Rocket Companies(US:RKT)2025-05-09 20:10Financial Performance - The net loss for the period was $212.4 million, a decrease of $503.2 million compared to a net income of $290.7 million in 2024[198]. - Adjusted EBITDA for the period was $169.0 million, down $5.3 million from $174.3 million in 2024[198]. - Total revenue, net for the three months ended March 31, 2025, was $1,037.3 million, compared to $1,383.7 million in 2024[205]. - Adjusted revenue increased to $1,296.3 million in Q1 2025 from $1,163.2 million in Q1 2024[205]. - Total revenue for the three months ended March 31, 2025, was $1,037,264,000, a decrease from $1,383,716,000 in 2024, representing a decline of approximately 25%[232]. - The adjusted EBITDA for the three months ended March 31, 2025, was $168,966,000, slightly down from $174,278,000 in 2024[212]. - Total expenses for Q1 2025 were $1.26 billion, an increase of $175 million, or 16%, compared to $1.09 billion in Q1 2024, primarily due to higher marketing and salaries expenses[249]. Loan Origination and Servicing - The company originated $21.6 billion in residential mortgage loans for the three months ended March 31, 2025, representing a 7% increase from $20.2 billion in 2024[198]. - Closed loan origination volume increased to $21,584,355,000 in 2025 from $20,205,236,000 in 2024, marking an increase of about 6.8%[215]. - Total mortgage closed loan origination volume for Q1 2025 was $21.58 billion, an increase of $1.38 billion, or 6.8%, compared to $20.21 billion in Q1 2024[234]. - The servicing portfolio's total serviced UPB rose to $600,387,274,000 in 2025 from $510,697,615,000 in 2024, reflecting an increase of approximately 17.5%[215]. - The total loans serviced increased to 2,796.7 thousand in 2025 from 2,474.5 thousand in 2024, an increase of approximately 13%[215]. - The number of MSR loans serviced increased to 2,598,101 in Q1 2025, up from 2,373,612 in Q1 2024, reflecting growth in the servicing portfolio[242]. Gains and Losses - The gain on sale of loans, net, was $771,626,000 for the three months ended March 31, 2025, compared to $699,226,000 in 2024, indicating an increase of about 10.3%[232]. - Gain on sale of loans, net for Q1 2025 was $771.6 million, an increase of $72.4 million, or 10%, compared to $699.2 million in Q1 2024[237]. - Loan servicing loss, net was $48.5 million in Q1 2025, a decrease of $450.7 million compared to $402.3 million in loan servicing income, net in Q1 2024[243]. - Gain on sale of loans, net increased $119.4 million, or 22%, due to an increase in net rate lock volume during the current period[254]. - Gain on sale of loans, net for Partner Network decreased $53.7 million, or 36%, due to lower gain on sale margin[258]. Marketing and Advertising - The marketing and advertising expenses increased to $275,623,000 in 2025 from $206,296,000 in 2024, a rise of about 33.5%[232]. - Directly attributable expenses for Direct to Consumer were $610.1 million, an increase of $80.3 million, or 15%, compared to $529.8 million in 2024[255]. Tax and Interest - The effective income tax rate for adjusted net loss income was 24.32% for Q1 2025, compared to 24.40% in 2024[208]. - Interest income, net decreased to $28.1 million in Q1 2025, down $9.5 million, or 25%, from $37.5 million in Q1 2024 due to higher interest expenses[245]. - The weighted average loan rate for Q1 2025 was 4.32%, compared to 3.80% in Q1 2024, indicating a rise in borrowing costs[242]. Acquisitions and Corporate Strategy - The company entered into agreements to acquire Redfin and Mr. Cooper in all-stock transactions, expected to be completed in 2025[197]. - The company is focused on integrating its acquisitions and simplifying its organizational structure through the Up-C Collapse[197]. Liquidity and Equity - Total liquidity was $8.1 billion as of March 31, 2025, which includes $1.4 billion of cash and cash equivalents[268]. - Cash and cash equivalents increased by $535.2 million, or 60%, to $1.4 billion as of March 31, 2025, compared to $893.4 million as of March 31, 2024[270]. - Equity was $8.6 billion as of March 31, 2025, a decrease of $25.8 million, or 0.3%, compared to $8.6 billion as of March 31, 2024[271]. Other Income - Other income increased to $286.1 million in Q1 2025, up $41.4 million, or 17%, compared to $244.7 million in Q1 2024, driven by a 41% increase in Rocket Money revenue[247].