By Amira McKee
Rocket recorded higher fourth-quarter revenue on a double-digit boost in its direct to consumer segment.
The Detroit mortgage lender recorded net income of $68 million, or 2 cents a share, compared with $649 million, or 23 cents a share, a year earlier.
Adjusted earnings came in at 11 cents a share, ahead of the 9 cents analysts polled by FactSet expected.
Revenue grew by 52% to $2.69 billion, beating Wall Street's forecast of $2.22 billion, according to FactSet.
The top-line gains were driven by a boost in its direct to consumer segment revenue, which rose to $2.02 billion from $1.49 billion a year earlier. Net revenue from the company's network grew to $239 million, up from $135 million.
The owner of Redfin and Rocket Mortgage said that adjusted revenue, which accounts for the change in value of mortgage servicing rights, came in at $2.44 billion, above the high end of the company's guidance.
For the first quarter, Rocket forecast adjusted revenue of $2.6 billion to $2.8 billion. Analysts polled by FactSet are expecting revenue of $2.37 billion in the first quarter.
Rocket also said it entered into a three-year strategic alliance with Compass International that will involve its real estate company Redfin posting Compass's exclusive listings on its platform. Rocket Mortgage will become Compass's digital mortgage partner, expanding the company's distribution footprint with Compass' 340,000 agents, it said.
Beginning in the first quarter, Rocket will reclassify warehouse interest on loans held for sale from a contra-revenue account to a direct expense, which will increase the company's reported revenue and expense, but will not impact its net income or cash flow, the company said.
Write to Amira McKee at amira.mckee@wsj.com
(END) Dow Jones Newswires
February 26, 2026 16:42 ET (21:42 GMT)
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