Gilbert’s Rocket Companies is profitable again

Dan Gilbert’s Rocket Companies returned to profitability in the first quarter after a tough fall and winter.

The Detroit-based parent company of Rocket Mortgage on Thursday reported net income, or profit, of $291 million in the quarter on revenue of $1.38 billion, an improvement from the previous quarter’s net loss of $233 million on revenue of $694 million.

“Rocket has entered 2024 with strong momentum,” Varun Krishna, CEO of Rocket Companies, said in a statement. “I am incredibly proud of our team’s performance in (the first quarter), as we accelerated revenue growth for the third quarter in a row and achieved our highest profitability in two years. Once again, we increased both our purchasing and refinancing market shares through a combination of innovation, technology, process improvements and strong execution.”

Krishna has scheduled an earnings call with investors at 4:30 p.m

Rocket Companies is the publicly traded parent company of several Gilbert companies, the largest of which is Rocket Mortgage.

The mortgage industry has been struggling recently, with Rocket suffering its first full annual loss since going public in 2023, a net loss of $390 million on revenue of $3.8 billion.

Like other mortgage lenders, Rocket has seen a decline in sales since early 2022, when mortgage rates began rising from all-time lows, leading to fewer home purchases and less refinancing activity.

The Mortgage Bankers Association expects 2024 to be slightly better than last year for the mortgage industry overall, with mortgage production expected to hit $1.8 trillion, up from $1.6 trillion in 2023.

More: Dan Gilbert’s companies cut thousands more jobs

Contact JC Reindl: 313-378-5460 or [email protected]. Follow him on X @jcreindl.

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