Dan Gilbert's Rocket Companies stayed profitable in second quarter

Dan Gilbert's Rocket Companies is staying profitable, even amid 7% mortgage rates.

The Detroit-based parent company of Rocket Mortgage on Thursday reported a net income, or profit, of $178 million in the second quarter on $1.3 billion in revenue.

Those earnings were down slightly from the first quarter — $291 million net income on $1.38 billion revenue — yet an improvement from the second quarter last year ($139 million net income on $1.2 billion revenue).

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Rocket's closely watched "gain on sale" margins, or profit margins, was 2.9%, which was down slightly from the first quarter, although higher than the 2.7% margins of a year earlier.

For the year to date, Rocket is solidly in the black with $469 million in net income, compared to a loss of $272 million for the first half of 2023.

"Our team achieved impressive results in Q2," Rocket Cos. CEO Varun Krishna said in an earnings release late Thursday afternoon. "We, again, grew our purchase market share year-over-year by making continuous improvements across our processes, teams, marketing and technology. We also delivered year-over-year top-line growth for the fourth straight quarter and expanded profitability for the fifth quarter in a row."

Rocket Cos. is the publicly traded corporate parent for multiple Gilbert businesses, the biggest being Rocket Mortgage, which is the nation's No. 2 mortgage lender by volume behind Pontiac-based United Wholesale Mortgage.

Rocket shares closed down 83 cents Thursday to $15.36.