“Rocket delivered an excellent quarter, balancing short-term and long-term execution in a category of one. I am very proud of the Rocket team for exceeding the high end of our adjusted revenue guidance, driving the Redfin momentum and closing the Mr. Cooper transaction – the largest independent mortgage company deal in history,” said Varun Krishna, CEO and managing director of Rocket Companies.
“We are building a vertically integrated home ownership platform for the AI age.”
As of September 30, Rocket had total liquidity of $9.3 billion, including $5.8 billion in cash, $1.1 billion in undrawn lines of credit and $2 billion in unused mortgage servicing rights (MSR).
The company’s servicing portfolio totaled $613 billion in unpaid principal (UPB) across approximately 2.9 million loans, generating approximately $1.7 billion in annualized servicing fee revenue.
Rocket Chief Financial Officer Brian Brown told investors during the earnings call Thursday afternoon that Rocket’s combined services portfolio is the largest in the industry, with a recapture rate three times the industry average.
Mr. Cooper, Redfin Integrations
During Thursday’s call, Krishna said the third quarter of 2025 was the strongest purchasing and refinancing quarter for the lender in the past three years. That was anchored by the success of the Redfin and Mr. Cooper, the last of which was completed on October 1.
“Redfin is already making a meaningful contribution to our retail channel. Closes from Redfin sources currently represent 13% of our direct-to-consumer closes. … The integration is exceeding expectations,” Brown said.
Krisha added that more than 500,000 Redfin users initiated home financing applications in September. “That’s more than double the number we saw in July,” he said.
Regarding the integration with Mr. Cooper, Krishna noted that on day nine of the process there were 4,000 leads in the pipeline. On day 12, Rocket had his first Mr. Cooper client closed from start to finish in just three days.
As of this week, Krishna said 400 loan officers from Mr. Cooper are fully on board Rocket mortgage.
“With a combined service portfolio of nearly 10 million customers, we now run the largest and most powerful recapture engine in the industry,” he said.
The deal boosted Rocket’s stock market cap to 35% and brought in Jay Bray, Mr. Cooper’s 30-year veteran of mortgage servicing and origination, who joined Rocket Mortgage as president and CEO. Brown also said during the call that Rocket had tapped Kurt Johnson, Mr. Cooper’s former CFO, to be its integration leader.
In addition, Rocket has increased its lending limit to $825,550 for single-family homes in 48 states. It has also redeemed multiple series Nationstar Mortgage Holdings senior notes following the transaction with Mr. Cooper, moves the company said would simplify its capital structure and improve financial flexibility.
Performance per channel
Rocket’s direct-to-consumer segment, which includes Rocket Mortgage’s retail channel and related services, saw significant growth in the third quarter.
The segment generated $975 million in GAAP revenue and $1.15 billion in adjusted revenue, compared to $1.01 billion a year earlier. Contribution margin increased to $469 million, compared to $456 million in the third quarter of 2024.
Rocket’s Partner Network, whatever its Rocket Pro brokerage channels and marketing and influencer partnerships generated $168 million in both GAAP and adjusted revenues, roughly flat from a year earlier. Contribution margin decreased from $112 million to $96 million during the year.
The volume of loans sold rose from $12.4 billion to $13.7 billion, although profit on sales fell from 1.47% to 1.11%.
Looking ahead, Rocket expects adjusted revenue between $2.1 billion and $2.3 billion in the fourth quarter, driven by three months of contributions from Redfin and Mr. Cooper.
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