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Jun 30, 2021
Rocket Companies Q2 2021 Earnings Report
Rocket Companies reported strong second-quarter results, marked by record purchase closed loan origination volume and significant growth across its platform.
Key Takeaways
Rocket Companies announced strong second-quarter results, with revenue of $2.7 billion and net income of $1.0 billion. The company achieved record purchase closed loan origination volume, nearly doubling year-over-year, and expects its 2021 mortgage origination closed loan volume to exceed 2020's record performance of $320 billion.
Generated total revenue, net of $2.7 billion and Adjusted Revenue of $2.8 billion.
Rocket Mortgage generated $84 billion in mortgage origination closed loan volume and gain on sale margin of 2.78%.
Generated net income of $1.0 billion and Adjusted Net Income of $0.9 billion.
Achieved Adjusted EBITDA of $1.3 billion with an Adjusted EBITDA margin of 46%.
Revenue by Segment
Forward Guidance
Rocket Companies expects the following ranges in Q3 2021:
Positive Outlook
- Closed loan volume of between $82.0 billion and $87.0 billion.
- Net rate lock volume of between $83.0 billion and $90.0 billion.
- Gain on sale margins of 2.70% to 3.00%.
- Technology and data continue to drive better client experiences.
- Originations volume expected to exceed 2020.
Challenges Ahead
- Change in fair value of MSRs due to valuation assumptions
- Fluctuations in costs
- Difficult to predict expenses and gains
- Impact of long-term strategies
- Rocket Mortgage Classic expenses
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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