Rocket Companies Reports Q2 2025 Results Exceeding Expectations, Completes Redfin Acquisition

Rocket Companies reported Q2 2025 total revenue of $1.36 billion and adjusted net income of $75 million, exceeding expectations. The company completed an all-stock acquisition of Redfin, expanding its real estate presence. Rocket's liquidity remains robust at $9.1 billion, supporting strategic initiatives and operational enhancements. Closed loan origination volume increased 18% YoY to $29.1 billion, but gain-on-sale margins declined by 19 basis points to 2.80%.

Detroit, MI — Rocket Companies, Inc. (RKT) reported its second-quarter (Q2) 2025 financial results on Thursday, showing a mixed performance with total revenue of $1.36 billion and adjusted net income of $75 million, both exceeding Wall Street expectations [3]. The company also completed its all-stock acquisition of Redfin Corporation, which is expected to bolster its position across the home buying and financing journey [1].

Rocket Mortgage, the company's core business, originated $29.1 billion in closed loans during the quarter, marking an 18% year-over-year (YoY) increase [1]. Net rate lock volume, an indicator of future closings, also rose by 13% YoY to $28.4 billion [1]. However, gain-on-sale margins declined by 19 basis points to 2.80% [1].

Despite the increase in loan volume, the company's adjusted net income fell to $75 million from $121 million a year ago, primarily due to a decline in gain-on-sale margins and higher technology investments [1]. The company's total GAAP revenue was $1.36 billion, with adjusted revenue coming in at $1.34 billion, above the high end of company guidance [1].

A major highlight of the quarter was the completion of Rocket's acquisition of Redfin on July 1. Redfin, known for its tech-driven real estate marketplace with over 50 million monthly active visitors and more than 1 million listings, is expected to expand Rocket's purchase funnel and improve conversion rates [2]. CEO Varun Krishna emphasized that the company's growth is supercharged by AI and human capacity is no longer a limiting factor [1].

Looking ahead, Rocket expects adjusted revenue between $1.6 billion and $1.75 billion in the third quarter, which will reflect a full quarter of consolidated results from Redfin. The company remains on track to close its acquisition of Mr. Cooper in the fourth quarter and continues to invest in AI-powered tools and digital innovations designed to simplify the mortgage and home buying process [1].

Analysts have mixed opinions on Rocket's stock, with the current average analyst rating on the shares being "hold." The breakdown of recommendations is 1 "strong buy" or "buy," 9 "hold," and no "sell" or "strong sell" [2]. The stock recently traded at 28 times the next 12-month earnings, compared to a P/E of 23 three months ago [2].

References:
[1] https://nationalmortgageprofessional.com/news/rocket-mortgage-loan-volume-climbs-q2-profits-slide
[2] https://www.tradingview.com/news/reuters.com,2025:newsml_PLX8051CD:0-rocket-companies-q2-adjusted-revenue-profit-beats-expectations/
[3] https://www.washingtonpost.com/business/2025/07/31/earns-rocket-companies/a86ef660-6e4f-11f0-aab6-8141d7095676_story.html