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DETROIT - Rocket Companies (NYSE:RKT) reported first quarter earnings that met analyst expectations, while revenue came in above estimates. However, the company’s guidance for the second quarter fell short of Wall Street forecasts, sending shares down 1.6% in after-hours trading.
The Detroit-based fintech platform company posted adjusted earnings per share of $0.04 for Q1 2025, in line with the analyst consensus. Revenue totaled $1.3 billion, surpassing expectations of $1.25 billion.
Rocket’s adjusted revenue of $1.3 billion marked the high end of its previous guidance range. This represented a 11.4% increase compared to $1.16 billion in the same quarter last year.
"We entered 2025 with strength, delivering $1.3 billion in adjusted revenue, at the high end of our guidance range in the first quarter. This demonstrates the power of the Rocket platform and our ability to execute in any market," said Varun Krishna, CEO of Rocket Companies.
However, the company’s outlook for Q2 disappointed investors. Rocket forecast adjusted revenue between $1.175 billion to $1.325 billion, below the $1.5 billion analysts were expecting.
Rocket Mortgage generated $26.1 billion in net rate lock volume during Q1, up 17% year-over-year. Closed loan origination volume rose 7% to $21.6 billion.
The company’s gain on sale margin was 2.89%, down from 3.11% in Q1 2024.
Rocket ended the quarter with $8.1 billion in total liquidity, including $1.4 billion in cash.
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