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Core Insights - Rocket Companies reported a revenue of $2.44 billion for the quarter ended December 2025, marking a year-over-year increase of 105.6% and exceeding the Zacks Consensus Estimate by 7.73% [1] - The earnings per share (EPS) for the same period was $0.11, compared to $0.04 a year ago, representing a surprise of 13.75% over the consensus estimate of $0.10 [1] Revenue Breakdown - Gain on sale of loans, net: $1.19 billion, exceeding the estimated $1 billion by analysts, reflecting a year-over-year increase of 67.7% [4] - Loan servicing income from servicing fees: $1.1 billion, surpassing the estimated $831.58 million, with a year-over-year increase of 184.1% [4] - Interest income, net: $29 million, slightly below the estimated $33.63 million, but showing a year-over-year increase of 30.9% [4] - Change in fair value of mortgage servicing rights (MSRs): reported at -$402 million, better than the estimated -$453.59 million, indicating a year-over-year change of -212.9% [4] - Other income: $771 million, exceeding the estimated $596.89 million, with a year-over-year increase of 163.6% [4] - Interest income: $159 million, below the estimated $239.77 million, but reflecting a year-over-year increase of 54.1% [4] - Interest expense on funding facilities: reported at -$130 million, better than the estimated -$207.17 million [4] - Loan servicing income, net: $700 million, significantly above the estimated $302.41 million, with a year-over-year decrease of 5.9% [4] - Gain on sale of loans related to the fair value of originated MSRs: $727 million, exceeding the estimated $380.93 million, with a year-over-year increase of 71.4% [4] - Gain on sale of loans excluding fair value of originated MSRs, net: $465 million, below the estimated $595.5 million, but showing a year-over-year increase of 62.3% [4] Stock Performance - Shares of Rocket Companies have returned -16.5% over the past month, contrasting with the Zacks S&P 500 composite's increase of 0.6% [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

Core Insights - Rocket Companies, Inc. reported strong fourth-quarter earnings, beating both revenue and earnings estimates, and provided optimistic forward guidance [1][2][3] Financial Performance - Quarterly earnings were reported at 11 cents per share, surpassing the analyst estimate of 9 cents [1] - Revenue for the quarter reached $2.44 billion, exceeding the Street estimate of $2.26 billion and significantly up from $1.19 billion in the same period last year [2] - The company generated $41.6 billion in total net rate lock volume and $47.3 billion in total closed mortgage loan origination volume, with a total gain on sale margin of 2.82% [3] Future Outlook - Rocket anticipates first-quarter revenue to be between $2.6 billion and $2.8 billion, compared to the analyst estimate of $2.37 billion [3] - The company highlighted its integrated homeownership ecosystem as a key driver of its performance, emphasizing its technological advancements and capacity for growth in the AI era [2]

Financial Data and Key Metrics Changes - In Q4 2025, the company reported $2.4 billion in adjusted revenue, exceeding guidance by $140 million [5][20] - Adjusted diluted EPS for Q4 was $0.11, while adjusted EBITDA increased from $349 million in Q3 to $592 million in Q4, with margins expanding from 20% to 24% [6][21] - For the full year, adjusted revenue reached $6.9 billion, with an adjusted EBITDA margin of 19%, up from 18% the previous year [7][19] Business Line Data and Key Metrics Changes - The company achieved $36 billion in net rate lock volume in Q4, the highest since 2021, with a gain on sale margin of 320 basis points [6][20] - The closed-end second product saw volume nearly double year-over-year, with December being the largest month ever for this product, surpassing $1 billion in origination volume [22] - Direct-to-consumer purchase business grew double digits quarter-over-quarter, with a 40% increase in volume from the Redfin preferred pricing bundle [23] Market Data and Key Metrics Changes - The company grew its market share to 5.5% in Q4, up from 3.8% the previous year [7] - The population of homeowners eligible for a rate-and-term refinance surged to 4.8 million, representing over $1 trillion in unpaid principal balance, a four-year high [24] - The company ended 2025 with a portfolio of $2.1 trillion in unpaid principal balance, generating approximately $5 billion in recurring annual cash revenue [24][25] Company Strategy and Development Direction - The company aims to tackle home affordability through a strategic partnership with Compass, focusing on increasing inventory and streamlining the home buying process [16][26] - The integration of Redfin and Mr. Cooper is progressing ahead of schedule, with expense synergies expected to be fully realized before the end of 2026 [28] - The company emphasizes its unique ecosystem and technology platform, which connects buyers with agents and loan officers, enhancing the homeownership experience [8][15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth of the mortgage origination market in 2026, with expectations of double-digit growth [48] - The company believes it can achieve profitable market share expansion without sacrificing returns, focusing on durable distribution channels [69] - Management highlighted that the current economic environment, including low rates and wage growth, supports affordability and refinancing opportunities [48] Other Important Information - The company has a robust capital position, ending the year with $2.8 billion in available cash and total liquidity of $10.1 billion [25] - A change in financial presentation will occur starting in Q1, reclassifying warehouse interest expense on loans held for sale, which will not impact profitability [29] Q&A Session Summary Question: Insights on the strategic alliance with Compass - Management explained that the partnership aims to address home affordability by improving inventory access and integrating mortgage services into the Compass experience [36][38] Question: Expectations for 2026 market size and share gains - Management anticipates a stronger market in 2026, with forecasts suggesting significant growth in the mortgage sector [47][49] Question: Expense outlook for the next quarter - Management provided details on expected expenses, highlighting integration progress and anticipated one-time costs related to acquisitions [56][58] Question: Regulatory environment and potential risks - Management expressed confidence in the company's position, noting that banks have not significantly re-entered the mortgage space due to economic factors [64] Question: Market share expectations and correspondent business - Management reaffirmed ambitious market share goals and clarified that the correspondent channel remains an important part of their strategy [68][71]

Financial Data and Key Metrics Changes - In Q4 2025, the company reported adjusted revenue of $2.4 billion, exceeding guidance by $140 million, with adjusted EBITDA increasing from $349 million in Q3 to $592 million in Q4, resulting in an EBITDA margin expansion from 20% to 24% [6][19] - For the full year 2025, adjusted revenue reached $6.9 billion, with an adjusted EBITDA margin of 19%, up from 18% in 2024, and adjusted diluted EPS increased to $0.28 from $0.23 [7][19] Business Line Data and Key Metrics Changes - The company achieved a net rate lock volume of $36 billion in Q4, the highest since 2021, with a gain on sale margin of 320 basis points [6][20] - The closed-end second product volume nearly doubled year-over-year, with December being the largest month ever for this product, surpassing $1 billion in origination volume [22] - Direct-to-consumer purchase closings saw double-digit growth year-on-year, with a 40% quarter-over-quarter increase in volume from the Redfin preferred pricing bundle [23] Market Data and Key Metrics Changes - The company grew its market share to 5.5% in Q4, up from 3.8% the previous year, reflecting successful execution of its strategy [7] - The population of homeowners eligible for a rate-and-term refinance surged to 4.8 million, representing over $1 trillion in unpaid principal balance, marking a four-year high [24] Company Strategy and Development Direction - The company is focused on addressing home affordability through a strategic partnership with Compass, aimed at expanding inventory and streamlining the home buying experience [16][26] - The integration of Redfin and Mr. Cooper is progressing ahead of schedule, with expense synergies expected to be fully realized before the original target of 2027 [28] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth of the mortgage origination market in 2026, anticipating a stronger market than in 2025, with forecasts suggesting double-digit growth [46][48] - The company emphasized its unique business model, which allows it to grow across various market conditions, leveraging its integrated ecosystem for client retention and recapture [25][48] Other Important Information - The company ended 2025 with $2.8 billion in available cash and total liquidity of $10.1 billion, positioning it well for future investments [25] - A change in financial presentation will occur in Q1, reclassifying warehouse interest expense on loans held for sale, which will not impact profitability [29] Q&A Session Summary Question: Can you elaborate on the strategic alliance with Compass? - Management highlighted that the partnership aims to tackle home affordability by addressing supply and demand issues, with a focus on improving inventory access and transaction efficiency [36][37] Question: What are the expectations for market share in 2026? - Management reaffirmed ambitious market share goals, emphasizing profitable expansion and the importance of distribution channels [68] Question: How is the company positioned regarding potential re-entry by banks into the mortgage space? - Management expressed confidence in its unique position and ongoing investment in the mortgage sector, viewing potential bank re-entry as a long-term challenge rather than an immediate risk [63][64]

Financial Data and Key Metrics Changes - In Q4 2025, Rocket Companies reported adjusted revenue of $2.4 billion, exceeding guidance by $140 million, with adjusted diluted EPS at $0.11 per share [5][19] - For the full year, adjusted revenue reached $6.9 billion, with adjusted EBITDA margin increasing to 19% from 18% the previous year [6][19] - Adjusted EBITDA rose from $349 million in Q3 to $592 million in Q4, with margins expanding from 20% to 24% [5][6] Business Line Data and Key Metrics Changes - The company achieved $36 billion in net rate lock volume in Q4, the highest since 2021, with a gain on sale margin of 320 basis points [5][19] - The closed-end second product volume nearly doubled year-over-year, with December being the largest month ever for this product, surpassing $1 billion in origination volume [21] - Jumbo loans grew nearly 70% year-over-year, indicating an expansion in product offerings to meet specialized needs [22] Market Data and Key Metrics Changes - Market share increased to 5.5% in Q4, up from 3.8% the previous year, reflecting successful execution of the company's strategy [6] - The population of homeowners eligible for refinancing surged to 4.8 million, representing over $1 trillion in unpaid principal balance, marking a four-year high [22] - The company ended 2025 with a portfolio of $2.1 trillion in unpaid principal balance, generating approximately $5 billion in recurring annual cash revenue [23][24] Company Strategy and Development Direction - Rocket Companies is focused on creating a unique ecosystem that connects buyers with agents, loan officers, and brokers, enhancing the homeownership experience [7][10] - The recent partnership with Compass aims to tackle home affordability by improving inventory access and streamlining the mortgage process [16][25] - The company is committed to leveraging AI and technology to enhance operational efficiency and client experience, positioning itself as a leader in the homeownership market [15][18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth potential for 2026, anticipating a stronger mortgage market driven by lower rates and increased inventory [46][48] - The company highlighted its unique business model that allows it to thrive across different market conditions, emphasizing its ability to retain and recapture clients [24][48] - Management noted that the integration of Redfin and Mr. Cooper is ahead of schedule, with significant synergies already realized [26][27] Other Important Information - The company has $2.8 billion in available cash and total liquidity of $10.1 billion, positioning it well for future investments [24] - A reclassification of warehouse interest expense will occur starting in Q1, which will not impact profitability but will affect financial presentation [28] Q&A Session Summary Question: Can you elaborate on the strategic alliance with Compass? - The partnership aims to address home affordability by improving inventory access and integrating Rocket's mortgage platform into Compass's experience, enhancing lead flow and client experience [32][34] Question: What are the expectations for market share in 2026? - Management reaffirmed ambitious market share goals, focusing on profitable expansion rather than volume chasing, with confidence in achieving these objectives through strategic partnerships and acquisitions [66][68] Question: How is Rocket positioned regarding potential re-entry by banks into the mortgage space? - Management believes that banks face challenges in the mortgage market, and Rocket's dedicated focus on this sector provides a competitive advantage [62][63]

Financial Performance - Total revenue for Q4 2025 was $2.69 billion, a 52% increase from $1.77 billion in Q4 2024, while full year revenue reached $6.7 billion, up from $5.1 billion in FY 2024[5][9] - GAAP net income for Q4 2025 was $68 million, compared to a net income of $649 million in Q4 2024, with a full year GAAP net loss of $234 million[5][9] - Adjusted EBITDA for Q4 2025 was $592 million, significantly higher than $177 million in Q4 2024, and full year adjusted EBITDA was $1.28 billion, up from $862 million in FY 2024[5][9] - Adjusted revenue for the year ended December 31, 2025, was $6,859 million, up from $4,902 million in 2024, representing a 40% growth[31] - The company reported a contribution margin of $2,905 million for the year ended December 31, 2025, compared to $2,113 million in 2024, indicating improved profitability[28] - Net income attributable to Rocket Companies for Q4 2025 was $68 million, compared to $34 million in Q4 2024, while the net loss for the year 2025 was $(68) million, compared to a profit of $29 million in 2024[33] - Adjusted net income for Q4 2025 was $316 million, significantly up from $85 million in Q4 2024, and for the year 2025, it was $628 million compared to $456 million in 2024[35] - Adjusted diluted earnings per share for Q4 2025 was $0.11, compared to $0.04 in Q4 2024, and for the year 2025, it was $0.28 versus $0.23 in 2024[35] Market Performance - The company achieved a total net rate lock volume of $41.6 billion in Q4 2025, with a gain on sale margin of 2.82%, marking the highest fourth quarter metrics in four years[9] - Rocket Mortgage's net client retention rate was 97% for the 12 months ended December 31, 2025, indicating strong customer loyalty and lifetime value[9] - The purchase market share increased to 5.5% in Q4 2025, up from 3.8% the previous year, driven by enhanced distribution and marketing strategies[10] Strategic Initiatives - A strategic alliance with Compass International Holdings was announced to enhance housing inventory and streamline the home buying process, with Redfin becoming a home search partner[6][10] - The company launched fully digital purchase pre-approvals in February 2026, resulting in 2.5x higher conversion rates compared to traditional methods[10] Liquidity and Assets - Total liquidity as of December 31, 2025, was $10.1 billion, including $2.7 billion in cash and $5.0 billion in undrawn MSR lines of credit[9][18] - Cash and cash equivalents increased to $2,696 million as of December 31, 2025, from $1,273 million in 2024[26] - Mortgage loans held for sale at fair value rose to $15,471 million in 2025, up from $9,020 million in 2024[26] - Total assets reached $60,685 million in 2025, significantly higher than $24,510 million in 2024[26] - The company’s total liabilities increased to $37,787 million in 2025, compared to $15,467 million in 2024[26] Expenses and Taxation - The company’s marketing and advertising expenses for the year ended December 31, 2025, were $1,088 million, up from $824 million in 2024, indicating increased investment in growth strategies[23] - The effective interest income for Q4 2025 was $29 million, a slight increase from $23 million in Q4 2024[23] - The effective income tax rate for Q4 2025 was 24.79%, slightly higher than 24.32% in Q4 2024[36] - The company incurred acquisition-related expenses of $175 million in Q4 2025, with total acquisition-related expenses for the year amounting to $333 million[38] - Share-based compensation expense for Q4 2025 was $181 million, compared to $36 million in Q4 2024, and for the year 2025, it was $341 million versus $145 million in 2024[38] Company Overview - Rocket Companies is a fintech platform founded in 1985, encompassing mortgage, real estate, and personal finance businesses[48] - The company handles over 160 million client calls annually and utilizes 30 petabytes of data to enhance client experiences[49] - Rocket Mortgage has been ranked 1 in client satisfaction for primary mortgage origination and servicing by J.D. Power a total of 23 times, the highest among mortgage lenders[49]

Investor Presentation February 2026 Disclaimer This presentation contains and related discussions may contain "forward-looking statements" within the meaning of U.S. federal securities laws. Forward-looking statements include information concerning possible or assumed future results of operations, Rocket Companies, Inc.'s (the "Company") business plansand strategies, the Company'sabilityto cross-selland up-sell the Company's productsand expansion into new markets. You can identifyforward-looking statements ...

Core Insights - Rocket Companies reported strong financial results for Q4 and full year 2025, with adjusted revenue exceeding guidance and a significant increase in adjusted net income [1][2][3] Financial Performance - Q4 2025 total revenue was $2.69 billion, up from $1.77 billion in Q4 2024, representing a 52% year-over-year increase [1][3] - Adjusted net income for Q4 2025 was $316 million, compared to $85 million in Q4 2024, marking a 271% increase [1][3] - Full year 2025 total revenue reached $6.7 billion, up from $5.1 billion in 2024, a 31% increase [1][3] - The company reported a GAAP net income of $68 million for Q4 2025, down from $649 million in Q4 2024, and a net loss of $234 million for the full year 2025 [1][3] Operational Highlights - The servicing portfolio's unpaid principal balance was $2.1 trillion, generating approximately $5.0 billion in annualized recurring cash flow [1][2] - Total liquidity stood at $10.1 billion as of December 31, 2025, including $2.7 billion in cash [1][2] - Rocket Mortgage achieved a net client retention rate of 97% for the year, indicating strong customer loyalty [1][2] Strategic Developments - A three-year strategic alliance with Compass International Holdings was announced to enhance housing inventory and streamline the home buying process [1][2] - The company launched fully digital purchase pre-approvals, leading to a 2.5x higher conversion rate compared to traditional methods [1][2] - Rocket and Redfin's joint Super Bowl advertisement campaign significantly increased brand awareness and engagement [1][2] Segment Performance - In the Direct to Consumer segment, Q4 2025 total revenue was $2.03 billion, up from $1.49 billion in Q4 2024, with a contribution margin of $850 million [2][3] - The Partner Network segment generated $239 million in total revenue for Q4 2025, compared to $135 million in Q4 2024, with a contribution margin of $150 million [2][3] Future Outlook - For Q1 2026, the company expects adjusted revenue between $2.6 billion and $2.8 billion, reflecting continued growth [2][3] - The reclassification of warehouse interest on loans held for sale will increase both reported revenue and expenses, but will not impact net income [2][3]

Core Insights - Rocket Companies and Compass International Holdings have formed a three-year strategic alliance to significantly increase home listing inventory on Redfin, potentially adding over 500,000 listings to the market [1] - The partnership aims to enhance the home buying and selling experience by integrating search, real estate professionals, and financing into a single platform, thereby reducing friction in the homebuying process [1] - The alliance will provide sellers with broader flexibility in listing their homes, which is expected to lower barriers for sellers and increase inventory for buyers [1] Group 1: Strategic Alliance Details - The unique inventory from Compass will include 'Coming Soon' and 'Private Exclusive' listings, increasing exposure for sellers and choices for buyers [1] - The partnership is projected to attract nearly 2 billion visits to Redfin in 2026, enhancing visibility for sellers [1] - Rocket Mortgage will offer preferred pricing for Compass clients, including a one-percentage-point interest-rate reduction for the first year or a lender credit of up to $6,000 [1] Group 2: Market Impact - The alliance is expected to generate over 1 million buyer inquiries for Compass real estate professionals, providing more opportunities to engage with potential buyers [1] - By connecting home search, agents, and financing, the partnership aims to simplify the digital homeownership experience [1] - The collaboration is designed to improve affordability in the housing market by increasing supply and reducing complexity for buyers [1]