Rocket Companies, Inc.
RKT · NYSE
Next quarter
Reports Oct 29, 2026.
Consensus is $0.12 EPS for Sep 2026 across 5 estimates, ranging $0.12 to $0.13.
RKT Jun 2026
- 0.00%
- +3.78%
- $0.13
- $0.13
- —
- —
Reported results
- $230.00M
- $0.08
Highlights
- Earnings: Q2 2026 GAAP net income was $229 million versus $34 million a year ago and $297 million in Q1; adjusted net income was $441 million versus $75 million a year ago and $422 million in Q1.
- Revenue and EBITDA: Total revenue, net rose 92% year over year to $2.78 billion, while adjusted EBITDA increased to $766 million from $172 million; adjusted revenue was $2.76 billion.
- Expectations: The supplied consensus and reported EPS were both $0.13, a 0% surprise; the earnings release and filing separately report GAAP diluted EPS of $0.08, versus $0.01 a year ago and $0.10 in Q1.
- Mortgage production: Total closed mortgage origination volume increased 69% year over year to $49.1 billion, including $28.1 billion from Direct to Consumer, $11.1 billion from Rocket Pro and $10.0 billion from Correspondent.
- Mortgage profitability: Mortgage contribution margin reached $1.17 billion versus $450 million a year ago, as adjusted revenue grew 80% to $2.25 billion while directly attributable expenses rose 35% to $1.08 billion.
- Market share and margins: Purchase market share reached 6.2% and refinance share 14.3%; excluding Correspondent, gain-on-sale margin improved to 3.11%, although total margin was 2.48% because Correspondent carried a 0.19% margin.
- Servicing scale: The servicing portfolio reached $2.0 trillion of unpaid principal balance across 9.1 million loans; Q2 MSR sales totaled $53 billion of UPB and generated $795 million of cash proceeds, with subservicing and recapture retained on nearly 80%.
- Liquidity and debt: Liquidity was $11.2 billion, comprising $3.1 billion of cash, $2.3 billion of undrawn credit lines and $5.8 billion of undrawn MSR and advance facilities; Rocket also issued $1.5 billion of senior notes to refinance debt.
- Outlook and platform: Q3 adjusted revenue is expected at $2.5 billion-$2.7 billion; management highlighted AI tools, Redfin integration, Rocket Loans growth and a unified servicing platform as drivers of conversion and recapture.
Analysis
Rocket’s Q2 2026 was a scale-and-integration quarter: the company expanded sharply despite what it described as one of the toughest spring housing markets in years, while earnings exceeded the year-ago period but moderated sequentially. Total revenue rose 92% year over year to $2.78 billion, GAAP net income increased to $229 million from $34 million, and adjusted EBITDA grew to $766 million from $172 million. Net income declined from $297 million in Q1, while adjusted net income rose from $422 million in Q1 to $441 million. The supplied consensus data shows EPS of $0.13, exactly matching the reported result; the release and 10-Q separately show GAAP diluted EPS of $0.08, compared with $0.01 a year ago and $0.10 in Q1.
Mortgage production and the enlarged servicing base defined the print. Closed origination volume increased 69% to $49.1 billion, and Mortgage contribution margin rose to $1.17 billion from $450 million as adjusted revenue grew faster than direct costs. Servicing fee income more than doubled to $1.07 billion, supported by a $2.0 trillion portfolio, while Redfin added $261 million of real estate services revenue. The quarter also showed the cost of the new platform: total expenses rose 75% to $2.50 billion, including $99 million of acquisition-related costs, $112 million of acquired-intangible amortization and $28 million of litigation accrual. Q3 adjusted revenue guidance is $2.5 billion-$2.7 billion.
Earnings and operating leverage
Rocket converted substantially higher volume and servicing scale into its strongest profitability in four years, although sequential GAAP earnings declined from Q1. The earnings comparison is affected by the Redfin and Mr. Cooper acquisitions, which were not reflected in the year-ago base for the full period.
- GAAP result: Net income was $229 million, or $0.08 diluted EPS in the release, versus $34 million and $0.01 a year ago; Q1 net income was $297 million and diluted EPS was $0.10.
- Adjusted result: Adjusted net income was $441 million, or $0.16 adjusted diluted EPS, versus $75 million and $0.04 a year ago. The quarter included $90 million of share-based compensation, $99 million of acquisition-related expenses, $112 million of acquired-intangible amortization and a $28 million litigation accrual.
- Cost base: Total expenses increased 75% to $2.50 billion. Salaries, commissions and benefits rose to $1.05 billion, interest expense to $374 million and depreciation and amortization to $145 million, reflecting higher production, acquisition-related staffing and acquired intangibles.
Mortgage production economics
Mortgage was the main operating engine. Rocket reported record quarterly purchase and refinance market share even as mortgage rates remained elevated and the spring market was muted. The mix favored higher-margin Direct to Consumer production, but Correspondent volume diluted the consolidated gain-on-sale margin.
- Volume: Total net rate lock volume was $47.0 billion and total closed origination volume was $49.1 billion, up from $29.1 billion a year ago. Excluding Correspondent, closed volume was $39.2 billion.
- Channel mix: Direct to Consumer generated $28.1 billion of closed volume at a 4.13% gain-on-sale margin. Rocket Pro generated $11.1 billion at a 0.69% margin, while Correspondent generated $10.0 billion at a 0.19% margin.
- Profitability: Mortgage adjusted revenue rose 80% to $2.25 billion and contribution margin increased $724 million to $1.17 billion. Directly attributable expenses rose 35% to $1.08 billion, slower than adjusted revenue.
- Market position: Purchase market share reached 6.2%, up from 5.5% in Q4 2025, and refinance share reached 14.3%, up from 12.2%.
Servicing and MSR monetisation
The Mr. Cooper combination materially enlarged Rocket’s servicing economics. Contractual servicing fees and custodial deposit income supported revenue, while MSR cash-flow realization remained a substantial offset in reported servicing fair value.
- Portfolio: Total serviced UPB was $2.02 trillion across 9.1 million loans, including $1.21 trillion of owned MSRs and $803.1 billion of subservicing and other UPB.
- Servicing income: Servicing fee income increased to $1.07 billion from $401 million, but the net change in MSR fair value was negative $616 million. Loan servicing income, net therefore rose to $450 million from $202 million.
- MSR sales: Rocket sold $53 billion of MSR UPB in Q2 for $795 million of cash proceeds and retained subservicing and recapture services on nearly 80% of the sold rights. Six-month MSR sales totaled $92.5 billion of UPB.
- Recapture opportunity: Management said legacy Mr. Cooper recapture rates reached another record, while the unified servicing platform is intended to improve efficiency, client retention and future refinance and purchase conversion.
Platform integration and AI
Management’s strategic emphasis was on making Redfin, mortgage origination and servicing reinforce one another rather than operating as separate acquisitions. The quarter provided early evidence through real estate revenue, lead generation and productivity metrics, although integration costs remained material.
- Redfin contribution: Real estate services revenue was $261 million versus $15 million a year ago, driven by incremental Redfin transactions; Redfin recorded 19,000 real estate transactions in Q2.
- Lead generation: Redfin doubled mortgage leads year over year in June and reached record mortgage attach rates as Rocket integrated product, pricing and conversion models.
- AI productivity: Loan officers using Rocket’s AI prioritization tools handled nearly 40% more clients than a year earlier. Rocket Pro partners adopting Jupiter and Navigate AI were growing applications and closings at five times the pace of non-adopters.
- Servicing automation: AI Voice handled more than 1 million inbound calls within three months of launch; more than 50% would otherwise have required servicing-team assistance, resolution was nearly 25% faster than traditional IVR and satisfaction was 4.5 out of 5.
- Other products: Rocket Loans volume nearly doubled year over year in the first half, with more than half of loans going to Rocket servicing clients; Rocket Money ended the quarter with 5.0 million paying subscribers.
Liquidity and capital structure
Rocket ended the quarter with substantial funding capacity after refinancing debt, supporting its larger mortgage pipeline and servicing portfolio. The company also reduced secured financing as loan-sale proceeds were recycled through the funding facilities.
- Liquidity: Total liquidity was $11.2 billion at June 30, consisting of $3.1 billion of cash, $2.3 billion of undrawn lines of credit and $5.8 billion of undrawn MSR and advance lines.
- Debt issuance: Rocket issued $1.5 billion of senior notes in June, including $900 million of 6.125% notes due 2031 and $600 million of 6.500% notes due 2034. Proceeds redeemed outstanding notes and repaid other debt.
- Balance sheet: Secured financing declined to $16.6 billion from $17.9 billion at year-end, while unsecured financing rose to $10.8 billion from $10.4 billion. Total equity was $23.5 billion, versus $22.9 billion at December 31, 2025.
- Near-term guide: Q3 adjusted revenue is expected between $2.5 billion and $2.7 billion, below Q2 adjusted revenue of $2.76 billion but above the year-ago quarter’s $1.43 billion.
