[Rithm Capital Corp. Second Quarter 2025 Results Overview](index=1&type=section&id=Rithm%20Capital%20Corp.%20Announces%20Second%20Quarter%202025%20Results) [Financial Highlights](index=1&type=section&id=Financial%20Highlights) Rithm Capital reported strong Q2 **2025** financial performance, with GAAP Net Income per diluted share significantly increasing to **$0.53** and common dividends stable | Metric | Q2 2025 | Q1 2025 | | :------------------------------------------------- | :------ | :------ | | GAAP Net Income per Diluted Common Share | $0.53 | $0.07 | | GAAP Net Income (in millions) | $283.9 | $36.5 | | Earnings Available for Distribution per Diluted Common Share | $0.54 | $0.52 | | Earnings Available for Distribution (in millions) | $291.1 | $275.3 | | Common Dividend per Share | $0.25 | $0.25 | | Common Dividend (in millions) | $132.6 | $132.5 | - Book value per common share stood at **$12.71** as of June **30**, **2025**[4](index=4&type=chunk) [Business Highlights](index=2&type=section&id=Business%20Highlights) Rithm Capital's diversified platform demonstrated steady Q2 **2025** growth across core operating businesses, including increased origination volume and strategic investments - Newrez, the multichannel mortgage origination and servicing platform, posted pre-tax income of **$275.1 million** in Q2'25 (excluding MSR mark-to-market gain and related hedge impact), slightly down from **$270.1 million** in Q1'25 (excluding MSR mark-to-market loss and related hedge impact)[5](index=5&type=chunk) - Newrez generated a **19%** pre-tax return on equity (ROE) on **$5.8 billion** of equity[5](index=5&type=chunk) - Total servicing unpaid principal balance (UPB) reached **$864 billion**, a **7%** increase YoY, including **$271 billion** UPB of third-party servicing (up **22%** YoY)[5](index=5&type=chunk) - Origination funded production volume was **$16.3 billion** in Q2'25, a **12%** increase YoY[5](index=5&type=chunk) - Rithm Capital completed a non-qualified mortgage securitization totaling **$504 million** in UPB[5](index=5&type=chunk) - Invested **$2.2 billion** in residential mortgage assets, including non-qualified residential mortgage loans, residential transition loans, and residential mortgage-backed securities[5](index=5&type=chunk) - Genesis Capital LLC recorded pre-tax income of **$26.9 million** in Q2'25 (excluding portfolio mark-to-market loss of **$(1.8) million**)[5](index=5&type=chunk) - Q2'25 origination volume was **$1.2 billion**, a **49%** increase YoY and a record level[5](index=5&type=chunk) - Genesis Capital expanded its sponsor base to **195**, a **30%** increase YoY[5](index=5&type=chunk) - Sculptor Capital Management Inc. grew to approximately **$36 billion** of assets under management (AUM) as of June **30**, **2025**, with gross fundraising inflows of **$1.7 billion**[5](index=5&type=chunk) - Sculptor Capital had **$525 million** of activity in collateralized loan obligation markets in Q2'25[5](index=5&type=chunk) - Held the final closing for Sculptor's Tactical Credit Fund on April **1**, **2025**, bringing total fund AUM to **$900 million**[5](index=5&type=chunk) - Subsequent to Q2'25, Rithm Capital announced a strategic partnership with a large institutional investor to fund **$500 million** of residential transition loans, with potential to upsize to **$1.5 billion**[5](index=5&type=chunk) [Consolidated Financial Statements](index=4&type=section&id=Consolidated%20Financial%20Statements) [Consolidated Statements of Operations (Unaudited)](index=4&type=section&id=Consolidated%20Statements%20of%20Operations%20(Unaudited)) Unaudited Q2 **2025** consolidated operations show a significant increase in net income attributable to common stockholders, driven by higher revenues and positive gains | Metric | Q2 2025 (in thousands) | Q1 2025 (in thousands) | | :------------------------------------------------------------------------------------------------ | :--------------------- | :--------------------- | | **Revenues:** | | | | Servicing fee revenue, net and interest income from MSRs and MSR financing receivables | $574,817 | $570,801 | | Change in fair value of MSRs and MSR financing receivables, net of economic hedges | $(155,005) | $(333,378) | | Servicing revenue, net | $419,812 | $237,423 | | Interest income | $478,455 | $441,260 | | Gain on originated residential mortgage loans, held-for-sale, net | $169,698 | $159,789 | | Other revenues | $54,066 | $50,773 | | Asset management revenues | $95,008 | $87,672 | | **Total Revenues** | **$1,217,039** | **$976,917** | | **Expenses:** | | | | Interest expense and warehouse line fees | $417,868 | $419,054 | | General and administrative | $239,575 | $237,546 | | Compensation and benefits | $294,407 | $271,467 | | **Total Expenses** | **$951,850** | **$928,067** | | Realized and unrealized gains (losses), net | $22,741 | $(1,143) | | Net Income Attributable to Common Stockholders | $283,899 | $36,523 | | Diluted Net Income per Share of Common Stock | $0.53 | $0.07 | [Consolidated Balance Sheets (Unaudited)](index=5&type=section&id=Consolidated%20Balance%20Sheets) Unaudited consolidated balance sheets show a slight decrease in total assets and liabilities from March **31** to June **30**, **2025**, with Rithm Capital Corp.'s stockholders' equity increasing | Metric | June 30, 2025 (in thousands) | March 31, 2025 (in thousands) | | :------------------------------------------------------------------------------------------------ | :--------------------------- | :---------------------------- | | **Assets:** | | | | Mortgage servicing rights and MSR financing receivables, at fair value | $10,360,063 | $10,133,041 | | Government and government-backed securities | $8,868,879 | $11,048,701 | | Residential mortgage loans, held-for-sale | $4,187,301 | $3,156,350 | | Residential transition loans, at fair value | $2,497,764 | $2,335,218 | | Cash and cash equivalents | $1,600,948 | $1,493,834 | | **Total Assets** | **$44,315,953** | **$45,329,843** | | **Liabilities:** | | | | Secured financing agreements | $15,897,778 | $16,791,234 | | Secured notes and bonds payable | $9,764,857 | $10,025,948 | | Unsecured notes, net of issuance costs | $1,414,497 | $1,207,594 | | **Total Liabilities** | **$35,995,781** | **$37,188,589** | | Stockholders' Equity in Rithm Capital Corp. | $7,948,383 | $7,776,124 | | **Total Liabilities and Equity** | **$44,315,953** | **$45,329,843** | [Non-GAAP Financial Measures and Reconciliation](index=6&type=section&id=NON-GAAP%20FINANCIAL%20MEASURES%20AND%20RECONCILIATION%20TO%20GAAP%20NET%20INCOME) [Explanation of Earnings Available for Distribution](index=6&type=section&id=Explanation%20of%20Earnings%20Available%20for%20Distribution) Rithm Capital uses Earnings Available for Distribution (EAD) as a non-GAAP measure to assess core operating performance, excluding volatile or non-core items for clearer income generation insight - Earnings available for distribution (EAD) is a non-GAAP financial measure used by management to evaluate the Company's operating performance, focusing on the core activities and ability to generate income for distribution to common stockholders[14](index=14&type=chunk)[16](index=16&type=chunk)[17](index=17&type=chunk) - EAD excludes net realized and unrealized gains and losses on certain assets and liabilities, and net other income and losses, due to their significant variability and limited indication of future economic performance[15](index=15&type=chunk) - Non-capitalized transaction-related expenses, such as legal and valuation service costs for acquisitions, are excluded as they are not considered part of core operations[15](index=15&type=chunk) - Deferred taxes are also excluded as they are not representative of current operations[15](index=15&type=chunk) [Reconciliation of Non-GAAP Measure to GAAP Net Income](index=7&type=section&id=Reconciliation%20of%20Non-GAAP%20Measure%20to%20the%20Respective%20GAAP%20Measure) The reconciliation adjusts GAAP Net Income to derive non-GAAP Earnings Available for Distribution, highlighting the impact of realized/unrealized gains/losses and specific exclusions | Metric | Q2 2025 (in thousands) | Q1 2025 (in thousands) | | :------------------------------------------------------------------------------------------------ | :--------------------- | :--------------------- | | Net income (loss) attributable to common stockholders - GAAP | $283,899 | $36,523 | | **Adjustments:** | | | | Realized and unrealized (gains) losses, net, including MSR change in valuation inputs and assumptions | $(16,931) | $203,764 | | Other (income) loss, net | $35,493 | $70,142 | | Non-capitalized transaction-related expenses (reimbursements) | $2,536 | $6,131 | | Deferred taxes | $(13,854) | $(41,295) | | **Earnings available for distribution - Non-GAAP** | **$291,143** | **$275,265** | | Net income (loss) per diluted share | $0.53 | $0.07 | | Earnings available for distribution per diluted share | $0.54 | $0.52 | [Segment Information](index=8&type=section&id=SEGMENT%20INFORMATION) [Second Quarter Ended June 30, 2025 Segment Performance](index=8&type=section&id=Second%20Quarter%20Ended%20June%2030%2C%202025%20Segment%20Performance) In Q2 **2025**, Origination and Servicing primarily drove Rithm Capital's net income, with Investment Portfolio and Residential Transitional Lending also contributing positively, while Asset Management reported a net loss | Metric | Origination and Servicing (in thousands) | Investment Portfolio (in thousands) | Residential Transitional Lending (in thousands) | Asset Management (in thousands) | Corporate Category (in thousands) | Total (in thousands) | | :------------------------------------------------------------------------------------------------ | :--------------------------------------- | :---------------------------------- | :-------------------------------------- | :------------------------------ | :-------------------------------- | :------------------- | | Total Revenues | $925,629 | $110,030 | $75,405 | $102,849 | $3,126 | $1,217,039 | | Total Operating Expenses | $627,055 | $100,919 | $56,451 | $109,946 | $57,479 | $951,850 | | Income (Loss) before Income Taxes | $305,009 | $34,129 | $25,050 | $(1,557) | $(56,223) | $306,408 | | Net Income (Loss) Attributable to Rithm Capital Corp. | $315,675 | $34,103 | $24,720 | $(3,999) | $(58,782) | $311,717 | | Total Assets | $28,608,834 | $8,858,316 | $3,787,813 | $2,470,718 | $590,272 | $44,315,953 | | Stockholders' Equity in Rithm Capital Corp. | $5,822,508 | $1,551,666 | $820,746 | $895,407 | $(1,141,944) | $7,948,383 | [First Quarter Ended March 31, 2025 Segment Performance](index=9&type=section&id=First%20Quarter%20Ended%20March%2031%2C%202025%20Segment%20Performance) In Q1 **2025**, Origination and Servicing led in net income contribution, with Investment Portfolio and Residential Transitional Lending positive, and Asset Management and Corporate Category reporting net losses | Metric | Origination and Servicing (in thousands) | Investment Portfolio (in thousands) | Residential Transitional Lending (in thousands) | Asset Management (in thousands) | Corporate Category (in thousands) | Total (in thousands) | | :------------------------------------------------------------------------------------------------ | :--------------------------------------- | :---------------------------------- | :-------------------------------------- | :------------------------------ | :-------------------------------- | :------------------- | | Total Revenues | $707,216 | $105,120 | $66,508 | $97,085 | $988 | $976,917 | | Total Operating Expenses | $617,076 | $91,744 | $52,490 | $118,394 | $48,363 | $928,067 | | Income (Loss) before Income Taxes | $90,022 | $17,959 | $15,920 | $(19,751) | $(47,370) | $56,780 | | Net Income (Loss) Attributable to Rithm Capital Corp. | $146,362 | $25,743 | $17,010 | $(62,124) | $(48,180) | $78,811 | | Total Assets | $30,126,396 | $8,567,949 | $3,667,080 | $2,440,527 | $527,891 | $45,329,843 | | Stockholders' Equity in Rithm Capital Corp. | $5,516,331 | $1,527,528 | $845,627 | $876,217 | $(989,579) | $7,776,124 | [Corporate Information and Disclosures](index=3&type=section&id=ADDITIONAL%20INFORMATION) [Investor Relations and Conference Call](index=3&type=section&id=EARNINGS%20CONFERENCE%20CALL) Rithm Capital will host an earnings conference call on Monday, July **28**, **2025**, to discuss Q2 results, with live access and telephonic replay details provided - Rithm Capital's management will host a conference call on Monday, July **28**, **2025**, at **8**:00 A.M. Eastern Time[7](index=7&type=chunk) - Access to the conference call is available by dialing 1-833-974-2382 (U.S.) or 1-412-317-5787 (outside U.S.), with pre-registration encouraged at https://dpregister.com/sreg/10201660/ffa323429c[8](index=8&type=chunk) - A simultaneous webcast will be available on a listen-only basis at www.rithmcap.com[9](index=9&type=chunk) - A telephonic replay will be available from two hours after the call until August **4**, **2025**, by dialing 1-877-344-7529 (U.S.) or 1-412-317-0088 (outside U.S.), using access code 5582814[10](index=10&type=chunk) [About Rithm Capital](index=10&type=section&id=ABOUT%20RITHM%20CAPITAL) Rithm Capital Corp. is a global, multi-dimensional asset manager specializing in credit and real estate, leveraging an integrated platform and owner-operator model - Rithm Capital Corp. is a global, multi-dimensional asset manager with significant experience managing credit and real estate assets, combining institutional expertise with an entrepreneurial culture[22](index=22&type=chunk) - The firm's integrated investment platform covers residential and commercial lending, MSRs, and structured credit[22](index=22&type=chunk) - Through subsidiaries such as Newrez, Genesis Capital, and Sculptor Capital Management, Rithm operates a unique owner-operator model for sourcing, financing, and managing debt and equity investments[22](index=22&type=chunk) [Cautionary Note Regarding Forward-Looking Statements](index=10&type=section&id=CAUTIONARY%20NOTE%20REGARDING%20FORWARD-LOOKING%20STATEMENTS) This press release contains forward-looking statements subject to risks and uncertainties, where actual results may differ materially; readers should refer to SEC filings for risk factors - The press release contains forward-looking statements that are not historical facts and represent management's current expectations, subject to trends and uncertainties beyond the Company's control[21](index=21&type=chunk) - Actual results could differ materially from those described in forward-looking statements[21](index=21&type=chunk) - Readers should not place undue reliance on these statements and are directed to the Company's SEC filings for a discussion of risks and important factors[21](index=21&type=chunk) - Rithm Capital disclaims any obligation to publicly update or revise any forward-looking statements[21](index=21&type=chunk)

Wall Street analysts expect Rithm (RITM) to post quarterly earnings of $0.51 per share in its upcoming report, which indicates a year-over-year increase of 8.5%. Revenues are expected to be $1.25 billion, up 1.6% from the year-ago quarter. Over the past 30 days, the consensus EPS estimate for the quarter has remained unchanged. This demonstrates the covering analysts' collective reassessment of their initial projections during this period. Ahead of a company's earnings disclosure, it is crucial to give due ...

Company Performance - Rithm (RITM) closed at $12.19, reflecting a +1.58% change from the previous day, outperforming the S&P 500's 0.06% gain [1] - The stock has increased by 6.86% over the past month, surpassing the Finance sector's gain of 4.07% and the S&P 500's gain of 5.88% [1] Upcoming Earnings - Rithm is set to release its earnings report on July 28, 2025, with analysts expecting earnings of $0.51 per share, indicating a year-over-year growth of 8.51% [2] - The consensus estimate for quarterly revenue is $1.25 billion, which represents a 1.63% increase from the same period last year [2] Fiscal Year Projections - For the entire fiscal year, earnings are projected at $2.1 per share, with revenue expected to be $4.56 billion, reflecting no change in earnings and a -12.91% decline in revenue from the prior year [3] Analyst Estimates - Recent modifications to analyst estimates for Rithm are crucial as they reflect the changing dynamics of short-term business patterns, with positive changes indicating a favorable outlook on business health and profitability [4] Zacks Rank and Valuation - Rithm currently holds a Zacks Rank of 3 (Hold), with the Zacks Consensus EPS estimate remaining unchanged over the last 30 days [6] - The Forward P/E ratio for Rithm is 5.72, which is a discount compared to the industry average Forward P/E of 12.43 [7] - The Financial - Miscellaneous Services industry, part of the Finance sector, has a Zacks Industry Rank of 95, placing it in the top 39% of over 250 industries [7]

Core Viewpoint - Rithm Capital Corp. is expected to report second-quarter 2025 earnings on July 28, 2025, with an estimated earnings of 51 cents per share and revenues of $1.25 billion, reflecting a year-over-year increase in earnings but a slight revenue growth [1][2][6]. Earnings Estimates - The second-quarter earnings estimate has decreased by one cent over the past 60 days, but it still indicates an 8.5% year-over-year increase [2]. - The Zacks Consensus Estimate for quarterly revenues suggests a 1.6% year-over-year rise [2]. - For the full year 2025, the revenue estimate is $4.56 billion, which represents a 12.9% year-over-year decrease [3]. Recent Performance - Rithm Capital has consistently beaten consensus estimates in the last four quarters, with an average surprise of 21.6% [3]. - The company has an Earnings ESP of -2.60% and a Zacks Rank of 3, indicating uncertainty regarding an earnings beat this quarter [4]. Factors Influencing Q2 Results - The diversified platform strength and strategic partnerships are expected to support second-quarter results, with a projected 4.5% year-over-year growth in interest income [5]. - The profitability of the Newrez business is likely to benefit the Origination & Servicing segment, with a projected 27.7% year-over-year increase in net gain on originated residential mortgage loans [7]. Revenue Projections - The consensus estimate for asset management revenues is $100.19 million, down 8.4% year over year [9]. - The consensus estimate for net servicing revenues is $425.3 million, indicating a 1.3% year-over-year decline [9]. - Other revenues are projected to decline by 35.5% year over year [9].

Wall Street expects a year-over-year increase in earnings on higher revenues when Rithm (RITM) reports results for the quarter ended June 2025. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on July 28. On the othe ...

In the latest close session, Rithm (RITM) was up +1.62% at $11.90. This move outpaced the S&P 500's daily gain of 0.32%. Meanwhile, the Dow gained 0.53%, and the Nasdaq, a tech-heavy index, added 0.26%. The real estate investment trust's stock has climbed by 5.4% in the past month, exceeding the Finance sector's gain of 3.04% and the S&P 500's gain of 4.51%.The investment community will be closely monitoring the performance of Rithm in its forthcoming earnings report. The company is expected to report EPS o ...

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Core Insights - The article provides a detailed analysis comparing Rithm Capital Corp. (RITM) to 17 other mortgage real estate investment trusts (mREITs) [1] - The analysis is divided into two parts, with Part 1 focusing on RITM's recent results and metrics compared to peers, while Part 2 emphasizes dividend rates, yield percentages, and sustainability metrics [2][3] Part 1 Summary - RITM's book value as of March 31, 2025, is compared to 17 mREIT peers to enhance understanding of its financial standing [2] - The analysis aims to provide insights into RITM's performance relative to its peers, particularly in terms of dividend sustainability [4] Part 2 Summary - Part 2 focuses on RITM's dividend per share rates, yield percentages, and sustainability metrics compared to 17 mREIT peers [3] - RITM's dividend history shows an increase from $0.35 per share in Q3 2014 to $0.50 by Q4 2019, followed by a cautious reduction to $0.05 during Q1 2020 due to the COVID-19 pandemic [13] - RITM's dividend was increased to $0.25 per share in Q3 2021 and has remained constant since, contrasting with many peers that reduced dividends [15] Dividend Analysis - As of Q1 2025, RITM declared a dividend of $0.25 per share, resulting in a TTM dividend yield of 8.78% and an annual forward yield of 8.07% based on book value [16] - RITM's core earnings available for distribution (EAD) is a key metric for assessing dividend sustainability, with core earnings of $171.1 million reported for Q1 2023 [21] - The quarterly dividend distributions payout ratio for RITM has been attractive, with ratios of 71%, 41%, 43%, and 49% for Q1 to Q4 2023, respectively [21] Future Projections - RITM is projected to maintain a very high probability (90%) of a dividend between $0.25 and $0.30 per share for Q3 and Q4 2025 [30] - The estimated current book value as of June 20, 2025, is projected at $12.65 per share, with a price target of approximately $13.30 [36] Comparative Metrics - RITM's TTM dividend yield and annual forward yield are modestly below average compared to its peer PMT, indicating a potential cushion for future dividend sustainability [28] - The analysis includes various metrics such as leverage ratios, core earnings, and dividend sustainability to provide a comprehensive view of RITM's financial health [17][30]

Company Performance - Rithm (RITM) closed at $11.29, reflecting a -1.4% change from the previous day's closing price, underperforming the S&P 500 which lost 1.13% [1] - Over the past month, Rithm's shares have decreased by 1.55%, while the Finance sector gained 1.24% and the S&P 500 increased by 3.55% [1] Earnings Expectations - The upcoming earnings report for Rithm is expected to show an EPS of $0.52, representing a 10.64% increase compared to the same quarter last year [2] - Revenue is projected at $1.22 billion, indicating a 0.61% decline from the equivalent quarter last year [2] Fiscal Year Projections - For the entire fiscal year, earnings are estimated at $2.1 per share, with revenue expected to be $4.53 billion, reflecting no change in earnings and a -13.56% decrease in revenue from the previous year [3] Analyst Estimates - Recent changes to analyst estimates for Rithm are significant as they indicate shifting near-term business trends, with upward revisions suggesting positive sentiment towards the company's operations [4] Zacks Rank and Valuation - Rithm currently holds a Zacks Rank of 1 (Strong Buy), with the consensus EPS estimate having increased by 2.78% over the past month [6] - The Forward P/E ratio for Rithm is 5.46, which is a discount compared to the industry average Forward P/E of 11.21 [7] Industry Context - The Financial - Miscellaneous Services industry, to which Rithm belongs, has a Zacks Industry Rank of 137, placing it in the bottom 45% of over 250 industries [7] - The top 50% rated industries outperform the bottom half by a factor of 2 to 1, indicating the competitive landscape within the sector [8]