Rocket Companies, Inc.RKT
Rocket Companies, Inc. Segments Disclosure
Segments
The Company’s Chief Executive Officer, who has been identified as its CODM, has evaluated how the Company views and measures its performance. ASC 280, Segment Reporting establishes the standards for reporting information about segments in financial statements. In applying the criteria set forth in that guidance, the Company has determined that it has two reportable segments - Direct to Consumer and Partner Network. The key factors used to identify these reportable segments are the Company’s internal operations and the nature of its marketing channels, which drive client acquisition into the mortgage platform. This determination reflects how its CODM monitors performance, allocates capital and makes strategic and operational decisions. Since the respective acquisition dates, the operations acquired from Mr. Cooper and Redfin have been managed within our existing reportable segment structure.
Direct to Consumer
In the Direct to Consumer segment, clients have the ability to interact with Rocket Mortgage digitally and/or with the Company’s mortgage bankers. The Company markets to potential clients in this segment through various brand campaigns and performance marketing channels. The Direct to Consumer segment generates revenue from originating, closing, selling and servicing predominantly agency-conforming loans, which are pooled and sold to the secondary market. This segment also produces revenue by providing title and settlement services and appraisal management to these clients as part of our end-to-end mortgage origination experience. Servicing and subservicing activities are fully allocated to the Direct to Consumer segment as they are viewed as an extension of the client experience, which positions us to have high retention and recapture the clients’ next refinance, purchase and personal loan transactions.
Revenues in the Direct to Consumer segment are generated primarily from the gain on sale of loans, which includes loan origination fees, revenues associated with title, closing and appraisal fees and revenues from sales of loans into the secondary market, as well as the Fair value of originated MSRs and hedging gains and losses. Loan servicing income consists of the contractual fees earned for servicing and subservicing loans and other ancillary servicing fees, as well as changes in the fair value of MSRs due to changes in valuation assumptions and realization of cash flows.
Partner Network
We provide industry-leading client service and leverage our widely recognized brand to strengthen our wholesale relationships, through Rocket Pro, as well as enterprise partnerships, and correspondent relationships, both driving growth in our Partner Network segment. Rocket Pro works exclusively with mortgage brokers, community banks and credit unions, enabling them to maintain their own brand and client relationships while leveraging Rocket Mortgage's expertise, technology and award-winning process. Our enterprise partnerships include financial institutions and well-known consumer-focused companies that value our award-winning client experience and offer their clients mortgage solutions through our trusted brand. These organizations connect their clients directly to us through marketing channels and referrals. In our Correspondent channel, we acquire mortgage loans from third-party mortgage originators and financial institutions, leveraging Rocket’s underwriting, fulfillment and secondary market capabilities.
Revenues in the Partner Network segment are generated primarily from the gain on sale of loans, which includes loan origination fees, revenues associated with title, closing and appraisal fees and revenues from sales of loans into the secondary market, as well as the Fair value of originated MSRs and hedging gains and losses.
Other Information About Our Segments
The Company measures the performance of the segments primarily on a Contribution margin basis. The CODM uses the total revenue and profitability metrics of each segment to assess performance and allocation of resources by segment. The accounting policies applied by our segments are described in Note 1, Business, Basis of Presentation and Significant Accounting Policies. Directly attributable expenses include Salaries, commissions and team member benefits, General and administrative expenses, Marketing and advertising expenses Interest and amortization on non-funding debt and Other expenses, such as mortgage servicing related expenses and expenses generated from Rocket Close (title and settlement services).
The Company does not allocate assets to its reportable segments as they are not included in the review performed by the CODM for purposes of assessing segment performance and allocating resources. The Consolidated Balance Sheets is managed on a consolidated basis and is not used in the context of segment reporting.
The Company also reports an “All Other” category that includes operations from Rocket Money, Rocket Loans as well as certain Redfin and Mr. Cooper operations, and includes professional service fee revenues from related parties. These operations are neither significant individually nor in aggregate and therefore do not constitute a reportable segment.
Key operating data for our business segments for the years ended:
Year Ended December 31, 2025 | Direct to Consumer | Partner Network | Segments Total | All Other (1) | Total | |||||||||||||||||||||||||||
| Revenue | ||||||||||||||||||||||||||||||||
| Gain on sale of loans, net | $ | 3,130 | $ | 585 | $ | 3,715 | $ | 92 | $ | 3,807 | ||||||||||||||||||||||
| Interest income | 300 | 200 | 500 | 1 | 501 | |||||||||||||||||||||||||||
| Interest expense on funding facilities | (231) | (144) | (375) | (1) | (376) | |||||||||||||||||||||||||||
| Servicing fee income | 2,309 | — | 2,309 | 8 | 2,317 | |||||||||||||||||||||||||||
| Changes in fair value of MSRs | (1,530) | — | (1,530) | — | (1,530) | |||||||||||||||||||||||||||
| Other income | 813 | 27 | 840 | 1,136 | 1,976 | |||||||||||||||||||||||||||
| Total revenue, net | 4,791 | 668 | 5,459 | 1,236 | 6,695 | |||||||||||||||||||||||||||
| Expenses | ||||||||||||||||||||||||||||||||
| Salaries, commissions and team member benefits | 1,329 | 234 | 1,563 | 402 | 1,965 | |||||||||||||||||||||||||||
| General and administrative expenses | 427 | 27 | 454 | 72 | 526 | |||||||||||||||||||||||||||
| Marketing and advertising expenses | 790 | 10 | 800 | 288 | 1,088 | |||||||||||||||||||||||||||
| Interest and amortization on non-funding debt | 65 | — | 65 | — | 65 | |||||||||||||||||||||||||||
| Other expenses | 251 | 11 | 262 | 48 | 310 | |||||||||||||||||||||||||||
| Less: Directly attributable expenses | 2,862 | 282 | 3,144 | 810 | 3,954 | |||||||||||||||||||||||||||
| Change in fair value of MSRs due to valuation assumptions (net of hedges) | 164 | — | 164 | — | 164 | |||||||||||||||||||||||||||
| Contribution margin | $ | 2,093 | $ | 386 | $ | 2,479 | $ | 426 | $ | 2,905 | ||||||||||||||||||||||
Year Ended December 31, 2024 | Direct to Consumer | Partner Network | Segments Total | All Other (1) | Total | |||||||||||||||||||||||||||
| Revenue | ||||||||||||||||||||||||||||||||
| Gain on sale of loans, net | $ | 2,363 | $ | 605 | $ | 2,968 | $ | 45 | $ | 3,013 | ||||||||||||||||||||||
| Interest income | 224 | 189 | 413 | — | 413 | |||||||||||||||||||||||||||
| Interest expense on funding facilities | (171) | (144) | (315) | — | (315) | |||||||||||||||||||||||||||
| Servicing fee income | 1,456 | — | 1,456 | 6 | 1,462 | |||||||||||||||||||||||||||
| Changes in fair value of MSRs | (579) | — | (579) | — | (579) | |||||||||||||||||||||||||||
| Other income | 599 | 20 | 619 | 488 | 1,107 | |||||||||||||||||||||||||||
| Total revenue, net | 3,892 | 670 | 4,562 | 539 | 5,101 | |||||||||||||||||||||||||||
| Expenses | ||||||||||||||||||||||||||||||||
| Salaries, commissions and team member benefits | 1,065 | 197 | 1,262 | 178 | 1,440 | |||||||||||||||||||||||||||
| General and administrative expenses | 279 | 25 | 304 | 61 | 365 | |||||||||||||||||||||||||||
| Marketing and advertising expenses | 653 | 9 | 662 | 162 | 824 | |||||||||||||||||||||||||||
| Other expenses | 146 | 9 | 155 | 5 | 160 | |||||||||||||||||||||||||||
| Less: Directly attributable expenses | 2,143 | 240 | 2,383 | 406 | 2,789 | |||||||||||||||||||||||||||
| Change in fair value of MSRs due to valuation assumptions (net of hedges) | (199) | — | (199) | — | (199) | |||||||||||||||||||||||||||
| Contribution margin | $ | 1,550 | $ | 430 | $ | 1,980 | $ | 133 | $ | 2,113 | ||||||||||||||||||||||
Year Ended December 31, 2023 | Direct to Consumer | Partner Network | Segments Total | All Other (1) | Total | |||||||||||||||||||||||||||
| Revenue | ||||||||||||||||||||||||||||||||
| Gain on sale of loans, net | $ | 1,660 | $ | 371 | $ | 2,031 | $ | 35 | $ | 2,066 | ||||||||||||||||||||||
| Interest income | 182 | 145 | 327 | — | 327 | |||||||||||||||||||||||||||
| Interest expense on funding facilities | (114) | (92) | (206) | — | (206) | |||||||||||||||||||||||||||
| Servicing fee income | 1,397 | — | 1,397 | 5 | 1,402 | |||||||||||||||||||||||||||
| Changes in fair value of MSRs | (701) | — | (701) | — | (701) | |||||||||||||||||||||||||||
| Other income | 565 | 15 | 580 | 331 | 911 | |||||||||||||||||||||||||||
| Total revenue, net | 2,989 | 439 | 3,428 | 371 | 3,799 | |||||||||||||||||||||||||||
| Expenses | ||||||||||||||||||||||||||||||||
| Salaries, commissions and team member benefits | 1,014 | 201 | 1,215 | 179 | 1,394 | |||||||||||||||||||||||||||
| General and administrative expenses | 189 | 21 | 210 | 17 | 227 | |||||||||||||||||||||||||||
| Marketing and advertising expenses | 602 | 10 | 612 | 125 | 737 | |||||||||||||||||||||||||||
| Other expenses | 119 | 8 | 127 | 6 | 133 | |||||||||||||||||||||||||||
| Less: Directly attributable expenses | 1,924 | 240 | 2,164 | 327 | 2,491 | |||||||||||||||||||||||||||
| Change in fair value of MSRs due to valuation assumptions, (net of hedges) | (29) | — | (29) | — | (29) | |||||||||||||||||||||||||||
| Contribution margin | $ | 1,036 | $ | 199 | $ | 1,235 | $ | 44 | $ | 1,279 | ||||||||||||||||||||||
(1) All Other includes certain intercompany eliminations, as a portion of expense generated through intercompany transactions is allocated to our segments.
The following table represents a reconciliation of segment Contribution margin to consolidated U.S. GAAP (Loss) income before income taxes for the years ended:
| Year Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Contribution margin | $ | 2,905 | $ | 2,113 | $ | 1,279 | |||||||||||
| Change in fair value of MSRs due to valuation assumptions (net of hedges) | (164) | 199 | 29 | ||||||||||||||
Less expenses not allocated to segments: | |||||||||||||||||
| Salaries, commissions and team member benefits | 1,342 | 821 | 863 | ||||||||||||||
| General and administrative expenses | 913 | 528 | 576 | ||||||||||||||
| Depreciation and amortization | 290 | 113 | 110 | ||||||||||||||
| Interest and amortization expense on non-funding debt | 373 | 154 | 153 | ||||||||||||||
| Other expenses | 37 | 28 | 9 | ||||||||||||||
| (Loss) income before income taxes | $ | (214) | $ | 668 | $ | (403) | |||||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 2, 2026 | Showing above |
| 2024 | Mar 3, 2025 | |
| 2023 | Feb 27, 2024 | |
| 2022 | Mar 1, 2023 | |
| 2021 | Mar 1, 2022 | |
| 2020 | Mar 24, 2021 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.