Why did GAAP net income swing so much from last year?

Q1 2025 included a $259 million negative swing from the change in fair value of MSRs (net of hedges), a Class D conversion impact of $202 million, and a much smaller revenue base before the Redfin and Mr. Cooper acquisitions. Q1 2026 GAAP net income of $297 million benefited from a $119 million favorable MSR valuation adjustment, though that item is excluded from adjusted metrics, and from higher origination and servicing revenue.

How much of the earnings growth is from acquisitions versus organic performance?

The filing does not separate organic from acquired growth. The Mr. Cooper acquisition closed in October 2025 and the Redfin acquisition in July 2025, so Q1 2026 includes servicing and related revenue that was absent in Q1 2025. Investors should look to future filings for pro forma comparisons.

What are the main non-GAAP adjustments, and should investors be cautious about them?

Adjusted metrics exclude the change in fair value of MSRs (net of hedges), share-based compensation, acquisition-related expenses, and amortization of acquired intangibles. Management argues these are non-cash or non-recurring, but share-based compensation ($88 million) and acquisition-related expenses ($79 million) recur in the period, and the company itself notes non-GAAP measures do not reflect certain material operating costs. GAAP results should be weighed alongside adjusted figures.

Is the company's balance sheet and liquidity position stable?

Cash and cash equivalents were roughly flat at $2.7 billion. Secured financing declined to $15.9 billion from $17.9 billion, while unsecured financing was steady at $10.4 billion. Total equity rose to $23.2 billion from $22.9 billion, and total liquidity was $9.4 billion, including $2.3 billion of undrawn credit lines and $4.4 billion of undrawn MSR and advance lines.

What should investors watch in the coming quarters?

Key items include whether the company meets its Q2 2026 adjusted revenue guidance of $2.7 billion to $2.9 billion, progress on the remaining servicing migration and the $400 million synergy target, the trajectory of origination volumes and gain-on-sale margins in a rate-sensitive market, and the MSR valuation sensitivity that drives large swings in GAAP results.

RKT 8-K: Earnings & Results & Regulation FD

01—Abstract

Summary

Summary of the 8-K filed May 7, 2026. Cited figures are marked; the original filing is the authoritative source.

Rocket Companies (NYSE: RKT) reported first quarter 2026 results that beat the top end of its own guidance.

Total revenue, net was $2.94 billion^a versus $1.10 billion a year earlier, and GAAP net income swung to $297 million from a loss of $212 million. Adjusted revenue of $2.82 billion and adjusted EBITDA of $738 million (versus $169 million) reflect the contribution of the Mr. Cooper acquisition, which closed in October 2025, alongside the Redfin acquisition from July 2025. Management reported $49.4 billion in net rate lock volume and $44.7 billion in closed origination volume, with a total gain-on-sale margin of 2.74%.

Note that the company reclassified certain interest-related items beginning in Q1 2026, so year-over-year comparisons of revenue and expense lines are affected by presentation changes, though net income is unaffected. The quarter's most important investor data points are the integration progress and the outlook. Management says it is on track to realize the full $400 million^b expense synergy target by the end of 2026, a year earlier than originally planned, and has migrated more than half of the servicing portfolio to a unified platform.

Liquidity stood at $9.4 billion^c, and the servicing portfolio reached $2.1 trillion across 9.4 million loans. For Q2 2026, the company guided adjusted revenue to $2.7 billion to $2.9 billion. Investors should weigh the strong earnings rebound against the large non-GAAP adjustments, the sizable MSR valuation swing, and the higher leverage implied by the acquisitions, since secured financing fell modestly while total equity rose to $23.2 billion.

This 8-K furnishes the earnings press release and supplemental materials under Items 2.02 and 7.01, so the information is not deemed filed under Section 18 of the Exchange Act. Management will discuss the results on a conference call at 4:30 p.m. ET on May 7, 2026, and the detailed Form 10-Q is forthcoming.

02—Key points

Key Highlights

Total revenue, net of $2.94 billion, up from $1.10 billion in Q1 2025; GAAP net income of $297 million versus a $212 million loss a year earlier
Adjusted revenue of $2.82 billion exceeded the high end of company guidance; adjusted net income was $422 million and adjusted EBITDA was $738 million
GAAP diluted EPS of $0.10 and adjusted diluted EPS of $0.15, compared with $(0.08) and $0.04 in Q1 2025
Net rate lock volume of $49.4 billion and closed loan volume of $44.7 billion; total gain-on-sale margin of 2.74%, while ex-correspondent margin was 3.22%
Mr. Cooper integration is ahead of schedule: full $400 million expense synergy target now expected by end of 2026, one year earlier than planned; over half the servicing portfolio is migrated
Liquidity of $9.4 billion at March 31, 2026, with $2.7 billion cash, and a servicing portfolio of $2.1 trillion (9.4 million loans)
Q2 2026 adjusted revenue guidance of $2.7 billion to $2.9 billion; the Q1 interest-line reclassification has no effect on net income

03—Questions

Frequently Asked Questions

Why did GAAP net income swing so much from last year?
Q1 2025 included a $259 million negative swing from the change in fair value of MSRs (net of hedges), a Class D conversion impact of $202 million, and a much smaller revenue base before the Redfin and Mr. Cooper acquisitions. Q1 2026 GAAP net income of $297 million benefited from a $119 million favorable MSR valuation adjustment, though that item is excluded from adjusted metrics, and from higher origination and servicing revenue.
How much of the earnings growth is from acquisitions versus organic performance?
The filing does not separate organic from acquired growth. The Mr. Cooper acquisition closed in October 2025 and the Redfin acquisition in July 2025, so Q1 2026 includes servicing and related revenue that was absent in Q1 2025. Investors should look to future filings for pro forma comparisons.
What are the main non-GAAP adjustments, and should investors be cautious about them?
Adjusted metrics exclude the change in fair value of MSRs (net of hedges), share-based compensation, acquisition-related expenses, and amortization of acquired intangibles. Management argues these are non-cash or non-recurring, but share-based compensation ($88 million) and acquisition-related expenses ($79 million) recur in the period, and the company itself notes non-GAAP measures do not reflect certain material operating costs. GAAP results should be weighed alongside adjusted figures.
Is the company's balance sheet and liquidity position stable?
Cash and cash equivalents were roughly flat at $2.7 billion. Secured financing declined to $15.9 billion from $17.9 billion, while unsecured financing was steady at $10.4 billion. Total equity rose to $23.2 billion from $22.9 billion, and total liquidity was $9.4 billion, including $2.3 billion of undrawn credit lines and $4.4 billion of undrawn MSR and advance lines.
What should investors watch in the coming quarters?
Key items include whether the company meets its Q2 2026 adjusted revenue guidance of $2.7 billion to $2.9 billion, progress on the remaining servicing migration and the $400 million synergy target, the trajectory of origination volumes and gain-on-sale margins in a rate-sensitive market, and the MSR valuation sensitivity that drives large swings in GAAP results.

04—Continue

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