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Date

Oct. 30, 2025 at 4:30 p.m. ET

Call participants

• Chief Executive Officer — Varun Krishna
• Chief Financial Officer — Brian Brown
• President — Bose George

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Takeaways

• Q4 revenue guidance – Management expects adjusted revenue, including acquisitions, to be in the “$2.1 billion” range.
• Expense outlook – Operating expenses projected to reach “$2 billion” in Q4, reflecting severance and deal-related costs.
• Servicing portfolio – Acquisition of Mr. Cooper expanded the servicing portfolio to “10 million clients.”
• Redfin pipeline contribution – “About 13% of our purchase pipeline today is from Redfin clients,” signifying early integration impact.
• Redfin application volume – The number of clients starting applications through Redfin’s “get prequalified” feature has doubled to “about half a million.”
• Acquisition integration – “We have had zero client disruption” post-integration, and full quarter realization of $35 million in Q3 synergies was reported.
• Market size expectation – Management cited an anticipated “they are expecting the market to grow 25% year over year.” market growth rate based on internal and external forecasts.
• AI and technology strategy – Management emphasized that proprietary technology is being deployed to automate servicing tasks, supported by a partnership with Sierra, an AI-first technology provider.
• Debt issuance – About $4 billion in additional debt was issued in June to address “change of provisions on COOP’s unsecured debt stack.”
• Lead flow driven by acquisitions – Integration of Redfin and Mr. Cooper has driven a significant increase in purchase lead flow and new revenue streams.

Summary

Management confirmed rapid contribution from the Redfin acquisition, with 13% of current purchase pipeline sourced from Redfin and application volume doubling within four months of integration. Significant expense and capital management events were disclosed, including an expected $2 billion in Q4 operating expenses related to recent acquisitions and $4 billion in new debt issuance to manage liabilities tied to Mr. Cooper. The servicing platform was expanded to 10 million clients, unlocking a scalable lead source for both purchase and refinance markets. AI-led efficiency initiatives have accelerated capacity and productivity throughout both origination and servicing, sustained by continued investment in proprietary technology and targeted partnerships. The leadership team stated confidence in achieving and potentially exceeding synergy and market share targets, independent of external rate tailwinds.

• Krishna said, “Our purchase pipeline is at record levels,” indicating accelerating momentum entering Q4.
• Brown emphasized that “We continue to be very disciplined,” citing integration progress and achievement of synergy targets following recent acquisitions.
• Management referred to industry forecasts that “rates potentially dipping below 6%,” presenting a possible catalyst for increased refinance activity.
• The team highlighted that 50 million monthly homebuyers, and thousands of local agents, enter the ecosystem through Redfin, strengthening the top of the funnel.

Industry glossary

• Servicing portfolio: The pool of mortgage loans for which Rocket Companies (RKT +3.52%) collects payments and manages customer relationships post-origination.
• Synergies: Operational cost savings or increased revenue achieved by integrating acquired companies such as Redfin and Mr. Cooper.
• Change of provisions (debt stack): Contractual requirements triggered by an acquisition, potentially mandating refinancing or repricing of outstanding debt.

Full Conference Call Transcript

Varun Krishna: By leveraging Red MAUs, and our servicing recap Rockets brand, numbers that we can allowing us to skip than the industry average. With our larger combined service portfolio, focused on recapture and low servicing costs, we are opt. We expect inclusive of these adjusted revenue these acquisitions, to range between $2.1 billion. Relay Highlighting We start with just a little bit of Q4 and then I will comment on the outlook for 2026 and then Brian is going to unpack just some seasonality taken into account. Our purchase pipeline is at record levels and so that gives us a lot of confidence in the quarter. Why that guide is not just strong, which is reflected in our guide.

And again, Brian will unpack that in just a minute on why and they are expecting the market to grow 25% year over year. There is also some forecast that has rates potentially dipping below 6%. And I think, as you know, that is a great thing for Rocket Companies, Inc. when you consider both the purchase and the refinance funnels that we have at scale. That is a standalone observation. And so what is particularly interesting is when you look at Rocket Companies, Inc. with Redfin, with Mr. Cooper, all of this becomes force multiplied. Because you have significantly improved lead flow, you also have these new revenue streams.

You know, you have this recapture pipeline between origination and servicing. We see our momentum just continuing to accelerate. So we feel very excited about 2026. But just coming back to Q4, Brian, maybe you can unpack the quarter in some more detail.

Brian Brown: Yes, sure. Happy to do it. Varun Krishna, thanks for the question. Good to hear from you. Let us actually start a little bit with Q3 and build on that. I think that will help understand the transition from Q3 to the outlook. But some of that traditional seasonality to come through, particularly the week around Thanksgiving and the two weeks around the Christmas holiday, consumers get distracted. When I look at some of the mortgage forecast pipeline that we have that we mentioned is at record highs. And Redfin is starting to contribute to that in a meaningful way.

About 13% of our purchase pipeline today is from Redfin clients, clients that were, you know, in the month of October for the beginning of the quarter started really nice from rates. Obviously, the Fed meeting did not necessarily help. Maybe take the mid. Hi. Thank you for taking my question. But also just in the Of the OpEx for Q4. Just give a general integration progress update as well. So I will start there. So look, we closed the deal October 1. And this deal is transformational, you know, not very similar were flowing through our pipeline from 940,000 leads the Mr. Cooper servicing book and that number only continues to increase Day 12.

We onboarded our loan officers and mortgage bankers. We have had zero client disruption. So with an acquisition of this scale, that is something that we are very proud of. And, look, there is obviously a lot of hard and fun work ahead, and we are taking it seriously. Right now, we are focused on the system integrations, the data integrations, the culture integrations. The progress that this far? And that is probably a good about $35 million of full quarter realization in Q3.

If I just kind of zoom back out excuse me, in Q3, here, but if I kind of zoom back out just to give you color on expenses, we said we expect Q4 to be about $2 billion. That is all severance and deal-related expenses. That compares to about both Redfin and Mr. Cooper. That was $50 million in Q3, which was just the amortization around Redfin. And the last thing just in terms of unique items. Remember in June, we issued about $4 billion of additional debt in that was in anticipation from, you know, triggering the change of provisions on COOP’s unsecured debt stack.

So for about four months, which was all of Q3, you had takeaways are on the expense side of the house. Look. We continue to be very disciplined. We are focused on realizing our synergy values and now even exceeding those.

Doug Harter: Our next question comes from the line of Doug Harter from UBS. Line is open.

Brian Brown: Thanks. I was hoping to talk a little bit more about the revenues progress at Redfin. You know, and whether that I guess, what the what first one of that four fast. And I am very, four months since closing. Pleased with the execution. We have got momentum, we are building fast. On Redfin. So that is millions of access points that represent every single home listing that is on Redfin. And because of that integration, because of the optimization, the number of clients that actually have started applications using that access point that get prequalified button has doubled.

So about half a million clients have started applications in but as you take that funnel down, it represents leads that we can. Right? Those are clients that we have long relationships with. Not just in days or weeks, but really over months because that is typically how the purchase pipeline works. And what is also important to call out is that Redfin is becoming a it is already contributing very big part of Rocket Companies, Inc.’s purchase pipeline. To 13% of our total retail purchase closing. And a company Rocket Companies, Inc.’s size and scale, that is obviously a very significant number and we expect that to meet expectations. And there are really driving that.

The first one is two things that are the strength of the integrated brand Redfin powered by Rocket and the time. We have only been doing this for four months, and we think about next year, we want to blow the doors off this. Right? We want to add the refinance funnel into our Redfin ecosystem. We want to take optimize the funnel we have a lot of room to do next year. So you know, in summary, we have made pretty solid progress in four months. But, you know, I really think that is a drop in the bucket compared to what is ahead in 2026.

Doug Harter: I guess, Arun, on that top of the funnel, the number of leads that are, kind of going through the prequal, you know, I guess, are you seeing or do you have any data as to you know, like, how those are moving through? Or some falling out and going to competitive typical to, I would say, a regular mortgage funnel where I mean, thing we know is happening today in the home buying world is that there is a lot of intent but the time to buy is.

Bose George: When we compare the historical periods. We are seeing the same thing as Redfin is. We are seeing the same thing in Rocket Companies, Inc. standalone, which is you have consumers coming in, they have high intent. By the time they are ready to get prequalified, that means they are either have started searching in a lot of cases or about to start searching for a home. Want to know how much they can afford, and they want to be serious about it. So we see him go take the exercise to get preapproved, and then they are in pipeline, and we start nurturing them. But we also know that in most cases, they are not getting the home.

The first home they find and the first offer they make at least in a lot of the. They find out how much they can afford. They begin their shopping experience, but that shopping and looking experience for a home is definitely in an extended period at compared to historical levels.

Doug Harter: Great. Thank you.

Bose George: Very consistent. Around our message around transforming our to make purchase something.

Brian Brown: Company a win and purchase. I think the first one is Redfin represents. You have to have a strong top of the funnel as we talked about earlier, and that is really what 50 million monthly homebuyers, thousands of local agents, and what is great about Redfin is just the quality of the traffic. Many of those consumers are higher intent, more serious homebuyers use the app every single day. Redfin has the highest weekly to monthly app engagement ratio. In that space. And so that represents not just the lead flow, but as Brian shared earlier, it is a pipeline of clients that you can nurture over days, weeks, and months, which is the nature of purchase.

Second building block and then is the actual funnel itself, and that is where artificial intelligence and automation are so significant to us because we can nurture leads in a low-cost manner. We can improve conversion. We can automate every single part of the experience to make it more efficient, more personalized, can have better underwriting, better pipeline management, and we could just make the whole experience faster and more accurate. And as a result, we can pass on that savings and value to the client in the form of lower rates, lower fees, and faster turn times.

And then the third building block which we are really excited about is the power of our servicing portfolio and that is something that is a big unlock for us. You know, with Mr. Cooper, when you have 10 million clients in your servicing portfolio, that is effectively a prebuilt pipeline of high intent buyers that trust Rocket Companies, Inc. And the best part of this is when you consider the macro environment, these are the types of clients that are most likely to participate in a purchase especially in today’s housing climate because they are either a move-up buyer or they are going through a life change, and so we expect a lot of that.

We have an advantage because we have a relationship with those clients. So pipeline and client base to be where these purchase transactions happen. These three building blocks are critical to our purchase. But they are also very unique to Rocket Companies, Inc. and Rocket Companies, Inc. only. And so when you put them together, we are pretty confident that it is a growth engine for purchase market share. And then coming back, not just for purchase, but also for refinance, because as rates inevitably change, we can harvest that same lead funnel to drive automated personalized refinance activity as well.

So we feel very confident we are on track to achieve our goals and these acquisitions and the client distribution they represent just give us more leverage points to achieve this. And I think the best part is that is agnostic of any potential market tailwinds and, like, potential rate relief. And so if you add those dynamics and those tailwinds it just boosts our confidence in achieving and exceeding our market share goals.

Bose George: To the numbers that you provided earlier?

Doug Harter: Okay. Great. And just to clarify, so the will the Cooper share be sort of incremental to the.

Bose George: Yeah. Thanks, Bose. We are going to come back out and the coming quarters and talk a little. Your next question comes from the line of Terry Ma from Barclays.

Terry Ma: There is you think about the overall business?

Brian Brown: Yeah. Thanks, Terry. I will take that one. So I think first of all, for the group, it is important to understand that result caps are not unusual in our industry, particularly when they from acquisitions, and they can change over time. Know, the regulators want to see a couple things. They are very focused on the integration and making sure you take care of the consumer. Then, of course, capital and liquidity levels are king, so they want to see that you maintain the appropriate capital and liquidity levels. And the agreements the GSEs and the counterparties or firms like us are confidential.

But what I can tell you that since the deal was announced in March, we and achieve and even exceed our synergy target our synergy target. So in summary, I just say it is not something we are worried about.

Terry Ma: Great. Thank you.

Brian Brown: Hear the updates on the three AI agent examples you gave and the benefits with those. I think each of those were origination related. I guess now that COOP is closed and the size of the servicing book, has meaningfully expanded, can you talk about technology and AI strategy more broadly, how that can play into the servicing side of the business as well to provide you know, productivity efficiency, cost savings, but origination benefits. Obviously, you have given a lot of updates on the hoping you could maybe speak to the servicing side as well. Thank you.

Bose George: Clients solve problems, but also handling simple tasks and automation. That drive day-to-day efficiency. So when you think about things like managing your payments, handling things like forbearance, property taxes, dealing with issues, escalations, those are all things that we have significant opportunities to automate personalize, and add value with AI. And of the things that I think is particularly exciting is that there is just a lot of technology evolution in this space. One of the things that we have recently done is we partnered with a company called Sierra. And Sierra is an AI-first company that build. I can give advice to clients to help them manage their future, one that is available 24/7.

And so the great thing about this is we think that the space is going through a pretty dramatic evolution. We are betting very big on technology here. And the thing that is important for us is that we care very deeply about owning and building our own technology. And so our servicing technology is proprietary. We have deep vertical integrations. They are built around data. And we are going to continue to evolve that with the expanded client base that we get with Mr. Cooper. And then when we partner, we are very selective with who we partner and we picked, you know, an example like Sierra because they are born of the kind of the AI world.

And so lots of opportunity here, I think, for us to really transform the way service works from the ground up. And this is a big area of focus for us.

Terry Ma: That is great.

Mark DeVries: Thank you so much. And your final question comes from the line of Mark DeVries from Deutsche Bank. Your line is open.

Brian Brown: Yes, thanks. Speaking about that AI theme, was hoping you could drill down.

Mark DeVries: On some of the benefits you got from the investments you made in responding to the big surge in demand you saw in September and on a go-forward basis, how you are thinking about you know, the real benefits you will drive, whether it is just faster turn times, higher efficiency, anything else.

Brian Brown: Yeah. Mark, I can start on that one. I think, know, particularly during that September window, like I said, it was a really nice case study because the thing I think people do not think about is you think about, hey. You have to have capacity to underwrite process and close loans. And there is no question that some of the AI initiatives have made a big impact to us there. But on the loan officer, the mortgage banker side, I would say equal, if not bigger, because when you have those rate surges, you get an influx of clients coming into the pipeline.

And so being able to interact with those clients through digital chat experiences where the relationship is not one to one like a client on the phone really increases your capacity. Also, leveraging AI to collect documents and follow-up items that traditionally loan officers and mortgage bankers would be doing in the time where they really should be understanding the client’s situation and you know, helping them understand how they can save money on a rate and term refinance, you know, could be a distraction from the actual revenue generation opportunities.

So I think when I look at traditional mortgage companies and they have inbound leads coming, the only way they can do them is pick up the phone and work longer hours. When I think about how Rocket Companies, Inc. can handle them with the digital experiences particularly on chat and interacting through our website and messenger, and then when we actually are making phone contact with a client on knowing that client is high intent, knowing that client in some cases, has already provided some information so we can let the loan office do what they do best.

Those are the things that not only increase the capacity of the business, but in a meaningful way also increases the efficiency of the business.

Mark DeVries: Got it.

Brian Brown: Thank you.

Varun Krishna: And that concludes our question and answer session. I will now turn the call back over to Varun Krishna for final closing remarks. Well, thank you, everyone, for listening.