Operating margins remain highly unstable, fluctuating from a negative 66.4% in 2024Q3 to a positive 27.4% in 2026Q1, reflecting the company's vulnerability to mortgage origination volume shifts.
| Sales/Revenue | 8.48B | - | - | - | - | - | - | - | - |
| Revenue Growth % | - | - | - | - | - | - | - | - | - |
| Cost of Goods Sold | 0 | - | - | - | - | - | - | - | - |
| COGS % of Revenue | - | - | - | - | - | - | - | - | - |
| Gross Profit | 7.64B | 6.3B | 4.93B | 3.65B | 5.68B | 12.68B | 15.46B | 4.93B | 4.08B |
| Gross Margin % | 90.17% | 91.57% | 91.31% | 91.01% | 94.67% | 96.27% | 97.28% | 94.78% | 94.68% |
| Gross Profit Growth % | - | 27.73% | 35.28% | -35.87% | -55.18% | -17.98% | 213.52% | 20.9% | - |
| Operating Expenses | 6.32B | 5.7B | 4.26B | 4.05B | 4.94B | 6.5B | 5.93B | 4.03B | 3.46B |
| OpEx % of Revenue | - | 82.85% | 78.94% | 101.07% | 82.32% | 49.32% | 37.32% | 77.4% | 80.33% |
| Selling, General & Admin | 2.26B | 2.53B | 3.98B | 3.8B | 4.65B | 5.79B | 5.24B | 3.67B | 3.17B |
| SG&A % of Revenue | - | 36.73% | 73.66% | 94.78% | 77.43% | 43.94% | 32.97% | 70.58% | 73.66% |
| Research & Development | 0 | - | - | - | - | - | - | - | - |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 0 | - | - | - | - | - | - | - | - |
| Operating Income | 1.32B | 600M | 668.05M | -402.9M | 741.91M | 6.18B | 9.53B | 904.44M | 618.1M |
| Operating Margin % | 15.59% | 8.72% | 12.37% | -10.06% | 12.36% | 46.94% | 59.96% | 17.38% | 14.34% |
| Operating Income Growth % | - | -10.19% | 265.81% | -154.31% | -88% | -35.11% | 953.87% | 46.32% | - |
| EBITDA | 1.73B | 890M | 780.97M | -292.63M | 835.93M | 6.26B | 9.61B | 979.39M | 695.02M |
| EBITDA Margin % | 20.41% | 12.94% | 14.46% | -7.31% | 13.92% | 47.51% | 60.43% | 18.82% | 16.13% |
| EBITDA Growth % | 566.92% | 13.96% | 366.88% | -135.01% | -86.65% | -34.84% | 880.81% | 40.92% | - |
| D&A (Non-Cash Add-back) | 408.87M | 290M | 112.92M | 110.27M | 94.02M | 74.71M | 74.32M | 74.95M | 76.92M |
| EBIT | 1.32B | 600M | 668.05M | -402.9M | 741.91M | 6.18B | 9.53B | 904.44M | 618.1M |
| Net Interest Income | -144.61M | -313M | -56.07M | -32.53M | 30.61M | -61.8M | -102.23M | -21.02M | -28.42M |
| Interest Income | 915.96M | 501M | 413.16M | 327.45M | 350.59M | 430.09M | 329.59M | 250.75M | 200.93M |
| Interest Expense | 1.06B | 814M | 469.23M | 359.97M | 319.98M | 491.89M | 431.82M | 271.77M | 229.35M |
| Other Income/Expense | 0 | - | - | - | - | - | - | - | - |
| Pretax Income | 409.07M | -214M | 668.05M | -402.9M | 741.91M | 6.18B | 9.53B | 904.44M | 618.1M |
| Pretax Margin % | 4.83% | -3.11% | 12.37% | -10.06% | 12.36% | 46.94% | 59.96% | 17.38% | 14.34% |
| Income Tax | 133.66M | 20M | 32.22M | -12.82M | 41.98M | 112.74M | 132.38M | 7.31M | 3.24M |
| Effective Tax Rate % | 32.67% | -9.35% | 4.82% | 3.18% | 5.66% | 1.82% | 1.39% | 0.81% | 0.52% |
| Net Income | 239.36M | -68M | 29.37M | -15.51M | 46.42M | 308.21M | 197.95M | 0 | 0 |
| Net Margin % | 2.82% | -0.99% | 0.54% | -0.39% | 0.77% | 2.34% | 1.25% | - | - |
| Net Income Growth % | 8534.96% | -331.53% | 289.31% | -133.42% | -84.94% | 55.7% | - | - | - |
| Net Income (Continuing) | 275.45M | -234M | 635.83M | -390.08M | 699.93M | 6.07B | 9.4B | 897.13M | 614.86M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 8.34B | 7.68B | 7.9B | 9.09B | 7.39B | 5.01M | 6.17M |
| EPS (Diluted) | 0.08 | -0.03 | 0.01 | -0.01 | 0.02 | 0.15 | 1.83 | 0.00 | 0.00 |
| EPS Growth % | 6320% | -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 | 2.85B | 2.47B | 2.05B | 1.98B | 1.97B | 1.99B | 116.24M | 101.21M | 101.21M |
| Basic Shares Outstanding | 2.83B | 2.47B | 141.04M | 128.64M | 120.58M | 130.58M | 111.93M | 100.37M | 100.37M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - |
Cyclical mortgage volume sensitivity
As evidenced by the quarterly data, RKT's revenue has fluctuated significantly, ranging from a low of $748.8 million in 2024Q3 to $2.7 billion in 2026Q1, highlighting the company's extreme sensitivity to interest rate environments and the broader housing market's persistent inventory constraints.
The revenue trajectory suggests that the company remains tethered to the mortgage origination cycle despite efforts to diversify. Investors should monitor whether the recent peak in 2026Q1 represents a sustainable shift in market share or merely a temporary benefit from favorable rate movements.
Based on reported figures, operating margins have swung from a negative 66.4% in 2024Q3 to a positive 27.4% in 2026Q1, indicating that the company's high fixed-cost structure creates significant earnings volatility when origination volumes fail to meet internal thresholds.
The inability to consistently scale operating income relative to gross profit suggests that the company's cost base is not yet sufficiently flexible to withstand cyclical downturns. This lack of operating leverage warrants further investigation into whether AI-driven automation can eventually decouple production costs from volume fluctuations.
According to the income statement, net income has been inconsistent, with a notable $313.2 million stock-based compensation charge in 2025Q4 significantly impacting bottom-line results, suggesting that GAAP earnings may not fully reflect the underlying cash-generating capacity of the core mortgage business.
The presence of large, non-recurring charges and mark-to-market adjustments makes it difficult to assess the true economic profitability of the firm. Analysts should focus on adjusted metrics to strip away the noise created by MSR valuation changes and equity-based compensation.
As reported in financial statements, SG&A expenses frequently exceed $900 million per quarter, which appears to be a structural drag on profitability during periods of lower origination volume, such as the $1.0 billion SG&A expense recorded in 2024Q3.
The company's heavy investment in marketing and technology is intended to drive long-term lead generation, yet it creates a high break-even point that leaves little room for error. Investors should monitor whether management can maintain expense discipline if the current housing market stagnation persists.
Quick answers to the most common questions about buying RKT stock.
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.