Rocket revenue surges: ‘Every move is deliberate and focused’
The mortgage giant ended the year strong with two major acquisitions and loan volumes at a 3-year high. “We're hitting every key milestone,” the CEO said.
Rocket's leadership is feeling good about the company's financial positioning after big moves in 2025 — a year "where Rocket demonstrated who we are," CEO Varun Krishna told investors during a Q4 earnings call on Thursday.
It was the first quarter that fully incorporated the financials of Redfin and Mr. Cooper — the two multibillion-dollar acquisitions Rocket Companies closed last year — and since completing those deals, "every single work stream is ahead of schedule," Krishna noted. "We're hitting every key milestone."
The Detroit-based company reported total net revenue of $2.69 billion in the fourth quarter (up 41% year-over-year) and $6.7 billion for the full year (up 27% over 2024). It also achieved its highest Q4 net rate lock volume and gain-on-sale margin since 2021.
"Everything that we have done in the past is now leading us to what's happening next," Krishna said. "Every move is deliberate and focused on a new vision for homeownership in this country."
What Rocket had to say
On artificial intelligence: Rocket has invested heavily in AI, and Krishna spoke at length about the ROI the company is seeing. "Mortgage is deterministic. It's heavily manual. It requires precision and repetition at scale. Artificial intelligence is tailor-made for these challenges," he said.
"The proof of this lies in our Q4 results. We just delivered nearly $50 billion in loan volume… the last time we originated this level of volume was the first quarter of 2022, but here is the critical difference: Today, we delivered that same volume with half the head count. We didn't just work harder. We structurally double the capacity of every production team member through technology. This is the definition of AI-driven operating leverage."
On his mission: "I joined this great company to transform homeownership," Krishna said. "We've already bridged the gap between search, origination and servicing. The next step in our journey is focused on fixing the next part of the problem, home affordability," which he described as a "multifaceted, existential challenge" with "no quick fix."
On the Compass partnership: One step toward fixing the problem, however, "is partnering with the biggest and best brokerage in the business," Krishna said, referencing the three-year agreement the company signed with Compass — a deal announced just ahead of the earnings call. "Rocket and Compass have formed a historic strategic alliance designed to strengthen both sides of the market [supply and demand]," he said, adding: "We're doing this for one reason, which is to tackle the biggest problem in housing: affordability."
Key numbers
Revenue: $2.69 billion in total net revenue for the quarter, up from $1.77 billion a year prior. For the full year, total net revenue came in at $6.7 billion, up from $5.1 billion in 2024.
Cash and cash equivalents: Ended the year with $2.7 billion in available cash, with total liquidity of $10.1 billion including available cash and undrawn lines of credit.
Net income: $68 million, well below the $649 million reported in Q4 2024. For the year, the company had a net loss of $234 million, vs. net income of $636 million in 2024.
Adjusted EBITDA: $592 million in Q4, with margins expanding from 20% to 24%, a big improvement from $177 million in Q4 2024. Full-year adjusted EBITDA was $1.28 billion, up from $862 million in 2024.
Notable moves
In addition to unveiling its partnership with Compass, Rocket announced Thursday that CFO Brian Brown is also taking on the role of president, effective immediately. He will continue to serve as CFO and treasurer.
Last week, Rocket Pro exec Mike Fawaz stepped down from his role as vice president of strategy, growth and partnership after nearly 15 years with the company. Another major exit was the departure of Redfin CEO Glenn Kelman in January, who had served in that role for 20 years. left Redfin after 20 years. Krishna is currently serving as interim Redfin CEO.
In January, homebuyers hit Rocket with a RESPA class-action lawsuit. Similar to a lawsuit against Zillow, the plaintiffs claim they were pressured by agents to use Rocket's lending services.