Rocket Companies reported a third-quarter 2025 adjusted net income of $158 million on adjusted revenue of $1.78 billion, exceeding the high end of its guidance range, the Detroit-based mortgage lender said Thursday.
On a GAAP basis, the company posted a net loss of $124 million on total revenue of $1.61 billion, up from Q2 2025’s revenue figure of $1.36 billion.
Rocket generated $35.8 billion in net mortgage rate lock volume during the quarter, up 20% from the same period last year, along with $32.4 billion in closed loan origination volume, a 14% year-over-year increase. Its gain-on-sale margin rose slightly to 2.8%.
“Rocket delivered a standout quarter, balancing short- and long-term execution in a category of one. I am very proud of the Rocket team for surpassing the high end of our adjusted revenue guidance range, accelerating Redfin momentum and closing the Mr. Cooper transaction — the largest independent mortgage company deal in history,” said Varun Krishna, CEO and director of Rocket Companies.
“We are building a vertically integrated homeownership platform for the AI era.”
As of Sept. 30, Rocket held $9.3 billion in total liquidity, including $5.8 billion in cash, $1.1 billion in undrawn credit lines and $2 billion in unused mortgage servicing rights (MSR) facilities.
The company’s servicing portfolio totaled $613 billion in unpaid principal balance (UPB) across about 2.9 million loans, generating roughly $1.7 billion in annualized servicing fee income.
Brian Brown, Rocket’s chief financial officer, told investors during Thursday afternoon’s earnings call that Rocket’s combined servicing portfolio is the largest in the industry with a recapture rate three times higher than the industry average.
Mr. Cooper, Redfin integrations
During Thursday’s call, Krishna said that Q3 2025 marked the strongest purchase and refinance quarter for the lender in the past three years. That was anchored by the success of the Redfin and Mr. Cooper acquisitions, the latter of which closed on Oct. 1.
“Redfin is already contributing meaningfully to our retail channel. Redfin source purchase closings make up 13% of our direct-to-consumer purchase closings today. … The integration is exceeding expectations,” Brown said.
Krisha added that during September, more than 500,000 Redfin users started applications for home financing. “That’s more than double the number we saw in July,” he said.
Regarding the Mr. Cooper integration, Krishna noted that by day nine of the process, 4,000 leads were in the pipeline. By day 12, Rocket had closed its first Mr. Cooper client from start to finish in only three days.
As of this week, Krishna said that 400 Mr. Cooper loan officers are fully onboarded into Rocket Mortgage.
“With a combined servicing portfolio nearing 10 million clients, we are now running the largest, most powerful recapture engine in the industry,” he said.
The deal increased Rocket’s public float to 35% and brought in Jay Bray, Mr. Cooper’s 30-year mortgage servicing and origination veteran, who joined Rocket Mortgage as president and CEO. Brown also said during the call that Rocket tapped Kurt Johnson, Mr. Cooper’s former CFO, to be its integration lead.
In addition, Rocket raised its conforming loan limit to $825,550 for single-family homes across 48 states. It also redeemed multiple series of Nationstar Mortgage Holdings senior notes following the Mr. Cooper transaction, moves that the company said would simplify its capital structure and improve financial flexibility.
Performance by channel
Rocket’s direct-to-consumer segment, which includes Rocket Mortgage’s retail channel and related services, saw significant growth during the third quarter.
The segment generated $975 million in GAAP revenue and $1.15 billion in adjusted revenue, up from $1.01 billion a year earlier. Contribution margin rose to $469 million, up from $456 million in Q3 2024.
Rocket’s Partner Network, which includes its Rocket Pro broker channel and marketing and influencer partnerships, generated $168 million in both GAAP and adjusted revenue, roughly flat from a year earlier. Contribution margin slipped from $112 million to $96 million during the year.
Sold loan volume increased from $12.4 billion to $13.7 billion, although gain-on-sale margins narrowed from 1.47% to 1.11%.
Looking ahead, Rocket expects adjusted revenue between $2.1 billion and $2.3 billion in the fourth quarter, reflecting a full three months of contributions from Redfin and Mr. Cooper.
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