Rocket Companies (RKT) Stock Plunges 7.7% Amid Earnings Disappointment

Rocket Companies reported a stark reversal in profitability despite robust revenue growth, sending its shares tumbling. Full-year revenue climbed 31% to $6.7 billion, but the mortgage lender swung to a $234 million net loss from a $636 million profit in 2024. The fourth quarter proved particularly challenging, with net income collapsing 89% even as revenue surged 52%.

Market reaction was swift and severe. RKT shares closed down 7.7% at $16.79 as investors digested the earnings miss. Higher operating expenses and acquisition costs eroded margins, with diluted EPS falling to $(0.05) from $0.21 year-over-year. The company's attempt to highlight $1.28 billion in adjusted EBITDA failed to stem the selloff.

Forward guidance included an accounting adjustment that will artificially boost Q1 2026 revenue by $150 million. This technical reclassification of warehouse interest costs raises questions about the quality of future earnings reports.