Quick Summary
- Rocket Companies delivered annual revenue of $6.7 billion in 2025, representing a 31% increase from the previous year, but reported a net loss of $234 million versus a $636 million profit in 2024.
- The company’s diluted EPS stood at $(0.05), a significant decline from the $0.21 reported in 2024, primarily due to elevated expenses and acquisition-related costs.
- Fourth quarter net income plummeted 89% to $68 million even as revenue surged 52% to $2.69 billion.
- Shares of RKT declined 7.7% during Monday’s trading session, ending at $16.79, as market participants digested the disappointing earnings results.
- The company’s Q1 2026 revenue forecast of $2.6–$2.8 billion incorporates $150 million stemming from a warehouse interest cost accounting reclassification.
Shares of Rocket Companies (RKT) tumbled 7.7% during Monday’s session, settling at $16.79, following the mortgage lender’s disclosure of an annual net loss for 2025 despite delivering robust revenue expansion.
The Detroit-based company generated total revenue of $6.695 billion throughout the year, marking a 31% improvement compared to the $5.101 billion recorded in 2024. However, this impressive top-line performance couldn’t compensate for escalating operational costs and the financial burden associated with recent corporate acquisitions.
The firm swung to a net loss of $234 million, representing a dramatic shift from the $636 million in net income achieved during the previous year.
Diluted earnings per share of Participating Common Stock registered at $(0.05), contrasting sharply with the $0.21 figure from the prior year.
The company reported adjusted EBITDA of $1.281 billion, a metric management emphasizes as reflecting core operational performance.
Loan origination volumes increased 29% on a year-over-year basis, with both the Direct-to-Consumer segment and Partner Network channels experiencing volume growth. The company’s non-mortgage service offerings also demonstrated expansion throughout the period.
The servicing unpaid principal balance expanded to $2.12 trillion, accompanied by increases in both mortgage servicing rights fair value and servicing fee income.
Fourth Quarter Results Disappoint Investors
The final quarter of 2025 exhibited similar dynamics. Revenue jumped 52% to $2.692 billion compared to $1.769 billion in the year-ago period, yet net income plummeted 89% to merely $68 million from $649 million in Q4 2024.
This disconnect between robust revenue performance and weak profitability metrics seems to have triggered Monday’s sharp sell-off.
During 2025, the company finalized its acquisitions of both Redfin and Mr. Cooper, transactions that contributed significantly to elevated integration costs. The firm also completed its Up-C corporate restructuring initiative.
Rocket launched a comprehensive unified brand repositioning campaign and increased marketing expenditures throughout the year, driving improvements in customer acquisition metrics and Rocket Money subscriber growth.
First Quarter 2026 Outlook Includes Accounting Adjustment
Looking ahead to Q1 2026, Rocket provided revenue guidance ranging from $2.6 billion to $2.8 billion. This projection suggests year-over-year growth of approximately 151% to 170% versus the $1.037 billion generated in Q1 2025.
Investors should recognize, however, that this guidance incorporates approximately $150 million related to an accounting methodology change.
Beginning in the current quarter, the company is shifting its treatment of warehouse interest on loans held for sale from a contra-revenue classification to a direct expense category. Management emphasized that while this adjustment inflates both reported revenue and expenses, it produces no effect on net income or cash flow generation.
The full-year loss before income taxes totaled $(214) million, reflecting substantial integration costs and expense items connected to the acquisition transactions.
The company’s 10-K filing, made public on March 2, provided comprehensive details of these results, and the stock’s Monday performance demonstrated investor dissatisfaction with the profitability metrics despite the revenue outperformance.
RKT concluded Monday’s trading at $16.79, representing a 7.7% decline for the session.
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