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Image source: The Motley Fool. Thursday, Aug. 6, 2026, at 4:30 p.m. ET Chief Executive Officer-Varun Krishna President and Chief Financial Officer-Brian Nicholas Brown Investor Relations-Sharon Ng Operator: Good day, everyone, and welcome to The Rocket Company Second Quarter 2026 Earnings Conference Call. Just a reminder that today's conference is being recorded. At this time, I would like to hand the call over to Ms. Sharon Ng. Please go ahead, ma'am. Sharon Ng: Good afternoon, everyone, and thank you for joining us for Rocket Company's earnings call covering the second quarter 2020. With us this afternoon are Rocket Company's CEO, Varun Krishna and our President and CFO, Brian Nicholas Brown. Earlier today, we issued our second quarter earnings release. Which is available on our website at rocketcompanies.com under Investor Info. Also available on our website is an investor presentation. Before I turn things over to Varun, let me quickly go over our disclaimers. On today's call, we provide you with information regarding our second quarter performance as well as our financial outlook. This conference call includes forward looking statements. These statements are subject to risks and uncertainties that could cause actual results to differ materially from the expectations and the assumptions we mentioned today. We encourage you to consider the risk factors contained in our SEC filings for a detailed discussion of these risks and uncertainties. We undertake no obligation to update these statements as a result of new information or further events. Except as required by law. This call is being broadcast online and is accessible on our investor relations website. Recording of the call will be posted later today. Our commentary today will also include non GAAP financial measures. Reconciliations between GAAP and non GAAP metrics for reported results can be found in our earnings release issued earlier today as well as in our filings with the SEC. And with that, I will turn things over to Varun Krishna to get us started. Varun? Varun Krishna: Good afternoon, everyone, and thank you for joining our second quarter 2020 earnings call. Today, I will cover the market, our second quarter results, and Rocket's performance. Let's go ahead and start with the market. The industry expected a normal spring home buying season. Instead, affordability deteriorated as mortgage rates moved higher through May and June. Purchase and refinance demand as a result weakened during what is typically the strongest quarter of the year and industry forecast moved lower as the quarter progressed. Simply said, it was 1 of the toughest spring housing markets in years. Now against that backdrop, Rocket delivered 1 of its strongest quarters in recent memory. We gained market share in both purchase and refinance. We delivered our most profitable quarter in 4 years. We expanded adjusted EBITDA margins and integration of Redfin and Mr. Cooper are well ahead of plan. Adjusted revenue was $2.8 billion, near the midpoint of our guidance. Adjusted EBITDA margin expanded to 28% up from 26% in the first quarter. Adjusted diluted EPS increased to $0.16. Now our North Star is profitable market share growth. And we reached a new record this quarter. Purchase share increased to 6.2%, up from 5.5% in Q4 of last year. Refinance share increased to 14.3%, up from 12.2%. This performance was not a coincidence. It was the result of years of deliberate investment, focused execution, a business model that has fundamentally evolved. Today, more than 70% of our revenue comes from recurring or less rate sensitive businesses. Servicing provides a durable recurring revenue foundation. Purchase mortgages, home equity, personal loans, and Redfin diversify us across broader parts of the housing market. Today, Rocket is the largest in both servicing and origination. And our recapture engine connects to these 2 things. Just as importantly, all of our businesses reinforce 1 another. Redfin brings clients into the Rocket ecosystem earlier. Mortgage helps them finance 1 of life's biggest decisions. Servicing keeps that relationship alive for years. Additional products allow us to continue serving these same clients as their needs evolve. Artificial intelligence strengthens every step of that journey. It improves productivity, personalization, and conversion across the entire platform. So the important point is not that we have added new businesses. it is that we have changed the economics of the business fundamentally. Our recurring revenue base is larger. Our client relationships last longer. Our acquisition costs improve as these businesses reinforce 1 another. And our operating leverage expands as AI increases productivity across this platform. This is the business we have been building. 1 with a stronger floor in difficult markets, and significantly more upside when housing activity returns. that is what gives us confidence that Rocket's long term earnings power is fundamentally stronger than it was just a few years ago. Now let me take a second and show you how that came to life during the second quarter. Home ownership begins long before a mortgage application. It begins with home search. that is what makes Redfin such an important part of Rocket's strategy. Historically, Rocket entered the relationship when a client decided to finance a home. Today, we are increasingly entering months earlier while they are still searching. That completely changes the economics of client acquisition. Redfin reaches roughly 50 million monthly active users, with some of the highest engagement and retention in online real estate. Those users are not casually browsing. They are actively preparing to buy or sell a home. We are turning that intent into action. Product improvements and proprietary AI models have increased lead conversion by roughly 30% over the past year. Helping more clients move from searching to touring, financing, and closing. And when buyers are ready to finance, Rocket is already part of the experience. Eligible servicing clients who buy and sell through Redfin and finance with Rocket Mortgage can save up to $20 thousand. that is a meaningful affordability advantage in today's market. We are seeing it translate into results. In June, mortgage leads from Redfin more than doubled year over year. The mortgage attach rate with Redfin agents reached 47%, approaching our synergy target of 50%. Inventory is yet another differentiator. Through our Compass partnership, Redfin continues expanding unique inventory that is not available on other major home search portals. In markets like Chicago, that advantage is already driving meaningful increases in both homebuyer and mortgage leads. Nationally, Redfin now offers 25 thousand exclusive listings. More inventory attracts more serious buyers. More serious buyers create more financing opportunities. that is why Redfin matters. It allows us to build relationships earlier convert them more effectively, and increase the lifetime value of every client who enters the Rocket ecosystem. The advantages we are creating upstream continue through mortgage origination. Sales is still very much a human craft. It takes judgment, empathy, and timing. Technology does not replace that. It just makes our people better at it. Our loan officers provide judgment, advice, and trust, and they are the best in the business. Artificial intelligence only makes them better. By removing administrative work and helping our teams focus on the right opportunities at the right time AI allows our loan officers to spend more time helping clients and less time managing processes. We are already seeing significant impact. Compared with just 1 year ago, our loan officers are serving nearly 40% more clients, while delivering double digit improvements in conversion at the same time. Those gains really matter today, and they matter even more as the market recovers. As mortgage volumes increase, we believe we can expand profitability faster without growing our cost structure at the same pace. This is 1 of the biggest structural changes happening inside Rocket. AI is not simply making people more productive. it is actually increasing the earnings power of the business through operating leverage. We are applying that same approach across the entire company. Servicing remains 1 of Rocket's greatest competitive advantages. It generates durable recurring revenue while creating long term relationships with millions of clients. Those relationships become more valuable every year they remain inside the Rocket ecosystem. During the second quarter of this year, we completed 1 of the largest servicing migrations in our industry's history. Bringing our servicing clients onto a single platform. That milestone is about so much more than technology. It creates 1 foundation for how we serve clients deploy AI, and identify opportunities across the business. Earlier this year, we launched Voice AI for inbound servicing calls. It has now handled more than 1 million calls with more than half resolved without requiring a servicing specialist. Clients receive faster service, and our servicing experts spend more time solving the complex situations where human judgment matters most. Every interaction improves our understanding of the client and helps us identify opportunities to refinance, access home equity, purchase another home, or use another Rocket product. that is what makes our servicing different. It is not just a recurring revenue business. it is the engine that continuously creates future origination opportunities. Today, Rocket is both the nation's largest mortgage servicer and the nation's largest mortgage lender. Very few companies have both. That combination allows us to deepen client relationships over time instead of rebuilding them with every new transaction. So the economics are fundamentally different. Every year, we keep a client. We improve the probability of serving them again while reducing the cost of doing so. Artificial intelligence simply accelerates that advantage by improving client experiences strengthening recapture, and increasing productivity across the entire platform. The result is a business with a stronger recurring earnings based today and even greater operating leverage when housing activity recovers. The power of this business model is what it allows us to build on top of this platform. Because we already have trusted client relationships, servicing scale, AI capabilities, and distribution, we can expand into adjacent businesses faster and more efficiently than any company starting from scratch. Home equity is 1 great example. We entered the category just 4 years ago. Today, Rocket is the nation's largest home equity lender. Since launch, we have helped 250 thousand homeowners access over $24 billion of their home equity. Rocket is the first independent mortgage company to lead the category. That milestone demonstrates something far larger than just success in a single product. It shows the advantage of building new businesses on top of an existing client base rather than acquiring every new customer from the beginning. Rocket Loans tells a very similar story. Loan volume nearly doubled year over year during the first 6 months of 2026, culminating in a record month in June. More than half of those loans come from existing Rocket servicing clients. That simply reinforces the strategy we have been executing for years. Each additional product strengthens the client relationship. Each stronger relationship creates another opportunity to serve that client over time. Lifetime value increases while future acquisition costs decline. that is the economic engine we are building. We are not assembling a collection of products. We are building a business where every product makes every other product more valuable. The same dynamic extends to our partner ecosystem. Through our Compass partnership, RocketPro brokers have originated more than $2 billion of net rate lock volume. Consumers agents, and brokers all benefit from a more connected experience and every additional participant strengthens that network. Those advantages compound over time. I will close with this. The second quarter tested the housing industry. Higher rates reduced affordability. Demand softened. The spring market fell well short of expectations. But against that backdrop, Rocket reached record market share in both purchase and refinance, delivered its most profitable quarter in 4 years, and continued executing ahead of plan. Those results reinforce what we have been building for years. Rocket today is fundamentally different from the company we were just a few years ago. We have a larger recurring revenue base. Longer client relationships, higher operating leverage, and more opportunities to serve clients throughout the homeownership journey. We cannot control where mortgage rates go next quarter, We can control the business we build. Quarter after quarter, we are building 1 with a stronger floor in difficult markets and significantly more upside when housing activity returns. Competitors may have pieces of this model. No 1 has integrated it the way that Rock has. that is why we believe Rocket's long term earnings power is stronger than at any point in our history. And with that, Brian, over to you. Brian Nicholas Brown: Thank you, Varun, and good afternoon, everyone. Today, I will discuss our second quarter results and the record market share gains we delivered in a challenging market. I will also cover capital position and integration progress. Varun Krishna: I will close with our outlook for the third quarter. Brian Nicholas Brown: Let's start with the second quarter's results. Adjusted revenue was $2.8 billion near the midpoint of our guidance range. We generated $47 billion in total net rate lock volume, and $49 billion in total closed loan volume. Gain on sale margin, excluding correspondent, was 311 basis points. that is compared to 22 basis points in the first quarter. Adjusted EBITDA was $766 million representing an adjusted EBITDA margin of 28%, up from 26% in the first quarter. Adjusted diluted EPS was $0.16, up from $0.15 in the first quarter making this our most profitable quarter in 4 years. Our market share gains in the second quarter were impressive. In fact, we achieved our highest ever quarterly market share in both purchase and refinance. Based on industry estimates, purchase market share came in at 6.2% and refinance market share was 14.3% in the second quarter. This represents a 13% increase in purchase market share from fourth quarter and a 17% increase in refinance market share. These results reflect the structural advantages of our business model. First, a diversified revenue base that provides stability with built in upside. Second, unique assets, including the industry's largest servicing portfolio, and Redfin's purchase funnel that drives share gains at a very low cost of acquisition. Third, a cost advantage across origination and servicing where scalable capacity and expense synergies keep fixed costs flat while volume grows. Let me unpack each of these a little more. Starting with our balanced revenue model. Sensitive. More than 70% of our revenue is recurring or less rate sensitive. Servicing fee income and Rocket Money subscription revenue are recurring. The purchase business, cash out refinance, home equity loans, as well as the red business, operate in a large and less rate sensitive category. The remaining 30% includes rate and term refinance, which carries the most rate exposure, but it is also our greatest source of upside when rates fall. And the good news is we have over $300 billion of origination capacity that is primed to capture this upside. In Q2, this balanced business model drove our operating results. Servicing generated $1 billion of steady cash flow while less rate sensitive products, including purchase, cash out refinance, and home equity loans contributed to the majority of gain on sale revenue. Let's turn to our unique assets. The industry's largest service portfolio connected to a powerful recapture engine and Redfin's purchase top of funnel. These assets are hard to replicate. And they allow us to acquire clients at a fraction of the industry's average cost. Because these clients are already in our ecosystem. Those assets delivered in the second quarter. On the purchase side, the Redfin integration is paying dividends. Mortgage leads from Redfin in June doubled year over year. Mortgage attachment, the percentage of Redfin buy side clients who finance with Rocket Mortgage, has reached 47%. Approaching our 50% target. That momentum helped drive the direct to consumer purchase volume up 45% year-over-year. And on the refinance side, our servicing portfolio drove share gains across rate and term, cash out, and home equity loans. Existing service clients accounted for 57% of refinance closed volume, up from 54% in Q1. And those closings come with near zero client acquisition costs. Recapture rates on the Mr. Cooper portfolio reached another record. And we are more than halfway to realizing our Mr. Cooper revenue synergy target on an annualized run rate basis. The clearest example of these assets working together is preferred pricing. Service clients who buy and sell with Redfin and finance with Rocket Mortgage can receive up to $20 thousand in combined savings. We can offer an incentive of this size for 1 simple reason. We own the search portal, the real estate brokerage, the mortgage financing, the title and closing, and the servicing. Historically, these are 4 or 5 separate companies all with different experiences and different client acquisition models. As I mentioned, our cost to acquire these clients is nearly zero. We pass these structural advantages right back to the client. Directly addressing affordability, which is the biggest barrier in today's housing market, while deepening relationships across the ecosystem. This brings me to the third advantage. We operate origination and servicing at a significant cost advantage when compared to industry averages. And that gap is widening. Technology advancements are expanding the capacity every production team member. Our tools help loan officers drive double digit conversion improvement while working with nearly 40% more clients than just 1 year ago. This allows us to keep fixed costs flat. While volume grows. And once fixed costs are covered, incremental revenue drops to the bottom line in a very high rate. Expense synergies are amplifying this advantage. quarter, we realized $100 million of annualized Mr. Cooper expense synergies in the In line with our expectations. We remain on track to achieve the full $400 million target by year end. This is how our business model delivers in tough markets. And in more favorable ones. Since completing the Redfin and Mr. Cooper transactions in the back half of last year, we have grown share and expanded profitability for 3 straight quarters. Across both rising and falling rate environments. Everything I just described runs on a foundation of balance sheet strength. In a market like this 1, capital is not just defense. it is offense. It is what allows us to invest through the cycle and move quickly when opportunities arise. While others are forced to pull back. We ended the quarter with $11.2 billion of liquidity, up $1.8 billion from the first quarter. In June, we refinanced existing debt through a successful senior note offering. That execution was supported by our investment grade rating and credit profile that keeps getting stronger. Net corporate leverage ended the quarter at 0.9x. 20% lower since year end. Part of maintaining that balance sheet strength is treating our MSR portfolio as the strategic asset it is actively managed not passively held. During the quarter, we sold a portion of our low coupon MSRs at a attractive market prices. But we did not sell off the client relationship. We retain the subservicing on those MSRs, And even more importantly, we retain the ability to do recapture and the related economics. Even after these sales, our servicing portfolio ended the second quarter at $2 trillion of unpaid principal balance. These sales also rebalance the composition of our portfolio. Toward higher average note rates. Today, 26% of our owned MSR portfolio, or $320 billion of unpaid principal balance carries a note rate above 6%. This is a large pool of clients who are first in line to refinance when rates fall. And hours to recapture. Looking ahead, we expect the housing market to remain challenging in the near term. In recent weeks, expectations of higher future inflation pushed the 30 year fixed rate to 6.8%. 50 basis points higher than the average rate during the first half of the year, and the highest level in more than a year. These pressures are weighing on both purchase and refinance activity. Existing home sales remain near 4 million on an annualized basis, while pending sales and purchase applications continue to decline. The expected housing recovery in 2026 has not materialized. As increasing rates continue to pressure affordability. Last quarter, we told you our real time data indicated a tougher market than industry forecast suggested. And that is exactly how the second quarter played out. Today, the same data leads us to expect the third quarter mortgage market to be smaller than the second. Something the industry has not seen since 2022. With that context in mind, we expect adjusted revenue to be between $2.5 billion and $2.7 billion in the third quarter. This guidance implies continued market share gains in both purchase and refinance. At the midpoint of the guidance, we expect expenses to be approximately $2.35 billion. That includes approximately $110 million of intangible amortization, $90 million of stock based compensation, and $100 million of onetime acquisition related costs. Excluding those items, expenses are expected to decrease approximately $100 million quarter over quarter. I am also happy to report that our progress on integration synergies will continue beyond the third quarter. With the major Mr. Cooper integration milestones complete, we now have line of sight into approximately $100 million of annualized expense savings above our original goal of $400 million. We expect to realize these in the first half of 2020. Let me close with this. Rocket's platform is performing as designed. We expanded profitability in a volatile market. We gained share. We realized synergies and increased our goal. We strengthened the balance sheet. And we continue to invest through the cycle. Rocket is built to perform today and accelerate when the market recovers with growth converting into operating leverage, margin expansion, and stronger earnings power. With that, I will turn it back to the operator. Operator: Thank you, sir. At this time, we will take your questions. If you have a question today, press 1 on your telephone keypad. We do ask that you limit your questions to 1. Once again, that is 1 if you have a question. And your first question will come from Ryan McKeveny, Zelman. Ryan McKeveny: Hey, thank you for all the details and taking the questions. Maybe just a high level 1. You called out the tough industry conditions in the second quarter that have continued into the third quarter. Rates, as I think Brian just mentioned, are now up year over year. So can you talk a bit more about just the macro backdrop that you see playing out right now, the macro backdrop that is embedded you know, within the within the guidance. And you know, lastly, maybe just on the on the expense side, probably also for Brian, I think what I just heard you say is that the expectation for 3Q is for expenses to be down $100 million sequentially from 2Q. Obviously, the revenue guide is down sequentially as well. So should we think about that step down in expenses as just a function of the revenue side? Or should we think of that 3 q as a decent run rate going forward? Thank you guys so much. Varun Krishna: Ryan, thanks for the question. it is great to hear from you. Let me let me start with the market and kind of macro backdrop. Then I am going to ask Brian to talk us through the quarter and our guide as well as your question around expense. I will start by saying, look, there is no question that Q2 was tougher than the industry expected. You had rates rising 26 basis points from their April lows. You had rate and term refinance under more pressure. And we all saw that this normal spring and summer purchase season was just weaker than in prior years. But I think what I would emphasize is the bottom line is that this was not a huge surprise to us. And on our last call, we shared with all of you the this market was shaping up to be smaller than the forecast. And that is pretty much exactly what happened. I think the good news that I would share is that we saw this coming. We were ready. And I would argue that our results show it unequivocally. We gained share in purchase and refi. We expanded profitability for the third quarter in a row. I think what you are starting to see is what is unique about Rocket is really separating it from the rest of the industry. More than 70% of our revenue is now less rate sensitive. That allows us to keep investing while others are actually forced to react. And so we expect that to become a structural advantage That will continue to be a strength for us in Q3. And that is why we feel pretty good about our guide that we put out for Q3. And so with that, sort of market backdrop, Brian, maybe you can unpack the Q2 performance and guide and expenses. Brian Nicholas Brown: Yeah. Thanks, Varun. Ryan, good to hear from you. Let me let me double click on Q2 real quick because I do think it was impressive for many reasons, but particularly as Varun mentioned, the increase in market share coupled with the increase in profitability. So it is probably just worth spending a bit on those market share gains. If you look at on the refinance side, which had significant increases, it was largely attributable to the recapture increases and being ahead of goal on that synergy value. So, of course, that is great to see. And then the purchase side, it is really twofold. 1 is the additional lead flow coming from the Redfin site Rocket Mortgage. We talked about that being up double year over year, which continues to fuel those share gains. And then finally, the Compass partnership. We have talked to you guys about that before, but particularly in the pro space, is has really gained some traction. So that is also contributing to some of those purchase share gains. But let me let me transition over to Q3 in the guidance to answer the second part of your question, Ryan. You know, we always include what we are seeing in real time. We told you last quarter that we thought Q3 or excuse me, Q2 was gonna be down. Look, it is it is a challenging market. Most of the industry forecasters have a the second half being smaller, and that feels right based on what we are seeing. But the guide of $2.5 to $2.7 billion, we still feel is a very strong guide. And all else being equal, that will that will be another quarter of significant share gains. On the gain on sale margin perspective, it is probably worth noting we are seeing margins hold steady, and even some improvements at the channel level. So all in all, we expect Q3 to be another strong share gain quarter for Rocket. You mentioned on the expenses, yeah, I think expenses will be down the second half of the year as I as I said. The $100 million from Q2 to Q3 is really a primarily a result of that synergy value coming through the p and l. There is a little volume, you know, the variable expenses associated with volume in there. So to answer your question on the baseline perspective, remember, we said we are about halfway through the realization of the $400 million goal as of the end of Q2. And the other $200 million we expect to be realized in the second half of this year. So that hopefully gives you a little more color on the expense side. Ryan McKeveny: Perfect. Thank you so much. Operator: The next question will come from Jeffrey Adelson, Morgan Stanley. Jeffrey Adelson: I was hoping you could maybe talk about the competitive state of the market today. Are you seeing any market share come your way perhaps given a bit of a tougher backdrop out there and some pressures on your larger peers? Or do you think more of that is a result of, you know, the execution Brian, you just talked about Redfin as well as the recapture from the Cooper deal? And it just maybe related to that, you know, it looks like you have been pretty active in the rocket pro channel year to date. You had the power play initiative, the 12-business-day guarantee. Closing. Can you talk about how that is also maybe driving your market share as well? Varun Krishna: Jeff, it is great to hear from you. Look, I think I would start by saying that we believe that competition and really in any market is healthy. Right? It pushes companies do their best It creates better outcomes for clients We respect our competitors, but, honestly, we do not spend a lot of time really thinking about them. We focus on building the company we believe should exist. But with that said, think it is important to also highlight that this particular market and the tough market that we are in what it does expose is where a competitor's business model is narrow. And to give you, like, a couple of examples, you know, if you only originate then you have an Achilles' heel, which is that you get exposed when rates rise. And when volume falls. If you only service, but you do not have recapture, then you do not get to participate fully in that next transaction, and you have likely a retention problem. If you only have traffic and you cannot convert it into a mortgage, then you will only own a small fraction of the economics. And I could keep going. Right? If you do not bet big on technology as we have, you will be commoditized. If you do not manage your capital well, you will become distressed. And so what you are starting to see is that separation. You are starting to see this happen across the landscape. that is really why Rocket is built very differently. Right? We originate. We service. We recapture. Our technology makes the entire platform work as 1. Our capital structure is extremely robust. So what you are starting to see is that separation, and we actually think that separation will accelerate as the market improves. And so the you know, that is kind of the core answer. I think in terms of the pro business, Brian, maybe you wanna add some more commentary. Brian Nicholas Brown: Yeah of course. I do just wanna touch on your capital point because I think that is a important point, particularly this quarter. You know, just as a reminder for the group, we are the only mortgage company with an investment grade rating. When I look across the publicly traded mortgage companies, we are the only publicly traded mortgage company with less than 1x leverage. We have over $11 billion of liquidity, and we just strengthen that liquidity position through a successful $1.5 billion senior note offering. So, you know, the capital differentiation keeps widening in our space, and I think that is important for both defense and offense. But Jeff, to answer your question on the pro side, yeah, look. It The pro business is a very important part of our ecosystem. As Varun mentioned in his prepared remarks that we have done over $2 billion in locks related to that Compass partnership. that is great to see. We are offering a pricing incentive. Which is the right thing to do when you enter a big partnership, and we need to you know, get these Compass agents excited about the partnership. But the momentum we are seeing in terms of signing up new brokers to Rocket has never been greater than what we are seeing right now. And the beautiful part about this is the brokers we are signing up are brokers that are coming to us from in a lot of cases that have relationships with Compass agents. So the more Compass agents we work with, the more brokers we have, and the more brokers we have, the more Compass agents we have, a true demonstration of a network. Jeffrey Adelson: Great. Thanks for taking my question. Operator: Up next, we will hear from Ryan Nash, Goldman Sachs. Ryan Nash: Hey. Good afternoon, guys. So you know, obviously, there is a lot of moving pieces on the 3Q guide. Costs are coming down with revenues, and maybe there is some cost saves. And I know the company was very aggressive in managing costs during the 2022 to 2020 time frame when the market was pretty challenging. So as we enter this next phase of higher rates, maybe just talk about what left to do on the cost side and given all the AI investments. How meaningful can you bring down costs from here if revenues prove to be more challenging than expected? Thank you. Brian Nicholas Brown: Yeah. Thanks, Ryan. I will jump in on that 1. I mean, I think look, the biggest takeaway from this call is the additional $100 million of synergy value that we talked about at the end of the prepared remarks, that is above and beyond the $400 million in our previously stated goal. And, obviously, a pretty significant increase. The question may be, you know, where is that coming from? Well, as Varun mentioned, we just completed the biggest servicing loan integration in recorded history And now that we are beyond a lot of those big milestones, we have a line of sight to some more synergy value. that is that is first and foremost what is on our mind in achieving that in the first half. of 2027. But as you know and you mentioned, we have always taken a very disciplined approach to the cost side of the house, the our technology advancements and AI advancements are only increasing that. 1 thing I do wanna leave you with, because I think it is important, you know, we have seen others sort of react to the market sizing and their cost base. And, of course, there is nothing wrong with that, but this is true synergy value from the 3 companies coming together, and it is not impacting our capacity. So we still have over $300 billion of capacity to take advantage of upside if and when rates move. Got it. Ryan Nash: And maybe as a if I could squeeze in a follow-up, you know, it is good to see the market share increases that you have had with over 6 in purchase and over 14 in refinance. And I know you mentioned further gains here. But can you maybe just talk about, you know, the drivers of reaching the 8% and 20% you had laid out several years back? Maybe how does the new rate environment impact your ability to achieve this? Thank you. Varun Krishna: Yeah. Absolutely. You know, I would start by just saying we feel very good about the progress toward our market share goals, and I am going to try to break down some of the key building blocks and levers. But first off, obviously, purchase shares up into the right. reaching 6.2% from 5.5% in Q4. Refi share has increased to 14.3%, that is up from 12.2%. So we are making progress, but thing I would share is, you know, this share number in its absolute sense is the outcome. it is how we keep score. I think the bigger question behind the question is, like, what building blocks are actually producing that growth? And I would highlight a couple. The first 1 is what we call recapture. And connecting servicing and origination is obviously a very core very differentiated part of our strategy. The reason for that is simple. We know the client. We have already serviced the loan. And that creates a meaningful advantage when that client is specifically ready for their next transaction. And as we shared, mister Cooper, refinance recapture reached another record. And, obviously, as Brian shared earlier, you know, we remain very well on track against our revenue synergy target But the second building block for market share is Redfin. And we think of Redfin as the doorway to all of Rocket, and the evidence is there. Right? Mortgage leads have doubled year over year. The attachment rate for mortgage is approaching nearly 50%. Redfin is a high quality serious homeowner app, and it is bringing more high intent purchase clients into the Rocket ecosystem. And that is where our Rocket Mortgage engine achieves lift off. The third thing I would also just highlight very quickly is home equity. You know, we are the largest home equity lender in the country. So you look at these building blocks, recapture, Redfin, home equity, these are 3 major drivers of our progress. And we are still early in the journey. Right? This is not a market where you have saturation dynamics among different players. So what I would pay close attention to is we gain share in purchase and refi. We expand we expanded profitability for the third quarter in a row. We are also not sacrificing profitability to chase share. Like, potentially many others are doing. So we are building the business the right way for the long term. We feel great about our progress. Other thing I would also say is, you know, we are not relying on the market to grow our share. We are taking share in a difficult environment, and historically, when rates do cooperate, we tend to take even more share. So if rates stay elevate elevated, we think the industry will cons continue to consolidate we expect to be a beneficiary of that But our North Star goal of profitable market share goal it growth, it does not change based on the market. So we feel very good about the progress. We think we are building the business the right way. that is independent of the market dynamics. Ryan Nash: Thanks, Brent. Operator: Your next question is from Bose George, KBW. Bose George: Hey, good afternoon. As you noted just that there is on the refinance recapture loans, there is no consumer no customer acquisition cost. Just wanted to ask how do you guys think about the CAC on purchase loans that you acquire, you know, through Redfin or Compass? And when you offer the incentive, like, how is that reflected in your p and l? Brian Nicholas Brown: Yeah. Thanks for the question. Bose. Yeah. On the let me start on the recapture side. We say near zero. Acquisition cost. there is a little bit that comes into that, but, of course, it is much lower than the new client acquisition cost. On purchase, you know, regardless of the channel, frankly speaking, we think about it all the same way in terms of the return. there is different ways to acquire the client. In some cases, a performance marketing cost. And then the pricing incentive, to answer your question directly, really just comes out of the gain on sale margin. But you are thinking about it the right way in terms of, you know, it is sort of the cost of acquiring that client. So it does not change how we think about it. There could be a little bit different p and l logistics in terms of marketing versus gain on sale margin, but to be clear, at the end of the day, we have a desired return on a unit basis, and we are striving to achieve that we will flex across the different channels. And a lot of it also is meeting the consumer where they are. For example, some of our businesses we talked about right now is coming from referrals from Compass agents. that is a great way to acquire clients and put them in our ecosystem. Some of it is from people coming directly to Rocket Mortgage through the direct to consumer channel. that is another great way, and we can flex that up and down. Bose George: And then you know, more and more so, the servicing business is starting to contribute to purchase growth as well. Okay. Great. that is helpful. Actually, just a quick follow-up on the earlier market share discussion. When you guys had solid growth in correspondent as well, I mean, could we see that continue and also support sort of market share growth? Brian Nicholas Brown: Yeah. Absolutely. Thanks for the question. Yeah. It was a good quarter for Correspondent. And, you know, as we have talked about on this call before, is really a way to grow the MSR portfolio. Portfolio. there is certain levers, like bulk acquisitions, correspondent, or, of course, just our organic driven business. And we did see a lot of opportunity this quarter in the correspondent space. I mean, the 1 thing I think is worth just restating is it comes back to those recapture rates. And we have the best recapture rates in the business on loans that we have originated, but we also have the best recapture rates in the business on correspondent or bulk acquisition loans. So that best recapture rate turns into best returns, which allows us to be more aggressive in the correspondent and other channels in terms of acquiring those clients because we see the best returns through recapture. Bose George: Okay. Great. Thanks. Operator: Mark DeVries, Deutsche Bank has the next question. Mark DeVries: Yeah. Thanks. This past quarter was a particularly challenging environment for hedging MSR, yet you guys seem to kind of emerge unscathed. Could you discuss your latest thoughts on how to hedge the MSR? I mean, challenges of peers incline you to want to rely primarily on recapture. Do you see a place for derivatives? Yeah. Brian Nicholas Brown: Thanks, Mark. I am glad you asked that question. I was hoping to talk about this. Our head strategy is simple, and it is consistent. I want to be very clear on that. Our goal is to hedge the interest rate volatility in the asset, and you can see particularly when you look at both Rocket and Mr. Cooper over time, that the head strategy has performed well in both environments. High rates and low rates. We only use low cost instruments like mortgage t p a TBAs and treasury futures. And, you know, the thing that is probably different when you look at Rocket compared to others is what you were alluding to that our coverage ratio, the recapture business provides a really nice natural hedge. So we do not target the same, you know, 80 to a 100% coverage because that would actually make the hedge ineffective when you include the recapture rate. So that helps us lower you know, the cost of hedging, I guess, you could say. But the point I would just leave you with is that we are not placing any bets on rates going up or down. We are not placing any market bets, to be clear. We are simply hedging the interest rate volatility in the asset itself. Mark DeVries: Got it. Thank you. Operator: The next question is from Mihir Bhatia, Bank of America. Mihir Bhatia: Hi. Good afternoon. Thank you for taking my question. I wanted to ask about 2 regulatory changes that seem to favor rocket maybe a little bit. Namely the VantageScore and the trigger lead band. Like, if I could ask specifically, like, on VantageScore, you are among the first to put it into production. What have you seen with it? What share maybe of your volume is coming through it? Is the payoff more approvals? Lower credit cost? cost on that 1? Trying to understand, like, how that is benefiting you. And then similarly on the trigger lead ban, given your servicing work, Redfin funnel, is that now put you in a more advantageous position? Are you seeing it show up yet in lower lead cost or better recapture as competitors acquisition cost get higher? Thank you. Brian Nicholas Brown: Yeah. Thanks, Mihir. I will start on the VantageScore side, and I will start by saying, look. It is early. We are all early. To your point, we were able to participate in the pilot, so we are farther along than other folks. there is there is 2, I would say, positive things about Vantage. 1 is just we welcome competition in the credit scoring models themselves. Themselves largely because we have all seen the cost increases that have come from FICO over the years. So having a competitive score is a good thing from a, you know, driving down costs and welcoming competition. But the second piece of it is, I think, where you were alluding to. There is a benefit even aside from cost advantage, and that benefit is that we do have thousands of clients that come through the system that do not have a FICO profile, or so differently. They do not have a FICO score. That actually indexes or over indexes to first time homebuyers who maybe have not built up their credit in the traditional way, that is where Vantage can really help. And I do believe there is an outsized benefit to Rocket because we help more first time homebuyers than anyone else. We are starting to see that in the results, but I will just also be balanced in saying it is early days. Your second question was on the credit triggers. Yes. The credit the benefit we are seeing in credit triggers is really not so much as the acquisition cost because as you guys know, we were not a big user, I guess you could say, of credit triggers. But you know, like other lenders, we were our clients were getting calls from other people. And so when you kinda look at the mid section of the funnel as you are getting people down the funnel in process, we are seeing better conversion rates just because those clients are not getting those calls and, you know, getting harassed by other lenders at the time we pull credit. So both of them I agree with you, are positive, a little bit early days on the advantage score, but the credit triggers are they are good for the consumers, and they are good for businesses that wanna take care of their consumer. Mihir Bhatia: You. Operator: Your next question comes from Kyle Joseph from Stephens. Analyst: Hey, good afternoon. Thanks for taking my questions. I just wanted to dig in on the MSR sales. Was that just kind of opportunistic? It sounds like it was a little bit of portfolio rotation and is kind of what your appetite is for that going forward, recognizing that it is kind of pending market conditions? Brian Nicholas Brown: Yeah. Thanks for the question, Kyle. Yeah. You know, for those of you that have followed Rocket for a long time, this is not a new thing. We have done some rebalancing. We have done some best backs, and it is, to your point, it is all about just optimizing the portfolio. You will see those prices come through in the queue, but it was a really good it was a really good trade for Rocket. We focused on the low WAC MSRs, and the good news is something to the tune of 80% of those sales went to our partners. And when I say partners, I mean folks that we already do the sub servicing and recapture abilities for. So it is sort of a win-win We took advantage of the, opportunity to sell and collect those proceeds. But most importantly, we will still be the subservicer of those loans, and we will still collect the recapture economic on those loans too, which is a win for us and a win for our partners. I think now if you look at there is $320 billion of unpaid principal in our book that has a note rate north of 6. So that look. that is a great opportunity. that is your rebalance point. If and when rates move, that will provide a great rate and term first recapture opportunity. Analyst: Great. that is it for me. Thank you. Operator: And, everyone, that is all the time we have for questions today. I would like to hand the conference back to Varun Krishna for any additional or closing remarks. Varun Krishna: Well, thank you, everybody, for listening, and we look forward to seeing you next quarter. Operator: And once again, ladies and gentlemen, that does conclude today's conference. We would like to thank you all for your participation. You may now disconnect. Before you buy stock in Rocket Companies, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Rocket Companies wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $421,943!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,382,819!* Now, it’s worth noting Stock Advisor’s total average return is 983% — a market-crushing outperformance compared to 216% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of August 14, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has positions in and recommends Rocket Companies. The Motley Fool has a disclosure policy. Rocket Companies (RKT) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Interested in Rocket Companies, Inc.? Here are five stocks we like better. Rocket Companies reported its most profitable quarter in four years, with $2.8 billion in adjusted revenue, $766 million in adjusted EBITDA and a 28% margin. The company also expanded purchase and refinance market share despite weak housing conditions and elevated mortgage rates. Redfin and Mr. Cooper integrations are progressing, supporting lead generation, AI-driven conversion gains and cost savings. Rocket achieved $100 million in annualized Mr. Cooper synergies during the quarter and expects another $100 million beyond its original $400 million target by the first half of 2027. Management remains cautious on the housing outlook, citing a 6.8% 30-year mortgage rate and declining purchase activity. Rocket forecast third-quarter adjusted revenue of $2.5 billion to $2.7 billion, while expecting expenses to fall as integration savings take effect. Rocket Companies Turns Around, But Mortgage Risk Remains Rocket Companies (NYSE:RKT) reported second-quarter 2026 results that it described as its most profitable quarter in four years, despite what management characterized as one of the housing industry’s toughest spring markets in recent years. CEO Varun Krishna said higher mortgage rates in May and June further reduced affordability and weakened both purchase and refinance demand during what is typically the strongest seasonal period for home buying. Still, the company said it gained market share in both categories, expanded adjusted EBITDA margin and progressed ahead of plan on the integrations of Redfin and Mr. Cooper. → Sandisk Just Delivered a Blowout Quarter—Here's Why the Stock Is Falling 3 Stocks Well Below 52-Week Highs Poised for a Q4 Rebound Rocket reported adjusted revenue of $2.8 billion, near the midpoint of its guidance range. Total net rate lock volume was $47 billion, while total closed loan volume reached $49 billion. Gain-on-sale margin excluding correspondent business was 311 basis points, compared with 322 basis points in the first quarter. Adjusted EBITDA totaled $766 million, representing a 28% margin, up from 26% in the prior quarter. Adjusted diluted earnings per share rose to $0.16 from $0.15 in the first quarter. → 4 Oil and Gas ETF Plays as Prices Stay Sky-High 3 Fintech Stocks That Are Set to Rise as Rates Fall President and CFO Brian Brown said Rocket achieved its highest quarterly market share in both purchase and refinance lending. Based on industry estimates, purchase market share was 6.2%, up from 5.5% in the fourth quarter of 2025, while refinance share was 14.3%, up from 12.2%. Purchase market share increased 13% from the fourth quarter of 2025. Refinance market share increased 17% over the same period. Direct-to-consumer purchase volume rose 45% year over year. Existing servicing clients represented 57% of refinance close volume, compared with 54% in the first quarter. Management attributed the share gains to the company’s servicing portfolio, recapture capabilities, Redfin’s home-search funnel and cost advantages in origination and servicing. Krishna said more than 70% of Rocket’s revenue now comes from recurring or less rate-sensitive businesses, including servicing, purchase mortgages, home equity products, personal loans and Redfin. → No Hangover: Revisiting Microsoft One Week After Earnings Rocket said its Redfin integration is increasingly providing purchase-mortgage leads. In June, mortgage leads from Redfin more than doubled from a year earlier, while the mortgage attachment rate among Redfin agents reached 47%, approaching the company’s stated 50% synergy target. The company said Redfin reaches roughly 50 million monthly active users and now offers approximately 25,000 exclusive listings nationally through its Compass partnership. Eligible Rocket servicing clients who buy or sell through Redfin and finance with Rocket Mortgage can receive up to $20,000 in combined savings, according to management. Krishna said artificial intelligence initiatives have increased lead conversion by roughly 30% over the past year. Loan officers are serving nearly 40% more clients than they did one year ago while producing double-digit conversion improvements, he said. Rocket also completed a major servicing migration during the quarter, bringing servicing clients onto a single platform. Its Voice AI system for inbound servicing calls has handled more than 1 million calls, with more than half resolved without a servicing specialist, Krishna said. In adjacent lending products, Rocket said it has become the nation’s largest home equity lender. Since entering the category four years ago, the company has helped more than 250,000 homeowners access more than $24 billion of home equity. Rocket Loans volume nearly doubled year over year in the first six months of 2026, ending with a record June; more than half of those loans came from existing servicing clients. Brown said Rocket realized $100 million of annualized Mr. Cooper expense synergies during the second quarter and remains on track to reach its original $400 million target by year-end. The company now expects to realize an additional $100 million of annualized expense savings beyond that goal during the first half of 2027, following completion of major integration milestones. Rocket ended the quarter with $11.2 billion in liquidity, an increase of $1.8 billion from the first quarter. Net corporate leverage was 0.9 times, down 20% from year-end. The company also refinanced existing debt through a senior note offering in June. During the quarter, Rocket sold a portion of its low-coupon mortgage servicing rights, or MSRs, at what Brown called attractive market prices. The company retained subservicing and recapture rights associated with those loans. Its servicing portfolio ended the quarter with $2 trillion in unpaid principal balance, including $320 billion of owned MSRs with note rates above 6%. Brown said Rocket uses mortgage TBAs and Treasury futures to hedge interest-rate volatility in its MSR assets. He said the company’s recapture business serves as a natural hedge, reducing the need for the 80% to 100% hedge coverage ratios that some other firms may target. Management expects the housing market to remain difficult in the near term. Brown said the 30-year fixed mortgage rate recently reached 6.8%, approximately 50 basis points above the first-half average and the highest level in more than a year. Existing-home sales remain near an annualized rate of 4 million, while pending sales and purchase applications continue to decline, he said. Rocket expects third-quarter adjusted revenue of $2.5 billion to $2.7 billion. The company said the outlook assumes continued market share gains in purchase and refinance lending, even as it expects the overall mortgage market to be smaller than it was in the second quarter. At the midpoint of its outlook, Rocket expects expenses of approximately $2.35 billion, including about $110 million of intangible amortization, $90 million of stock-based compensation and $100 million of one-time acquisition-related costs. Excluding those items, expenses are expected to decline by roughly $100 million sequentially, primarily due to integration synergies and, to a lesser extent, lower volume-related costs. Rocket Companies, Inc is a Detroit-based holding company whose businesses are centered on digital mortgage origination and related consumer finance and real estate services. The company grew out of the Quicken Loans franchise and completed an initial public offering in 2020. Founder Dan Gilbert remains a prominent figure associated with the firm, which operates a suite of brands that aim to simplify the home financing and buying experience through technology and scale. The company's core activity is mortgage lending through its Rocket Mortgage platform, which offers online application, underwriting and servicing for home purchase and refinance loans. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Rocket Companies Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Delivered the most profitable quarter in four years despite a 'tough' spring housing market where affordability deteriorated and demand weakened. Achieved record market share in both purchase (6.2%) and refinance (14.3%) by leveraging a business model that is now 70% recurring or less rate-sensitive. Attributed performance to the 'recapture engine' which connects the nation's largest servicing portfolio to its origination platform, reducing acquisition costs to near zero for existing clients. Integrated Redfin and Mr. Cooper ahead of schedule, with Redfin mortgage leads doubling year-over-year and mortgage attach rates reaching 47%. Utilized proprietary AI to increase lead conversion by 30% and improve loan officer productivity, allowing them to serve 40% more clients compared to a year ago. Expanded into adjacent categories like home equity, where Rocket is now the nation's largest lender, having helped 250,000 homeowners access $24 billion in equity. Maintained a robust capital position with $11.2 billion in liquidity and net corporate leverage of 0.9x, providing a 'stronger floor' during market volatility. Expects the third quarter mortgage market to be smaller than the second quarter, a rare seasonal decline driven by persistent inflation and high mortgage rates. Assumes adjusted revenue between $2.5 billion and $2.7 billion for Q3, implying continued market share gains despite the industry-wide contraction. Identified an additional $100 million in annualized expense savings above the original $400 million target, expected to be realized in the first half of 2027. Maintains over $300 billion of origination capacity to capture significant upside when rates eventually fall, particularly targeting the $320 billion of MSRs with note rates above 6%. Projects Q3 expenses to decrease by approximately $100 million sequentially, driven by the realization of integration synergies and disciplined cost management. Completed one of the largest servicing migrations in industry history, moving all clients onto a single platform to streamline AI deployment and cross-selling. Executed a strategic sale of low-coupon MSRs while retaining subservicing and recapture rights, effectively rebalancing the portfolio toward higher note rates. Noted that while the expected 2026 housing recovery has not yet materialized, the company's diversified revenue streams provide a buffer against rate-sensitive volume declines. Recognized $100 million in one-time acquisition-related costs in the Q3 expense guidance as part of the final stages of recent integrations. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management confirmed that Q3 market sizing will likely be smaller than Q2, which informed their conservative revenue guidance. The $100 million sequential expense drop is primarily attributed to synergy realization from the Mr. Cooper integration rather than just volume-based variable cost reductions. Management argued that a 'narrow' business model (origination-only or servicing-only without recapture) is an 'Achilles' heel' in the current high-rate environment. Asserted that Rocket's scale and technology bet allow for separation from competitors who are currently being commoditized or distressed by capital constraints. Clarified that Rocket does not target 80-100% hedge coverage because their high recapture rate acts as a natural interest rate hedge. Emphasized they use only low-cost instruments like TBAs and treasury futures, avoiding market 'bets' on the direction of interest rates. Early participation in VantageScore pilots is helping capture first-time homebuyers who lack traditional FICO profiles. The ban on trigger leads is improving funnel conversion rates by preventing competitors from 'harassing' Rocket's clients during the credit pull phase.

Rocket Companies, Inc. RKT reported second-quarter 2026 adjusted earnings of 16 cents per share, matching the Zacks Consensus Estimate. The bottom line jumped 200% from the year-ago quarter.Adjusted revenues of $2.76 billion missed the consensus mark by 2% but increased 92.9% from the prior-year quarter. Shares of Rocket lost more than 2.5% during after-hours trading.Results reflected record purchase and refinance market share despite a difficult housing environment. Total net rate lock volume reached $47 billion. Rocket generated total net revenues of $2.78 billion, up 91.9% year over year. Net gain on sale of loans was $1.21 billion, while net loan servicing income was $450 million. Interest income and other income were $583 million and $546 million, respectively. Total closed mortgage loan origination volume was $49.1 billion. Excluding correspondent activity, closed volume totaled $39.2 billion, while gain on sale margin was 3.11%.Purchase market share rose to a record 6.2% from 5.5% in the fourth quarter of 2025. Likewise, refinance share climbed to 14.3% from 12.2%.Rocket ended the quarter with a $2 trillion servicing portfolio covering 9.1 million loans. Existing servicing clients accounted for 57% of refinance closed volume, up from 54% in the first quarter, highlighting the company's ability to generate repeat mortgage business from its servicing base. Beginning in the second quarter of 2026, Rocket reports Mortgage as its sole reportable segment, with the remaining businesses grouped under All Other. The Mortgage segment generated total revenues of $2.27 billion, up 79.2% from $1.27 billion a year ago. Adjusted revenues increased 80.2% year over year to $2.25 billion. Contribution margin surged 160.9% to $1.17 billion, reflecting stronger profitability across Rocket's mortgage origination, servicing, title, closing and appraisal operations. All Other businesses, primarily comprising Redfin's real estate services, Rocket Money and Rocket Loans, recorded revenues of $510 million, up 180.2% from the prior-year quarter. Contribution margin climbed 158.6% to $181 million. Total expenses climbed 75.4% year over year to $2.50 billion. Salaries, commissions and team member benefits were $1.05 billion, while general and administrative costs totaled $568 million. Marketing and advertising expenses were $291 million. GAAP net income was $229 million compared with $34 million a year earlier. Adjusted EBITDA surged to $766 million from $172 million, with an adjusted EBITDA margin of 28%, up from 26% in the first quarter. Rocket continued deploying artificial intelligence (AI) across origination and servicing. Its loan officers are handling nearly 40% more clients than a year ago while producing double-digit improvements in conversion, according to management. The company's AI Voice platform handled more than 1 million inbound servicing calls within three months of launch. More than half of those calls otherwise would have required servicing-team assistance, while task resolution was nearly 25% faster than traditional interactive voice response methods. For the third quarter of 2026, Rocket expects adjusted revenues between $2.5 billion and $2.7 billion. Management expects the mortgage market to be smaller sequentially as elevated rates continue to pressure affordability, purchase demand and refinancing activity.At the midpoint of the revenue outlook, expenses are projected at roughly $2.35 billion. Rocket also remains on track to realize $400 million of annualized Mr. Cooper expense synergies by year-end and now sees another $100 million of annualized savings above that target during the first half of 2027. Strategic acquisitions, including Redfin and Mr. Cooper, should continue to support RKT’s revenue base and expand margins as integration synergies ramp. At the same time, the company is leaning into AI initiatives such as agentic prospecting and digital pre-approvals, which are boosting conversion and adding incremental monthly volume.The setup is not without risk. Expenses remain elevated, and successful execution will depend on smoothly integrating Redfin and Mr. Cooper while maintaining service levels. Housing-market volatility and regulatory pressures also remain important factors influencing results. Rocket Companies, Inc. price-consensus-eps-surprise-chart | Rocket Companies, Inc. Quote Currently, RKT carries a Zacks Rank #4 (Sell). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. LendingTree, Inc. TREE reported second-quarter 2026 adjusted net income per share of $1.27, which missed the Zacks Consensus Estimate of $1.46. The figure compares favorably with $1.13 reported in the prior-year quarter.LendingTree’s results were adversely impacted by a decline in Consumer segment revenues and higher total costs. However, growth in revenues, along with strong Insurance segment performance, supported the results to some extent.PennyMac Financial PFSI came out with second-quarter 2026 earnings of $1.39 per share, which missed the Zacks Consensus Estimate of $2.08 per share by a considerable margin. This compares to earnings of $1.02 per share a year ago.Results were hurt by higher expenses. On the other hand, an increase in revenues and solid liquidity position acted as tailwinds for PennyMac. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Rocket Companies, Inc. (RKT) : Free Stock Analysis Report LendingTree, Inc. (TREE) : Free Stock Analysis Report PennyMac Financial Services, Inc. (PFSI) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

This article first appeared on GuruFocus. Adjusted Revenue: $2.8 billion, near the midpoint of guidance. Adjusted EBITDA: $766 million, with a margin of 28%, up from 26% in the first quarter. Adjusted Diluted EPS: $0.16, up from $0.15 in the first quarter. Total Net Rate Lock Volume: $47 billion. Total Closed Loan Volume: $49 billion. Gain on Sale Margin (excluding correspondent): 311 basis points, compared to 322 basis points in the first quarter. Purchase Market Share: 6.2%, a record high and a 13% increase from the fourth quarter. Refinance Market Share: 14.3%, a record high and a 17% increase from the fourth quarter. Servicing Cash Flow: $1 billion generated in the second quarter. Servicing Portfolio: Ended the quarter at $2 trillion in unpaid principal balance. Liquidity: $11.2 billion, up $1.8 billion from the first quarter. Net Corporate Leverage: 0.9x, 20% lower since year-end. Mr. Cooper Expense Synergies: Realized $100 million annualized in the quarter, on track for the $400 million target by year-end. Third-Quarter Adjusted Revenue Guidance: Expected between $2.5 billion and $2.7 billion. Warning! GuruFocus has detected 3 Warning Signs with RKT. Is RKT fairly valued? Test your thesis with our free DCF calculator. Release Date: August 06, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Rocket Companies Inc (NYSE:RKT) achieved record market share in both purchase (6.2%) and refinance (14.3%) during Q2 2026, despite a challenging housing market. The company delivered its most profitable quarter in four years, with adjusted EBITDA margin expanding to 28% and adjusted diluted EPS rising to $0.16. Integration of Redfin and Mr. Cooper is ahead of plan, with Redfin mortgage leads doubling year-over-year and the mortgage attach rate reaching 47%, approaching the 50% target. Rocket Companies Inc (NYSE:RKT) realized $100 million in annualized Mr. Cooper expense synergies in Q2 and increased its synergy target by an additional $100 million, with line of sight to achieve the original $400 million goal by year-end. The company strengthened its balance sheet, ending Q2 with $11.2 billion in liquidity and net corporate leverage at 0.9x, down 20% since year-end, supported by a successful $1.5 billion senior note offering. AI and technology investments are driving significant productivity gains, with loan officers serving nearly 40% more clients and achieving double-digit conversion improvements year-over-year. Rocket Companies Inc (NYSE:RKT) is the largest home equity lender, having helped over 250,000 homeowners access $24 billion in home equity, and Rocket Loans volume nearly doubled year-over-year in the first half of 2026. The housing market remains challenging, with mortgage rates rising to 6.8% in recent weeks, the highest level in over a year, pressuring affordability and demand. Rocket Companies Inc (NYSE:RKT) expects the third quarter mortgage market to be smaller than the second quarter, a trend not seen since 2022, leading to a sequential decline in adjusted revenue guidance to $2.5-$2.7 billion. Gain on sale margin, excluding correspondent, declined to 311 basis points in Q2 from 322 basis points in Q1, reflecting competitive pricing pressures. The company incurred $100 million in onetime acquisition-related costs in Q2, and expects similar costs in Q3, which could weigh on profitability. The expected housing recovery in 2026 has not materialized, with existing home sales remaining near $4 million annualized and pending sales and purchase applications continuing to decline. Rocket Companies Inc (NYSE:RKT) sold a portion of its low-coupon MSRs during Q2, which, while opportunistic, reduces the size of its owned servicing portfolio and may limit future refinance opportunities from those loans. The company's guidance implies continued market share gains, but the overall market contraction could limit absolute volume growth and revenue expansion in the near term. Q: Can you discuss the macro backdrop embedded in the Q3 guidance and whether the sequential expense decline is a new run rate or just a function of lower revenue?A: Varun Krishna (CEO) noted that Q2 was tougher than expected due to rising rates, but Rocket was prepared and gained share in both purchase and refinance while expanding profitability for the third consecutive quarter. He emphasized that over 70% of revenue is now less rate-sensitive, providing a structural advantage. Brian Brown (CFO) added that the Q3 revenue guide of $2.5-$2.7 billion implies another quarter of significant share gains. The $100 million sequential expense decline is primarily driven by Mr. Cooper expense synergies coming through the P&L, with the remaining $200 million of the $400 million target expected to be realized in the second half of 2026. Q: How is the competitive landscape evolving, and are market share gains coming from peer weakness or your own execution?A: Varun Krishna (CEO) stated that Rocket doesn't focus on competitors but highlighted that the tough market exposes weaknesses in narrower business modelsthose that only originate, only service without recapture, or lack technology investment. He believes Rocket's integrated model (originate, service, recapture, AI, strong capital) is creating separation that will accelerate as the market improves. Brian Brown (CFO) added that Rocket is the only publicly traded mortgage company with an investment-grade rating and less than 1x leverage, with over $11 billion in liquidity, widening the capital differentiation. On the Pro side, the Compass partnership has generated over $2 billion in locks, and broker sign-ups are at record levels. Q: What is left to do on the cost side, and how meaningful can cost reductions be if revenue proves more challenging?A: Brian Brown (CFO) highlighted the additional $100 million of annualized expense savings above the original $400 million Mr. Cooper synergy target, now expected in the first half of 2027. This is true synergy value from the three companies coming together and does not impact capacityRocket still has over $300 billion of origination capacity. He emphasized that technology and AI advancements continue to increase cost discipline, but the company maintains a balanced approach, not sacrificing capacity for cost cuts. Q: What are the key drivers to reaching the long-term market share goals of 8% in purchase and 20% in refinance?A: Varun Krishna (CEO) outlined three major building blocks: 1) Recaptureconnecting servicing and origination, with Mr. Cooper refinance recapture reaching another record; 2) Redfinacting as the doorway to Rocket, with mortgage leads doubling year-over-year and attachment rates approaching 50%; 3) Home equityRocket is now the largest home equity lender in the country. He emphasized that Rocket is taking share in a difficult environment without sacrificing profitability, and historically takes even more share when rates cooperate. The North Star goal of profitable market share growth does not change based on market dynamics. Q: How should we think about client acquisition costs (CAC) on purchase loans from Redfin or Compass, and how are pricing incentives reflected in the P&L?A: Varun Krishna (CEO) explained that recapture loans have near-zero acquisition costs. For purchase loans, the pricing incentive comes out of gain on sale margin, but the company thinks about it as a cost of acquiring that client. Rocket has a desired return on a unit basis and flexes across channelswhether from Compass agent referrals, direct-to-consumer, or the servicing business increasingly contributing to purchase growth. The approach is to meet consumers where they are while striving for the target return. Q: Can correspondent lending continue to support market share growth?A: Varun Krishna (CEO) confirmed that correspondent was a good quarter and is a way to grow the MSR portfolio. Rocket has the best recapture rates in the business on both originated and correspondent/bulk acquisition loans. This best recapture rate turns into best returns, allowing Rocket to be more aggressive in acquiring clients through correspondent and other channels because of the superior returns seen through recapture. Q: What are your latest thoughts on hedging the MSR, given the challenging environment for peers?A: Varun Krishna (CEO) stated that Rocket's hedge strategy is simple and consistenthedging the interest rate volatility in the asset using low-cost instruments like mortgage TBAs and treasury futures. The key differentiator is that the recapture business provides a natural hedge, so Rocket doesn't target the same 80%-100% coverage ratio as peers, which lowers hedging costs. He was clear that Rocket is not placing bets on rate direction, simply hedging the asset's volatility. Q: How are the VantageScore and trigger lead ban regulatory changes benefiting Rocket?A: Varun Krishna (CEO) said it's early days, but Rocket participated in the VantageScore pilot and is farther along than others. Benefits include lower credit scoring costs due to competition and the ability to serve thousands of clients who lack a FICO profile. On the trigger lead ban, Rocket wasn't a big user of credit triggers, but its clients were being harassed by other lenders. Since the ban, Rocket is seeing better conversion rates in the mid-funnel because clients aren't being distracted by competing offers after credit is pulled. Both changes are positive for consumers and businesses that take care of their clients. Q: Was the MSR sale opportunistic, and what is the appetite for future sales?A: Varun Krishna (CEO) confirmed the MSR sale was part of ongoing portfolio optimization, focusing on low-coupon MSRs at attractive prices. Approximately 80% of the sales went to partners who already provide subservicing and recapture capabilities, making it a win-win. Rocket retained subservicing and recapture economics on those loans. With $320 billion of unpaid principal in the owned MSR portfolio carrying note rates above 6%, there is significant recapture opportunity when rates fall. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Rocket Companies (RKT) reported $2.76 billion in revenue for the quarter ended June 2026, representing a year-over-year increase of 106%. EPS of $0.16 for the same period compares to $0.04 a year ago. The reported revenue compares to the Zacks Consensus Estimate of $2.82 billion, representing a surprise of -2.04%. The company has not delivered EPS surprise, with the consensus EPS estimate being $0.16. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance. Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance. Here is how Rocket Companies performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Revenue- Loan servicing (loss) income- Change in fair value of MSRs: $-616 million compared to the $-586.71 million average estimate based on three analysts. The reported number represents a change of +209.7% year over year. Revenue- Gain on sale of loans, net: $1.21 billion versus the three-analyst average estimate of $1.28 billion. The reported number represents a year-over-year change of +47.7%. Revenue- Interest income- Interest income: $583 million versus the three-analyst average estimate of $482.44 million. The reported number represents a year-over-year change of +372.1%. Revenue- Loan servicing (loss) income- Servicing fee income: $1.07 billion versus $1.09 billion estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +165.7% change. Revenue- Other income: $546 million versus $560.03 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +76.5% change. Revenue- Loan servicing (loss) income, net: $450 million versus the two-analyst average estimate of $506.35 million. The reported number represents a year-over-year change of +122.3%. Revenue- Gain on sale of loans- Fair value of originated MSRs: $759 million versus the two-analyst average estimate of $655.31 million. The reported number represents a year-over-year change of +120.9%. Revenue- Gain on sale of loans- Gain on sale of loans excluding fair value of originated MSRs, net: $446 million versus the two-analyst average estimate of $659.2 million. The reported number represents a year-over-year change of -5.6%. View all Key Company Metrics for Rocket Companies here>>> Shares of Rocket Companies have returned -2.1% over the past month versus the Zacks S&P 500 composite's +3.3% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Rocket Companies, Inc. (RKT) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Generated Q2'26 total revenue, net of $2.78 billion and adjusted revenue of $2.76 billion. Reported Q2'26 GAAP net income of $229 million and adjusted net income of $441 million. Delivered Q2'26 adjusted EBITDA of $766 million. DETROIT, Aug. 6, 2026 /PRNewswire/ -- Rocket Companies, Inc. (NYSE: RKT) ("Rocket Companies" or the "Company"), the Detroit-based homeownership platform company including mortgage, real estate, title and personal finance businesses, today announced results for the second quarter ended June 30, 2026. "Rocket reached record levels of purchase and refinance market share in one of the toughest spring housing markets in years, while delivering our most profitable quarter in four years," said Varun Krishna, CEO and Director of Rocket Companies. "We've spent the last several years building a fundamentally different company. Home search, origination and servicing now reinforce one another, with AI making every interaction smarter. Markets change. Systems endure." Second Quarter 2026 Financial Highlights During the second quarter of 2026: Generated total revenue, net of $2.78 billion and net income of $229 million. Generated total adjusted revenue of $2.76 billion and adjusted net income of $441 million. Excluding correspondent, generated $36.9 billion in net rate lock volume, $39.2 billion in closed mortgage loan origination volume and gain on sale margin was 3.11%. Direct to Consumer generated $26.0 billion in net rate lock volume and $28.1 billion in closed mortgage loan origination volume. Direct to Consumer gain on sale margin was 4.13%. Rocket Pro generated $10.9 billion in net rate lock volume and $11.1 billion in closed mortgage loan origination volume. Rocket Pro gain on sale margin was 0.69%, driven by investments in the Compass partnership to attract new partners to Rocket. Generated $47.0 billion in total net rate lock volume and $49.1 billion in total closed mortgage loan origination volume. Total gain on sale margin was 2.48%. Correspondent generated $10.2 billion in net rate lock volume and $10.0 billion in closed mortgage loan origination volume. Correspondent gain on sale margin was 0.19%. Total liquidity was $11.2 billion as of June 30, 2026, which includes $3.1 billion of cash and cash equivalents on the balance sheet, $2.3 billion of undrawn lines of credit, and $5.8 billion of undrawn available MSR and advance lines of credit. Total servicing portfolio unpaid principal balance was $2.0 trillion or 9.1 million loans serviced as of June 30, 2026, reinforcing the potential to drive significant recapture opportunity from the industry's largest portfolio. During Q2'26, Mortgage servicing rights ("MSR") sales totaled $53 billion of UPB, generating $795 million of cash proceeds. We retained subservicing and recapture services on nearly 80% of the MSRs sold. Company Highlights Purchase and refinance quarterly market share reached record levels in Q2. Purchase market share increased to 6.2% from 5.5% in Q4 2025, and refinance market share increased to 14.3% from 12.2% over the same period, reflecting the strength of Rocket's ecosystem, distribution network and platform. Rocket Mortgage completed one of the largest servicing migrations in industry history. With all servicing clients now on a single platform, Rocket has a unified client foundation to drive servicing efficiency, strengthen recapture and deepen long-term client engagement. In Q2, legacy Mr. Cooper recapture rates reached another record level, driven by Rocket's commitment to client service, powerful brand, deep client insights, and technology platform. Recapture from our servicing portfolio represents significant opportunity for future origination volume. Rocket Mortgage became the nation's #1 home equity lender — the first independent mortgage company to lead the category. Since launching its home equity loan product in mid-2022, Rocket has helped more than 250,000 homeowners access over $24 billion in equity. In May, Rocket Mortgage and Redfin, our digital real estate brokerage and home search platform, expanded the Preferred Pricing offer. Eligible Rocket servicing clients can save up to $20,000 when they buy and sell with a Redfin agent and finance through Rocket Mortgage. In June, Redfin doubled mortgage leads year over year and reached record highs for mortgage attach rates. This was driven by rapid product development to integrate the Rocket and Redfin experience, proprietary models to lift conversion, and compelling offers such as our expanded Preferred Pricing offer. In Q2, we enhanced AI-powered loan officer tools to improve client prioritization, conversion and productivity. Built on years of proprietary data, the tools score and reprioritize loan officer pipelines multiple times per day to drive optimal matching and conversion. Loan officers using these tools are handling nearly 40% more clients, compared to one year prior. In Q2, we scaled our AI Voice platform across servicing operations, improving both efficiency and the client experience. Within three months of launch, AI Voice handled more than 1 million inbound calls. More than 50% of those calls would otherwise have required assistance from servicing team members, while task resolution was nearly 25% faster than traditional Interactive Voice Response ("IVR") methods and client satisfaction reached 4.5 out of 5. Rocket Pro, our wholesale mortgage broker channel, expanded its "Power Play" initiative to help broker partners win in the purchase market with greater speed, certainty and competitiveness. Enhancements included same-business-day conditional approvals, a 12-business-day clear-to-close commitment on eligible purchase loans, and continued Compass pricing incentives. Through the Compass partnership, Rocket Pro partners originated more than $2 billion in net rate lock volume since inception. Rocket Pro partners adopted Jupiter, our new loan origination system for mortgage broker partners, and Navigate AI at record levels in Q2. Partners who adopt these tools are growing applications and closings at five times the pace of those who do not. Rocket Loans, our personal loans business, nearly doubled volume year over year in the first half of 2026 and reached record-high monthly volume in June. More than half of those loans were to Rocket servicing clients, underscoring the unique power of the Rocket platform. On June 9, Rocket Companies issued $1.5 billion of senior notes, including $900 million of 6.125% senior notes due 2031 and $600 million of 6.500% senior notes due 2034. The proceeds were used to redeem outstanding senior notes and repay other existing debt. The offering was more than seven times oversubscribed and was upsized to $1.5 billion from the originally announced $1.2 billion. Rocket Companies held its eighth and final annual Rocket Classic event from July 30 to August 2, 2026 at the Detroit Golf Club. Since 2019, the Rocket Classic has raised approximately $10 million for local charitable organizations, including over $6 million for its Changing The Course initiative, which helps Detroit residents access high-speed internet, digital devices and digital literacy training. The Rocket Community Fund announced a $4.5 million legacy gift to extend Rocket Classic's impact. The gift includes $3.5 million to bring affordable, high-speed internet to up to 2,400 households and 6,000 residents in Detroit public housing communities through partnerships with DigitalC and the Detroit Housing Commission, and $1 million to establish the Own the Dream Youth Scholarship Fund for Detroit students pursuing college and post-secondary education. In May 2026, Rocket Community Fund, a partner company, helped 170 Detroit families become homeowners through the Make It Home program. The program supports residents at risk of displacement after landlords fail to pay property taxes by acquiring tax-foreclosed homes before auction and reselling them to occupants through affordable payment plans. Third Quarter 2026 Outlook (2) In Q3 2026, we expect adjusted revenue between $2.5 billion to $2.7 billion. Segments Beginning in the second quarter of 2026, the Company is reporting one segment, Mortgage. The tables below reflect the new segment reporting structure, with prior-period information recast for comparability. Mortgage The Mortgage segment includes our mortgage origination, servicing, title, closing and appraisal businesses, supporting clients throughout their homeownership journey. Our origination and servicing businesses are connected by our recapture engine, which extends client relationships beyond origination and creates opportunities to recapture clients' future refinance and purchase transactions. Personal finance and real estate services are included in All Other and excluded from the Mortgage segment. Mortgage segment revenue is comprised of gain on sale revenue, servicing fee income, changes in the fair value of MSRs, interest income, title and closing fees, and appraisal fees. Gain on sale revenue includes components related to the origination and sale of mortgage loans. Servicing fee income consists of contractual fees earned for servicing and subservicing loans, as well as ancillary servicing fees. Changes in the fair value of MSRs reflect changes in valuation assumptions and the realization of cash flows. Interest income includes deposit income earned on cash deposits, including custodial deposits associated with the servicing portfolio, as well as interest earned on mortgage loans held for sale. Title, closing and appraisal fees include fees generated by those services. Balance Sheet and Liquidity Total available cash and cash equivalents on our balance sheet was $3.1 billion as of June 30, 2026. Additionally, we have access to $2.3 billion of undrawn lines of credit, and $5.8 billion of undrawn available MSR and advance lines of credit, for a total liquidity position of $11.2 billion as of June 30, 2026. Second Quarter Earnings Call Rocket Companies will host a live conference call at 4:30 p.m. ET on August 6, 2026 to discuss its results for the quarter ended June 30, 2026. A live webcast of the event will be available online by clicking on the "Investor Info" section of our website. The webcast will also be available via rocketcompanies.com. A replay of the webcast will be available on the Investor Relations site following the conclusion of the event. Non-GAAP Financial Measures To provide investors with information in addition to our results as determined by GAAP, we disclose Adjusted revenue, Adjusted net income, Adjusted diluted earnings per share and Adjusted EBITDA as non-GAAP measures which management believes provide useful information to investors. We believe the presentation of our non-GAAP financial measures provides useful information to investors regarding our results of operations because each measure assists both investors and management in analyzing and benchmarking the performance and value of our business. Accordingly, management believes that these measurements are useful for comparing general operating performance from period to period, and management relies on these measures for planning and forecasting of future periods. Additionally, these measures allow management to compare our results with those of other companies that have different financing and capital structures. Our non-GAAP financial measures are not calculated in accordance with GAAP and should not be considered as a substitute for Total revenue, net, Net income (loss), or any other operating performance measure calculated in accordance with GAAP. Other companies may define non-GAAP financial measures differently, and as a result, our non-GAAP financial measures may not be directly comparable to those of other companies. Our non-GAAP financial measures provide indicators of performance that are not affected by fluctuations in certain costs or other items. We define "Adjusted revenue" as Total revenue, net of the Change in fair value of MSRs and related liabilities due to valuation assumptions (net of hedges). We define "Adjusted net income" as Tax-effected Net income (loss) before Share-based compensation expense, the Change in fair value of MSRs and related liabilities due to valuation assumptions (net of hedges), Acquisition-related expenses, Amortization of acquired intangible assets, Litigation accrual, Other adjustments and Tax impact of adjustments as applicable. We define "Adjusted diluted earnings per share" as Adjusted net income divided by the Adjusted diluted weighted average shares outstanding which includes Diluted weighted average Participating Common Stock outstanding and the Assumed pro forma conversion of Class D shares for the applicable period presented. We define "Adjusted EBITDA" as Net income (loss) before Bond interest expense, Provision for (benefit from) income taxes, Depreciation and amortization, Share-based compensation expense, Change in fair value of MSRs and related liabilities due to valuation assumptions (net of hedges), Acquisition-related expenses, Amortization of acquired intangible assets, Litigation accrual and Other adjustments. We exclude from each of our non-GAAP financial measures the Change in fair value of MSRs and related liabilities due to valuation assumptions (net of hedges), as this represents a non-cash non-realized adjustment to our Total revenue, net, reflecting changes in market interest rates and assumptions, including OAS and prepayment speeds, which are not indicative of our performance or results of operation. We also exclude gains or losses on sales of MSRs during the period and effects of contractual prepayment protection associated with sales of MSRs. Further, we exclude the Amortization of acquired intangible assets from Adjusted net income and Adjusted EBITDA. The intangible assets related to the Acquisitions were recorded as part of purchase accounting and the related amortization recorded over their useful lives represents a fixed non-cash expense that is not indicative of our ongoing performance or results of operations. Adjusted EBITDA includes interest expense on secured financing which is recorded as a component of Interest expense, as these expenses are a direct cost driven by loan origination volume. By contrast, Bond interest expense is a function of our capital structure and is therefore excluded from Adjusted EBITDA. In determining our non-GAAP provision for income taxes, which can differ significantly from our GAAP provision for income taxes, we apply a long-term projected non-GAAP tax rate that excludes certain significant, non-recurring and period-specific income tax effects, such as changes in judgment or estimates of tax matters related to prior years, changes in the valuation allowance related to deferred tax assets, changes in tax laws, and changes to our business structure including impacts from business combinations. The application of a long-term non-GAAP tax rate helps us assess the core profitability of our business operations and compare to our historical operating results. In arriving at the long-term non-GAAP tax rate used in fiscal year 2026, we evaluated our structure after the Up-C Collapse in 2025 and projections and currently available information for fiscal year 2026 through 2028. In projecting this long-term non-GAAP tax rate, we utilized a three-year financial projection that excludes the direct and indirect income tax effects of the other non-GAAP adjustments reflected above including tax impacts related to nondeductible executive equity compensation. Additionally, we considered our current operating structure and other factors such as our existing and potential tax positions in various jurisdictions and key legislation in major jurisdictions where we operate. The projected long-term non-GAAP tax rate could be subject to change for several reasons, including significant changes in our geographic earnings mix or in application of tax laws in major jurisdictions in which we operate. As such, we periodically re-evaluate the appropriateness of the long-term non-GAAP tax rate and may adjust for significant changes. Our definitions of each of our non-GAAP financial measures allow us to add back certain cash and non-cash expenses, and deduct certain gains that are included in calculating Total revenue, net, Net income (loss) attributable to Rocket Companies or Net income (loss). However, these expenses and gains vary greatly, and are difficult to predict. From time to time in the future, we may include or exclude other items if we believe that doing so is consistent with the goal of providing useful information to investors. Although we use our non-GAAP financial measures to assess the performance of our business, such use is limited because they do not include certain material costs necessary to operate our business. Our non-GAAP financial measures can represent the effect of long-term strategies as opposed to short-term results. Our presentation of our non-GAAP financial measures should not be construed as an indication that our future results will be unaffected by unusual or nonrecurring items. Our non-GAAP financial measures have limitations as analytical tools, and you should not consider them in isolation or as a substitute for analysis of our results as reported under U.S. GAAP. Because of these limitations, our non-GAAP financial measures should not be considered as measures of discretionary cash available to us to invest in the growth of our business or as measures of cash that will be available to us to meet our obligations. Limitations to our non-GAAP financial measures included, but are not limited to: they do not reflect every cash expenditure, future requirements for capital expenditures or contractual commitments; Adjusted EBITDA does not reflect the significant interest expense or the cash requirements necessary to service interest or principal payment on our debt; although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often have to be replaced or require improvements in the future, and Adjusted revenue, Adjusted net income (loss) and Adjusted EBITDA do not reflect any cash requirement for such replacements or improvements; and they are not adjusted for all non-cash income or expense items that are reflected in our Condensed Consolidated Statements of Cash Flows. We compensate for these limitations by using our non-GAAP financial measures along with other comparative tools, together with U.S. GAAP measurements, to assist in the evaluation of operating performance. See reconciliation of our non-GAAP financial measures to their most comparable U.S. GAAP measures. Additionally, our U.S. GAAP-based measures can be found in the unaudited condensed consolidated financial statements and related notes included in our Quarterly Report on Form 10-Q. For financial outlook information, the Company is not providing a quantitative reconciliation of adjusted revenue to the most directly comparable GAAP measure because the GAAP measure cannot be reliably estimated and the reconciliation cannot be performed without unreasonable effort due to their dependence on future uncertainties and adjusting items that the Company cannot reasonably predict at this time but which may be material. Forward Looking Statements Some of the statements contained in this document are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Any statements in this document that are not historical or current facts are forward-looking statements. These forward-looking statements reflect our views with respect to future events as of the date of this document. All such forward-looking statements are subject to risks and uncertainties, including, but not limited to, the risk factors that are described under the section titled "Risk Factors" in our Annual Report on Form 10-K and other filings with the Securities and Exchange Commission, any of which could cause future events or results to be materially different from those stated or implied in this document. We expressly disclaim any obligation to publicly update or review any forward-looking statements, whether as a result of new information, future developments or otherwise, except as required by applicable law. About Rocket Companies Founded in 1985, Rocket Companies, Inc. (NYSE: RKT) is a Detroit-based homeownership platform including mortgage, real estate and personal finance businesses: Rocket Mortgage, Redfin, Rocket Close, Rocket Money and Rocket Loans. With insights from more than 160 million calls with clients each year, more than 30 petabytes of data and a mission to Help Everyone Home, Rocket Companies is well positioned to be the destination for AI-fueled homeownership. Known for providing exceptional client experiences, J.D. Power has ranked Rocket Mortgage #1 in client satisfaction for primary mortgage origination and mortgage servicing a total of 23 times – the most of any mortgage lender. For more information, please visit our Corporate Website or Investor Relations Website. View original content to download multimedia:https://www.prnewswire.com/news-releases/rocket-companies-announces-second-quarter-2026-results-302845358.html

Rocket Companies (RKT) came out with quarterly earnings of $0.16 per share, in line with the Zacks Consensus Estimate . This compares to earnings of $0.04 per share a year ago. These figures are adjusted for non-recurring items. A quarter ago, it was expected that this company would post earnings of $0.13 per share when it actually produced earnings of $0.15, delivering a surprise of +15.38%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. Rocket Companies, which belongs to the Zacks Financial - Mortgage & Related Services industry, posted revenues of $2.76 billion for the quarter ended June 2026, missing the Zacks Consensus Estimate by 2.04%. This compares to year-ago revenues of $1.34 billion. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Rocket Companies shares have lost about 28.4% since the beginning of the year versus the S&P 500's gain of 12.8%. While Rocket Companies has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Rocket Companies was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.19 on $2.79 billion in revenues for the coming quarter and $0.66 on $11.05 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Financial - Mortgage & Related Services is currently in the bottom 16% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the broader Zacks Finance sector, Essent Group (ESNT), is yet to report results for the quarter ended June 2026. The results are expected to be released on August 7. This mortgage insurance and reinsurance holding company is expected to post quarterly earnings of $1.77 per share in its upcoming report, which represents a year-over-year change of -8.3%. The consensus EPS estimate for the quarter has been revised 0.3% lower over the last 30 days to the current level. Essent Group's revenues are expected to be $327.93 million, up 2.8% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Rocket Companies, Inc. (RKT) : Free Stock Analysis Report Essent Group Ltd. (ESNT) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research