01—Abstract
Summary
Summary of the 8-K filed August 6, 2026. Cited figures are marked; the original filing is the authoritative source.
Rocket Companies (RKT) reported second-quarter 2026 results that point to a sharp earnings rebound.
Total revenue, net rose to $2.78 billiona from $1.45 billion a year earlier, and GAAP net income reached $229 million versus $34 million. Adjusted net income was $441 million, up from $75 million, and adjusted EBITDA more than quadrupled to $766 million from $172 million. Management highlighted record purchase (6.2%) and refinance (14.3%) market share and the company's most profitable quarter in four years.
Much of the year-over-year improvement reflects the Mr. Cooper and Redfin acquisitions, which expanded the servicing portfolio to $2.0 trillionb UPB and added significant amortization and interest expense, so the comparison is not like-for-like. Quality of earnings deserves attention. Gain on sale margin on total closed volume was 2.48%, with correspondent at just 0.19% and Rocket Pro at 0.69%, reflecting deliberate investments in broker partner growth.
Interest expense nearly tripled, and GAAP net income relies heavily on fair value of originated MSRs (a $759 millionc contribution in Q2) offset by a $616 million negative change in MSR fair value. Total liquidity of $11.2 billion and a $1.5 billion senior notes refinancing in June strengthen the balance sheet, but the company guided Q3 2026 adjusted revenue to $2.5-2.7 billion, a range that sits below Q2's $2.76 billion and implies sequential moderation.
The company also moved to a single Mortgage segment reporting structure, with personal finance and real estate reported as All Other. Investors should weigh the strong top-line recovery and recapture strategy against the reliance on non-GAAP adjustments, the high cost of acquisition-related integration, and the softer Q3 outlook.
02—Key points
Key Highlights
- Total revenue, net of $2.78 billion in Q2 2026, up from $1.45 billion in Q2 2025; GAAP net income of $229 million versus $34 million prior year
- Adjusted EBITDA of $766 million, up from $172 million, and adjusted diluted EPS of $0.16 versus $0.04
- Total closed loan origination volume of $49.1 billion at a 2.48% gain on sale margin; Direct to Consumer margin of 4.13% versus 0.19% for correspondent
- Servicing portfolio reached $2.0 trillion UPB across 9.1 million loans; $53 billion of MSRs sold in Q2 with nearly 80% of sold MSRs retained for subservicing or recapture
- Q3 2026 adjusted revenue guidance of $2.5-2.7 billion, below Q2's $2.76 billion
- Liquidity of $11.2 billion at June 30, 2026, including $3.1 billion cash; $1.5 billion senior notes issued in June at 6.125% and 6.500% coupons
- Segment reporting consolidated to a single Mortgage segment with contribution margin of $1.17 billion in Q2 versus $450 million a year earlier
03—Questions
Frequently Asked Questions
Why did GAAP net income improve so much year over year?
Revenue roughly doubled, driven by higher gain on sale (including a $759 million fair value of originated MSRs), servicing fee income of $1.07 billion from the expanded portfolio, and interest and other income. This was partially offset by higher salaries, G&A, interest expense of $374 million, and $145 million of depreciation and amortization, including acquisition intangibles amortization.
How much of the improvement is due to acquisitions rather than organic growth?
The filing does not quantify the split. The servicing portfolio, Redfin revenue in All Other ($510 million in Q2), and acquisition-related amortization ($112 million in Q2) all reflect the Mr. Cooper and Redfin acquisitions, so year-over-year comparisons are heavily affected by the transactions. Investors should review the 10-Q for pro forma detail.
What are the main non-GAAP adjustments investors should understand?
Adjusted revenue and adjusted net income exclude the change in fair value of MSRs net of hedges (a $23 million benefit in Q2), share-based compensation ($90 million), acquisition-related expenses ($99 million), amortization of acquired intangibles ($112 million), and a $28 million litigation accrual. Adjusted EBITDA also excludes bond interest expense, which the company treats as a capital structure cost. Management notes these measures can mask real costs and should not be viewed in isolation.
What does the Q3 2026 outlook suggest?
The company expects adjusted revenue between $2.5 billion and $2.7 billion in Q3 2026, which is below Q2's $2.76 billion. The guidance does not include adjusted EBITDA or EPS, and the company did not provide a GAAP reconciliation because future adjusting items cannot be reasonably predicted.
04—Continue