Rocket Companies delivered robust financial results for the fourth quarter and full year of 2024, making leaps and bounds over its 2023 full year and fourth quarter results. That includes company’s shares which jumped about 7% in after-hours trading today, once the company released its earnings report.
In the last three months of 2024, Rocket Companies made $1.8 billion in revenue and earned $649 million in profit, which equals $0.23 per share. Adjusted revenue came in at $1.2 billion, and adjusted profit was $85 million, or $0.04 per share.
For the full year of 2024, Rocket Companies made $5.1 billion in total revenue, up 34% year-over-year. The company earned $636 million in profit, or $0.21 per share, compared to a $390 million net loss in 2023.
Adjusted revenue for the full year was $4.9 billion, growing 30% over last year, while adjusted profit reached $456 million, or $0.23 per share.
The company’s profit margin on sales for the full year increased 32 basis points to 2.98%. Gain on sale margin for the fourth quarter increased 30 basis points from the fourth quarter of 2023.
By the end of the year, Rocket had $8.2 billion in liquidity, with plenty of cash and credit to support its operations.
“2024 was a foundational year for the next chapter of Rocket,” said Rocket Companies CEO Varun Krishna. “I am proud of our team's strong execution which delivered $4.9 billion in adjusted revenue, a 30% year-over-year increase — demonstrating the power of our AI-driven platform.”
Rocket may also generate extra savings now that Rocket Homes is no longer facing an expensive legal battle against the Consumer Financial Protection Bureau (CFPB). A Rocket Homes spokesperson confirmed today that the case alleging that Rocket Homes, Jason Mitchell, and The Jason Mitchell Group real estate brokerages engaged in an illegal kickback scheme and steered borrowers to Rocket Mortgage, has been dismissed.
“It is good to see the truth come to light,” the spokesperson said. “This case was a misrepresentation of the facts, as we have said from the day the suit was filed.”
Servicing & Originations
Rocket Mortgage, the company’s leading business, handled $23.6 billion in mortgage rate locks in the fourth quarter, up 47% from the fourth quarter in 2023. It also closed $27.8 billion in loans in the fourth quarter, a 61% jump from last year’s fourth quarter.
For the full year of 2024, Rocket’s closed loan origination volume was $101.2 billion, a 29% increase from the year prior. Its total rate lock volume was $100.8 billion, 28% higher than in 2023.
“We expanded our purchase market share, drove significant operating leverage, and continued building the future of homeownership,” Krishna stated.
Purchase market share grew by 8% year-over-year in 2024. Rocket’s home equity loan volume more than doubled from last year, reinforcing Rocket Mortgage as the largest originator of closed end second mortgages in the country.
Rocket Companies continued to expand its servicing operations, ending the year with a servicing portfolio of $593 billion in unpaid principal balance, covering 2.8 million loans. This marked a 17% increase in total balance and a 13% rise in the number of loans serviced compared to 2023.
The company added $77 billion in unpaid principal balance through bulk acquisitions and subservicing, generating $1.5 billion in servicing fee income for the year. Client satisfaction was also reflected in its 97% net client retention rate, which the company believes is unmatched in the mortgage industry.
“Rocket Companies delivered exceptional growth in 2024, propelled by increased mortgage activity and strategic servicing expansion,” said Varun Krishna, CEO of Rocket Companies. “With a liquidity position of $8.2 billion and a 97% client retention rate, we remain well-positioned to drive innovation and long-term value in the mortgage industry.”
Besides servicing, the company’s proprietary AI-driven loan origination system, Rocket Logic, is transforming client interactions and underwriting efficiency, allowing retail bankers and operations teams to serve 54% more clients in the fourth quarter year-over-year. In 2024, automation in mortgage qualification alone saved over 1 million hours of team member time, generating $40 million in efficiency gains.
Rocket forecasts that in the first quarter of 2025, adjusted revenue will land between $1.175 billion to $1.325 billion.
"We have momentum heading into 2025 with the launch of our unified Rocket brand and Rocket.com platform,” Krishna added. “We're well positioned to help even more Americans find their path to homeownership."
