Executive Summary

Rocket delivered a strong Q3: adjusted revenue $1.78B beat the high end of guidance; adjusted EBITDA rose to $349M with ~20% adjusted EBITDA margin, and adjusted EPS was $0.07 .
Versus Wall Street: Q3 EPS beat ($0.07 vs 0.048*), and revenue (S&P basis) modestly beat ($1.70B* vs $1.65B*). Q4 guidance for adjusted revenue of $2.1–$2.3B is inclusive of full-quarter Redfin and Mr. Cooper .
Strategic integration accelerated: Redfin mortgage attach rate climbed from 27% to ~40% with >500K users starting pre-qual in September; 13% of retail purchase closings came via Redfin; Mr. Cooper closed Oct 1 with rapid early lead flow and first loan closed in three days .
KPIs strengthened: net rate locks rose 26% Q/Q to $35.8B and closed volume increased 11% Q/Q to $32.4B; gain-on-sale margin held steady at 2.80% .
Liquidity robust and capital structure simplified for the combined entity; undrawn lines upsized post-quarter; management sees continued market share gains into Q4 and strong setup for 2026 with synergy tailwinds .

What Went Well and What Went Wrong

What Went Well

Beat and momentum: Adjusted revenue ($1.78B) exceeded the high end of guidance; adjusted EBITDA rose to $349M with margins expanding to ~20% from 13% in Q2 . “We gained market share, we beat our adjusted revenue guidance” — Varun Krishna, CEO .
Redfin integration traction: Mortgage attach rate moved from 27% to ~40% and >500K Redfin users started applications in September; 13% of direct-to-consumer purchase closings came via Redfin .
AI execution: New agentic AI tools (Pipeline Manager, Purchase Agreement, Rocket Pro Underwriting) lifted follow-ups by 9pts and cut processing time by 80%, enabling sub‑15 min broker underwriting tasks .

What Went Wrong

GAAP profitability remains pressured: Q3 GAAP net loss of $124M despite operational momentum (non-cash MSR fair value and acquisition costs are meaningful drivers) .
Partner Network margin pressure: Sold loan gain-on-sale margin of 1.11% vs 1.47% in Q3’24; contribution margin of $96M vs $112M a year ago despite higher sold loan volume .
Elevated costs from transactions: Q3 included ~$90M one-time costs tied to acquisitions and restructuring; Q4 guide embeds $140M one-time costs and $120M intangibles amortization before normalizing to ~$2.0B underlying expenses .

Financial Results

Headline P&L (chronological columns older → newer)

Metric	Q3 2024	Q2 2025	Q3 2025
Total revenue, net ($USD Billions)	$0.647	$1.360	$1.605
Adjusted revenue ($USD Billions)	$1.323	$1.340	$1.783
GAAP Net income (loss) ($USD Millions)	$(481)	$34	$(124)
Adjusted net income ($USD Millions)	$166	$75	$158
Adjusted EBITDA ($USD Millions)	$286	$172	$349
Adjusted diluted EPS ($)	$0.08	$0.04	$0.07

Notes: Management cited ~20% adjusted EBITDA margin in Q3 (vs ~13% in Q2) tied to scale and mix benefits .

KPIs

KPI	Q3 2024	Q2 2025	Q3 2025
Net rate lock volume ($USD Billions)	$29.835	$28.429	$35.829
Closed loan origination volume ($USD Billions)	$28.496	$29.056	$32.413
Gain-on-sale margin (%)	2.78%	2.80%	2.80%

Segment Breakdown

Direct to Consumer (DTC)

Metric	Q3 2024	Q2 2025	Q3 2025
Sold loan volume ($USD Millions)	$14,006	$14,118	$17,139
Sold loan GOS margin (%)	4.10%	4.40%	4.35%
Total revenue, net ($USD Millions)	$331	$1,030	$975
Adjusted revenue ($USD Millions)	$1,007	$1,010	$1,153
Contribution margin ($USD Millions)	$456	$367	$469

Partner Network

Metric	Q3 2024	Q2 2025	Q3 2025
Sold loan volume ($USD Millions)	$12,405	$13,411	$13,671
Sold loan GOS margin (%)	1.47%	0.90%	1.11%
Total revenue, net ($USD Millions)	$177	$148	$168
Adjusted revenue ($USD Millions)	$177	$148	$168
Contribution margin ($USD Millions)	$112	$83	$96

Performance vs S&P Global Consensus (Q3 2025)

Metric	Street Consensus	Actual	Surprise
Revenue (S&P basis) ($USD Billions)	$1.649*	$1.696*	+$0.047*
Primary EPS ($)	$0.048*	$0.070*	+$0.022*

Values marked with * retrieved from S&P Global.

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Adjusted revenue	Q4 2025	N/A	$2.1–$2.3B	New
Total expenses (consolidated)	Q4 2025	N/A	≈$2.3B incl. $140M one-time and $120M amortization	New
Underlying expenses (ex one-time & amort.)	Q4 2025	N/A	≈$2.0B	New
Interest expense (unsecured + MSR facilities)	Q4 2025	N/A	~$215M	New

Notes: Q4 will fully consolidate Redfin and Mr. Cooper; on a Rocket standalone basis, adjusted revenue at midpoint expected up ~7% YoY .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q1 & Q2 2025)	Current Period (Q3 2025)	Trend
AI/technology initiatives	Q1: Agentic AI for transfer tax, digital refi; Q2: AI banker comms lift +20% follow-ups; EMD agent saves ~20K hours	Launched Pipeline Manager (follow-ups +9pts), Purchase Agreement agent (−80% processing time), Broker underwriting agent (<15 min tasks)	Expanding scope, measurable conversion/capacity gains
Redfin integration	Announced/closed; Rocket Preferred Pricing; synergies targeted; purchase funnel expanding	Mortgage attach rate 27%→~40%; >500K pre-qual starts in Sept; 13% of retail purchase closings via Redfin	Faster-than-plan synergy realization
Mr. Cooper integration/recapture	Announced Q1; targeted close Q4’25	Closed Oct 1; early lead flow (40K by day 9), first close in 3 days; ~$500M synergies planned ($400M cost, $100M revenue)	Integration on track; synergy visibility rising
Macro/rates	N/A specific in Q1/Q2 narrative	30‑yr fixed dipped to ~6.3% in Sept, triggering refinance wave; Rocket captured share	Beneficial rate move leveraged
Regulatory/legal	N/A	FHFA 20% cap question: management comfortable with growth room; capital/liquidity above requirements	Low concern flagged
Cost structure & synergies	Redfin cost synergy plan underway	Majority of Redfin’s $140M annual expense synergies executed; Q4 full run-rate; Mr. Cooper $400M expense synergy identified	Accelerating synergy capture

Management Commentary

“We gained market share, we beat our adjusted revenue guidance, and we brought three public companies together… We are building a vertically integrated homeownership platform for the AI era.” — Varun Krishna, CEO .
“Adjusted EBITDA reached $349 million, expanding margins to 20% from 13% the prior quarter… Our guidance beat was driven by a surge in refinance activity as rates moved lower and our execution that drove our market share gains.” — Management remarks .
“Mortgage attach rates [Redfin] have climbed from 27% to 40%… In September, over 500,000 Redfin users started applications… 13% of Rocket Mortgage retail purchase closings came from clients who used both Redfin and Rocket.” — Management .
“By day nine, 40,000 leads from Mr. Cooper’s servicing book flowed directly into the Rocket pipeline… first Mr. Cooper client closed in just three days.” — Management .

Q&A Highlights

Guidance context: Q4 adjusted revenue guide ($2.0–$2.3B inclusive of acquisitions) reflects typical seasonality; Rocket standalone midpoint +~7% YoY; purchase pipeline at record levels .
Synergies: Mr. Cooper ~$500M total (≈$400M cost, ≈$100M revenue) with expense items identified; Redfin $140M annual expense synergies largely executed, full run-rate in Q4 .
Redfin momentum: Attach rate ~40% vs 27% at close; >500K pre-qual starts in Sept; Rocket Preferred bundle driving adoption; target to integrate more mortgage process into Redfin app .
Regulatory cap: Management not concerned about FHFA 20% servicing cap; sufficient capacity to grow within capital/liquidity standards .
AI leverage: Digital chat and automation increased banker capacity during September rate dip; production team members can handle 63% more loans vs two years ago; servicing AI roadmap includes Sierra partnership .

Estimates Context

Q3 2025 vs S&P Global consensus: Revenue (S&P basis) $1.696B* vs $1.649B* consensus (beat); Primary EPS $0.07* vs $0.048* consensus (beat). Values retrieved from S&P Global.
Q4 2025: Company guides adjusted revenue $2.1–$2.3B ; S&P Global revenue consensus for Q4 is ~$2.155B* — guidance range brackets consensus; Values retrieved from S&P Global.
Note: Company emphasizes adjusted revenue and adjusted EBITDA in guidance and results ; S&P Global consensus “Revenue” and “EBITDA” may not be directly comparable to company “Adjusted revenue” and “Adjusted EBITDA.” Values retrieved from S&P Global.

Key Takeaways for Investors

Adjusted revenue and EPS beats with margin expansion to ~20% adjusted EBITDA margin; momentum driven by refi surge and share gains .
Integration flywheel working: Redfin attach rate nearing 40% and meaningful purchase contribution (13% of DTC closings), plus immediate Mr. Cooper lead recapture — tangible synergy progress .
Q4 setup: Guidance $2.1–$2.3B adjusted revenue includes full-quarter Redfin/Mr. Cooper; seasonality offsets some momentum; underlying OpEx ~$2.0B post one-time and amortization charges .
KPI strength: Q/Q net rate locks +26% and closed volume +11% with steady 2.80% gain-on-sale margin — positive operating leverage into Q4 .
Capital and liquidity robust with upsized revolver and simplified debt; management comfortable regarding regulatory caps; supports execution of synergy and recapture strategy .
AI is a real capacity lever: measurable throughput and conversion benefits should underpin structurally lower unit costs and faster response to rate-driven demand spikes .
Medium-term thesis: Vertically integrated origination + servicing + real estate platform, enhanced by AI, positions Rocket to outperform across rate cycles; 2026 outlook supported by market growth expectations and synergy run-rate realization .

Additional Detail

Liquidity/Balance Sheet: Total liquidity $9.3B at 9/30/25 (cash $5.8B, $1.1B undrawn lines, $2.0B undrawn MSR lines); undrawn lines upsized to $2.3B post-quarter; pro forma available cash ~$4B and total liquidity ~$11B as of Oct 1 with Mr. Cooper .
Servicing: UPB $613B, ~2.9M loans; ~ $1.7B annualized servicing fee income .
Segment contribution in Q3: DTC adjusted revenue $1,153M and contribution $469M; Partner adjusted revenue $168M and contribution $96M .