Rocket Companies, Inc. 10-Q Summary: Q2 2026
Business Context and Reporting Period
This report covers the quarterly period ended June 30, 2026. Rocket Companies, Inc. operates as a vertically integrated homeownership platform encompassing mortgage origination, servicing, real estate brokerage (Redfin), and personal finance (Rocket Money). The company completed the acquisitions of Redfin (July 2025) and Mr. Cooper (October 2025) and finalized its Up-C Collapse in June 2025. As of Q2 2026, the company reports under a single segment structure: Mortgage, with other operations categorized as "All Other."
Key Financial Metrics
| Metric ($ Millions) | Q2 2026 | Q2 2025 | YTD 2026 | YTD 2025 |
|---|---|---|---|---|
| Total Revenue, Net | $2,784 | $1,451 | $5,725 | $2,553 |
| Net Income (Loss) | $229 | $34 | $526 | $(178) |
| Net Income Attributable to Rocket | $230 | $(2) | $527 | $(12) |
| Adjusted EBITDA | $766 | $172 | $1,504 | $342 |
| Cash and Cash Equivalents | $3,103 | $5,091 | $3,103 | $5,091 |
| Total Liquidity | $11,200 | N/A | $11,200 | N/A |
| Total Debt (Secured + Unsecured) | $27,411 | N/A | $27,411 | N/A |
Note: Total Debt calculated as Secured Financing ($16,639) + Unsecured Financing, net ($10,772).
Material Changes vs. Prior Period
- Revenue Growth: Total revenue increased 92% year-over-year (Q2) and 124% year-over-year (YTD), driven by higher mortgage origination volume and the inclusion of Redfin and Mr. Cooper results.
- Profitability: The company returned to profitability, reporting Net Income of $229 million in Q2 2026 compared to $34 million in Q2 2025. YTD 2026 Net Income was $526 million, a reversal from a $178 million loss in YTD 2025.
- Origination Volume: Closed loan volume reached $49.1 billion in Q2 2026, a 69% increase from $29.1 billion in Q2 2025. YTD volume was $93.8 billion, up 85%.
- MSR Portfolio: The Unpaid Principal Balance (UPB) of loans serviced grew to $1.21 trillion (excluding subserviced), significantly expanding the recurring revenue base from servicing fees.
- Expense Increases: Total expenses rose 75% in Q2 and 83% YTD, primarily due to higher variable compensation, acquisition-related costs, and increased interest expense from senior notes issued in 2025.
Outlook, Risks, and Management Commentary
- Market Environment: Management notes that elevated mortgage rates (near 6.5%) and inflation concerns have weighed on purchase and refinance activity, resulting in a muted spring homebuying season. However, improving labor markets provided some support.
- Integration: Integration of Redfin and Mr. Cooper is proceeding as expected, with organizational changes finalized to align with a single "Mortgage" reportable segment.
- Liquidity: The company maintains a strong liquidity position of $11.2 billion, including $3.1 billion in cash and significant undrawn credit lines.
- Legal Contingencies: A significant legal matter involving Rocket Close and HouseCanary resulted in a jury verdict of $175 million in damages in favor of HouseCanary in March 2026. Judgment has not been entered, and the company plans to vigorously defend the case. The company has recorded reserves of $103 million for legal proceedings as of June 30, 2026.
- Regulatory Compliance: The company remains in compliance with all regulatory net worth, capital ratio, and liquidity requirements.
Investor Verification Checklist
- Legal Exposure: Verify the status of the HouseCanary litigation and the potential impact of the $175 million verdict on future cash flows and reserves.
- Debt Maturity: Review the maturity schedule of Senior Notes, noting the redemption of $1.15 billion in notes due in October 2026 and the issuance of new notes in 2026.
- MSR Valuation Sensitivity: Assess the sensitivity of the $18.9 billion MSR asset to changes in interest rates and prepayment speeds, which significantly impact reported earnings.
- Integration Synergies: Monitor the realization of cost synergies and revenue cross-sell opportunities from the Redfin and Mr. Cooper acquisitions.
- Non-GAAP Reconciliations: Review the reconciliation of Adjusted EBITDA and Adjusted Net Income to understand the impact of non-cash MSR fair value adjustments and acquisition-related amortization.