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Rocket Companies
(NYSE:RKT)
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Rating:54Neutral
Price Target:
$14.00
▲(7.28% Upside)
Action:Reiterated
Date:08/09/26
The score is held in the mid-range primarily by weak cash generation (negative TTM operating and free cash flow) and mixed balance-sheet/leverage comparability, despite improving profitability. The latest earnings call adds support via strong execution, share gains, and synergy-driven cost discipline, but near-term guidance still points to softer revenue in a challenging mortgage market. Technically, the stock remains in a downtrend, and valuation is pressured by a very high P/E.
Positive Factors
Servicing scale & recurring revenue
A $2.0T servicing portfolio that produced ~$1B of steady cash in Q2 creates a large, less rate-sensitive recurring revenue base and strong recapture economics. That scale stabilizes cash flow across mortgage cycles, supports cross-sell economics, and underpins durable margin resilience.
Negative Factors
Negative operating and free cash flow
Sustained negative operating and free cash flow increases liquidity and earnings-quality risk if origination volumes or working capital don't normalize. Persistent cash burn forces reliance on capital markets or balance-sheet actions, constraining flexibility for investments or shareholder returns.
Read all positive and negative factors
Positive Factors
Negative Factors
Servicing scale & recurring revenue
A $2.0T servicing portfolio that produced ~$1B of steady cash in Q2 creates a large, less rate-sensitive recurring revenue base and strong recapture economics. That scale stabilizes cash flow across mortgage cycles, supports cross-sell economics, and underpins durable margin resilience.
Read all positive factors
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 (RKT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$38.82B
Dividend YieldN/A
Average Volume (3M)33.24M
Price to Earnings (P/E)88.3
Beta (1Y)0.61
Revenue Growth95.19%
EPS GrowthN/A
CountryUS
Employees23,500
SectorFinancial
Sector Strength70
IndustryFinancial - Mortgages
Share Statistics
EPS (TTM)0.16
Shares Outstanding980,550,300
10 Day Avg. Volume29,447,954
30 Day Avg. Volume33,244,154
Financial Highlights & Ratios
PEG Ratio6.20
Price to Book (P/B)2.09
Price to Sales (P/S)6.94
P/FCF Ratio-11.88
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$17.28Price Target Upside32.40% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering11
EPS Forecast (FY)0.67
Revenue Forecast (FY)$11.43B
Rocket Companies Business Overview & Revenue Model
Company Description
Rocket Companies, Inc. is a leading enterprise focused on leveraging technology across the real estate, mortgage, and e-commerce industries, with operations spanning the United States and Canada. The firm organizes its activities into two principa...
How the Company Makes Money
Rocket Companies primarily makes money through its mortgage business, led by Rocket Mortgage. Key revenue streams include: (1) Mortgage origination revenue: When Rocket originates home loans, it earns revenue from fees and margins associated with ...
Rocket Companies Earnings Call Summary
Earnings Call Date:Aug 06, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 29, 2026
Earnings Call Sentiment Positive
Overall the call conveyed a constructive tone: Rocket reported strong operational and financial execution (record profitability in four years, meaningful market share gains, substantial synergies realized, large recurring revenue base, strong liquidity and balance sheet), while clearly acknowledging a challenging macro housing backdrop and near-term revenue softness. Management emphasized durable structural advantages (servicing scale, Redfin funnel, AI-driven productivity, diversified products) that position the company to gain share and expand margins over time despite short-term market headwinds.Positive Updates
Strong Revenue and Profitability
Adjusted revenue of $2.8B (near midpoint of guidance) and adjusted EBITDA of $766M, representing a 28% adjusted EBITDA margin (up from 26% in Q1). Adjusted diluted EPS increased to $0.16 from $0.15 in Q1 (≈+6.7%), marking the most profitable quarter in four years.
Negative Updates
Tough Housing Market and Affordability Pressures
Second quarter experienced one of the toughest spring markets in years as mortgage rates moved higher through May and June, weakening purchase and refinance demand. Management expects the third-quarter mortgage market to be smaller than the second — a contraction not seen since 2022.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Revenue and Profitability
Adjusted revenue of $2.8B (near midpoint of guidance) and adjusted EBITDA of $766M, representing a 28% adjusted EBITDA margin (up from 26% in Q1). Adjusted diluted EPS increased to $0.16 from $0.15 in Q1 (≈+6.7%), marking the most profitable quarter in four years.
Read all positive updates
Company Guidance
For Q3 Rocket guided adjusted revenue of $2.5–$2.7 billion (management expects the mortgage market to be smaller than Q2 but still sees continued purchase and refinance share gains) and expenses at the midpoint of about $2.35 billion; that expense figure includes roughly $110 million of intangible amortization, $90 million of stock‑based compensation and about $100 million of one‑time acquisition‑related costs, and—excluding those items—expenses are expected to fall roughly $100 million sequentially. Management reiterated integration progress (realizing about $100 million of annualized Mr. Cooper expense synergies this quarter and stating line‑of‑sight to an incremental ~$100 million of annualized savings above the original $400 million target, expected to be realized in H1 2027), and emphasized balance‑sheet and capacity metrics that support the guide: end‑Q2 liquidity of $11.2 billion, net corporate leverage ~0.9x, servicing UPB ~$2 trillion, >$300 billion of origination capacity, and ~$320 billion (26% of owned MSR UPB) at note rates above 6%.Rocket Companies Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
51
Neutral
Cash Flow
33
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 9.81B | 6.88B | 5.40B | 4.01B | 6.00B | 13.18B |
| Gross Profit | 3.89B | 6.30B | 4.93B | 3.65B | 5.68B | 12.68B |
| EBITDA | 2.38B | 890.00M | 780.97M | -292.63M | 835.93M | 6.26B |
| Net Income | 471.15M | -68.00M | 29.37M | -15.51M | 46.42M | 308.21M |
Balance Sheet | ||||||
| Total Assets | 60.98B | 60.69B | 24.51B | 19.23B | 20.08B | 32.77B |
| Cash, Cash Equivalents and Short-Term Investments | 3.10B | 2.70B | 1.27B | 1.11B | 722.29M | 4.05B |
| Total Debt | 27.41B | 0.00 | 13.98B | 9.56B | 10.35B | 21.18B |
| Total Liabilities | 37.43B | 37.79B | 15.47B | 10.93B | 11.61B | 23.02B |
| Stockholders Equity | 23.55B | 22.90B | 702.50M | 624.90M | 576.70M | 665.66M |
Cash Flow | ||||||
| Free Cash Flow | -773.37M | -4.02B | -3.43B | 49.99M | 10.72B | 7.44B |
| Operating Cash Flow | -634.87M | -3.93B | -2.63B | 110.33M | 10.82B | 7.74B |
| Investing Cash Flow | -1.58B | -2.53B | -495.47M | 861.15M | 578.74M | -664.85M |
| Financing Cash Flow | 501.09M | 8.10B | 3.28B | -623.56M | -12.82B | -6.92B |
Rocket Companies Technical Analysis
Negative
13.05
Price Trends
13.97
Negative
14.29
Negative
16.45
Negative
Market Momentum
-0.18
Negative
48.91
Neutral
50.16
Neutral
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 13.05 is below the 20-day moving average (MA) of 13.75, below the 50-day MA of 13.97, and below the 200-day MA of 16.45, indicating a bearish trend. The MACD of -0.18 indicates Negative momentum. The RSI at 48.91 is Neutral, neither overbought nor oversold. The STOCH value of 50.16 is Neutral, 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% | |
59 Neutral | $4.02B | 10.24 | 9.14% | 1.42% | 24.08% | 0.60% | |
54 Neutral | $38.82B | 88.35 | 1.53% | ― | 95.19% | ― | |
47 Neutral | $2.05B | -15.33 | 33.91% | 21.86% | 34.88% | -440.08% | |
44 Neutral | $321.54M | -3.14 | -26.91% | ― | 17.11% | 9.17% |
* Financial Sector Average
RKT
Rocket Companies
13.72
-3.39
-19.81%
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77.41
-21.05
-21.38%
LDI
loanDepot
0.95
-0.76
-44.39%
UWMC
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1.28
-2.79
-68.58%
Rocket Companies Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Rocket Companies Terminates 2025 Revolving Credit Facility
Positive
Jul 17, 2026
On the closing date of the transaction in 2025, Rocket Companies terminated its Revolving Credit Agreement originally established on April 30, 2025, with Rocket Mortgage, LLC, various guarantors and lenders, and JPMorgan Chase Bank, N.A. The compa...
Business Operations and StrategyPrivate Placements and Financing
Rocket Companies Completes $1.5 Billion Senior Notes Offering
Positive
Jun 16, 2026
On June 16, 2026, Rocket Companies closed a $1.5 billion private offering of senior unsecured notes, issuing $900 million of 6.125% notes due 2031 and $600 million of 6.500% notes due 2034 to qualified institutional buyers and non-U.S. investors. ...
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
Rocket Companies Shareholders Back Directors and Equity Plan
Positive
Jun 10, 2026
On June 10, 2026, Rocket Companies, Inc. held its 2026 Annual Meeting of Stockholders, where investors elected three Class III directors—Varun Krishna, Matthew Rizik and Suzanne Shank—to serve until the 2029 annual meeting, solidifying...
Business Operations and StrategyPrivate Placements and Financing
Rocket Companies Upsizes Private Senior Notes Debt Offering
Positive
Jun 10, 2026
On June 9, 2026, Rocket Companies upsized and priced a private debt offering to $1.5 billion, issuing $900 million of 6.125% senior notes due 2031 and $600 million of 6.500% senior notes due 2034, each guaranteed on a senior unsecured basis by key...
Business Operations and StrategyFinancial DisclosuresM&A TransactionsPrivate Placements and FinancingRegulatory Filings and Compliance
Rocket Companies Announces $1.2 Billion Senior Notes Offering
Positive
Jun 9, 2026
On June 9, 2026, Rocket Companies, Inc. launched a private offering of $600 million in senior notes due 2031 and $600 million in senior notes due 2034, both guaranteed on a senior unsecured basis by key domestic subsidiaries. The company plans to ...
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.