Rocket Companies Lifts Third-Quarter Profit to $709 Million

The Tip Desk · October 29, 2026 · 3 min read

GAAP net income reached $709 million on $3.28 billion of total revenue, net, as the homeownership platform posted a $710 million MSR valuation loss.

Rocket Companies (RKT), the Detroit-based homeownership platform, reported GAAP net income of $709 million for the third quarter ended September 30, 2026, compared with a $124 million loss a year earlier, as total revenue, net, rose to $3.28 billion from $1.70 billion.

Adjusted net income was $419 million, or $0.15 a share, versus $158 million, or $0.07 a share, a year earlier. Adjusted EBITDA was $748 million.

Chief Executive Officer Varun Krishna said Rocket gained market share in both purchase and refinance, quarter over quarter and year over year, and delivered its highest profitability margin in nearly five years even as mortgage rates climbed to a three-year high.

The GAAP result included a $710 million loss on the change in fair value of mortgage servicing rights and related liabilities due to valuation assumptions, net of hedges. Adjusted revenue, which excludes that item, was $2.57 billion.

Origination volumes receded from the second quarter. Excluding correspondent, net rate lock volume fell to $30.4 billion from $36.9 billion, and closed mortgage loan origination volume fell to $33.5 billion from $39.2 billion. Direct to Consumer generated $22.1 billion in net rate lock volume and $24.6 billion in closed volume. Rocket Pro generated $8.2 billion in net rate lock volume and $9.0 billion in closed volume. Correspondent generated $10.0 billion in net rate lock volume and $10.1 billion in closed volume.

Gain on sale margins moved the other way. Excluding correspondent, gain on sale margin was 3.33%, up from 3.11% in the second quarter. Direct to Consumer gain on sale margin was 4.31%. Rocket Pro gain on sale margin was 0.70%. Total gain on sale margin was 2.54%. Correspondent gain on sale margin was 0.15%.

The Mortgage segment, which includes origination, servicing, title, closing and appraisal, generated $2.80 billion of total revenue, net, and $2.09 billion of adjusted revenue. Contribution margin was $1.14 billion. All Other, which includes real estate services and personal finance, contributed $482 million of total revenue, net, and $189 million of contribution margin.

Loan servicing income, net, was $1.19 billion, including $1.03 billion of servicing fee income. Interest income was $550 million. Gain on sale of loans, net, was $1.03 billion.

MSR sales totaled $23 billion of unpaid principal balance in the third quarter, generating $379 million of cash proceeds, down from $53 billion of UPB and $795 million of cash proceeds in the second quarter. The company said it retained subservicing and recapture services on nearly 70% of the MSRs sold.

The servicing portfolio unpaid principal balance was $2.0 trillion, or 9.1 million loans, as of September 30, 2026, unchanged from June 30. Cash and cash equivalents were $2.7 billion. Total liquidity was $11.4 billion, including $2.5 billion of undrawn lines of credit and $6.2 billion of undrawn available MSR and advance lines.

Rocket said Rocket Mortgage was the No. 1 mortgage lender by volume, as well as No. 1 in purchase, refinance, home equity and servicing, according to second-quarter 2026 Inside Mortgage Finance rankings. It said AI pulled credit on nearly 20% of Direct to Consumer loan volume before a client spoke with a loan officer, and that digital mortgage applications made up more than 40% of all retail refinance applications. In servicing, an AI voice platform handled 65% of inbound calls and resolved more than half of them on its own.

For the fourth quarter of 2026, the company expects adjusted revenue between $2.1 billion and $2.3 billion.