01—Abstract
Summary
Summary of the 10-Q filed October 30, 2026. Cited figures are marked; the original filing is the authoritative source.
Rocket Companies, Inc. reported a significant turnaround in its financial performance for the nine months ended September 30, 2026, swinging to a net income of $1.236 billiona from a net loss of $136 million in the prior year period.
This improvement was driven by strong growth in mortgage origination volume, which increased by 65%b year-over-year, and a substantial rise in servicing fee income, bolstered by a larger average portfolio size following recent acquisitions. The company's strategic acquisitions of Redfin and Mr. Cooper, completed in 2025, are being integrated and appear to be contributing to a more robust, vertically integrated homeownership platform. Despite challenges in the broader market, including rising interest rates impacting affordability, Rocket Companies demonstrated resilience.
The company's Adjusted EBITDA also saw substantial growth, reaching $2.3 billionc for the nine-month period, up from $690 million in the prior year. While total revenue also increased significantly, it's important for investors to note the impact of valuation changes on Mortgage Servicing Rights (MSRs), which can introduce volatility. The company's balance sheet shows a healthy liquidity position, with substantial cash and cash equivalents and available credit lines, enabling it to navigate the current economic environment.
02—Key points
Key Highlights
- Net income turned positive, reaching $1.236 billion for the nine months ended September 30, 2026, a substantial improvement from a net loss of $136 million in the same period of 2025.
- Total closed mortgage loan origination volume surged by 65% to $137.4 billion for the nine months ended September 30, 2026, compared to $83.1 billion in 2025.
- Servicing fee income more than doubled to $3.181 billion for the nine months ended September 30, 2026, reflecting a larger servicing portfolio.
- Adjusted EBITDA significantly increased to $2.3 billion for the nine months ended September 30, 2026, from $690 million in the prior year period.
- The company's total assets decreased slightly to $60.15 billion as of September 30, 2026, from $60.69 billion as of December 31, 2025, with a notable increase in Mortgage Servicing Rights (MSRs) to $20.26 billion.
- Total liabilities decreased to $35.84 billion as of September 30, 2026, from $37.79 billion as of December 31, 2025, driven by a reduction in secured financing.
- The company maintained compliance with regulatory minimum net worth, capital ratio, and liquidity requirements.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2026filed October 30, 2026Financial Statements
Q3 FY2026 against Q3 FY2025
| Line item | Q3 FY2026Q3 FY2025 | Change |
|---|---|---|
| Revenue | $3.28B$1.70B | +93.7% |
| Operating Expenses | $2.33B$1.88B | +23.7% |
| Interest Expense | $359.00M$235.00M | +52.8% |
| Net Income | $709.00M-$124.00M | +671.8% |
| EPS (Basic) | $0.25$-0.06 | +516.7% |
| EPS (Diluted) | $0.25$-0.06 | +516.7% |
| Shares Outstanding (Basic) | 2.84B2.11B | +34.8% |
| Shares Outstanding (Diluted) | 2.85B2.11B | +35.1% |
05—Questions
Frequently Asked Questions
What drove the significant improvement in net income for the nine months ended September 30, 2026?
The substantial increase in net income was primarily driven by a 65% surge in closed mortgage loan origination volume to $137.4 billion, coupled with a significant rise in servicing fee income, which more than doubled to $3.181 billion. This growth reflects the increased scale of operations following recent acquisitions and a larger servicing portfolio.
How have the acquisitions of Redfin and Mr. Cooper impacted the company's financial results?
The acquisitions of Redfin (July 2025) and Mr. Cooper (October 2025) are being integrated and have contributed to the company's expanded scale, particularly in mortgage servicing and real estate services. This integration has led to increased servicing fee income and is part of the company's strategy to build a vertically integrated homeownership platform, impacting both revenue and expense structures.
What is the company's liquidity position as of September 30, 2026?
Rocket Companies maintains a strong liquidity position, with $2.7 billion in Cash and cash equivalents as of September 30, 2026. Additionally, they have $2.5 billion in undrawn lines of credit and $6.2 billion in undrawn MSR and advance lines of credit, providing ample resources for ongoing operations.
How is the company managing market risks, particularly rising interest rates?
The company is exposed to market risks, including interest rate fluctuations. They utilize derivative financial instruments such as Interest Rate Lock Commitments (IRLCs), Loan Purchase Commitments (LPCs), Forward commitments, and Treasury futures to manage exposure to interest rate risks related to their mortgage pipeline and MSR portfolio. Changes in fair value of these derivatives are recognized in current period net income (loss).
06—Continue