Company Reports

The mortgage industry is fractured and highly competitive, but Rocket has distinguished itself by operating as an entirely digital lender, originating and servicing its mortgages through its mobile app and website. Rocket has made substantial investments in automating the mortgage process and has been an industry leader in increasing loan processing speed and removing pain points for consumers. These investments have allowed the firm to offer an industry-leading mortgage experience to borrowers while also enjoying a cost structure advantage over its competitors. The firm has doubled down on its vertically integrated model, acquiring both Redfin and the Mr. Cooper Group in 2025. We like this approach, as gaining the Mr. Cooper Group has made Rocket both the largest originator and the largest servicer of mortgages in the US, placing it in a dominant position. Rocket has always benefited from its industry-leading mortgage recapture rate, and it makes sense to lean into this advantage by expanding its servicing portfolio inorganically.

Rocket reported somewhat disappointing earnings as rising mortgage rates pressured mortgage originators industrywide. Adjusted revenue was $2.76 billion, down sequentially from $2.94 billion last quarter, despite the spring selling season. Diluted earnings per share were $0.08.

The mortgage industry is fractured and highly competitive, but Rocket has distinguished itself by operating as an entirely digital lender, originating and servicing its mortgages through its mobile app and website. Rocket has made substantial investments in automating the mortgage process and has been an industry leader in increasing loan processing speed and removing pain points for consumers. These investments have allowed the firm to offer an industry-leading mortgage experience to borrowers while also enjoying a cost structure advantage over its competitors. The firm has doubled down on its vertically integrated model, acquiring both Redfin and the Mr. Cooper Group in 2025. We like this approach, as gaining the Mr. Cooper Group has made Rocket both the largest originator and the largest servicer of mortgages in the US, placing it in a dominant position. Rocket has always benefited from its industry-leading mortgage recapture rate, and it makes sense to lean into this advantage by expanding its servicing portfolio.

Rocket Companies reported good first-quarter results with adjusted revenue rising to $2.82 billion from $1.36 billion last year, though much of this growth came from the acquisition of Mr. Cooper in October. Adjusted diluted earnings per share rose to $0.15 from $0.04 last year.

The mortgage industry is fractured and highly competitive, but Rocket has distinguished itself by operating as an entirely digital lender, originating and servicing its mortgages through its mobile app and website. Rocket has made substantial investments in automating the mortgage process and has been an industry leader in increasing loan processing speed and removing pain points for consumers. These investments, along with its control over the appraisal and titling process through its ownership of Rocket Homes, have allowed the firm to offer an industry-leading mortgage experience to borrowers while also enjoying a cost structure advantage over its competitors. The firm is doubling down on its vertically integrated model, acquiring both Redfin and the Mr. Cooper Group in 2025. We like this approach, as gaining the Mr. Cooper Group has made Rocket both the largest originator and the largest servicer of mortgages in the US, placing it in a dominant position.

Rocket Companies reported strong fourth-quarter results with adjusted revenue rising to $2.44 billion from $1.19 billion last year, though much of this growth came from the acquisition of Mr. Cooper in October. Adjusted diluted earnings per share rose to $0.11 from $0.04 last year.

Rocket reported decent third-quarter results with adjusted net revenue rising to $1.78 billion from $1.32 billion last year. Adjusted EPS, on the other hand, was $0.07 compared with $0.08 last year, due to higher expenses and interest costs from the acquisitions of Redfin and Mr. Cooper Group.

The mortgage industry is fractured and highly competitive, but Rocket has distinguished itself by operating as an entirely digital lender, originating and servicing its mortgages through its mobile app and website. Rocket has made substantial investments in automating the mortgage process and has been an industry leader in increasing loan processing speed and removing pain points for consumers. These investments, along with its control over the appraisal and titling process through its ownership of Amrock, have allowed the firm to offer an industry-leading mortgage experience to borrowers while also enjoying a cost structure advantage over its competitors. The firm is doubling down on its vertically integrated model, announcing deals to acquire both Redfin and the Mr. Cooper Group in 2025. If completed, the acquisition of the Mr. Cooper Group will make Rocket both the largest originator and the largest servicer of mortgages in the US.

Rocket's second-quarter results were slightly better than expected, but earnings are still depressed by low mortgage volume industrywide. Adjusted net revenue increased 9.1% from last year to $1.34 billion, and adjusted EPS dropped to $0.04 from $0.06 last year due to higher spending.

Rocket's results continue to recover from their lows, with first-quarter adjusted revenue increasing 11.4% to $1.3 billion. Despite stronger results, the firm still faces pressure from difficult mortgage market conditions, with adjusted diluted earnings per share remaining flat at only $0.04.

The mortgage industry is fractured and highly competitive, but Rocket has distinguished itself by operating as an entirely digital lender, originating and servicing its mortgages through its mobile app and website. Rocket has made substantial investments in automating the mortgage process and has been an industry leader in increasing loan processing speed and removing pain points for consumers. These investments, along with its control over the appraisal and titling process through its ownership of Amrock, have allowed the firm to offer an industry-leading mortgage experience to borrowers while also enjoying a cost structure advantage over its competitors. The firm is doubling down on its vertically integrated model, announcing deals to acquire both Redfin and the Mr. Cooper Group in 2025. If completed, this would make Rocket both the largest originator and the largest servicer of mortgages in the US, as well as give it access to a leading real estate brokerage website.

Rocket Companies has announced that it intends to acquire Mr. Cooper Group, a major mortgage servicer, in an all-stock deal with a $9.4 billion equity value. The deal is expected to close in the fourth quarter of 2025.

The mortgage industry is fractured and highly competitive, but Rocket has distinguished itself by operating as an entirely digital lender, originating and servicing its mortgages through its mobile app and website. Rocket has made substantial investments in automating the mortgage process and has been an industry leader in increasing loan processing speed and removing pain points for consumers. These investments, along with its control over the appraisal and titling process through its ownership of Amrock, have allowed the firm to offer an industry-leading mortgage experience to borrowers while also enjoying a cost structure advantage over its competitors.

Rocket has announced that it intends acquire Redfin, the digital real estate brokerage firm, in an all-stock deal worth $1.75 billion. The deal is expected to close in the second or third quarter of 2025.

Thanks to a dip in mortgage rates, Rocket Companies reported solid fourth-quarter results with adjusted revenue increasing 34% to $1.19 billion. Despite the increase in revenue, the firm still faces difficult mortgage conditions, and adjusted diluted earnings per share was only $0.04.

Narrow-moat-rated Rocket Companies reported solid results as lower mortgage rates in the quarter led to a sharp uptick in mortgage origination volume for the company. That said, a $676 million fair value adjustment to the firm’s mortgage servicing assets meant that reported revenue and net income appeared far worse than they were. Net revenue decreased 46% from last year to $647 million or rose 31% to $1.3 billion on an adjusted basis. Meanwhile, adjusted earnings per share rose to $0.08 from effectively break-even last year.

We are increasing our fair value estimate for narrow-moat-rated Rocket Companies to $16.00 from $14.50 as we expect the company’s results to begin to benefit from lower interest rates. Rocket and its peers in the mortgage origination industry are highly exposed to movements in interest rates as refinance activity is extremely volatile and dependent on the path rates take.

The mortgage industry is fractured and highly competitive, but Rocket has distinguished itself by operating as an entirely digital lender, originating and servicing its mortgages through its mobile app and website. Rocket has made substantial investments in automating the mortgage process and has been an industry leader in increasing loan processing speed and removing pain points for consumers. These investments, along with its control over the appraisal and titling process through its ownership of Amrock, have allowed the firm to offer an industry-leading mortgage experience to borrowers while also enjoying a cost structure advantage over its competitors.

The mortgage industry is fractured and highly competitive, but Rocket has distinguished itself by operating as an entirely digital lender, originating and servicing its mortgages through its mobile app and website. Rocket has made substantial investments in automating the mortgage process and has been an industry leader in increasing loan processing speed and removing pain points for consumers. These investments, along with its control over the appraisal and titling process through its ownership of Amrock, have allowed the firm to offer an industry-leading mortgage experience to borrowers while also enjoying a cost structure advantage over its competitors.

Narrow-moat-rated Rocket reported decent second-quarter earnings that were in line with our expectations, though the firm continues to be pressured by a weak mortgage market. Adjusted net revenue increased 22.6% from last year to $1.2 billion, while adjusted earnings per share increased to $0.06 from a loss of $0.02 last year. Despite the significant year-over-year increase in revenue, a more meaningful recovery for Rocket will require better mortgage origination conditions. As we incorporate these results, we do not plan to materially alter our $13.50 fair value estimate. At the current price, we see the shares as modestly overvalued. That said, Rocket’s business is heavily exposed to the path that interest rates take. If there are signs that rates will fall faster than expected that will have a positive impact on our fair value estimate.