Rocket Companies Inc - Ordinary Shares Class A
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+ FollowMarket Cap$42.59B
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Earnings Call Q3 2026
October 29, 2026 - AI Summary
Q3 results (resilient execution in hardest mortgage backdrop): Adjusted revenue $2.6B (near midpoint of guidance), Adjusted EBITDA $748M / 29% margin (highest in ~5 years; 4th straight quarter of margin expansion), Adjusted net income $419M and $0.15 adjusted EPS. GAAP: revenue $3.3B, net income $79M. Volume: $40.4B net rate lock; $43.6B closed loan volume.
- Rates/industry context: 10Y Treasury up to ~5.3% (+80 bps), 30Y mortgage rate up to ~7.3% (+80 bps). Existing home sales fell below 4M annualized; refinance apps down >50% YoY; applications down 4 straight weeks to close the quarter.
Market share gains while others struggle (purchase & refinance mix): Purchase and refinance share both improved despite smaller market: Purchase share ~6.5% (vs 6.2% in Q2) and Refi share ~15.5% (vs 14.3%). Management attributes gains to (1) recapture strength, (2) Redfin/Compass distribution, (3) Rocket Local (in-market loan officers) and (4) Rocket Pro/wholesale expansion.
- Specific signals: Redfin purchase conversion +50% YoY; Redfin refinance leads >2x YoY in the quarter. Rocket Local now has 400+ loan officers, with >30% YoY volume growth; ~1 in 5 purchase clients represented by Redfin/Compass agents. Rocket Pro partners +200 added; $12B potential annualized volume.
Profit drivers & cost/tech strategy (what’s “good” and surprising):
- Recapture engine + servicing as ballast: Servicing fees $1B/quarter; servicing base $2T UPB / 9.1M clients. Q3 MSR fair value (net of hedges) increased to $710M, with management saying recapture is a natural hedge (limits need for hedging upside).
- Expense discipline: Total expenses $2.3B, down $175M QoQ; $300M of Mr. Cooper synergies realized in Q3 (remaining $100M expected in Q4 to reach $400M annualized, a year ahead of plan).
- Technology optionality: Management emphasizes proprietary AI and “agentic” processes (credit pulls, digital refi, AI voice) driving conversion and lowering cost per loan while maintaining capacity without fixed-cost headcount (claims $300B+ origination capacity built from technology investment).
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$2.13
85.8% downside
Current Fair Value
85.8% downsideOvervalued by 85.8% based on the discounted cash flow analysis.
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Share Statistics
| Market cap | $42.59 Billion |
|---|---|
| Enterprise Value | $66.90 Billion |
| Earnings per Share | $-0.03 |
| Beta | 2.25 |
| Outstanding Shares | 2,839,534,880 |
Return
| Return on Equity | 5.00% |
|---|---|
| Return on Assets | 1.93% |
| Return on Invested Capital | 3.96% |
Valuation & Multiples
| P/E Ratio | 27.52 |
|---|---|
| PEG | -4.09 |
| Price to Sales | 3.75 |
| Price to Book Ratio | 1.88 |
| Enterprise Value to Revenue | 4.9 |
| Enterprise Value to EBIT | 27.74 |
| Enterprise Value to Net Income | 56 |
| Total Debt to Enterprise | 0.41 |
| Debt to Equity | 1.16 |
Revenue Sources
No data
Last Earnings Call
Report Date
October 29, 2026
EPS Estimate
$0.14
Consensus analyst estimateRevenue Estimate
$2.58 B
Consensus analyst estimateNext Earnings Call
Expected Date
February 25, 2027
EPS Estimate
$0.13
Consensus analyst estimateRevenue Estimate
$2.36 B
Consensus analyst estimateInstitutional Put/Call Ratio
Compares institutional put options with call options. At 0.19, the ratio is below 1, so institutions hold more calls than puts.
| Put/Call Ratio | 0.1887▼ 26.56% |
|---|---|
| Total Calls | 2,819,700▼ 91.05% |
| Total Puts | 532,200▼ 96.28% |
Institutional Ownership
Holdings and activity of institutional investors.
| Ownership % | 0.82%▼ 33.45% |
|---|---|
| Total Invested | $268.06M▼ 98.24% |
| Investors Holding | 223▼ 648.00% |