We recently published 10 Firms Facing a Rough March So Far. Rocket Companies Inc. was one of the worst performers on Monday.
Rocket Companies dropped its share prices by 7.70 percent on Monday to finish at $16.79 apiece, as investors priced in a disappointing earnings performance in both the fourth quarter and full-year periods of 2025.
In an updated report last week, Rocket Companies Inc. said that it swung to a net loss of $234 million last year from a $636 million net income in 2024, despite a 31 percent jump in revenues to $6.695 billion from $5.101 billion.
In the fourth quarter alone, net income fell by 89 percent to $68 million from $649 million in the same period a year earlier, while total revenues increased by 52 percent to $2.692 billion from $1.769 billion.
For the first quarter of the year, Rocket Companies Inc. is targeting to generate $2.6 billion to $2.8 billion in revenues, or an implied growth of 151 percent to 170 percent from $1.037 billion in the same quarter last year.
Starting this first quarter, Rocket Companies Inc. would also reclassify as a direct expense its warehouse interest on loans held for sale from a contra-revenue account.
“This change will increase both our reported revenue and expenses and does not impact our net income or cash flow. The guidance range includes $150 million from this reclassification,” it said.
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