Earnings

Rocket Swings To $709 Million Quarterly Profit As Mortgage Rates Hit A Three-Year High

Rocket posted net income of $709 million against a year-earlier loss, then guided fourth-quarter adjusted revenue lower, to $2.1 billion to $2.3 billion.

Matteo Parrino Jonathan Ponciano

Matteo Parrino, Jonathan Ponciano

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Rocket Swings To $709 Million Quarterly Profit As Mortgage Rates Hit A Three-Year High

Rocket Companies, the Detroit-based homeownership platform behind Rocket Mortgage and Redfin, earned $709 million in the third quarter, against a $124 million loss a year earlier, the company said Thursday. CEO Varun Krishna said the lender took market share even as mortgage rates climbed.

Revenue nearly doubles

Total revenue, net reached $3.28 billion, up from $1.695 billion in the third quarter of 2025. Diluted earnings were $0.25 per share, versus a loss of $0.06.

Stripping out items such as the change in value of mortgage servicing rights, adjusted net income was $419 million against $158 million, and adjusted earnings were $0.15 per share against $0.07. Adjusted EBITDA reached $748 million, up from $349 million.

Adjusted revenue was $2.57 billion. That is total revenue minus a $710 million change in the fair value of servicing rights and related liabilities, which the company calls a non-cash, non-realized adjustment. A year earlier the same adjustment ran the other way, at $178 million, and adjusted revenue was $1.87 billion.

Share gains as rates rise

"Rocket gained market share in both purchase and refinance, quarter over quarter and year over year, and delivered our highest profitability margin in nearly five years, even as mortgage rates climbed to a three-year high," Krishna said. He added: "Rates went up. We took share. Profits grew."

The company originated $43.6 billion in closed loans, with total gain on sale margin of 2.54%. Direct to Consumer produced $24.6 billion of that volume at a 4.31% margin. The servicing portfolio stood at $2.0 trillion of unpaid principal balance across 9.1 million loans at September 30, and the combined Rocket and legacy Mr. Cooper book reached its highest recapture levels to date.

Rocket also reports Redfin's contribution: visitors clicking to start a purchase mortgage on Redfin listings rose 50% from a year earlier, and Redfin's contribution to refinance leads more than doubled.

A lower fourth-quarter outlook

Rocket expects fourth-quarter adjusted revenue of $2.1 billion to $2.3 billion, below the third quarter's $2.57 billion. Yahoo Finance noted that adjusted revenue had slipped from the prior quarter as applications fell 23% from the second-quarter average.

Liquidity totaled $11.4 billion at September 30, including $2.7 billion in cash. Rocket, which runs mortgage, real estate and personal finance businesses including Rocket Close, Rocket Money and Rocket Loans, hosts its earnings call at 4:30 p.m. ET Thursday.

The full financial statements and notes will arrive in Rocket's forthcoming quarterly report on Form 10-Q.

Sources

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