Rocket Companies — Third Quarter 2026 Earnings Summary

Financial Performance:

• Generated total revenue, net of $3.28 billion for Q3 2026, compared to $1.695 billion in Q3 2025.
• Reported GAAP net income of $709 million for Q3 2026, a reversal from a net loss of $124 million in Q3 2025.
• Reported adjusted net income of $419 million for Q3 2026, up from $158 million in Q3 2025.
• Delivered adjusted EBITDA of $748 million for Q3 2026, compared to $349 million in Q3 2025.
• Adjusted revenue was $2.574 billion for Q3 2026, up from $1.873 billion in Q3 2025.
• GAAP diluted earnings per share were $0.25 for Q3 2026, compared to a loss of $0.06 per share in Q3 2025.
• Adjusted diluted earnings per share were $0.15 for Q3 2026, up from $0.07 in Q3 2025.
• Total liquidity was $11.4 billion as of September 30, 2026, comprising $2.7 billion in cash and cash equivalents, $2.5 billion in undrawn lines of credit, and $6.2 billion in undrawn available MSR and advance lines of credit.
• Total servicing portfolio unpaid principal balance was $2.0 trillion (9.1 million loans) as of September 30, 2026.

Guidance and Future Outlook:

• Provided Q4 2026 adjusted revenue guidance between $2.1 billion and $2.3 billion.

Business Segments and Product Lines:

• The Mortgage segment generated $2.802 billion in total revenue, net, and $1.138 billion in contribution margin for Q3 2026.
• Excluding correspondent volume, net rate lock volume was $30.4 billion and closed mortgage loan origination volume was $33.5 billion.
• Direct to Consumer generated $22.1 billion in net rate lock volume and $24.6 billion in closed mortgage loan origination volume.
• Rocket Pro generated $8.2 billion in net rate lock volume and $9.0 billion in closed mortgage loan origination volume.
• Total net rate lock volume was $40.4 billion and total closed mortgage loan origination volume was $43.6 billion.
• Total gain on sale margin was 2.54%; Direct to Consumer gain on sale margin was 4.31%; Rocket Pro gain on sale margin was 0.70%.
• MSR sales totaled $23 billion of UPB in Q3 2026, generating $379 million in cash proceeds, with subservicing and recapture services retained on nearly 70% of the sold MSRs.
• Rocket Pro launched "Orbit," a partner rewards program offering same-day conditional approval and 12-business-day clear to close on eligible purchase loans.
• Rocket Money launched "Rowan," an AI financial agent developed with Anthropic, capable of renegotiating bills and automating savings.
• Rocket Mortgage became the first lender to adopt VantageScore 4.0 as its preferred credit scoring model, enabling an average of $1,600 in closing cost savings for qualifying clients.
• AI initiatives included pulling credit on nearly 20% of Direct to Consumer loan volume before client interaction and handling 65% of inbound servicing calls, resolving over half autonomously.
• Digital mortgage applications comprised over 40% of retail refinance applications, with digital leads converting at four times the rate of non-digital channels.

Market and Competitive Landscape:

• Rocket Mortgage was ranked #1 in mortgage lending volume, purchase, refinance, home equity, and servicing according to Q2 2026 Inside Mortgage Finance rankings.
• The company gained market share in both purchase and refinance segments quarter-over-quarter and year-over-year.
• Redfin visitors clicking to start a purchase mortgage transaction on home listings increased 50% year-over-year.
• Redfin's contribution to Rocket's refinance leads more than doubled in Q3 2026.
• Cumulative unique listings through the Compass partnership reached nearly 40,000, up from roughly 25,000 in the prior quarter.

Risks and Challenges:

• The press release notes that mortgage rates climbed to a three-year high during the quarter.
• Forward-looking statements are subject to risks and uncertainties described in the company's Form 10-K, including factors that could cause future events or results to differ materially.

Management Commentary and Tone:

• CEO Varun Krishna stated the company delivered its highest profitability margin in nearly five years despite rising rates.
• Management emphasized that the company acquired distribution, connected real estate and mortgage, and invested heavily in technology over the last three years to change business economics.
• The CEO noted that the company did not wait for rates to fall, instead taking share and growing profits as rates increased.
• The recapture engine connecting origination with the servicing portfolio reached its highest recapture levels to date, with about two-thirds of home equity clients also having their first mortgage serviced by Rocket year-to-date.

Other Key Points:

• Alessio Sanfilippo was appointed Chief Executive Officer of Redfin in August, bringing leadership experience from Meta's Reality Labs.
• Sarah Watterson was appointed as an independent director to the Board of Directors in August, increasing the board to 10 members.
• The Rocket Community Fund invested $500,000 to expand LISC Cleveland's Heirs' Property Initiative to help families secure clear title to inherited homes.
• The company retained subservicing and recapture services on nearly 70% of the $23 billion of MSRs sold in Q3 2026.
• The Up-C Collapse was effectuated on June 30, 2025, resulting in the surrender and retirement of Class D common shares.