PennyMac Financial Services, Inc. (PFSI): Business Model Canvas [Dec-2025 Updated]

You're trying to figure out how a mortgage company stays profitable when the market is constantly swinging between refinance booms and purchase slowdowns. Here's the quick math: PennyMac Financial Services, Inc. (PFSI) has engineered a truly balanced platform. They aren't just a top-tier originator; they are also a powerhouse servicer, managing a staggering $716.6 billion UPB portfolio as of Q3 2025, which provides that crucial, recurring fee income. This dual focus-high-volume production paired with massive servicing-is their secret sauce for mitigating interest rate volatility. To really see how this works, you need to look at the nuts and bolts of their operation, so check out the full Business Model Canvas breakdown right here.

PennyMac Financial Services, Inc. (PFSI) - Canvas Business Model: Key Partnerships

You're looking at the core relationships that make PennyMac Financial Services, Inc.'s (PFSI) business engine run, especially as the company navigates the late 2025 market. These aren't just vendor agreements; they are deep, capital-structuring alliances.

PennyMac Mortgage Investment Trust (PMT) for Loan Fulfillment and Acquisition

The relationship with PennyMac Mortgage Investment Trust (PMT) is central to PFSI's balanced model, allowing PFSI to manage balance sheet risk. Under a renewed agreement effective July 1, 2025, correspondent production volumes are initially acquired by PFSI before PMT decides on retention.

For the third quarter of 2025, fees PFSI earned from fulfilling correspondent loans on behalf of PMT totaled $6.2 million, an increase of 6% from the prior quarter. As of September 30, 2025, PFSI subservices $227.1 billion in UPB for PMT, which is a significant portion of PFSI's total servicing portfolio of $716.6 billion in UPB at that date.

Here's a look at the flow of activity:

Government-Sponsored Enterprises (GSEs) like Fannie Mae and Freddie Mac for Securitization

PFSI's production is heavily reliant on the secondary market, which is dominated by the GSEs. While PFSI originates and services loans, the ultimate disposition or guarantee framework is tied to Fannie Mae and Freddie Mac guidelines. A key risk remains the dependence on these entities and any changes to their current roles or guarantees.

The technology partnership with Vesta, Inc. also directly involves the GSEs, as Vesta Innovations already has partnerships with both Freddie Mac and Fannie Mae.

• PFSI is a top originator, with total loan production for the twelve months ended June 30, 2025, totaling $134 billion in UPB.
• Third-party forecasts estimate total mortgage originations for 2025 at $2 trillion.
• PFSI expects PMT to acquire all jumbo correspondent production and 15 to 25 percent of total conventional conforming correspondent production in Q4 2025.

Vesta, Inc. for the New Loan Origination Technology Platform Rollout

This is a strategic, tech-forward move. PennyMac Financial Services announced a strategic partnership with Vesta Innovations in September 2025, which included a long-term minority equity investment of about $10 million in Vesta. PFSI is Vesta's first large mortgage client to go live on their cloud-based Loan Origination System (LOS).

The initial results in the consumer-direct channel are concrete:

• Time from borrower call to loan lock reduced by 50 percent.
• Improvements in loan processing time of 20 percent.

PFSI plans to scale this technology across its multi-channel operations, including its correspondent and TPO (Third-Party Originator) groups. Through the first six months of 2025, PFSI funded $52.85 billion in correspondent loans.

Financial Institutions like Annaly for Strategic MSR Sales with Subservicing Retention

This partnership is a prime example of active capital management. In October 2025, Annaly Capital Management agreed to purchase a portfolio of Mortgage Servicing Rights (MSRs) from PFSI, with PFSI retaining the subservicing contract. This accelerates the growth of PFSI's new subservicing business.

Key figures related to this MSR ecosystem as of mid-2025:

The MSRs sold to Annaly reportedly have somewhat low interest rates, aligning with PFSI's stated effort to drive its owned MSR concentration toward higher-rate loans with significant recapture potential.

Correspondent Lenders Who Originate Loans for PFSI to Acquire

PFSI is a dominant force in correspondent lending. For the twelve months ended June 30, 2025, PFSI's production of newly originated loans totaled $134 billion in UPB. Correspondent lending has been the largest channel, accounting for 73 percent of PFSI's $95.5 billion in originations through August 31, 2025.

The Scotsman Guide 2025 Top Correspondent Lenders ranking (based on 2024 volume) placed PFSI at Rank 1 with a total correspondent volume of $94,575,814,689, which was 82% of its total volume that year. For the first half of 2025, PFSI's correspondent platform aggregated $52.85 billion of mortgages, up 30.3% from the first half of 2024. This channel is critical, and the new non-QM products launched in September 2025 are specifically aimed at expanding opportunities for these correspondent clients.

PennyMac Financial Services, Inc. (PFSI) - Canvas Business Model: Key Activities

You're looking at the core engine of PennyMac Financial Services, Inc. (PFSI) right now, focusing on what they actually do to generate revenue and maintain their market position as of late 2025. It's all about scale in production and disciplined management in servicing.

High-Volume Loan Origination and Acquisition Across Multiple Channels

PennyMac Financial Services, Inc. keeps the pipeline full by aggressively acquiring and originating loans across its established channels. For the twelve months ending September 30, 2025, the total production of newly originated loans hit $139 billion in unpaid principal balance (UPB). This activity feeds both their own portfolio and their investment trust. In the third quarter of 2025 alone, total loan acquisitions and originations, including those for PennyMac Mortgage Investment Trust (PMT), totaled $36.5 billion in UPB.

The breakdown shows a strong focus on direct and correspondent channels:

• For PFSI's own account in Q3 2025: $33.2 billion in UPB.
• Fee-based fulfillment activity for PMT in Q3 2025: $3.3 billion in UPB.
• Total loan locks across all channels for Q3 2025: $43.2 billion in UPB.

They are definitely running a high-volume operation. This scale is what allows them to compete effectively in a tight market.

Servicing a Massive Portfolio

The servicing segment is the bedrock, providing stable fee income. As of September 30, 2025, the total servicing portfolio grew to $716.6 billion in UPB. This represents an 11 percent increase from September 30, 2024. The portfolio is split between owned assets and subservicing responsibilities.

Here's how that massive portfolio breaks down:

Furthermore, a significant portion of this portfolio has high note rates, positioning it well for future refinance opportunities when rates eventually decline. As of September 30, 41 percent of the servicing portfolio, or $291 billion in UPB, has a note rate above 5%.

Dynamic Hedging of Mortgage Servicing Rights (MSRs)

Managing interest rate risk on the MSR asset is a critical, continuous activity. PennyMac Financial Services, Inc. employs a dynamic hedging program. In the third quarter of 2025, valuation-related items showed $102.5 million in MSR fair value losses, which were substantially offset by $98.3 million in hedging gains. The net impact on pretax income from these items was a small loss of $(4.2) million. Management targets an 80-90% hedge ratio to manage this exposure. Also, as part of portfolio optimization, they executed a strategic transaction involving the sale of low interest rate MSRs with an underlying UPB of $12 billion.

Continuous Investment in AI and Process Automation for Operational Efficiency

PennyMac Financial Services, Inc. views technology as a core activity for maintaining a cost advantage. They have deployed over 35 AI tools across their operations. These initiatives are projected to deliver $25 million in annual benefits by 2025. This tech-forward focus has already driven down costs; servicing expenses fell from 7.8 basis points in 2020 to just 4.9 basis points in 2025.

Key automation metrics include:

• Automated document workflows in servicing reduce processing times by 50 percent.
• AI-powered chatbots handle 80 percent of routine loan officer queries.

This focus on efficiency helps offset margin pressure in the production business.

Investment Management Services for PennyMac Mortgage Investment Trust (PMT)

PFSI acts as the external manager for PMT, a key part of its dual-entity structure. This involves fulfilling loan production for PMT's investment needs. In Q3 2025, correspondent acquisitions fulfilled for PMT amounted to $3.3 billion in UPB. PMT also had $4.4 billion in UPB in correspondent lock volume for its account.

The relationship is defined by specific purchase agreements:

• PMT purchased 17 percent of total conventional conforming correspondent loan volume from PFSI in Q3 2025.
• PMT purchased 100 percent of total jumbo correspondent loan volume from PFSI in Q3 2025.

This activity ensures PMT has a steady supply of assets to manage and securitize, which in turn supports the overall ecosystem of PennyMac Financial Services, Inc.

PennyMac Financial Services, Inc. (PFSI) - Canvas Business Model: Key Resources

You're looking at the core assets PennyMac Financial Services, Inc. (PFSI) relies on to execute its strategy. These aren't just line items; they are the engines of the business, especially as of late 2025.

The servicing portfolio is a massive, stable asset base. As of September 30, 2025, the total servicing portfolio stood at $716.6 billion in UPB (Unpaid Principal Balance). This is a critical long-term revenue generator. Within that, the owned MSR (Mortgage Servicing Rights) portfolio specifically grew to $477.6 billion in UPB as of that same date.

PennyMac Financial Services, Inc. (PFSI) runs on a proprietary, scalable technology platform. Management has highlighted progress with AI and data optimization, including the rollout of the Vesta LOS (Loan Origination System), which is driving tangible efficiency gains.

The firm maintains a significant position in liquid assets. While the prompt suggested a specific number, the latest reported figure for custodial funds managed for PFSI's own portfolio averaged $8.5 billion in the third quarter of 2025. This supports operational flexibility. Overall, total assets on the balance sheet as of September 2025 were $25.40 Billion USD.

Mortgage Servicing Rights (MSRs) are central to the balance sheet valuation and hedging strategy. The owned MSR portfolio UPB reached $477.6 billion at the end of Q3 2025. The success of the hedging program is key here, as seen when MSR fair value losses of $102.5 million were largely offset by $98.3 million in hedging gains in Q3 2025.

The human capital is specialized and substantial. PennyMac Financial Services, Inc. (PFSI) employs approximately 4,700 people across its platform as of late 2025. This workforce supports the operational scale required for the servicing portfolio.

Here's a quick look at some of the key financial metrics underpinning these resources from the third quarter of 2025:

The servicing portfolio's structure also matters for future opportunity. As of September 30, 41% of the loans in the servicing portfolio (representing $291 billion in UPB) had a note rate above 5%. That's a significant pool positioned for potential refinancing when rates decline.

You should review the latest internal documentation on the Vesta LOS deployment timeline to gauge when the technology investment will fully translate into lower fulfillment costs. Finance: draft 13-week cash view by Friday.

PennyMac Financial Services, Inc. (PFSI) - Canvas Business Model: Value Propositions

Balanced business model that mitigates interest rate volatility.

PennyMac Financial Services, Inc. demonstrated its ability to balance segment performance through the third quarter of 2025. Pretax income for the entire company reached $236.4 million in the third quarter of 2025, a significant increase from $76.4 million in the prior quarter. The Servicing segment contributed pretax income of $157.4 million in Q3 2025, up from $54.2 million in Q2 2025. To manage the impact of interest rate movements on Mortgage Servicing Rights (MSRs), the net impact on Q3 2025 pretax income from MSR fair value losses of $(102.5 million) offset by hedging gains of $98.3 million was a total of $(4.2) million.

Top-tier scale: 2nd largest originator and a top servicer in the U.S.

The scale of PennyMac Financial Services, Inc. is evident in its servicing portfolio size and origination rankings as of late 2025. As of September 30, 2025, the company is the 2nd largest originator in the U.S., according to Inside Mortgage Finance. For the twelve months ended June 30, 2025, total loan production was $134 billion in unpaid principal balance (UPB). The servicing portfolio reached $716.6 billion in UPB at September 30, 2025.

Low-cost, highly efficient loan servicing via technology and scale.

The efficiency of the servicing operation is reflected in the revenue generated relative to segment expenses. In the third quarter of 2025, Servicing segment net revenues totaled $259.5 million. Revenue from net loan servicing fees was $241.2 million for the same period. Servicing segment expenses were held to $102.1 million in Q3 2025.

Diverse product offerings, including conventional, government, and non-QM loans.

PennyMac Financial Services, Inc. supports a broad range of loan types through its production channels. The company handles conventional conforming and jumbo loans through its correspondent fulfillment for PennyMac Mortgage Investment Trust (PMT). Correspondent lock volume for PMT's account was $4.4 billion in UPB in Q3 2025. The company also has a history with government correspondent volume, which totaled $11.1 billion in IRLCs in Q4 2024.

Trusted fulfillment partner for correspondent lenders and PMT.

The relationship with PennyMac Mortgage Investment Trust (PMT) is a core part of the value proposition. In the third quarter of 2025, correspondent acquisitions fulfilled for PMT amounted to $3.3 billion in UPB. For that quarter, PMT purchased 17 percent of total conventional conforming correspondent loan volume and 100 percent of total jumbo correspondent loan volume from PennyMac Financial Services, Inc.. PMT's Correspondent Production segment generated pretax income of $9.2 million in Q3 2025.

PennyMac Financial Services, Inc. (PFSI) - Canvas Business Model: Customer Relationships

You're looking at how PennyMac Financial Services, Inc. (PFSI) manages its relationships across its massive mortgage servicing and production footprint as of late 2025. It's a mix of high-tech automation for the masses and dedicated support for key partners.

Automated and tech-driven servicing interactions for efficiency.

The core of PennyMac Financial Services, Inc.'s servicing customer relationship is built on technology to keep costs down. As of September 30, 2025, the total servicing portfolio stood at $716.6 billion in unpaid principal balance (UPB), covering a huge number of households. The company is actively investing in its proprietary technology, evidenced by the adoption of a new loan origination technology platform, which is key to enhancing efficiency through automation. This focus helps drive down operating expenses per loan, a metric management noted was improving in early 2025. The servicing segment itself generated $239.0 billion in UPB for subservicing as of the third quarter of 2025.

Dedicated relationship management for correspondent partners.

For its correspondent lending channel, PennyMac Financial Services, Inc. maintains deep partnerships with its sellers. As of the third quarter of 2025, the company worked with nearly 800 active correspondent sellers across the country. This relationship focus has translated into significant volume; over the twelve months ending September 30, 2025, PennyMac Financial Services, Inc. generated more than $100 billion in UPB of correspondent production. This effort secured an estimated market share of approximately 20% in the correspondent lending space for the first nine months of 2025.

Direct-to-consumer digital and personal sales support (Consumer Direct).

The Consumer Direct channel relies on the existing servicing base for future refinance opportunities. PennyMac Financial Services, Inc. highlighted strong recapture in this division during the third quarter of 2025. The opportunity is clear: as of March 31, 2025, $240 billion in UPB, which is 35% of the entire portfolio, was at a note rate above 5%. The company expects to improve refinance recapture rates by leveraging this large pool of higher-rate loans through technology enhancements and targeted marketing strategies.

Synergistic, long-term management agreement with PMT.

The relationship with PennyMac Mortgage Investment Trust (PMT) is governed by a renewed mortgage banking services agreement, effective July 1, 2025, which dictates how correspondent production flows between the two entities. Under this structure, PennyMac Financial Services, Inc. initially acquires all correspondent production volumes. The split of this production is clearly defined:

• PMT retains the right to purchase up to 100 percent of non-government correspondent loan production.
• In the third quarter of 2025, PMT purchased 100 percent of total jumbo correspondent loan volume.
• For conventional conforming loans in Q3 2025, PMT retained 17 percent, unchanged from the prior quarter.
• For the fourth quarter of 2025, management expects PMT to acquire all jumbo production and 15 to 25 percent of total conventional conforming correspondent production.

Recapture strategy to retain existing servicing customers for new loans.

PennyMac Financial Services, Inc. actively manages its portfolio to retain servicing and recapture refinancing opportunities. A concrete example of this strategy in action occurred in the third quarter of 2025, when the company completed the sale of an MSR portfolio totaling $12 billion in UPB to Annaly Capital Management, Inc. (NLY). Crucially, this transaction included an agreement for PennyMac Financial Services, Inc. to perform all subservicing and recapture activities for that specific portfolio. This shows a commitment to maintaining the customer relationship touchpoint even when the underlying asset is sold.

Here's a snapshot of the servicing portfolio growth fueling these relationships:

Finance: draft the Q4 2025 servicing fee forecast by January 15, 2026.

PennyMac Financial Services, Inc. (PFSI) - Canvas Business Model: Channels

You're looking at how PennyMac Financial Services, Inc. gets its loans and manages its massive servicing book as of late 2025. The strategy here is clearly multi-channel, which helps them smooth out volume swings.

Correspondent Production

This channel involves acquiring loans from third-party originators. Under the renewed agreement with PennyMac Mortgage Investment Trust (PMT), effective July 1, 2025, PennyMac Financial Services, Inc. (PFSI) initially acquires all correspondent production volumes. You see the split in what PMT retains.

For the third quarter of 2025, total correspondent acquisitions were $28 billion in unpaid principal balance (UPB), which was down 7 percent from the second quarter of 2025. The fulfillment activity for PMT within this channel was $3.3 billion in UPB, an increase of 8 percent from the prior quarter.

Here's the quick math on what PMT retained from PFSI's correspondent acquisitions in Q3 2025:

Correspondent channel margins in the third quarter were 30 basis points, up from 25 basis points in the second quarter.

Consumer Direct

This is the direct-to-borrower origination path, leveraging online and phone interactions. This channel showed strong momentum late in 2025, especially as rates declined toward the end of the third quarter.

In Q3 2025, Consumer Direct origination volumes were up 12 percent from the prior quarter, and lock volumes saw a significant jump, increasing 57 percent from the second quarter of 2025. The revenue contribution from this channel increased by $29 million compared to the prior quarter, largely due to increased refinance volume. Margins were down a bit, though, because of a higher mix of smaller balance second lien loans versus larger balance first lien refinance loans.

Broker Direct

The wholesale channel uses mortgage brokers to bring in volume. PennyMac Financial Services, Inc. positions itself as a strong alternative here. Total lock volumes for the entire production segment were $43.2 billion in UPB for Q3 2025, unchanged from the prior quarter, but with a greater mix of volume coming from the direct lending channels overall.

The Broker Direct channel specifically saw its revenue contribution increase by $10 million over the prior quarter, driven by increased volumes and better margins.

Servicing Platform

The servicing platform is where PennyMac Financial Services, Inc. interacts directly with borrowers for payments and support, and it's a huge part of the overall business. As of September 30, 2025, the total servicing portfolio reached $716.6 billion in UPB, representing an 11 percent increase from September 30, 2024.

This portfolio services loans for 2.7 million households. The servicing segment pretax income for Q3 2025 was $157.4 million.

The portfolio is split between what PennyMac Financial Services, Inc. owns and what it subservices:

• Owned Mortgage Servicing Rights (MSR) portfolio: $477.6 billion in UPB as of September 30, 2025.
• Subserviced loans for PMT and others: $239.0 billion in UPB.

The company's servicing market share is calculated based on its $717 billion UPB divided by an estimated $14.6 trillion in total mortgage debt outstanding.

For the twelve months ending September 30, 2025, PennyMac Financial Services, Inc.'s production of newly originated loans totaled $139 billion in UPB.

PennyMac Financial Services, Inc. (PFSI) - Canvas Business Model: Customer Segments

PennyMac Financial Services, Inc. serves distinct customer groups across its production and servicing operations. You can see the scale of their business by looking at the third quarter of 2025 results, which show a total servicing portfolio reaching $716.6 billion in unpaid principal balance (UPB) as of September 30, 2025.

The primary customer segments are:

• Correspondent Lenders (banks, credit unions, IMBs) selling loans.
• U.S. Residential Mortgage Borrowers (homeowners and refinancers).
• Mortgage Brokers utilizing the wholesale channel.
• PennyMac Mortgage Investment Trust (PMT) as a managed client.

Correspondent Lenders (banks, credit unions, IMBs) selling loans

Correspondent lenders are key suppliers of newly originated loans, which PennyMac Financial Services, Inc. acquires either for its own portfolio or for PennyMac Mortgage Investment Trust (PMT). This channel is critical for scaling production. For instance, in the second quarter of 2025, correspondent acquisitions fulfilled for PMT totaled $3.1 billion in UPB, which was up 38 percent from the second quarter of 2024. The relationship is governed by agreements where PMT retains the right to purchase a portion of the production.

Here's a look at the correspondent flow data for the first three quarters of 2025:

U.S. Residential Mortgage Borrowers (homeowners and refinancers)

Borrowers are reached primarily through PennyMac Financial Services, Inc.'s direct lending channels: Consumer Direct and Broker Direct. These channels serve homeowners looking to purchase or refinance. The company's ability to recapture refinancing business is a key differentiator; management noted their recapture rate is twice the industry average as of Q2 2025. The total loan production for the twelve months ending September 30, 2025, reached $139 billion in UPB, demonstrating the scale of loans originated for these end borrowers.

The overall production segment is focused on serving this market, with total loan acquisitions and originations in Q3 2025 hitting $36.5 billion in UPB.

Mortgage Brokers utilizing the wholesale channel

Mortgage brokers represent a vital, growing segment. PennyMac Financial Services, Inc. has an aggressive goal to double its broker market share from 5 percent by the end of 2026. In the second quarter of 2025, the company locked $7.2 billion in origination volume through the broker-direct channel alone, which accounted for 22 percent of production revenue that quarter. Based on 2024 volume, PennyMac was ranked number one in the Scotsman Guide's Top Wholesale Lenders list with a 2024 wholesale volume of $12,889,548,803.

The focus here is on building trusted partnerships to capture more flow business.

PennyMac Mortgage Investment Trust (PMT) as a managed client

PMT is a captive client that purchases loans originated or fulfilled by PennyMac Financial Services, Inc. This relationship provides a stable source of fee income for the Production segment. In Q3 2025, fee-based fulfillment activity for PMT totaled $3.3 billion in UPB, which was 2 percent of the total production volume that quarter. The servicing relationship is also key, with PennyMac Financial subserving $239.0 billion in UPB for PMT as of September 30, 2025. For Q4 2025, PennyMac Financial expects PMT to acquire 100 percent of jumbo correspondent production and between 15 to 25 percent of total conventional conforming correspondent production.

The servicing segment also manages the owned Mortgage Servicing Rights (MSRs) portfolio, which stood at $477.6 billion in UPB at September 30, 2025.

PennyMac Financial Services, Inc. (PFSI) - Canvas Business Model: Cost Structure

You're looking at the hard numbers that drive PennyMac Financial Services, Inc.'s (PFSI) operational engine as of late 2025. The cost structure is heavily weighted toward financing the loan book and compensating the people who originate and service those assets. Here's the quick math on the major cost drivers based on the third quarter of 2025 results.

The costs associated with getting loans originated-which includes compensation paid to brokers-are bundled into the overall Production segment expenses. For the third quarter of 2025, the total expenses for the Production segment reached $238.9 million. This figure reflects the costs associated with higher capacity and increased volumes in the direct lending channels compared to the prior quarter. To be fair, isolating just the broker compensation from this total is difficult without the full breakdown, but this segment expense is the most direct representation of origination-related costs.

Financing the assets on the balance sheet is a massive cost center. Interest expense, which covers the cost of funds from warehouse lines and other financing arrangements for loans held for sale, totaled $249,900 thousand (or $249.9 million) in Q3 2025. This was an increase from the prior quarter, driven primarily by higher average balances of financing.

Personnel is the next major component. For the approximately 4,700 employees PennyMac Financial Services, Inc. had across the country, the associated compensation expense for Q3 2025 was $205,314 thousand (or $205.3 million). This is a significant, fixed-cost element of the business that scales with operational needs.

Technology and corporate overhead, which includes the ongoing investments in AI and the Vesta origination platform rollout, fall under the Corporate and Other category. The pretax loss for this area widened, with expenses hitting $55.5 million in the third quarter of 2025, up from $47.2 million in the second quarter, largely due to those technology initiatives and higher performance-based incentive compensation.

The Servicing segment has its own distinct operating costs. For Q3 2025, the servicing segment expenses totaled $102.1 million, which was a slight increase from the $99.2 million reported in the prior quarter.

Here's a breakdown of the key expense categories we just discussed for the third quarter of 2025:

You should also keep in mind the non-cash, but highly relevant, valuation adjustments that impact the overall cost/expense profile:

• Mortgage Servicing Rights (MSR) fair value losses were $102.5 million in Q3 2025.
• These losses were largely offset by MSR hedging results of $98.3 million.
• Hedge costs themselves were only $4 million for the quarter, down significantly from $54 million in Q2 2025.

Finance: draft 13-week cash view by Friday.

PennyMac Financial Services, Inc. (PFSI) - Canvas Business Model: Revenue Streams

You're looking at the core ways PennyMac Financial Services, Inc. brings in money as of late 2025. It's a mix of creating loans and managing them over time, which helps smooth out the volatility you see in the market.

The top-line number for the third quarter of 2025 was $632.9 million in total net revenues. This is the starting point for understanding the revenue engine.

The revenue streams break down across the main operating segments:

• Net loan servicing fees from the $716.6 billion UPB portfolio were reported at $241.2 million for the quarter ended September 30, 2025.
• Management fees earned from PennyMac Mortgage Investment Trust (PMT) totaled $6.9 million in Q3 2025, reported within the Corporate and Other net revenues.

To get to the total net revenues, we combine the segment results. Based on the reported total net revenues and the other segment revenues, the Production segment revenue, which includes net gains on loans held for sale, was approximately $361.8 million for Q3 2025 (calculated as Total Net Revenues of $632.9 million minus Servicing Net Revenues of $259.5 million and Corporate and Other Net Revenues of $11.6 million). This segment is where the direct loan origination and sale gains live.

Here's a quick look at the components we have for Q3 2025:

The servicing side also has components related to financing activities. For the Servicing segment, there was a net interest expense of $15.1 million, driven by higher average balances of financing. Separately, the Corporate and Other segment reported $0.3 million of net interest income. So, net interest income from financing activities isn't a single clean line item, but the net interest expense in the servicing segment is a key financial activity impact.

Also, within the Servicing segment revenue breakdown, there were $34.4 million in net gains on loans held for sale specifically related to early buyout loans (EBOs) in Q3 2025.

Finance: draft 13-week cash view by Friday.