillated between 8.3% and 59.4% since 2023, indicating that PFSI struggles to maintain consistent operating leverage as it navigates the cyclical nature of mortgage production and the fixed-cost requirements of its servicing portfolio.
The lack of a stable operating margin trend suggests that the company's cost structure is not yet optimized for consistent scaling across different interest rate environments. Analysts should monitor whether the recent compression in operating margins reflects a strategic investment in infrastructure or an inability to control overhead during periods of lower production volume.
According to the provided quarterly data, PFSI's net income has experienced erratic shifts, including a net loss in 2023Q4 followed by a recovery to $181.5M in 2025Q3, highlighting the significant impact of non-operating fair value adjustments on the company's bottom-line performance.
The reliance on MSR fair value accounting makes the reported EPS a potentially unreliable indicator of true cash-generating capability. Investors should be cautious of the quality of these earnings, as they may not reflect the actual liquidity available to the firm for capital allocation or debt service.
While PFSI maintains a dominant position in the correspondent channel, the company's historical data shows that revenue growth remains highly sensitive to external rate environments, with recent quarterly revenue figures ranging from $411.8M to $1.2B, suggesting that the business model lacks true organic growth durability.
Short-sellers may focus on the potential for margin compression if competition for loan supply intensifies or if GSE guarantee fees increase. The reliance on the PMT relationship also introduces a layer of complexity that may mask underlying operational weaknesses during periods of market stress.
Quick answers to the most common questions about buying PFSI stock.
PennyMac Financial Services, Inc. (PFSI) is profitable, generating $501.1M in net income for the fiscal year ending 2025 with a net profit margin of 11.5%.
PennyMac Financial Services, Inc. (PFSI) reported an operating income of $1.51B, resulting in an operating profit margin of 34.6%. This margin reflects the operational efficiency of the business before interest and taxes.
PennyMac Financial Services, Inc. (PFSI) generated $3.99B in gross profit for the year, representing a gross profit margin of 91.4%. This demonstrates the company's core pricing power and production efficiency.