Rocket Companies, ahead of the completed acquisition of Mr. Cooper and the deal to purchase Redfin, continued to see high revenues and other success in its recent Q1 2025 earnings call.
The company reported a Q1 adjusted revenue of $1.3 billion, which executives said came in “at the high end of our guidance range.” This is up from the $1.2 billion seen last quarter and also at the same time last year. The company also reported an adjusted net income of $80 million, down from $85 million last quarter and from $84 million back in Q1 2024.
On the mortgage end of the business, Rocket reported $21.6 billion in closed loan origination volume, down from the $23.6 billion seen last quarter, but up 7% compared to the same period last year.
Rocket CEO Varun Krishna noted that “even more impressively, on a per production team member basis, we served nearly 50 more clients compared to March of 2023.”
On the minds of many investors and press on the call was Rocket’s recent business moves (aka the Mr. Cooper and Redfin deals). Krishna dove into these, stating that the acquisitions are about three things for the company: “Strengthening our business model, fueling our platform with data and ecosystem partners to power Rocket’s AI, and building an elevated client experience.”
Krishna continued that both deals will provide Rocket with “more than 30 petabytes of proprietary data, thousands of real estate agents, tens of thousands of brokers and loan officers and nearly half a million origination clients with over 800 financial institutions.”
“Redfin brings real estate search and brokerage. Rocket delivers origination scale. Mr. Cooper contributes servicing strength,” added Rocket CFO Brian Brown. “Together, they create an end-to-end platform built for efficiency, reach and client value.”
Brown said as well that the business deals provide Rocket with “a durable all weather business model,” something very topical amidst continued market challenges like high mortgage rates, drops in home sales and wavering economic conditions.
“They fuel our platform with data and AI, expand our ecosystem through key partnerships and enable us to deliver an elevated client experience,” he continued.
RISMedia recently reported with Redfin’s latest earnings report that Redfin investor Bruce Miller is suing the company and board in New York state court, alleging that the company misled investors by omitting financial details of both companies and the merged businesses.
According to court filings, Miller seeks to prevent the merger before the June 4 shareholder vote. If the deal gets the green light, Miller will seek rescission or will pursue compensation for damages. He alleges negligence and concealment, claiming that Redfin failed to “communicate accurate and truthful information” as it closed the deal.
This news was not addressed by Rocket executives in the earnings call.Â
Currently, the company said the Mr. Cooper deal is set to close in Q4, and the Redfin deal is set to close in Q2 or Q3.
As for the company’s earnings this quarter, Krishna pointed to Rocket’s continued championing of AI development as a strong proponent of this. “That’s also AI in action, plain and simple. It is supercharging our team members, it is unlocking capacity, and it is simply enabling us to serve more clients in better ways than ever before,” said Krishna.
A part of the company’s AI strategy that Krishna specifically noted was the recently introduced agentic AI tool within Rocket Logic, released back in March. This tool is designed to “determine the responsible party for paying the transfer tax fee—a historically complex and error-prone manual process.”
The company said in a release that since the tool’s implementation, “the solution has reduced estimated remediation costs related to transfer tax errors by 50%, with projected savings exceeding $1 million in 2025.”
Looking ahead at Q2, executives said they expect adjusted revenue between $1.175 billion to $1.325 billion.
