Rocket Companies (RKT)
NYSE:RKT
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Rocket Companies
(NYSE:RKT)
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Rating:52Neutral
Price Target:
$14.50
▼(-22.38% Downside)
Action:ReiteratedDate:03/03/26
The score is held back primarily by weak and inconsistent cash generation (negative operating and free cash flow in 2024–2025) and a bearish technical setup (price below key moving averages with negative MACD). These are partly offset by a more de-risked balance sheet in 2025 and a positive earnings-call outlook highlighting market-share gains, integration synergies, and AI-driven operating leverage.
Positive Factors
Large servicing platform & recurring cash flow
A massive servicing portfolio and large user base create durable, recurring fee revenue and cross-sell opportunities. Servicing cash flow is less cycle-sensitive than originations, providing a steadier revenue stream, improving long-term cash predictability and strategic optionality.
Negative Factors
Persistent negative operating and free cash flow
Recurring negative cash flow undermines the company’s ability to self-fund growth, increases reliance on external financing or asset sales, and raises vulnerability during downturns. This weak cash conversion reduces financial flexibility despite headline liquidity balances.
Read all positive and negative factors
Positive Factors
Negative Factors
Large servicing platform & recurring cash flow
A massive servicing portfolio and large user base create durable, recurring fee revenue and cross-sell opportunities. Servicing cash flow is less cycle-sensitive than originations, providing a steadier revenue stream, improving long-term cash predictability and strategic optionality.
Read all positive factors
Rocket Companies (RKT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$43.71B
Dividend YieldN/A
Average Volume (3M)25.48M
Price to Earnings (P/E)―
Beta (1Y)0.38
Revenue Growth22.56%
EPS GrowthN/A
CountryUS
Employees14,200
SectorFinancial
Sector Strength70
IndustryFinancial - Mortgages
Share Statistics
EPS (TTM)0.11
Shares Outstanding970,935,900
10 Day Avg. Volume23,923,669
30 Day Avg. Volume25,478,887
Financial Highlights & Ratios
PEG Ratio3.02
Price to Book (P/B)1.12
Price to Sales (P/S)3.72
P/FCF Ratio-6.37
Enterprise Value/Market Cap1.01
Enterprise Value/Revenue6.47
Enterprise Value/Gross Profit7.14
Enterprise Value/Ebitda69.31
Forecast
1Y Price Target
$23.00Price Target Upside23.13% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering8
EPS Forecast (FY)0.72
Revenue Forecast (FY)$11.67B
Rocket Companies Business Overview & Revenue Model
Company Description
Rocket Companies, Inc. engages in the tech-driven real estate, mortgage, and e-Commerce businesses in the United States and Canada. It operates through two segments, Direct to Consumer and Partner Network. The company's solutions include Rocket Mo...
How the Company Makes Money
Rocket Companies primarily makes money through its mortgage banking activities and related services. A major revenue driver is originating residential mortgages: Rocket earns revenue from origination fees and by selling originated loans into the s...
Rocket Companies Key Performance Indicators (KPIs)
Any
Revenue by Segment
Analyzes revenue from different business segments, highlighting which areas drive growth and profitability, and revealing strategic focus and potential vulnerabilities.
Analyzes revenue from different business segments, highlighting which areas drive growth and profitability, and revealing strategic focus and potential vulnerabilities.
Data provided by:
The Fly
The FlyRocket Companies Earnings Call Summary
Earnings Call Date:Feb 26, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 30, 2026
Earnings Call Sentiment Positive
The call was broadly positive: the company beat Q4 revenue guidance, delivered strong volume and margin expansion, realized material integration synergies early, and highlighted sizable operating leverage from AI and automation that enabled higher volumes with lower headcount. Strategic moves (Redfin and Mr. Cooper acquisitions plus the Compass partnership) and scale metrics (market share gains, servicing UPB, liquidity) underpin a constructive outlook. Near-term presentation changes, reclassification and acquisition-related charges raise noise in Q1 results, and structural housing challenges (affordability, inventory) and macro/regulatory risks remain. On balance, operational outperformance and accelerating synergies substantially outweigh the noted near-term costs and market challenges.Positive Updates
Q4 Revenue Beat and Strong Top-Line
Adjusted revenue for Q4 of fiscal 2025 was $2.44 billion, beating the high end of guidance by $140 million.
Negative Updates
Near-Term Reclassification and Elevated First-Quarter Charges
Management will reclassify $150 million of warehouse interest expense from contra revenue to direct expense (no net P&L impact) and expects Q1 to include ~$110 million of intangible amortization, ~$85 million of stock compensation and ~$50 million of one-time acquisition-related costs—contributing to an expense guide of ≈$2.6 billion (underlying expenses ≈$2.2 billion).
Read all updates
Q4-2025 Updates
Positive
Negative
Q4 Revenue Beat and Strong Top-Line
Adjusted revenue for Q4 of fiscal 2025 was $2.44 billion, beating the high end of guidance by $140 million.
Read all positive updates
Company Guidance
Rocket guided first-quarter adjusted revenue of $2.6 billion to $2.8 billion (the midpoint includes a $150 million reclassification of warehouse interest expense), and expects total Q1 expenses of roughly $2.6 billion at the midpoint — which incorporate the $150 million reclassification, about $110 million of intangible asset amortization, roughly $85 million of stock‑based compensation, and an estimated $50 million of one‑time acquisition-related costs; excluding those items underlying expenses are expected to be about $2.2 billion. Management also flagged roughly $50 million of seasonal items in Q1 (payroll tax/401(k) resets and Rocket Money’s January marketing), emphasized the reclassification has no impact on profitability, and said the midpoint of guidance reflects conviction in continued mortgage origination market‑share gains.Rocket Companies Financial Statement Overview
Summary
Income Statement
54
Neutral
Balance Sheet
63
Positive
Cash Flow
31
Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 6.88B | 5.40B | 4.01B | 6.00B | 13.18B |
| Gross Profit | 6.30B | 4.93B | 3.65B | 5.68B | 12.68B |
| EBITDA | 890.00M | 780.97M | -292.63M | 835.93M | 6.26B |
| Net Income | -68.00M | 29.37M | -15.51M | 46.42M | 308.21M |
Balance Sheet | |||||
| Total Assets | 60.69B | 24.51B | 19.23B | 20.08B | 32.77B |
| Cash, Cash Equivalents and Short-Term Investments | 2.70B | 1.27B | 1.11B | 722.29M | 4.05B |
| Total Debt | 0.00 | 13.98B | 9.56B | 10.35B | 21.18B |
| Total Liabilities | 37.79B | 15.47B | 10.93B | 11.61B | 23.02B |
| Stockholders Equity | 22.90B | 702.50M | 624.90M | 576.70M | 665.66M |
Cash Flow | |||||
| Free Cash Flow | -4.02B | -3.43B | 49.99M | 10.72B | 7.44B |
| Operating Cash Flow | -3.93B | -2.63B | 110.33M | 10.82B | 7.74B |
| Investing Cash Flow | -2.53B | -495.47M | 861.15M | 578.74M | -664.85M |
| Financing Cash Flow | 8.10B | 3.28B | -623.56M | -12.82B | -6.92B |
Rocket Companies Technical Analysis
Negative
18.68
Price Trends
16.12
Negative
18.08
Negative
17.68
Negative
Market Momentum
-0.11
Negative
55.47
Neutral
83.76
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RKT, the sentiment is Negative. The current price of 18.68 is above the 20-day moving average (MA) of 14.62, above the 50-day MA of 16.12, and above the 200-day MA of 17.68, indicating a neutral trend. The MACD of -0.11 indicates Negative momentum. The RSI at 55.47 is Neutral, neither overbought nor oversold. The STOCH value of 83.76 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for RKT.
Rocket Companies Risk Analysis
Rocket Companies disclosed 64 risk factors in its most recent earnings report. Rocket Companies reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Rocket Companies Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
54 Neutral | $4.79B | 16.04 | 12.18% | 0.90% | 25.42% | 190.85% | |
52 Neutral | $43.71B | -376.48 | -0.68% | ― | 22.56% | ― | |
49 Neutral | $6.10B | 14.49 | 15.25% | 8.64% | -8.66% | ― | |
46 Neutral | $354.67M | -6.97 | -24.39% | ― | 3.91% | 27.78% |
* Financial Sector Average
RKT
Rocket Companies
16.63
5.08
43.98%
PFSI
PennyMac Financial
94.57
-1.37
-1.43%
LDI
loanDepot
1.79
0.69
62.73%
UWMC
UWM Holding
3.92
-0.22
-5.41%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.