Dec. 12 at 12:41 PM
⏰🧨
$RKT — Levered to the Cycle (Not the Balance Sheet)
Rocket’s leverage isn’t reckless debt — it’s structural 👇
🔧 Operating leverage
• Largely fixed cost base (tech, compliance, servicing, AI)
• Volume up ➝ revenue scales faster than costs
• Margins expand fast 📈
📊 Rate / volume leverage
• Falling rates = refi waves
• Flat rates = recapture + servicing stability
• After the rate shock, RKT is levered to normalization
🧠 AI productivity leverage
•
$500M+ invested in automation
• Lower cost per loan, faster closes, higher pull-through 🤖
🏠 Servicing leverage (Mr. Cooper)
• Recurring cash flow
• Built-in refi optionality
• Shock absorber → turbocharger 🚀
💰 Balance sheet (measured)
• Short-term, asset-backed, fast-turning
• Structural — not speculative
Levered to scale, rates, tech, and servicing — when the cycle turns, earnings SNAP back. 🚀
🦧 Informational only — not financial advice.