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Segments
 6 Months Ended
Jun. 30, 2024
Segment Reporting [Abstract]  
Segments Segments
The Company’s Chief Executive Officer, who has been identified as its Chief Operating Decision Maker (“CODM”), has evaluated how the Company views and measures its performance. ASC 280, Segment Reporting establishes the standards for reporting information about segments in financial statements. In applying the criteria set forth in that guidance, the Company has determined that it has two reportable segments - Direct to Consumer and Partner Network. The key factors used to identify these reportable segments are the Company’s internal operations and the nature of its marketing channels, which drive client acquisition into the mortgage platform. This determination reflects how the CODM monitors performance, allocates capital and makes strategic and operational decisions.

Direct to Consumer

In the Direct to Consumer segment, clients have the ability to interact with Rocket Mortgage online and/or with the Company’s mortgage bankers. The Company markets to potential clients in this segment through various brand campaigns and performance marketing channels. The Direct to Consumer segment derives revenue from originating, closing, selling and servicing predominantly agency-conforming loans, which are pooled and sold to the secondary market. The segment also includes title insurance, appraisals and settlement services complementing the Company’s end-to-end mortgage origination experience. Servicing activities are fully allocated to the Direct to Consumer segment and are viewed as an extension of the client experience. Servicing enables Rocket Mortgage to establish and maintain long term relationships with our clients, through multiple touchpoints at regular engagement intervals.

Revenues in the Direct to Consumer segment are generated primarily from the gain on sale of loans, which includes loan origination fees, revenues associated with title insurance, appraisals and settlement services, and revenues from sales of loans into the secondary market, as well as the fair value of originated MSRs and hedging gains and losses. Loan servicing income consists of the contractual fees earned for servicing loans and other ancillary servicing fees, as well as changes in the fair value of MSRs due to changes in valuation assumptions and realization of cash flows.
Partner Network

The Rocket Professional platform supports our Partner Network segment, where we leverage our superior client service and widely recognized brand to grow marketing and influencer relationships, and our mortgage broker partnerships through Rocket Pro TPO (“third party origination”). Our marketing partnerships consist of well-known consumer-focused companies that find value in our award-winning client experience and want to offer their clients mortgage solutions with our trusted, widely recognized brand. These organizations connect their clients directly to us through marketing channels and a referral process. Our influencer partnerships are typically with companies that employ licensed mortgage professionals that find value in our client experience, technology and efficient mortgage process, where mortgages may not be their primary offering. We also enable clients to start the mortgage process through the Rocket platform in the way that works best for them, including through a local mortgage broker.

Revenues in the Partner Network segment are generated primarily from the gain on sale of loans, which includes loan origination fees, revenues associated with title insurance, appraisals and settlement services, and revenues from sales of loans into the secondary market, as well as the fair value of originated MSRs and hedging gains and losses.

Other Information About Our Segments

The Company measures the performance of the segments primarily on a contribution margin basis. The accounting policies applied by our segments are described in Note 1, Business, Basis of Presentation and Accounting Policies. Directly attributable expenses include Salaries, commissions and team member benefits, General and administrative expenses and Other expenses, such as servicing costs and origination costs.

The Company does not allocate assets to its reportable segments as they are not included in the review performed by the CODM for purposes of assessing segment performance and allocating resources. The Condensed Consolidated Balance Sheets is managed on a consolidated basis and is not used in the context of segment reporting.

The Company also reports an “All Other” category that includes operations from Rocket Money, Rocket Loans, Rocket Homes and includes professional service fee revenues from related parties. These operations are neither significant individually nor in aggregate and therefore do not constitute a reportable segment.

Key operating data for our business segments for the periods ended:

Three Months Ended June 30, 2024Direct to
 Consumer		Partner
 Network		Segments
 Total		All OtherTotal
Revenues
Gain on sale$577,231 $169,020$746,251 $12,305 $758,556 
Interest income59,806 52,609112,415 — 112,415 
Interest expense on funding facilities(43,128)(37,948)(81,076)(217)(81,293)
Servicing fee income353,299 — 353,299 1,378 354,677 
Changes in fair value of MSRs(112,941)— (112,941)— (112,941)
Other income147,057 4,156151,213 118,095 269,308 
Total U.S. GAAP Revenue, net
981,324 187,837 1,169,161 131,561 1,300,722 
Change in fair value of MSRs due to valuation assumptions, net of hedges(72,566)—(72,566)— (72,566)
Adjusted revenue
908,758 187,837 1,096,595 131,561 1,228,156 
Less: Directly attributable expenses534,049 61,506 595,555 88,650 684,205 
Contribution margin
$374,709 $126,331 $501,040 $42,911 $543,951 
Six Months Ended June 30, 2024
Direct to
 Consumer		Partner
 Network		Segments
 Total		All OtherTotal
Revenues
Gain on sale$1,117,396 $318,527$1,435,923 $21,859 $1,457,782 
Interest income108,688 92,707201,395 — 201,395 
Interest expense on funding facilities(71,362)(61,052)(132,414)(322)(132,736)
Servicing fee income697,659 — 697,659 2,764 700,423 
Changes in fair value of MSRs(56,433)— (56,433)— (56,433)
Other income279,254 7,936287,190 226,817 514,007 
Total U.S. GAAP Revenue, net
2,075,202 358,118 2,433,320 251,118 2,684,438 
Change in fair value of MSRs due to valuation assumptions, net of hedges(293,037)—(293,037)— (293,037)
Adjusted revenue
1,782,165 358,118 2,140,283 251,118 2,391,401 
Less: Directly attributable expenses1,063,853 117,450 1,181,303 177,741 1,359,044 
Contribution margin
$718,312 $240,668 $958,980 $73,377 $1,032,357 

Three Months Ended June 30, 2023
Direct to
 Consumer		Partner
 Network		Segments
 Total		All OtherTotal
Revenues
Gain on sale$476,052 $108,580$584,632 $9,837 $594,469 
Interest income45,484 36,04381,527 (770)80,757 
Interest expense on funding facilities(33,084)(26,331)(59,415)(97)(59,512)
Servicing fee income342,328 — 342,328 1,263 343,591 
Changes in fair value of MSRs42,377 — 42,377 — 42,377 
Other income150,101 4,196154,297 80,248 234,545 
Total U.S. GAAP Revenue, net
1,023,258 122,488 1,145,746 90,481 1,236,227 
Change in fair value of MSRs due to valuation assumptions, net of hedges(234,556)—(234,556)— (234,556)
Adjusted revenue
788,702 122,488 911,190 90,481 1,001,671 
Less: Directly attributable expenses529,222 66,425 595,647 69,591 665,238 
Contribution margin
$259,480 $56,063 $315,543 $20,890 $336,433 
Six Months Ended June 30, 2023
Direct to
Consumer
Partner
Network
Segments
Total
All OtherTotal
Revenues
Gain on sale$866,394 $180,574$1,046,968 $17,064 $1,064,032 
Interest income83,606 63,715147,321 180 147,501 
Interest expense on funding facilities(53,392)(41,080)(94,472)(152)(94,624)
Servicing fee income707,545 — 707,545 2,431 709,976 
Changes in fair value of MSRs(355,902)— (355,902)— (355,902)
Other income272,673 7,814280,487 150,825 431,312 
Total U.S. GAAP Revenue, net
1,520,924 211,023 1,731,947 170,348 1,902,295 
Change in fair value of MSRs due to valuation assumptions, net of hedges(18,498)—(18,498)— (18,498)
Adjusted revenue
1,502,426 211,023 1,713,449 170,348 1,883,797 
Less: Directly attributable expenses1,034,805131,7841,166,589 146,433 1,313,022 
Contribution margin
$467,621 $79,239 $546,860 $23,915 $570,775 
The following table represents a reconciliation of segment contribution margin to consolidated U.S. GAAP Income (loss) before income taxes for the three and six months ended:
Three Months Ended June 30,Six Months Ended June 30,
2024202320242023
Contribution margin, excluding change in MSRs due to valuation assumptions$543,951 $336,433 $1,032,357 $570,775 
Change in fair value of MSRs due to valuation assumptions, net of hedges72,566 234,556 293,037 18,498 
Contribution margin, including change in MSRs due to valuation assumptions616,517 570,989 1,325,394 589,273 
Less expenses not allocated to segments:
Salaries, commissions and team member benefits209,271 222,645 397,599 443,527 
General and administrative expenses123,785 145,595 268,851 288,708 
Depreciation and amortization28,009 25,357 55,026 56,042 
Interest and amortization expense on non-funding debt38,364 38,333 76,729 76,667 
Other expenses25,046 689 36,777 1,946 
Income (loss) before income taxes$192,042 $138,370 $490,412 $(277,617)