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    RKT
    Earnings call· Jun 2026(Q2 FY26)

    Rocket Companies Q2 FY26 earnings call RKT

    Aug 6, 2026 Source

    Executive summary

    Rocket Companies Q2 FY26 — Profitable Market Share Growth Amidst Challenging Market

    Rocket Companies navigated a challenging Q2 FY26, marked by rising rates and weakened housing demand, by delivering its most profitable quarter in four years and achieving record market share gains. The company's diversified revenue base, strategic integrations, and AI-driven productivity improvements are strengthening its operating leverage and long-term earnings power, positioning it for accelerated growth when market conditions improve.

    Highlights

    5

    • Adjusted revenue was $2.8 billion, near the midpoint of guidance.

    • Adjusted EBITDA margin expanded to 28%, up from 26% in Q1.

    • Achieved highest ever quarterly market share in both purchase (6.2%) and refinance (14.3%).

    • Net corporate leverage ended the quarter at 0.9x, 20% lower since year-end.

    • Realized $100 million of annualized Mr. Cooper expense synergies, with an additional $100 million identified for H1 2027.

    Concerns

    3

    • Affordability deteriorated as mortgage rates moved higher through May and June, weakening demand.

    • Gain on sale margin, excluding correspondent, decreased to 311 basis points from 322 basis points in Q1.

    • Expected Q3 mortgage market to be smaller than Q2, something not seen since 2022.

    Guidance & targets

    4
    CategoryTargetConfidence
    Adjusted Revenue
    $2.5 billion to $2.7 billion
    high materiality
    High
    Expenses (excluding certain items)
    decrease approximately $100 million quarter-over-quarter
    medium materiality
    High
    Total Expenses
    approximately $2.35 billion
    medium materiality
    High
    Mr. Cooper Expense Synergies
    additional $100 million of annualized expense savings
    medium materiality
    High

    Segment performance

    1
    SegmentRevenueYoYQoQMargin
    Servicing
    Servicing generated steady cash flow and is a key competitive advantage, creating long-term client relationships and future origination opportunities.
    		$1B———

    Operational metrics

    28
    Adjusted Revenue
    $2.8Bnear midpoint of guidance
    Q2 FY26

    Reported adjusted revenue for the quarter.

    Adjusted EBITDA
    $766M
    Q2 FY26

    Reported adjusted EBITDA for the quarter.

    Adjusted EBITDA margin
    28%up from 26% in Q1
    Q2 FY26

    Expanded adjusted EBITDA margin.

    Adjusted Diluted EPS
    $0.16up from $0.15 in Q1
    Q2 FY26

    Reported adjusted diluted EPS, making it the most profitable quarter in 4 years.

    Total Net Rate Lock Volume
    $47B
    Q2 FY26

    Total net rate lock volume for the quarter.

    Total Closed Loan Volume
    $49B
    Q2 FY26

    Total closed loan volume for the quarter.

    Gain on Sale Margin (excluding correspondent)
    311down from 322 bps in Q1
    Q2 FY26

    Gain on sale margin, excluding correspondent channel.

    Revenue from Recurring or Less Rate-Sensitive Businesses
    >70%
    Q2 FY26

    Portion of revenue derived from stable sources like servicing, purchase mortgages, home equity, personal loans, and Redfin.

    Redfin Mortgage Leads Growth
    doubledYoY
    June

    Mortgage leads from Redfin increased significantly year-over-year.

    Redfin Mortgage Attach Rate
    47%approaching 50% target
    Q2 FY26

    Percentage of Redfin buy-side clients who finance with Rocket Mortgage.

    Loan Officer Productivity (Clients Served)
    40%vs 1 year ago
    Q2 FY26

    Loan officers are serving nearly 40% more clients due to AI and technology.

    Loan Officer Productivity (Conversion Improvement)
    double-digit
    Q2 FY26

    Double-digit improvements in conversion delivered by loan officers.

    Voice AI Calls Handled
    >1M
    since launch

    Voice AI for inbound servicing calls has handled over 1 million calls, with more than half resolved without requiring a servicing specialist.

    Home Equity Loans Originated (Homeowners)
    >250,000
    since launch

    Number of homeowners helped to access home equity since entering the category 4 years ago.

    Home Equity Loans Originated (Value)
    >$24B
    since launch

    Total value of home equity accessed by homeowners.

    Rocket Loans Volume Growth
    nearly doubledYoY
    first 6 months of 2026

    Loan volume for Rocket Loans increased significantly, culminating in a record month in June.

    Rocket Pro Brokers Net Rate Lock Volume (Compass Partnership)
    >$2B
    Q2 FY26

    Net rate lock volume originated through Rocket Pro brokers via the Compass partnership.

    Liquidity
    $11.2Bup $1.8B from Q1
    Q2 FY26 end

    Total liquidity at the end of the quarter.

    Net Corporate Leverage
    0.9x20% lower since year-end
    Q2 FY26 end

    Net corporate leverage ratio.

    Mr. Cooper Expense Synergies Realized
    $100Mannualized
    Q2 FY26

    Annualized expense synergies realized from the Mr. Cooper integration, in line with expectations.

    MSR Portfolio Unpaid Principal Balance
    $2T
    Q2 FY26 end

    Total unpaid principal balance of the servicing portfolio after MSR sales.

    MSR Portfolio with Note Rate Above 6%
    26%
    Q2 FY26 end

    Portion of the owned MSR portfolio carrying a note rate above 6%, representing a pool of clients for future refinance opportunities.

    Refinanced Debt Offering
    $1.5B
    June

    Successful senior note offering to refinance existing debt, supported by investment-grade rating.

    Redfin Exclusive Listings
    ~25,000
    Q2 FY26

    Exclusive listings offered by Redfin, expanding unique inventory.

    Lead Conversion (Product & AI)
    30%increased
    past year

    Product improvements and proprietary AI models have increased lead conversion.

    Existing Service Clients as % of Refinance Closed Volume
    57%up from 54% in Q1
    Q2 FY26

    Existing service clients contributed to a significant portion of refinance closed volume with near zero client acquisition costs.

    Mr. Cooper Revenue Synergy Target Realization
    more than halfway
    Q2 FY26

    Progress towards realizing the Mr. Cooper revenue synergy target.

    Origination Capacity
    >$300B
    Q2 FY26

    Origination capacity primed to capture upside when rates fall.

    Industry KPIs

    3
    MetricValueDetails
    Capital returns—
    Active consumers50Musers
    Client incentives rebates$20,000USD

    Deals & partnerships

    3
    RedfinIntegration of Redfin into Rocket's ecosystem to bring clients in earlier and improve lead conversion.

    Redfin reaches approximately 50 million monthly active users, providing a top-of-funnel for Rocket Mortgage.

    Mr. CooperIntegration of Mr. Cooper's servicing portfolio onto a single platform.

    Completed one of the largest servicing migrations in industry history.

    CompassPartnership to expand unique inventory and drive mortgage leads through Rocket Pro brokers.

    Allows Redfin to expand unique inventory not available on other major home search portals.

    Risks & headwinds

    3
    Deteriorating affordability due to rising mortgage ratesQ2 FY26, continuing into Q3 FY26

    Mortgage rates moved higher through May and June; 30-year fixed rate at 6.8% in recent weeks, 50 bps higher than H1 average, highest in over a year.

    Mitigation: Diversified revenue base (>70% less rate-sensitive), strategic integrations (Redfin, Mr. Cooper) driving share gains at low cost, AI-driven productivity, strong balance sheet.

    Weakening purchase and refinance demandQ2 FY26, expected to continue into Q3 FY26

    Industry forecasts moved lower; existing home sales near $4 million annualized; pending sales and purchase applications continue to decline.

    Mitigation: Gaining market share in both purchase (6.2%) and refinance (14.3%), leveraging Redfin leads, recapture engine, and preferred pricing incentives (up to $20,000 savings).

    Challenging mortgage market in Q3 FY26Q3 FY26

    Expected to be smaller than Q2 FY26, something not seen since 2022.

    Mitigation: Continued market share gains implied by guidance, cost discipline with $100M sequential expense reduction (excl. certain items), additional synergy realization.

    What to watch in Q3 FY26

    5

    Mr. Cooper integration expense synergies

    H1 2027
    Current$100M annualized realized in Q2, on track for $400M by year-end.
    TargetRealization of additional $100M annualized expense savings.

    Why it matters

    Indicates continued operational efficiency improvements and potential for margin expansion beyond initial targets.

    With the major Mr. Cooper integration milestones complete, we now have line of sight into approximately $100 million of annualized expense savings above our original goal of $400 million. We expect to realize these in the first half of 2027.

    Q&A highlights

    6

    Asked about the macro environment embedded in Q3 guidance and whether the expected $100M sequential expense reduction is volume-driven or a new run rate.

    Varun Krishna noted Q2 was tougher than expected but Rocket anticipated it. Brian Brown clarified the $100M expense reduction is primarily due to synergy realization, with some variable expense reduction, and that the remaining $200M of the $400M synergy goal will be realized in H2.

    “the $100 million from Q2 to Q3 is really primarily a result of that synergy value coming through the P&L.”

    asked by Ryan McKeveny · answered by Brian Brown

    2 min read6 chapters

    Detailed Narrative

    01

    Market Conditions and Resilience

    The second quarter saw unexpected deterioration in affordability due to rising mortgage rates, leading to a weaker spring home buying season than anticipated. Despite this, Rocket Companies delivered strong results, gaining market share and achieving its most profitable quarter in four years, demonstrating the resilience of its evolved business model.

    02

    Strategic Diversification and Ecosystem

    Over 70% of Rocket's revenue now comes from recurring or less rate-sensitive businesses, including servicing, purchase mortgages, home equity, personal loans, and Redfin. This diversification, coupled with the integration of Redfin and Mr. Cooper, creates a reinforcing ecosystem where each business strengthens others, improving client acquisition costs and lifetime value.

    03

    AI-Driven Productivity and Operating Leverage

    Artificial intelligence is a key enabler across the platform, improving productivity, personalization, and conversion. Loan officers are serving nearly 40% more clients with double-digit conversion improvements, while voice AI handles over 1 million servicing calls, resolving more than half without specialist intervention. This drives significant operating leverage and expands profitability.

    04

    Redfin and Compass Partnership Impact

    The Redfin integration is significantly enhancing client acquisition, with mortgage leads from Redfin doubling year-over-year in June and the mortgage attach rate reaching 47%. The Compass partnership has also generated over $2 billion in net rate lock volume for Rocket Pro brokers, expanding unique inventory and driving purchase share gains.

    05

    Servicing as a Strategic Asset

    Rocket's position as the nation's largest mortgage servicer provides a durable recurring revenue foundation and a continuous source of future origination opportunities. The recent servicing migration to a single platform and the active management of the MSR portfolio, including strategic sales with retained subservicing and recapture rights, optimize its value.

    06

    Balance Sheet Strength and Capital Allocation

    The company maintains a robust balance sheet with $11.2 billion in liquidity and a net corporate leverage of 0.9x. Its investment-grade rating and successful senior note offering underscore its financial strength, enabling continued investment through market cycles and opportunistic actions like MSR sales.

    AI-generated summary of the company’s earnings call. Not investment advice.