Rocket Companies (RKT) Q2 2024 earnings summary

Executive summary

• Achieved strong Q2 2024 results with adjusted revenue of $1.228 billion, up 23% year-over-year, and adjusted EBITDA of $225 million (18% margin), marking the most profitable quarter in two years.

• Net income reached $178 million GAAP ($0.01 per diluted share) and $121 million adjusted ($0.06 per adjusted diluted share); adjusted net income margin was 10%.

• Closed loan origination volume grew 10.4% year-over-year to $24.7 billion, with home equity loan originations more than doubling to record levels.

• Profitable market share growth and expanded purchase share, driven by innovation, operational efficiency, and AI-powered solutions.

• Servicing portfolio UPB reached $535 billion, with 2.6 million loans serviced and a 97% net client retention rate.

Financial highlights

• Adjusted revenue of $1.228 billion, up 23% year-over-year; total Q2 revenue was $1.3 billion.

• Adjusted EBITDA was $225 million (18% margin), up from $18 million in Q2 2023.

• Gain on sale margin was 2.99%, up from 2.67% year-over-year.

• Net rate lock volume was $25.1 billion, up 13% year-over-year.

• Liquidity as of June 30, 2024, was $8.6 billion, including $1.3 billion in cash and $3.4 billion in undrawn credit lines.

Outlook and guidance

• Q3 2024 adjusted revenue guidance is $1.15 billion–$1.3 billion.

• Operating expenses expected to be flat quarter-over-quarter.

• Management expects continued growth in adjusted EBITDA and net income, supported by market share gains and operational leverage.

• Market expected to remain challenging with Q3 conditions mirroring Q2; focus remains on taking market share.