"Adjusted net income totaled $422 million, compared with $80 million in the first quarter of 2025, while adjusted EBITDA increased to $738 million, up from $169 million. Diluted earnings per share were 10 cents, compared with a loss of 8 cents a year ago. In Q1, we beat guidance, expanded EBITDA margins and grew market share in both refinance and purchase, Rocket president and chief financial officer Brian Brown said during Thursday's earnings call, crediting the record quarter to margins that expanded to 26%."
"Rocket generated $49.4 billion in total net rate lock volume during the quarter and $44.7 billion in closed mortgage origination volume. Excluding correspondent lending, the company originated $37.8 billion in closed loan volume with a gain-on-sale margin of 3.22%. The company generated more than $1 billion in servicing fee income during the quarter, supported by a servicing portfolio that reached $2.1 trillion in unpaid principal balance across 9.4 million loans as of March 31."
"Total liquidity stood at $9.4 billion, including $2.7 billion in cash and cash equivalents. The company also had access to $2.3 billion in undrawn lines of credit and $4.4 billion in available mortgage servicing rights and advance lines of credit, its press release noted. Closed loan volume from our servicing portfolio hit an all-time high, with 54% of refinance closings coming from existing service clients, Brown added."
"Rocket's direct-to-consumer segment, Rocket Mortgage, generated $2.23 billion in total revenue during the first quarter, up from $793 million a year earlier. Adjusted revenue rose to $2.11 billion from $1.05 billion, while contribution margin increased to $1.15 billion from $407 million. Brown provided an update on Rocket's origination capacity. In 2024, Rocket reported that it had the capacity to originate up to $150 billion without adding fixed costs. We now have up to $300 billion of origination capacity with several hundred fewer production team members than we had"
Adjusted net income totaled $422 million versus $80 million in the first quarter of 2025, while adjusted EBITDA increased to $738 million from $169 million. Diluted earnings per share were 10 cents compared with a loss of 8 cents a year earlier. The quarter beat guidance, expanded EBITDA margins to 26%, and grew market share in both refinance and purchase. Total net rate lock volume reached $49.4 billion and closed mortgage origination volume totaled $44.7 billion. Excluding correspondent lending, closed loan volume was $37.8 billion with a gain-on-sale margin of 3.22%. Servicing fee income exceeded $1 billion, supported by a $2.1 trillion servicing portfolio across 9.4 million loans. Total liquidity was $9.4 billion, including $2.7 billion in cash, plus undrawn lines of credit and available MSR and advance lines. Rocket Mortgage generated $2.23 billion in total revenue, with adjusted revenue of $2.11 billion and contribution margin of $1.15 billion. Origination capacity increased to up to $300 billion without adding fixed costs, using fewer production team members than before.
#mortgage-origination #servicing-portfolio #financial-performance #liquidity-and-funding #rocket-mortgage-revenue
Read at www.housingwire.com
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