By Dean Seal

Mortgage giant Rocket swung to a profit in the first quarter after acquisitions made last year helped boost revenue more than expected.

The Detroit mortgage lender said acquiring Mr. Cooper last fall has expanded its servicing portfolio and fueled a surge in loan servicing fees income. Tacking on Redfin last summer meanwhile ratched up its lead generation, it said.

"Rocket is not waiting for the market to get easier," Chief Executive Varun Krishna said.

The company also said that home equity and jumbo loans more than doubled from a year earlier thanks to strong demand from higher margin mortgage products.

The results arrive on the heels of a Redfin report that U.S. pending home sales have hit their highest level since the fall of 2022. Housing costs have come down and the median housing payment declined 2.2% from a year earlier.

Rocket posted a first-quarter profit of $297 million, or 10 cents a share, compared with a loss of $10 million, or 8 cents a share, a year earlier.

Excluding one-time items, adjusted earnings were 15 cents a share. Analysts surveyed by FactSet had been forecasting 11 cents a share.

Revenue climbed to $2.94 billion from $1.1 billion a year earlier, topping analyst projections for $2.76 billion.

For the second quarter, the company forecast revenue of $2.7 billion to $2.9 billion.

Write to Dean at dean.seal@wsj.com

(END) Dow Jones Newswires

May 07, 2026 17:12 ET (21:12 GMT)

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