Rocket Companies Shares Soar After Strong Q4 Results

Rocket Companies (NYSE: RKT) shares surged on Thursday, February 27, 2025, following the release of its solid fourth-quarter and full-year 2024 results. The Detroit-based fintech platform company reported total revenue of $1.8 billion and adjusted revenue of $1.2 billion for the quarter, with GAAP net income of $649 million ($0.23 per share) and adjusted net income of $85 million ($0.04 per share). For the full year, the company delivered total revenue of $5.1 billion (34% YoY growth) and adjusted revenue of $4.9 billion (30% YoY growth), with GAAP net income of $636 million ($0.21 per share) and adjusted EBITDA of $862 million.

The company's strong performance can be attributed to several factors, including its expansion of purchase market share, which grew by 8% year-over-year, and its significant operating leverage driven by its AI-driven platform. Additionally, Rocket Companies' closed loan origination volume increased by 61% in Q4 2024 compared to the same period in 2023, while its net rate lock volume grew by 47% over the same period. The company's servicing portfolio also expanded, with the unpaid principal balance growing by 17% YoY to $593 billion and the number of loans serviced increasing by 13% to 2.8 million.



Rocket Companies' CEO, Varun Krishna, attributed the company's success to its team's strong execution, stating, "2024 was a foundational year for the next chapter of Rocket. We expanded our purchase market share, drove significant operating leverage, and continued building the future of homeownership. I am proud of our team's strong execution which delivered $4.9 billion in adjusted revenue, a 30% year-over-year increase - demonstrating the power of our AI-driven platform."

In conclusion, Rocket Companies' strong Q4 and full-year 2024 results reflect the company's strategic focus on AI-driven platforms and market share expansion. With its robust performance and growth prospects, Rocket Companies is well-positioned for future success in the mortgage and real estate markets. Investors should consider the company's shares as a compelling opportunity in the current landscape.