Mr. Cooper acquisition, broker-facing advancements touted in strong Rocket quarter
Fueled by a completed acquisition and more broker-facing tools, Rocket Companies Inc. reported strong third-quarter results on Thursday evening.
The company touted revenue that exceeded expectations, double-digit origination growth, and the completion of the largest independent mortgage company deal in US history.
Rocket generated total net revenue of $1.61 billion for the third quarter of 2025, with adjusted revenue coming in at $1.78 billion, which was above the high end of the company’s guidance range. The company reported a GAAP net loss of $124 million, while adjusted net income reached $158 million. Adjusted EBITDA for the quarter was $349 million.
Varun Krishna, CEO and director, was thrilled with the outcome of the quarter for the Detroit-based company.
“Rocket delivered a standout quarter, balancing short and long-term execution in a category of one,” Krishna said. “I am very proud of the Rocket team for surpassing the high end of our adjusted revenue guidance range, accelerating Redfin momentum and closing the Mr. Cooper transaction—the largest independent mortgage company deal in history. We are building a vertically integrated homeownership platform for the AI era.”
Loan originations surge
Rocket’s mortgage business saw significant growth, with net mortgage rate lock volume climbing 20% year-over-year to $35.8 billion, and closed mortgage loan origination volume rising 14% to $32.4 billion.
The company’s gain-on-sale margin increased slightly to 2.80%. As of September 30, Rocket serviced a portfolio with an unpaid principal balance of $613 billion, covering 2.9 million loans and generating approximately $1.7 billion in annualized recurring servicing fee income.
Eric Hagen, managing director and mortgage and specialty finance analyst at BTIG, said Rocket is well-positioned in the recapture market if rates continue to drop, which will also boost the company’s stock.
“We think the stock supplies the most attractive interest rate profile to drive a high-teens return on equity in a steady state scenario,” Hagen said. “It could offer the highest quality source of upside if rates fall further, provided it can validate the recapture numbers. It currently has $300 billion, which could be in the money to refi at a 5.5% mortgage rate.
“Right now, we estimate around 40% would potentially mobilize/refi (over a 12-month period), and that it can recapture half of that, which comps to our current full-year estimate right now of $175 billion with rates at 6.25%.”
Mr. Cooper acquisition
On October 1, Rocket completed its all-stock acquisition of Mr. Cooper Group, Inc., exchanging each Mr. Cooper share for 11 shares of Rocket Companies Class A common stock. The deal increased Rocket’s Class A float to 35%. Mr. Cooper is the largest home loan servicer in the U.S.
With the acquisition, Jay Bray, former Chairman and CEO of Mr. Cooper, joined Rocket Mortgage as President and CEO. Bray brings more than 30 years of industry experience and “played a key role in the growth of the company’s servicing portfolio to become the largest in the industry.”
Broker-facing focus increased
At the Rocket Pro Experience event in Detroit, the company announced new broker partner commitments. It unveiled several new tools, including Rocket Pro Navigate, Rocket Pro Assist, and BrokerNearMe.com, all designed to empower mortgage brokers and enhance client service.
Dan Sogorka, general manager of Rocket Pro, said at the event that it was important for the company to address misconceptions that Rocket Pro and brokers are at odds.
“It’s your business who you do business with, even if that’s not us,” Sogorka said. “We’ll support you. We’ll never tie you down. Your terms, your choices. We believe the broker’s superpower is choice. We don’t believe they should be locked into using one platform, one technology suite or one lender. So everything that we do is kind of ecosystem-based, and we want to grow their business and earn their partnership.”
New AI tech in the mortgage industry aims to automate lending tasks, with Katie Sweeney, EVP of broker strategy & advocacy at Rocket Pro, seeing it as a way to improve work-life balance and strengthen human connections, not replace brokers. https://t.co/eqQBB5oVGA
— Mortgage Professional America Magazine (@MPAMagazineUS) June 18, 2025
The company has strengthened Rocket Pro by adding Sogorka and Katie Sweeney, among others, to boost its broker-facing offerings.
“I would say this is the first set of results of the path that we’re on, but it certainly won’t be the last,” he said. “Rocket Pro is all in on the broker channel. We believe in local relationships, and we have partners in every neighborhood around the country. Everything we do is to provide technology and support for them to run their business and grow their business. We’re excited to see what comes next.”
The company stated in its financial report that adjusted revenue for Q4 is expected to be between $2.1 billion and $2.3 billion.
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