TLDR
- Full-year revenues reached $6.7 billion for Rocket Companies, marking a 31% yearly increase, though the firm recorded a $234 million net loss versus a $636 million gain in 2024.
- Earnings per share on a diluted basis registered at $(0.05), down from $0.21 the previous year, driven by elevated costs and acquisition-related expenses.
- Fourth-quarter profits plummeted 89% to $68 million even as revenues surged 52% to $2.69 billion.
- Shares of RKT declined 7.7% during Monday’s session, finishing at $16.79, following the disappointing earnings report.
- First-quarter 2026 revenue projections of $2.6–$2.8 billion incorporate $150 million from a warehouse interest accounting methodology change.
Shares of Rocket Companies (RKT) tumbled 7.7% during Monday trading, settling at $16.79, following the mortgage giant’s announcement of a full-year loss for 2025 despite substantial revenue gains.
The Detroit-based lender generated $6.695 billion in total revenues for the fiscal year, representing a 31% increase from the $5.101 billion recorded in 2024. However, this impressive revenue performance couldn’t counterbalance escalating operational expenses and integration costs from strategic acquisitions.
The company swung to a net loss of $234 million, a dramatic shift from the $636 million profit achieved in 2024.
Earnings per share on a diluted basis for Participating Common Stock registered at $(0.05), contrasting sharply with the $0.21 posted in the previous fiscal year.
The company reported adjusted EBITDA of $1.281 billion, a metric management emphasized as reflecting core operational performance.
Mortgage loan originations expanded 29% compared to the prior year, with volume gains across both the Direct-to-Consumer platform and Partner Network distribution channels. The company’s non-mortgage service offerings also demonstrated growth throughout the period.
The servicing portfolio’s unpaid principal balance expanded to $2.12 trillion, accompanied by increases in both mortgage servicing rights fair value and servicing fee revenues.
Q4 Earnings Weigh on Sentiment
The fourth-quarter performance mirrored the annual trends. Revenues jumped 52% to $2.692 billion from $1.769 billion in the year-ago quarter, while net income crashed 89% to merely $68 million compared to $649 million in Q4 2024.
This disconnect between robust top-line performance and deteriorating profitability seemed to trigger Monday’s stock decline.
The company finalized two major acquisitions during 2025—Redfin and Mr. Cooper—both contributing significantly to elevated integration costs. Additionally, Rocket completed its Up-C corporate restructuring during the fiscal year.
The mortgage lender also executed a comprehensive unified brand repositioning initiative and increased marketing expenditures throughout the year, driving improved customer acquisition metrics and subscriber growth for Rocket Money.
Q1 2026 Guidance and Accounting Change
Looking ahead to Q1 2026, management issued revenue guidance ranging from $2.6 billion to $2.8 billion. This projection implies year-over-year growth of approximately 151% to 170% versus the $1.037 billion generated in Q1 2025.
Investors should be aware, however, that this forecast incorporates $150 million stemming from an accounting methodology adjustment.
Beginning this quarter, the company is reclassifying warehouse interest costs on loans held for sale from a contra-revenue category to a direct expense line item. Management clarified that this modification inflates both reported revenues and expenses equally, leaving net income and cash flow unaffected.
The pre-tax loss for the complete fiscal year totaled $(214) million, reflecting the burden of integration activities and expense items connected to the strategic acquisitions.
The Form 10-K filing, made public on March 2, provided complete details of these financial results, and the stock’s Monday performance indicated investor dissatisfaction with profitability levels despite the revenue outperformance.
RKT shares concluded Monday’s trading session at $16.79, representing a 7.7% decline for the day.
