Rocket Companies posts adjusted revenue of $2.574 billion in the third quarter
Key Facts
Rocket Companies reported results on October 29 for the third quarter ended September 30, 2026, posting adjusted revenue of $2.574 billion, compared with $1.873 billion in the same period a year earlier. Net income under accounting standards was $709 million, following a loss of $124 million a year earlier. Adjusted net income also rose to $419 million from $158 million. Adjusted EBITDA was $748 million, versus $349 million in the third quarter of 2025. The results show improved revenue and profitability compared with the year-earlier period, while the company did not confirm in its results statement how revenue compared with analysts' expectations.
The company had total liquidity of $11.4 billion on September 30, comprising $2.7 billion in cash and cash equivalents, $2.5 billion in undrawn credit facilities, and $6.2 billion in available, undrawn mortgage servicing rights and advance facilities. Rocket closed mortgages totaling $43.6 billion in the third quarter, with a gross gain-on-sale margin of 2.54%. The original balance of loans in its servicing portfolio was $2.0 trillion, covering 9.1 million loans at the end of September. The servicing portfolio represents a broad base of outstanding loans the company services, alongside its business of originating new loans. These figures place liquidity and portfolio size alongside the revenue and profitability indicators the company reported for the quarter.
Chief Executive Officer Varun Krishna said Rocket increased its share of the home-purchase and refinancing markets on both a quarterly and annual basis. He added that the company achieved its "highest profitability margin in nearly 5 years," despite mortgage rates reaching a 3-year high. In its second-quarter results, the company said its share of the home-purchase market was 6.2%, up from 5.5% in the fourth quarter of 2025. Its share of the refinancing market also reached 14.3%, compared with 12.2% over the same period. That earlier comparison provides context for management's remarks on market-share expansion, while the third-quarter results cover the latest reported financial period.
The company cited growth in customer activity through Redfin in the third quarter: visits that led users to begin a mortgage-purchase transaction from home listings on the platform rose 50% year over year. Redfin's contribution to referrals of refinancing customers to Rocket also more than doubled its previous level during the quarter. This comes against the backdrop of the company's expanding platform, which combines activity tied to home listings with loan origination and servicing. In the second quarter, refinancing activity across the sector fell 36%, while it declined 22% among Rocket customers whose loans it services, according to Investing.com's summary of StoneX notes. The gap places the performance of the servicing customer base in the context of weak sector activity during that period.
The backdrop to the synergies with Mr. Cooper is a $400 million expense-savings target from the integration, which Rocket said in its first-quarter results it aims to achieve in full by the end of 2026, a year ahead of the original schedule. The target concerns expense savings, not current-quarter revenue. In its third-quarter results, the company set a range for adjusted revenue in the fourth quarter of 2026 of $2.1 billion to $2.3 billion. This range is the latest guidance for the next period, following adjusted revenue of $2.574 billion in the third quarter. The outlook remains part of the company's disclosures for the coming period, alongside its reported results and liquidity.
In stock trading, EL7 data showed RKT closing at $12.8 on October 30, 2026. On the same day, Compass Point maintained its buy rating and set a price target of $15, according to Investing.com's forecasts page. The page showed an overall consensus of "Buy," comprising 10 buy ratings, 7 hold ratings and zero sell ratings; these consensus figures do not establish an individual "Strong Buy" recommendation. In July, Morgan Stanley upgraded the stock from "Equal Weight" to "Overweight" and raised its price target from $18 to $19, after the stock rose 3.7% in premarket trading on July 16. Morgan Stanley linked the upgrade to the stock's decline of about 25% year to date and about 40% from its previous 2026 peak, and estimated 2028 earnings per share at a level about 10% above the market consensus.