Rocket Companies, Inc.

Previous wording

This Form 10-Q contains forward-looking statements, which involve risks and uncertainties. These forward-looking statements are generally identified by the use of forward-looking terminology, including the terms “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “should,” “target,” “will,” “would” and, in each case, their negative or other various or comparable terminology. All statements other than statements of historical facts contained in this Form 10-Q, including statements regarding the Up-C Collapse, the Redfin Acquisition, the Mr. Cooper Acquisition, our strategy, future operations, future financial position, future revenue, projected costs, prospects, plans, objectives of management and expected market growth are forward-looking statements. As you read this Form 10-Q, you should understand that these statements are not guarantees of performance or results. They involve known and unknown risks, uncertainties and assumptions, including those described under the heading “Risk Factors” in this Form 10-Q. Although we believe that these forward-looking statements are based upon reasonable assumptions, you should be aware that many factors, including those described under the heading “Risk Factors” in this Form 10-Q, could affect our actual financial results or results of operations and could cause actual results to differ materially from those in the forward-looking statements.

Current wording

This Form 10-Q contains forward-looking statements, which involve risks and uncertainties. These forward-looking statements are generally identified by the use of forward-looking terminology, including the terms “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “should,” “target,” “will,” “would” and, in each case, their negative or other various or comparable terminology. All statements other than statements of historical facts contained in this Form 10-Q, including statements regarding the Mr. Cooper Acquisition, our strategy, future operations, future financial position, future revenue, projected costs, prospects, plans, objectives of management and expected market growth are forward-looking statements. As you read this Form 10-Q, you should understand that these statements are not guarantees of performance or results. They involve known and unknown risks, uncertainties and assumptions, including those described under the heading “Risk Factors” in this Form 10-Q. Although we believe that these forward-looking statements are based upon reasonable assumptions, you should be aware that many factors, including those described under the heading “Risk Factors” in this Form 10-Q, could affect our actual financial results or results of operations and could cause actual results to differ materially from those in the forward-looking statements.

Previous wording

From January to March 2025, inflation remained above the Federal Reserve’s 2% target, in the range of 2.7% to 2.8%. As a result, the Federal Reserve held the federal funds rate steady at 4.25% to 4.50%, following its December 2024 rate cut. During this period, the 30-year fixed-rate mortgage declined from 6.91% to 6.65%, providing some home affordability relief and spurring refinance activity. However, housing affordability remains a key challenge to prospective homebuyers, and limited housing inventory, macro uncertainty, and rate volatility continued to weigh on housing and mortgage activity industry wide.

Current wording

From April through June 2025, inflation remained above the Federal Reserve’s 2% target, in the range of 2.5% to 2.7%. The Fed held the federal funds rate steady at 4.25% to 4.50% during both its May and June meetings. The 30-year fixed mortgage rate remained elevated during the period and housing affordability and limited housing inventory challenges continued to weigh on housing and mortgage activity industry wide.

Previous wording

On March 9, 2025, we entered into an agreement to simplify our organizational and capital structure by collapsing our Up-C structure. Additionally, on March 9, 2025, we entered into an agreement to purchase Redfin in an all-stock transaction. On March 31, 2025, we entered into an agreement to purchase Mr. Cooper in an all-stock transaction. The integration planning continues to proceed as expected. We expect these transactions will be completed in 2025, subject to regulatory approval and the satisfaction of other customary closing conditions set forth in the transaction agreements. Refer to Note 1, Business, Basis of Presentation and Accounting Policies and Note 2, Pending Acquisitions to our consolidated financial statements included in this Form 10-Q.

Current wording

On June 30, 2025, we completed the Up-C Collapse to simplify our organizational and capital structure. Additionally, on July 1, 2025, we completed our previously announced all-stock acquisition of Redfin. On March 31, 2025, we entered into an agreement to purchase Mr. Cooper in an all-stock transaction. The integration planning continues to proceed as expected. We expect the Mr. Cooper transaction will be completed in the fourth quarter of 2025, subject to regulatory approval and the satisfaction of other customary closing conditions set forth in the transaction agreement. Refer to Note 1, Business, Basis of Presentation and Accounting Policies and Note 2, Acquisitions to our consolidated financial statements included in this Form 10-Q.

Previous wording

We originated $21.6 billion in residential mortgage loans, an increase of $1.4 billion, or 7%, compared to $20.2 billion in 2024. Our Net loss for the period was $212.4 million, a decrease of $503.2 million, compared to Net income of $290.7 million in 2024. We generated Adjusted EBITDA of $169.0 million, a decrease of $5.3 million, compared to Adjusted EBITDA of $174.3 million in 2024. For more information on Adjusted EBITDA, please see “Non-GAAP Financial Measures” below.

Current wording

We originated $50.6 billion in residential mortgage loans, an increase of $5.8 billion, or 13%, compared to $44.9 billion in 2024. Our Net loss for the period was $178.4 million, a decrease of $647.0 million, compared to Net income of $468.6 million in 2024. We generated $340.8 million of Adjusted EBITDA, a decrease of $58.4 million, compared to Adjusted EBITDA of $399.1 million in 2024. For more information on Adjusted EBITDA, please see “Non-GAAP Financial Measures” below.

Previous wording

We define “Adjusted revenue” as total revenues net of the change in fair value of mortgage servicing rights (“MSRs”) due to valuation assumptions (net of hedges). We define “Adjusted net income” as tax-effected net income (loss) before share-based compensation expense, the change in fair value of MSRs due to valuation assumptions (net of hedges), acquisition-related expenses and the tax effects of those adjustments as applicable. We define “Adjusted diluted earnings (loss) per share” as Adjusted net income divided by the adjusted diluted weighted average shares outstanding which includes diluted weighted average Class A common stock and the assumed pro forma exchange and conversion of Class D common stock outstanding for the applicable period presented. We define “Adjusted EBITDA” as net income (loss) before interest and amortization expense on non-funding debt, (benefit from) provision for income taxes, depreciation and amortization, share-based compensation expense, change in fair value of MSRs due to valuation assumptions (net of hedges) and acquisition-related expenses.

Current wording

We define “Adjusted revenue” as total revenues net of the change in fair value of mortgage servicing rights (“MSRs”) due to valuation assumptions (net of hedges). We define “Adjusted net income” as tax-effected net income (loss) before share-based compensation expense, the change in fair value of MSRs due to valuation assumptions (net of hedges), acquisition-related expenses, the change in Tax receivable agreement liability and the tax effects of those adjustments as applicable. We define “Adjusted diluted earnings (loss) per share” as Adjusted net income divided by the adjusted diluted weighted average shares outstanding which includes diluted weighted average Participating Common Stock and the assumed pro forma exchange and conversion of Class D common stock outstanding for the applicable period presented. We define “Adjusted EBITDA” as net income (loss) before interest and amortization expense on non-funding debt, (benefit from) provision for income taxes, depreciation and amortization, share-based compensation expense, change in fair value of MSRs due to valuation assumptions (net of hedges), acquisition-related expenses and the change in Tax receivable agreement liability.

Previous wording

We exclude from each of our non-GAAP financial measures the change in fair value of MSRs due to valuation assumptions (net of hedges), as this represents a non-cash non-realized adjustment to our total revenues, reflecting changes in market interest rates and assumptions, including discount rates and prepayment speeds, which are not indicative of our performance or results of operation. We also exclude effects of contractual prepayment protection associated with sales of MSRs. Adjusted EBITDA includes Interest expense on funding facilities, which are recorded as a component of Interest income, net, as these expenses are a direct cost driven by loan origination volume. By contrast, interest and amortization expense on non-funding debt is a function of our capital structure and is therefore excluded from Adjusted EBITDA.

Current wording

We exclude from each of our non-GAAP financial measures the change in fair value of MSRs due to valuation assumptions (net of hedges), as this represents a non-cash non-realized adjustment to our total revenues, reflecting changes in market interest rates and assumptions, including discount rates and prepayment speeds, which are not indicative of our performance or results of operation. We also exclude gains or losses on sales of MSRs during the period and effects of contractual prepayment protection associated with sales of MSRs. Adjusted EBITDA includes Interest expense on funding facilities, which are recorded as a component of Interest income, net, as these expenses are a direct cost driven by loan origination volume. By contrast, interest and amortization expense on non-funding debt is a function of our capital structure and is therefore excluded from Adjusted EBITDA.

Previous wording

Our definitions of each of our non-GAAP financial measures allow us to add back certain cash and non-cash charges, and deduct certain gains that are included in calculating Total revenue, net, Net (loss) income attributable to Rocket Companies or Net (loss) income. However, these expenses and gains vary greatly, and are difficult to predict. From time to time in the future, we may include or exclude other items if we believe that doing so is consistent with the goal of providing useful information to investors.

Current wording

Our definitions of each of our non-GAAP financial measures allow us to add back certain cash and non-cash charges, and deduct certain gains that are included in calculating Total revenue, net, Net (loss) income attributable to Rocket Companies or Net income (loss). However, these expenses and gains vary greatly, and are difficult to predict. From time to time in the future, we may include or exclude other items if we believe that doing so is consistent with the goal of providing useful information to investors.

Previous wording

(1) Reflects net income (loss) to Class A common stock from pro forma exchange and conversion of corresponding shares of our Class D common shares held by non-controlling interest holders as of March 31, 2025 and 2024.

Current wording

(1) Reflects net income (loss) to Class A common shares from pro forma exchange and conversion of corresponding shares of our Class D common shares held by non-controlling interest holders during the periods ended June 30, 2025 and 2024. Class D common shares were exchanged and retired on June 30, 2025, the date the Up-C Collapse was effectuated.

Previous wording

(2) Rocket Companies is subject to U.S. Federal income taxes, in addition to state, local and Canadian taxes with respect to its allocable share of any net taxable income or loss of Holdings. The adjustment to the benefit from (provision for) income tax reflects the difference between (a) the income tax computed using the effective tax rates below applied to the (loss) income before income taxes assuming Rocket Companies, Inc. owns 100% of the non-voting common interest units of Holdings and (b) the (benefit from) provision for income taxes.

Current wording

(2) Rocket Companies is subject to U.S. Federal income taxes, in addition to state, local and Canadian taxes with respect to its allocable share of any net taxable income or loss of Holdings. The adjustment to the (provision for) benefit from income tax reflects the difference between (a) the income tax computed using the effective tax rates below applied to the income (loss) before income taxes assuming Rocket Companies, Inc. owns 100% of the non-voting common interest units of Holdings and (b) the (benefit from) provision for income taxes.

Previous wording

(5) Tax impact of adjustments gives effect to the income tax related to share-based compensation expense, the change in fair value of MSRs due to valuation assumptions and acquisition-related expenses, at the effective tax rates for each quarter.

Current wording

(6) Tax impact of adjustments gives effect to the income tax related to share-based compensation expense, change in fair value of MSRs due to valuation assumptions (net of hedges), acquisition-related expenses and the change in Tax receivable agreement liability, at the effective tax rates for each period.

Previous wording

(6) Represents tax benefits due to the amortization of intangible assets and other tax attributes resulting from the purchase of Holdings units, net of payment obligations under Tax Receivable Agreement.

Current wording

(7) Represents tax benefits due to the amortization of intangible assets and other tax attributes resulting from the historical purchases of Holdings Units, net of payment obligations under Tax Receivable Agreement.

Previous wording

(1) Reflects the pro forma exchange and conversion of anti-dilutive Class D common stock to Class A common stock. For the three months ended March 31, 2025 and 2024, Class D common shares were dilutive and are included in the Diluted weighted average Class A common shares outstanding in the table above.

Current wording

(1) Reflects the pro forma exchange and conversion of anti-dilutive Class D common shares to Class A common shares. For the three and six months ended June 30, 2025 and 2024, Class D common shares were anti-dilutive and are excluded in the Diluted weighted average Class A common shares outstanding in the table above. Class D common shares were exchanged and retired on June 30, 2025, the date the Up-C Collapse was effectuated.

Previous wording

Reconciliation of Adjusted EBITDA to Net (loss) income

Current wording

Reconciliation of Adjusted EBITDA to Net income (loss)

Previous wording

Our sources of revenue include Gain on sale of loans, net, Loan servicing (loss) income, net, Interest income, netand Other income.

Current wording

Our sources of revenue include Gain on sale of loans, net, Loan servicing income, net, Interest income, netand Other income.

Previous wording

Loan servicing (loss) income, net includes Servicing fee income and Change in fair value of MSRs. Servicing fee income consists of the contractual fees earned for servicing the loans and includes ancillary revenue such as late fees and modification incentives. Servicing fee income is recorded to income as earned, which is upon collection of payments from borrowers. We have elected to subsequently measure the MSRs at fair value on a recurring basis. Changes in fair value of MSRs primarily due to the realization of expected cash flows and/or changes in valuation inputs and estimates, are recognized in current period earnings.

Current wording

Loan servicing income, net includes Servicing fee income and Change in fair value of MSRs. Servicing fee income consists of the contractual fees earned for servicing the loans and includes ancillary revenue such as late fees and modification incentives. Servicing fee income is recorded to income as earned, which is upon collection of payments from borrowers. We have elected to subsequently measure the MSRs at fair value on a recurring basis. Changes in fair value of MSRs primarily due to the realization of expected cash flows and/or changes in valuation inputs and estimates, are recognized in current period earnings.

Previous wording

Interest and amortization expense related to our Senior Notes.

Current wording

Interest and amortization expense related to our Senior Notes and the Bridge Facility.

Previous wording

Refer to Note 8, Income Taxes for more information on Tax Receivable Agreement.

Current wording

For the three and six months ended June 30, 2025, the Company utilized the discrete effective tax rate method, treating the year-to-date period as if it was the annual period to calculate its interim income tax provision, as allowed by ASC 740-270-30-18, Income Taxes-Interim Reporting. The Company concluded it could not use the estimated annual effective tax rate method as it could not calculate a reliable estimate of the annual effective tax rate due to it being highly sensitive to insignificant changes in the forecasted amounts. Refer to Note 8, Income Taxes for more information on income taxes.

Previous wording

Share-based compensation is comprised of both equity and liability awards and is measured and expensed accordingly under Accounting Standards Codification (“ASC”) 718 Compensation - Stock Compensation. As indicated above, share-based compensation expense is included as part of salaries, commissions and team member benefits.

Current wording

Share-based compensation is comprised of both equity and liability awards and is measured and expensed accordingly under ASC 718, Compensation - Stock Compensation. As indicated above, share-based compensation expense is included as part of salaries, commissions and team member benefits.

Previous wording

We are the sole managing member of Holdings and consolidate the financial results of Holdings. Therefore, we report a non-controlling interest based on the Holdings Units of Holdings held by our Chairman and RHI on our Condensed Consolidated Balance Sheets. Income or loss is attributed to the non-controlling interests based on the weighted average Holdings Units outstanding during the period and is presented on the Condensed Consolidated Statements of Income (Loss) and Comprehensive Income (Loss). Refer to Note 13, Non-controlling Interestfor more information on non-controlling interests.

Current wording

Refer to Note 13, Non-controlling Interestfor more information on non-controlling interests.

Previous wording

Results of Operations for the Three Months Ended March 31, 2025 and 2024

Current wording

Results of Operations for the Three and Six Months Ended June 30, 2025 and 2024

Previous wording

Provision for investor reserves expense was primarily due to a decrease in losses on repurchased loans in the current period, compared to 2024.

Current wording

The Investor reserves liability balance was relatively flat in the current and prior period. The $8.0 million reduction in Provision for investor reserves expense was primarily due to a decrease in losses on repurchased loans in the current period, compared to 2024.

Previous wording

Net gain on sale of loans, Fair value adjustment on loans held for sale and IRLCs, and Revaluation from forward commitments economically hedging loans held for sale and IRLCs was $510.8 million, an increase of $22.7 million, or 5%, compared to $488.1 million in 2024. This change was driven by a 17% increase in net rate lock volume, partially offset by a 7% decrease in gain on sale margin.

Current wording

Net gain on sale of loans, Fair value adjustment on loans held for sale and IRLCs, and Revaluation from forward commitments economically hedging loans held for sale and IRLCs was $982.2 million, an increase of $74.1 million, or 8%, compared to $908.1 million in 2024. This change was driven by a 15% increase in net rate lock volume, partially offset by a 7% decrease in gain on sale margin.

Previous wording

The Investor reserves liability balance was relatively flat in the current and prior period. The $8.1 million reduction in

Current wording

The Investor reserves liability balance was relatively flat in the current and prior period. The $16.1 million reduction in Provision for investor reserves expense was primarily due to a decrease in losses on repurchased loans in the current period, compared to 2024.

Previous wording

For the periods presented, Loan servicing (loss) income, net consisted of the following:

Current wording

For the periods presented, Loan servicing income, net consisted of the following:

Previous wording

Loan servicing loss, net was $48.5 million, a decrease of $450.7 million, compared to $402.3 million loan servicing income, net in 2024, primarily due to the $487.6 million decrease in Change in valuation model inputs or assumptions. In 2025, the Change in valuation model inputs or assumptions was a $260.8 million decrease, compared to an increase of $226.8 million in 2024. This change was driven by a decrease in interest rates during the first quarter of 2025, compared to an increase in interest rates during the same period in 2024. Additionally, the change in Servicing fee income and Collection / realization of cash flows was primarily driven by an increase in the average portfolio size during 2025.

Current wording

Loan servicing income, net was $153.9 million, a decrease of $490.1 million, or 76%, compared to $644.0 million in 2024, primarily due to the $587.1 million decrease in Change in valuation model inputs or assumptions, partially offset by increased Servicing fee income of $101.6 million associated with an increase in the average portfolio size during 2025. In 2025, the Change in valuation model inputs or assumptions was a $286.1 million decrease, compared to an increase of $301.0 million in 2024. This change was driven by a decrease in interest rates during the current period, compared to an increase in interest rates during 2024.

Previous wording

Interest income, net was $28.1 million, a decrease of $9.5 million, or 25%, compared to $37.5 million in 2024. Interest income, net in 2025 benefited from higher mortgage loan origination volume, but was offset by higher interest expense from increased utilization of funding facilities.

Current wording

Interest income, net was $60.7 million, a decrease of $8.0 million, or 12%, compared to $68.7 million in 2024. Interest income, net in 2025 benefited from higher mortgage loan origination volume, but was offset by higher interest expense from increased utilization of funding facilities.

Previous wording

Other income was $286.1 million, an increase of $41.4 million, or 17%, compared to $244.7 million in 2024, driven by a $28.3 million, or 41%, increase in Rocket Money revenue associated with growth in paying subscribers.

Current wording

Other income was $309.3 million, an increase of $40.0 million, or 15%, compared to $269.3 million in 2024, driven by a $22.8 million, or 31%, increase in Rocket Money revenue associated with growth in paying subscribers and also an increase in Rocket Close revenue of $11.8 million, or 16%, driven by higher Rocket Close closing volume.

Previous wording

Total expenses during the period were $1.3 billion, an increase of $175.0 million, or 16%, compared to 2024. Marketing and advertising expenses were $275.6 million, an increase of $69.3 million, or 34%, compared to $206.3 million, primarily driven by the launch of our unified Rocket brand restage. Salaries, commissions and team member benefits were $609.6 million, an increase of $68.5 million, or 13%, compared to $541.1 million, largely due to an increase in origination volume. General and administrative expenses were $260.8 million, an increase of $24.2 million, or 10%, compared to $236.7 million in 2024, driven by acquisition-related expenses.

Current wording

Total expenses during the period were $2.6 billion, an increase of $402.3 million, or 18%, compared to 2024. Salaries, commissions and team member benefits were $1.2 billion, an increase of $138.6 million, or 13%, compared to $1.1 billion, largely due to an increase in variable compensation associated with an increase in origination volume. Marketing and advertising expenses were $551.7 million, an increase of $134.4 million, or 32%, compared to $417.2 million, primarily driven by the launch of our unified Rocket brand restage, as well as an increase in performance marketing associated with higher origination volume. General and administrative expenses were $548.2 million, an increase of $78.6 million, or 17%, compared to $469.6 million in 2024, primarily driven by acquisition-related expenses, as well as an increase in variable costs associated with the increase in origination volume.

Previous wording

Summary results by segment for the Three Months Ended March 31, 2025 and 2024

Current wording

Summary results by segment for the Three and Six Months Ended June 30, 2025 and 2024

Previous wording

We measure the performance of the segments primarily on a contribution margin basis. Contribution margin is intended to measure the direct profitability of each segment and is calculated as Adjusted revenue less directly attributable expenses. Adjusted revenue is a non-GAAP financial measure described above. Directly attributable expenses include Salaries, commissions and team member benefits, General and administrative expenses, Marketing and advertising expenses and Other expenses, such as mortgage servicing related expenses and expenses generated from Rocket Close (title and settlement services). For segments, we measure gain on sale margin of sold loans and refer to this metric as ‘sold loan gain on sale margin’. A loan is considered sold when it is sold to investors on the secondary market. Sold loan gain on sale margin reflects the gain on sale revenue of loans sold into the secondary market divided by the sold loan volume for the period. By contrast, ‘gain on sale margin’, which we reference outside of the segment discussion, measures the gain on sale revenue, net divided by net rate lock volume for the period. See below for our overview and discussion of segment results for the three months ended March 31, 2025 and 2024. For additional discussion, see Note 12, Segments of the notes to the unaudited condensed consolidated financial statements of this Form 10-Q.

Current wording

We measure the performance of the segments primarily on a contribution margin basis. Contribution margin is intended to measure the direct profitability of each segment and is calculated as Adjusted revenue less directly attributable expenses. Adjusted revenue is a non-GAAP financial measure described above. Directly attributable expenses include Salaries, commissions and team member benefits, General and administrative expenses, Marketing and advertising expenses and Other expenses, such as mortgage servicing related expenses and expenses generated from Rocket Close (title and settlement services). For segments, we measure gain on sale margin of sold loans and refer to this metric as ‘sold loan gain on sale margin’. A loan is considered sold when it is sold to investors on the secondary market. Sold loan gain on sale margin reflects the gain on sale revenue of loans sold into the secondary market divided by the sold loan volume for the period. By contrast, ‘gain on sale margin’, which we reference outside of the segment discussion, measures the gain on sale revenue, net divided by net rate lock volume for the period. See below for our overview and discussion of segment results for the three and six months ended June 30, 2025 and 2024. For additional discussion, see Note 12, Segments of the notes to the unaudited condensed consolidated financial statements of this Form 10-Q.

Previous wording

Direct to Consumer Adjusted revenue was $1.0 billion, an increase of $143.5 million, or 16%, compared to $873.4 million in 2024, driven by Gain on sale of loans, net and Service fee income. Gain on sale of loans, net increased $119.4 million, or 22%, due to an increase in net rate lock volume during the current period. Service fee income increased $55.2 million, or 16%, due to an increase in the average portfolio size during 2025.

Current wording

Direct to Consumer Adjusted revenue was $1.0 billion, an increase of $101.5 million, or 11%, compared to $908.8 million in 2024, driven by Gain on sale of loans, net. Gain on sale of loans, net increased $90.9 million, or 16%, due to an increase in net rate lock volume and gain on sale margin during the current period.

Previous wording

Direct to Consumer Directly attributable expenses were $610.1 million, an increase of $80.3 million, or 15%, compared to $529.8 million in 2024, primarily due to an increase in Marketing and advertising expenses, driven by the launch of our unified Rocket brand restage, as well as other variable costs associated with higher origination volume.

Current wording

Direct to Consumer Directly attributable expenses was $1.3 billion, an increase of $189.1 million, or 18%, compared to $1.1 billion in 2024, primarily driven by an increase in Marketing and advertising expenses associated with the launch of our unified Rocket brand restage and performance marketing, as well as an increase in variable compensation and other variable costs associated with higher origination volume.

Previous wording

Direct to Consumer Contribution margin was $406.8 million, an increase of $63.2 million, or 18%, compared to $343.6 million in 2024. The increase in Contribution margin was primarily driven by an increase in Adjusted revenue, partially offset by higher Directly attributable expenses, as described above.

Current wording

Direct to Consumer Contribution margin was $774.3 million, an increase of $56.0 million, or 8%, compared to $718.3 million in 2024. The increase in Contribution margin was primarily driven by an increase in Adjusted revenue, partially offset by higher Directly attributable expenses, as described above.

Previous wording

Partner Network Adjusted revenue was $113.7 million, a decrease of $56.6 million, or 33%, compared to $170.3 million for in 2024, primarily driven by Gain on sale of loans, net. Gain on sale of loans, net decreased $53.7 million, or 36%, due to lower gain on sale margin, partially offset by higher net rate lock volume during the current period.

Current wording

Partner Network Adjusted revenue was $148.2 million, a decrease of $39.6 million, or 21%, compared to $187.8 million in 2024, primarily driven by Gain on sale of loans, net. Gain on sale of loans, net decreased $42.8 million, or 25%, due to lower gain on sale margin, partially offset by an increase in net rate lock volume during the current period.

Previous wording

Partner Network Directly attributable expenses were $57.0 million, an increase of $1.1 million, or 2%, compared to $55.9 million in 2024, primarily driven by an increase in Marketing and advertising expenses during the period.

Current wording

Partner Network Directly attributable expenses were $64.8 million, an increase of $3.3 million, or 5%, compared to $61.5 million in 2024, primarily driven by an increase in variable compensation and other variable costs associated with higher origination volume.

Previous wording

Partner Network Contribution margin was $56.7 million, a decrease of $57.6 million, or 50%, compared to $114.3 million in 2024. The decrease in Contribution margin was primarily driven by a decrease in Gain on sale of loans, net, as described above.

Current wording

Partner Network Contribution margin was $83.4 million, a decrease of $42.9 million, or 34%, compared to $126.3 million in 2024. The decrease in Contribution margin was primarily driven by a decrease in Gain on sale of loans, net, as described above.

Previous wording

Our funding facilities are primarily in the form of master repurchase agreements. We also have funding facilities directly with the GSEs. Loans financed under these facilities are generally financed at approximately 97% to 98% of the principal balance of the loan (although certain types of loans are financed at lower percentages of the principal balance of the loan), which requires us to fund the balance from cash generated from operations. Once closed, the underlying residential mortgage loan that is held for sale is pledged as collateral for the borrowing or advance that was made under these funding facilities. In most cases, the loans will remain in one of the funding facilities for only a short time, generally less than 45 days, until the loans are pooled and sold. During the time the loans are held for sale, we earn interest income from the borrower on the underlying mortgage loan. This income is partially offset by the interest and fees we have to pay under the funding facilities.

Current wording

Our funding facilities are primarily in the form of master repurchase agreements. We also have funding facilities directly with the GSEs. Loans financed under these facilities are generally financed at approximately 98% of the principal balance of the loan (although certain types of loans are financed at lower percentages of the principal balance of the loan), which requires us to fund the balance from cash generated from operations. Once closed, the underlying residential mortgage loan that is held for sale is pledged as collateral for the borrowing or advance that was made under these funding facilities. In most cases, the loans will remain in one of the funding facilities for only a short time, generally less than 45 days, until the loans are pooled and sold. During the time the loans are held for sale, we earn interest income from the borrower on the underlying mortgage loan. This income is partially offset by the interest and fees we have to pay under the funding facilities.

Previous wording

As discussed in Note 6, Borrowings, of the notes to the unaudited condensed consolidated financial statements, as of March 31, 2025, we had 17 different funding facilities and financing facilities in different amounts and with various maturities together with the Senior Notes. At March 31, 2025, the aggregate available amount under our facilities was $25.1 billion, with combined outstanding balances of $7.7 billion and unutilized capacity of $17.4 billion.

Current wording

As discussed in Note 6, Borrowings, of the notes to the unaudited condensed consolidated financial statements, as of June 30, 2025, we had 16 different funding facilities and financing facilities in different amounts and with various maturities together with the Senior Notes. At June 30, 2025, the aggregate available amount under our facilities was $23.5 billion, with combined outstanding balances of $9.5 billion and unutilized capacity of $14.0 billion.

Previous wording

We remain in a strong liquidity position, with total liquidity of $8.1 billion as of March 31, 2025, which includes $1.4 billion of cash and cash equivalents, $1.5 billion of corporate cash used to self-fund loan originations, a portion of which could be transferred to funding facilities (warehouse lines) at our discretion, $3.2 billion of undrawn lines of credit from financing facilities, and $2.0 billion of undrawn MSR lines. Margin cash held on behalf of counterparties is recorded in Cash and cash equivalents, and the related liability is classified in Other liabilities in the Condensed Consolidated Balance Sheets. Margin cash pledged to counterparties is excluded from Cash and cash equivalents and instead recorded in Other assets, as a receivable, in the Condensed Consolidated Balance Sheets. We believe that our available cash, as well as the sources of liquidity described above, provide adequate resources to fund our anticipated ongoing operational and capital needs.

Current wording

We remain in a strong liquidity position, with total liquidity of $9.1 billion as of June 30, 2025, which includes $5.1 billion of cash and cash equivalents, $0.9 billion of corporate cash used to self-fund loan originations, a portion of which could be transferred to funding facilities (warehouse lines) at our discretion, $1.1 billion of undrawn lines of credit from financing facilities, and $2.0 billion of undrawn MSR lines. Margin cash held on behalf of counterparties is recorded in Cash and cash equivalents, and the related liability is classified in Other liabilities in the Condensed Consolidated Balance Sheets. Margin cash pledged to counterparties is excluded from Cash and cash equivalents and instead recorded in Other assets, as a receivable, in the Condensed Consolidated Balance Sheets. We believe that our available cash, as well as the sources of liquidity described above, provide adequate resources to fund our anticipated ongoing operational and capital needs.

Previous wording

During the three months ended March 31, 2025 and 2024, the Company did not pay any material dividend or tax distributions. Except for tax distributions, these distributions are at the discretion of our board of directors.

Current wording

During the three and six months ended June 30, 2025, the Company paid tax distributions totaling $113.8 million to holders of Holdings Units other than Rocket Companies. During the three and six months ended 2024, the Company had no material dividend or tax distributions. Except for tax distributions, these distributions are at the discretion of our board of directors.