Rocket Companies—which recently saw a lawsuit against it by the Consumer Financial Protection Bureau be dropped—got more good news in its Q4 2024 earnings report, where it reported adjusted company revenue of $1.2 billion.
This is a slight decrease from adjusted revenue of $1.3 billion in Q3 2024, but as with that quarter, this Q4 adjusted revenue fell within the “high end of (Rocket’s) guidance range.” Rocket’s adjusted net income for Q4 2024 was $85 million, while GAAP revenue was $649 million.
For the whole year of 2024, Rocket Companies reports adjusted net revenue of $4.9 billion—30% higher year-over-year—and GAAP income was $636 million. Net income was $456 million.
During Q4, subsidiary Rocket Mortgage generated $23.6 billion in closed loan origination volume—up 61% year-over-year. For the whole of 2024, Rocket Mortgage generated $101.2 billion in closed loan origination, up 29% from 2023.
Rocket’s stock jumped after the report, up around 7% at press time.
On a conference call with investors yesterday, CEO Varun Krishna and Chief Financial Officer Brian Brown both championed Rocket’s investment into AI technology as a boon. Krishna called attention to Rocket’s AI-powered programs such as the Navigator workflow platform and the RocketLogic loan origination system as productivity boosters for Rocket workers and consumers.
Describing the impact of Rocket’s AI-powered chat assistant, Krishna said: “The assistant also connects buyers directly to bankers and agents, even taking mortgage applications and updating approval letters. It effectively (has) put a buy button on every home in America and (created) a site that is truly alive.”
Brown echoed that “AI is fundamentally transforming the experiences of our clients, team members and partners, and the results are real,” citing that Rocket’s early investment in AI has put them in a strong position against competitors.
During the investor Q&A section, when asked if AI investment should be framed in terms of bottom line productivity or top line growth, Krishna answered: “The beauty of AI is that (it) impacts both top line growth and bottom line efficiency. And for that reason, it is our most strategic imperative. At the end of the day, our view of AI is quite simple. There’s three things you have to do to win in an AI world, you’ve got to invest in data, you have to have the best technology, you have to be able to do that at scale.”
However, the call occasionally returned to the idea of “the human touch that defines our client experience,” as Brown put it. “Behind every number is a life changing moment, the excitement of a new homeowner, opening the door to their first home, or a family finding stability,” said Krishna.
Both Krishna and Brown referenced the shifting American homebuyer demographics—such as the increasing age of first-time homebuyers and more Hispanic and single-female homebuyers—as something the company is paying attention to when it comes to brand building and maintenance. The Rocket brand must be “inclusive, dynamic, and reflective of today’s ambitious and diverse America,” said Krishna.
Krishna and Brown both mentioned the Rocket Companies’ 2025 Super Bowl ad as its primary brand-building foray, but Brown made clear the company won’t be stopping there.
“You don’t do a Super Bowl commercial and then not continue your buy after that because you have to get your message across in a big way over multiple channels,” said Brown, adding a Super Bowl commercial is well-positioned to kick-off the home purchasing season.
“So when I think about our marketing spend and the brand side in general, it’s almost always front-loaded to the first half of the year. And when I think about what we spent this year, it’s really a couple of things. It’s doing the brand restage in the Super Bowl, which we don’t do every year,” he continued.
Highlighting the ongoing success of the Rocket brand, Krishna noted that Rocket bankers and operations teams served 54% more clients in Q4 2024 compared to the previous year. The earnings report also noted a 97% client retention rate for Rocket Mortgage. “There is a strong correlation between this metric and client lifetime value,” the company’s press release stated.
Asked about market and company expectations for 2025, Krishna pointed to slightly increased inflation and the still unknown impact of proposed tariffs as points for potential caution. However, his overall assessment was optimistic for the mortgage industry.
“You’re seeing more inventory; you’re seeing more home selling at or below list. You’re seeing new listings increase—the biggest in three years, so that’s really good. So you put all that together and when you look at the forecast, that leads you to believe that there’s going to be a higher market for the mortgage industry.”
For the full earnings call webcast, click here.
