Start here if you're new
what it is
Rocket helps you get a mortgage, shop for homes, and handle related money tasks through a digital platform.
how it gets paid
Last year Rocket Companies made $125M in revenue. Mortgage origination was the main engine at $70M, or 56% of sales.
why it's growing
Revenue grew 27.6% last year. The 120.0% EPS surprise matters because a stock at 93.0x trailing earnings needs proof that estimates were too low.
what just happened
Rocket's last reported quarter delivered $0.11 EPS versus a $0.05 estimate, a 120.0% surprise.
At a glance
B balance sheet — gets the job done, barely
20/100 earnings predictability — expect surprises
93.0x trailing p/e — you're paying up for this one
16.0% return on capital — nothing to write home about
xvary composite: 31/100 — weak
What they do
Rocket helps you get a mortgage, shop for homes, and handle related money tasks through a digital platform.
Rocket wins on convenience, not captivity. You can apply for a mortgage online across all 50 states, and that reach helped adjusted revenue rise 19.0% in the first three quarters of 2025. The edge is speed and distribution, but it is not a fortress, so your upside depends on housing volume staying alive.
How they make money
$125M
annual revenue · their business grew +27.6% last year
Mortgage origination
$70M
Closing and title services
$22M
Personal loans
$14M
Home search and referrals
$11M
Auto, solar, and media
$8M
The products that matter
originates and services mortgages
Rocket Mortgage
$125M reported revenue
this is the core engine behind the reported $125M revenue base, and it is the part of the story most exposed to mortgage demand swings.
core engine
acquired servicing scale
Mr. Cooper platform
$14.2B deal · $2.1T portfolio
the october 1 all-stock acquisition added america's largest mortgage servicer, with a portfolio above $2.1T. that is the scale bet the valuation is leaning on.
integration bet
housing cross-sell funnel
Rocket Homes and adjacencies
$500M run-rate target
management says the combined platform can eventually produce $500M of annual run-rate cost and revenue benefits. if that target slips, the deal logic gets much thinner.
benefit target
Key numbers
93.0x
trailing p/e
P/E → how many years of current earnings you are paying for → so what: you are paying luxury pricing for a lender in a cyclical market.
16.0%
return on capital
Return on capital → profit earned on money put into the business → so what: Rocket still turns capital into decent returns when volume is there.
50.0%
operating margin
Operating margin → what is left after running the business → so what: when demand shows up, this model throws off a lot of profit.
$8.5B
long-term debt
Long-term debt → money the company owes over years → so what: debt is 12% of capital, manageable on paper, but still a real fixed burden.
Financial health
B
strength
- balance sheet grade B — adequate — nothing special
- risk rank 4 — safer than 20% of stocks
- price stability 15 / 100
- long-term debt $8.5B (12% of capital)
- net profit margin 30.0% — keeps 30 cents of every dollar in revenue
- return on equity 30% — $0.30 profit for every $1 investors have put in
B — functional but not a standout on the balance sheet.
Total return vs. market
You invested $10,000 in RKT 3 years ago → it's now worth $29,740.
The index would have given you $14,770.
source: institutional data · total return
What just happened
beat estimates
Rocket's last reported quarter delivered $0.11 EPS versus a $0.05 estimate, a 120.0% surprise.
Consensus data says the company beat expectations, while other source summaries show conflicting quarterly EPS and revenue figures. The clean read is that late-2025 results improved as housing activity and operating leverage picked up.
$2.44B
revenue
$0.11
eps
n/a
gross margin
the number that mattered
The 120.0% EPS surprise matters because a stock at 93.0x trailing earnings needs proof that estimates were too low, not too high.
-
rocket companies likely concluded 2025 with a solid performance. (the financial services provider is expected to announce december-period results in late february.) most of its operating metrics showed improvement during the first nine months of 2025, from the prior-year span, including loan originations (+13.2%), rate locks (+17.0%), and sold loans in the direct-to-consumer (dtc) channel (+17.9%).
-
during the first three quarters, adjusted revenues expanded 19.0%, and may have jumped 30%-plus for full-year 2025, to $6.59 billion.recent acquisitions (discussed below) would be the main reason for outsized growth in the fourth quarter. adjusted earnings per share sagged a bit through the september period, down $0.03 from the like-2024 stretch, due to elevated expenses and some margin compression. however, the bottom line probably expanded in the fourth quarter, aided in part by the recent buyouts, with adjusted earnings per share essentially even for 2025 as a whole, at $0.25 a share.
-
the acquisition of mr.
-
cooper group ought to give the lender’s operating results a boost.to recap, rocket completed the $14.2 billion all-stock transaction on october 1st, adding america’s largest mortgage servicer with a portfolio in excess of $2.1 trillion.
-
leadership expects to eventually reach annual run-rate cost and revenue of $500 million.
source: company earnings report, 2026
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What could go wrong
the top risk is mr. cooper integration colliding with legal and regulatory pressure. this is not abstract. the deal cost $14.2B, the servicing book is above $2.1T, and the latest quarter still printed a -54.4% margin.
high
antitrust pressure around the mr. cooper deal
us senators have pressed antitrust enforcers over Rocket's acquisition of mr. cooper and questioned why the deal cleared.
if scrutiny turns into concessions, the strategic value of the $14.2B transaction and the path to the $500M annual benefit target both get weaker.
high
ftc lawsuits tied to Rocket Homes and related units
Rocket faces separate ftc actions tied to its real estate operations, including Rocket Homes.
that matters because the housing funnel is supposed to feed the broader platform. fines, operating changes, or tighter oversight would weaken the cross-sell story.
high
execution risk on a very large integration
Rocket inherited a servicing portfolio above $2.1T through a $14.2B all-stock deal. that raises the execution bar immediately.
if integration drags, the company can miss the $500M target while investors are still paying 93.0x trailing earnings for a cleaner future.
med
mortgage-cycle volatility is still the core exposure
the latest quarter showed -$0.06 EPS and a -54.4% margin. that is what a rate-sensitive lender looks like when conditions turn against it.
Rocket can post a better full year and still deliver ugly quarters. if that pattern sticks, investors stop treating the mess as temporary.
these risks sit on top of a business with $8.5B of long-term debt, a $14.2B integration to absorb, and a quarter that lost money. there is room for recovery. there is not much room for error.
source: institutional data · regulatory filings · risk analysis
Pay attention to
earnings
late-february results
you want the first clean look at how Rocket reports the post-merger business and whether profitability is moving in the right direction.
risk
mr. cooper regulatory follow-through
watch whether political pressure becomes actual antitrust action or operating concessions around the $14.2B deal.
metric
progress toward the $500M target
management gave the market a number. now you need signs that cost saves or cross-sell gains are landing in reported results.
trend
quarterly margin volatility
a company that just printed a -54.4% quarter can still surprise you on the downside. watch whether margins settle after the merger.
Analyst rankings
short-term outlook
bottom 5%
momentum score 5 — the weakest tier. in human-speak, analysts expect this to lag most stocks over the next stretch.
risk profile
below average
stability score 4 means bigger swings than most stocks. this is not a bunker position.
chart momentum
average
technical score 3 means the chart is not giving you a strong signal either way. price ran. conviction did not follow with the same force.
earnings predictability
20 / 100
only 20 out of 100. in plain english: quarterly outcomes are hard to model, and surprise risk stays high.
source: institutional data
Institutional activity
institutions have been net buying for 3 consecutive quarters — 380 buyers vs. 138 sellers in 3q2025. total institutional holdings: 0.3B shares. net buying for 3 quarters.
source: institutional data
Price targets
3-5 year target range
$18
$62
$23
current price
$40
target midpoint · +72% from current · 3-5yr high: $50 (+115% · 21% ann'l return)
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