Rocket Companies Q2 Earnings Call Highlights

Rocket Companies NYSE: RKT reported second-quarter 2026 results that it described as its most profitable quarter in four years, despite what management characterized as one of the housing industry’s toughest spring markets in recent years. CEO Varun Krishna said higher mortgage rates in May and June further reduced affordability and weakened both purchase and refinance demand during what is typically the strongest seasonal period for home buying. Still, the company said it gained market share in both categories, expanded adjusted EBITDA margin and progressed ahead of plan on the integrations of Redfin and Mr. Cooper. Second-Quarter Results and Market Share Rocket reported adjusted revenue of $2.8 billion, near the midpoint of its guidance range. Total net rate lock volume was $47 billion, while total closed loan volume reached $49 billion. Gain-on-sale margin excluding correspondent business was 311 basis points, compared with 322 basis points in the first quarter. Adjusted EBITDA totaled $766 million, representing a 28% margin, up from 26% in the prior quarter. Adjusted diluted earnings per share rose to $0.16 from $0.15 in the first quarter. President and CFO Brian Brown said Rocket achieved its highest quarterly market share in both purchase and refinance lending. Based on industry estimates, purchase market share was 6.2%, up from 5.5% in the fourth quarter of 2025, while refinance share was 14.3%, up from 12.2%. Purchase market share increased 13% from the fourth quarter of 2025. Refinance market share increased 17% over the same period. Direct-to-consumer purchase volume rose 45% year over year. Existing servicing clients represented 57% of refinance close volume, compared with 54% in the first quarter. Management attributed the share gains to the company’s servicing portfolio, recapture capabilities, Redfin’s home-search funnel and cost advantages in origination and servicing. Krishna said more than 70% of Rocket’s revenue now comes from recurring or less rate-sensitive businesses, including servicing, purchase mortgages, home equity products, personal loans and Redfin. Redfin, AI and Servicing Initiatives Rocket said its Redfin integration is increasingly providing purchase-mortgage leads. In June, mortgage leads from Redfin more than doubled from a year earlier, while the mortgage attachment rate among Redfin agents reached 47%, approaching the company’s stated 50% synergy target. The company said Redfin reaches roughly 50 million monthly active users and now offers approximately 25,000 exclusive listings nationally through its Compass partnership. Eligible Rocket servicing clients who buy or se...