Rithm Capital (US:RITM)2025-10-30 10:55Financial Performance - GAAP net income for Q3 2025 was $193.7 million, or $0.35 per diluted common share, down from $283.9 million, or $0.53 per diluted common share in Q2 2025[3] - Earnings available for distribution increased to $296.9 million, or $0.54 per diluted common share, consistent with Q2 2025[4] - Common dividend declared was $138.5 million, or $0.25 per common share, compared to $132.6 million in Q2 2025[3] - Net income attributable to common stockholders for the three months ended September 30, 2025, was $193,662 thousand, down from $283,899 thousand for the previous quarter, reflecting a decrease of approximately 31.8%[21] - The net income per diluted share decreased to $0.35 for the three months ended September 30, 2025, compared to $0.53 for the previous quarter[21] - Total Revenues for Q3 2025 reached $1,105,523,000, an increase from $1,217,039,000 in Q2 2025[22] - Interest income for Q3 2025 was $453,786,000, compared to $478,455,000 in Q2 2025, indicating a decline of about 5.2%[22] - Servicing revenue, net for Q3 2025 was $314,930,000, while in Q2 2025 it was $419,812,000, showing a decrease of approximately 25%[22] - Total Operating Expenses for Q3 2025 were $938,855,000, an increase from $951,850,000 in Q2 2025[22] Asset Management and Growth - Newrez LLC reported pre-tax income of $295.1 million in Q3 2025, up from $275.1 million in Q2 2025, with a 20% pre-tax return on equity on $6.2 billion of equity[7] - Rithm Capital's residential transitional lending platform, Genesis Capital, achieved origination volume of $1.2 billion in Q3 2025, a 60% increase year-over-year[7] - Sculptor Capital Management's assets under management grew to approximately $37 billion as of September 30, 2025, with gross fundraising inflows of $1.4 billion during the quarter[7] - Rithm Capital entered into a definitive agreement to acquire Crestline Management, L.P., which has $18 billion in assets under management, targeting a Q4 2025 closing[7] - The company also agreed to acquire Paramount Group, Inc. for approximately $1.6 billion in cash, with closing targeted for Q4 2025[7] - Total servicing unpaid principal balance reached $878 billion, a 7% year-over-year increase, including $282 billion from third-party servicing, which grew by 21% year-over-year[7] - Origination funded production volume was $16.4 billion in Q3 2025, reflecting a 3% year-over-year increase[7] Balance Sheet and Equity - Total assets increased to $47,165,394 thousand as of September 30, 2025, up from $44,315,953 thousand on June 30, 2025, representing a growth of approximately 6.5%[15] - Cash and cash equivalents increased to $1,610,958 thousand as of September 30, 2025, from $1,600,948 thousand as of June 30, 2025[15] - Total liabilities rose to $38,255,920 thousand as of September 30, 2025, compared to $35,995,781 thousand on June 30, 2025, indicating an increase of approximately 6.3%[15] - The company’s secured financing agreements increased to $16,538,685 thousand as of September 30, 2025, up from $15,897,778 thousand in the previous quarter[15] - Stockholders' equity increased to $8,612,685 thousand as of September 30, 2025, compared to $8,059,209 thousand as of June 30, 2025, reflecting an increase of approximately 6.9%[15] - Stockholders' Equity in Rithm Capital Corp. as of September 30, 2025, was $8,498,517,000, compared to $7,948,383,000 at the end of Q2 2025[22] Market Position and Strategy - The company has a diversified investment platform that includes residential and commercial lending, MSRs, and structured credit, enhancing its market position[25] - Rithm Capital emphasizes an owner-operator model through its subsidiaries, aiming to drive value for shareholders and fund investors[25] - The company reported a net realized and unrealized gain of $44,364 thousand for the three months ended September 30, 2025, compared to a loss of $16,931 thousand in the previous quarter[21] - The company reported a change in fair value of MSRs and MSR financing receivables of $(264,351,000) in Q3 2025, compared to $(155,005,000) in Q2 2025[22]