Investor Presentation May 2025 Investor Presentation | May 2025 1 of 38 Disclaimer This presentation contains and related discussions may contain "forward-looking statements" within the meaning of U.S. federal securities laws. Forward-looking statements include information concerning possible or assumed future results of operations, Rocket Companies, Inc.'s (the "Company") business plans and strategies, the Company's ability to cross-sell and up-sell the Company's products, the Company's proposed acquisitio ...

Rocket Companies (RKT) Q1 2025 Earnings Call May 08, 2025 04:30 PM ET Company Participants Sharon Ng - VP of IRVarun Krishna - Chief Executive OfficerBrian Brown - CFO & TreasurerRyan Nash - Managing Director - Regional Banks & Consumer FinanceMark Devries - DirectorBose George - Managing DirectorJeff Adelson - Executive Director Conference Call Participants Douglas Harter - Equity Research AnalystMihir Bhatia - Equity Research Analyst Operator Thank you for standing by, and welcome to The Rocket Company's ...

Rocket Companies (RKT) Q1 2025 Earnings Call May 08, 2025 04:30 PM ET Speaker0 Thank you for standing by, and welcome to The Rocket Company's First Quarter twenty twenty five Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question and answer session. Thank you. I'd now like to turn the call over to Sharon Ng, Head of Investor Relations. You may begin. Speaker1 Good afternoon, everyone, and thank you for joining us fo ...

Financial Data and Key Metrics Changes - In Q1 2025, the company reported revenue of $613 million and a net loss of $247 million, which included a $388 million reduction in the fair value of the MSR portfolio [14][10] - The adjusted EBITDA for the quarter was $58 million, with a gain margin of 94 basis points [14][10] - The company experienced a 17% year-over-year growth in production, closing $32.4 billion for the quarter [9][14] Business Line Data and Key Metrics Changes - The company originated over $20 billion in purchase volume for eight consecutive quarters, viewing this as a stable base [15] - Refinance volume nearly doubled year-over-year from $5.5 billion to $10.6 billion, despite a challenging rate environment [15][9] Market Data and Key Metrics Changes - The mortgage brokerage channel's share of the industry increased from approximately 19.7% to nearly 28% since 2022, marking the highest level since February 2008 [5][6] - The company maintained a strong liquidity position with $485 million in cash and $2.4 billion in total accessible liquidity as of the end of Q1 2025 [16] Company Strategy and Development Direction - The company announced a strategic decision to bring servicing in-house, aiming to leverage technology and AI for efficiency, with expected cost savings between $40 million and $100 million annually [7][8] - The focus remains on investing in technology to maintain a competitive edge, with plans to roll out significant technological advancements in the near future [19][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate a volatile market, highlighting operational excellence that allowed for increased production without sacrificing quality [8][12] - The company anticipates Q2 production between $38 billion and $45 billion, with expectations to exceed $40 billion, driven by a strong purchase market [23][50] Other Important Information - The company plans to maintain its dividend of $0.40 per share, rewarding shareholders consistently over the past four years [21] - Management emphasized the importance of controlling the MSR process, which may lead to retaining more MSRs in the future [39][41] Q&A Session Summary Question: Timeline and costs for bringing servicing in-house - Management expects to start boarding loans in early 2026 and complete the transition by the end of next year, with no significant one-time costs anticipated [28][30] Question: Future of ARMs in the market - Management noted that while ARMs may become more appealing as rates rise, they do not expect a significant shift in consumer preference towards ARMs [32][34] Question: Impact of bringing servicing in-house on MSR disposal - Management indicated that bringing servicing in-house could lead to retaining more MSRs, allowing for better control and value capture [39][41] Question: GSE reform and market preparation - Management believes that potential GSE reforms are far off and expressed confidence in the current leadership in the mortgage market [42][44] Question: Second quarter outlook and competition - Management is optimistic about exceeding $40 billion in production, attributing this to investments and a strong broker channel [50][51] Question: Technology investments and expense impact - Management confirmed that while expenses may rise due to investments, revenue is also expected to increase, leading to a favorable outcome [62][65] Question: Leverage and financial ratios - Management emphasized that financial ratios are in a strong position and that the focus should be on business dominance rather than specific leverage metrics [71][72]

UWM (UWMC) Q1 2025 Earnings Call May 06, 2025 10:00 AM ET Speaker0 Good morning. My name is Abby, and I'll be your conference operator today. At this time, I would like to welcome everyone to the UWM Holdings Corporation First Quarter twenty twenty five Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question and answer session. Thank you. And Mr. Blake Kolo, you may begin your conference. Speaker1 Good morning. This ...

Financial Data and Key Metrics Changes - For the full year 2024, the company achieved $3.6 billion in funded loan volume, $108 million in revenue, and an adjusted EBITDA loss of $121 million, with a year-over-year revenue growth of 50% and a 19% increase in funded loan volume [8][9] - In Q4 2024, funded loan volume was $936 million, representing a 77% year-over-year increase, although it decreased approximately 10% sequentially due to seasonal factors [8][11] - The adjusted EBITDA loss in Q4 was $28 million, with total GAAP net loss around $59 million [46][47] Business Line Data and Key Metrics Changes - Funded loan volume growth in Q4 was driven by home equity products and refinance loans, with purchase loan volume increasing by 25% and refinance loan volume surging by 611% year-over-year [10][11] - The company reported a gain on sale margin improvement from 1.95% in 2023 to 2.17% in 2024, indicating enhanced revenue per loan through pricing and marketing optimization [9][10] Market Data and Key Metrics Changes - The overall HELOC and HELOAN originations increased by 10% in the third quarter, while the company’s origination volume grew by 619%, indicating significant market outperformance [10] - The mortgage market saw improvements in Q4 compared to the same period in 2023, but 30-year fixed mortgage rates remained high, impacting mortgage demand [11] Company Strategy and Development Direction - The company aims to leverage AI and technology to enhance operational efficiency, reduce costs, and improve customer experience, with a focus on achieving profitability in the medium term [6][8][45] - The strategic priorities include continuing to grow the business, diversifying distribution channels, and enhancing the technology platform to streamline the mortgage process [8][33] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by low housing affordability and high mortgage rates but expressed optimism about the company's growth trajectory and market share gains [8][11] - The outlook for 2025 anticipates funded loan volume growth in the low to mid double digits, driven by initiatives like Neo powered by Better, despite macroeconomic headwinds [49][50] Other Important Information - The company is winding down its UK businesses, which contributed to lower volume in Q4, and expects to fully exit this segment by Q2 2025 [34][48] - The introduction of Betsy, an AI voice-based loan assistant, has significantly improved customer interaction efficiency, with a 20x increase in customer interactions since its launch [14][27] Q&A Session Summary Question: How does the AI technology adjust for high property insurance costs? - Management explained that their AI system integrates multiple data sources to provide instant homeowners insurance quotes during the loan process, significantly reducing the need for manual intervention [54] Question: How does profitability affect risk-taking? - Management clarified that they operate a marketplace model, ensuring loans are pre-committed to investors before origination, thus minimizing risk while focusing on efficiency and cost reduction to achieve profitability [58][62] Question: Can you elaborate on savings opportunities from Tin Man's AI application? - Management highlighted that AI-driven processes have reduced operational costs significantly, with potential savings of $2,000 per funded loan and $1,400 for AI-underwritten loans, contributing to improved margins [72][73] Question: How are gain on sale margins trending in Q1? - Management reported that gain on sale margins are trending higher in Q1, particularly with Neo loans performing better than the direct-to-consumer business, indicating improved efficiency and customer conversion [80][82] Question: Can you contextualize contribution profit per loan? - Management indicated that contribution margins have been improving, and they are focused on reducing costs in the mortgage business to enhance profitability while maintaining a balance with corporate cost reductions [93][94]