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Rocket Companies Falls 7.7% After 2025 Loss Despite Revenue Surge

Q1 guidance reflects a $150 million warehouse‑interest reclassification that does not alter net income or cash flow.

Overview

  • Full-year 2025 revenue rose 31% to $6.695 billion, but Rocket reported a net loss of $234 million versus $636 million in profit a year earlier.
  • Fourth-quarter revenue climbed 52% to $2.692 billion as net income dropped about 89% to $68 million compared with Q4 2024.
  • Management attributed profit pressure to higher operating costs and integration expenses tied to the Redfin and Mr. Cooper deals, along with a 2025 restructuring and heavier marketing.
  • For Q1 2026, the company guided revenue of $2.6–$2.8 billion, including $150 million from reclassifying warehouse interest from contra‑revenue to a direct expense with no impact on earnings or cash flow.
  • Shares closed Monday at $16.79, down 7.7%, while Wells Fargo last week lifted its price target to $19 and kept an Equal Weight rating as it cited progress on deal synergies.
  • Operational scale metrics highlighted by Rocket included adjusted EBITDA of $1.281 billion, 29% year‑over‑year growth in loan originations, and servicing UPB rising to $2.12 trillion.