Rocket Companies, Inc. (RKT) Earnings

metirFinance

Dec 2026upcoming

Next quarter

Expected to report Feb 25, 2027 — estimated from last year’s reporting date.

Consensus is $0.11 EPS for Dec 2026 across 5 estimates, ranging $0.07 to $0.14.

RKT Sep 2026

Reported Oct 29, 2026 · after the close

: 9.09%
: +7.38%

: $0.11
: $0.12
: —
: —

Reported results

: $709.00M; from -$124.00M
: $0.25; from -$0.06

Highlights

Rocket reported Q3 GAAP net income of $709 million and diluted EPS of $0.25, versus a $124 million loss and EPS of -$0.06 a year ago; net income rose from $230 million and EPS of $0.08 in Q2.
Adjusted revenue was $2.57 billion, up 37% year over year, while adjusted net income reached $419 million versus $158 million and adjusted EBITDA was $748 million versus $349 million.
The supplied expectations data shows EPS of $0.12 against consensus of $0.11, a 9.1% beat; the release and 10-Q report GAAP diluted EPS of $0.25 and adjusted diluted EPS of $0.15.
Mortgage production held up despite the 30-year mortgage rate rising more than 80 basis points to 7.28% during the quarter: closed origination volume grew 35% year over year to $43.6 billion.
Channel mix mattered: total net rate locks were $40.4 billion, including $10.0 billion in correspondent locks; excluding correspondent, locks fell to $30.4 billion from $35.8 billion a year ago. Total gain-on-sale margin declined to 2.54% from 2.80%.
The servicing portfolio reached $2.0 trillion of unpaid principal balance and 9.1 million loans. Servicing fee income rose to $1.03 billion from $413 million, reflecting the larger portfolio, including the Mr. Cooper acquisition.
Reported revenue of $3.28 billion includes a $710 million favorable MSR valuation-assumption effect excluded from adjusted revenue; the year-ago quarter had a $178 million adverse effect, making the GAAP revenue comparison less representative of underlying growth.
Q4 adjusted revenue guidance is $2.1 billion to $2.3 billion, below Q3's $2.57 billion; quarter-end total liquidity was $11.4 billion.

Analysis

Rocket’s Q3 was a strong profitability quarter in a worsening mortgage-rate environment, with growth increasingly supported by the acquired servicing base and higher production rather than a broad improvement in the housing market. GAAP net income was $709 million, or $0.25 per diluted share, versus a $124 million loss and -$0.06 a year ago; net income also increased from $230 million in Q2. The supplied consensus comparison records EPS of $0.12 versus $0.11 expected, while Rocket’s release reports GAAP diluted EPS of $0.25 and adjusted EPS of $0.15. Adjusted revenue rose 37% year over year to $2.57 billion, adjusted net income increased to $419 million from $158 million, and adjusted EBITDA more than doubled to $748 million.

The central operating story was share and volume growth despite rates reaching 7.28%, alongside a much larger servicing franchise. Closed mortgage originations rose 35% to $43.6 billion, and management said it gained share in purchase and refinance; however, locks excluding correspondent fell year over year and correspondent’s new $10.0 billion contribution changed channel mix. Servicing fees more than doubled to $1.03 billion, supported by the portfolio’s $2.0 trillion UPB. GAAP revenue growth also benefited from a $710 million favorable MSR valuation-assumption effect, unlike the prior-year $178 million headwind. For Q4, Rocket expects adjusted revenue of $2.1 billion to $2.3 billion.

Earnings and adjustments

GAAP results swung sharply into profit, but the difference between reported and adjusted revenue is important to interpreting the comparison. Rocket reported $3.28 billion of net revenue, up from $1.70 billion, and $709 million of net income versus a $124 million loss. Adjusted revenue was $2.57 billion, compared with $1.87 billion, and adjusted net income was $419 million versus $158 million. The company’s reconciliation removes MSR valuation changes tied to assumptions: Q3 included a favorable $710 million effect, whereas Q3 2025 included a $178 million adverse effect. The non-GAAP measures also add back other items, including acquisition expenses and acquired-intangible amortization.

Quarter over quarter: Net income increased from $230 million in Q2 to $709 million in Q3; diluted EPS rose from $0.08 to $0.25.
Profitability measures: Adjusted EBITDA increased to $748 million from $349 million a year ago; adjusted diluted EPS was $0.15 versus $0.07.
Expectations comparison: The supplied consensus data gives reported EPS of $0.12 against $0.11 expected, while Rocket’s own release and filing state GAAP diluted EPS of $0.25.

Mortgage production and margins

Production grew in a quarter when the market was pressured by higher rates: the 30-year fixed rate rose from 6.43% in early July to 7.28% at September’s end, while existing home sales fell below a 4-million-unit annualized pace. Closed loan volume reached $43.6 billion, up 35% year over year. The channel mix tempers that headline: correspondent contributed $10.1 billion of closed volume and $10.0 billion of locks, while net locks excluding correspondent declined from $35.8 billion to $30.4 billion. Gain-on-sale performance also diverged by channel.

Direct to Consumer: Net rate locks were $22.1 billion versus $24.6 billion; gain-on-sale margin increased to 4.31% from 3.62%.
Rocket Pro: Net locks were $8.2 billion versus $11.2 billion, and margin declined to 0.70% from 0.99%.
Mix and total margin: Total net locks were $40.4 billion, but the lower-margin correspondent channel pulled total gain-on-sale margin to 2.54% from 2.80%; excluding correspondent, margin rose to 3.33% from 2.80%.
Market position: Rocket said it gained purchase and refinance share both sequentially and year over year; its cited Q2 2026 industry rankings placed Rocket Mortgage first in overall volume, purchase, refinance, home equity and servicing.

Servicing franchise

The larger servicing franchise was a major source of recurring revenue and operating leverage. Servicing fee income reached $1.03 billion, up from $413 million, with the increase primarily reflecting the larger average portfolio following the Mr. Cooper acquisition. Rocket reported $2.0 trillion of total serviced UPB across 9.1 million loans, including subserviced loans. At the same time, the quarter’s servicing results remain sensitive to MSR valuation assumptions, hedges and portfolio cash-flow realization; those items contributed to the gap between GAAP and adjusted revenue.

Portfolio scale: MSR-serviced UPB was $1.20 trillion and subserviced or temporarily serviced UPB was $806 billion; 60-day-plus delinquency was 1.52%, versus 1.41% a year earlier.
MSR sales: Rocket sold $23 billion of MSR UPB during Q3 for $379 million of cash proceeds and retained subservicing and recapture services on nearly 70% of the MSRs sold.
Recapture opportunity: The company said Rocket and legacy Mr. Cooper reached their highest recapture levels to date; year to date, about two-thirds of Rocket home-equity clients also had their first mortgage serviced by Rocket.

Integration and platform

Redfin and Mr. Cooper broadened Rocket’s reach across home search, brokerage, mortgage and servicing, but also make year-over-year comparisons reflect a different company: Q3 2025 included Redfin only, while Q3 2026 included both acquisitions. Rocket’s All Other businesses generated $482 million of revenue versus $464 million and $189 million of contribution margin versus $184 million. Management highlighted engagement across its platform, though the filing does not quantify the revenue contribution of those cross-business referrals.

Costs of scale: Total expenses rose 24% to $2.33 billion. General and administrative expense increased to $559 million from $355 million, partly due to acquisition-related and larger-servicing-business costs; interest expense increased to $359 million from $235 million.
Redfin and Rocket Money: Redfin brokerage revenue was $177 million, flat year over year; Rocket Money revenue rose to $122 million from $96 million, with paying subscribers increasing to 5.06 million from 4.50 million.
Digital conversion: Rocket said AI pulled credit on nearly 20% of Direct to Consumer loan volume before a client spoke with a loan officer, versus zero a year earlier. Digital leads converted at four times the rate of non-digital channels, and the AI voice platform handled 65% of inbound servicing calls.

Outlook, liquidity and legal

Rocket expects adjusted revenue of $2.1 billion to $2.3 billion in Q4, a step down from Q3’s $2.57 billion. The company ended September with substantial stated liquidity, although much of it consists of borrowing capacity rather than cash on hand. The filing also increased attention on legal contingencies: recorded reserves were $216 million, compared with $74 million at year-end 2025. The company described outcomes in significant proceedings as uncertain.

Liquidity: Total liquidity was $11.4 billion: $2.7 billion of cash, $2.5 billion of undrawn lines of credit and $6.2 billion of available MSR and advance lines.
Debt and covenants: Secured financing was $14.2 billion and unsecured financing, net, was $10.7 billion at quarter-end; Rocket said it was compliant with its financing covenants and applicable regulatory requirements.
Legal exposure: A Texas jury returned a $175 million verdict for HouseCanary in March; judgment had not been entered, and HouseCanary filed for Chapter 11 in September. Rocket said the outcome remained uncertain and that it intended to defend the matter.

Rocket Companies, Inc.

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