Loading...
•
Jun 30
Rocket Companies Q2 2025 Earnings Report
Rocket Companies reported a standout second quarter in 2025, exceeding adjusted revenue guidance and delivering positive adjusted diluted EPS, while also completing the Redfin acquisition.
Key Takeaways
Rocket Companies delivered a strong second quarter in 2025, with total revenue of $1.36 billion and adjusted revenue of $1.34 billion, surpassing guidance. The company reported GAAP net income of $34 million and adjusted net income of $75 million, with adjusted diluted EPS of $0.04. Key operational highlights include significant increases in mortgage closed loan origination volume and net rate lock volume, alongside the strategic acquisition of Redfin Corporation.
Total revenue, net, for Q2 2025 was $1.36 billion, with adjusted revenue reaching $1.34 billion, exceeding the high end of guidance.
GAAP net income was $34 million, and adjusted net income was $75 million, with adjusted diluted earnings per share of $0.04.
Mortgage closed loan origination volume increased by 18% year-over-year to $29.1 billion, and net rate lock volume grew by 13% to $28.4 billion.
The company completed the all-stock acquisition of Redfin Corporation on July 1, 2025, and simplified its capital structure through the Up-C Collapse on June 30, 2025.
Rocket Companies
Rocket Companies
Rocket Companies Revenue by Segment
Revenue by Segment
Direct to Consumer Revenue
CapyFin.comPartner Network Revenue
CapyFin.comAll Other Revenue
CapyFin.com Forward Guidance
For Q3 2025, Rocket Companies expects adjusted revenue to be between $1.600 billion and $1.750 billion, incorporating a full quarter of consolidated financial results from Redfin Corporation.
Positive Outlook
- Expected adjusted revenue growth in Q3 2025, ranging from $1.600 billion to $1.750 billion.
- Integration of Redfin Corporation's financial results is expected to contribute positively to revenue.
- Continued focus on enhancing digital refinance capabilities, aiming for a 'refi button' simplicity.
- Ongoing development and deployment of AI-powered tools to improve banker efficiency and client follow-ups.
- Strategic partnerships and broker support enhancements are expected to drive further growth.
Challenges Ahead
- The forward guidance for adjusted revenue is a non-GAAP measure, and a quantitative reconciliation to GAAP cannot be reliably estimated.
- The company is winding down Rocket Mortgage Canada operations and the Rocket Visa Signature Card credit card program, which may impact future revenue streams.
- The Mr. Cooper acquisition, while on track, is contingent and involves significant debt issuance, which could introduce financial risks.
- Market interest rate fluctuations and changes in MSR valuation assumptions could impact financial results.
- The competitive landscape in the mortgage and real estate sectors remains dynamic, potentially affecting future performance.