Rocket Companies(US:RKT)2025-11-06 22:05Financial Performance - The net loss for the three months ended September 30, 2025, was $123.9 million, an improvement of $357.6 million compared to a net loss of $481.4 million in 2024[204]. - Adjusted EBITDA for the three months ended September 30, 2025, was $349.3 million, up 22.2% from $285.9 million in 2024[204]. - The net loss for the nine months ended September 30, 2025, was $302.2 million, a decrease of $289.4 million compared to a net loss of $12.8 million in 2024[205]. - Adjusted EBITDA for the nine months ended September 30, 2025, was $690.1 million, a slight increase from $685.0 million in 2024[205]. - Total revenue for the three months ended September 30, 2025, was $1.6 billion, compared to $646.9 million in 2024[213]. - Adjusted revenue for the three months ended September 30, 2025, was $1.78 billion, an increase from $1.32 billion in 2024[213]. - Total revenue for the nine months ended September 30, 2025, was $4.0 billion, an increase of 20% compared to $3.3 billion in 2024[237]. - Other income for the nine months ended September 30, 2025, was $1.2 billion, an increase of $389.7 million, or 48%, compared to $814.3 million in the same period of 2024[258]. Loan Origination and Mortgage Activity - The company originated $32.4 billion in residential mortgage loans for the three months ended September 30, 2025, a 14% increase from $28.5 billion in 2024[204]. - For the nine months ended September 30, 2025, the company originated $83.1 billion in residential mortgage loans, a 13% increase from $73.4 billion in 2024[205]. - Closed loan origination volume for the three months ended September 30, 2025, was $32,412,828 thousand, an increase from $28,495,976 thousand in 2024[219]. - Total loans closed by Rocket Loans for the three months ended September 30, 2025, was 22.9 thousand, compared to 10.2 thousand in 2024[221]. Acquisition and Integration - The company completed the all-stock acquisition of Mr. Cooper on October 1, 2025, and Redfin on July 1, 2025, with integration efforts proceeding as expected[203]. - Goodwill was recorded based on the preliminary fair value of net assets acquired from the Redfin acquisition, with adjustments possible within one year[298]. Expenses and Profitability - Total expenses for the three months ended September 30, 2025, were $1.8 billion, an increase of 56% compared to $1.1 billion in 2024[237]. - Salaries, commissions, and team member benefits for Q3 2025 were $874.8 million, an increase of $267.2 million, or 44%, compared to $607.5 million in Q3 2024[261]. - Directly attributable expenses for Direct to Consumer were $683.8 million, an increase of $132.5 million, or 24%, compared to $551.2 million in 2024, primarily driven by higher variable compensation and performance marketing[268]. Market Conditions - The 30-year fixed mortgage rate decreased to approximately 6.3% by the end of the quarter, contributing to increased refinance activity[202]. - The weighted average loan rate increased to 4.52% in Q3 2025 from 4.18% in Q3 2024, while the weighted average LTV rose to 72.04% from 71.77%[247]. Liquidity and Capital Structure - Total liquidity as of September 30, 2025, was $9.3 billion, including $5.8 billion in cash and cash equivalents[287]. - The company completed the restructuring of approximately $5.0 billion of legacy unsecured debt, enhancing its liquidity position[287]. - As of September 30, 2025, cash and cash equivalents increased to $5.9 billion, up $4.6 billion from $1.2 billion as of September 30, 2024, primarily due to a $4.0 billion senior notes offering[290]. - Equity rose to $8.9 billion as of September 30, 2025, an increase of $0.5 billion or 6% compared to $8.4 billion as of September 30, 2024, driven by a $1.5 billion increase from the Redfin acquisition[291]. Tax and Compliance - The company paid tax distributions totaling $113.8 million during the nine months ended September 30, 2025, compared to no material distributions in the same period of 2024[292]. - The company was in compliance with all financial covenants as of September 30, 2025, and December 31, 2024[289].