10-QPeriod: Q1 FY2026

Rocket Companies, Inc. Quarterly Report for Q1 Ended Mar 31, 2026

Filed May 12, 2026For Securities:RKT

Summary

Rocket Companies, Inc. (RKT) reported a significant turnaround in its financial performance for the first quarter of 2026, achieving net income of $297 million compared to a net loss of $212 million in the prior year period. This improvement was driven by a substantial increase in total revenue, which more than doubled to $2.94 billion, up from $1.10 billion in Q1 2025. The company's gain on sale of loans, net, saw a robust increase to $1.38 billion from $772 million, bolstered by higher origination volumes and a favorable change in mortgage servicing rights (MSRs) fair value. Interest income also significantly increased to $507 million, reflecting higher origination volumes and custodial deposit income from a larger servicing portfolio. The company also highlighted the successful integration of its 2025 acquisitions of Redfin and Mr. Cooper. These strategic moves, along with the Up-C collapse completed in June 2025, have simplified its capital structure and are expected to drive future synergies. Despite increased expenses, particularly in salaries, general and administrative, and marketing, the company's overall profitability improved markedly, demonstrating the effectiveness of its integrated strategy and its ability to navigate a volatile interest rate environment.

Financial Highlights

34 data points
Beta

Net Income

$297.00M

EPS (Diluted)

$0.10

Total Assets

$59.44B

Cash & Equivalents

$2.69B

Free Cash Flow

$1.81B

Financial Statements
Beta
Operating Expenses$2.54B
Interest Expense$349.00M
Net Income$297.00M
EPS (Basic)$0.11
EPS (Diluted)$0.10
Shares Outstanding (Basic)2.83B
Shares Outstanding (Diluted)2.85B

Key Highlights

  • 1Net income improved substantially to $297 million in Q1 2026 from a net loss of $212 million in Q1 2025.
  • 2Total revenue surged to $2.94 billion in Q1 2026, more than double the $1.10 billion reported in Q1 2025.
  • 3Gain on sale of loans, net, increased significantly to $1.38 billion from $772 million, driven by higher loan origination volume and favorable MSR fair value changes.
  • 4Interest income more than doubled to $507 million, reflecting increased loan origination and a larger servicing portfolio.
  • 5Expenses increased by 92% to $2.54 billion, largely due to higher salaries, administrative costs, marketing, and interest expenses, partly attributable to the Redfin and Mr. Cooper acquisitions.
  • 6The company ended the quarter with a strong liquidity position, reporting $2.7 billion in cash and cash equivalents and substantial undrawn credit lines.
  • 7Closed loan origination volume more than doubled to $44.7 billion from $21.6 billion year-over-year.

Frequently Asked Questions

The primary driver of the significant increase in net income from a loss of $212 million in Q1 2025 to a profit of $297 million in Q1 2026 is the substantial growth in total revenue. This growth was largely fueled by an increase in the gain on sale of loans, net, which more than doubled, and a significant rise in interest income, both supported by higher mortgage origination volumes and the continued expansion and integration of its servicing portfolio.

The acquisitions of Redfin and Mr. Cooper, completed in 2025, have significantly contributed to the increase in revenue and asset base in Q1 2026. Revenue from real estate services, in particular, saw a substantial increase due to Redfin's operations. However, these acquisitions also contributed to higher expenses, including acquisition-related costs, increased salaries, and general administrative expenses, as the company integrates these businesses into its existing structure.

Rocket Companies maintains a strong liquidity position. As of March 31, 2026, the company reported $2.7 billion in cash and cash equivalents, along with approximately $6.7 billion in undrawn credit lines (including MSR and advance lines). Management believes its available cash and borrowing capacity provide adequate resources to fund ongoing operations and capital needs.

The company experienced a volatile interest rate environment in Q1 2026, with the 30-year fixed-rate mortgage rate fluctuating. While periods of lower rates drove mortgage activity, subsequent increases put pressure on affordability and home purchase demand. The company's results reflect this, with increased origination volume partially offset by impacts on the fair value of MSRs due to interest rate changes. The company utilizes hedging strategies to mitigate some of this risk.