Rocket Companies (RKT) investor relations material

Market environment and opportunities

• Inflation and rising 10-year treasury yields are pressuring mortgage rates, but purchase volumes remain close to 2025 levels, offering significant opportunity.

• Record home equity levels present a major opportunity for home equity lending and cash-out refinancing.

• Market conditions vary by geography, with some regions showing increased inventory and buyer-friendly dynamics.

• Despite higher rates, the market remains large and fragmented, with substantial room for share growth.

Business model evolution and resilience

• Revenue diversification has shifted, with 70% now from less rate-sensitive products like purchase transactions, servicing, and home equity.

• Cost discipline and innovation, including AI-driven efficiencies, have enabled margin growth without increasing headcount.

• Proprietary technology and data infrastructure provide a durable competitive advantage and support rapid innovation.

Integration and synergy realization

• Integration of Mr. Cooper and Redfin was challenging but achieved ahead-of-plan cost synergies, unlocking $400 million annually.

• Consolidating servicing platforms enables advanced propensity and recapture models across a unified client base.

• Enhanced recapture rates on acquired MSRs increase their value and support future growth.