📊 AI Stock Rating — Summary

Rocket Companies (RKT) reported a revenue of approximately $1.79 billion for the quarter ending September 30, 2025, with a net loss of $123.85 million, translating to an EPS of -$0.72. Despite the negative net margin, the company generated strong free cash flow of approximately $2.65 billion. Year-over-year performance exhibits mixed results, reflecting the broader industry downturn and changing market conditions. Revenue appears stable given the competitive pressures, although profitability remains a challenge. RKT maintains a sizable asset base of approximately $33.58 billion against liabilities of $24.72 billion, resulting in a total equity of $8.85 billion. The company holds a considerable net debt of $16.42 billion, highlighting leverage concerns. Despite these challenges, operating cash flow remains robust, supporting shareholder returns via dividends, which totaled $236.72 million over the period. Analysts set price targets ranging from $17 to $25, suggesting potential upside. Overall, while Rocket faces headwinds on profitability, its cash flow and strategic financial management provide some stability.

AI Score Breakdown

Revenue Growth — Score: 6/10

Revenue is stable at $1.79 billion, indicating resilience amidst sector challenges. Growth is modest and driven by consistent demand within its market niche, albeit at a slower pace compared to previous years.

Profitability — Score: 4/10

Operating margins are under pressure with an EPS of -$0.72, signaling inefficiencies and challenges in cost management. Prioritizing profitability improvements is crucial.

Cash Flow Quality — Score: 8/10

Strong free cash flow of $2.65 billion highlights robust operational cash generation. The absence of buybacks is offset by solid dividend payouts, reflecting liquidity strength.

Leverage & Balance Sheet — Score: 5/10

RKT's net debt of $16.42 billion against total equity of $8.85 billion indicates significant leverage. While the balance sheet is stable, high debt levels could limit financial flexibility.

Shareholder Returns — Score: 5/10

Dividends contribute to shareholder value, but the company has not engaged in buybacks. No substantial data on share price change was provided, thus it's assumed neutral.

Analyst Sentiment & Valuation — Score: 7/10

Analyst targets, reaching up to $25, suggest room for upside potential if operating efficiencies improve. Current evaluations are cautiously optimistic, showing balanced sentiment.

⚠ AI-generated — informational only, not financial advice.