Rocket Companies reported its fourth‑quarter and full‑year 2025 results, delivering adjusted revenue of $2.44 billion—an increase of 105.6% year‑over‑year—and adjusted earnings per share of $0.11, both surpassing analyst expectations.
Total revenue reached $2.69 billion, up 52% from the same period a year earlier, while GAAP net income swung to $68 million from a $234 million loss in the prior year. In the preceding quarter, Q3 2025 adjusted revenue was $1.78 billion and adjusted EPS was $0.07, underscoring the acceleration in performance.
The revenue surge was driven by nearly $50 billion in loan volume, a 63% jump in loan volume, and higher mortgage attach rates following the Redfin partnership. The Mr. Cooper servicing book also delivered early recapture opportunities, and a reclassification of warehouse interest on loans held for sale increased reported revenue and expense without affecting net income or cash flow.
Adjusted EBITDA margin expanded from 20% to 24% in Q4 2025, and the full‑year margin rose to 19% from 18% in 2024, reflecting pricing power and AI‑driven operating leverage. CFO Brian Brown highlighted $42 billion in net rate lock volume as a key driver of profitability.
Guidance for the first quarter of 2026 projects adjusted revenue of $2.60 billion to $2.80 billion, well above the consensus estimate of $2.37 billion, signaling management’s confidence in continued growth. CEO Varun Krishna emphasized the company’s integrated home‑ownership ecosystem and the AI‑powered “infinite capacity” model as the foundation for this confidence.
Rocket also announced a three‑year strategic alliance with Compass International Holdings, expanding housing inventory and distribution channels. Purchase market share climbed to 5.5% from 3.8% in 2024, underscoring competitive gains.
The results and forward outlook demonstrate strong execution, AI‑enabled scalability, and a growing market share, positioning Rocket for continued expansion in its integrated home‑ownership platform.
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