PennyMac Financial Services: Navigating Volatility in Mortgage Servicing Income

PennyMac Financial Services reported Q4 2025 results with net income of $106.83 million and revenue of $538 million. Despite full-year profit growth and higher loan production volumes, earnings were pressured by weaker-than-expected mortgage servicing income due to faster prepayment speeds. The stock has dropped sharply after missing revenue and EPS expectations, highlighting the sensitivity of the stock to mortgage servicing dynamics.