Rocket Companies(RKT) - 2025 Q3 - Quarterly Results

Financial Performance - Generated total revenue of $1.61 billion in Q3 2025, a significant increase from $647 million in Q3 2024, with adjusted revenue reaching $1.78 billion[5] - Reported a GAAP net loss of $124 million in Q3 2025, compared to a loss of $481 million in Q3 2024, with adjusted net income of $158 million[5] - Adjusted EBITDA for Q3 2025 was $349 million, up from $286 million in Q3 2024[5] - Total revenue for the three months ended September 30, 2025, was $1,605 million, a significant increase from $647 million in the same period of 2024, representing a growth of approximately 147%[24] - Adjusted revenue for the nine months ended September 30, 2025, reached $4,419 million, compared to $3,714 million in 2024, reflecting an increase of about 19%[29] - The net loss attributable to Rocket Companies for the three months ended September 30, 2025, was $123.854 million, compared to a net loss of $22.011 million in the same period of 2024[24] - Adjusted net income for the three months ended September 30, 2025, was $158 million, down from $166 million in 2024, reflecting a decrease of approximately 4.8%[31] - The net loss attributable to Rocket Companies for the nine months ended September 30, 2025, was $136 million, compared to a net loss of $5 million for the same period in 2024[31] Liquidity and Assets - Total liquidity as of September 30, 2025, was $9.3 billion, including $5.8 billion in cash and $1.1 billion in undrawn lines of credit[8] - Cash and cash equivalents increased to $5.8 billion as of September 30, 2025, compared to $1.3 billion at the end of 2024[20] - Total assets increased to $33,576.128 million as of September 30, 2025, up from $24,510.063 million as of December 31, 2024, marking a growth of approximately 37%[26] - Total liabilities as of September 30, 2025, were $24,724.665 million, compared to $15,466.683 million at the end of 2024, representing an increase of about 60%[26] Mortgage Operations - Closed mortgage loan origination volume was $32.4 billion, representing a 14% increase year-over-year, while net mortgage rate lock volume increased by 20% to $35.8 billion[8] - The servicing portfolio's unpaid principal balance was $613 billion, generating approximately $1.7 billion in annual recurring servicing fee income[8] - The fair value of originated mortgage servicing rights (MSRs) was $385.692 million for the three months ended September 30, 2025, compared to $337.702 million in 2024, reflecting an increase of about 14%[24] - The change in fair value of mortgage servicing rights (MSRs) due to valuation assumptions for the three months ended September 30, 2025, was $177 million, compared to $676 million in 2024[38] Marketing and Client Engagement - The company’s marketing and advertising expenses for the three months ended September 30, 2025, were $274.273 million, an increase from $200.528 million in the same period of 2024, representing a growth of approximately 37%[24] - Rocket Companies processes over 160 million client calls annually, leveraging 30 petabytes of data to enhance homeownership experiences[50] - J.D. Power has ranked Rocket Mortgage 1 in client satisfaction for primary mortgage origination and servicing 23 times, the highest among mortgage lenders[50] Acquisition and Technology - The acquisition of Mr. Cooper Group was completed on October 1, 2025, marking the largest independent mortgage company deal in history[9] - Launched several AI-powered tools in Q3 2025, including the Pipeline Manager Agent and Purchase Agreement AI Agent, which improved processing efficiency and client engagement[9] Tax and Earnings Per Share - The effective income tax rate for the three months ended September 30, 2025, was 24.80%, compared to 24.40% for the same period in 2024[32] - Adjusted diluted earnings per share for the three months ended September 30, 2025, was $0.07, a decrease from $0.08 in 2024[35] - The diluted weighted average shares outstanding for the three months ended September 30, 2025, was 2,106,227,188, compared to 2,003,296,515 in 2024, indicating an increase of approximately 5.1%[35] Other Financial Metrics - The company is not providing a quantitative reconciliation of adjusted revenue to the most directly comparable GAAP measure due to future uncertainties[46] - Acquisition-related expenses for the three months ended September 30, 2025, amounted to $96 million, while there were no such expenses reported in the same period of 2024[38]