Rocket Companies, Inc.

would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question, again, press star one. Thank you. I'd now like to turn the call over to Sharon Ng, Head of Investor Relations. You may begin.

Good afternoon, everyone, and thank you for joining us for Rocket Company's earnings call covering the third quarter 2025. With us this afternoon are Rocket Company CEO Varun Krishna and our CFO Brian Brown. Earlier today, we issued our third quarter earnings release, which is available on our website at rocketcompanies.com under investor info. Also available on our website is an investor presentation. Before I turn things over to Varun, let me quickly go over our disclaimers. On today's call, we provide you with information regarding our third quarter performance as well as our financial outlook. This conference call includes forward-looking statements. These statements are subject to risks and uncertainties that could cause actual results to differ materially from the expectations and assumptions we mentioned today. We encourage you to consider the risk factors contained in our SEC filings for a detailed discussion of these risks and uncertainties. We undertake no obligation to update these statements as a result of new information or further events, except as required by law. This call is being broadcast online and is accessible on our investor relations website. A recording of the call will be posted later today. Our commentary today will also include non-GAAP financial measures. Reconciliations between GAAP and non-GAAP metrics for reported results can be found in our earnings release issued earlier today, as well as in our filings with the SEC. And with that, I'll turn things over to Varun Krishna to get us started. Varun?

Good afternoon, everyone, and thank you for joining our third quarter 2025 earnings call. Today, I'll walk through four key areas Third quarter results, continuing progress on AI, integration with Redfin and Mr. Cooper, and finally, the new Rocket we're building for the future. The third quarter was a defining moment for Rocket, and I am so proud of our team. We gained market share, we beat our adjusted revenue guidance, and we brought three public companies together. This performance reflects our ability to balance short and long-term execution. You know a company and a team are special when they don't take their eye off the ball while still dreaming big. Only the best can deliver today while shaping tomorrow, and this team proves it every single day. Let's start with our Q3 execution in the context of the market. We operate in a complex housing environment. Affordability is slowly improving as rates ease. In the third quarter, the 30-year fixed rate dropped by 40 basis points to 6.3%, giving those buying and refinancing some much-needed rate relief. Home price growth also continued to moderate, slowing to 3.1% year-over-year in Q3, down from 5.5% in January. These trends signal a purchase market that's beginning to thaw, but that recovery still has a ways to go. Existing home sales continue to hover around 4 million units, putting 2025 on track to be the slowest year for existing home sales since 1995. Despite this, people want to buy homes. That pent-up demand is very real. Buyers are watching the market closely. They're waiting for clear signals and increased affordability before making their move. The true measure of a company is its ability to grow in a challenging market. Rocket's Q3 results demonstrate exactly that. We delivered $1,783,000,000 in adjusted revenue, exceeding the high end of our guidance. We generated $36 billion in net rate lock volume, up 26% over the second quarter, and $32 billion in closed loan volume, up 11% over the second quarter. We gained market share in both purchase and refinance, and in fact, Q3 was our strongest purchase and refinance quarter in the last three years. Gain on sale margin remained stable sequentially. Adjusted EBITDA reached $349 million, expanding margins to 20% from 13% the prior quarter. Adjusted diluted EPS came in at 7 cents. Our guidance beat was driven by a surge in refinance activity as rates moved lower and our execution that drove our market share gains. Rocket's platform enables our team to shift into overdrive and capture market opportunities on a dime. We consistently gain market share when these opportunities arise. We also closed the Mr. Cooper transaction on October 1st and will consolidate their financials in the fourth quarter. Let me now turn to AI. The reason that we are so obsessed with this technology is because it helps us with every single aspect of our business. It helps us grow the top of the funnel. It helps us lift conversion rates. It helps us reduce production costs, and it helps us increase recapture. The agentic era of AI has been particularly impactful. This quarter, we launched three AI agents that have changed the game. First, our pipeline manager agent, ranks banker leads in real time, highlights who to call next, and drafts custom texts based on past conversations to drive responses. Managing our massive and complex sales pipeline is critical. That's exactly what this agent helps our loan officers do, using our own data and market knowledge to surface the right leads and engage them instantly. During the September refinance wave, this agent drove a nine-point jump in client follow-ups and a 10% lift in conversions for both daily credit pulls and refinance applications, directly increasing locked loan volume. Second, we deployed a purchase agreement review agent. Previously, reviewing a single purchase agreement required more than 80 manual steps, ranging from extensive paperwork and data entry to countless validation and compliance checks. This agent cuts processing time by 80% and achieves accuracy that exceeds the legacy review process. This translates into more than 150,000 team member hours saved annually. Third, our RocketPro broker underwriting agent gives our mortgage broker partners speed and certainty. It verifies documents, checks e-sign compliance, confirms eligibility, and creates task summaries. What took four hours now happens in less than 15 minutes. What gets me excited is that we build each of these enterprise grade agents in less than three weeks with some even going live the same day. This is thanks to proprietary technology. As we extend these tools across all our teams and partners, we expect the impact on capacity, conversion, and volume to keep accelerating. This quarter was also significant as we began integrating two public companies into the Rocket family. The true value of these acquisitions lies in combining distinct strengths to create something greater than the sum of its parts. In a nutshell, Redfin brings a low cost, high intent lead pipeline that enhances the top of our funnel, while Mr. Cooper adds an ongoing servicing revenue stream that expands our ability to drive recapture. Now, recapture means turning servicing clients into repeat borrowers, by proactively offering new loans when they're ready to refinance or purchase a new home. Combined, we now have relationships with approximately 60 million clients and prospects who are now part of the growing Rocket ecosystem. We've seen momentum accelerate four months into our integration with Redfin, giving home buyers on Redfin the ability to get pre-qualified with Rocket is fueling engagement. In September, over 500,000 Redfin users started applications for home financing. That's more than double the number we saw in July. The combined power of Redfin and Rocket is driving Redfin's mortgage attach rate, defined as the percentage of Redfin buy-side clients who use Rocket Mortgage for their home purchase, from 27% to nearly 40%. Homebuyers are seeing the benefits. Better matches with agents and loan officers. bundled pricing through Rocket Preferred and a stronger mortgage platform offering for more products and greater scale. And the results speak for themselves. In September, 13% of Rocket Mortgage retail purchase closings came from clients who used both Redfin and Rocket. We expect this to only increase. Now let's talk about Mr. Cooper. We are combining the industry's largest servicer and the top originator to create a massive recapture engine. Making this integration a success has been a top focus for our team. We closed the transaction on schedule and we were ready to hit the ground running from day one. On October 1st, we rolled out our co-branded identity, Mr. Cooper powered by Rocket Mortgage, and set the pace for everything that followed. Our servicing and origination platforms connected seamlessly. Data and documents move smoothly between systems. No disruption, no hiccups for clients. On day nine, 40,000 leads for Mr. Cooper's servicing book flowed directly into the rocket pipeline. By day 12, we closed our first Mr. Cooper client start to finish in just three days. And just this week, 400 Mr. Cooper loan officers are fully onboarded into Rocket Mortgage, leveraging our technology and tools to raise the bar for service. With a combined servicing portfolio nearing 10 million clients, we're now running the largest, most powerful recapture engine in the industry, fully integrated and delivering right here at Rocket. The recipe for success is simple. When you get the people right, strategy and solid execution follow. With a combined team across Rocket, Mr. Cooper, and Redfin, we've got the best team in the business, bar none. This team represents experience, capability, and the best track record on the planet. If there's one thing I hope you take away from today, it is simply this, that Rocket is in a category of one. Historically, our industry has operated in silos. Companies have typically been either originators, servicers, or real estate companies, each focused on a narrow slice of the client experience. Rocket breaks that mold. We are not just one part of the process. We are all of them. We are a homeownership company bringing end-to-end integration to housing at a scale the industry has never seen. Our platform is vertically integrated by design, powered by AI, and it represents the future of home buying. This platform also reflects a new type of business model. Traditionally, each of these business models, originator, servicer, real estate, has its own strengths and limitations. Servicers tend to excel in higher rate environments with predictable recurring cash flows that attract value investors. But growing and replenishing mortgage servicing rights often requires significant capital. Origination companies shine when rates are low, capturing market growth but they can struggle with volatility, high client acquisition, and capacity costs. Real estate companies excel at attracting millions of consumers to the top of the funnel, but they often fall short on monetizing that traffic effectively, lacking a comprehensive monetization engine. So by bringing together Rocket, Mr. Cooper, and Redfin, we've created something unique. One company solving the industry's most complex challenges in three transformative ways. First, we've built a business model that thrives in any interest rate environment. When rates rise, our servicing portfolio, the largest in the industry, delivers stable, recurring cash flow and increased value in our mortgage servicing rights. And when rates fall, portions of our portfolio become eligible for recapture, generating significant refinance and purchase opportunities. Meanwhile, our origination business continually replenishes and strengthens our servicing pipeline. second we've cracked the code on unit economics by transforming how we acquire clients and manage capacity through the combined lead funnel of redfin rocket and our servicing book we attract high intent clients at scale and we do it efficiently our ai power tools further amplify our impact unlocking team member capacity so our team members can serve more clients with greater efficiency driving higher client lifetime value and a better, faster experience. And finally, speaking of clients, what matters most is the consumer. Everything we build, every integration we pursue centers on delivering for our clients. When we execute on this vision, our brand comes to stand for speed, certainty, and low rates in fees. That is the new Rocket. We take care of every client, every time, which earns us lifetime value and the privilege of being their lender for life. We are setting a new standard for homeownership, and the journey is just beginning. And with that, I'll turn things over to Brian.