Rocket Revenue Nearly Doubles as Mortgage Margins Expand
Adjusted EBITDA climbed more than fourfold to $766 million in the second quarter.
Rocket Companies (RKT), the mortgage and financial-services company, nearly doubled second-quarter revenue to $2.784 billion as mortgage margins widened and its other businesses grew.
The quarter marked a broad expansion across Rocket’s platform. Purchase mortgage market share rose to a record 6.2% from 5.5% in the fourth quarter of 2024, while refinance share reached a record 14.3% from 12.2%. The company also introduced a reporting structure that made Mortgage its sole segment and placed personal finance and real estate services in All Other.
Adjusted revenue increased to $2.761 billion from $1.431 billion a year earlier. GAAP net income rose to $229 million from $34 million, while diluted earnings improved to $0.08 a share from a loss of $0.01. Adjusted earnings climbed to $0.16 a share from $0.04.
Mortgage adjusted revenue rose to $2.251 billion from $1.249 billion, and contribution margin increased to $1.174 billion from $450 million. The implied contribution-margin rate expanded to about 52% from 36%. Gain-on-sale revenue increased to $1.205 billion, driven by a higher fair value for originated mortgage-servicing rights, even as gain on sale excluding that valuation slipped.
Growth extended beyond mortgage origination. All Other revenue, primarily from real estate and personal-finance businesses, increased to $510 million from $182 million, while contribution margin rose to $181 million. Redfin mortgage leads doubled in June from a year earlier and mortgage attach rates reached record highs. Rocket Loans volume nearly doubled during the first half, with more than half of those loans going to Rocket servicing clients.
Total expenses increased to $2.503 billion from $1.427 billion, trailing the pace of revenue growth. The quarter included $99 million of acquisition-related costs, $112 million of acquired-intangible amortization and a $28 million litigation accrual. Rocket also sold $53 billion in mortgage-servicing-rights unpaid principal balance for $795 million in cash, retaining subservicing and recapture services on nearly 80% of the assets sold.
Rocket forecast third-quarter adjusted revenue of $2.5 billion to $2.7 billion, compared with $2.761 billion in the second quarter. The range pointed to a sequential moderation after the second quarter’s sharp year-over-year expansion.