Rocket Companies, Inc. RKT

Revenue is driven by SG&A spending, with a log-log elasticity of 1.61—every 1% increase in SG&A is associated with a 1.61% rise in revenue. The model’s overall accuracy is modest (MAPE 31.8% across 26 quarters), but a holdout test shows near-term predictive fidelity, predicting $28M versus actual $29M (about 2.7% error). The FY revenue forecast is $189M, up 51.4% year over year, signaling a strong growth trajectory. From an investor perspective, the SG&A-driven ROI appears positive given the elasticity, but profitability will hinge on margin discipline and cost efficiency amid ongoing growth.