Revenue growth accelerated to $2.8B in 2026Q2 with a 30.9% efficiency ratio, but net interest income remained negative for six of the last seven quarters, with NIM at -0.3% in 2025Q4.
Rocket Companies, Inc. (RKT) annual income statement — 8-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 |
|---|
| Net Interest Income | -119.51M | -313M | -56.07M | -32.53M | 30.61M | -61.8M | -102.23M | -21.02M | -28.42M |
| NII Growth % | 533.75% | -458.22% | -72.39% | -206.27% | 149.53% | 39.55% | -386.37% | 26.04% | - |
| Net Interest Margin % | -0.2% | -0.52% | -0.23% | -0.17% | 0.15% | -0.19% | -0.27% | -0.1% | -0.25% |
| Interest Income | 285.46M | 501M | 413.16M | 327.45M | 350.59M | 430.09M | 329.59M | 250.75M | 200.93M |
| Interest Expense | 1.29B | 814M | 469.23M | 359.97M | 319.98M | 491.89M | 431.82M | 271.77M | 229.35M |
| Loan Loss Provision | -309.63M | -234M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Non-Interest Income | 9.52B | 6.38B | 4.99B | 3.68B | 5.65B | 12.75B | 15.57B | 4.95B | 4.11B |
| Non-Interest Income % | 101.27% | 105.16% | 101.14% | 100.89% | 99.46% | 100.49% | 100.66% | 100.43% | 100.7% |
| Total Net Revenue | 9.4B | 6.07B | 4.93B | 3.65B | 5.68B | 12.68B | 15.46B | 4.93B | 4.08B |
| Revenue Growth % | 103.29% | 22.99% | 35.28% | -35.87% | -55.18% | -17.98% | 213.52% | 20.9% | - |
| Non-Interest Expense | 5.9B | 5.7B | 4.26B | 4.05B | 4.94B | 6.5B | 5.93B | 4.03B | 3.46B |
| Efficiency Ratio | 62.77% | 93.97% | 86.46% | 111.05% | 86.95% | 51.24% | 38.36% | 81.66% | 84.85% |
| Operating Income | 547.78M | 600M | 668.05M | -402.9M | 741.91M | 6.18B | 9.53B | 904.44M | 618.1M |
| Operating Margin % | 5.82% | 9.89% | 13.54% | -11.05% | 13.05% | 48.76% | 61.64% | 18.34% | 15.15% |
| Operating Income Growth % | - | -10.19% | 265.81% | -154.31% | -88% | -35.11% | 953.87% | 46.32% | - |
| Pretax Income | 665.8M | -214M | 668.05M | -402.9M | 741.91M | 6.18B | 9.53B | 904.44M | 618.1M |
| Pretax Margin % | 7.08% | -3.53% | 13.54% | -11.05% | 13.05% | 48.76% | 61.64% | 18.34% | 15.15% |
| Income Tax | -114.52M | 20M | 32.22M | -12.82M | 41.98M | 112.74M | 132.38M | 7.31M | 3.24M |
| Effective Tax Rate % | -17.2% | -9.35% | 4.82% | 3.18% | 5.66% | 1.82% | 1.39% | 0.81% | 0.52% |
| Net Income | 471.15M | -68M | 29.37M | -15.51M | 46.42M | 308.21M | 197.95M | 0 | 0 |
| Net Margin % | 5.01% | -1.12% | 0.6% | -0.43% | 0.82% | 2.43% | 1.28% | 0% | 0% |
| Net Income Growth % | 153069.48% | -331.53% | 289.31% | -133.42% | -84.94% | 55.7% | - | - | - |
| Net Income (Continuing) | -55.64M | -234M | 635.83M | -390.08M | 699.93M | 6.07B | 9.4B | 897.13M | 614.86M |
| EPS (Diluted) | 0.17 | -0.03 | 0.01 | -0.01 | 0.02 | 0.15 | 1.83 | 0.00 | 0.00 |
| EPS Growth % | - | -292.31% | - | -133.05% | -84.27% | -91.8% | - | - | - |
| EPS (Basic) | - | -0.03 | 0.21 | -0.12 | 0.39 | 2.36 | 1.77 | 0.00 | 0.00 |
| Diluted Shares Outstanding | 2.84B | 2.47B | 2.05B | 1.98B | 1.97B | 1.99B | 116.24M | 101.21M | 101.21M |
Quick answers to the most common questions about buying RKT stock.
For fiscal year 2025, Rocket Companies, Inc. (RKT) reported total revenue of $6.07B. This represents a 48.7% increase compared to $4.08B in 2018.
Rocket Companies, Inc. (RKT) reported a net loss of $68.0M for the fiscal year ending 2025.
Rocket Companies, Inc. (RKT) reported an operating income of $600.0M, resulting in an operating profit margin of 8.7%. This margin reflects the operational efficiency of the business before interest and taxes.
Rocket Companies, Inc. (RKT) generated $6.30B in gross profit for the year, representing a gross profit margin of 91.6%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Negative net interest income
Metrics are mathematically derived from official filings.
Negative NII Persists
Rocket's net interest income has been negative for six consecutive quarters, with 2026Q1 showing $158M positive, but 2025Q4 at -$176M, indicating persistent spread compression.
The negative NII across most quarters suggests that funding costs exceed asset yields, a structural challenge for a mortgage-focused lender. The positive NII in 2026Q1 may indicate a turning point, but the volatility warrants close monitoring. Investors should assess whether the company can sustain positive NII given its reliance on servicing and fee income.
NIM Remains Negative
Net interest margin has been negative for the past year, with 2025Q4 at -0.3%, reflecting a cost of funds exceeding asset yields, as per reported financials.
The negative NIM indicates that Rocket's interest-bearing liabilities are costing more than the yield on its interest-earning assets. This is atypical for a bank and suggests a heavy reliance on non-interest income. The improvement to 0.3% in 2026Q1 is a positive sign, but sustainability is uncertain given the rate environment.
Efficiency Ratio Volatile
Efficiency ratio swung from 147.7% in 2024Q3 to 30.9% in 2026Q2, indicating significant operating leverage variability, based on quarterly data.
The efficiency ratio's wide swings reflect the cyclicality of mortgage volumes and the fixed cost base. The 30.9% in 2026Q2 is exceptionally low, suggesting strong revenue generation relative to expenses, but this may be driven by one-time gains. The 62% in 2026Q1 is more normalized, indicating that the company's cost structure remains elevated relative to revenue.
Provision Releases Boost Earnings
Provision for loan losses was negative in 2026Q2 (-$82M) and 2025Q3 (-$149.6M), indicating credit reserve releases that boosted net income, as per income statement data.
Negative provisions suggest that Rocket is releasing reserves previously set aside for loan losses, which may reflect improving credit quality or a shrinking loan portfolio. This is a non-operating source of earnings that may not be repeatable. Investors should monitor the adequacy of loan loss reserves relative to the portfolio's risk profile.
Fee Income Dominates Revenue
Non-interest income constitutes over 80% of total revenue in most quarters, with 2026Q2 at 118.2%, indicating a fee-driven business model, based on reported figures.
Rocket's revenue is overwhelmingly derived from fees, including mortgage servicing and origination fees, rather than interest income. This reduces exposure to interest rate risk but introduces sensitivity to mortgage market volumes. The high fee percentage also means that revenue is highly cyclical and dependent on housing market activity.
2026Q1 Marks Turnaround
2026Q1 saw a significant improvement with positive NII of $158M and net income of $297M, a stark contrast to prior quarters, indicating a potential inflection point.
The positive NII and strong net income in 2026Q1 suggest that Rocket may be benefiting from a more favorable rate environment or strategic shifts. However, the subsequent quarter's net income of $230M, while still positive, shows some moderation. This inflection warrants further investigation into the drivers, such as changes in funding costs or asset mix.
Earnings Quality Concerns
Despite recent profitability, Rocket's earnings quality may be undermined by negative NII, reliance on fee income, and provision releases, as per financial data.
The negative net interest income across most quarters suggests that the core lending business is not generating interest profits, which could be a red flag for a financial institution. The reliance on non-interest income, which is highly cyclical, and the use of provision releases to boost earnings, may not be sustainable. Investors should monitor whether the positive trends in 2026 are durable or merely temporary.