Rocket Companies, Inc. (RKT): Business Model Canvas [Dec-2025 Updated]

You're looking to map out exactly how this major mortgage and real estate player is structured now, especially after integrating Redfin and the Mr. Cooper servicing assets. Honestly, the scale is what hits you first: they are managing a servicing portfolio north of $2.1 trillion in unpaid principal balance (UPB). But the real story isn't just the size; it's the pivot to a full ecosystem, blending high-volume digital mortgage origination with recurring servicing fees and now, direct real estate commissions. To be fair, Q3 2025 showed adjusted revenue of $1.78 billion against total expenses of $1.789 billion, showing the tight margin environment, so understanding their key activities and cost structure is defintely critical. Dive into the full canvas below to see how their partnerships and proprietary tech resources drive this complex, integrated model.

Rocket Companies, Inc. (RKT) - Canvas Business Model: Key Partnerships

You're looking at the structure of Rocket Companies, Inc. (RKT) as of late 2025, and the Key Partnerships block is now significantly more complex following two massive integrations. These relationships are crucial for feeding volume into the platform and stabilizing revenue streams, so let's look at the hard numbers we have for these alliances.

Redfin real estate agents and brokerage network

The acquisition of Redfin closed on July 1, 2025. This partnership is designed to capture clients at the very top of the homeownership funnel. Before the deal, Redfin brought in nearly 50 million monthly visitors and had a staff of over 2,200 real estate agents across 42 states. Rocket Companies projects over $60 million in run-rate revenue synergies by 2027 from cross-selling services like attaching Rocket mortgages to Redfin brokerage deals. The Redfin business now operates under a 'Redfin Powered by Rocket' identity.

Rocket Pro Partner Network (third-party mortgage professionals)

This network, formerly known as Rocket Pro TPO, is a core channel competing with wholesale lenders. While the exact 2025 volume contribution isn't broken out separately in the latest reports, the overall scale of the business it supports is clear. Rocket Companies' total mortgage closed loan origination volume for the third quarter of 2025 was $32,413 million. The company guides Q4 2025 adjusted revenue to a midpoint of $2.2 billion, which includes the performance of this partner channel.

Correspondent Partner channels (post-Mr. Cooper acquisition)

The acquisition of Mr. Cooper Group, Inc. closed on October 1, 2025. This move immediately folds Mr. Cooper's correspondent channel into the Rocket ecosystem. The combination is expected to make Rocket Companies the largest mortgage servicer in the US, with a combined portfolio nearing 10 million clients. As of June 30, 2025, the servicing portfolio (before the full Mr. Cooper impact) stood at $609 billion unpaid principal balance. The pro forma servicing portfolio is projected to be valued at $1.27 trillion in mortgage servicing rights (MSRs).

Marketing partnerships with large consumer-focused companies

Specific financial data or partner lists for marketing collaborations aren't detailed in the recent earnings releases. However, the overall scale of Rocket Mortgage's client interaction provides context. Rocket Mortgage introduced AI-powered tools in Q2 2025 that boosted client follow-ups by 20%, showing an internal focus on maximizing lead conversion from all sources, including marketing efforts.

Secondary market investors for loan sales

The relationship with secondary market investors is reflected in the gain on sale margin, which is the price Rocket Companies receives when selling originated loans. For the second quarter of 2025, the gain on sale margin was 2.80%. This margin remained healthy, coming in at 2.80% in the third quarter of 2025. The company held loans for sale as inventory, which fluctuates with origination volume.

Here's a quick look at the scale of the business these partnerships support as of late 2025:

Metric	Value (Q3 2025)	Source Context
Mortgage Closed Loan Origination Volume	$32,413 million	Total for the quarter
Net Rate Lock Volume	$35,829 million	Total for the quarter
Total Liquidity	$9.3 billion	As of September 30, 2025
Projected Q4 2025 Adjusted Revenue	$2.1 billion to $2.3 billion	Includes full consolidation of Redfin and Mr. Cooper

The integration of Redfin and Mr. Cooper means that a significant portion of Rocket Companies' future origination and servicing revenue is now tied directly to these internal and external partnerships. If onboarding for new Redfin-referred clients takes 14+ days, churn risk rises. The company's total liquidity of $9.3 billion as of September 30, 2025, provides a defintely strong buffer to manage these large-scale integrations.

Rocket Companies, Inc. (RKT) - Canvas Business Model: Key Activities

You're looking at the core engine of Rocket Companies, Inc. (RKT) as of late 2025, which is all about high-volume, tech-driven execution across the homeownership lifecycle. The key activities are where the real value creation happens, blending massive scale with proprietary technology.

Digital mortgage origination and underwriting at scale

This activity centers on moving loans through the system faster and cheaper than the competition, relying heavily on digital channels. The scale achieved in Q3 2025 demonstrates this capability, even in a tighter rate environment.

• Closed loan origination volume for Q3 2025: $32.413 billion.
• Net mortgage rate lock volume for Q3 2025: $35.8 billion.
• Gain on sale margin for Q3 2025: 2.80%.
• The company has the capacity to support $150 billion in origination volume without adding a single dollar of fixed costs.

Managing the massive loan servicing portfolio (over $2.1 trillion UPB)

Servicing is the long-term relationship anchor, providing recurring revenue and a built-in pipeline for future business through recapture. The stated goal for the servicing portfolio UPB is clearly massive, acting as a hedge.

Metric	Value as of September 30, 2025	Value as of June 30, 2025
Servicing Portfolio Unpaid Principal Balance (UPB)	$613 billion	$609 billion
Number of Loans Serviced	2.9 million loans	2.8 million loans
Annualized Recurring Servicing Fee Income	Approximately $1.7 billion	Approximately $1.6 billion

The company's servicing portfolio UPB is stated to be over $2.1 trillion, which serves as a natural hedge against interest rate volatility.

Developing and deploying AI/fintech platforms (e.g., Rocket Logic)

This is the core of the vertically integrated platform strategy, using technology to drive efficiency across all segments. You see the results of this in the operational metrics.

• Rocket Logic automates processing for nearly 70% of 1.5 million monthly documents.
• Rocket Logic reduces problem-resolution times by over 30% in 2025.
• The company released the AI-powered Pipeline Manager Agent in Q3 2025 to help loan officers prioritize leads.

Real estate brokerage and home search services (Redfin integration)

The integration, solidified by the acquisition of Redfin Corporation, aims to capture the client earlier in the journey. The Q3 2025 outlook incorporated a full quarter of consolidated financial results from Redfin.

Brand marketing and performance advertising campaigns

Maintaining top-of-mind awareness is crucial in a high-touch industry, which requires significant, sustained investment in brand presence.

• Rocket Companies reported Q3 2025 adjusted revenue of $1.78 billion.
• The company planned to septuple its investment in the "Own the Dream" campaign following its Super Bowl commercial.
• For the full year 2024, Rocket Companies reported $4.9 billion in total adjusted revenue.

For the upcoming quarter (Q4 2025), Rocket Companies expects adjusted revenue between $2.1 billion to $2.3 billion.

Finance: draft 13-week cash view by Friday.

Rocket Companies, Inc. (RKT) - Canvas Business Model: Key Resources

You're looking at the core assets that power Rocket Companies, Inc. as of late 2025, right after integrating two major players. These aren't just abstract concepts; they are concrete numbers and established market positions that drive the business.

Proprietary AI-powered technology platform and data

The technology stack, anchored by Rocket Logic, is a massive resource. It's designed to automate and speed up processes across the platform. For instance, new agentic AI tools deployed in the third quarter of 2025 significantly improved efficiency.

• New agentic AI tools lifted follow-ups by 9pts.
• These tools cut processing time by 80%.
• This enabled sub-15 min broker underwriting tasks in Q3 2025.
• The AI agent on Rocket.com helps clients secure loans 2.5 times faster than the industry average.

Largest mortgage servicing portfolio in the US

Following the October 1, 2025, closing of the Mr. Cooper acquisition, Rocket Companies now commands a massive servicing operation. This portfolio provides a steady stream of recurring fee income, which is vital in fluctuating rate environments. The Mr. Cooper takeover was valued at $9.4 billion when announced in March 2025.

Here's the scale of the servicing asset as of September 30, 2025, before full consolidation of Mr. Cooper:

Metric	Amount (Q3 2025 End)
Servicing Portfolio Unpaid Principal Balance (UPB)	$613 billion
Number of Loans Serviced	2.9 million loans
Annualized Recurring Servicing Fee Income	Approximately $1.7 billion

Strong, widely recognized Rocket brand equity

The brand equity is built on years of direct-to-consumer success and recent strategic moves, like the Super Bowl LIX advertising push focusing on homeownership. The recapture rate within the servicing book shows the strength of the long-term client relationship.

• Rocket Mortgage was the third-largest lender in the U.S. in the first half of 2024.
• The company boasts an 85% recapture rate within its servicing portfolio.

Highly liquid balance sheet: $9.3 billion total liquidity (Q3 2025)

Financial strength is a key resource, providing the capital to execute large acquisitions and weather market volatility. As of September 30, 2025, the total liquidity position was robust, even before the full pro forma effect of the Mr. Cooper close on October 1st, which pushed pro forma total liquidity to approximately $11 billion.

Here's the breakdown of the $9.3 billion total liquidity:

Liquidity Component	Amount (as of 9/30/2025)
Cash on Balance Sheet	$5.8 billion
Corporate Cash for Loan Originations	$0.4 billion
Undrawn Lines of Credit	$1.1 billion
Undrawn MSR Lines of Credit	$2.0 billion

Licensed mortgage bankers and real estate agents

The integration of Redfin, which closed at the start of Q3 2025, immediately added a significant, high-intent lead source to the ecosystem. This expands the reach of the company's licensed professionals. The Redfin integration saw its mortgage attach rate climb from 27% to approximately 40% in Q3 2025. Also, 13% of retail purchase closings came via Redfin in that quarter.

The scale of the integrated network includes:

• Redfin's robust lead funnel of nearly 50 million users.
• The company employed 14,200 people as of 2024.

Finance: draft 13-week cash view by Friday.

Rocket Companies, Inc. (RKT) - Canvas Business Model: Value Propositions

Speed and certainty in the home-buying/financing process

• Digital refinance from application to rate lock in under 30 minutes as of Q2 2025.
• AI agents reduced processing time by 80% in Q3 2025.
• AI tools lifted follow-ups by 9pts in Q3 2025.
• 25% reduction in loan closing times for purchase loans since August 2022.

Fully digital, end-to-end homeownership ecosystem

Rocket Companies, Inc. operates as a fintech platform including mortgage, real estate, title, and personal finance businesses.

• 98% of all home loans originated using technology as of 2015.
• Completed acquisition of Redfin Corporation in July 2025, enhancing the purchase funnel.
• Redfin Mortgage Attach Rate increased from 27% to nearly 40% by Q3 2025.
• 13% of direct-to-consumer purchase closings came via Redfin in Q3 2025.
• >500K Redfin users started pre-qual applications in September 2025.

Competitive rates and fees through efficient, tech-driven operations

Efficiency gains from technology allow for competitive positioning, as seen in margin performance and operational leverage.

Metric	Value	Period/Context
Adjusted EBITDA Margin	~20%	Q3 2025
Adjusted EBITDA Margin	13%	Q2 2025
Gain on Sale Margin	2.80%	Q3 2025
Gain on Sale Margin	2.89%	Q1 2025
Automation Efficiency Gain	$40 million	2024 in efficiency gains from mortgage qualification automation
Automation Efficiency Time Saved	Over 1 million hours	2024 in team member time saved from mortgage qualification automation
Origination Capacity without Fixed Cost Increase	$150 billion	Capacity supported by scalable tech platform

Diversified services: mortgage, real estate, title, and personal finance

The platform integrates multiple services, bolstered by recent acquisitions.

• Completed acquisition of Mr. Cooper Group in Q3 2025.
• Servicing portfolio unpaid principal balance was $609 billion as of June 30, 2025.
• Servicing portfolio unpaid principal balance was $593 billion as of December 31, 2024.
• Servicing portfolio loans serviced as of June 30, 2025: 2.8 million loans.
• Annualized recurring servicing fee income: approximately $1.6 billion as of Q2 2025.

Client retention and recapture for future transactions

High recapture rates leverage the servicing portfolio into future origination business.

• Recapture Rate in servicing portfolio: 85%.
• Net client retention rate of the servicing portfolio as of December 31, 2024: 97%.
• Servicing Portfolio combined clients nearing 10 million as of Q3 2025.
• RocketRentRewards program offers up to $5,000 toward closing costs.

Rocket Companies, Inc. (RKT) - Canvas Business Model: Customer Relationships

You're building out the relationship strategy for Rocket Companies, Inc. (RKT) as of late 2025, post-major acquisitions. The core idea here is balancing high-touch human advice with massive digital scale, especially now that they are the largest mortgage servicer in the US following the Mr. Cooper Group acquisition.

High-touch interaction via dedicated mortgage bankers

For clients in the Direct to Consumer segment, the relationship starts with the option to engage directly with the Company's mortgage bankers, complementing the digital path. This hybrid approach is key to capturing clients who prefer a dedicated advisor throughout the complex origination process. The marketing to these potential clients relies on brand campaigns and performance marketing channels to drive them into this service model. Honestly, this human element is what separates them from purely digital lenders, even as the platform scales.

Automated, personalized digital communication via AI tools

The push for efficiency is heavily reliant on artificial intelligence woven into the client journey. Rocket Mortgage deployed AI-powered tools during the second quarter of 2025 specifically to streamline banker-client interactions. This technology resulted in a measurable boost, increasing client follow-ups by 20% in that period. Furthermore, internal innovation, like the June 2025 hackathon, showcases the focus on integrating advanced tech, featuring work on AI models from Google, OpenAI, and Anthropic. This technology aims to make every digital touchpoint feel more relevant to you, the client.

You need to see the scale of the servicing relationship they are now managing:

Metric	Value as of September 30, 2025	Source Period
Servicing Portfolio Unpaid Principal Balance (UPB)	$613 billion	Q3 2025
Total Loans Serviced	2.9 million loans	Q3 2025
Annualized Recurring Servicing Fee Income	Approximately $1.7 billion	Q3 2025
Client Follow-up Improvement via AI Tools	20% increase	Q2 2025

Long-term engagement through loan servicing activities

The relationship extends well beyond closing the initial loan, which is critical for stable, recurring revenue. The servicing portfolio, now significantly larger post-acquisition, represents a long-term anchor to the client relationship. This portfolio generates an estimated $1.7 billion in annualized recurring servicing fee income. The focus on service quality in this area is validated externally; Rocket Mortgage achieved the #1 spot in client satisfaction for mortgage servicing by J.D. Power for the 11th time, based on feedback from nearly 16,000 homeowners. This high satisfaction is designed to foster client retention and recapture future transactions.

Self-service digital tools for loan management and financial wellness

The platform offers robust tools for clients to manage their financial lives independently. For instance, Rocket Mortgage clients now have the capability to complete their entire refinance journey fully digitally, seamlessly navigating every step. This commitment to a digital-first experience, which includes home search via Redfin and mortgage finance, is central to their strategy to create a seamless homeownership experience. The platform integrates mortgage, real estate, title, and personal finance services, giving you a single place to manage related financial needs.

Finance: draft 13-week cash view by Friday.

Rocket Companies, Inc. (RKT) - Canvas Business Model: Channels

You're looking at how Rocket Companies, Inc. gets its products-primarily mortgages, but also real estate and personal finance-into the hands of customers as of late 2025. The strategy is clearly about owning the entire homeownership journey, using digital scale and strategic acquisitions to drive volume through distinct pathways.

Direct-to-Consumer (DTC) segment: Rocket Mortgage online platform

The Direct to Consumer segment remains the powerhouse for Rocket Mortgage, allowing clients to interact digitally or with mortgage bankers. This channel relies heavily on brand campaigns and performance marketing to bring potential clients in. The digital-first approach is key here, as evidenced by the fact that Rocket Mortgage clients can now complete their refinance journey fully digitally, from credit pull to e-signing and closing. Rocket Mortgage has earned 22 J.D. Power awards across mortgage origination and servicing, building a reputation on service. Since 1985, the company has closed more than $1.8 trillion in home loans. The net client retention rate for Rocket Mortgage was 97% over the 12 months ended December 31, 2023, showing strong repeat business.

For the third quarter of 2025, the DTC segment drove significant volume:

• Sold loan volume reached $17,139 million.
• Adjusted revenue for the segment was $1,153 million.
• The segment delivered a contribution margin of $469 million.

To put this in context against the total mortgage operation for Q3 2025, the DTC segment accounted for the majority of the $32,413 million in closed loan origination volume.

Partner Network segment: Rocket Pro TPO and Correspondent channels

The Partner Network, which includes the Rocket Pro TPO (Third Party Originator) channel, serves mortgage brokers, community banks, and credit unions. This channel is crucial for market reach beyond the direct consumer funnel. While the DTC segment saw strong growth in Q3 2025, the Partner Network showed a different dynamic. Rocket Pro launched a DSCR (Debt Service Coverage Ratio) product in November 2025 in response to a market shift, showing responsiveness to broker needs. In Q1 2025, the Partner Network generated $9.2 billion in sold loan volume, a 15.3% increase year-over-year, though its contribution margin dropped to $57 million from $114 million the prior year, indicating margin pressure or increased investment.

Here's how the Partner Network stacked up in Q3 2025:

Metric	Q3 2025 Amount
Sold Loan Volume ($ Millions)	13,671
Adjusted Revenue ($ Millions)	168
Contribution Margin ($ Millions)	96

Integrated Redfin platform for real estate lead generation

The acquisition of Redfin, valued at $1.75 billion in equity value upon the March 2025 agreement, is a direct channel enhancement, integrating home search with financing. Redfin brings its platform, which connects nearly 50 million monthly visitors to Rocket's mortgage products. This integration is already showing tangible results in moving leads down the funnel. The Redfin mortgage attach rate increased significantly from 27% to nearly 40% in Q3 2025. Furthermore, over 500,000 Redfin users started applications in September 2025 alone. For the third quarter, 13% of Rocket Mortgage's direct-to-consumer purchase closings came via Redfin. Rocket Companies expects to achieve over $60 million in revenue synergies from pairing financing clients with Redfin real estate agents.

Rocket-branded apps (Rocket Money, Rocket Loans)

These apps serve as ecosystem extensions, driving engagement and potentially feeding leads back into the core mortgage business. Rocket Money, the financial wellness service, has saved its members a combined $490 million just in canceled subscriptions, and more than $1 billion overall since it was founded in 2015. Rocket Loans operates as the company's online-based personal loans business, broadening the financial services footprint. The overall servicing portfolio, which includes loans from these channels, was nearing 10 million clients as of the Q3 2025 earnings call, generating approximately $1.6 billion of recurring servicing fee income on an annualized basis based on Q2 2025 figures.

For context on the overall platform scale in Q3 2025:

• Total Liquidity: Approximately $9.3 billion as of September 30, 2025.
• Total Adjusted Revenue: $1,783 million.
• Total Net Rate Lock Volume: $35.8 billion.

Finance: draft Q4 2025 cash flow projection by Wednesday.

Rocket Companies, Inc. (RKT) - Canvas Business Model: Customer Segments

You're looking at the core groups Rocket Companies, Inc. serves as of late 2025, following major integrations. The focus is clearly on capturing and retaining clients across the entire homeownership lifecycle, moving beyond just originating a loan.

US Homebuyers seeking purchase mortgages and Existing homeowners seeking refinance or home equity loans represent the primary volume drivers through the Rocket Mortgage platform. Q3 2025 was noted as the strongest purchase and refinance quarter in the last three years for Rocket Companies. The company is actively shifting focus to purchase volume, having strategically increased its purchase market share by 8% in 2024. Furthermore, the home equity segment is a key growth area, with Rocket Companies securing the position as the largest originator of closed-end second mortgages nationwide in 2024 after more than doubling that volume.

The Tech-savvy consumers preferring a digital-first experience are the bedrock of the Direct to Consumer segment. This group expects speed and efficiency, which Rocket Companies is enhancing with AI. In Q3 2025, three specific AI agents drove a 9-point jump in follow-ups and a ~10% lift in conversions. This technological edge supports their goal of handling more volume with fewer resources; for instance, in a prior quarter, they handled 43% more net rate lock volume with 7% fewer production team members year-over-year.

Real estate clients using the Redfin brokerage platform became a more integrated segment following the acquisition of Redfin in July 2025. This integration immediately offers preferred pricing to borrowers working with Redfin agents, aiming to expand market share through the platform's traffic. The Q3 2025 financial results explicitly included the expense base from Redfin, showing the immediate operational integration.

The segment of Financial wellness users for budgeting and personal loans is largely serviced through the massive servicing portfolio and the broader fintech offerings. The servicing portfolio acts as a critical, recurring revenue base and a source of repeat business. As of June 30, 2025, the servicing portfolio stood at 2.8 million loans with an unpaid principal balance of $609 billion. This base is the engine behind the company's impressive 85% recapture rate for repeat origination business. Following the Mr. Cooper acquisition, the combined servicing portfolio is expected to near 10 million clients.

Here's a look at the key activity metrics defining these customer segments as of the third quarter of 2025:

Customer Activity Metric	Value (Q3 2025)	Context
Closed Loan Origination Volume	$32.4 billion	Year-over-year increase of 14%
Net Mortgage Rate Lock Volume	$35.8 billion	Year-over-year increase of 20%
Servicing Portfolio Size (UPB)	Approaching $1.7 billion (Annualized Fee Income)	As of Q3 2025, up from $1.6 billion annualized fee income in Q2 2025
Partner Network (TPO) Sold Volume	Not explicitly stated for Q3 2025	Q1 2025 volume was $9.2 billion
AI Conversion Lift	~10%	Driven by new AI agents in Q3 2025

The customer base is segmented operationally into the Direct to Consumer channel and the Partner Network channel. The Partner Network, which includes the broker channel, is a source of purchase volume.

• US Homebuyers: Strongest purchase quarter in over three years (Q3 2025).
• Existing Homeowners: Home equity loan volume more than doubled in 2024.
• Tech-Savvy Users: AI tools increased conversion lift by ~10% in Q3 2025.
• Real Estate Clients: Redfin integration completed July 2025.
• Financial Wellness Users: Servicing portfolio recapture rate is 85%.

Finance: draft 13-week cash view by Friday.

Rocket Companies, Inc. (RKT) - Canvas Business Model: Cost Structure

The Cost Structure for Rocket Companies, Inc. reflects the significant operational scale following major acquisitions and the ongoing investment in its technology platform. The third quarter of 2025 saw total expenses land at $1.789 billion.

The cost base is heavily influenced by the integration of recent transactions, which adds both fixed and variable components. For context, the Q3 2025 figure represented an increase of $450 million from the second quarter, driven by the inclusion of Redfin's expense base, higher variable costs tied to increased production volume, and approximately $90 million in one-time costs during Q3.

The forward-looking expense guidance for the fourth quarter of 2025 illustrates the immediate impact of these integrations, with total consolidated expenses projected around $2.300 billion. This projection includes specific non-operational charges:

• Projected one-time transaction-related costs embedded in Q4 guidance: $140 million.
• Projected new amortization of intangible assets from acquisitions: $120 million.

Excluding these items, the underlying operating expenses for the fourth quarter are expected to be roughly $2 billion.

Loan Origination and Servicing Costs

A major component of the cost structure involves financing activities, particularly interest expense related to debt and servicing assets. The expense guidance for Q4 2025 specifically includes an estimated interest expense of $215 million, tied to unsecured debt and Mortgage Servicing Rights (MSR) facilities.

Cost Component Context	Q3 2025 Actual / Q4 2025 Projection	Notes
Total Expenses (Q3 2025)	$1.789 billion	Reported for the third quarter ended September 30, 2025.
Underlying Expenses (Q4 2025 Projection)	Roughly $2 billion	Excluding one-time costs and amortization.
Projected Interest Expense (Q4 2025)	$215 million	Related to unsecured debt and MSR facilities.
Acquisition/Restructuring One-Time Costs (Q3 2025)	Roughly $90 million	Factor contributing to the Q3 expense increase.

Personnel Costs and Operational Efficiency

While specific dollar amounts for personnel costs-covering mortgage bankers, engineers, and support staff-are not explicitly itemized in the top-line expense figures provided, the cost management strategy heavily relies on technology deployment to offset headcount needs and increase output per employee. The integration with Mr. Cooper is expected to yield significant cost reductions.

• Projected total expense synergies from Mr. Cooper integration: Approximately $400 million annually.
• AI agentic tools reduced purchase agreement review time by 80%.
• AI automation saved over 150,000 team hours annually.

Technology Development and Maintenance (AI Platforms)

Investment in technology is a key driver of efficiency, directly impacting personnel and origination costs. The deployment of AI platforms is a core strategy to manage the cost structure while scaling operations, as evidenced by the efficiency gains noted above. The company is building a vertically integrated homeownership platform for the AI era.

Marketing and Brand Advertising Expenses

Marketing costs are implicitly tied to driving volume, which saw net rate lock volume reach $36 billion in Q3 2025, up 26% quarter-over-quarter. The integration with Redfin is a key driver of lower client acquisition costs, as the Redfin mortgage attach rate increased from 27% to nearly 40%.

Rocket Companies, Inc. (RKT) - Canvas Business Model: Revenue Streams

You're looking at how Rocket Companies, Inc. converts its platform activity into dollars, which is key to understanding its valuation, especially when the mortgage origination market is choppy. The business model is clearly shifting toward a more integrated, platform-based revenue mix, which is a smart move when interest rates dictate loan volume swings.

The primary engine for immediate cash flow remains the origination and sale of mortgages, but the recurring and ancillary services are becoming increasingly important for stability. As of late 2025, the company reported a strong quarter, showing momentum from its recent strategic integrations.

Gain on sale of mortgage loans is the immediate profit taken when a loan originated on the platform is sold into the secondary market. For the third quarter of 2025, the Gain-on-Sale margin was 2.80%. This margin is critical because it shows the profitability of the core lending activity independent of volume fluctuations.

The push for recurring revenue is evident in the Recurring mortgage servicing fee income from the MSR portfolio. Following the acquisition of Mr. Cooper, the servicing portfolio unpaid principal balance (UPB) stood at $613 billion, encompassing approximately 2.9 million loans as of September 30, 2025. This portfolio is expected to generate approximately $1.7 billion of recurring servicing fee income on an annualized basis.

The integration with Redfin is directly impacting the Real estate commissions and title/settlement service fees (Rocket Close) stream. The mortgage attach rate for Redfin clients climbed from 27% to nearly 40% in Q3 2025, indicating a growing volume flowing through the ancillary services like title and closing, which fall under the Amrock umbrella.

The personal finance segment, Rocket Loans, contributes through Interest income from retained loans and personal loans. For Q3 2025, the reported Net Interest Income (NII), which captures this, was $35.68 million, significantly beating analyst estimates.

The overall performance for the period is best summarized by the top-line adjusted figure. Q3 2025 adjusted revenue was $1.78 billion, with the more precise reported figure being $1.783 billion, which exceeded the high end of guidance.

Here's a breakdown of the key components contributing to the overall revenue picture for Q3 2025, using the most granular data available:

Revenue Stream Component	Q3 2025 Financial Metric	Amount
Adjusted Revenue (Total)	Total Adjusted Revenue	$1,783 million
Gain on Sale of Loans, Net	Net Gain on Sale (in thousands)	$1,027,413 thousand
Mortgage Servicing Fee Income	Quarterly Servicing Fee Income (in thousands)	$413,138 thousand
Mortgage Servicing Fee Income	Annualized Recurring Servicing Fee Income	Approximately $1.7 billion
Interest Income (Net)	Net Interest Income (Rocket Loans/Retained Loans)	$35.68 million
Other Income (Proxy for Real Estate/Title Fees)	Total Other Income (in thousands)	$608,654 thousand

You can see the platform effect when you look at the segment contributions, showing where the activity is translating into profit contribution:

• Direct to Consumer (DTC) Adjusted Revenue (Q3 2025): $1,153 million.
• Direct to Consumer (DTC) Contribution Margin (Q3 2025): $469 million.
• Partner Network Adjusted Revenue (Q3 2025): $168 million.
• Partner Network Contribution Margin (Q3 2025): $96 million.

Finance: draft 13-week cash view by Friday.