Rocket Companies (RKT) Q4 2025 earnings summary

Executive summary

• Completed acquisitions of Redfin and Mr. Cooper, fully consolidating results in Q4 2025 and creating a seamless, end-to-end homeownership platform.

• Formed a strategic partnership with Compass to address home affordability, expand inventory, and streamline the home buying process.

• Leveraged proprietary technology and AI to double loan origination capacity with half the headcount compared to 2022, driving operational efficiency.

• Achieved significant integration milestones, with expense synergies from Redfin realized six months ahead of plan and Mr. Cooper synergies ahead of schedule.

• Maintains #1 position in mortgage lending with $2T cumulative origination volume and 9.5M servicing clients as of December 2025.

Financial highlights

• Q4 2025 adjusted revenue reached $2.44 billion, exceeding guidance and up 106% year-over-year; full-year adjusted revenue totaled $6.86 billion, up 40% year-over-year.

• Adjusted EBITDA for FY 2025 was $1.28 billion (24% margin), with Q4 2025 at $592 million; adjusted net income for FY 2025 was $628 million.

• Q4 2025 net rate lock volume (excluding correspondent) was $36 billion, with a gain on sale margin of 2.82%–3.2%.

• Servicing portfolio reached $2.1 trillion UPB, generating $5.0 billion annualized recurring cash flow.

• Q4 2025 adjusted diluted EPS was $0.11; full-year adjusted EPS was $0.28.

Outlook and guidance

• Q1 2026 adjusted revenue guidance is $2.6–$2.8 billion, including $150 million from warehouse interest expense reclassification.

• Underlying Q1 expenses expected at ~$2.2 billion, excluding one-time and non-cash items.

• Warehouse interest on loans held for sale to be reclassified from contra-revenue to direct expense starting Q1 2026, impacting presentation but not net income or cash flow.

• Forecasters expect the mortgage origination market to grow meaningfully in 2026, with the company positioned for further market share gains.