Rocket Companies, Inc.
For the period ended Sep 30, 2025. Filed Nov 6, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2025 · Filed Nov 6, 2025
RKT$15.06+1.6%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-06-30; filed 2025-08-08.
0001805284-25-000088
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-09-30; filed 2025-11-06.
0001805284-25-000136
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 174 previous paragraphs and 189 current paragraphs.
111 unchanged; 47 reworded; 31 added; 16 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 19 previous and 19 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (31)
Current report
From July through September 2025, the labor market weakened, hiring slowed and job openings declined, prompting the Federal Reserve to reduce the federal funds rate by 25 basis points on September 17, even as inflation remained above its 2% target (core PCE approximately 2.9%). As Treasury yields declined and mortgage spreads narrowed through the quarter, the 30-year fixed mortgage rate moved lower to about 6.3% by quarter-end, modestly improving affordability and contributing to increased refinance activity. The home purchase market remained subdued as housing affordability and economic uncertainty weighed on prospective homebuyers.
Current report
Acquisitions and Up-C Collapse
Current report
(3) The three and nine months ended September 2025 exclude the impact of acquisition-related expenses.
Current report
(5) Primarily consists of transaction costs associated with the acquisitions and Up-C Collapse, such as professional service fees (including integration costs), debt financing fees related to the Bridge Facility, and severance expense (including accelerated share-based compensation).
Current report
(6) Reflects amortization of intangible assets related to the Redfin acquisition.
Current report
(2) The three and nine months ended September 2025 exclude the impact of amortization of acquired intangible assets.
Current report
(3) The three and nine months ended September 2025 exclude the impact of acquisition-related expenses.
Current report
(5) Primarily consists of transaction costs associated with the acquisitions and Up-C Collapse, such as professional service fees (including integration costs), debt financing fees related to the Bridge Facility, and severance expense (including accelerated share-based compensation).
Current report
(6) Reflects amortization of intangible assets related to the Redfin acquisition.
Current report
(4) Includes all title closed units.
Current report
Loan servicing (loss) income, net
Current report
In calculating the provision for interim income taxes, in accordance with ASC Topic 740, Income Taxes, we apply an estimated annual effective tax rate to year-to-date ordinary income. At the end of each interim period, the Company estimates the effective tax rate expected to be applicable for thefull year. Tax-effects of significant, unusual or infrequently occurring items are excluded from the estimated annual effective tax rate calculation and recognized in the interim period in which they occur.
Current report
Gain on sale of loans, net was $1.0 billion, an increase of $0.2 billion, or 22%, compared to $0.8 billion in 2024.
Current report
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 $644.9 million, an increase of $127.0 million, or 25%, compared to $517.9 million in 2024. This change was driven by a 20% increase in net rate lock volume.
Current report
Gain on sale of loans, net was $2.6 billion, an increase of $0.3 billion, or 14%, compared to $2.3 billion in 2024.
Current report
Loan servicing (loss) income, net
Current report
Loan servicing loss, net was $66.5 million, a change of $438.1 million, or 87%, compared to $504.5 million loan servicing loss, net in 2024, primarily due to the $498.0 million improvement in Change in valuation model inputs or assumptions during the current period.
Current report
Loan servicing income, net was $87.4 million, a change of $52.0 million, or 37%, compared to $139.5 million in 2024. The decrease was primarily driven by an $89.1 million decline in Change in valuation model inputs or assumptions.
Current report
Interest income, net was $35.7 million, an increase of $28.9 million, compared to $6.7 million in 2024. The change was primarily driven by higher mortgage loan origination volume.
Current report
Interest income, net was $96.4 million, an increase of $21.0 million, or 28%, compared to $75.4 million in 2024. The change was primarily driven by higher mortgage loan origination volume.
Current report
The components of Other income for the periods presented were as follows:
Current report
(1) Includes all title and settlement services.
Current report
Other income was $608.7 million, an increase of $308.3 million, compared to $300.3 million in 2024, driven by a $186.7 million increase in real estate services revenue and $30.7 million increase in Other revenue, primarily associated with the Redfin Acquisition. Additionally, there was a $42.1 million, or 40%, increase in deposit income due to an increase in cash held during the period and a $24.6 million, or 30%, increase in Rocket Close revenue, driven by higher closing volume.
Current report
Other income was $1.2 billion, an increase of $389.7 million, or 48%, compared to $814.3 million in 2024, driven by a $185.5 million increase in real estate services revenue and $28.7 million increase in Other revenue, primarily associated with the Redfin Acquisition. Additionally, there was a $69.8 million, or 32%, increase in Rocket Money revenue associated with growth in paying subscribers and a $49.2 million, or 18%, increase in deposit income due an increase in cash held during the three months ended September 30, 2025.
Current report
We remain in a strong liquidity position, with total liquidity of $9.3 billion as of September 30, 2025, which includes $5.8 billion of cash and cash equivalents, $0.4 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. The total available cash includes $4.0 billion of proceeds from unsecured senior notes issued during the second quarter of 2025, in anticipation of refinancing Mr. Cooper's unsecured debt, funding related fees and expenses, and paydown existing MSR debt upon closing. Subsequent to September 30, 2025, the Company completed the restructuring of approximately $5.0 billion of Mr. Cooper's legacy unsecured debt. Of this amount, $3.1 billion was fully redeemed or tendered using proceeds from June 2025 unsecured note issuance, and $1.8 billion was refinanced through an exchange offer. The remaining notes were assumed by Rocket Mortgage following the merger. In addition, the Company increased its Revolving Credit Facility to $2.3 billion, with the related liability transferred to Rocket Companies, further strengthening the combined entity's liquidity position.
Current report
Critical Accounting Policies and Estimates
Current report
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. We have identified certain accounting policies as being critical because they require us to make difficult, subjective or complex judgments about matters that are uncertain. We believe that the judgment, estimates and assumptions used in the preparation of our consolidated financial statements are appropriate given the factual circumstances at the time. However, actual results could differ and the use of other assumptions or estimates could result in material differences in our results of operations or financial condition. Refer to “Part II - Item 7A. Quantitative and Qualitative Disclosures about Market Risk” of our 2024 Form 10-K for the detailed discussion of our critical accounting policies and estimates. Additionally, as a result of the Redfin acquisition we have identified the following accounting estimate as critical.
Current report
Acquisition Method of Accounting
Current report
The Company recorded the assets and liabilities of the acquired business at their fair value as of the date of acquisition. Fair value measurement of the acquired intangible assets includes estimates based on third-party valuation using forms of the income approach and the cost approach, which require forecasts of expected future cash flows or replacement costs. There are significant inputs used in valuing the intangible assets which are not observable in the market.
Current report
Upon completion of the acquisition, the Company recorded goodwill based on preliminary fair value of net assets acquired. The Company has a measurement period, up to one year after the date of acquisition, to make acquisition accounting adjustments for additional information that existed at the date of acquisition. Adjustments to acquisition accounting could result in changes to the preliminary fair value of net assets acquired and resulting goodwill. Refer to Note 2, Acquisitionsof the Notes to Consolidated Financial Statements in this Form 10-Q for further details.
Current report
There have been no additional changes to our critical accounting policies, as described in our 2024 Form 10-K.
Removed paragraphs (16)
Previous report
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 report
Up-C Collapse and Acquisitions
Previous report
(4) Includes non-recurring expenses related to the pending acquisitions and the Up-C Collapse.
Previous report
(3) Includes non-recurring expenses related to the pending acquisitions and the Up-C Collapse.
Previous report
Loan servicing income, net
Previous report
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 report
Gain on sale of loans, net was $815.9 million, an increase of $57.3 million, or 8%, compared to $758.6 million in 2024.
Previous report
Gain on sale of loans, net was $1.6 billion, an increase of $129.7 million, or 9%, compared to $1.5 billion in 2024.
Previous report
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 report
Loan servicing income, net
Previous report
Interest income, net was $32.6 million, an increase of $1.5 million, or 5%, compared to $31.1 million in 2024. Interest income, net in 2025 benefited from higher mortgage loan origination volume, partially offset by higher interest expense from increased utilization of funding facilities.
Previous report
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 report
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 report
Other income was $595.4 million, an increase of $81.4 million, or 16%, compared to $514.0 million in 2024, driven by a $51.1 million, or 36%, increase in Rocket Money revenue associated with growth in paying subscribers and also an increase in Rocket Close revenue of $13.0 million, or 9%, driven by higher Rocket Close closing volume.
Previous report
• distributions to RHI including those to fund distributions for payment of taxes by RHI shareholders.
Previous report
During the period ended June 30, 2025, the Company closed its offering of $2.0 billion aggregate principal amount of 6.125% senior notes due 2030 and $2.0 billion aggregate principal amount of 6.375% senior notes due 2033. The Company intends to use the proceeds from the Offering to (i) on the closing date for the Mr. Cooper Acquisition, redeem Nationstar Mortgage Holdings Inc.'s ("NMH"), a subsidiary of Mr. Cooper, 5.000% senior notes due 2026, 6.000% senior notes due 2027 and 5.500% senior notes due 2028 at redemption prices equal to 100% of the principal amount of such notes, plus accrued and unpaid interest to, but excluding, the redemption date, (ii) pay fees and expenses related to the Offering and the Redemption, (iii) at the Company’s discretion, redeem, purchase (including, if required, in a change of control offer) and/or amend NMH’s 6.500% senior notes due 2029, 5.125% senior notes due 2030, 5.750% senior notes due 2031 and 7.125% senior notes due 2032 and pay fees and expenses in connection therewith and (iv) after the consummation of the Mr. Cooper Acquisition, repay secured debt of the Company and its subsidiaries (including Redfin, Mr. Cooper and their subsidiaries).
Reworded paragraphs (47)
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 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, 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
We are a Detroit‑based fintech company including mortgage, real estate and personal finance businesses. We are committed to delivering industry-best client experiences through our AI-fueled homeownership strategy. Our full suite of products empowers our clients across financial wellness, personal loans, home search, mortgage finance, title and closing. We believe our widely recognized “Rocket” brand is synonymous with simple, fast and trusted digital experiences.
Current wording
We are a Detroit‑based fintech company including mortgage, real estate and personal finance businesses. We are committed to delivering industry-best client experiences through our AI-powered, vertically integrated homeownership platform. Our full suite of products empowers our clients across financial wellness, personal loans, home search, mortgage finance, title and closing. We believe our widely recognized “Rocket” brand is synonymous with simple, fast and trusted digital experiences.
Previous 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.
Current wording
On October 1, 2025, we completed our previously announced all-stock acquisition of Mr. Cooper. On July 1, 2025, we completed our all-stock acquisition of Redfin. Integration efforts continue to proceed as expected. Additionally, on June 30, 2025, we completed the Up-C Collapse to simplify our organizational and capital structure. 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 $29.1 billion in residential mortgage loans, an increase of $4.4 billion, or 18%, compared to $24.7 billion in 2024. Our Net income for the period was $34.1 million, a decrease of $143.8 million, compared to Net income of $177.9 million in 2024. We generated Adjusted EBITDA of $171.8 million, a decrease of $53.1 million, compared to Adjusted EBITDA of $224.8 million in 2024. For more information on Adjusted EBITDA, please see “Non-GAAP Financial Measures” below.
Current wording
We originated $32.4 billion in residential mortgage loans, an increase of $3.9 billion, or 14%, compared to $28.5 billion in 2024. Our Net loss for the period was $123.9 million, an increase of $357.6 million, compared to a Net loss of $481.4 million in 2024. We generated Adjusted EBITDA of $349.3 million, an increase of $63.4 million, compared to Adjusted EBITDA of $285.9 million in 2024. For more information on Adjusted EBITDA, please see “Non-GAAP Financial Measures” below.
Previous 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.
Current wording
We originated $83.1 billion in residential mortgage loans, an increase of $9.7 billion, or 13%, compared to $73.4 billion in 2024. Our Net loss for the period was $302.2 million, a decrease of $289.4 million, compared to a Net loss of $12.8 million in 2024. We generated $690.1 million of Adjusted EBITDA, an increase of $5.0 million, compared to Adjusted EBITDA of $685.0 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, 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.
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 loss before share-based compensation expense, amortization of acquired intangible assets, 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 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 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, amortization of acquired intangible assets 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 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.
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. Further, we exclude the amortization of intangible assets recognized from the Redfin acquisition from Adjusted net income and Adjusted EBITDA. The Redfin intangible assets were recorded as part of purchase accounting and the related amortization recorded over their useful lives represents a fixed non-cash expense that is not indicative of our ongoing performance or results of operations. 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 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.
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 attributable to Rocket Companies or Net 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
Reconciliation of Adjusted net income to Net (loss) income attributable to Rocket Companies
Current wording
Reconciliation of Adjusted net income to Net loss attributable to Rocket Companies
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 (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.
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 Loss before income taxes assuming Rocket Companies, Inc. owns 100% of the non-voting common interest units of Rocket LLC Holdings for all nine months presented and (b) the (benefit from) provision for income taxes.
Previous 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.
Current wording
(1) Reflects the pro forma exchange and conversion of anti-dilutive Class D common shares to Class A common shares. For the nine months ended September 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 income (loss)
Current wording
Reconciliation of Adjusted EBITDA to Net loss
Previous wording
(1) Debt financing fees related to the Bridge Facility are a non-recurring acquisition related expense impacting the 2025 periods, and therefore excluded from Interest and amortization expense on non-funding debt, and included as Acquisition-related expenses.
Current wording
(1) Debt financing fees related to the Bridge Facility are a nonrecurring acquisition-related expense impacting the 2025 periods, and therefore excluded from Interest and amortization expense on non-funding debt, and included as Acquisition-related expenses.
Previous wording
Our sources of revenue include Gain on sale of loans, net, Loan servicing income, net, Interest income, netand Other income.
Current wording
Our sources of revenue include Gain on sale of loans, net, Loan servicing (loss) income, net, Interest income, netand Other income.
Previous 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.
Current 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.
Previous wording
Other income includes revenues gene rated from Deposit income related to revenue earned on deposits, including escrow deposits, Rocket Close (title, closing and appraisal fees), Rocket Money (subscription revenue andother service-based fees), Rocket Homes (real estate network referral fees) and Rocket Loans (personal loan interest earned and other income) and Other(additional subsidiary andmiscellaneous revenue).
Current wording
Other income includes revenues generated from Deposit income (revenue earned on deposits, including escrow deposits), Rocket Close (title, closing and appraisal fees), Rocket Money (subscription revenue and other service-based fees), Real estate services revenue (commissions and fees charged on each real estate services transaction closed by our lead agents or partner agents), Rocket Loans (personal loan interest earned and other income) and Other (additional subsidiary and miscellaneous revenue).
Previous wording
Results of Operations for the Three and Six Months Ended June 30, 2025 and 2024
Current wording
Results of Operations for the Three and Nine Months Ended September 30, 2025 and 2024
Previous wording
The Fair value of originated MSRs was $343.5 million, a decrease of $2.0 million, or 1%, compared to $345.5 million in 2024. The change was driven by an increase in sold loan volume, offset by a lower MSR fair value multiple during the period.
Current wording
The Fair value of originated MSRs was $385.7 million, an increase of $48.0 million, or 14%, compared to $337.7 million in 2024. The change was driven by an increase in sold loan volume.
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 $471.4 million, an increase of $51.4 million, or 12%, compared to $420.0 million in 2024. This change was driven by a 13% increase in net rate lock volume.
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 $1.6 billion, an increase of $0.2 billion, or 14%, compared to $1.4 billion in 2024. This change was driven by a 17% increase in net rate lock volume.
Previous wording
The Fair value of originated MSRs was $608.0 million, an increase of $39.6 million, or 7%, when compared to $568.3 million in 2024, driven by an increase in sold loan volume, partially offset by a lower MSR fair value multiple during the period.
Current wording
The Fair value of originated MSRs was $993.6 million, an increase of $87.6 million, or 10%, when compared to $906.0 million in 2024, driven by an increase in sold loan volume.
Previous 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.
Current wording
The Investor reserves liability balance was relatively flat in the current and prior period. The $24.1 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 income, net consisted of the following:
Current wording
For the periods presented, Loan servicing (loss) income, net consisted of the following:
Previous wording
(2) A Treasury futures derivative instrument was added during the current period, which preserves a portion of the MSR fair value associated with float earnings by economically hedging changes in short-term interest rates.
Current wording
(2) A Treasury futures derivative instrument was added during the six months ended June 30, 2025, which preserves a portion of the MSR fair value associated with float earnings by economically hedging changes in short-term interest rates.
Previous wording
Loan servicing income, net was $202.4 million, a decrease of $39.3 million, or 16%, compared to $241.7 million loan servicing income, net in 2024, primarily due to the $99.5 million decrease in Change in valuation model inputs or assumptions, partially offset by a $46.9 million increase in Change in fair value of MSR hedge which benefited from the treasury futures derivative added during the current period. In 2025, the Change in valuation model inputs or assumptions was a $25.3 million decrease, compared to an increase of $74.2 million in 2024. This change was driven by a decrease in interest rates during the second quarter of 2025, compared to an increase in interest rates during the same period in 2024. Loan servicing income, net was also impacted by increased Servicing fee income and Collection / realization of cash flows, as a result of an increase in the average portfolio size during 2025.
Current wording
In 2025, the Change in valuation model inputs or assumptions was a $184.6 million decrease, compared to a decrease of $682.6 million in 2024. This change was driven by a smaller decline in interest rates during the third quarter of 2025, compared to the same period in 2024. Loan servicing loss, net was also impacted by increased Servicing fee income and Collection / realization of cash flows, as a result of an increase in the average portfolio size during 2025.
Previous 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.
Current wording
In 2025, the Change in valuation model inputs or assumptions was a $470.7 million decrease, compared to a decrease of $381.7 million in 2024. This change was driven by a larger decline in interest rates during the current period, compared to the same period in 2024. Loan servicing income, net was also impacted by increased Servicing fee income and Collection / realization of cash flows, as a result of an increase in the average portfolio size during 2025.
Previous wording
Total expenses during the period were $1.3 billion, an increase of $227.3 million, or 21%, compared to 2024. Salaries, commissions and team member benefits were $623.5 million, an increase of $70.0 million, or 13%, compared to $553.4 million, largely due to an increase in variable compensation associated with an increase in origination volume. Marketing and advertising expenses were $276.1 million, an increase of $65.1 million, or 31%, compared to $210.9 million, primarily driven by an increase in brand marketing, as well as an increase in performance marketing associated with higher origination volume. General and administrative expenses were $287.4 million, an increase of $54.5 million, or 23%, compared to $233.0 million in 2024, primarily driven by acquisition-related expenses, as well as an increase in variable costs associated with the increase in origination volume. Interest and amortization expense on non-funding debt was $57.7 million, an increase of $19.4 million, or 50%, compared to $38.4 million in 2024, driven by debt financing fees related to the Bridge Facility, as well as interest and amortization associated with the senior notes that closed in June 2025.
Current wording
Total expenses during the period were $1.8 billion, an increase of $0.6 billion, or 56%, compared to 2024. Salaries, commissions and team member benefits were $874.8 million, an increase of $267.2 million, or 44%, compared to $607.5 million, largely due to an increase in variable compensation associated with an increase in origination volume. General and administrative expenses were $354.6 million, an increase of $133.5 million, or 60%, compared to $221.1 million in 2024, primarily driven by acquisition-related expenses, as well as an increase in variable costs associated with the increase in origination volume. Interest and amortization expense on non-funding debt was $137.2 million, an increase of $98.6 million, compared to $38.6 million in 2024, driven by interest and amortization associated with the senior notes that closed in June 2025, as well as debt financing fees related to the Bridge Facility. Marketing and advertising expenses were $274.3 million, an increase of $73.7 million, or 37%, compared to $200.5 million, primarily driven by an increase in performance marketing associated with higher origination volume.
Previous 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.
Current wording
Total expenses during the period were $4.4 billion, an increase of $1.0 billion, or 31%, compared to 2024. Salaries, commissions and team member benefits were $2.1 billion, an increase of $0.4 billion, or 24%, compared to $1.7 billion, largely due to an increase in variable compensation associated with an increase in origination volume. General and administrative expenses were $902.8 million, an increase of $212.1 million, or 31%, compared to $690.7 million in 2024, primarily driven by acquisition-related expenses, as well as an increase in variable costs associated with the increase in origination volume. Marketing and advertising expenses were $825.9 million, an increase of $208.2 million, or 34%, compared to $617.8 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.
Previous wording
Summary results by segment for the Three and Six Months Ended June 30, 2025 and 2024
Current wording
Summary results by segment for the Three and Nine Months Ended September 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 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.
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 nine months ended September 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 $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.
Current wording
Direct to Consumer Adjusted revenue was $1.2 billion, an increase of $0.1 billion, or 14%, compared to $1.0 billion in 2024, driven by Gain on sale of loans, net. Gain on sale of loans, net increased $190.7 million, or 29%, 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 $642.8 million, an increase of $108.7 million, or 20%, compared to $534.0 million in 2024, primarily driven by an increase in brand and performance marketing, as well as variable compensation and other variable costs associated with higher origination volume.
Current wording
Direct to Consumer Directly attributable expenses were $683.8 million, an increase of $132.5 million, or 24%, compared to $551.2 million in 2024, primarily driven by an increase in variable compensation and other variable costs associated with higher origination volume, as well as an increase performance marketing.
Previous 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.
Current wording
Direct to Consumer Contribution margin was $468.9 million, an increase of $12.9 million, or 3%, compared to $456.0 million in 2024. The increase in Contribution margin was primarily driven by an increase in Adjusted revenue, offset by higher Directly attributable expenses, as described above.
Previous wording
Direct to Consumer Adjusted revenue was $2.0 billion, an increase of $245.1 million, or 14%, compared to $1.8 billion in 2024, primarily driven by Gain on sale of loans, net. Gain on sale of loans, net increased $210.3 million, or 19%, due to higher net rate lock volume and gain on sale margin during the current period.
Current wording
Direct to Consumer Adjusted revenue was $3.2 billion, an increase of $0.4 billion, or 14%, compared to $2.8 billion in 2024, primarily driven by Gain on sale of loans, net. Gain on sale of loans, net increased $400.9 million, or 22%, due to higher net rate lock volume and gain on sale margin during the current period.
Previous 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.
Current wording
Direct to Consumer Directly attributable expenses was $1.9 billion, an increase of $0.3 billion, or 20%, compared to $1.6 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 $367.5 million, a decrease of $7.2 million, or 2%, compared to $374.7 million in 2024. The increase in Contribution margin was primarily driven by an increase in Adjusted revenue, offset by higher Directly attributable expenses, as described above.
Current wording
Direct to Consumer Contribution margin was $1.2 billion, an increase of $0.1 billion, or 6%, compared to $1.2 billion 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 $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.
Current wording
Partner Network Adjusted revenue was $167.5 million, a decrease of $9.4 million, or 5%, compared to $176.9 million in 2024, primarily driven by Gain on sale of loans, net. Gain on sale of loans, net decreased $21.9 million, or 13%, 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 $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.
Current wording
Partner Network Directly attributable expenses were $71.5 million, an increase of $6.9 million, or 11%, compared to $64.6 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 $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.
Current wording
Partner Network Contribution margin was $96.0 million, a decrease of $16.3 million, or 14%, compared to $112.3 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
Partner Network Adjusted revenue was $261.9 million, a decrease of $96.2 million, or 27%, compared to $358.1 million in 2024, primarily driven by Gain on sale of loans, net. Gain on sale of loans, net decreased $96.5 million, or 30%, due to lower gain on sale margin, partially offset by an increase in net rate lock volume during the current period.
Current wording
Partner Network Adjusted revenue was $429.4 million, a decrease of $105.6 million, or 20%, compared to $535.0 million in 2024, primarily driven by Gain on sale of loans, net. Gain on sale of loans, net decreased $118.4 million, or 24%, 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 was $121.8 million, an increase of $4.3 million, or 4%, compared to $117.5 million in 2024. The increase during the period was driven by an increase in variable compensation and other variable costs associated with higher origination volume.
Current wording
Partner Network Directly attributable expenses was $193.3 million, an increase of $11.2 million, or 6%, compared to $182.1 million in 2024. The increase during the period was driven by an increase in variable compensation and other variable costs associated with higher origination volume.
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