Rocket Companies (RKT) Stock Tumbles 7.7% – Is the Earnings Story That Bad?

TLDR

• Rocket Companies posted full-year revenue of $6.7 billion, up 31% year-over-year, but swung to a net loss of $234 million from a $636 million profit in 2024.
• Diluted EPS came in at $(0.05), compared to $0.21 in 2024, as higher expenses and acquisition costs weighed on the bottom line.
• Q4 net income dropped 89% to $68 million despite a 52% revenue jump to $2.69 billion.
• RKT stock fell 7.7% on Monday, closing at $16.79, as investors reacted to the earnings miss.
• Q1 2026 revenue guidance of $2.6–$2.8 billion includes $150 million from an accounting reclassification of warehouse interest costs.

Rocket Companies (RKT) dropped 7.7% on Monday, closing at $16.79, after the mortgage lender reported a net loss for full-year 2025 despite a sharp rise in revenue.

Rocket Companies, Inc., RKT

The company posted total revenue of $6.695 billion for the year, up 31% from $5.101 billion in 2024. But that top-line growth wasn’t enough to offset rising costs and the financial drag from recent acquisitions.

Net loss came in at $234 million, a stark reversal from the $636 million net income recorded in 2024.

Diluted EPS of Participating Common Stock landed at $(0.05), down from $0.21 the prior year.

Adjusted EBITDA came in at $1.281 billion, which the company highlighted as a measure of underlying operating performance.

Loan originations grew 29% year-over-year, and both the Direct-to-Consumer and Partner Network channels saw volume increases. Non-mortgage services also expanded during the period.

Servicing unpaid principal balance grew to $2.12 trillion, with mortgage servicing rights fair value and servicing fee income both moving higher.

Q4 Earnings Weigh on Sentiment

The fourth quarter told a similar story. Revenue climbed 52% to $2.692 billion from $1.769 billion a year earlier, but net income collapsed 89% to just $68 million from $649 million in Q4 2024.

That combination — strong revenue, weak profit — appeared to drive the Monday sell-off.

The company completed the acquisitions of Redfin and Mr. Cooper during the year, both of which contributed to higher integration expenses. The Up-C corporate restructuring was also finalized in 2025.

Rocket also launched a unified brand restage during the year and ramped up marketing spend, which boosted customer acquisition and Rocket Money subscriber counts.

Q1 2026 Guidance and Accounting Change

For Q1 2026, Rocket guided for revenue between $2.6 billion and $2.8 billion. That would represent growth of roughly 151% to 170% compared to $1.037 billion in Q1 2025.

However, investors should note that the guidance includes $150 million from an accounting reclassification.

Starting this quarter, Rocket is reclassifying warehouse interest on loans held for sale from a contra-revenue account to a direct expense. The company stated this change increases both reported revenue and expenses, with no impact on net income or cash flow.

Loss before income taxes for the full year was $(214) million, reflecting the weight of integration and expense items tied to the acquisitions.

The 10-K filing, released March 2, outlined these results in full, and the stock’s Monday reaction showed Wall Street wasn’t happy with the profit picture despite the revenue beat.

RKT closed Monday at $16.79, down 7.7% on the session.

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