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Sep 30, 2020
Rocket Companies Q3 2020 Earnings Report
Rocket Companies reported record closed loan origination volume and a significant increase in GAAP net income, driven by the demand for home loans.
Key Takeaways
Rocket Companies announced strong Q3 2020 results, with record closed loan origination volume of $89.0 billion, a 122% increase year-over-year. GAAP net income increased by 506% year-over-year to $3.0 billion. The company also announced a $1 billion share repurchase authorization.
Generated record closed loan origination volume of $89.0 billion, up 122% year-over-year.
Increased gain on sale margin by 37% year-over-year to 4.52%.
Grew total revenue, net, by 186% and Adjusted Revenue by 163% compared to Q3 2019.
Approved a $1 billion share repurchase program.
Rocket Companies
Rocket Companies
Rocket Companies Revenue by Segment
Revenue by Segment
Direct to Consumer Revenue
CapyFin.comPartner Network Revenue
CapyFin.com Forward Guidance
The company expects strong consumer demand for home loans to continue into the fourth quarter of 2020.
Positive Outlook
- Closed loan volume of between $88 billion and $93 billion, an increase of 73% to 83% compared to Q4 2019.
- Net rate lock volume of between $80 billion and $87 billion, an increase of 82% to 98% compared to Q4 2019.
- Gain on sale margins of 3.80% to 4.10%, an improvement of 11% to 20% compared to Q4 2019.
- Continued strong consumer demand for home loans.
- High net client retention and refinance recapture rates.
Revenue & Expenses
Visualization of income flow from segment revenue to net income