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, launching digital pre-approvals and AI-powered communications.

• 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 full-year adjusted revenue totaled $6.86 billion, up 40% year-over-year.

• Q4 2025 adjusted EBITDA was $592 million; full-year adjusted EBITDA was $1.28 billion (24% margin), up 49% year-over-year.

• Q4 2025 adjusted net income was $316 million; full-year adjusted net income was $628 million.

• Q4 2025 net rate lock volume (excluding correspondent) was $36 billion, with a gain on sale margin of 2.82%; full-year gain on sale margin was 2.83%.

• Servicing portfolio ended 2025 at $2.1 trillion in unpaid principal balance, generating $5 billion in recurring annual cash revenue.

Outlook and guidance

• Q1 2026 adjusted revenue expected between $2.6 billion and $2.8 billion, including $150 million from warehouse interest expense reclassification.

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

• Forecasters anticipate double-digit growth in the mortgage origination market for 2026.

• Company expects continued market share gains and operating leverage, with Q1 performance expected to match or exceed Q4.

• 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.