Rocket Companies Announces First Quarter 2025 Results DETROIT, May 8, 2025 – Rocket Companies, Inc. (NYSE: RKT) ("Rocket Companies" or the "Company"), the Detroit- based fintech platform company including mortgage, real estate, title and personal finance businesses, today announced results for the first quarter ended March 31, 2025. "We entered 2025 with strength, delivering $1.3 billion in adjusted revenue, at the high end of our guidance range in the first quarter. This demonstrates the power of the Rocke ...

Core Insights - Rocket Companies reported strong first-quarter results for 2025, achieving $1.3 billion in adjusted revenue, which is at the high end of their guidance range [2][5][6] - The company is focused on integrating home search, origination, and servicing into a single platform to enhance the homeownership experience [2][5] Financial Summary - Total revenue for Q1 2025 was $1.037 billion, down from $1.384 billion in Q1 2024 [3][5] - Total expenses increased to $1.260 billion from $1.085 billion year-over-year [3][5] - GAAP net loss for Q1 2025 was $212 million, compared to a net income of $291 million in Q1 2024 [3][5] - Adjusted net income was $80 million, slightly down from $84 million in the previous year [3][5] - Adjusted EBITDA for the quarter was $169 million, down from $174 million in Q1 2024 [3][5] Key Metrics - Mortgage closed loan origination volume reached $21.6 billion, a 7% increase from $20.2 billion in Q1 2024 [6] - Net rate lock volume was $26.1 billion, a 17% increase compared to $22.4 billion in the same period last year [6] - Gain on sale margin decreased to 2.89%, down 22 basis points from 3.11% in Q1 2024 [6] Liquidity and Capital Structure - Total liquidity as of March 31, 2025, was $8.1 billion, including $1.4 billion in cash and $1.5 billion in corporate cash for loan originations [6][15] - The company announced a special cash dividend of $0.80 per share following the simplification of its capital structure [6] Strategic Initiatives - Rocket Companies announced an all-stock acquisition of Redfin Corporation for $1.75 billion, expected to close in Q2 or Q3 2025 [6] - The company also plans to acquire Mr. Cooper Group Inc. for $9.4 billion, with the transaction anticipated to close in Q4 2025 [6] - New product offerings include Rocket Mortgage RentRewards and a 1-0 Rate Break Buy Down to support homebuyers [6] Community Engagement - The Rocket Community Fund launched a digital inclusion initiative to provide technology training and internet access to Detroit residents [8]

Industry Overview - The Zacks Mortgage & Related Services industry is facing challenges due to uncertainty in the mortgage market, primarily driven by macroeconomic factors and relatively high mortgage rates, which are expected to limit growth in origination volume and refinance activity [1][4] - The industry comprises providers of mortgage-related loans, refinancing, and loan-servicing facilities, with non-banks gaining market share as banks retreat from the mortgage business due to higher compliance and capital requirements [2] Current Trends - Mortgage rates have recently been stable in the mid-6% range, influenced by economic uncertainties, which has kept many homebuyers from entering the market, thereby affecting mortgage demand and origination [3] - The U.S. single-family mortgage debt outstanding is projected to reach $14.7 trillion by the end of 2025, indicating significant growth opportunities in the servicing segment, which is expected to provide a hedge against declining origination volumes [6] Competitive Landscape - The competitive environment in the mortgage services industry is intensifying, with tighter margins and high competition potentially leading to profitability challenges for many originators [5] - The industry's Zacks Industry Rank is 206, placing it in the bottom 16% of over 246 Zacks industries, reflecting bleak near-term prospects [7][8] Financial Performance - The Zacks Mortgage & Related Services industry has underperformed compared to the broader Zacks Finance sector and the S&P 500, declining by 4.1% over the past year, while the finance sector grew by 18.1% and the S&P 500 rose by 9.8% [10] - The industry currently trades at a price-to-book ratio of 3.77X, which is lower than the S&P 500's 6.99X, indicating a premium valuation compared to the broader finance sector [13][15] Company Highlights - Rocket Companies has seen an 8% year-over-year growth in purchase market share and plans to acquire Mr. Cooper Group in a deal valued at $9.4 billion, which will enhance its homeownership platform [19][20] - LendingTree is diversifying its offerings beyond mortgages, focusing on improving purchase conversion rates and expanding into consumer products, with a Zacks Consensus Estimate for 2025 earnings at $3.85 per share, reflecting a 20.7% increase from the previous year [24][27]

Core Viewpoint - Rocket Companies (RKT) stock has surged over +35% in 2025, driven by plans to acquire Redfin (RDFN) and Mr. Cooper Group (COOP), creating a comprehensive homeownership experience [1][4][5] Group 1: Acquisitions - Rocket Companies plans to acquire Redfin in an all-stock transaction valued at $1.75 billion, with Redfin's stock priced at $12.50 per share [4] - The acquisition of Mr. Cooper Group, valued at $9.4 billion with a stock price of $143 per share, will expand Rocket Companies' customer base and enhance its mortgage services [5] - The merger will result in a combined mortgage portfolio exceeding $2 trillion, serving nearly 10 million customers [6] Group 2: Financial Outlook - Total sales for Rocket Companies are projected to increase by 13% in fiscal 2025 and by another 21% in FY26, reaching $7.11 billion [7] - The acquisitions are expected to contribute over $3 billion in annual revenue [7] - Annual earnings are anticipated to double to $0.46 per share in 2025, compared to $0.23 in 2024, with FY26 EPS projected to rise by 69% to $0.78 [7][8] Group 3: Balance Sheet - Rocket Companies holds $1.28 billion in cash and equivalents, with total assets of $24.51 billion, significantly exceeding total liabilities of $15.46 billion, which includes $10.84 billion in long-term debt [9] Group 4: Market Sentiment - The potential for further rate cuts has increased optimism for mortgage service providers, with Rocket Companies being a market bellwether amid broader market declines [2] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential long-term value creation through the acquisitions, although better buying opportunities may arise after the recent rally [10]

Rocket Companies (RKT) shares rallied 10% in the last trading session to close at $13.86. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 6.3% loss over the past four weeks.Shares of RKT have been surging for two consecutive trading sessions, fueled by a major acquisition announcement. On Monday, the company revealed plans to acquire Mr. Cooper Group (COOP) for $9.4 billion. The news triggered a wave of bulli ...

Shares of Rocket Companies (RKT 12.94%) are soaring on Wednesday. The mortgage company's stock gained 11.3% as of 11:50 a.m. ET and was up as much as 15.7% earlier in the day. The jump comes as the S&P 500 and Nasdaq Composite showed modest gains.A major Wall Street bank upgraded the stock following a recent acquisition announcement.Deutsche Bank says it's a buyDeutsche Bank analyst Mark DeVries gave Rocket a boost, upgrading the stock from a hold to a buy and raising his price target to $16 from $14. DeVri ...

Trying to gain market share Shares of the mortgage giant Rocket Companies (RKT -9.86%) were trading about 8% lower at 11:48 a.m. ET today, after the company announced plans to acquire the large mortgage servicing company Mr. Cooper Group. Offering additional revenue diversity While Rocket currently makes the bulk of its revenue from originating mortgages, a business that doesn't perform as well when interest rates are high, Mr. Cooper Group makes the bulk of its revenue from servicing mortgages. This busine ...

Better home inventory and recent declines in long-term bond yields are bringing back potential buyers to the housing market after years of struggle due to high interest rates and prices. Earlier this month, Rocket acquired real estate listing firm Redfin in an all-stock deal valued at $1.75 billion. Rocket Cos. said Monday it would buy home loan service provider Mr. Cooper Group for $9.4 billion, boosting its mortgages business in its second big deal this month to take advantage of a rebound in U.S. housing ...

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Group 1: Beacon Roofing Supply, Inc. - Beacon Roofing Supply will be acquired by QXO, Inc. for $124.35 per share in cash at closing [2] - The investigation focuses on whether the Beacon Roofing Supply Board breached its fiduciary duties by failing to conduct a fair process and whether shareholders are receiving fair value for their shares [2] Group 2: Optinose, Inc. - Optinose will be acquired by Paratek Pharmaceuticals for $9.00 per share in cash, plus up to $5.00 per share in contingent value rights (CVRs) based on achieving certain net revenue milestones [4] - The investigation concerns potential breaches of fiduciary duties by the Optinose Board regarding the fairness of the acquisition process and shareholder value [4] Group 3: Redfin Corporation - Redfin will be acquired by Rocket Companies, with each share of Redfin common stock exchanged for a fixed ratio of 0.7926 shares of Rocket Companies Class A common stock, valued at approximately $12.50 per share [6] - The investigation examines whether the Redfin Board breached its fiduciary duties by failing to ensure a fair process and the impact of dilution on shareholders [6] Group 4: Blackboxstocks Inc. - Blackboxstocks will be acquired by REalloys Inc., with stockholders expected to own approximately 7.3% of the combined company's shares upon closing [8] - The investigation looks into whether the Blackboxstocks Board breached its fiduciary duties by not conducting a fair process and the implications of dilution for shareholders [8]