Rithm Capital (US:RITM)2026-02-03 11:45Financial Performance - Rithm Capital reported a GAAP net income of $53.1 million, or $0.09 per diluted common share for Q4 2025, compared to $193.7 million, or $0.35 per diluted common share in Q3 2025[4]. - For the full year 2025, Rithm Capital achieved a GAAP net income of $567.2 million, or $1.04 per diluted common share, down from $835.0 million, or $1.67 per diluted common share in FY 2024[4]. - Earnings available for distribution for Q4 2025 were $418.9 million, or $0.74 per diluted common share, compared to $296.9 million, or $0.54 per diluted common share in Q3 2025[4]. - Net income attributable to Rithm Capital Corp. for the three months ended September 30, 2025, was $84,991,000, a decrease of 61.6% from $221,538,000 in the same period of 2024[15]. - The company reported a net income per share of common stock (diluted) of $0.09 for the three months ended September 30, 2025, down from $0.35 in the same period of 2024[15]. - Net income attributable to common stockholders for Q4 2025 was $53,116,000, a decrease from $193,662,000 in Q3 2025[22]. - Earnings available for distribution (Non-GAAP) for Q4 2025 reached $418,905,000, compared to $296,892,000 in Q3 2025, reflecting a 41% increase[22]. Revenue and Income Sources - Total revenues for Q4 2025 amounted to $1,290,749,000, with a significant contribution from servicing fee revenue of $570,070,000[23]. - Newrez generated a pre-tax operating income of $249.1 million in Q4 2025, down from $314.9 million in Q3 2025, with a full year operating income of $1.1 billion, up from $966.4 million in 2024[8]. - The company reported a net interest income of $500,814,000 for the three months ended September 30, 2025, compared to $453,786,000 for the same period in 2024, reflecting an increase of 10.3%[15]. - Interest income for Q4 2025 was $500,814,000, up from $453,786,000 in Q3 2025, indicating a positive trend in interest earnings[23]. Assets and Liabilities - The total servicing unpaid principal balance (UPB) reached $852 billion at year-end 2025, reflecting a 1% year-over-year increase[8]. - Total assets as of December 31, 2025, were $53,071,929,000, up from $46,048,957,000 in 2024, indicating a growth of 15.5%[16]. - The company’s total liabilities increased to $43,808,620,000 as of December 31, 2025, from $38,162,647,000 in 2024, marking an increase of 14.0%[16]. - The company’s mortgage servicing rights and financing receivables at fair value were $10,359,141,000 as of December 31, 2025, slightly up from $10,321,671,000 in 2024[16]. Dividends - The company maintained a common dividend of $0.25 per share in Q4 2025, consistent with Q3 2025, and a total common dividend of $542.6 million for the full year 2025[4]. - The company declared dividends of $0.25 per share for the three months ended September 30, 2025, consistent with the same period in 2024[15]. Growth and Strategic Initiatives - Rithm Capital completed three non-qualified mortgage securitizations in Q4 2025 totaling $1.5 billion in UPB, achieving a record for both Q4 2025 and the full year 2025[8]. - Rithm Capital acquired Crestline Management, L.P., managing $18 billion in AUM, and Paramount Group, Inc., enhancing its asset management capabilities[8]. - Rithm Capital's residential transitional lending platform, Genesis Capital, recorded origination volumes of $1.4 billion in Q4 2025 and $4.8 billion for the full year 2025, marking a 17% and 33% year-over-year increase, respectively[8]. - Sculptor Capital Management grew to approximately $38 billion in assets under management (AUM) as of December 31, 2025, with gross fundraising inflows of $5.8 billion, a 16% year-over-year increase[8]. - Rithm Capital Corp. plans to focus on market expansion and new product development to enhance revenue streams in the upcoming quarters[25]. - Rithm Capital aims to drive value for shareholders and investors through active management of debt and equity investments[26]. Company Overview - Rithm Capital Corp. operates as a global alternative asset manager with a focus on credit and real estate assets[26]. - The firm utilizes an integrated investment platform that includes asset-based finance, residential and commercial real estate lending, and structured credit[26]. - Rithm's subsidiaries, including Newrez and Genesis Capital, support its unique owner-operator model for sourcing and managing investments[26]. - The company emphasizes disciplined growth and innovation across multiple market segments[26].