Rocket Companies (NYSE:RKT) Releases Quarterly Earnings Results, Meets Estimates

Key Points

• Rocket Companies met earnings expectations with quarterly EPS of $0.16, while revenue of $2.76 billion fell short of the $2.81 billion analyst consensus.
• The company reported strong operating momentum, including record mortgage-market share gains, a 28% adjusted EBITDA margin, expanding Redfin mortgage leads, and $100 million in annualized Mr. Cooper synergies.
• Near-term housing conditions remain a concern: Rising mortgage rates and weak affordability are expected to shrink the mortgage market sequentially, with next-quarter adjusted revenue forecast at $2.5 billion to $2.7 billion. Analysts maintain a “Moderate Buy” consensus with an average price target of $20.73.

Rocket Companies (NYSE:RKT - Get Free Report) released its quarterly earnings results on Thursday. The company reported $0.16 earnings per share for the quarter, hitting analysts' consensus estimates of $0.16, FiscalAI reports. The company had revenue of $2.76 billion during the quarter, compared to analysts' expectations of $2.81 billion. Rocket Companies had a return on equity of 4.30% and a net margin of 2.78%.

Here are the key takeaways from Rocket Companies' conference call:

• Record market-share gains despite a difficult housing market: Purchase share rose to 6.2% and refinance share to 14.3%, while adjusted revenue reached $2.8 billion, adjusted EBITDA margin expanded to 28%, and adjusted EPS increased to $0.16.
• Redfin, servicing, and AI are strengthening the platform: Redfin mortgage leads more than doubled year over year, its mortgage attach rate reached 47%, and loan officers are serving nearly 40% more clients with improved conversion. Rocket also said Voice AI handled more than one million servicing calls, resolving over half without specialist intervention.
• Integration synergies and financial flexibility are ahead of plan: Rocket realized $100 million of annualized Mr. Cooper expense synergies in the quarter and now expects approximately $500 million in total savings, including $100 million above its original target. Liquidity increased to $11.2 billion, while net corporate leverage fell to 0.9 times.
• Near-term housing conditions remain weak: Rising mortgage rates and worsening affordability led management to expect the third-quarter mortgage market to contract sequentially, with adjusted revenue guided to $2.5 billion-$2.7 billion. The company said the expected 2026 housing recovery has not materialized.

Rocket Companies Price Performance

NYSE RKT traded down $0.64 during mid-day trading on Thursday, hitting $13.22. The stock had a trading volume of 39,510,087 shares, compared to its average volume of 29,195,025. The firm's 50 day moving average is $14.04 and its 200 day moving average is $15.55. Rocket Companies has a twelve month low of $12.17 and a twelve month high of $24.36. The company has a debt-to-equity ratio of 1.13, a current ratio of 4.37 and a quick ratio of 4.37. The stock has a market capitalization of $37.39 billion, a price-to-earnings ratio of 264.32 and a beta of 2.19.

Analysts Set New Price Targets

A number of research firms have recently commented on RKT. Barclays cut their price objective on Rocket Companies from $19.00 to $17.00 and set an "overweight" rating for the company in a research report on Tuesday, July 7th. Wells Fargo & Company decreased their target price on Rocket Companies from $19.00 to $17.00 and set an "equal weight" rating on the stock in a research report on Thursday, April 9th. BTIG Research reissued a "neutral" rating on shares of Rocket Companies in a report on Tuesday, June 16th. Royal Bank Of Canada restated a "sector perform" rating and set a $20.00 price objective on shares of Rocket Companies in a research report on Monday, May 11th. Finally, JPMorgan Chase & Co. decreased their price objective on shares of Rocket Companies from $16.00 to $15.50 and set a "neutral" rating on the stock in a report on Monday, July 13th. One investment analyst has rated the stock with a Strong Buy rating, nine have given a Buy rating and nine have assigned a Hold rating to the company. According to data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average target price of $20.73.

Institutional Investors Weigh In On Rocket Companies

A number of large investors have recently modified their holdings of RKT. Royal Bank of Canada boosted its position in Rocket Companies by 48.9% during the first quarter. Royal Bank of Canada now owns 69,641 shares of the company's stock worth $841,000 after acquiring an additional 22,861 shares during the last quarter. Amundi lifted its stake in Rocket Companies by 3.1% in the 1st quarter. Amundi now owns 33,416 shares of the company's stock worth $403,000 after purchasing an additional 997 shares in the last quarter. AQR Capital Management LLC boosted its holdings in shares of Rocket Companies by 1,086.5% during the 1st quarter. AQR Capital Management LLC now owns 400,467 shares of the company's stock worth $4,734,000 after purchasing an additional 366,716 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its holdings in shares of Rocket Companies by 12.2% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 370,619 shares of the company's stock worth $4,473,000 after purchasing an additional 40,326 shares during the last quarter. Finally, Creative Planning grew its position in shares of Rocket Companies by 17.2% in the second quarter. Creative Planning now owns 18,215 shares of the company's stock valued at $258,000 after purchasing an additional 2,679 shares in the last quarter. Hedge funds and other institutional investors own 4.59% of the company's stock.

Key Stories Impacting Rocket Companies

Here are the key news stories impacting Rocket Companies this week:

• Positive Sentiment: Rocket reported Q2 2026 total revenue of $2.78 billion, adjusted revenue of $2.76 billion, GAAP net income of $229 million and adjusted net income of $441 million. The results provide a fundamental positive, although the release did not include additional guidance in the available details. Rocket Companies Announces Second Quarter 2026 Results
• Positive Sentiment: U.S. starter-home affordability continued to improve, with the income needed to afford a typical starter home declining 1.5% year over year for an eighth consecutive month. This could gradually support purchase activity and mortgage demand. Redfin Reports Affordability For U.S. Starter Homes Improves Slightly Faster Than Overall Market
• Neutral Sentiment: Unusually large options activity was reported in RKT, potentially signaling heightened institutional positioning or expectations for increased volatility, but the direction of the trade was not provided. Rocket Companies Target of Unusually Large Options Trading
• Neutral Sentiment: RBC Capital maintained a Hold rating ahead of the earnings report, suggesting limited conviction that near-term upside would outweigh housing and valuation risks. RBC Capital Sticks to Their Hold Rating for Rocket Companies
• Negative Sentiment: Pending home sales fell 3.7% week over week to a five-month low as mortgage rates reached their highest level in nearly a year. Lower transaction volume can pressure Rocket’s mortgage origination and related real-estate businesses. Redfin Reports Pending Home Sales Sink to 5-Month Low As Mortgage Rates Rise
• Negative Sentiment: RKT is declining alongside Opendoor and other real-estate stocks amid concerns about the home-sales slump. Although affordability is improving modestly, the typical home still requires income well above that of the median household, keeping demand constrained. Opendoor Technologies Sinks, Rocket Companies Falls Amid Home-Sales Slump

About Rocket Companies

Rocket Companies, Inc is a Detroit-based holding company whose businesses are centered on digital mortgage origination and related consumer finance and real estate services. The company grew out of the Quicken Loans franchise and completed an initial public offering in 2020. Founder Dan Gilbert remains a prominent figure associated with the firm, which operates a suite of brands that aim to simplify the home financing and buying experience through technology and scale.

The company's core activity is mortgage lending through its Rocket Mortgage platform, which offers online application, underwriting and servicing for home purchase and refinance loans.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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