Rocket Companies(RKT) - 2024 Q2 - Quarterly Report

Financial Performance - Net income for the same period was $177.9 million, reflecting a 28$139.2 million in the prior year[144]. - Adjusted EBITDA for the three months ended June 30, 2024, was $224.8 million, a significant increase from$18.2 million in the same period in 2023[144]. - The net income for the six months ended June 30, 2024, was $468.6 million, a turnaround from a net loss of$272.3 million in the same period in 2023[145]. - Adjusted EBITDA for the six months ended June 30, 2024, was $399.1 million, compared to an Adjusted EBITDA loss of$60.8 million in the same period in 2023[145]. - The company reported total revenue of $1,300.7 million for the three months ended June 30, 2024, compared to$1,236.2 million in the same period in 2023[154]. - Adjusted revenue for the three months ended June 30, 2024, was $1,228.2 million, up from$1,001.7 million in the same period in 2023[154]. - The company’s adjusted net income for the three months ended June 30, 2024, was $121.0 million, compared to a loss of$33.0 million in the same period in 2023[155]. - Net income attributable to Rocket Companies for the three months ended June 30, 2024, was $1,295 million, compared to a loss of$7,438 million for the same period in 2023[157]. - Adjusted net income for the six months ended June 30, 2024, was $204,575 million, a significant improvement from a loss of$143,624 million in the same period of 2023[160]. Loan Origination and Servicing - The company originated $24.7 billion in residential mortgage loans for the three months ended June 30, 2024, a 10$22.3 billion in the same period in 2023[144]. - For the six months ended June 30, 2024, the company originated $44.9 billion in residential mortgage loans, a 14$39.3 billion in the same period in 2023[145]. - Closed loan origination volume for the three months ended June 30, 2024, reached $24,661,690 million, up from$22,330,333 million in 2023, representing an increase of approximately 10.4%[164]. - The total serviced UPB (unpaid principal balance) for loans, including subserviced, was $534,557,627 million as of June 30, 2024, compared to$503,693,198 million in 2023, indicating growth of about 6.1%[164]. - The number of MSRs (mortgage servicing rights) loans serviced increased to 2,459.5 thousand as of June 30, 2024, from 2,312.6 thousand in 2023, representing a growth of about 6.4%[164]. - The total serviced UPB as of June 2024 was $534.6 billion, an increase from$503.7 billion in June 2023[196]. - The total serviced delinquency count (60+) as a percentage of total loans was 1.26% in June 2024, compared to 1.10% in June 2023[196]. Revenue and Income Sources - Gain on sale of loans, net for Q2 2024 was $758,556, up 27.7$594,469 in Q2 2023[185]. - Loan servicing fee income for Q2 2024 was $354,677, slightly up from$343,591 in Q2 2023[185]. - Interest income, net increased to $31,122 in Q2 2024 from$21,245 in Q2 2023, representing a 46.5% increase[185]. - Other income for Q2 2024 was $269,308, up from$234,545 in Q2 2023[185]. - Interest income, net for the six months ended June 30, 2024, was $68.7 million, an increase of$15.8 million, or 30%, compared to $52.9 million for the same period in 2023[201]. - Direct to Consumer Adjusted revenue for the three months ended June 30, 2024, was$908.8 million, an increase of $120.1 million, or 15$788.7 million for the same period in 2023[213]. - Partner Network Adjusted revenue for Q2 2024 was $187.8 million, an increase of$65.3 million, or 53%, compared to $122.5 million in Q2 2023, primarily driven by Gain on sale[216]. Expenses and Financial Health - Total expenses for Q2 2024 were$1,108,680, a marginal increase from $1,097,857 in Q2 2023[185]. - Total expenses for the three months ended June 30, 2024, were$1.1 billion, flat compared to the same period in 2023, with general and administrative expenses increasing by $32.5 million, or 16$417.2 million, an increase of $16.8 million, or 4$400.4 million for the same period in 2023[207]. - Salaries, commissions, and team member benefits for Q2 2024 were $553,420, down from$579,139 in Q2 2023[185]. Liquidity and Capital Structure - Total liquidity as of June 30, 2024, was $8.6 billion, including$1.3 billion in cash and cash equivalents[224]. - Equity increased to $8.8 billion as of June 30, 2024, up by$449.1 million, or 5%, compared to $8.4 billion as of June 30, 2023[227]. - Cash and cash equivalents increased by$419.5 million, or 46%, to $1.3 billion as of June 30, 2024, compared to$917.8 million a year earlier[226]. - The company had 17 different funding and financing facilities with an aggregate available amount of $22.6 billion as of June 30, 2024[221]. - The company was in compliance with all financial covenants as of June 30, 2024[225].