As the Q2 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the thrifts & mortgage finance industry, including Rocket Companies (NYSE: RKT) and its peers.
Thrifts & Mortgage Finance institutions operate by accepting deposits and extending loans primarily for residential mortgages, earning revenue through interest rate spreads (difference between lending rates and borrowing costs) and origination fees. The industry benefits from demographic tailwinds as millennials enter prime homebuying age, technological advancements streamlining the loan approval process, and potential interest rate stabilization improving affordability. However, significant headwinds include net interest margin compression during rate volatility, increased competition from fintech disruptors offering digital-first experiences, mounting regulatory compliance costs, and potential housing market corrections that could impact loan portfolios and default rates.
The 12 thrifts & mortgage finance stocks we track reported a slower Q2. As a group, revenues missed analysts’ consensus estimates by 3.4% while next quarter’s revenue guidance was 10.1% below.
Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 18% since the latest earnings results.
Rocket Companies (NYSE: RKT)
Born in Detroit during the 1980s and evolving into a tech-driven financial powerhouse, Rocket Companies (NYSE: RKT) is a fintech company that provides digital mortgage lending, real estate services, and personal finance solutions through its technology platform.
Rocket Companies reported revenues of $2.76 billion, up 92.9% year on year. This print fell short of analysts’ expectations by 2.7%. Overall, it was a disappointing quarter for the company with EPS in line with analysts’ estimates.
"Rocket reached record levels of purchase and refinance market share in one of the toughest spring housing markets in years, while delivering our most profitable quarter in four years," said Varun Krishna, CEO and Director of Rocket Companies.
Rocket Companies scored the fastest revenue growth among its peers. Still, the market seems discontent with the results. The stock is down 11.6% since reporting and currently trades at $11.69.
Read our full report on Rocket Companies here, it’s free.
Best Q2: Arbor Realty Trust (NYSE: ABR)
With roots dating back to 2003 and a focus on the stability of multifamily housing, Arbor Realty Trust (NYSE: ABR) is a specialized lender that provides financing solutions for multifamily and commercial real estate while also originating and servicing government-backed mortgage loans.
Arbor Realty Trust reported revenues of $115.9 million, down 11.1% year on year, outperforming analysts’ expectations by 7.1%. The business had a stunning quarter with a beat of analysts’ EPS estimates and an impressive beat of analysts’ net interest income estimates.
Although it had a fine quarter compared to its peers, the market seems unhappy with the results as the stock is down 27.1% since reporting. It currently trades at $3.49.
Is now the time to buy Arbor Realty Trust? Access our full analysis of the earnings results here, it’s free.
Flagstar Financial (NYSE: FLG)
Tracing its roots back to 1859 and rebranded from New York Community Bancorp in 2024, Flagstar Financial (NYSE: FLG) is a bank holding company that offers commercial and consumer banking services, with specialties in multi-family lending, mortgage originations, and warehouse lending.
Flagstar Financial reported revenues of $512 million, up 3.2% year on year, falling short of analysts’ expectations by 5.8%. It was a disappointing quarter as it posted a significant miss of analysts’ net interest income estimates and EPS in line with analysts’ estimates.
As expected, the stock is down 20.6% since the results and currently trades at $11.68.
Read our full analysis of Flagstar Financial’s results here.
Northwest Bancshares (NASDAQ: NWBI)
Founded in 1896 and operating across Pennsylvania, New York, Ohio, and Indiana, Northwest Bancshares (NASDAQ: NWBI) is a bank holding company that operates Northwest Bank, providing personal and business banking, investment management, and trust services.
Northwest Bancshares reported revenues of $180.8 million, up 20.2% year on year. This print surpassed analysts’ expectations by 1%. It was a satisfactory quarter as it also recorded a beat of analysts’ EPS estimates.
The stock is down 2.4% since reporting and currently trades at $15.04.
Read our full, actionable report on Northwest Bancshares here, it’s free.
PennyMac Financial Services (NYSE: PFSI)
Founded during the 2008 financial crisis to help address the mortgage market meltdown, PennyMac Financial Services (NYSE: PFSI) is a specialty financial services company that originates, services, and manages investments related to residential mortgage loans in the United States.
PennyMac Financial Services reported revenues of $565.8 million, up 5.4% year on year. This result was in line with analysts’ expectations. More broadly, it was a softer quarter as it produced a significant miss of analysts’ net interest income estimates and a significant miss of analysts’ EPS estimates.
The stock is down 26.8% since reporting and currently trades at $62.98.
Read our full, actionable report on PennyMac Financial Services here, it’s free.
Market Update
Over the past year, investors have been forced to repeatedly answer the same question: what is the market’s biggest risk? The answer has changed several times, and each shift has reshaped market leadership.
Late in 2025 and early 2026, artificial intelligence became the market’s primary uncertainty. Investors questioned whether AI would erode software pricing power and weaken competitive moats as AI made it easier to replicate once-differentiated products.
By the spring, technology took a back seat to geopolitics. The U.S. conflict with Iran briefly became the market’s dominant narrative, raising concerns about oil prices, inflation, and global growth. But as energy markets remained orderly and fears of a prolonged supply disruption faded, investors quickly turned their focus back to fundamentals.
Want to invest in winners with rock-solid fundamentals? Check out our Top 6 Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
