Rocket Companies Q2 Earnings Call Highlights

Key Points

• Rocket Companies reported its most profitable quarter in four years, with $2.8 billion in adjusted revenue, $766 million in adjusted EBITDA and a 28% margin. The company also expanded purchase and refinance market share despite weak housing conditions and elevated mortgage rates.
• Redfin and Mr. Cooper integrations are progressing, supporting lead generation, AI-driven conversion gains and cost savings. Rocket achieved $100 million in annualized Mr. Cooper synergies during the quarter and expects another $100 million beyond its original $400 million target by the first half of 2027.
• Management remains cautious on the housing outlook, citing a 6.8% 30-year mortgage rate and declining purchase activity. Rocket forecast third-quarter adjusted revenue of $2.5 billion to $2.7 billion, while expecting expenses to fall as integration savings take effect.

Rocket Companies NYSE: RKT reported second-quarter 2026 results that it described as its most profitable quarter in four years, despite what management characterized as one of the housing industry’s toughest spring markets in recent years.

CEO Varun Krishna said higher mortgage rates in May and June further reduced affordability and weakened both purchase and refinance demand during what is typically the strongest seasonal period for home buying. Still, the company said it gained market share in both categories, expanded adjusted EBITDA margin and progressed ahead of plan on the integrations of Redfin and Mr. Cooper.

Second-Quarter Results and Market Share

Rocket reported adjusted revenue of $2.8 billion, near the midpoint of its guidance range. Total net rate lock volume was $47 billion, while total closed loan volume reached $49 billion. Gain-on-sale margin excluding correspondent business was 311 basis points, compared with 322 basis points in the first quarter.

Adjusted EBITDA totaled $766 million, representing a 28% margin, up from 26% in the prior quarter. Adjusted diluted earnings per share rose to $0.16 from $0.15 in the first quarter.

President and CFO Brian Brown said Rocket achieved its highest quarterly market share in both purchase and refinance lending. Based on industry estimates, purchase market share was 6.2%, up from 5.5% in the fourth quarter of 2025, while refinance share was 14.3%, up from 12.2%.

• Purchase market share increased 13% from the fourth quarter of 2025.
• Refinance market share increased 17% over the same period.
• Direct-to-consumer purchase volume rose 45% year over year.
• Existing servicing clients represented 57% of refinance close volume, compared with 54% in the first quarter.

Management attributed the share gains to the company’s servicing portfolio, recapture capabilities, Redfin’s home-search funnel and cost advantages in origination and servicing. Krishna said more than 70% of Rocket’s revenue now comes from recurring or less rate-sensitive businesses, including servicing, purchase mortgages, home equity products, personal loans and Redfin.

Redfin, AI and Servicing Initiatives

Rocket said its Redfin integration is increasingly providing purchase-mortgage leads. In June, mortgage leads from Redfin more than doubled from a year earlier, while the mortgage attachment rate among Redfin agents reached 47%, approaching the company’s stated 50% synergy target.

The company said Redfin reaches roughly 50 million monthly active users and now offers approximately 25,000 exclusive listings nationally through its Compass partnership. Eligible Rocket servicing clients who buy or sell through Redfin and finance with Rocket Mortgage can receive up to $20,000 in combined savings, according to management.

Krishna said artificial intelligence initiatives have increased lead conversion by roughly 30% over the past year. Loan officers are serving nearly 40% more clients than they did one year ago while producing double-digit conversion improvements, he said.

Rocket also completed a major servicing migration during the quarter, bringing servicing clients onto a single platform. Its Voice AI system for inbound servicing calls has handled more than 1 million calls, with more than half resolved without a servicing specialist, Krishna said.

In adjacent lending products, Rocket said it has become the nation’s largest home equity lender. Since entering the category four years ago, the company has helped more than 250,000 homeowners access more than $24 billion of home equity. Rocket Loans volume nearly doubled year over year in the first six months of 2026, ending with a record June; more than half of those loans came from existing servicing clients.

Synergies, Liquidity and MSR Portfolio

Brown said Rocket realized $100 million of annualized Mr. Cooper expense synergies during the second quarter and remains on track to reach its original $400 million target by year-end. The company now expects to realize an additional $100 million of annualized expense savings beyond that goal during the first half of 2027, following completion of major integration milestones.

Rocket ended the quarter with $11.2 billion in liquidity, an increase of $1.8 billion from the first quarter. Net corporate leverage was 0.9 times, down 20% from year-end. The company also refinanced existing debt through a senior note offering in June.

During the quarter, Rocket sold a portion of its low-coupon mortgage servicing rights, or MSRs, at what Brown called attractive market prices. The company retained subservicing and recapture rights associated with those loans. Its servicing portfolio ended the quarter with $2 trillion in unpaid principal balance, including $320 billion of owned MSRs with note rates above 6%.

Brown said Rocket uses mortgage TBAs and Treasury futures to hedge interest-rate volatility in its MSR assets. He said the company’s recapture business serves as a natural hedge, reducing the need for the 80% to 100% hedge coverage ratios that some other firms may target.

Third-Quarter Outlook

Management expects the housing market to remain difficult in the near term. Brown said the 30-year fixed mortgage rate recently reached 6.8%, approximately 50 basis points above the first-half average and the highest level in more than a year. Existing-home sales remain near an annualized rate of 4 million, while pending sales and purchase applications continue to decline, he said.

Rocket expects third-quarter adjusted revenue of $2.5 billion to $2.7 billion. The company said the outlook assumes continued market share gains in purchase and refinance lending, even as it expects the overall mortgage market to be smaller than it was in the second quarter.

At the midpoint of its outlook, Rocket expects expenses of approximately $2.35 billion, including about $110 million of intangible amortization, $90 million of stock-based compensation and $100 million of one-time acquisition-related costs. Excluding those items, expenses are expected to decline by roughly $100 million sequentially, primarily due to integration synergies and, to a lesser extent, lower volume-related costs.

About Rocket Companies (NYSE:RKT)

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.

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