Rocket Reports Third Quarter Net Loss
Rocket Companies, the Detroit-based parent of Rocket Mortgage, reported a significant net loss of $124 million for the third quarter. This loss occurred alongside net revenue of $1.61 billion.
Comparison to Previous Quarters
This latest performance reflects a contrast to the same quarter in the previous year, where the company faced a net loss of $481 million on $647 million in revenue. In the previous quarter, Rocket Companies achieved a net income of $34 million with net revenue of $1.36 billion.
CEO’s Statement on Performance
Varun Krishna, the CEO of Rocket Companies, expressed pride in the team’s accomplishments. He highlighted the company’s successful navigation of a challenging market while exceeding adjusted revenue guidance. Krishna mentioned the acquisition of Mr. Cooper, which is noted as the largest independent mortgage company deal in history.
Financial Highlights
- Adjusted net income for the third quarter: $158 million
- Adjusted revenue: $1.78 billion
- Comparison to last year’s adjusted revenue: $1.32 billion
Loan Origination Volume
Rocket Mortgage reported a robust closed loan origination volume of $32.4 billion. This figure represents a 14% increase from $28.5 billion during the same period last year. The gain-on-sale margin slightly improved to 2.80% from 2.78% in the third quarter of last year.
Strategic Growth Initiatives
With the recent acquisition, Rocket Companies is focused on building a comprehensive homeownership platform designed for the age of artificial intelligence. This strategy aims to enhance service delivery and consumer experience in the mortgage sector.
