Rocket Companies—which recently completed its acquisition of both Mr. Cooper and Redfin—exceeded its revenue guidance during the third quarter, as noted during a Halloween Eve earnings call.
The company reported Q3 adjusted revenue of $1.78 billion—beating the high end of its guidance range—generated $36 billion in net rate lock volume, up 26% over the previous quarter, and $32 billion in closed loan volume, up 11% quarter-over-quarter. Adjusted EBITDA reached $349 million.
Turning to AI, Rocket CEO Varun Krishna noted that technology helps the company with every single aspect of its business.
“It helps us grow the top of the funnel. It helps us lift conversion rates. It helps us reduce production costs, and it helps us increase recapture. The agentic era of AI has been particularly impactful,” he explained.
During the third quarter, Rocket launched three AI agents that have “changed the game.” Those include:
- Pipeline Manager Agent
- Purchase Agreement Review Agent
- Rocket Pro-Broker Underwriting Agent
“What gets me excited is that we built each of these enterprise-grade agents in less than three weeks, with some even going live the same day. This is thanks to proprietary technology,” Krishna noted. “As we extend these tools across all our teams and partners, we expect the impact on capacity, conversion and volume to keep accelerating.”
Moving to its recent acquisitions, Krishna explained that Redfin brings a “low-cost, high-intent lead pipeline that enhances the top of our funnel,” while Mr. Cooper adds an “ongoing servicing revenue stream that expands our ability to drive recapture.”
The integration of Redfin is exceeding expectations, said CFO Brian Brown.
“These early results reinforce our confidence in achieving $60 million in revenue synergies over the course of 2026, with full run-rate realization expected in 2027,” he said.
Brown added that 13% of the company’s mortgage purchase pipeline is coming from Redfin clients.
During the call, Krishna provided additional detail on Redfin’s performance just four months after closing. The company has added a prequalification experience to every listing on Redfin, creating millions of access points across the platform. As a result, the amount of clients starting mortgage applications doubled from 250,000 in July to 500,000 in September.
“This is the start of what we think is a very performance funnel,” Krishna explained, noting that these leads represent long-term client relationships that extend over months as buyers move through the purchase pipeline.
Also, the mortgage attach rate has climbed from 27% to 40% and is expected to continue its growth, added Krishna.
Attributing the success to two key factors: the strength of the integrated brand and a competitively priced bundle, Krishna noted that this not only delivers value to clients, but to agents as well.
There’s a lot in store for 2026.
“We want to add the refinance funnel into our Redfin ecosystem. We want to take more of the mortgage application process and bring it up into the Redfin app, so you can start and finish inside of the Redfin experience,” Krishna added. “That’s going to optimize the funnel, and we have a lot of room to grow there…In summary, we’ve made pretty solid progress in four months, but I really think that’s a drop in the bucket compared to what’s ahead in ’26.”
Looking ahead, the fourth quarter will be the first quarter with both Redfin and Mr. Cooper fully consolidated into the company’s operating results.
“We expect adjusted revenue, inclusive of these acquisitions, to range between $2.1 billion to $2.3 billion,” Brown said. “On a Rocket standalone basis, excluding Mr. Cooper and Redfin, we expect adjusted revenue at the midpoint of the range to be up roughly 7% year-over-year.”
Krishna said he believes 2026 will be a very strong year for Rocket.
“What gives us confidence, in particular, is when you look at, like, the Fannie Mae forecast; they’re expecting the market to grow 25% year-over-year, and there’s also some forecasts that have rates potentially dipping below 6%,” he explained. “We feel really excited about 2026. We feel momentum just continuing to accelerate.”
