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Rocket Companies Announces Fourth Quarter and Full Year 2023 Results

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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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TS Imagine Expands Integration with Trumid’s Fixed-Income Trading Platform

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Adds Access to Trumid RFQ Automation
and Trumid Full Self Trading (FST™)

NEW YORK, July 23, 2026 /PRNewswire/ — TS Imagine, a leading global cross-asset provider of trading, portfolio, risk management and prime brokerage solutions, announced an expanded workflow integration with Trumid, a financial technology company and leading fixed income electronic trading platform.

The enhanced integration provides TS Imagine clients with broader access to Trumid’s electronic trading ecosystem, including its list-based workflows—Trumid RFQ and Portfolio Trading (PT)—while expanding RFQ automation and cross-protocol capabilities. Clients can now access:

Trumid’s RFQ network, enabling automated workflows through RFQ Auto-Submit via Trumid AutoPilot™ for RFQ, along with API-driven executionHeadless RFQ responder, initiator, and voice inquiry workflows Trumid Full Self Trading (FST™), Trumid’s automated cross-protocol execution capability connecting liquidity and execution opportunities across Trumid RFQ and Swarms, with expansion to Trumid Attributed Trading (firm dealer streams) planned for H2 2026. 

TS Imagine first integrated with Trumid in 2020, including support for Trumid’s Fair Value Model Price (FVMP™) predictive pricing model for corporate bonds.

Alexis Sainte Marie, Fixed Income Product, TS Imagine, said:

“Our expanded relationship with Trumid is an important step for TS Imagine clients seeking greater access to liquidity and workflow automation. We’ve particularly seen significant growth in areas like portfolio trading and RFQ and will continue to work closely with the Trumid team to enhance trading opportunities for our customers.”

Jason Quinn, Chief Product Officer & Global Head of Sales at Trumid, said: 

“Our mutual clients continue to benefit from the integration with TS Imagine, particularly as adoption of Trumid’s list-based workflows continues to accelerate. As clients increasingly engage across multiple Trumid trading protocols, we see additional opportunities to expand our relationship and deliver even greater value for our mutual clients.”

Trumid’s list protocols continued to deliver strong growth during Q2 2026. Trumid RFQ Average Daily Volume (ADV) increased 122% year-over-year, while automated trade volumes executed through Trumid AutoPilot™ for RFQ more than doubled. Trumid PT volume rose approximately 40% year-over-year, with the protocol recording its highest quarterly ADV alongside all-time highs in buy-side participation and lists traded. 

About TS Imagine 

TS Imagine delivers a best-in-class SaaS platform for integrated electronic front-office trading, portfolio management, prime brokerage, and financial risk management. Our global team of technologists continuously develops software and deploys new technologies that empower financial institutions to outperform markets and manage risk in real time. Many of the world’s leading financial institutions trust TS Imagine’s platform to manage their risk exposure and make better trading decisions across derivatives, equities and fixed income, cutting complexity and driving efficiencies.

About Trumid

Trumid is a financial technology company and fixed income electronic trading platform focused on US dollar-denominated Investment Grade, High Yield, Distressed, and Emerging Market bonds. Trumid optimizes the credit trading experience by combining agile technology and market expertise, with a focus on product design. The result is a differentiated ecosystem of protocols and trading solutions delivered within one intuitive platform. Learn more at www.trumid.com.

MEDIA CONTACTS

Greentarget for TS Imagine
tsimagine@greentarget.co.uk

Trumid Press
+1 (212) 618-0300
press@trumid.com

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SOURCE Trumid

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Passage Preparation Wins 2026 CODiE Award for Best Professional Learning Platform

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CHARLOTTESVILLE, Va., July 23, 2026 /PRNewswire/ — Passage Preparation™, a division of K12 Coalition, has been named a 2026 CODiE Award Winner in the category Best Professional Learning Platform.

The CODiE Awards recognize the most innovative products, platforms and services across technology and education. Winners are selected through a rigorous evaluation process led by independent industry experts who assess each solution based on innovation, functionality, market impact, and overall value.

Selected from 228 finalists across 75 categories, the 2026 CODiE Award winners represent the solutions setting new standards for excellence and innovation.

“We are honored to receive this recognition from the CODiE Awards,” said Nathan Estel, Managing Director of Passage Preparation. “This award reflects our team’s commitment to helping aspiring educators build the knowledge, confidence, and instructional expertise they need to succeed on their licensure exams. We remain dedicated to strengthening the educator pipeline through innovative learning experiences that prepare great teachers for the classroom.”

As schools across the country face persistent teacher shortages, Passage Preparation is helping accelerate the path from aspiring educator to licensed classroom teacher. The platform provides comprehensive licensure exam preparation tailored to state certification requirements and subject areas, ensuring candidates focus on the content most relevant to their certification pathway. Developed by experienced teachers and teacher educators, every course is aligned with both licensure standards and evidence-based instructional practices, equipping candidates with the skills they need to succeed on certification exams and in the classroom.

Unlike traditional test-preparation programs that emphasize memorization and test-taking strategies, Passage Preparation builds lasting content knowledge and teaching proficiency through engaging, interactive learning experiences. Candidates benefit from diagnostic assessments that identify strengths and areas for improvement, detailed progress reporting, practice assessments, and personalized study plans. Flexible self-paced learning is complemented by live virtual cohorts that provide instructor guidance, peer collaboration, and accountability, creating a supportive professional learning community for busy educators.

Designed with accessibility and flexibility in mind, Passage Preparation includes tools such as Immersive Reader, offering real-time translation in more than 100 languages, text-to-speech functionality, customizable display settings, and other features that support diverse learning needs. The platform has consistently helped improve certification exam pass rates, enabling many candidates to earn licensure on their first attempt, saving valuable time and costs. By preparing more educators to enter the profession successfully, Passage Preparation helps districts fill critical teaching positions faster and strengthens the educator workforce nationwide.

“The 2026 CODiE Award winners represent some of the most innovative and impactful solutions in the industry,” said Jennifer Baranowski, President of the CODiE Awards. “These organizations are solving meaningful challenges, delivering measurable outcomes, and helping shape the future of technology.”

A complete list of 2026 CODiE Award winners is available at https://codieawards.com/winners.

About K12 Coalition 

K12 Coalition is a collective of specialized education products and services with a common mission to provide a great education for every student in every classroom every day. The company offers deep expertise in solving five macro K-12 education challenges: teacher certification, professional learning, literacy and math curriculum, accelerated student learning through summer school, and district support, including strategic planning and consulting. Learn more at k12coalition.com.

About Passage Preparation

Passage Preparation specializes in providing comprehensive licensure assessment preparation resources designed to bolster teacher confidence and proficiency. These learning resources equip licensure candidates with the knowledge necessary for success on exams and instill in them best teaching practices using methodologies thoughtfully curated to be engaging and aligned precisely with the content covered on the licensure exams. Passage Preparation is part of K12 Coalition, a certified B Corporation helping schools and teachers thrive nationwide.

Media Contact:
Alex Fairchild
K12Coalition@finnpartners.com 

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SOURCE K12 Coalition

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Knox Systems Partners with Microsoft to Accelerate Secure Government Access to Commercial Innovation on Microsoft Azure

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Strategic collaboration helps software companies bring cutting-edge commercial technology to the U.S. Government faster through Microsoft Azure Government Cloud

NEW YORK and WASHINGTON, July 23, 2026 /PRNewswire/ — Knox Systems (Knox), the largest, longest-running federal managed cloud, today announced a collaboration with Microsoft to help commercial software companies deploy secure, mission-ready solutions on Microsoft Azure Government Cloud for U.S. Government customers.

As demand for modern AI, cybersecurity, data, and enterprise software continues to grow across the public sector, the partnership is designed to reduce the barriers that have historically prevented government agencies from accessing the same technologies already transforming the commercial market.

Knox enables software providers to achieve production-ready federal cloud environments in as little as 90 days through its pre-authorized Federal Managed Cloud. By inheriting a substantial portion of required security controls, companies can reduce the time, effort, cost, and compliance burden associated with deploying compliant government cloud solutions. Combined with Microsoft Azure’s trusted government cloud platform, the collaboration provides an accelerated path for innovative software companies seeking to serve federal civilian and defense customers.

“America’s greatest technology companies shouldn’t spend years navigating compliance before they can help solve government missions,” said Irina Denisenko, CEO of Knox Systems. “Microsoft has built one of the world’s most trusted cloud platforms for government. Knox removes the operational barriers that can keep innovative software companies from deploying secure, compliant solutions on Azure Government. Together, we’re making it dramatically faster for agencies to access the technologies they need, securely, compliantly, and at mission speed.”

The collaboration strengthens Microsoft’s ecosystem for independent software vendors (ISVs) pursuing government opportunities while expanding the pathway for AI-native, cybersecurity, enterprise software, and critical infrastructure companies to bring production workloads to Azure.

“Microsoft is committed to helping software companies innovate for government while meeting the highest standards for security and compliance,” said Jamie Harper, VP, Defense Industrial Base, Microsoft. “Our collaboration with Knox provides organizations with an accelerated path to deploy innovative solutions on Microsoft Azure Government Cloud, helping government agencies gain faster access to the technologies that support critical missions.”

Knox currently operates one of the industry’s largest FedRAMP-authorized managed cloud environments, supporting more than 70 software companies and maintaining 16 US Federal and Department of War Authorizations to Operate (ATOs). Customers including Adobe, Armis, Celonis, BigID, and other leading software providers rely on Knox to bring commercial innovation to government faster while maintaining rigorous security standards.

As AI adoption accelerates across government, the partnership reflects a shared commitment to ensuring agencies can securely leverage the same cutting-edge technologies already powering the commercial economy.

About Knox Systems

Knox Systems operates the largest managed federal cloud, trusted by top agencies and partners across defense and civilian sectors. Built for speed, resilience, and compliance, Knox delivers FedRAMP authorization in 90 days – turning the biggest bottleneck in government IT into the fastest path to modernization. Knox proudly serves Adobe, Celonis, OutSystems, Armis, BigID, and more AI and SaaS providers, accelerating secure innovation across the federal landscape. Learn more at knoxsystems.com.

Media Contact:
knox@w2comm.com

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SOURCE Knox Systems, Inc

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