High mortgage rates continue to impact earnings
Rocket Companies saw adjusted revenue fall to $885 million in 2023’s fourth quarter, down from about $1 billion in Q3 as it also recorded a full-year net loss.
The company, whose businesses include Rocket Mortgage, Rocket Homes, Rocket Loans and Rocket Money, revealed financial results Thursday that showed adjusted Q4 revenue was up on a year-over-year basis, although full-year adjusted revenue dipped from just over $4.6 billion in 2022 to $3.77 billion last year.
The company’s adjusted net loss for the year was $143 million, or $0.07 per diluted share, with Q4 producing an adjusted net loss of $6 billion or $0.00 per diluted share.
Rocket Mortgage closed $17 billion in mortgage origination volume throughout Q4, contributing strongly to a $78.7 billion full-year figure and an annual gain on sale margin of 2.63%.
On the purchase side, Rocket Mortgage’s market share jumped by 14%, with its refinance market share also climbing by 10% between 2022 and 2023.
Varun Krishna, Rocket Companies’ CEO and director, said the results arrived amidst “one of the most challenging years for mortgage originations in three decades.”
He emphasized the gains made in market share in 2023 and said the company was primed for a successful year ahead to advance its goal of “AI-fueled home ownership.”
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