Technology
Rocket Companies Announces Fourth Quarter and Full Year 2023 Results
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2 years agoon
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Generated Q4’23 net revenue of $694 million and adjusted revenue of $885 million. Adjusted revenue exceeded the high end of guidance range, and year-over-year growth accelerated for a second quarter in a rowReported full year 2023 net revenue and adjusted revenue of $3.8 billionReduced cost structure by nearly 20% in 2023, following a nearly 25% cost reduction in 2022Reported Q4’23 GAAP net loss of $233 million, or $(0.09) per GAAP diluted loss per share and adjusted net loss of $6 million or $0.00 per adjusted diluted loss per shareDelivered adjusted EBITDA profitability for the full year and in Q4’23, for the third quarter in a row
DETROIT, Feb. 22, 2024 /PRNewswire/ — Rocket Companies, Inc. (NYSE: RKT) (“Rocket Companies” or the “Company”), the Detroit-based fintech platform company including mortgage, real estate and personal finance businesses, today announced results for the fourth quarter and full year ended December 31, 2023.
“I’m proud of our team members for consistent execution amid one of the most challenging years for mortgage originations in three decades. We demonstrated accelerating year-over-year revenue growth in the quarter, and positive adjusted EBITDA for the third quarter in a row. We once again made strides in market share, as our purchase and refinance share grew by double-digits in 2023,” said Varun Krishna, CEO and director of Rocket Companies. “We enter 2024 with momentum and Rocket is well-positioned to fulfill its strategy of AI-fueled home ownership. AI is being deployed across the organization to deliver industry-best client experiences, with the aim to achieve scaled growth in market share, revenue, and profitability.”
Fourth Quarter 2023 Financial Summary1
ROCKET COMPANIES
($ in millions, except per share amounts)
Q4-23
Q4-22
FY 23
FY 22
(Unaudited)
(Unaudited)
Total Revenue, net
$ 694
$ 481
$ 3,799
$ 5,838
Total Expenses
$ 937
$ 986
$ 4,202
$ 5,097
GAAP Net (Loss) Income
$ (233)
$ (493)
$ (390)
$ 700
Adjusted Revenue
$ 885
$ 683
$ 3,770
$ 4,628
Adjusted Net Loss
$ (6)
$ (197)
$ (143)
$ (137)
Adjusted EBITDA
$ 55
$ (204)
$ 67
$ 59
GAAP Diluted (Loss) Earnings Per Share
$ (0.09)
$ (0.14)
$ (0.15)
$ 0.28
Adjusted Diluted Loss Per Share
$ 0.00
$ (0.10)
$ (0.07)
$ (0.07)
($ in millions)
Q4-23
Q4-22
FY 23
FY 22
Select Metrics
(Unaudited)
(Unaudited)
Closed loan origination volume
$ 17,261
$ 19,030
$ 78,712
$ 133,129
Gain on sale margin
2.68 %
2.17 %
2.63 %
2.82 %
Net rate lock volume
$ 16,055
$ 15,012
$ 78,649
$ 117,757
1 “GAAP” stands for Generally Accepted Accounting Principles in the U.S. Please see the sections of this document titled “Non-GAAP Financial Measures” and “GAAP to non-GAAP Reconciliations” for more information on the Company’s non-GAAP measures and its share count. Certain figures in the tables throughout this document may not foot due to rounding.
Fourth Quarter and Full Year 2023 Financial Highlights
During the fourth quarter of 2023:
Generated total revenue, net of $694 million and GAAP net loss of $233 million, or a loss of 9 cents per diluted share. Generated total adjusted revenue of $885 million and adjusted net loss of $6 million, or an adjusted loss of 0 cents per diluted share.
Rocket Mortgage generated $17 billion in mortgage origination closed loan volume.
Gain on sale margin was 2.68%, a 51 bps increase over the same period the prior year.
Total liquidity was approximately $9.0 billion, as of December 31, 2023, which includes $1.1 billion of cash on the balance sheet, and $2.5 billion of corporate cash used to self-fund loan originations, $3.4 billion of undrawn lines of credit, and $2.0 billion of undrawn MSR lines of credit.
Servicing portfolio unpaid principal balance, which includes subserviced loans, was $509 billion at December 31, 2023. As of December 31, 2023, our servicing portfolio includes nearly 2.5 million loans serviced. The portfolio generates approximately $1.4 billion of recurring servicing fee income on an annualized basis.
During the full year of 2023:
Generated total revenue, net of $3.8 billion and GAAP net loss of $390 million, or a loss of 15 cents per diluted share. Generated total adjusted revenue of $3.8 billion and adjusted net loss of $143 million, or an adjusted loss of 7 cents per diluted share.
Rocket Mortgage generated $78.7 billion in mortgage origination closed loan volume and gain on sale margin of 2.63%.
Purchase market share grew by 14%, and refinance market share grew by 10% from 2022 to 2023.
We executed a disciplined and prudent approach to cost management. After cutting nearly 25% of our cost base in 2022, we further reduced expenses in 2023 by nearly 20%, through technology-led productivity gains, prioritization efforts and organizational right-sizing.
Rocket Mortgage net client retention rate was 97% for the 12 months ended December 31, 2023. There is a strong correlation between this metric and client lifetime value. We believe our net client retention rate is unmatched among mortgage companies and on par with some of the best performing subscription business models in the world.
Company Highlights
Automation and AI are helping to deliver higher accuracy and operational efficiency at scale in mortgage underwriting. In December, nearly two-thirds of income verifications were automated without an underwriter needing to intervene, a 5-fold improvement compared to 15 months prior. This technology has been extended to our broker partners, to further complement the offerings we provide to help them grow their business with Rocket.
In 2023, we facilitated 3.1 million servicing client interactions. Our servicing calls and chats are increasingly powered by AI, providing clients with smart, conversational, self-service experiences 24/7. Approximately 70% of our servicing calls and chats are self-serve without the need of team member assistance, with escalation to team members reserved for instances requiring the human touch. We have seen a continuing trend of lower call volume in servicing, as our AI-powered digital experiences become the preferred choice for our clients.
Home equity loans, ONE+ and BUY+ were innovative products that we introduced in 2023 which have resonated strongly with new and existing clients. Notably, the vast majority of clients who came to us through home equity loans, ONE+ or BUY+ were new clients who did not already have a loan with us. These innovative solutions, along with our purchase and refinance products, attract new clients to the Rocket ecosystem, allowing us to deliver great client service not only for the first time, but for their entire lives as homeowners.
In January and February, Rocket received numerous accolades across multiple industry outlets. Rocket Mortgage and Rocket Homes were honored on the HousingWire Tech 100 list in the Mortgage and Real Estate categories. Rocket Mortgage also received recognition from USA Today, Motley Fool and Nerdwallet.
In December, Rocket Money was the #1 app for daily downloads in the Apple App Store Finance category and reached #6 in the top iOS charts. Rocket Money also received recognition across numerous media outlets, including Business Insider, Bankrate and ZDNet. Rocket Money empowers consumers to take control of their financial future, amassing more than 5 million members and saving consumers $1 billion of cash over the last five years.
Rocket Homes launched its iOS app in Apple CarPlay and Apple Vision Pro, enabling consumers to use new modalities such as voice and virtual reality to search and discover their next dream home. In December, Rocket Homes launched an iOS app for Apple CarPlay, bringing the home search and discovery experience to the infotainment screens of cars, trucks and SUVs. In February, Rocket Homes launched the first home search app available for Apple Vision Pro, delivering an immersive experience that blends physical and virtual worlds to view and tour homes.
On January 4, 2024, the Company announced that Jonathan Mildenhall was named the first Chief Marketing Officer (CMO) of Rocket Companies. Mildenhall, previously CMO at Airbnb, and prior to that spent eight years at The Coca-Cola Company, brings 35 years of experience building best-in-class, iconic consumer brands. In this new role, Mildenhall will be responsible for reimagining the Rocket brand and creating a unified voice for businesses under the Rocket Companies umbrella.
The Board of Directors of Rocket Companies, upon the recommendation of the Nominating and Governance Committee of the Board, voted to expand the Board to nine directors and fill the newly created vacancies by appointing Varun Krishna, the Company’s Chief Executive Officer, and Alex Rampell, on December 21, 2023 and February 1, 2024, respectively. Rampell currently serves as General Partner at Andreessen Horowitz and serves on the boards of several Andreessen Horowitz portfolio companies.
Rocket Corporate Responsibility: For-More-Than-Profit
The Rocket Mortgage Classic recently announced that it raised $1.6 million to support local Detroit nonprofit organizations through the 2023 tournament. Since 2019, the Rocket Mortgage Classic has invested more than $8.4 million into local charitable organizations, including $4.3 million in contributions to the event’s landmark “Changing the Course” initiative to connect Detroit residents to high-speed internet, digital devices and digital training. The Rocket Mortgage Classic was also named the recipient of the PGA TOUR’s “Fair Way Award” for the second time. The award recognizes tournaments that excel at diversity, inclusion and social responsibility programs promoting equity, fairness, respect and openness in the local community.
In October, the Rocket Community Fund, a partner company, along with Detroit Mayor Mike Duggan and the United Community Housing Coalition announced that 104 Detroit families were able to become homeowners through the Make It Home program in 2023, bringing the program’s total to 1,500 families that have avoided tax foreclosure-related displacement since the program’s launch in 2017. Make It Home enables eligible Detroiters occupying tax-foreclosed houses to become homeowners, rather than face eviction.
In December, the Rocket Community Fund and the Legal Aid Society of Cleveland announced a $1.3 million investment to create the Cleveland Eviction Defense Fund. This strategic partnership combats housing instability and displacement by providing comprehensive legal representation, advocacy and emergency rental assistance to Cleveland residents. The Rocket Community Fund’s commitment to rental assistance is based, in part, on findings from Neighbor to Neighbor, the organization’s flagship community outreach and engagement program.
First Quarter 2024 Outlook2
In Q1 2024, we expect adjusted revenue of between $925 million to $1,075 million.
2 Please see the section of this document titled “Non-GAAP Financial Measures” for more information.
Direct to Consumer
In the Direct to Consumer segment, clients have the ability to interact with the Rocket Mortgage app and/or with the Company’s mortgage bankers. The Company markets to potential clients in this segment through various brand campaigns and performance marketing channels. The Direct to Consumer segment derives revenue from originating, closing, selling and servicing predominantly agency-conforming loans, which are pooled and sold to the secondary market. The segment also includes title insurance, appraisals and settlement services complementing the Company’s end-to-end mortgage origination experience. Servicing activities are fully allocated to the Direct to Consumer segment and are viewed as an extension of the client experience. Servicing enables Rocket Mortgage to establish and maintain long term relationships with our clients, through multiple touchpoints at regular engagement intervals.
DIRECT TO CONSUMER3
($ in millions)
Q4-23
Q4-22
FY 23
FY 22
(Unaudited)
(Unaudited)
Sold loan volume
$ 10,360
$ 11,919
$ 43,598
$ 84,142
Sold loan gain on sale margin
4.04 %
4.03 %
3.86 %
4.14 %
Revenue, net
$ 484
$ 325
$ 2,989
$ 4,780
Adjusted Revenue
$ 675
$ 527
$ 2,960
$ 3,569
Contribution margin
$ 264
$ 46
$ 1,036
$ 1,051
Partner Network
The Rocket Professional platform supports our Partner Network segment, where we leverage our superior client service and widely recognized brand to grow marketing and influencer relationships, and our mortgage broker partnerships through Rocket Pro TPO (“third party origination”). Our marketing partnerships consist of well-known consumer-focused companies that find value in our award-winning client experience and want to offer their clients mortgage solutions with our trusted, widely recognized brand. These organizations connect their clients directly to us through marketing channels and a referral process. Our influencer partnerships are typically with companies that employ licensed mortgage professionals that find value in our client experience, technology and efficient mortgage process, where mortgages may not be their primary offering. We also enable clients to start the mortgage process through the Rocket platform in the way that works best for them, including through a local mortgage broker.
PARTNER NETWORK3
($ in millions)
Q4-23
Q4-22
FY 23
FY 22
(Unaudited)
(Unaudited)
Sold loan volume
$ 8,460
$ 9,132
$ 34,893
$ 60,499
Sold loan gain on sale margin
1.16 %
0.95 %
1.05 %
1.05 %
Revenue, net
$ 110
$ 71
$ 439
$ 639
Adjusted Revenue
$ 110
$ 71
$ 439
$ 639
Contribution margin
$ 61
$ 12
$ 198
$ 276
3 We measure the performance of the Direct to Consumer and Partner Network segments primarily on a contribution margin basis. Contribution margin is intended to measure the direct profitability of each segment and is calculated as Adjusted Revenue less directly attributable expenses. Directly attributable expenses include salaries, commissions and team member benefits, general and administrative expenses, and other expenses, such as direct servicing costs and origination costs. A loan is considered “sold” when it is sold to investors on the secondary market. See “Summary Segment Results” section later in this document and the footnote on “Segments” in the “Notes to Consolidated Financial Statements” in the Company’s forthcoming filing on Form 10-K for more information.
Balance Sheet and Liquidity
Total available cash was $3.6 billion as of December 31, 2023, which includes $1.1 billion of cash and cash equivalents, and $2.5 billion of corporate cash used to self-fund loan originations. Additionally, we have access to $3.4 billion of undrawn lines of credit, and $2.0 billion of undrawn MSR lines of credit from financing facilities, for a total liquidity position of $9.0 billion as of December 31, 2023.
BALANCE SHEET HIGHLIGHTS
($ in millions)
December 31, 2023
December 31, 2022
(Unaudited)
Cash and cash equivalents
$ 1,108
$ 722
Mortgage servicing rights (“MSRs”), at fair value
$ 6,440
$ 6,947
Funding facilities
$ 3,367
$ 3,549
Other financing facilities and debt
$ 4,237
$ 4,701
Total equity
$ 8,302
$ 8,476
Fourth Quarter and Full Year Earnings Call
Rocket Companies will host a live conference call at 4:30 p.m. ET on February 22, 2024 to discuss its results for the quarter ended December 31, 2023. A live webcast of the event will be available online by clicking on the “Investor Info” section of our website. The webcast will also be available via rocketcompanies.com.
A replay of the webcast will be available on the Investor Relations site following the conclusion of the event.
Consolidated Statements of Income (Loss)
($ In Thousands, Except Per Share Amounts)
Three Months Ended December 31,
Years Ended December 31,
2023
2022
2023
2022
(Unaudited)
(Unaudited)
Revenue
Gain on sale of loans
Gain (loss) on sale of loans excluding fair value of
MSRs, net
$ 187,832
$ (7,498)
$ 973,960
$ 1,166,770
Fair value of originated MSRs
242,305
288,281
1,092,332
1,970,647
Gain on sale of loans, net
430,137
280,783
2,066,292
3,137,417
Loan servicing (loss) income
Servicing fee income
347,743
370,633
1,401,780
1,458,637
Change in fair value of MSRs
(357,845)
(407,126)
(700,982)
185,036
Loan servicing (loss) income, net
(10,102)
(36,493)
700,798
1,643,673
Interest income
Interest income
86,079
85,101
327,448
350,591
Interest expense on funding facilities
(44,905)
(35,812)
(206,588)
(166,388)
Interest income, net
41,174
49,289
120,860
184,203
Other income
232,597
187,213
911,319
873,200
Total revenue, net
693,806
480,792
3,799,269
5,838,493
Expenses
Salaries, commissions and team member benefits
484,793
519,024
2,257,291
2,797,868
General and administrative expenses
207,651
196,342
802,865
906,195
Marketing and advertising expenses
142,823
175,413
736,676
945,694
Depreciation and amortization
26,593
23,987
110,271
94,020
Interest and amortization expense on non-funding
debt
38,365
38,333
153,386
153,596
Other expenses
36,486
33,111
141,677
199,209
Total expenses
936,711
986,210
4,202,166
5,096,582
(Loss) income before income taxes
(242,905)
(505,418)
(402,897)
741,911
Benefit from (provision for) income taxes
10,211
12,763
12,817
(41,978)
Net (loss) income
(232,694)
(492,655)
(390,080)
699,933
Net loss (income) attributable to non-controlling
interest
222,059
475,039
374,566
(653,512)
Net (loss) income attributable to Rocket Companies
$ (10,635)
$ (17,616)
$ (15,514)
$ 46,421
(Loss) earnings per share of Class A common stock:
Basic
$ (0.08)
$ (0.14)
$ (0.12)
$ 0.39
Diluted
$ (0.09)
$ (0.14)
$ (0.15)
$ 0.28
Weighted average shares outstanding
Basic
133,597,434
121,751,798
128,641,762
120,577,548
Diluted
1,987,457,044
121,751,798
1,980,523,690
1,971,620,573
Consolidated Balance Sheets
($ In Thousands)
December 31,
2023
December 31,
2022
Assets
(Unaudited)
Cash and cash equivalents
$ 1,108,466
$ 722,293
Restricted cash
28,366
66,806
Mortgage loans held for sale, at fair value
6,542,232
7,343,475
Interest rate lock commitments (“IRLCs”), at fair value
132,870
90,635
Mortgage servicing rights (“MSRs”), at fair value
6,439,787
6,946,940
Notes receivable and due from affiliates
19,530
10,796
Property and equipment, net
250,856
274,192
Deferred tax asset, net
550,149
537,963
Lease right of use assets
347,696
366,189
Forward commitments, at fair value
26,614
22,444
Loans subject to repurchase right from Ginnie Mae
1,533,387
1,642,392
Goodwill and intangible assets, net
1,236,765
1,258,928
Other assets
1,015,022
799,159
Total assets
$ 19,231,740
$ 20,082,212
Liabilities and equity
Liabilities:
Funding facilities
$ 3,367,383
$ 3,548,699
Other financing facilities and debt:
Senior Notes, net
4,033,448
4,027,970
Early buy out facility
203,208
672,882
Accounts payable
171,350
116,331
Lease liabilities
393,882
422,769
Forward commitments, at fair value
142,988
25,117
Investor reserves
92,389
110,147
Notes payable and due to affiliates
31,006
33,463
Tax receivable agreement liability
584,695
613,693
Loans subject to repurchase right from Ginnie Mae
1,533,387
1,642,392
Other liabilities
376,294
393,200
Total liabilities
$ 10,930,030
$ 11,606,663
Equity
Class A common stock
$ 1
$ 1
Class B common stock
—
—
Class C common stock
—
—
Class D common stock
19
19
Additional paid-in capital
340,532
276,221
Retained earnings
284,296
300,394
Accumulated other comprehensive income
52
69
Non-controlling interest
7,676,810
7,898,845
Total equity
8,301,710
8,475,549
Total liabilities and equity
$ 19,231,740
$ 20,082,212
Summary Segment Results for the Years Ended December 31, 2023 and 2022,
($ in millions)
(Unaudited)
Three Months Ended December 31, 2023
Direct to
Consumer
Partner
Network
Segments Total
All Other
Total
Total U.S. GAAP Revenue, net
$ 484
$ 110
$ 594
$ 100
$ 694
Change in fair value of MSRs due to valuation
assumptions, net of hedges
191
—
191
—
191
Adjusted Revenue
$ 675
$ 110
$ 784
$ 100
$ 885
Less: Directly attributable expenses
410
49
459
85
544
Contribution margin (1)
$ 264
$ 61
$ 325
$ 15
$ 340
Three Months Ended December 31, 2022
Direct to
Consumer
Partner Network
Segments Total
All Other
Total
Total U.S. GAAP Revenue, net
$ 325
$ 71
$ 396
$ 84
$ 481
Change in fair value of MSRs due to valuation
assumptions, net of hedges
202
—
202
—
202
Adjusted Revenue
$ 527
$ 71
$ 598
$ 84
$ 683
Less: Directly attributable expenses
480
60
540
54
594
Contribution margin (1)
$ 46
$ 12
$ 58
$ 31
$ 89
Years Ended December 31, 2023
Direct to
Consumer
Partner Network
Segments Total
All Other
Total
Total U.S. GAAP Revenue, net
$ 2,989
$ 439
$ 3,428
$ 371
$ 3,799
Change in fair value of MSRs due to valuation
assumptions, net of hedges
(29)
—
(29)
—
(29)
Adjusted Revenue
$ 2,960
$ 439
$ 3,399
$ 371
$ 3,770
Less: Directly attributable expenses
1,924
240
2,165
328
2,492
Contribution margin (1)
$ 1,036
$ 198
$ 1,234
$ 44
$ 1,278
Years Ended December 31, 2022
Direct to
Consumer
Partner Network
Segments Total
All Other
Total
Total U.S. GAAP Revenue, net
$ 4,780
$ 639
$ 5,419
$ 420
$ 5,838
Change in fair value of MSRs due to valuation
assumptions, net of hedges
(1,211)
—
(1,211)
—
(1,211)
Adjusted Revenue
$ 3,569
$ 639
$ 4,208
$ 420
$ 4,628
Less: Directly attributable expenses
2,518
362
2,880
359
3,239
Contribution margin (1)
$ 1,051
$ 276
$ 1,327
$ 61
$ 1,388
(1)
We measure the performance of the segments primarily on a contribution margin basis. Contribution margin is intended to measure the direct profitability of each segment and is calculated as Adjusted Revenue less directly attributable expenses. Adjusted Revenue is a non-GAAP financial measure described below. Directly attributable expenses include salaries, commissions and team member benefits, general and administrative expenses, marketing and advertising expenses and other expenses, such as direct servicing costs and origination costs.
GAAP to non-GAAP Reconciliations
Adjusted Revenue Reconciliation
($ in millions)
Three Months Ended December 31,
Years Ended December 31,
2023
2022
2023
2022
(Unaudited)
(Unaudited)
Total revenue, net
$ 694
$ 481
$ 3,799
$ 5,838
Change in fair value of MSRs due to
valuation assumptions (net of
hedges) (1)
191
202
(29)
(1,211)
Adjusted Revenue
$ 885
$ 683
$ 3,770
$ 4,628
(1)
Reflects changes in assumptions including discount rates and prepayment speed assumptions, mostly due to changes in market interest rates, and the effects of contractual prepayment protection associated with sales or purchases of MSRs.
Adjusted Net Loss Reconciliation
($ in millions)
Three Months Ended
December 31,
Years Ended
December 31,
2023
2022
2023
2022
(Unaudited)
(Unaudited)
Net (loss) income attributable to Rocket Companies
$ (11)
$ (18)
$ (16)
$ 46
Net (loss) income impact from pro forma conversion of Class D
common shares to Class A common shares (1)
(222)
(474)
(373)
656
Adjustment to the benefit from (provision for) income tax (2)
49
120
85
(139)
Tax-effected net (loss) income (2)
(183)
(372)
(303)
563
Share-based compensation expense (3)
35
48
177
234
Change in fair value of MSRs due to valuation assumptions (net of
hedges) (4)
191
202
(29)
(1,211)
Career transition program (5)
—
—
51
81
Change in Tax receivable agreement liability (6)
7
(10)
7
(34)
Tax impact of adjustments (7)
(57)
(65)
(50)
226
Other tax adjustments (8)
1
1
4
4
Adjusted Net Loss
$ (6)
$ (197)
$ (143)
$ (137)
(1)
Reflects net (loss) income to Class A common stock from pro forma exchange and conversion of corresponding shares of our Class D common shares held by non-controlling interest holders as of December 31, 2023 and 2022.
(2)
Rocket Companies is subject to U.S. Federal income taxes, in addition to state, local and Canadian taxes with respect to its allocable share of any net taxable (loss) income of Holdings. The Adjustment to the benefit from (provision for) income tax reflects the difference between (a) the income tax computed using the effective tax rates below applied to the (loss) income before income taxes assuming Rocket Companies, Inc. owns 100% of the non-voting common interest units of Holdings and (b) the (benefit from) provision for income taxes. The effective income tax rate was 24.47% and 24.40% for the three months and year ended December 31, 2023, respectively, and 26.31% and 24.29% for three months and year ended December 31, 2022, respectively.
(3)
The years ended December 31, 2023 and 2022 amounts exclude the impact of the career transition program.
(4)
Reflects changes in assumptions including discount rates and prepayment speed assumptions, mostly due to changes in market interest rates, and the effects of contractual prepayment protection associated with sales or purchases of MSRs.
(5)
Reflects net expenses associated with compensation packages, healthcare coverage, career transition services, and accelerated vesting of certain equity awards.
(6)
Reflects changes in estimates of tax rates and other variables of the Tax receivable agreement liability.
(7)
Tax impact of adjustments gives effect to the income tax related to share-based compensation expense, the change in fair value of MSRs due to valuation assumptions, career transition program, and the change in Tax receivable agreement liability, at the effective tax rates for each period.
(8)
Represents tax benefits due to the amortization of intangible assets and other tax attributes resulting from the purchase of Holdings units, net of payment obligations under Tax Receivable Agreement.
Adjusted Diluted Weighted Average Shares Outstanding Reconciliation
($ in millions, except per share amounts)
Three Months Ended
December 31,
Years Ended
December 31,
2023
2022
2023
2022
(Unaudited)
(Unaudited)
Diluted weighted average Class A Common shares outstanding
1,987,457,044
121,751,798
1,980,523,690
1,971,620,573
Assumed pro forma conversion of Class D shares (1)
—
1,848,879,483
—
—
Adjusted diluted weighted average shares outstanding
1,987,457,044
1,970,631,281
1,980,523,690
1,971,620,573
Adjusted Net Loss
$ (6)
$ (197)
$ (143)
$ (137)
Adjusted Diluted Loss Per Share
$ 0.00
$ (0.10)
$ (0.07)
$ (0.07)
(1)
Reflects the pro forma exchange and conversion of non-dilutive Class D common stock to Class A common stock. For the years ended December 31, 2023 and 2022 and the three months ended December 31, 2023, Class D common shares were dilutive and are included in the diluted weighted average Class A common shares outstanding in the table above. For the three months ended December, 31, 2022, Class D common shares were anti-dilutive and therefore included in the pro forma conversion of Class D shares in the table above.
Adjusted EBITDA Reconciliation
($ in millions)
Three Months Ended
December 31,
Years Ended
December 31,
2023
2022
2023
2022
(Unaudited)
(Unaudited)
Net (loss) income
$ (233)
$ (493)
$ (390)
$ 700
Interest and amortization expense on non-funding debt
38
38
153
154
(Benefit from) provision for income taxes
(10)
(13)
(13)
42
Depreciation and amortization
27
24
110
94
Share-based compensation expense (1)
35
48
177
234
Change in fair value of MSRs due to valuation assumptions (net of
hedges) (2)
191
202
(29)
(1,211)
Career transition program (3)
—
—
51
81
Change in Tax receivable agreement liability (4)
7
(10)
7
(34)
Adjusted EBITDA
$ 55
$ (204)
$ 67
$ 59
(1)
The years ended December 31, 2023 and 2022 amounts exclude the impact of the career transition program.
(2)
Reflects changes in assumptions including discount rates and prepayment speed assumptions, mostly due to changes in market interest rates, and the effects of contractual prepayment protection associated with sales or purchases of MSRs.
(3)
Reflects net expenses associated with compensation packages, healthcare coverage, career transition services, and accelerated vesting of certain equity awards.
(4)
Reflects changes in estimates of tax rates and other variables of the Tax receivable agreement liability.
Non-GAAP Financial Measures
To provide investors with information in addition to our results as determined by GAAP, we disclose Adjusted Revenue, Adjusted Net Income (Loss), Adjusted Diluted Earnings (Loss) Per Share and Adjusted EBITDA (collectively “our non-GAAP financial measures”) as non-GAAP measures. We believe that the presentation of our non-GAAP financial measures provides useful information to investors regarding our results of operations because each measure assists both investors and management in analyzing and benchmarking the performance and value of our business. Our non-GAAP financial measures are not calculated in accordance with GAAP and should not be considered as a substitute for Total revenue, net, Net income (loss), or any other operating performance measure calculated in accordance with GAAP. Other companies may define non-GAAP financial measures differently, and as a result, our measures of our non-GAAP financial measures may not be directly comparable to those of other companies. Our non-GAAP financial measures provide indicators of performance that are not affected by fluctuations in certain costs or other items. Accordingly, management believes that these measurements are useful for comparing general operating performance from period to period, and management relies on these measures for planning and forecasting of future periods. Additionally, these measures allow management to compare our results with those of other companies that have different financing and capital structures.
We define “Adjusted Revenue” as total revenues net of the change in fair value of mortgage servicing rights (“MSRs”) due to valuation assumptions (net of hedges). We define “Adjusted Net Income (Loss)” as tax-effected earnings (losses) before share-based compensation expense, the change in fair value of MSRs due to valuation assumptions (net of hedges), career transition program, change in Tax receivable agreement liability, and the tax effects of those adjustments as applicable. We define “Adjusted Diluted Earnings (Loss) Per Share” as Adjusted Net Income (Loss) divided by the diluted weighted average number of Class A common stock outstanding for the applicable period, which assumes the pro forma exchange and conversion of all outstanding Class D common stock for Class A common stock. We define “Adjusted EBITDA” as earnings (losses) before interest and amortization expense on non-funding debt, income tax, depreciation and amortization, share-based compensation expense, change in fair value of MSRs due to valuation assumptions (net of hedges), career transition program, and change in Tax receivable agreement liability.
We exclude from each of our non-GAAP financial measures the change in fair value of MSRs due to valuation assumptions (net of hedges) as this represents a non-cash non-realized adjustment to our total revenues, reflecting changes in assumptions including discount rates and prepayment speed assumptions, mostly due to changes in market interest rates, which is not indicative of our performance or results of operation. We also exclude effects of contractual prepayment protection associated with sales of MSRs. Adjusted EBITDA includes Interest expense on funding facilities, which are recorded as a component of Interest income, net, as these expenses are a direct cost driven by loan origination volume. By contrast, interest and amortization expense on non-funding debt is a function of our capital structure and is therefore excluded from Adjusted EBITDA.
Our definitions of each of our non-GAAP financial measures allow us to add back certain cash and non-cash charges, and deduct certain gains that are included in calculating Total revenue, net, Net income (loss) attributable to Rocket Companies or Net income (loss). However, these expenses and gains vary greatly, and are difficult to predict. From time to time in the future, we may include or exclude other items if we believe that doing so is consistent with the goal of providing useful information to investors.
Although we use our non-GAAP financial measures to assess the performance of our business, such use is limited because they do not include certain material costs necessary to operate our business. Our non-GAAP financial measures can represent the effect of long-term strategies as opposed to short-term results. Our presentation of our non-GAAP financial measures should not be construed as an indication that our future results will be unaffected by unusual or nonrecurring items. Our non-GAAP financial measures have limitations as analytical tools, and you should not consider them in isolation or as a substitute for analysis of our results as reported under U.S. GAAP. Because of these limitations, our non-GAAP financial measures should not be considered as measures of discretionary cash available to us to invest in the growth of our business or as measures of cash that will be available to us to meet our obligations.
For financial outlook information, the Company is not providing a quantitative reconciliation of Adjusted Revenue to the most directly comparable GAAP measure because the GAAP measure cannot be reliably estimated and the reconciliation cannot be performed without unreasonable effort due to their dependence on future uncertainties and adjusting items that the Company cannot reasonably predict at this time but which may be material.
Forward Looking Statements
Some of the statements contained in this document are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are generally identified by the use of words such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “should,” “target,” “will,” “would” and, in each case, their negative or other various or comparable terminology. These forward-looking statements reflect our views with respect to future events as of the date of this document and are based on our management’s current expectations, estimates, forecasts, projections, assumptions, beliefs and information. Although management believes that the expectations reflected in these forward-looking statements are reasonable, it can give no assurance that these expectations will prove to have been correct. All such forward-looking statements are subject to risks and uncertainties, many of which are outside of our control, and could cause future events or results to be materially different from those stated or implied in this document. It is not possible to predict or identify all such risks. These risks include, but are not limited to, the risk factors that are described under the section titled “Risk Factors” in our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and other filings with the Securities and Exchange Commission (“SEC”). These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this document and in our SEC filings. We expressly disclaim any obligation to publicly update or review any forward-looking statements, whether as a result of new information, future developments or otherwise, except as required by applicable law.
About Rocket Companies
Founded in 1985, Rocket Companies (NYSE: RKT) is a Detroit-based fintech platform company including personal finance and consumer technology brands Rocket Mortgage, Rocket Homes, Amrock, Rocket Money, Rocket Loans, Rocket Mortgage Canada, Lendesk, Core Digital Media and Rocket Connections.
The Company helps clients achieve the goal of home ownership and financial freedom through industry-leading client experiences powered by its simple, fast and trusted digital solutions. J.D. Power has ranked Rocket Mortgage #1 in client satisfaction for both primary mortgage origination and servicing a total of 21 times.
For more information, please visit our Corporate Website or Investor Relations Website.
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SOURCE Rocket Companies, Inc.
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HydraForce, Elevāt, and Bosch Rexroth Announce Enhanced Remote OTA Update Capabilities for Off-Highway Equipment
Published
42 minutes agoon
July 23, 2026By
SEATTLE, July 23, 2026 /PRNewswire/ — Building on their strategic collaboration, HydraForce, a global leader in motion control systems and Elevāt, an industrial IoT and applied AI platform provider, announced a significant advancement in remote machine management.
The HydraForce Connected Control Unit (CCU) from Bosch, integrated with Elevāt software, is now capable of providing remote access and performing over-the-air (OTA) updates on Bosch Rexroth BODAS controllers.
This enhanced capability empowers HydraForce and Elevāt customers to streamline operations, reduce downtime, and significantly improve machine performance and serviceability. By leveraging the integrated solution, OEMs can use the Elevāt platform to remotely diagnose issues and deploy critical software updates to the BODAS controllers on their equipment without requiring on-site service personnel.
“The ability to remotely access and update Bosch Rexroth BODAS controllers using the Elevāt platform takes our collaborative vision of bridging hydraulics, electronics, and digital services to the next level,” said Russ Schneidewind, director of business developmentat at HydraForce. “The cooperation between Elevāt and Bosch Rexroth is directly addressing the industry’s need for complete, future-ready solutions.”
Adam Livesay, co-founder and CEO of Elevāt, commented, “At Elevāt, we believe the future of equipment service is connected, intelligent, and proactive. This collaboration helps OEMs deliver the next generation of service by accelerating software deployment and enabling faster issue resolution in the field. The addition of remote BODAS controller updates is another key milestone toward a fully integrated ecosystem that simplifies the connection between hardware, software, and digital services—helping manufacturers bring intelligent equipment to market faster while creating new opportunities for recurring customer value.”
HydraForce and Elevāt plan to further their collaboration with additional remote machine management capabilities to be announced in the future.
About HydraForce HydraForce is a global designer and manufacturer of motion control systems, encompassing hydraulic cartridge valves, manifolds and electronic controls for a variety of off-highway industries, including farming, construction, marine, material handling, mining, and forestry. HydraForce was acquired by Bosch Rexroth, becoming a significant part of the Compact Hydraulics Business Unit. Bosch Rexroth and HydraForce combine their presence in complementary regions to provide comprehensive coverage in Europe and North America, while enabling growth in Asia.
About Bosch Rexroth As one of the world’s leading suppliers of drive and control technologies, Bosch Rexroth ensures efficient, powerful and safe movement in machines and systems of any size. The company bundles global application experience in the market segments of Mobile and Industrial Applications as well as Factory Automation. With its intelligent components, customized system solutions, engineering and services, Bosch Rexroth is creating the necessary environment for fully connected applications. Bosch Rexroth offers its customers hydraulics, electric drive and control technology, gear technology and linear motion and assembly technology, including software and interfaces to the Internet of Things. With locations in over 80 countries, around 31,900 associates generated sales revenue of 6.5 billion euros in 2025. To learn more, please visit www.boschrexroth.com.
About Bosch Having established a presence in North America in 1906, today the Bosch Group employs around 38,000 associates in more than 100 locations in the North American region (as of Dec. 31, 2024). According to preliminary figures, Bosch generated consolidated sales of $18.7 billion in the U.S., Mexico and Canada in 2025. For more information visit www.bosch.us, www.bosch.mx and www.bosch.ca. The Bosch Group is a leading global supplier of technology and services. It employs roughly 412,000 associates worldwide (as of December 31, 2025). According to preliminary figures, the company generated sales of 91 billion euros in 2025. Its operations are divided into four business sectors: Mobility, Industrial Technology, Consumer Goods, and Energy and Building Technology. With its business activities, the company aims to use technology to help shape universal trends such as automation, electrification, digitalization, connectivity, and an orientation to sustainability. In this context, Bosch’s broad diversification across regions and industries strengthens its innovativeness and robustness. Bosch uses its proven expertise in sensor technology, software, and services to offer customers cross-domain solutions from a single source. It also applies its expertise in connectivity and artificial intelligence in order to develop and manufacture user-friendly, sustainable products. With technology that is “Invented for life,” Bosch wants to help improve quality of life and conserve natural resources. The Bosch Group comprises Robert Bosch GmbH and its roughly 490 subsidiary and regional companies in over 60 countries. Including sales and service partners, Bosch’s global manufacturing, engineering, and sales network covers nearly every country in the world. Bosch’s innovative strength is key to the company’s further development. At 136 locations across the globe, Bosch employs some 82,000 associates in research and development. The company was set up in Stuttgart in 1886 by Robert Bosch (1861-1942) as “Workshop for Precision Mechanics and Electrical Engineering.” The special ownership structure of Robert Bosch GmbH guarantees the entrepreneurial freedom of the Bosch Group, making it possible for the company to plan over the long term and to undertake significant upfront investments in the safeguarding of its future. Ninety-four percent of the share capital of Robert Bosch GmbH is held by Robert Bosch Stiftung GmbH, a limited liability company with a charitable purpose. The remaining shares are held by Robert Bosch GmbH and by a company owned by the Bosch family. The majority of voting rights are held by Robert Bosch Industrietreuhand KG. It is entrusted with the task of safeguarding the company’s long-term existence and in particular its financial independence – in line with the mission handed down in the will of the company’s founder, Robert Bosch. Additional information is available online at www.bosch-press.com, www.bosch.com.
About Elevāt Elevāt is a leading industrial IoT and applied AI platform purpose-built for off-highway OEMs. Elevāt enables manufacturers to connect machines, unlock actionable intelligence, and deliver next-generation digital services across the entire equipment lifecycle. Additional information is available online at www.getelevat.com
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SOURCE Elevat, Inc
Technology
FutureSports launches as new index provider transforming sports statistics into tradable financial instruments
Published
42 minutes agoon
July 23, 2026By
Backed by leading financial and sports institutions, firm will leverage partnerships to bring critical new hedging vehicles to sports ecosystem
CHICAGO, July 23, 2026 /PRNewswire/ — FutureSports, the new independent index administrator transforming professional and college sports statistics into rules-based, benchmark financial indexes, today announced its emergence from stealth. Backed by a broad range of leading financial and sports institutions, FutureSports in the coming months will announce a series of partnerships, collaborations and products that will bring significant new risk management and trading opportunities to the massive ecosystem supporting the most popular sports.
FutureSports previously raised a seed investment round co-led by Marquee Ventures, spun out of the ownership group of the Chicago Cubs. Major financial industry leaders joined the round, including CME Ventures (the corporate venture capital division of CME Group), Robinhood Markets, Inc., WEDBUSH and DRW Special Investments (an investment arm of DRW). Other investors include Motivate VC, Phoenix Capital Ventures, and John and Linda Henry (Fenway Sports Group).
The company also announced the addition of industry experts to its board of directors, including Chairman Mark Wassersug, longtime Chief Operating & Information Officer of Intercontinental Exchange (ICE); Tim McCourt, Senior Managing Director, Global Head of Equity, FX, and Alternative Products at CME Group, and Erik Hammer, Managing Partner at Marquee Ventures.
The firm will soon unveil its first series of exclusive partnerships with major sports leagues, paving the way for institutional investors and companies in and around the sports industry to manage their risk in an unprecedented fashion and participate in regulated, tradable, broad-based index futures contracts based on team and athlete statistical performance. FutureSports creates rules-based financial indexes, known as FutureSports Performance Indexes (FSPI), that accurately represent the performance of teams and athletes in prominent sports leagues. By utilizing transparent, rules-based methodologies based on officially reported statistical outcomes, the company creates continuous values designed to underpin tradable financial products, such as listed derivatives, exchange-traded funds (ETFs) and over-the-counter (OTC) swaps.
Potential market participants will include league broadcasting partners, team and athlete sponsors and endorsers, insurers, stadium owners and operators, private equity investors, lenders, and apparel manufacturers. Asset managers, pension funds and professional trading firms are expected to participate in the contracts and contribute to liquidity in this new uncorrelated asset class. Retail investors will also be able to participate in the first-of-their-kind trading vehicles, which the company expects to capture the interest of sophisticated traders looking for more traditional financial trading instruments
Leigh Taylforth, FutureSports Co-Founder, said: “The global sporting industry generates $650 billion a year, yet there has been no liquid, robust opportunity to hedge the extensive and varied industry risks that range from weather events, to injuries, to unanticipated behavior issues and more. That is about to change. We’ve been truly gratified to see the interest our business has generated within the sports and sports-adjacent industries and the quality of investors we have attracted already.”
Rhett Dinsdale, FutureSports Co-Founder, said: “Up until today, we have been operating in stealth mode while developing our products and establishing key relationships that we expect to be fundamental to our success as we move forward. The recent rise in popularity of prediction markets has only reinforced the concept we created several years ago, that sports as an asset class has huge utility within the sports and entertainment industries, with indexes serving as key institutional instruments to manage risk. What is sorely needed is the type of reliable data and financial instruments that institutional investors have leveraged for so long within the regulated derivatives industry, and we’re excited to bring these to market.”
The Executive team includes Co-Founders Taylforth and Dinsdale, who each have more than 20 years of experience in derivatives trading for market makers, investment banks and hedge funds, along with:
Dave Abbott, Chief Technology Officer – formerly Managing Director at Sportradar;Steve Byrd, Head of Partnerships – formerly Chief Operating Officer (COO) at STATS LLC & Chief Commercial Officer at Sportradar US;Jodie Gunzberg, Head of Index Services – formerly Managing Director at S&P Dow Jones Indices, Morgan Stanley & CoinDesk;Tom Jenkins, Head of Business Development – formerly Head of Index Partnerships & Strategy at FTSE Russell;Josh Kravitt, Head of Operations – formerly Director at CME Ventures;Sunny Modi, Head of Product – formerly Head of BI at Ardent Leisure Group;Mike Philipp, Chief Legal & Strategy Officer – formerly partner at Morgan, Lewis & Bockius LLP;Charlie Thornton, Chief Regulatory Affairs Officer – formerly Chief of Staff and COO at the U.S. Commodity Futures Trading Commission (CFTC).
About FutureSports
Under development since 2022 and launched in 2026, Chicago-based FutureSports has created a proprietary index methodology for measuring on-field, on-ice and on-court performance for a range of professional sporting teams and athletes. Partnering with many of the most recognizable sports leagues and financial market participants, FutureSports transforms live, play-by-play statistical data into rules-based, benchmark indexes that may be referenced by exchange-listed financial products. The indexes are designed to serve the same benchmarking function as the leading equity, commodity and fixed income indexes utilized every day across major global exchanges to track performance and hedge risk in the financial markets. For more information, visit www.futuresports.com.
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SOURCE FutureSports
Technology
Capital Group Canada Launches Three Active Equity ETFs on TSX
Published
42 minutes agoon
July 23, 2026By
The ETF suite now includes five active equity ETFs and two active fixed income ETFs designed to sit at the core of investment portfolios
TORONTO, July 23, 2026 /CNW/ — Capital International Asset Management (Canada), Inc. (“Capital Group Canada”) has launched three new active exchange-traded funds (ETFs) that begin trading on the Toronto Stock Exchange (TSX) today. The three equity strategies are designed to give options for investors looking to diversify their portfolios with non-domestic exposures including U.S., international and developed market securities.
The new active ETFs are:
CAPU – Capital Group U.S. Equity Select ETF (Canada): Seeks long-term growth of capital and income through investments primarily in common stocks of U.S. issuers.CAPN – Capital Group International Developed Equity Select ETF (Canada): Seeks to provide prudent growth of capital through investments primarily in equity securities of issuers in developed markets outside North America. CAPQ – Capital Group Global Developed Equity Select ETF (Canada): Seeks to provide prudent growth of capital through investments primarily in equity securities of issuers in developed markets.
“As demand for ETFs continues to grow, our expanded lineup gives investors more ways to access Capital Group’s distinctive active investment approach, including our deep research capabilities and multiple portfolio manager system,” said Rick Headrick, president of Capital Group Canada. “As one of the world’s largest active investment managers with over 90 years of experience, we are able to share the benefits of our global scale and offer competitively priced active ETFs designed to sit at the core of an investor’s portfolio.”
“Clients tell us they are looking beyond borders for opportunities to build diversified portfolios,” said Angela Shim, head of product and development at Capital Group Canada. “The three equity strategies expand Capital Group Canada’s core offerings in U.S., international, and global equities, giving investors flexible solutions that can help them navigate global markets and stay focused on their long-term investment goals.”
The three ETFs closed their initial offering of units on July 22, 2026.
The additions expand Capital Group Canada’s ETF lineup to seven, building on a prior launch of two equity and two fixed income ETFs. Details of Capital Group Canada’s full suite of active ETFs can be found here.
About Capital Group
Capital International Asset Management (Canada), Inc. is part of Capital Group, a global investment management firm originating in Los Angeles, California. As Capital Group approaches its 100th anniversary in 2031, its long-term strategy remains firmly rooted in its mission to improve people’s lives through successful investing. With over 9,000 associates and 34 offices around the world, Capital Group manages US$3.6 trillion in assets for millions of wealth management and institutional clients around the world*.
*As of June 30, 2026.
For more information, visit: www.capitalgroup.com/ca/en
SOURCE Capital Group Canada
HydraForce, Elevāt, and Bosch Rexroth Announce Enhanced Remote OTA Update Capabilities for Off-Highway Equipment
FutureSports launches as new index provider transforming sports statistics into tradable financial instruments
Capital Group Canada Launches Three Active Equity ETFs on TSX
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