Dan Gilbert’s Rocket Companies on Thursday reported its first full-year loss since going public in 2020.
Rocket had a net loss of $390 million on $3.8 billion in revenue for all of 2023, compared with a profit of $700 million in 2022.
Most of that red ink appeared in the fourth quarter, when Rocket saw a $233 million net loss on $694 million in revenue.
Like other mortgage lenders, Rocket has experienced a slide in business since early 2022 when mortgage rates started climbing from what had been historic lows, leading to fewer home purchases and less refinancing activity.
Rocket executives have an investors’ call scheduled for late Thursday afternoon.
“I’m proud of our team members for consistent execution amid one of the most challenging years for mortgage originations in three decades,” Rocket Companies CEO Varun Krishna said in a news release.
Rocket Companies is the corporate parent of multiple Dan Gilbert businesses, the biggest being Rocket Mortgage, formerly known as Quicken Loans.
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Rocket had its initial public offering in August 2020 and had a record profit of $9.4 billion for that year amid a nationwide boom in mortgage refinancings. Rocket went on to book a $6.1 billion profit in 2021 and $700 million in 2022.
The firm tumbled out of the Fortune 500 last year and has responded to the mortgage industry downturn by cutting expenses, including several rounds of buyouts.
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Read More:Dan Gilbert’s Rocket Companies reports first full-year loss
2024-02-22 21:35:02