Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at PennyMac Financial Services (NYSE: PFSI) and the best and worst performers in the thrifts & mortgage finance industry.

Thrifts & Mortgage Finance institutions operate by accepting deposits and extending loans primarily for residential mortgages, earning revenue through interest rate spreads (difference between lending rates and borrowing costs) and origination fees. The industry benefits from demographic tailwinds as millennials enter prime homebuying age, technological advancements streamlining the loan approval process, and potential interest rate stabilization improving affordability. However, significant headwinds include net interest margin compression during rate volatility, increased competition from fintech disruptors offering digital-first experiences, mounting regulatory compliance costs, and potential housing market corrections that could impact loan portfolios and default rates.

The 12 thrifts & mortgage finance stocks we track reported a mixed Q1. As a group, revenues beat analysts’ consensus estimates by 4.2% while next quarter’s revenue guidance was 6.6% below.

In light of this news, share prices of the companies have held steady. On average, they are relatively unchanged since the latest earnings results.

PennyMac Financial Services (NYSE: PFSI)

Founded during the 2008 financial crisis to help address the mortgage market meltdown, PennyMac Financial Services (NYSE: PFSI) is a specialty financial services company that originates, services, and manages investments related to residential mortgage loans in the United States.

PennyMac Financial Services reported revenues of $583.1 million, up 10.8% year on year. This print exceeded analysts’ expectations by 5.7%. Despite the top-line beat, it was still a slower quarter for the company with a significant miss of analysts’ net interest income and tangible book value per share estimates.

“In the first quarter, PennyMac Financial generated an 8% annualized return on equity and an 11% annualized adjusted return on equity2,” said Chairman and CEO David Spector.

The market seems disappointed with the results as the stock is down 1.5% since reporting and currently trades at $86.15.

Read our full report on PennyMac Financial Services here, it’s free.

Best Q1: Rocket Companies (NYSE: RKT)

Born in Detroit during the 1980s and evolving into a tech-driven financial powerhouse, Rocket Companies (NYSE: RKT) is a fintech company that provides digital mortgage lending, real estate services, and personal finance solutions through its technology platform.

Rocket Companies reported revenues of $2.82 billion, up 108% year on year, outperforming analysts’ expectations by 2%. The business had an exceptional quarter with a beat of analysts’ EPS estimates.

Rocket Companies pulled off the fastest revenue growth among its peers. The market seems happy with the results as the stock is up 9.9% since reporting. It currently trades at $15.55.

Is now the time to buy Rocket Companies? Access our full analysis of the earnings results here, it’s free.

Weakest Q1: Franklin BSP Realty Trust (NYSE: FBRT)

Operating as a specialized real estate investment trust (REIT) with roots dating back to 2012, Franklin BSP Realty Trust (NYSE: FBRT) originates and manages a diversified portfolio of commercial real estate debt investments secured by properties in the United States and abroad.

Franklin BSP Realty Trust reported revenues of $60.39 million, up 6.1% year on year, falling short of analysts’ expectations by 17.4%. It was a disappointing quarter as it posted a significant miss of analysts’ net interest income and EPS estimates.

Franklin BSP Realty Trust delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 9.3% since the results and currently trades at $8.13.

Read our full analysis of Franklin BSP Realty Trust’s results here.

Columbia Financial (NASDAQ: CLBK)

Founded during the Roaring Twenties in 1926 and headquartered in Fair Lawn, New Jersey, Columbia Financial (NASDAQ: CLBK) operates federally chartered savings banks in New Jersey that offer traditional banking services including loans, deposits, and insurance products.

Columbia Financial reported revenues of $66.18 million, up 18.5% year on year. This print beat analysts’ expectations by 9.1%. However, it was a slower quarter as it recorded EPS and net interest income in line with analysts’ estimates.

The stock is up 14.5% since reporting and currently trades at $21.08.

Read our full, actionable report on Columbia Financial here, it’s free.

Arbor Realty Trust (NYSE: ABR)

With roots dating back to 2003 and a focus on the stability of multifamily housing, Arbor Realty Trust (NYSE: ABR) is a specialized lender that provides financing solutions for multifamily and commercial real estate while also originating and servicing government-backed mortgage loans.

Arbor Realty Trust reported revenues of $117.4 million, down 12.5% year on year. This number surpassed analysts’ expectations by 3.5%. Zooming out, it was a satisfactory quarter as it also produced an impressive beat of analysts’ net interest income estimates but a significant miss of analysts’ EPS estimates.

Arbor Realty Trust had the slowest revenue growth among its peers. The stock is down 34.8% since reporting and currently trades at $5.33.

Read our full, actionable report on Arbor Realty Trust here, it’s free.

Market Update

Late in 2025 into early 2026, there was hand-wringing around artificial intelligence. For software companies, the fear was that AI would erode pricing power and compress margins as new tools made it easier to replicate what once required expensive enterprise platforms. Crypto investors had their own version of the same anxiety: if AI agents could trade, allocate capital, and manage wallets autonomously, what exactly was the long-term value of today’s crypto infrastructure?

These concerns triggered a noticeable rotation away from these sectors and into safer havens. But markets rarely dwell on one narrative for long. Spring 2026 came, and the focus shifted abruptly from technological disruption to geopolitical risk. The US’ conflict with Iran became the dominant driver of market psychology, and when geopolitics takes center stage, the script changes quickly. Investors stop debating growth rates and start worrying about oil supply, inflation, and global stability.

Want to invest in winners with rock-solid fundamentals? Check out our 9 Best Market-Beating Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.