TLDR
- Rocket Companies delivered annual revenue of $6.7 billion, representing a 31% year-over-year increase, while recording a net loss of $234 million compared to a $636 million profit in 2024.
- Diluted EPS reached $(0.05), down from $0.21 in the previous year, driven by elevated expenses and acquisition-related costs.
- Fourth quarter net income plunged 89% to $68 million even as revenue surged 52% to $2.69 billion.
- Shares of RKT declined 7.7% during Monday’s trading session, settling at $16.79, following the earnings announcement.
- First quarter 2026 revenue outlook of $2.6–$2.8 billion incorporates $150 million from a warehouse interest accounting reclassification.
Shares of Rocket Companies (RKT) experienced a 7.7% decline on Monday, finishing the session at $16.79, after the mortgage lender disclosed an annual net loss for 2025 alongside significant revenue expansion.
The Detroit-based company generated total revenue of $6.695 billion for the full year, marking a 31% increase from the $5.101 billion achieved in 2024. However, this substantial top-line performance failed to compensate for mounting operational costs and financial burdens associated with recent corporate acquisitions.
The company recorded a net loss of $234 million, representing a dramatic shift from the $636 million net income reported in 2024.
Diluted EPS of Participating Common Stock registered at $(0.05), marking a decline from the $0.21 achieved in the previous fiscal year.
Adjusted EBITDA reached $1.281 billion, a metric the company emphasized as reflecting core operational performance.
Loan originations expanded 29% compared to the prior year, with volume growth occurring across both the Direct-to-Consumer and Partner Network segments. The company’s non-mortgage service offerings also experienced expansion throughout the reporting period.
The servicing unpaid principal balance reached $2.12 trillion, accompanied by increases in both mortgage servicing rights fair value and servicing fee income.
Q4 Earnings Weigh on Sentiment
The fourth quarter results mirrored the annual trends. Revenue jumped 52% to $2.692 billion from $1.769 billion in the year-ago period, while net income experienced a sharp 89% contraction to just $68 million compared to $649 million in Q4 2024.
This divergence between robust revenue performance and weakened profitability appeared to trigger Monday’s market reaction.
The company finalized acquisitions of both Redfin and Mr. Cooper during the fiscal year, transactions that generated elevated integration expenses. Additionally, Rocket completed its Up-C corporate restructuring during 2025.
Management also executed a comprehensive unified brand restaging initiative throughout the year while increasing marketing expenditures, actions that drove customer acquisition metrics higher and expanded Rocket Money subscriber totals.
Q1 2026 Guidance and Accounting Change
Looking ahead to Q1 2026, Rocket provided revenue guidance ranging from $2.6 billion to $2.8 billion. This forecast suggests growth of approximately 151% to 170% relative to the $1.037 billion recorded in Q1 2025.
Investors should recognize that this guidance incorporates $150 million stemming from an accounting methodology adjustment.
Beginning with the current quarter, Rocket is moving warehouse interest on loans held for sale from a contra-revenue classification to direct expense treatment. Management clarified that this modification elevates both reported revenue and expenses equally, producing zero impact on net income or cash flow metrics.
Loss before income taxes for the complete fiscal year totaled $(214) million, demonstrating the influence of integration activities and expense categories connected to the acquisition strategy.
The company’s 10-K filing, published March 2, provided comprehensive details regarding these financial results, and Monday’s stock performance indicated Wall Street’s disappointment with profitability metrics despite the revenue outperformance.
RKT concluded Monday’s trading at $16.79, representing a 7.7% decrease for the session.
