Rocket Companies (NYSE: RKT), a leading fintech platform for mortgage, real estate, and personal finance services, saw its stock surge 6.55% in pre-market trading on Friday, February 28, 2025.

This significant upswing comes on the heels of the company's impressive fourth-quarter 2024 earnings report and an optimistic outlook for 2025, indicating continued momentum in its core businesses.

Earnings Highlights

Rocket Companies reported strong financial results for Q4 2024, with adjusted revenue reaching $1.2 billion, a 34% year-over-year increase, and adjusted earnings per share (EPS) of $0.04. For the full year 2024, the company achieved adjusted revenue growth of 30% to $4.9 billion, and adjusted EPS of $0.23.

The company's net rate lock volume, a key metric for mortgage origination, surged 47% year-over-year to $24 billion in Q4 2024, reflecting its growing market share in the purchase and home equity loan segments.

Growth Drivers

Rocket Companies' strong performance was driven by several factors, including innovative product offerings like ONE+ and Welcome Home Rate Break, which resonated with homebuyers in the challenging market. These affordability products saw their volume double compared to 2023.

Additionally, the company strengthened its relationships with wholesale partners, providing industry-leading products and advanced technology to drive growth in the purchase market. Rocket Companies' home equity loan product also experienced significant growth, with volume more than doubling year-over-year.

Outlook

For the first quarter of 2025, Rocket Companies expects adjusted revenue to range between $1.175 billion and $1.325 billion, representing a year-over-year increase of approximately 7% at the midpoint. The company plans to continue investing in marketing, servicing, and AI technology to drive long-term growth and market leadership.

Varun Krishna, CEO of Rocket Companies, expressed optimism about the year ahead, stating, "We're entering a defining moment in Rocket's journey. We're investing decisively in our future, pursuing ambitious goals, and accelerating execution, all while keeping our focus on creating sustainable long-term shareholder value."