CluenexRocket Companies RKT
Rocket Companies scores weak on business quality (3.8 of 10). Here is why, in plain words, and what our sealed record shows.
Why it matters
- What Rocket Companies does
Rocket Companies originates and services residential mortgages, making money primarily through loan origination fees and interest income paid by homebuyers and refinancers. Treasury yields topping 5.3% drive market attention as retail investors watch rate sensitivity across its volume-heavy pipeline.
- What it does best
Rocket dominates digital mortgage origination through a streamlined consumer app, capturing a revenue growth rate in the top decile of its sector at 91st percentile. This tech-driven scale creates high switching costs for borrowers who bypass traditional bank friction.
- The main risk
Surging treasury yields above 5.3% threaten volume demand, squeezing refinancing pipelines that drive its top-line expansion. If rates stay elevated, origination revenue drops sharply as borrowers pause activity.
Quality, check by check
Scored against its own industry, from company filings.
Operating margin stands at 22.9% alongside a -7.5% free cash flow margin, weighed down by high operating expenses. Profitability remains compressed as cash burn outpaces operating income growth.
The brand holds a weak moat with a 2.0 score, lacking deep customer lock-in as consumers easily shop rival lenders. Its return on equity languishes at 2.4%, showing low structural pricing power.
Revenue growth surges at 30.6%, accelerating past prior annual declines from $4.0B in 2023 up to $10.2B in latest metrics, pulling overall volume higher.
Total debt sits at $33.5B against $2.7B in cash, producing an interest coverage ratio of 1.8x where earnings barely cover borrowing costs. Free cash flow is negative at -$773M, getting softer as obligations mount.
Insiders
Executives and directors, from SEC Form 4 filings we read ourselves. Open market trades only; grants, option exercises and pre-planned sales left out.
No open market buys or unplanned sales by executives or directors.
Our sealed record on RKT
Verdicts appear here 30 days after we publish them; members see today's. Each one is in the nightly ledger, fingerprinted the night it was made.
The first sealed verdicts appear here on Oct 11, 2026.
Questions
Rocket Companies scores weak on the Cluenex quality check (3.8 of 10), measured against its own industry. Profitability is weak, moat weak, growth fast and financial health weak.
In the last 90 days of SEC Form 4 filings: No open market buys or unplanned sales by executives or directors.
Oct 29, 2026, after the close.
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Cite this page: Cluenex, “Rocket Companies (RKT)”, https://cluenex.com/stocks/rkt/, data as of Oct 10, 2026.