Reported Q3'25 GAAP net loss of $124 million and adjusted net income of $158 million
Delivered Q3'25 adjusted EBITDA of $349 million
DETROIT, Oct. 30, 2025 /PRNewswire/ -- Rocket Companies, Inc. (NYSE:RKT) ("Rocket Companies" or the "Company"), the Detroit-based homeownership platform company including mortgage, real estate, title and personal finance businesses, today announced results for the third quarter ended September 30, 2025.
"Rocket delivered a standout quarter, balancing short and long term execution in a category of one. I am very proud of the Rocket team for surpassing the high end of our adjusted revenue guidance range, accelerating Redfin momentum and closing the Mr. Cooper transaction—the largest independent mortgage company deal in history," said Varun Krishna, CEO and Director of Rocket Companies. "We are building a vertically integrated homeownership platform for the AI era."
Third Quarter 2025 Financial Summary (1)
($ in millions, except per share amounts)
Q3-25
Q3-24
YTD 25
YTD 24
(Unaudited)
(Unaudited)
Total revenue, net
$ 1,605
$ 647
$ 4,003
$ 3,331
Total expenses
$ 1,789
$ 1,144
$ 4,386
$ 3,338
GAAP net loss
$ (124)
$ (481)
$ (302)
$ (13)
Adjusted revenue
$ 1,783
$ 1,323
$ 4,419
$ 3,714
Adjusted net income
$ 158
$ 166
$ 313
$ 371
Adjusted EBITDA
$ 349
$ 286
$ 690
$ 685
GAAP diluted loss per share
$ (0.06)
$ (0.19)
$ (0.17)
$ (0.03)
Adjusted diluted earnings per share
$ 0.07
$ 0.08
$ 0.15
$ 0.19
($ in millions)
Q3-25
Q3-24
YTD 25
YTD 24
Select Metrics
(Unaudited)
(Unaudited)
Mortgage closed loan origination volume
$ 32,413
$ 28,496
$ 83,053
$ 73,363
Gain on sale margin
2.80 %
2.78 %
2.83 %
2.94 %
Net rate lock volume
$ 35,829
$ 29,835
$ 90,374
$ 77,247
(1) "GAAP" stands for Generally Accepted Accounting Principles in the U.S. Please see the sections of this document titled "Non-GAAP Financial Measures" and "GAAP to non-GAAP Reconciliations" for more information on the Company's non-GAAP measures and its share count. Certain figures throughout this document may not foot due to rounding.
Third Quarter 2025 Financial Highlights
During the third quarter of 2025:
Generated total revenue, net of $1.61 billion and GAAP net loss of $124 million. Generated total adjusted revenue of $1.78 billion and adjusted net income of $158 million.
Generated $35.8 billion in net mortgage rate lock volume, a 20% increase compared to the same period of the prior year.
Generated $32.4 billion in closed mortgage loan origination volume, a 14% increase compared to the same period of the prior year.
Gain on sale margin was 2.80%, an increase of 2 bps compared to the same period of the prior year.
Total liquidity was $9.3 billion, as of September 30, 2025, which includes $5.8 billion of cash on the balance sheet, $0.4 billion of corporate cash used to self-fund loan originations, $1.1 billion of undrawn lines of credit, and $2.0 billion of undrawn MSR lines of credit. The $5.8 billion of cash on the balance sheet includes $4.0 billion of prefunding debt related to the Mr. Cooper transaction. Subsequent to the quarter on October 1, Mr. Cooper legacy debt was retired.
Servicing portfolio unpaid principal balance, which includes acquired and subserviced loans, was $613 billion or 2.9 million loans serviced as of September 30, 2025. The portfolio generates approximately $1.7 billion of recurring servicing fee income on an annualized basis.
Company Highlights
On October 1, the Company completed an all-stock acquisition of Mr. Cooper Group, Inc. ("Mr. Cooper"). Under the agreement, each Mr. Cooper share was exchanged for 11 shares of Rocket Companies Class A common stock, increasing Rocket's Class A float to 35%. Founded in 1994, Mr. Cooper is the largest home loan servicer in the United States, focused on delivering a variety of servicing and lending products, services and technologies.
On October 1, Jay Bray joined Rocket Mortgage as President and CEO. Mr. Bray brings more than 30 years of experience in the mortgage servicing and originations industry. Prior to Rocket Mortgage, Mr. Bray led Mr. Cooper as Chairman and CEO, where he played a key role in the growth of the company's servicing portfolio to become the largest in the industry. Mr. Bray reports to Varun Krishna, CEO of Rocket Companies, the parent company of Rocket Mortgage.
In Q3, Rocket Mortgage released the AI-powered Pipeline Manager Agent, a tool that enables our loan officers to identify and prioritize the right leads. Our loan officers also leverage our AI communications platform to craft hyper-personalized text messages to clients. During the September refinance wave, our refinance loan officers—the first to leverage these tools—saw a 9 percentage point increase in client follow-ups, a double-digit lift in both daily credit pulls and refinance application conversions, and contributed to an incremental increase in rate lock volume.
In Q3, Rocket Mortgage launched the Purchase Agreement AI Agent, automating the complex, county-specific review of purchase agreements. This automation reduces processing time by 80% while achieving accuracy that exceeds the legacy review process and is projected to save more than 150,000 team member hours annually.
In Q3, Rocket Mortgage launched the Rocket Pro Underwriting AI Agent to give mortgage broker partners faster decisioning. The agent automates document verification, e-signature compliance checks, regulatory eligibility reviews, and generates detailed task summaries. Tasks that previously took over four hours now take less than 15 minutes.
On September 30, Rocket Pro hosted over 600 mortgage broker partners at the Rocket Pro Experience (RPX) in downtown Detroit. At the event, the company announced 10 broker partner commitments with foundational tenets of transparency, choice, and empowerment—to help brokers thrive through partnership with Rocket Pro. Several new tools were also unveiled: Rocket Pro Navigate, an AI platform for sales coaching and client communications; Rocket Pro Assist, an AI-driven support resource for instant loan inquiries; and BrokerNearMe.com, a consumer portal connecting borrowers with local mortgage brokers.
On October 16, Rocket Mortgage raised its conforming loan limit to $825,550 for single family homes across 48 states. The higher limit applies to our direct to consumer, Rocket Pro partner network, and Mr. Cooper Correspondent Partner channels, further expanding access to conventional mortgage financing.
On October 1, upon closing of the Mr. Cooper acquisition, Rocket Companies redeemed Nationstar Mortgage Holdings Inc.'s ("Nationstar") 5.000% senior notes due 2026, 6.000% senior notes due 2027, and 5.500% senior notes due 2028. The Company also completed cash tender offers and consent solicitations, conducted in connection with the acquisition of Mr. Cooper, for Nationstar's 5.125% senior notes due 2030, and 5.750% senior notes due 2031, as well as exchange offers and consent solicitations for Nationstar's 6.500% senior notes due 2029 and 7.125% senior notes due 2032. Collectively, these actions simplify and align the combined company's capital structure, reduce outstanding legacy debt, and enhance financial flexibility.
In September, Rocket Community Fund announced a $500,000 investment in Year Up United, a nationally recognized workforce development organization connecting young adults without four-year college degrees to in-demand careers, underscoring its commitment to expanding access to economic opportunity for Detroiters.
Fourth Quarter 2025 Outlook (2)
In Q4 2025, we expect adjusted revenue between $2.1 billion to $2.3 billion.
This outlook incorporates a full quarter of consolidated financial results from Redfin and Mr. Cooper.
(2) Please see the section of this document titled "Non-GAAP Financial Measures" for more information.
Segments
Direct to Consumer
In the Direct to Consumer segment, clients have the ability to interact with Rocket Mortgage digitally and/or with the Company's mortgage bankers. The Company markets to potential clients in this segment through various brand campaigns and performance marketing channels. The Direct to Consumer segment derives revenue from originating, closing, selling and servicing predominantly agency-conforming loans, which are pooled and sold to the secondary market. The segment also includes title and settlement services and appraisal management, complementing the Company's end-to-end mortgage origination experience. Servicing activities are fully allocated to the Direct to Consumer segment and are viewed as an extension of the client experience. Servicing enables Rocket Mortgage to establish and maintain long term relationships with our clients, through multiple touchpoints at regular engagement intervals.
DIRECT TO CONSUMER (3)
($ in millions)
Q3-25
Q3-24
YTD 25
YTD 24
(Unaudited)
(Unaudited)
Sold loan volume
$ 17,139
$ 14,006
$ 42,559
$ 36,087
Sold loan gain on sale margin
4.35 %
4.10 %
4.45 %
4.16 %
Total revenue, net
$ 975
$ 331
$ 2,763
$ 2,406
Adjusted revenue
$ 1,153
$ 1,007
$ 3,180
$ 2,789
Contribution margin
$ 469
$ 456
$ 1,243
$ 1,174
Partner Network
The Rocket Professional platform supports our Partner Network segment, where we leverage our superior client service and widely recognized brand to grow marketing and influencer relationships and our mortgage broker partnerships through Rocket Pro. Our marketing partnerships consist of well-known consumer-focused companies that find value in our award-winning client experience and want to offer their clients mortgage solutions with our trusted, widely recognized brand. These organizations connect their clients directly to us through marketing channels and a referral process. Our influencer partnerships are typically with companies that employ licensed mortgage professionals that find value in our client experience, technology and efficient mortgage process, where mortgages may not be their primary offering. We also enable clients to start the mortgage process through the Rocket platform in the way that works best for them, including through a local mortgage broker.
PARTNER NETWORK (3)
($ in millions)
Q3-25
Q3-24
YTD 25
YTD 24
(Unaudited)
(Unaudited)
Sold loan volume
$ 13,671
$ 12,405
$ 36,286
$ 31,470
Sold loan gain on sale margin
1.11 %
1.47 %
1.11 %
1.53 %
Total revenue, net
$ 168
$ 177
$ 429
$ 535
Adjusted revenue
$ 168
$ 177
$ 429
$ 535
Contribution margin
$ 96
$ 112
$ 236
$ 353
(3) We measure the performance of the Direct to Consumer and Partner Network segments primarily on a contribution margin basis. Contribution margin is intended to measure the direct profitability of each segment and is calculated as Adjusted revenue less directly attributable expenses. Directly attributable expenses include salaries, commissions and team member benefits, general and administrative expenses, marketing and advertising expenses and other expenses, such as mortgage servicing related expenses and expenses generated from Rocket Close (title and settlement services). A loan is considered "sold" when it is sold to investors on the secondary market. See "Summary Segment Results" section below and "Segments" footnote in the "Notes to Consolidated Financial Statements" in the Company's forthcoming filing on Form 10-Q for more information.
Balance Sheet and Liquidity
Total available cash was $6.2 billion as of September 30, 2025, which includes $5.8 billion of cash and cash equivalents, and $0.4 billion of corporate cash used to self-fund loan originations. This total available cash includes $4.0 billion from the unsecured notes issued in June 2025 in anticipation of refinancing Mr. Cooper's unsecured debt and paydown of existing MSR debt upon closing.
Additionally, we have access to $1.1 billion of undrawn lines of credit, and $2.0 billion of undrawn MSR lines of credit from financing facilities, for a total liquidity position of $9.3 billion as of September 30, 2025. Subsequent to the quarter on October 1, $3.1 billion of Mr. Cooper's legacy unsecured debt was refinanced with the proceeds from the June issuance and the remaining $1.9 billion of Mr. Cooper's legacy unsecured debt was assumed or refinanced through an exchange offer. Also subsequent to the quarter, we upsized our undrawn lines of credit to $2.3 billion, further enhancing our liquidity profile.
BALANCE SHEET HIGHLIGHTS
($ in millions)
September 30, 2025
December 31, 2024
(Unaudited)
Cash and cash equivalents
$ 5,836
$ 1,273
Mortgage servicing rights, at fair value
7,364
7,633
Funding facilities
10,523
6,708
Other financing facilities and debt
8,592
4,132
Total equity
8,851
9,043
Third Quarter Earnings Call
Rocket Companies will host a live conference call at 4:30 p.m. ET on October 30, 2025 to discuss its results for the quarter ended September 30, 2025. A live webcast of the event will be available online by clicking on the "Investor Info" section of our website. The webcast will also be available via rocketcompanies.com.
A replay of the webcast will be available on the Investor Relations site following the conclusion of the event.
Condensed Consolidated Statements of Income (Loss)
($ In Thousands, Except Per Share Amounts)
Three Months Ended September 30,
Nine Months Ended September 30,
2025
2024
2025
2024
(Unaudited)
(Unaudited)
Revenue
Gain on sale of loans
Gain on sale of loans excluding fair value of originated MSRs, net
$ 641,721
$ 506,688
$ 1,621,295
$ 1,396,128
Fair value of originated MSRs
385,692
337,702
993,644
906,044
Gain on sale of loans, net
1,027,413
844,390
