# Rocket Companies (RKT) Q2 2025 Financial Results Summary
Detroit, July 31, 2025 – Rocket Companies, Inc. (NYSE: RKT) announced its financial results for the second quarter ended June 30, 2025. Here is a summary of the key highlights:
### Financial Performance
– **Total revenue (net)**: $1.36 billion, an increase of **4.5%** from $1.30 billion in Q2’24.
– **Adjusted revenue**: $1.34 billion, exceeding the high end of guidance; this represents an increase of **9.1%** compared to $1.23 billion in Q2’24.
– **GAAP net income**: $34 million, a decrease of **81.0%** from $178 million in Q2’24.
– **Adjusted net income**: $75 million, down **38.0%** from $121 million in Q2’24.
– **Adjusted EBITDA**: $172 million, a decrease of **23.6%** from $225 million in Q2’24.
– **GAAP diluted loss per share**: $(0.01) versus earnings of $0.01 in Q2’24.
– **Adjusted diluted earnings per share**: $0.04, a decrease of **33.3%** from $0.06 in Q2’24.
### Operational Highlights
– **Mortgage closed loan origination volume**: $29.06 billion, an increase of **18.0%** from $24.66 billion in Q2’24.
– **Net rate lock volume**: $28.43 billion, up **13.2%** from $25.05 billion in Q2’24.
– **Gain on sale margin**: 2.80%, a decrease of **19 basis points** from 2.99% in Q2’24.
### Liquidity Position
– **Total liquidity**: $9.1 billion as of June 30, 2025, which includes:
– **Cash**: $5.1 billion
– **Corporate cash for self-funding**: $0.9 billion
– **Undrawn lines of credit**: $3.1 billion
### Shareholder Actions
– The company did not declare a quarterly dividend during this quarter.
– Specific details regarding share repurchase programs were not mentioned in the report.
### Developments and Innovations
– Rocket Mortgage implemented a full digital refinancing journey allowing clients to complete processes online in under 30 minutes.
– New AI-powered enhancements in the banking communication platform increased client follow-ups by **20%**.
– Launched a bridge loan product aimed at improving home-buying competitiveness.
– Introduced Rocket Preferred Pricing for clients who engage with Redfin agents, which reduces interest rates for the first year.
### Acquisitions and Business Strategy
– Completed an all-stock acquisition of Redfin Corporation on July 1, 2025, enhancing Rocket’s market reach.
– Initiated the wind-down of various strategic initiatives, including shutting down Rocket Mortgage Canada operations.
### Recognition
– Awarded #1 ranking in client satisfaction for mortgage servicing by J.D. Power for an 11th consecutive time.
### Future Outlook
– For Q3 2025, Rocket Companies expects adjusted revenue between $1.600 billion to $1.750 billion, incorporating a full quarter of consolidated financial results from Redfin.
This summary provides a concise overview of Rocket Companies’ financial performance and strategic initiatives for Q2 2025, reflecting both operational successes and challenges.
### Condensed Consolidated Statements of Income (Loss)
($ In Thousands, Except Per Share Amounts)
| Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | |
|---|---|---|---|---|
| Revenue | ||||
| Gain on sale of loans | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) |
| Gain on sale of loans excluding fair value of originated MSRs, net | $472,375 | $413,011 | $979,574 | $889,440 |
| Fair value of originated MSRs | 343,525 | 345,545 | 607,952 | 568,342 |
| Gain on sale of loans, net | 815,900 | 758,556 | 1,587,526 | 1,457,782 |
| Loan servicing income | ||||
| Servicing fee income | 401,276 | 354,677 | 801,973 | 700,423 |
| Change in fair value of MSRs | -198,885 | -112,941 | -648,070 | -56,433 |
| Loan servicing income, net | 202,391 | 241,736 | 153,903 | 643,990 |
| Interest income | ||||
| Interest income | 123,502 | 112,415 | 215,592 | 201,395 |
| Interest expense on funding facilities | -90,879 | -81,293 | -154,918 | -132,736 |
| Interest income, net | 32,623 | 31,122 | 60,674 | 68,659 |
| Other income | 309,337 | 269,308 | 595,412 | 514,007 |
| Total revenue, net | 1,360,251 | 1,300,722 | 2,397,515 | 2,684,438 |
| Expenses | ||||
| Salaries, commissions and team member benefits | 623,459 | 553,420 | 1,233,067 | 1,094,516 |
| General and administrative expenses | 287,421 | 232,952 | 548,236 | 469,617 |
| Marketing and advertising expenses | 276,050 | 210,937 | 551,673 | 417,233 |
| Depreciation and amortization | 27,526 | 28,009 | 54,436 | 55,026 |
| Interest and amortization expense on non-funding debt | 57,718 | 38,364 | 96,005 | 76,729 |
| Other expenses | 63,815 | 44,998 | 112,939 | 80,905 |
| Total expenses | 1,335,989 | 1,108,680 | 2,596,356 | 2,194,026 |
| Income (loss) before income taxes | 24,262 | 192,042 | -198,841 | 490,412 |
| Benefit from (provision for) income taxes | 9,827 | -14,117 | 20,484 | -21,773 |
| Net income (loss) | 34,089 | 177,925 | -178,357 | 468,639 |
| Net (income) loss attributable to non-controlling interest | -35,874 | -176,630 | 166,189 | -451,129 |
| Net (loss) income attributable to Rocket Companies | $-1,785 | $1,295 | $-12,168 | $17,510 |
| (Loss) earnings per share of Participating Common Stock | ||||
| Basic | $-0.01 | $0.01 | $-0.08 | $0.13 |
| Diluted | $-0.01 | $0.01 | $-0.08 | $0.13 |
| Weighted average shares outstanding | ||||
| Basic | 171,438,105 | 139,647,845 | 159,643,228 | 138,319,794 |
| Diluted | 171,438,105 | 139,647,845 | 159,643,228 | 138,319,794 |
—
### Condensed Consolidated Balance Sheets
($ In Thousands)
| June 30, 2025 | December 31, 2024 | |
|---|---|---|
| Assets | -Unaudited | |
| Cash and cash equivalents | $5,090,631 | $1,272,853 |
| Restricted cash | 22,691 | 16,468 |
| Mortgage loans held for sale, at fair value | 11,168,691 | 9,020,176 |
| Derivative assets, at fair value | 391,770 | 192,433 |
| Mortgage servicing rights (“MSRs”), at fair value | 7,566,632 | 7,633,371 |
| Notes receivable and due from affiliates | 15,281 | 14,245 |
| Property and equipment, net | 193,843 | 213,848 |
| Deferred tax asset, net | 11,407 | 521,824 |
| Lease right of use assets | 259,029 | 281,770 |
| Loans subject to repurchase right from Ginnie Mae | 2,492,015 | 2,785,146 |
| Goodwill and intangible assets, net | 1,221,168 | 1,227,517 |
| Other assets | 1,927,064 | 1,330,412 |
| Total assets | $30,360,222 | $24,510,063 |
| Liabilities and equity | ||
| Liabilities: | ||
| Funding facilities | $9,481,780 | $6,708,186 |
| Other financing facilities and debt: | ||
| Senior Notes, net | 8,000,225 | 4,038,926 |
| Early buy out facility | 67,532 | 92,949 |
| Accounts payable | 278,245 | 181,713 |
| Lease liabilities | 293,671 | 319,296 |
| Derivative liabilities, at fair value | 163,870 | 11,209 |
| Investor reserves | 98,082 | 99,998 |
| Notes payable and due to affiliates | 2,818 | 31,280 |
| Tax receivable agreement liability | 588,510 | 581,183 |
| Loans subject to repurchase right from Ginnie Mae | 2,492,015 | 2,785,146 |
| Deferred tax liability | 714,673 | 17,445 |
| Other liabilities | 729,873 | 599,352 |
| Total liabilities | $22,911,294 | $15,466,683 |
| Equity | ||
| Preferred stock | $— | $— |
| Class A common stock | 1 | 1 |
| Class B common stock | — | — |
| Class C common stock | — | — |
| Class D common stock | — | 19 |
| Class L common stock | 19 | — |
| Additional paid-in capital | 7,271,613 | 389,695 |
| Retained earnings | 178,507 | 312,834 |
| Accumulated other comprehensive loss | -1,212 | -48 |
| Non-controlling interest | — | 8,340,879 |
| Total equity | 7,448,928 | 9,043,380 |
| Total liabilities and equity | $30,360,222 | $24,510,063 |
