RKTHIGH SIGNALFINANCIAL10-K

RKT completed a major acquisition (Mr. Cooper) that dramatically expanded the company's scale while swinging from profitability to significant losses.

The all-stock acquisition of Mr. Cooper effective October 1, 2025 transformed RKT's financial profile, nearly tripling assets to $60.7B and stockholders' equity to $22.9B. However, the integration challenges are evident as the company swung from $29.4M profit to a $68.0M loss despite doubling gross profit, indicating substantial integration costs or operational inefficiencies.

Comparing 2026-03-02 vs 2025-03-03View on EDGAR →
FINANCIAL ANALYSIS

RKT's financial statements reflect a transformational year driven by the Mr. Cooper acquisition, with total assets growing 148% to $60.7B and stockholders' equity increasing 153% to $22.9B, while cash position more than doubled to $2.7B. Despite gross profit surging 77% to $2.3B, the company swung from $29.4M net income to a $68.0M loss, while operating cash flow deteriorated further into negative territory at -$3.9B. The financial profile suggests successful scale expansion but with significant near-term profitability and cash flow challenges that investors should monitor closely as integration progresses.

FINANCIAL STATEMENT CHANGES
Net Income
P&L
-331.5%
$29.4M→-$68.0M

Net income declined 331.5% — review whether driven by operations, interest costs, or non-recurring items.

Stockholders Equity
Balance Sheet
+153.2%
$9.0B→$22.9B

Equity base grew 153.2% — retained earnings accumulation or equity issuance strengthening the balance sheet.

Total Assets
Balance Sheet
+147.6%
$24.5B→$60.7B

Asset base grew 147.6% — expansion through organic growth, acquisitions, or capital deployment.

Total Liabilities
Balance Sheet
+144.3%
$15.5B→$37.8B

Liabilities grew 144.3% — significant increase in debt or obligations, assess impact on financial flexibility.

Cash & Equivalents
Balance Sheet
+111.8%
$1.3B→$2.7B

Cash position surged 111.8% — strong cash generation or capital raise providing significant financial cushion.

Gross Profit
P&L
+77%
$1.3B→$2.3B

Gross profit expanding — improving pricing power or product mix shift toward higher-margin offerings.

Operating Cash Flow
Cash Flow
-49.4%
-$2.6B→-$3.9B

Operating cash flow fell 49.4% — earnings quality concerns; investigate working capital changes and non-cash items.

Capital Expenditure
Cash Flow
+34.8%
$67.5M→$91.0M

Capital expenditure jumped 34.8% — major investment cycle underway; assess returns on deployment.

LANGUAGE CHANGES
NEW — 2026-03-02
PRIOR — 2025-03-03
ADDED
As of February 23, 2026, 970,935,922 shares of the registrant's Class A common stock, $0.00001 par value, and 1,848,879,455 shares of the registrant's Class L common stock, $0.00001 par value, were outstanding.
Management's Discussion and Analysis of Financial Condition and Results of Operations 56 Item 7A.
Gilbert (or their transferees) which represented economic interests in Holdings LLC prior to the Up-C Collapse Holdings LP Units Rocket Limited Partnership, the successor entity to Holdings LLC following the Up-C Collapse Holdings Units Partnership units of Holdings LP, which, following the Up-C Collapse, are all directly or indirectly held by the Company HUD U.S.
Department of Housing and Urban Development IRLCs Interest rate lock commitments IRS Internal Revenue Service ISP Information Security Program LMI Low and moderate-income LPCs Loan Purchase Commitments MBS Mortgage-backed securities MEEM Multi-period Excess Earnings Method MERS Mortgage Electronic Registration Systems, Inc.
MLHFS Mortgage Loans Held for Sale MLS Multiple Listing Services 4 Mr.
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REMOVED
As of February 24, 2025, 147,306,839 shares of the registrant's Class A common stock, $0.00001 par value, and 1,848,879,483 shares of the registrant's Class D common stock, $0.00001 par value, were outstanding.
Management's Discussion and Analysis of Financial Condition and Results of Operations 49 Item 7A.
Business Overview We are a Detroit-based financial technology company with operations spanning mortgage, real estate, and personal finance.
Our proprietary technology platform is designed to deliver a seamless, AI-driven homeownership experience, integrating home search, mortgage origination, title and closing, and personal financial management.
Since our inception in 1985, we have demonstrated a consistent ability to develop and scale technology-driven solutions that enhance client experiences, automate operations, and extend our capabilities to partners.
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