Rocket Companies, Inc.
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Item 1. Business
Overview
We are a Detroit‑based fintech company including mortgage, real estate and personal finance businesses with a mission to Help Everyone Home. We are committed to delivering industry-best client experiences through our AI-powered, vertically integrated homeownership ecosystem. Our full suite of products empowers our clients across home search, mortgage finance and servicing, title and closing, financial wellness and personal loans. We believe our widely recognized “Rocket” brand is synonymous with simple, fast and trusted digital experiences.
Our flagship business, Rocket Mortgage, is the nation's largest mortgage originator by loan units and the nation's largest mortgage servicer with portfolio unpaid principal balance of $2.1 trillion as of December 31, 2025. Servicing loans provides us with the opportunity to build long-term relationships and continually deliver a seamless experience to our clients. We extend the same client-centric and technology-driven experience across both origination and servicing. As of December 31, 2025, the net client retention rate of our servicing portfolio was 97% on an annual basis. We believe there is a strong correlation between this metric and client lifetime value, and we believe these levels are far superior to others in the mortgage industry.
Our culture is rooted in foundational principles, or “ISMs”, which serve as a guiding framework for decision-making across the organization. Created by our founder and Chairman, Dan Gilbert, these principles reinforce our commitment to prioritizing team members and clients, encapsulated in the philosophy: “Love our team members. Love our clients.”
On July 1, 2025, we completed the acquisition of Redfin, a leading digital real estate brokerage and home search platform.
On October 1, 2025, we completed the acquisition of Mr. Cooper, a leading mortgage servicer and originator, to further expand Rocket Mortgage’s capabilities.
Rocket Portfolio of Companies
Rocket Companies operates an integrated ecosystem of mortgage, real estate and financial services businesses centered on enabling AI-fueled homeownership.
•Rocket Mortgage. The nation’s largest mortgage lender, aiming to provide the simplest and most convenient way to get a mortgage. Our digital process utilizes automated data retrieval and advanced underwriting technology to deliver fast, tailored solutions to our clients. Our clients leverage the Rocket Mortgage app and website to apply for mortgages, interact with our team members, upload documents, e-sign documents, receive statements and complete monthly payments.
Rocket Mortgage is both a mortgage originator and a mortgage servicer. Since 2010, Rocket Mortgage has won 23 J.D. Power Awards in total across mortgage origination and mortgage servicing. Our mortgage origination net promoter score was 70 for full year 2025, placing us among companies recognized for best-in-class service.
Our mortgage origination business is organized around distinct marketing channels, which are reported within our Direct to Consumer and Partner Network segments. In the Direct to Consumer channel, our clients are able to interact with Rocket Mortgage digitally and/or with our mortgage bankers. We market to potential clients in this channel through various brand campaigns and performance marketing channels. Within the Partner Network, we operate across Wholesale, Premier Enterprise Partner and Correspondent channels. Through Rocket Pro, our Wholesale channel, independent mortgage professionals gain access to our technology, loan products, and operational support, allowing them to provide a seamless mortgage experience to borrowers while maintaining their own brand and client relationships. In our Premier Enterprise Partner channel, we partner with financial institutions and well-known consumer-focused companies to offer their clients mortgage solutions with our trusted, well-recognized brand. In our Correspondent channel, we acquire mortgage loans from third-party mortgage originators and financial institutions, leveraging Rocket’s underwriting, fulfillment and secondary market capabilities.
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As mentioned above, we believe there is a strong correlation between our superior net client retention rate and client lifetime value. Servicing the loans that we originate provides us with an opportunity to build long‑term relationships and continually deliver a seamless experience to our clients. We employ our same client‑centric philosophy and technology cultivated through our origination business towards the servicing of loans to deliver a digital client experience in servicing, specifically designed around the needs and expectations of our clients. Through Rocket Mortgage, servicing clients can view their loan information and activity, obtain insight into their home value and equity and obtain personalized videos that simplify complex topics such as escrow changes.
The addition of Mr. Cooper, a leading mortgage servicer and originator, further expands Rocket Mortgage’s capabilities.
•Redfin. On July 1, 2025, we completed the acquisition of Redfin, a leading digital real estate brokerage and home search platform. Our real estate services allow consumers to search for homes, connect with a real estate agent and obtain mortgage approval, creating a seamless, fully integrated home buying and selling experience. Our real estate services also empower clients to buy or sell properties directly through a streamlined process to create high-impact listings and offer one-on-one support from home selling specialists.
•Rocket Close. Formerly known as Amrock, Rocket Close is our national title producer, settlement provider and appraisal management company, leveraging proprietary technology that integrates seamlessly into the Rocket platform and processes. This provides a digital, seamless experience for our clients with speed and efficiency from their first interaction with Rocket Mortgage through closing. As described in the “Marketing” section below, Rocket is rebranding key businesses as part of its evolution. Effective February 10, 2025, Amrock, LLC amended its name to Rocket Close, LLC.
•Rocket Money. Our personal finance app that helps clients manage their financial lives. Rocket Money offers clients a suite of financial wellness services including subscription cancellation, budget management and credit score improvement that save them time and money.
•Rocket Loans. Our personal loan business that offers a simple, fast and intuitive user experience by leveraging a single, automated technology platform, with particular focus on high quality, prime borrowers.
Data and Technology
We aim to deliver speed, certainty and value to our clients through scalable, technology-driven solutions. We believe AI is at the center of how clients buy, sell and finance homes. We have data and scale that uniquely positions Rocket to lead the next wave of industry transformation with AI. We have over 30 petabytes of data in our environments and thousands of attributes to establish accurate client profiles. We generate over 160 million calls with clients each year, which help us power AI models and continuously improve client, partner and team member experiences. We believe AI will transform our business, and in turn, the client experience and the industry, from lead generation and allocation to underwriting, closing and servicing.
Marketing
We believe our national Rocket brand is a competitive advantage that is difficult to replicate. While Rocket is already the most recognized name in the mortgage industry, we have made strategic investments to promote Rocket as a trusted brand associated with homeownership.
In early 2025, we unified our businesses under the “Rocket” brand with a refreshed visual identity and Rocket.com, aiming to position Rocket as an inclusive and influential end-to-end homeownership brand. In the second half of 2025, we introduced updated branding for Redfin as “Redfin Powered by Rocket” and for Mr. Cooper as “Mr. Cooper Powered by Rocket Mortgage,” highlighting a more connected experience across home search, real estate, and mortgage services.
We have a long history of creating bold brand campaigns and reaching potential clients through highly targeted marketing strategies. Our technology and data scale enable us to personalize our marketing efforts across channels.
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Competition
We compete against a variety of companies offering financial solutions, including large financial institutions, independent mortgage banks and fintech companies. Competition across our businesses is intense and can take many forms, including:
•Marketing, client acquisition and distribution channels
•Speed and certainty of obtaining loans
•Client service levels
•Client retention levels
•Reputation and brand recognition
•Variety of loan programs and services being made available
•Interest rates and fees charged for loans, loan terms and amounts
•Access to capital and liquidity
Business Model
We operate a scalable and vertically integrated homeownership ecosystem, underpinned by constant innovation and our competitive strengths, which include our digital-first brand, technology, data insights, client-first culture and partnerships. Our full suite of products empowers our clients across home search, mortgage finance and servicing, title and closing, financial wellness and personal loans.
Sources of revenue include Gain on sale of loans, net, Loan servicing income, net, Interest income, net, and Other income.
Our mortgage origination business primarily generates revenue from the Gain on sale of loans, net, which includes all components related to the origination and sale of mortgage loans. During the time loans are held for sale, we earn Interest income, net from the borrower on the underlying mortgage loan. This income is partially offset by the interest and fees associated with funding facilities.
We also generate significant revenue and cash flow from Loan servicing income, net associated with servicing our clients’ loans. For every mortgage that we service, we receive contractual recurring cash flows for the life of the loan. Cash flows correlate to the collection of required mortgage payments from the client and can fluctuate based on the volume of loans added or that are paid off in any given period. Additionally, we earn ancillary revenue such as late fees and modification incentives on the loans we service. Subservicing revenue is primarily based on contractual per loan fees.
Other income is generated from our operations and services provided to clients or partners across our ecosystem. This includes revenue generated from Deposit income earned on cash deposits (including custodial deposits associated with the servicing portfolio), Rocket Close title, closing and appraisal services, Rocket Money paying subscribers, Redfin real estate services, and Rocket Loans personal loan interest and other income.
Detailed description of our revenues and related components can be found in “Management's Discussion and Analysis of Financial Condition and Results of Operations” in Part II, Item 7 Description of Certain Components of Financial Data.
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Government Regulations
We operate in heavily regulated industries that are highly focused on consumer protection. This extensive regulatory framework we are subject to includes U.S. federal, state and local laws. Governmental authorities and various U.S. federal and state agencies have broad oversight, supervision, and enforcement authority over our business. Because we are not a depository institution, we must comply with state licensing requirements to conduct our business. We incur significant ongoing costs to comply with licensing and other legal requirements under the Secure and Fair Enforcement for Mortgage Licensing Act of 2008 and the Dodd‑Frank Act, among others. To conduct our residential mortgage origination operations in the United States, we are licensed in all 50 states and the District of Columbia. As required by state law, we have additional licenses to enable us to act as a mortgage loan servicer in all 50 states, the District of Columbia, and certain US territories. We also maintain other applicable state licenses to enable us to act as a debt collector, real estate brokerage, conduct lead generation activities, and operate our personal loan platform that facilitates loans. The licensing process generally includes the submission of an application to the relevant state agency, a character and fitness review of key individuals and an administrative review of our business operations. In addition, the GSEs and the FHFA, Ginnie Mae, FTC, HUD, FHA, various investors, non‑agency securitization trustees and others subject us to periodic reviews and audits. This broad and extensive supervisory and enforcement oversight will continue to occur in the future. As a highly regulated business, the regulatory and legal requirements we face can change and may even become more restrictive. In turn, this could make our compliance responsibilities more complex. We are also subject to judicial and administrative decisions that impose requirements and restrictions on our business. Numerous U.S. federal and state consumer protection laws and regulations impact our business.
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Financial statements
data from SEC XBRL filings. Values are as-reported; restatements supersede originals. Values reported in .
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Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
The following management’s discussion and analysis of our financial condition and results of operations should be read in conjunction with, and is qualified in its entirety by reference to, our unaudited Condensed Consolidated Financial Statements and the related notes and other information included elsewhere in this Quarterly Report on Form 10-Q and our audited consolidated financial statements included in our Annual Report on Form 10-K filed with the SEC. This discussion and analysis contains forward-looking statements that involve risks and uncertainties which could cause our actual results to differ materially from those anticipated in these forward-looking statements, including, but not limited to, risks and uncertainties discussed under the heading “Special Note Regarding Forward-Looking Statements,” and in Part I. Item 1A. “Risk Factors” in our Form 10-K and elsewhere in this Form 10-Q.
Special Note Regarding Forward-Looking Statements
This Form 10-Q contains forward-looking statements, which involve risks and uncertainties. These forward-looking statements are generally identified by the use of forward-looking terminology, including the terms “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “should,” “target,” “will,” “would” and, in each case, their negative or other various or comparable terminology. All statements other than statements of historical facts contained in this Form 10-Q, our strategy, future operations, future financial position, future revenue, projected costs, prospects, plans, objectives of management and expected market growth are forward-looking statements. As you read this Form 10-Q, you should understand that these statements are not guarantees of performance or results. They involve known and unknown risks, uncertainties and assumptions, including those described under the heading “Risk Factors” in this Form 10-Q. Although we believe that these forward-looking statements are based upon reasonable assumptions, you should be aware that many factors, including those described under the heading “Risk Factors” in this Form 10-Q, could affect our actual financial results or results of operations and could cause actual results to differ materially from those in the forward-looking statements.
Our forward-looking statements made herein are made only as of the date of this Form 10-Q. We expressly disclaim any intent, obligation or undertaking to update or revise any forward-looking statements made herein to reflect any change in our expectations with regard thereto or any change in events, conditions or circumstances on which any such statements are based. All subsequent written and oral forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by the cautionary statements contained in this Form 10-Q.
Objective
The following discussion provides an analysis of the Company's financial condition, cash flows and results of operations from management's perspective and should be read in conjunction with the consolidated financial statements and notes thereto included in Part I, Item 1 of this Quarterly Report on Form 10-Q. Our objective is to provide a discussion of events and uncertainties known to management that are reasonably likely to cause the reported financial information not to be indicative of future operating results or of future financial condition and to also offer information that provides an understanding of our financial condition, cash flows and results of operations.
Executive Summary
We are a Detroit‑based homeownership platform including mortgage, real estate and personal finance businesses. We are committed to delivering industry-best client experiences through our AI-powered, vertically integrated homeownership platform. Our full suite of products empowers our clients across financial wellness, personal loans, home search, mortgage finance, title and closing. We believe our widely recognized “Rocket” brand is synonymous with simple, fast and trusted digital experiences.
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Recent Developments
Business Trends
In the first quarter of 2026, inflation remained near 3%, above the Federal Reserve’s 2% target, and the Federal Reserve held the federal funds rate steady at 3.50% to 3.75% in its January and March meetings. In March, conflict in the Middle East disrupted the global energy supply, leading to higher oil prices and raising concerns over further inflation, which caused market expectations for future rate cuts to diminish.
During the quarter, in this backdrop, the 30-year fixed-rate mortgage rate was volatile—starting at 6.15% at the beginning of January, declining to 5.98% in late February, and rising to 6.38% by the end of March. While January and February saw heightened mortgage activity, by March the sharp increase in the 30-year fixed-rate mortgage rate renewed pressure on affordability and home purchase demand across the housing market, contributing to softer housing activity.
Acquisitions and Up-C Collapse
On June 30, 2025, we completed the Up-C Collapse to simplify our organizational and capital structure. On July 1, 2025, we completed our all-stock acquisition of Redfin. On October 1, 2025, we completed our all-stock acquisition of Mr. Cooper. Integration continues to proceed as expected. Refer to Note 1, Business, Basis of Presentation and Significant Accounting Policies and Note 2, Acquisitions to our Condensed Consolidated Financial Statements included in this Form 10-Q.
Three months ended March 31, 2026 summary
We originated $44.7 billion in residential mortgage loans, an increase of $23.1 billion, compared to $21.6 billion in 2025. Our Net income for the period was $297 million, an increase of $509 million, compared to a Net loss of $212 million in 2025. We generated Adjusted EBITDA of $738 million, an increase of $569 million, compared to $169 million in 2025. For more information on Adjusted EBITDA, please see “Non-GAAP Financial Measures” below.
Non-GAAP Financial Measures ($ In Millions, Except Per Share Amounts)
To provide investors with information in addition to our results as determined by GAAP, we disclose Adjusted revenue, Adjusted net income, Adjusted diluted earnings per share and Adjusted EBITDA as non-GAAP measures which management believes provide useful information to investors. We believe the presentation of our non-GAAP financial measures provides useful information to investors regarding our results of operations because each measure assists both investors and management in analyzing and benchmarking the performance and value of our business. Our non-GAAP financial measures are not calculated in accordance with GAAP and should not be considered as a substitute for revenue, net income (loss), or any other operating performance measure calculated in accordance with GAAP. Other companies may define non-GAAP financial measures differently, and as a result, our non-GAAP financial measures may not be directly comparable to those of other companies. Our non-GAAP financial measures provide indicators of performance that are not affected by fluctuations in certain costs or other items. Accordingly, management believes that these measurements are useful for comparing general operating performance from period to period, and management relies on these measures for planning and forecasting of future periods. Additionally, these measures allow management to compare our results with those of other companies that have different financing and capital structures.
We define “Adjusted revenue” as Total revenue, net of the Change in fair value of MSRs and related liabilities due to valuation assumptions (net of hedges). We define “Adjusted net income” as Tax-effected Net income (loss) before Share-based compensation expense, the Change in fair value of MSRs and related liabilities due to valuation assumptions (net of hedges), Acquisition-related expenses, Amortization of acquired intangible assets, Other adjustments and Tax impact of adjustments as applicable. We define “Adjusted diluted earnings per share” as Adjusted net income divided by the Adjusted diluted weighted average shares outstanding which includes Diluted weighted average Participating Common Stock outstanding and the Assumed pro forma conversion of Class D shares for the applicable period presented. We define “Adjusted EBITDA” as Net income (loss) before Bond interest expense, (Provision for) benefit from income taxes, Depreciation and amortization, Share-based compensation expense, Change in fair value of MSRs and related liabilities due to valuation assumptions (net of hedges), Acquisition-related expenses, Amortization of acquired intangible assets and Other.
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We exclude from each of our non-GAAP financial measures the Change in fair value of MSRs and related liabilities due to valuation assumptions (net of hedges), as this represents a non-cash non-realized adjustment to our total revenues, reflecting changes in market interest rates and assumptions, including OAS and prepayment speeds, which are not indicative of our performance or results of operation. We also exclude gains or losses on sales of MSRs during the period and effects of contractual prepayment protection associated with sales of MSRs. Further, we exclude the amortization of intangible assets recognized from the Acquisitions from Adjusted net income and Adjusted EBITDA. The intangible assets related to the Acquisitions were recorded as part of purchase accounting and the related amortization recorded over their useful lives represents a fixed non-cash expense that is not indicative of our ongoing performance or results of operations. Adjusted EBITDA includes interest expense on secured financing which is recorded as a component of Interest expense, as these expenses are a direct cost driven by loan origination volume. By contrast, Bond interest expense is a function of our capital structure and is therefore excluded from Adjusted EBITDA.
Adjustment to Income taxes
In determining our non-GAAP provision for income taxes, which can differ significantly from our GAAP provision for income taxes, we apply a long-term projected non-GAAP tax rate that excludes certain significant, non-recurring and period-specific income tax effects, such as changes in judgment or estimates of tax matters related to prior years, changes in the valuation allowance related to deferred tax assets, changes in tax laws, and changes to our business structure including impacts from business combinations. The application of a long-term non-GAAP tax rate helps us assess the core profitability of our business operations and compare to our historical operating results. In arriving at the long-term non-GAAP tax rate used in fiscal year 2026, we evaluated our structure after the Up-C Collapse in 2025 and projections and currently available information for fiscal year 2026 through 2028. In projecting this long-term non-GAAP tax rate, we utilized a three-year financial projection that excludes the direct and indirect income tax effects of the other non-GAAP adjustments reflected above including tax impacts related to nondeductible executive equity compensation. Additionally, we considered our current operating structure and other factors such as our existing and potential tax positions in various jurisdictions and key legislation in major jurisdictions where we operate. The projected long-term non-GAAP tax rate could be subject to change for several reasons, including significant changes in our geographic earnings mix or in application of tax laws in major jurisdictions in which we operate. As such, we periodically re-evaluate the appropriateness of the long-term non-GAAP tax rate and may adjust for significant changes.
Our definitions of each of our non-GAAP financial measures allow us to add back certain cash and non-cash expenses, and deduct certain gains that are included in calculating Total revenue, net, Net income (loss) attributable to Rocket Companies or Net income (loss). However, these expenses and gains vary greatly, and are difficult to predict. From time to time in the future, we may include or exclude other items if we believe that doing so is consistent with the goal of providing useful information to investors.
Although we use our non-GAAP financial measures to assess the performance of our business, such use is limited because they do not include certain material costs necessary to operate our business. Our non-GAAP financial measures can represent the effect of long-term strategies as opposed to short-term results. Our presentation of our non-GAAP financial measures should not be construed as an indication that our future results will be unaffected by unusual or nonrecurring items. Our non-GAAP financial measures have limitations as analytical tools, and you should not consider them in isolation or as a substitute for analysis of our results as reported under U.S. GAAP. Because of these limitations, our non-GAAP financial measures should not be considered as measures of discretionary cash available to us to invest in the growth of our business or as measures of cash that will be available to us to meet our obligations.
Limitations to our non-GAAP financial measures included, but are not limited to:
(a) they do not reflect every cash expenditure, future requirements for capital expenditures or contractual commitments;
(b) Adjusted EBITDA does not reflect the significant interest expense or the cash requirements necessary to service interest or principal payment on our debt;
(c) although Depreciation and amortization are non-cash expenses, the assets being depreciated and amortized will often have to be replaced or require improvements in the future, and Adjusted revenue, Adjusted net income and Adjusted EBITDA do not reflect any cash requirement for such replacements or improvements; and
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(d) they are not adjusted for all non-cash income or expense items that are reflected in our Condensed Consolidated Statements of Cash Flows.
We compensate for these limitations by using our non-GAAP financial measures along with other comparative tools, together with U.S. GAAP measurements, to assist in the evaluation of operating performance. See below for reconciliation of our non-GAAP financial measures to their most comparable U.S. GAAP measures. Additionally, our U.S. GAAP-based measures can be found in the Condensed Consolidated Financial Statements and related notes included elsewhere in this Form 10-Q.
Reconciliation of Adjusted revenue to Total revenue, net
| Three Months Ended March 31, | |||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||
Total revenue, net | $ | 2,941 | $ | 1,101 | |||||||||||||||
Change in fair value of MSRs and related liabilities due to valuation assumptions (net of hedges) (1) | (119) | 259 | |||||||||||||||||
Adjusted revenue | $ | 2,822 | $ | 1,360 | |||||||||||||||
(1) Reflects changes in market interest rates and assumptions, including OAS and prepayment speeds, gains or losses on sales of MSRs during the period and the effects of contractual prepayment protection associated with sales or purchases of MSRs.
Reconciliation of Adjusted net income to Net income (loss) attributable to Rocket Companies
| Three Months Ended March 31, | |||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||
| Net income (loss) attributable to Rocket Companies | $ | 297 | $ | (10) | |||||||||||||||
Net loss impact from pro forma conversion of Class D common shares to Class A common shares (1) | — | (202) | |||||||||||||||||
Adjustment to the (Provision for) benefit from income taxes (2) | 1 | 43 | |||||||||||||||||
Tax-effected net income (loss) (2) | $ | 298 | $ | (169) | |||||||||||||||
Share-based compensation expense | 88 | 40 | |||||||||||||||||
Change in fair value of MSRs and related liabilities due to valuation assumptions (net of hedges) (3) | (119) | 259 | |||||||||||||||||
Acquisition-related expenses (4) | 79 | 28 | |||||||||||||||||
Amortization of acquired intangible assets (5) | 113 | — | |||||||||||||||||
Other adjustments (6) | 5 | 1 | |||||||||||||||||
Tax impact of adjustments (7) | (42) | (79) | |||||||||||||||||
| Adjusted net income | $ | 422 | $ | 80 | |||||||||||||||
(1) Reflects net income (loss) to Class A common shares from pro forma exchange and conversion of corresponding shares of our Class D common shares held by non-controlling interest holders during the periods ended March 31, 2025. Class D common shares were surrendered and retired on June 30, 2025, the date the Up-C Collapse was effectuated.
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(2) Refer to Adjustment for Income taxes paragraph above for discussion on the adjustment to income taxes.
Rocket Companies is subject to U.S. Federal income taxes, in addition to state, local and foreign taxes with respect to its allocable share of any net taxable income or loss of Holdings LP. The Adjustment to the (Provision for) benefit from income taxes reflects the difference between (a) the income tax computed using the effective tax rates below applied to the Adjusted income (loss) before income taxes based upon Rocket Companies, Inc. owning 100% of the non-voting common interest units of Holdings LP for all three months presented and (b) the (Provision for) benefit from income taxes for the periods presented.
| Three Months Ended March 31, | |||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||
| Net income (loss) attributable to Rocket Companies | $ | 297 | $ | (10) | |||||||||||||||
| Net loss impact from pro forma conversion of Class D common shares to Class A common shares | — | (202) | |||||||||||||||||
(Provision for) benefit from income taxes | (103) | 11 | |||||||||||||||||
Adjusted income (loss) before income taxes | $ | 400 | $ | (223) | |||||||||||||||
Effective income tax rate for adjusted net income (loss) | 25.60 | % | 24.32 | % | |||||||||||||||
Adjusted (Provision for) benefit from income taxes | $ | (102) | $ | 54 | |||||||||||||||
(Provision for) benefit from income taxes | (103) | 11 | |||||||||||||||||
Adjustment to the (Provision for) benefit from income taxes | $ | 1 | $ | 43 | |||||||||||||||
| Three Months Ended March 31, | |||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||
| Statutory U.S. Federal Income Tax Rate | 21.00 | % | 21.00 | % | |||||||||||||||
| Foreign taxes | 0.01 | 0.01 | |||||||||||||||||
| State and local income taxes (net of federal benefit) | 4.59 | 3.31 | |||||||||||||||||
Effective income tax rate for Adjusted net income | 25.60 | % | 24.32 | % | |||||||||||||||
(3) Reflects changes in market interest rates and assumptions, including OAS and prepayment speeds, gains or losses on sales of MSRs during the period and the effects of contractual prepayment protection associated with sales or purchases of MSRs.
(4) Primarily consists of transaction costs associated with the Acquisitions and Up-C Collapse, such as professional service fees (including integration costs), and severance expense.
(5) Reflects amortization of intangible assets related to the Acquisitions.
(6) Represents tax benefits due to the amortization of intangible assets and other tax attributes resulting from the historical purchases of Holdings Units, net of payment obligations under the TRA and change in equity investments.
(7) Tax impact of adjustments gives effect to the income tax related to Share-based compensation expense, Change in fair value of MSRs and related liabilities due to valuation assumptions (net of hedges), Acquisition-related expenses, Amortization of acquired intangible assets and Other adjustments, at the effective tax rates for each period.
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Reconciliation of Adjusted diluted weighted average shares outstanding to Diluted weighted average Participating Common Stock outstanding
| Three Months Ended March 31, | |||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||
| Diluted weighted average Participating Common Stock outstanding | 2,846,974,742 | 2,001,936,379 | |||||||||||||||||
Assumed pro forma conversion of Class D shares (1) | — | — | |||||||||||||||||
| Adjusted diluted weighted average shares outstanding | 2,846,974,742 | 2,001,936,379 | |||||||||||||||||
| Adjusted net income | $ | 422 | $ | 80 | |||||||||||||||
| Adjusted diluted earnings per share | $ | 0.15 | $ | 0.04 | |||||||||||||||
(1) Reflects the pro forma exchange and conversion of anti-dilutive Class D common shares to Class A common shares. For the three months ended March 31, 2025, Class D common shares were dilutive and are included in the Diluted weighted average Participating Common Stock outstanding in the table above. Class D common shares were surrendered and retired on June 30, 2025, the date the Up-C Collapse was effectuated.
Reconciliation of Adjusted EBITDA to Net income (loss)
| Three Months Ended March 31, | |||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||
| Net income (loss) | $ | 297 | $ | (212) | |||||||||||||||
Bond interest expense (1) | 139 | 38 | |||||||||||||||||
Provision for (benefit from) income taxes | 103 | (11) | |||||||||||||||||
Depreciation and amortization (2) | 33 | 27 | |||||||||||||||||
Share-based compensation expense | 88 | 40 | |||||||||||||||||
Change in fair value of MSRs and related liabilities due to valuation assumptions (net of hedges) (3) | (119) | 259 | |||||||||||||||||
Acquisition-related expenses (4) | 79 | 28 | |||||||||||||||||
Amortization of acquired intangible assets (5) | 113 | — | |||||||||||||||||
Other adjustments(6) | 5 | — | |||||||||||||||||
| Adjusted EBITDA | $ | 738 | $ | 169 | |||||||||||||||
(1) Bond interest expense reflects interest incurred on the Company's Senior Notes, recognized within Interest expense on the Condensed Consolidated Statements of Income (Loss) and Comprehensive Income (Loss).
(2) The three months ended March 31, 2026 exclude the impact of amortization of acquired intangible assets.
(3) Reflects changes in market interest rates and assumptions, including OAS and prepayment speeds, gains or losses on sales of MSRs during the period and the effects of contractual prepayment protection associated with sales or purchases of MSRs.
(4) Primarily consists of transaction costs associated with the Acquisitions and Up-C Collapse, such as professional service fees (including integration costs), and severance expense.
(5) Reflects amortization of intangible assets related to the Acquisitions.
(6) Reflects change in equity investments.
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Key Performance Indicators
We monitor a number of key performance indicators to evaluate the performance of our business operations. Our loan production key performance indicators enable us to monitor our ability to generate gain on sale revenue as well as understand how our performance compares to the total mortgage origination market. Our servicing portfolio key performance indicators enable us to monitor the overall size of our servicing portfolio of business, the related value of our mortgage servicing rights, and the health of the business as measured by the average MSR delinquency rate. Other key performance indicators for Other Rocket Companies subsidiaries, not including mortgage loan production or servicing, allow us to monitor both revenues and unit sales generated by these businesses.
The following summarizes key performance indicators of the business:
| Three Months Ended March 31, | |||||||||||||||||||
| (Units in thousands, and $ in millions) | 2026 | 2025 | |||||||||||||||||
| Loan Production Data | |||||||||||||||||||
| Closed loan origination volume | $ | 44,653 | $ | 21,584 | |||||||||||||||
| Direct to Consumer origination volume | $ | 23,660 | $ | 11,799 | |||||||||||||||
| Partner Network origination volume | $ | 20,993 | $ | 9,785 | |||||||||||||||
Gain on sale margin (1) | 2.74 | % | 2.89 | % | |||||||||||||||
| March 31, | |||||||||||
| (Units in thousands, and $ in millions) | 2026 | 2025 | |||||||||
| Servicing Portfolio Data | |||||||||||
| Total serviced UPB (includes subserviced) | $ | 2,109,774 | $ | 600,387 | |||||||
| MSRs UPB of loans serviced | $ | 1,257,976 | $ | 523,418 | |||||||
| UPB of loans subserviced and temporarily serviced | $ | 851,798 | $ | 76,969 | |||||||
| Total loans serviced (includes subserviced) | 9,440 | 2,797 | |||||||||
| Number of MSRs loans serviced | 6,507 | 2,598 | |||||||||
| Number of loans subserviced and temporarily serviced | 2,933 | 199 | |||||||||
MSR fair value multiple (2) | 5.30 | 4.95 | |||||||||
| Total serviced MSR delinquency rate (60+) | 1.45% | 1.34% | |||||||||
Net client retention rate (trailing twelve months) (3) | 97% | 97% | |||||||||
| Actual CPR rate | 10.61 | % | 8.80 | % | |||||||
| Three Months Ended March 31, | |||||||||||||||||||
(Units in thousands) | 2026 | 2025 | |||||||||||||||||
| Select Other Rocket Companies | |||||||||||||||||||
| Rocket Close closings (units) | 93 | 52 | |||||||||||||||||
| Rocket Money paying subscribers, at period end | 4,926 | 4,490 | |||||||||||||||||
| Rocket Loans closed (units) | 28 | 15 | |||||||||||||||||
Redfin real estate transactions | 14 | N/A | |||||||||||||||||
(1) Gain on sale margin is calculated by dividing Gain on sale of loans, net by the net rate lock volume for the period. A detailed description of the components of Gain on sale of loans, net can be found below in Description of Certain Components of Financial Data. For purposes of calculating this metric, gain on sale revenue includes all those components, but excludes revenues from Rocket Loans, changes in the investor reserve, and fair value adjustments on repurchased loans held on our balance sheet, such as early buyouts.
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(2) MSR fair market value multiple is a metric used to determine the relative value of the MSR asset in relation to the annualized retained servicing fee, which is the cash that the holder of the MSR asset would receive from the portfolio as of such date. It is calculated as the quotient of (a) the MSR fair market value as of a specified date divided by (b) the weighted average annualized retained servicing fee for our MSR portfolio as of such date. The weighted average annualized retained servicing fee for our MSR portfolio was 0.29% and 0.28% as of March 31, 2026 and 2025, respectively. The vast majority of our portfolio consists of originated MSRs and consequently, the impact of purchased MSRs does not have a material impact on our weighted average service fee.
(3) This metric measures our retention across a greater percentage of our client base versus our recapture rate. We define “net client retention rate” as the number of clients that were active at the beginning of a period and which remain active at the end of the period, divided by the number of clients that were active at the beginning of the period. This metric excludes clients whose loans were sold during the period as well as clients to whom we did not actively market to due to contractual prohibitions or other business reasons. We define “active” as those clients who do not pay off their mortgage with us and originate a new mortgage with another lender during the period.
Description of Certain Components of Financial Data
Refer to the 2025 Form 10-K for the year ended December 31, 2025 for the complete Description of Certain Components of Financial Data. Additionally, refer to Revenue Recognition in Note 1, Business, Basis of Presentation and Significant Accounting Policies for details about the components of revenue and the reclassification of certain interest-type activities.
Components of revenue
Our sources of revenue include Gain on sale of loans, net, Loan servicing income (loss), net, Interest income and Other income.
Components of operating expenses
Our operating expenses as presented in the Condensed Statement of Operations Data include Salaries, commissions and team member benefits, General and administrative expenses, Marketing and advertising expenses, Interest expense, Depreciation and amortization, and Other expenses.
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Results of Operations for the Three Months Ended March 31, 2026 and 2025
Summary of Operations
Condensed Statement of Operations Data | Three Months Ended March 31, | ||||||||||||||||||
| ($ in millions) | 2026 | 2025 | |||||||||||||||||
| Revenue | |||||||||||||||||||
| Gain on sale of loans, net | $ | 1,376 | $ | 772 | |||||||||||||||
Servicing fee income | 1,083 | 401 | |||||||||||||||||
| Change in fair value of MSRs, net | (485) | (449) | |||||||||||||||||
Interest income | 507 | 201 | |||||||||||||||||
Other income | 460 | 176 | |||||||||||||||||
Total revenue, net | $ | 2,941 | $ | 1,101 | |||||||||||||||
| Expenses | |||||||||||||||||||
Salaries, commissions and team member benefits | $ | 1,079 | $ | 610 | |||||||||||||||
General and administrative expenses | 535 | 261 | |||||||||||||||||
Marketing and advertising expenses | 345 | 276 | |||||||||||||||||
Interest expense | 349 | 109 | |||||||||||||||||
| Depreciation and amortization | 146 | 27 | |||||||||||||||||
Other expenses | 87 | 41 | |||||||||||||||||
Total expenses | $ | 2,541 | $ | 1,324 | |||||||||||||||
| Income (loss) before income taxes | 400 | (223) | |||||||||||||||||
| (Provision for) benefit from income taxes | (103) | 11 | |||||||||||||||||
| Net income (loss) | 297 | (212) | |||||||||||||||||
| Net loss attributable to non-controlling interest | — | 202 | |||||||||||||||||
| Net income (loss) attributable to Rocket Companies | $ | 297 | $ | (10) | |||||||||||||||
Gain on sale of loans, net
The components of Gain on sale of loans, net for the periods presented were as follows:
| Three Months Ended March 31, | |||||||||||||||||||
| ($ in millions) | 2026 | 2025 | |||||||||||||||||
Net gain on sale of loans (1) | $ | 620 | $ | 351 | |||||||||||||||
| Fair value of originated MSRs | 688 | 265 | |||||||||||||||||
| Provision for investor reserves | (6) | (4) | |||||||||||||||||
| Unrealized change in fair value of the Pipeline | (173) | 299 | |||||||||||||||||
| Realized and unrealized change in fair value of Pipeline hedges | 247 | (139) | |||||||||||||||||
| Gain on sale of loans, net | $ | 1,376 | $ | 772 | |||||||||||||||
Next expected filings
- ~2026-08-08 10-Q expected by 2026-08-08 (in 54 days)
- ~2026-11-06 10-Q expected by 2026-11-06 (in 144 days)
- ~2027-03-01 10-K expected by 2027-03-01 (in 259 days)
- ~2027-05-12 10-Q expected by 2027-05-12 (in 331 days)
Predicted from historical filing cadence; not an SEC commitment.
Recent SEC filings
- 2026-06-10 8-K Other Events; Financial Statements and Exhibits
- 2026-06-09 8-K Other Events; Financial Statements and Exhibits
- 2026-05-12 10-Q Quarterly Report
- 2026-05-07 8-K Earnings Release; Regulation FD Disclosure; Financial Statements and Exhibits
- 2026-04-29 DEF 14A Proxy Statement
- 2026-03-02 10-K Annual Report
- 2026-02-26 8-K Earnings Release; Regulation FD Disclosure; Financial Statements and Exhibits
- 2026-02-03 8-K Earnings Release
- 2025-12-22 8-K Material Agreement Entered; Material Financial Obligation; Other Events
- 2025-11-26 8-K Material Agreement Entered; Material Financial Obligation
- 2025-11-06 10-Q Quarterly Report
- 2025-10-30 8-K Earnings Release; Regulation FD Disclosure; Financial Statements and Exhibits
- 2025-10-01 8-K Material Agreement Entered; Completion of Acquisition/Disposition; Material Financial Obligation; Officer/Director Change; Regulation FD Disclosure; Other Events; Financial Statements and Exhibits
- 2025-09-24 8-K Material Agreement Entered; Material Financial Obligation
- 2025-09-22 8-K Other Events; Financial Statements and Exhibits