Rocket Companies had a better first quarter than many analysts feared, losing less than expected.
Total adjusted revenue was $882 million, besting the $792.9 million consensus. This is up from $481 million in Q4 2022 but down from $1.93 billion for the quarter ended March 31, 2022.
At the same time, the company lost $111 million in adjusted net income, on the heels of a $197 million loss in Q2 2022.
Rocket’s GAAP net loss in Q1 was $411 million, down from $493 million last quarter.
“Rocket delivered solid results in the first quarter in the backdrop of an uncertain macro environment. Adjusted revenue exceeded the top end of our guidance, driven by healthy client demand and strong execution,” Jay Farner, CEO of Rocket Companies, said in a statement.
“Our purchase pipeline has been growing in the second quarter, but constrained housing inventory and affordability still present challenges.”
Rocket originated about $17 billion in mortgages in Q1, a 10.5% decline from $19 billion in Q4 2022 and an incredible 67% drop YOY.
Direct-to-consumer it made $8.8 billion, while its TPO channel made $6.6 billion.
Rockets stock increased by 1.2% after the report came out Thursday afternoon.
The lender is doubling down on new products and policies meant to attract business. It has recently introduced first-time homebuyer credits, a rewards program that allows consumers to get points toward various transactions across Rocket’s platforms, and an “Inflation Buster” promotion where homebuyers pay one percentage point less on their rate for the first year.
The data comes in the midst of a major leadership change-up at the company. Long-time Rocket CEO Jay Farner is retiring on June 1.