Rocket Companies (NYSE:RKT) Issues Quarterly Earnings Results, Beats Expectations By $0.02 EPS

Rocket Companies (NYSE:RKT) released its earnings results on Thursday. The company reported $0.11 earnings per share for the quarter, beating analysts’ consensus estimates of $0.09 by $0.02, FiscalAI reports. Rocket Companies had a negative net margin of 1.77% and a positive return on equity of 2.83%. The business had revenue of $2.44 billion during the quarter, compared to the consensus estimate of $2.24 billion. During the same quarter in the prior year, the firm posted $0.04 EPS. The company’s revenue for the quarter was up 52.2% compared to the same quarter last year.

Here are the key takeaways from Rocket Companies’ conference call:

• Rocket beat guidance in Q4 with $2.44 billion in adjusted revenue, $592 million adjusted EBITDA for the quarter and full-year adjusted revenue of $6.9 billion, while market share rose to 5.5%, supporting stronger near-term growth expectations.
• Integration of Redfin and Mr. Cooper is ahead of plan—Redfin expense synergies of $140 million were realized early, ~600,000 loans were migrated smoothly, and Mr. Cooper synergies are on track to be fully realized sooner than the original 2027 target.
• AI and automation materially increased operating leverage—Rocket produced nearly $50 billion in Q4 originations with roughly half the headcount, handles millions of automated contacts monthly, reports a 3x industry recapture rate, and says it is capturing over $1 billion of incremental volume per month.
• The strategic alliance with Compass aims to expand inventory and distribution—Redfin will be the exclusive portal for Compass Private Exclusives, Compass becomes a major brokerage partner, and Rocket Mortgage will offer integrated preferred pricing to improve affordability and drive attach rates.

Rocket Companies Stock Up 2.4%

RKT stock traded up $0.42 during trading on Thursday, reaching $17.75. 22,123,079 shares of the stock were exchanged, compared to its average volume of 30,805,132. The firm’s 50 day moving average is $20.03 and its 200 day moving average is $18.92. The firm has a market cap of $37.36 billion, a P/E ratio of 221.90 and a beta of 2.31. The company has a current ratio of 19.68, a quick ratio of 19.68 and a debt-to-equity ratio of 2.16. Rocket Companies has a twelve month low of $10.94 and a twelve month high of $24.36.

Insider Activity at Rocket Companies

In other news, Director Matthew Rizik sold 2,500 shares of the company’s stock in a transaction that occurred on Monday, January 12th. The stock was sold at an average price of $22.99, for a total transaction of $57,475.00. Following the transaction, the director directly owned 1,038,536 shares of the company’s stock, valued at $23,875,942.64. This represents a 0.24% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Insiders sold a total of 32,500 shares of company stock worth $645,775 in the last ninety days. Insiders own 92.64% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of the business. Royal Bank of Canada grew its holdings in shares of Rocket Companies by 48.9% during the first quarter. Royal Bank of Canada now owns 69,641 shares of the company’s stock valued at $841,000 after buying an additional 22,861 shares during the last quarter. Amundi lifted its position in Rocket Companies by 3.1% in the 1st quarter. Amundi now owns 33,416 shares of the company’s stock valued at $403,000 after acquiring an additional 997 shares in the last quarter. AQR Capital Management LLC boosted its stake in Rocket Companies by 1,086.5% during the 1st quarter. AQR Capital Management LLC now owns 400,467 shares of the company’s stock valued at $4,734,000 after purchasing an additional 366,716 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its holdings in Rocket Companies by 12.2% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 370,619 shares of the company’s stock worth $4,473,000 after purchasing an additional 40,326 shares in the last quarter. Finally, Creative Planning raised its stake in shares of Rocket Companies by 17.2% in the second quarter. Creative Planning now owns 18,215 shares of the company’s stock worth $258,000 after purchasing an additional 2,679 shares during the last quarter. Institutional investors and hedge funds own 4.59% of the company’s stock.

Analyst Upgrades and Downgrades

RKT has been the topic of a number of research analyst reports. Keefe, Bruyette & Woods upped their price target on shares of Rocket Companies from $18.00 to $20.00 and gave the company a “market perform” rating in a research report on Thursday, December 18th. Oppenheimer started coverage on Rocket Companies in a research report on Thursday, November 13th. They set an “outperform” rating and a $25.00 target price on the stock. Weiss Ratings reaffirmed a “sell (d+)” rating on shares of Rocket Companies in a research note on Monday, December 29th. Wells Fargo & Company boosted their price target on Rocket Companies from $15.00 to $17.00 and gave the company an “equal weight” rating in a research note on Wednesday, November 5th. Finally, JPMorgan Chase & Co. assumed coverage on Rocket Companies in a report on Monday, January 12th. They set a “neutral” rating and a $24.00 price target on the stock. Five investment analysts have rated the stock with a Buy rating, ten have given a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the company has a consensus rating of “Hold” and a consensus target price of $20.50.

Key Stories Impacting Rocket Companies

Here are the key news stories impacting Rocket Companies this week:

• Positive Sentiment: Q4 results beat expectations — RKT reported $0.11 EPS vs. $0.09 consensus and revenue of $2.44B vs. $2.24B expected, showing better-than-forecast quarter-to-quarter performance. Q4 Press Release
• Positive Sentiment: Company raised Q1 2026 revenue guidance to $2.6B–$2.8B, above the Street’s ~$2.3B estimate (EPS guidance was not specified in the release), signaling management expects stronger origination/servicing activity next quarter. Guidance & Results PR
• Positive Sentiment: Strategic alliance with Compass (listing inventory to appear on Redfin) could materially increase home listings available to Rocket’s platform, supporting mortgage origination and ancillary services growth. Alliance PR
• Positive Sentiment: Falling mortgage rates (average ~6.09%, lowest since 2022) improve affordability and could lift origination volumes if the trend continues. Mortgage Rates Article
• Neutral Sentiment: Leadership tweak: CFO Brian Brown was named President while remaining CFO/Treasurer — a continuity move but one investors will watch for execution and strategy signal. Leadership PR
• Neutral Sentiment: Options and media attention point to elevated expectations for post-earnings volatility; analysts still show an Outperform consensus, but near-term swings are likely. Options/Market Article
• Negative Sentiment: Short interest jumped ~49.8% in February to ~54.4M shares — about 35.1% of float — which raises the risk of downward pressure and volatility if sentiment turns negative. (Short-interest ratio ~1.6 days.)
• Negative Sentiment: Despite the top-line and EPS beat, Rocket reported a negative net margin (~-1.77%) and modest ROE (2.83%), underscoring profitability and margin recovery challenges. Q4 Press Release

About Rocket Companies

Rocket Companies, Inc is a Detroit-based holding company whose businesses are centered on digital mortgage origination and related consumer finance and real estate services. The company grew out of the Quicken Loans franchise and completed an initial public offering in 2020. Founder Dan Gilbert remains a prominent figure associated with the firm, which operates a suite of brands that aim to simplify the home financing and buying experience through technology and scale.

The company’s core activity is mortgage lending through its Rocket Mortgage platform, which offers online application, underwriting and servicing for home purchase and refinance loans.