Rocket beats earnings guidance with strongest quarterly profit in four years

Rocket Companies delivered its strongest quarterly financial performance in four years, reporting net revenue of $2.94 billion for the period ending March 31, up from $1.1 billion in the same quarter of 2025. Adjusted revenue reached $2.82 billion, surpassing the high end of the company’s guidance, while adjusted net income climbed to $422 million from $80 million a year earlier. CEO Varun Krishna attributed the results to strategic shifts in the company’s business model, including AI-driven innovations, a larger servicing portfolio, and recent acquisitions. The company’s adjusted EBITDA grew to $738 million, a significant increase from $169 million in Q1 2025, with margins expanding to 26%. Rocket generated $49.4 billion in total net rate lock volume and $44.7 billion in closed mortgage origination volume, with a gain-on-sale margin of 3.22% for retail loans. Servicing fee income exceeded $1 billion, supported by a portfolio of $2.1 trillion in unpaid principal balance across 9.4 million loans. Rocket Mortgage’s direct-to-consumer segment contributed $2.23 billion in total revenue, up from $793 million in the prior year. The company also highlighted its expanded origination capacity, now reaching up to $300 billion with fewer production team members than in 2024. This efficiency gain was achieved two years ahead of schedule, while actively reducing fixed costs through synergies. For Q2 2026, Rocket forecasted adjusted revenue between $2.7 billion and $2.9 billion. The company emphasized its ability to outperform in a volatile mortgage market, positioning itself as a leader in homeownership solutions. Integration efforts from recent acquisitions, including the acquisition of Mr. Cooper, were noted as key contributors to the quarter’s success. Total liquidity stood at $9.4 billion, including $2.7 billion in cash and cash equivalents, alongside access to $2.3 billion in undrawn lines of credit and $4.4 billion in available mortgage servicing rights. The company’s servicing portfolio drove 54% of refinance closings from existing service clients, underscoring its growing market share in both refinance and purchase mortgages.