Download PDF

1. Company Snapshot

1.a. Company Description

Rocket Companies, Inc.engages in the tech-driven real estate, mortgage, and e-Commerce businesses in the United States and Canada.It operates through two segments, Direct to Consumer and Partner Network.


The company's solutions include Rocket Mortgage, a mortgage lender; Amrock that provides title insurance, property valuation, and settlement services; Rocket Homes, a home search platform and real estate agent referral network, which offers technology-enabled services to support the home buying and selling experience; Rocket Auto, an automotive retail marketplace that provides centralized and virtual car sales support to online car purchasing platforms; and Rocket Loans, an online-based personal loans business.It also offer Core Digital Media, a digital social and display advertiser in the mortgage, insurance, and education sectors; Rocket Solar, which connect homeowners with digital financing solutions through a team of trained solar advisors; Truebill, a personal finance app that helps clients manage every aspect of their financial lives; Lendesk, a technology services company that provides a point of sale system for mortgage professionals and a loan origination system for private lenders; and Edison Financial, a digital mortgage broker.In addition, the company originates, closes, sells, and services agency-conforming loans.


Rocket Companies, Inc.was founded in 1985 and is headquartered in Detroit, Michigan.Rocket Companies, Inc.


operates as a subsidiary of Rock Holdings, Inc.

Show Full description

1.b. Last Insights on RKT

Rocket Companies, Inc. faces challenges, including falling earnings estimates, rising costs, and integration risks. The company's outlook is tied to interest rates, execution, and synergy timing. High costs and a tough housing market are significant concerns. Despite strong revenue and recent earnings beats, the mixed outlook persists. Integration risks and a cautious response from investors and analysts regarding full-year targets also impact the company's performance.

1.c. Company Highlights

2. Rocket Companies' Q4 2025 Earnings: A Strong Finish to a Transformative Year

Rocket Companies reported $2.4 billion in adjusted revenue for Q4 2025, beating guidance by $140 million, with adjusted diluted EPS of $0.11 per share, surpassing estimates of $0.0896. For the full year, adjusted revenue was $6.9 billion, with an adjusted EBITDA margin of 19% and adjusted diluted EPS of $0.28. The company's financial performance was driven by its integrated ecosystem, which spans home search, mortgage origination, servicing, title, and closing, serving 460,000 homebuyers and homeowners through origination.

Publication Date: Mar -01

📋 Highlights
  • Q4 2025 Revenue Beat:: Adjusted revenue reached $2.4 billion, exceeding guidance by $140 million, with adjusted diluted EPS at $0.11 per share.
  • Full-Year Performance:: Adjusted revenue totaled $6.9 billion, with an adjusted EBITDA margin of 19% and adjusted diluted EPS of $0.28.
  • Acquisition Synergies Realized:: $140 million in expense synergies from Redfin and Mr. Cooper acquisitions captured 6 months early, with integration ahead of schedule.
  • AI-Driven Growth:: Technology platform enabled a $200 billion annualized loan volume run rate, doubling capacity while reducing headcount.
  • Strategic Partnerships:: Redfin-Compass alliance aims to boost inventory and affordability, with Redfin as exclusive portal and Rocket as digital mortgage partner.

Operational Highlights and Synergies

The company completed two major acquisitions in 2025, Redfin and Mr. Cooper, and is ahead of schedule on integration, realizing expense synergies 6 months early. The integration of Redfin and Mr. Cooper is progressing ahead of schedule, with $140 million in expense synergies captured in under 6 months. The partnership with Compass is expected to expand Redfin's distribution footprint and improve inventory and lead flow.

Strategic Partnerships and Growth Opportunities

Rocket and Compass formed a strategic alliance to strengthen the housing market, combining Rocket's mortgage expertise with Compass's real estate network and Redfin's home listings platform to expand inventory and create a more streamlined home buying and selling experience. The partnership aims to tackle home affordability by increasing inventory and making the process more efficient.

Valuation and Outlook

With a P/S Ratio of 7.66 and EV/EBITDA of 349.47, the market is pricing in significant growth expectations. Analysts estimate next year's revenue growth at 9.4%. The company's focus on profitable expansion, not sacrificing returns for volume, and its distribution strategy, including retail, Pro, broker channels, and partnerships with Redfin, Mr. Cooper, and Compass, is expected to drive growth. Investments in technology, particularly AI, are driving benefits, including increased capacity, improved conversion, and expanded lifetime value.

Regulatory Environment and Risk Management

The regulatory environment is being watched closely, but the company doesn't view it as a significant risk, as banks have struggled with mortgage profitability due to unit economics. The company's durable business model is expected to grow across market conditions, driven by its integrated ecosystem and operating leverage.

3. NewsRoom

Card image cap

Evergreen Capital Management LLC Takes Position in Rocket Companies, Inc. $RKT

Apr -24

Source: defenseworld.net

Card image cap

Rocket Companies to Announce First Quarter 2026 Results on May 7, 2026

Apr -23

Source: prnewswire.com

Card image cap

Salt Lake City Ranks First Among Metros Where Gen Zers Own the Largest Share of 3+ Bedroom Homes

Apr -23

Source: businesswire.com

Card image cap

Reckitt Benckiser: analysts and investors grow sceptical over full-year targets

Apr -22

Source: proactiveinvestors.co.uk

Card image cap

More Than 50,000 Home-Purchase Contracts Fell Through in March

Apr -22

Source: businesswire.com

Card image cap

Redfin Reports U.S. Home Prices Inched Up 0.1% in March

Apr -21

Source: businesswire.com

Card image cap

Late April Is the Best Time to List a Home For Sale

Apr -20

Source: businesswire.com

Card image cap

Homebuyers Hold the Negotiating Power In 38 Major Metros, Up From 29 Last Year

Apr -20

Source: businesswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (12.50%)

6. Segments

Direct to Consumer

Expected Growth: 12.0%

The 12.0% growth in Direct to Consumer segment of Rocket Companies, Inc. is driven by increased demand for digital mortgage platforms, expanded product offerings, and efficient customer acquisition strategies. Strong performance is also attributed to the company's investments in technology and data analytics, enabling personalized customer experiences and streamlined operations.

Partner Network

Expected Growth: 18.0%

The Partner Network growth of 18.0% is driven by Rocket Companies, Inc.'s strategic expansion of its real estate and mortgage services ecosystem, increased adoption of its technology platforms, and growing demand for digital mortgage solutions, resulting in higher revenue and transaction volumes from its network of partners.

ALL Other

Expected Growth: 8.0%

The 8.0% growth in ALL Other from Rocket Companies, Inc. is driven by increased market share in mortgage and non-mortgage financial products, expanded product offerings, and strong performance in technology and data analytics segments, contributing to revenue diversification and scalability.

7. Detailed Products

Quicken Loans Mortgage

Quicken Loans is a mortgage lender that offers a range of home loan products, including conventional loans, FHA loans, VA loans, and jumbo loans.

Rocket Mortgage

Rocket Mortgage is a digital mortgage platform that allows users to apply for a mortgage online and get pre-approved in minutes.

Rocket Homes

Rocket Homes is a real estate platform that allows users to search for homes, get pre-approved for a mortgage, and connect with real estate agents.

Rocket Auto

Rocket Auto is an auto financing platform that allows users to shop for and finance a new or used vehicle.

Rocket Business

Rocket Business offers financial services and products to small businesses, including business loans, lines of credit, and cash flow management solutions.

Truebill

Truebill is a personal finance management platform that helps users manage their subscriptions, bills, and expenses.

8. Rocket Companies, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Rocket Companies, Inc. operates in the mortgage and real estate industries, where there are various substitutes available, such as traditional banks, credit unions, and other non-bank lenders. However, the company's diversified business model and strong brand presence mitigate the threat of substitutes.

Bargaining Power Of Customers

Rocket Companies, Inc. has a large customer base and a strong brand reputation, which reduces the bargaining power of individual customers. Additionally, the company's mortgage and real estate services are essential to customers, reducing their ability to negotiate.

Bargaining Power Of Suppliers

Rocket Companies, Inc. relies on various suppliers, such as investors, insurers, and technology providers. While the company has strong relationships with its suppliers, there are other players in the market that can provide similar services, which maintains a moderate level of bargaining power.

Threat Of New Entrants

The mortgage and real estate industries are highly regulated and require significant investment in technology, marketing, and talent. This creates a barrier to entry for new companies, reducing the threat of new entrants.

Intensity Of Rivalry

The mortgage and real estate industries are highly competitive, with many established players and new entrants vying for market share. Rocket Companies, Inc. faces intense competition from companies like Quicken Loans, Bank of America, and Wells Fargo, which drives innovation and pricing pressure.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 37.11%
Debt Cost 9.24%
Equity Weight 62.89%
Equity Cost 15.23%
WACC 13.01%
Leverage 59.00%

11. Quality Control: Rocket Companies, Inc. passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Nasdaq

A-Score: 5.6/10

Value: 1.8

Growth: 5.7

Quality: 7.0

Yield: 3.0

Momentum: 7.0

Volatility: 9.3

1-Year Total Return ->

View Full Report
Stock-Card
ICE

A-Score: 5.6/10

Value: 2.5

Growth: 6.1

Quality: 6.9

Yield: 2.0

Momentum: 6.0

Volatility: 10.0

1-Year Total Return ->

View Full Report
Stock-Card
MSCI

A-Score: 5.5/10

Value: 2.8

Growth: 7.9

Quality: 7.5

Yield: 2.0

Momentum: 5.0

Volatility: 7.7

1-Year Total Return ->

View Full Report
Stock-Card
Walker Dunlop

A-Score: 5.1/10

Value: 6.9

Growth: 3.9

Quality: 5.1

Yield: 7.0

Momentum: 1.5

Volatility: 6.0

1-Year Total Return ->

View Full Report
Stock-Card
Rocket

A-Score: 4.6/10

Value: 4.3

Growth: 1.4

Quality: 3.6

Yield: 8.0

Momentum: 7.5

Volatility: 3.0

1-Year Total Return ->

View Full Report
Stock-Card
Arthur J Gallagher

A-Score: 4.6/10

Value: 1.9

Growth: 6.7

Quality: 5.8

Yield: 2.0

Momentum: 2.5

Volatility: 9.0

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

14.4$

Current Price

14.4$

Potential

-0.00%

Expected Cash-Flows