Rocket Companies, Inc.RKT
Rocket Companies, Inc. Earnings Per Share Disclosure
Earnings Per Share
Basic earnings per share of Class A common stock is computed by dividing Net income (loss) attributable to Rocket Companies by the weighted-average number of shares of Class A common stock outstanding during the period. Diluted earnings per share of Class A common stock is computed by dividing Net income (loss) attributable to Rocket Companies by the weighted-average number of shares of Class A common stock outstanding adjusted to give effect to potentially dilutive securities. There was no Class B common stock outstanding as of December 31, 2024, 2023 and 2022. See Note 17, Non-controlling Interest for a description of Paired Interests and their potential impact on Class A and Class B share ownership.
Diluted earnings per share reflects the dilutive effect of potential common shares from share-based awards and Class D common stock. The treasury stock method is used to calculate the dilutive effect of outstanding share-based awards, which assumes the proceeds upon vesting or exercise of awards would be used to purchase common stock at the average price for the period. The if-converted method is used to calculate the dilutive effect of converting Class D common stock to Class A common stock.
The following table sets forth the calculation of the basic and diluted earnings per share for the period:
| Years Ended December 31, | |||||||||||||||||
| 2024 | 2023 | 2022 | |||||||||||||||
| Net income (loss) | $ | 635,828 | $ | (390,080) | $ | 699,933 | |||||||||||
| Net (income) loss attributable to non-controlling interest | (606,458) | 374,566 | (653,512) | ||||||||||||||
| Net income (loss) attributable to Rocket Companies | 29,370 | (15,514) | 46,421 | ||||||||||||||
| Add: Reallocation of Net income attributable to vested, undelivered stock awards | — | — | 22 | ||||||||||||||
Net income (loss) attributable to common shareholders | $ | 29,370 | $ | (15,514) | $ | 46,443 | |||||||||||
| Numerator: | |||||||||||||||||
Net income (loss) attributable to Class A common shareholders - basic | $ | 29,370 | $ | (15,514) | $ | 46,443 | |||||||||||
Add: Reallocation of Net income (loss) attributable to dilutive impact of pro-forma conversion of Class D shares to Class A shares (1) | — | (283,042) | 503,007 | ||||||||||||||
Add: Reallocation of Net income (loss) attributable to dilutive impact of share-based compensation awards (2) | — | (457) | 545 | ||||||||||||||
Net income (loss) attributable to Class A common shareholders - diluted | $ | 29,370 | $ | (299,013) | $ | 549,995 | |||||||||||
| Denominator: | |||||||||||||||||
| Weighted average shares of Class A common stock outstanding - basic | 141,037,083 | 128,641,762 | 120,577,548 | ||||||||||||||
| Add: Dilutive impact of conversion of Class D shares to Class A shares | — | 1,848,879,483 | 1,848,879,483 | ||||||||||||||
Add: Dilutive impact of share-based compensation awards (3) | — | 3,002,445 | 2,163,542 | ||||||||||||||
| Weighted average shares of Class A common stock outstanding - diluted | 141,037,083 | 1,980,523,690 | 1,971,620,573 | ||||||||||||||
Earnings (loss) per share of Class A common stock outstanding - basic | $ | 0.21 | $ | (0.12) | $ | 0.39 | |||||||||||
Earnings (loss) per share of Class A common stock outstanding - diluted | $ | 0.21 | $ | (0.15) | $ | 0.28 | |||||||||||
(1) Net income (loss) calculated using the estimated annual effective tax rate of Rocket Companies, Inc.
(2) Reallocation of Net income (loss) attributable to dilutive impact of share-based compensation awards for the years ended December 31, 2024, 2023 and 2022 comprised of zero, $(441) and $491 related to RSUs and zero, $(16) and $54 related to TMSPP, respectively.
(3) Dilutive impact of share-based compensation awards for the years ended December 31, 2024, 2023 and 2022 comprised of zero, 2,895,229 and 1,948,608 related to RSUs and zero, 107,216 and 214,934 related to TMSPP, respectively.
A portion of the Company RSUs, stock options, PSUs and shares issuable under the TMSPP were excluded from the computation of diluted earnings per share as the weighted portion for the period they were outstanding was determined to have an anti-dilutive effect.
RSUs excluded from the computation for the years ended December 31, 2024, 2023 and 2022 were 21,892,391, 8,892,219, and 19,165,177 respectively. Stock options excluded from the computation for the years ended December 31, 2024, 2023 and 2022 were 14,552,254, 16,876,100 and 21,654,750, respectively. PSUs excluded from the computation for the years ended December 31, 2024, 2023 and 2022 were 770,448, zero and zero, respectively. Shares issuable under the TMSPP excluded from the computation for the years ended December 31, 2024, 2023 and 2022 were 77,057, zero and zero.
For the years ended December 31, 2024, 2023 and 2022, 1,848,879,483 Holdings Units were outstanding, together with a corresponding number of shares of our Class D common stock, which were exchangeable, at our option, for shares of our Class A common stock. After evaluating the potential dilutive effect under the if-converted method, the outstanding Holdings Units for the assumed exchange of non-controlling interests were determined to be anti-dilutive and thus were excluded from the computation of diluted earnings per share for the year ended December 31, 2024. The Holding Units were determined to be dilutive for the year ended December 31, 2023 and 2022 and therefore were included in the earnings per share calculation.
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Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2024 | Mar 3, 2025 | Showing above |
| 2020 | Mar 24, 2021 | |
About Earnings Per Share Disclosures
The earnings per share disclosure breaks down the calculation from net income to both basic and diluted EPS, revealing the full impact of a company's capital structure on per-share economics. The reconciliation between basic and diluted share counts exposes how many stock options, RSUs, convertible securities, and warrants are potentially dilutive to existing shareholders.
Key signals: a widening gap between basic and diluted shares indicates growing dilution from equity compensation or convertible instruments. Anti-dilutive securities excluded from the diluted calculation deserve attention — they represent latent dilution that will materialize if the stock price rises. Watch for the effect of share buybacks on per-share metrics: EPS growth driven primarily by repurchases rather than income growth signals weakening fundamentals. Compare year-over-year changes in the diluted share count against equity compensation expense to assess whether management is effectively managing dilution.