Free cash flow exhibits extreme instability, ranging from a $3.0 billion outflow in 2024Q1 to a $1.8 billion inflow in 2026Q1, complicating the assessment of the firm's true cash-generating capacity.
| Cash from Operations | -1.27B | -3.93B | -2.63B | 110.33M | 10.82B | 7.74B | -1.68B | -6.98B | 1.43B |
| Operating CF Margin % | - | -57.08% | -48.68% | 2.75% | 180.25% | 58.77% | -10.55% | -134.1% | 33.21% |
| Operating CF Growth % | -1149.89% | -49.36% | -2483.09% | -98.98% | 39.77% | 561.67% | 75.96% | -587.62% | - |
| Net Income | 239.36M | -234M | 635.83M | -15.51M | 699.93M | 6.07B | 9.4B | 897.13M | 614.86M |
| Depreciation & Amortization | 354.51M | 290M | 112.92M | 110.27M | 94.02M | 74.71M | 74.32M | 74.95M | 76.92M |
| Stock-Based Compensation | 432.87M | 343M | 145.48M | 180.13M | 216M | 163.71M | 136.19M | 39.7M | 33.64M |
| Deferred Taxes | 52.12M | 12M | 29.35M | -17.78M | 36.17M | 48.32M | 66.53M | 0 | -1.97B |
| Other Non-Cash Items | -3.1B | -4.84B | -3.69B | 26.41M | 10.23B | 1.25B | -11.21B | -8.03B | 2.79B |
| Working Capital Changes | 838.51M | 502M | 133.17M | -173.19M | -452.61M | 136.65M | -138.76M | 35.48M | -113.16M |
| Change in Receivables | -434.41M | -436M | 5.29M | -8.73M | -1.04M | 12.42M | 7.25M | 3.76M | 5.04M |
| Change in Inventory | 0 | 0 | 0 | 0 | 1.04M | 0 | -7.25M | 0 | -68.46M |
| Change in Payables | -311.33M | -33M | 10.36M | 55.02M | -155.21M | 11.17M | 94.56M | 64.67M | -49.08M |
| Cash from Investing | -2.27B | -2.53B | -495.47M | 861.15M | 578.74M | -664.85M | 517.2M | 71.89M | -94.48M |
| Capital Expenditures | -90.49M | -91M | -67.51M | -60.34M | -107.76M | -118.29M | -106.35M | -48.84M | -64.47M |
| CapEx % of Revenue | 1.07% | 1.32% | 1.25% | 1.51% | 1.79% | 0.9% | 0.67% | 0.94% | 1.5% |
| Acquisitions | 0 | - | - | - | - | - | - | - | - |
| Investments | 734M | 0 | 9.52B | 6.9B | 7.5B | 21.84B | 30.48B | 14.75B | 6.57B |
| Other Investing | -133.41M | 2M | -427.96M | 920.48M | 684.45M | 727.73M | 626.05M | -16.08M | -1.33M |
| Cash from Financing | 5.09B | 8.1B | 3.28B | -623.56M | -12.82B | -6.92B | 1.76B | 7.23B | -1.67B |
| Debt Issued (Net) | 0 | - | - | - | - | - | - | - | - |
| Equity Issued (Net) | -175.09M | -186M | 40.6M | 24.88M | -139.94M | -189.6M | 1.75B | 0 | 0 |
| Dividends Paid | -233.32M | 0 | 0 | 0 | -2B | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | -177.7M | -231.58M | 0 | 0 | 0 |
| Other Financing | 79.31M | -105M | 9.17M | 2.37M | -182.77M | -3.99B | -6.74B | 114.24M | -706.85M |
| Net Change in Cash | 1.31B | 1.65B | 152.49M | 347.73M | -1.42B | 157.49M | 598.38M | 319.4M | -337.06M |
| Free Cash Flow | -1.39B | -4.02B | -3.43B | 49.99M | 10.72B | 7.44B | -1.78B | -7.03B | 1.37B |
| FCF Margin % | -16.43% | -58.4% | -63.58% | 1.25% | 178.45% | 56.48% | -11.22% | -135.04% | 31.72% |
| FCF Growth % | -10.81% | -16.99% | -6969.66% | -99.53% | 44.01% | 517.17% | 74.62% | -614.2% | - |
| FCF per Share | -0.49 | -1.62 | -1.67 | 0.03 | 5.43 | 3.74 | -15.35 | -69.43 | 13.50 |
| FCF Conversion (FCF/Net Income) | -5.82x | 57.75x | -89.52x | -7.11x | 233.16x | 25.13x | -8.47x | - | - |
| Interest Paid | 0 | 0 | 1.73M | 0 | 6.41M | 429.76M | 3.49M | 261.39M | 1.68M |
| Taxes Paid | 0 | 0 | 5.66M | 0 | 12.54M | 76.63M | 55.7M | 10.97M | 515K |
Cyclical mortgage volume sensitivity
As reported in financial statements, the relationship between net income and operating cash flow is highly erratic, with OCF/NI ratios swinging from -185.80 in 2024Q1 to 1036.48 in 2025Q2, indicating that GAAP earnings are frequently decoupled from the actual cash-generating capacity of the mortgage origination business.
The extreme divergence between net income and operating cash flow suggests that non-cash adjustments, particularly those related to Mortgage Servicing Rights (MSR) fair value changes, dominate the reported figures. Investors should monitor these swings closely, as they imply that bottom-line profitability is often a poor proxy for the company's ability to generate sustainable cash from its core operations.
Based on reported figures, free cash flow has demonstrated extreme instability, ranging from a $3.0 billion outflow in 2024Q1 to a $1.8 billion inflow in 2026Q1, which underscores the company's vulnerability to interest rate cycles and the inherent volatility of the mortgage origination market.
The erratic FCF trajectory suggests that the company's cash flow profile is highly sensitive to external macro factors rather than internal operational consistency. This volatility warrants further investigation into whether the current business model can achieve a stable cash-generative state without relying on favorable interest rate environments.
According to recent SEC filings, working capital changes have been a significant source of cash flow volatility, with fluctuations reaching as high as $391.1 million in 2025Q3, reflecting the complex and often unpredictable nature of managing mortgage-related assets and liabilities within the company's operating cycle.
These substantial shifts in working capital appear to be driven by the timing of loan sales and the management of servicing portfolios. The inconsistency in these movements suggests that liquidity management is heavily influenced by the pace of origination, which may create temporary cash crunches during periods of lower market activity.
Based on the provided data, stock-based compensation and MSR valuation adjustments frequently distort the cash flow statement, with SBC charges reaching $313.2 million in 2025Q4, which may obscure the true economic cost of maintaining the company's technology-heavy workforce and platform-based business model.
The reliance on non-cash adjustments to reconcile net income to operating cash flow suggests that the company's reported cash flow figures may not fully capture the underlying operational burn. Investors should be cautious, as these adjustments appear to mask the true cash impact of the company's aggressive investment in its proprietary technology stack.
Quick answers to the most common questions about buying RKT stock.
Rocket Companies, Inc. (RKT) generated $-3927.0M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Rocket Companies, Inc. (RKT) reported negative free cash flow of $4.02B in 2025, indicating capital requirements exceeded cash from operations.
Rocket Companies, Inc. (RKT) spent $91.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.