Rithm Capital Corp. Announces Fourth Quarter and Full Year 2025 Results

NEW YORK--( BUSINESS WIRE)--Rithm Capital Corp. (NYSE: RITM; “Rithm Capital,” “Rithm” or the “Company”) today reported the following information for the fourth quarter ended and full year ended December 31, 2025.

Michael Nierenberg, Chief Executive Officer of Rithm Capital, said, “2025 was a year of strategic progress for Rithm, marked by disciplined execution and consistent performance across every segment of our business. We delivered a 19% EAD return on equity for the full year and, through the targeted acquisitions of Crestline and Paramount Group, we continued to expand our diversified, alternative asset management platform, ending the year with over $100 billion in investable assets. At the same time, we deepened our value creation capabilities across real estate and credit, further strengthening our platform.

“Our Q4 results underscore the durable momentum we have built as we closed key transactions, expanded our client franchise and maintained solid earnings that reflect the power of our unified ecosystem. As we enter 2026, Rithm is well-positioned for growth. The strategic investments we have made across asset management, Newrez, Genesis, and our investment portfolio provide a strong foundation to outcompete and capture strategic opportunities for our clients and shareholders. Our scale, diversity, and proprietary insight as an owner-operator give us distinctive advantages in today’s market, and I am confident in our platform and the growth trajectory ahead.”

Fourth Quarter 2025 Financial Highlights:

Full Year 2025 Financial Highlights:

Q4 2025

Q3 2025

FY 2025

FY 2024

Summary Operating Results:

GAAP Net Income per Diluted Common Share (1)

0.09

0.35

1.04

1.67

GAAP Net Income (in millions)

53.1

193.7

567.2

835.0

Non-GAAP Results:

Earnings Available for Distribution per Diluted Common Share (1)(2)

0.74

0.54

2.35

2.10

Earnings Available for Distribution (2) (in millions)

418.9

296.9

1,282.2

1,050.5

Common Dividend:

Common Dividend per Share

0.25

1.00

Common Dividend (in millions)

139.0

138.5

542.6

503.4

Business Highlights:

(1)

Per diluted common share calculations for both GAAP Net Income and Earnings Available for Distribution are based on 564,691,202 and 551,295,686 weighted average diluted shares for the quarters ended December 31, 2025 and September 30, 2025, respectively. Per diluted common share calculations for both GAAP Net Income and Earnings Available for Distribution are based on 546,091,491 and 499,597,670 weighted average diluted shares for the years ended December 31, 2025 and 2024, respectively. The per share calculation of Book Value is based on 555,880,947 common shares outstanding as of December 31, 2025.

(2)

Earnings Available for Distribution is a non-GAAP financial measure. For a reconciliation of Earnings Available for Distribution to GAAP Net Income, as well as an explanation of this measure, please refer to the section entitled Non-GAAP Financial Measures and Reconciliation to GAAP Net Income below.

(3)

Q4’25 annualized operating ROE and full year 2025 operating ROE are non-GAAP measures. Q4’25 annualized operating ROE is calculated based on annualized pre-tax operating income of $249.1 million, excluding the net of hedge MSRs MTM and other non-operating items of $(216.5) million, divided by the average Origination and Servicing segment ending equity of $5.9 billion. Operating ROE for the full year 2025 is calculated based on pre-tax operating income of $1.1 billion, excluding the net of hedge MSRs MTM and other non-operating items of $(467.5) million, divided by the average Origination and Servicing segment ending equity of $5.8 billion.

(4)

AUM is estimated and refers to the value of assets for which Rithm Capital and its affiliates provide discretionary investment management or advisory services. AUM is generally calculated as the sum of: (i) the net asset value of managed accounts and open-ended funds or gross asset value of real estate and real estate funds, (ii) uncalled capital commitments and (iii) par value of structured credit vehicles. AUM includes amounts that are not subject to management fees, incentive income or other amounts earned on AUM. Rithm Capital's calculation of AUM is intended to provide a consistent and comparable measure of managed assets across its businesses; however it is not based on any specific regulatory definition and may differ from similarly titled measures presented by other asset managers and, as a result, may not be comparable.

ADDITIONAL INFORMATION

For additional information that management believes to be useful for investors, please refer to the latest presentation posted on the Investors - News section of the Company’s website, www.rithmcap.com. Information on, or accessible through, our website is not a part of, and is not incorporated into, this press release.

EARNINGS CONFERENCE CALL

Rithm Capital’s management will host a conference call on Tuesday, February 3, 2026 at 8:00 A.M. Eastern Time. A copy of the earnings release will be posted to the Investors - News section of Rithm Capital’s website, www.rithmcap.com.

The conference call may be accessed by dialing 1-833-974-2382 (from within the U.S.) or 1-412-317-5787 (from outside of the U.S.) ten minutes prior to the scheduled start of the call; please reference “Rithm Capital Fourth Quarter and Full Year 2025 Earnings Call.” In addition, participants are encouraged to pre-register for the conference call at https://dpregister.com/sreg/10206337/103377fcf1a.

A simultaneous webcast of the conference call will be available to the public on a listen-only basis at www.rithmcap.com. Please allow extra time prior to the call to visit the website and download any necessary software required to listen to the internet broadcast.

A telephonic replay of the conference call will also be available two hours following the call’s completion through 11:59 P.M. Eastern Time on Tuesday, February 10, 2026, by dialing 1-855-669-9658 (from within the U.S.) or 1-412-317-0088 (from outside of the U.S.); please reference access code “1202515”.

Rithm Capital Corp. and Subsidiaries

Consolidated Statements of Operations

($ in thousands, except share and per share data)

Three Months Ended

Year Ended December 31,

December 31, 2025

(Unaudited)

September 30, 2025

(Unaudited)

2025

(Unaudited)

2024

Revenues

Servicing fee revenue, net and interest income from MSRs and MSR financing receivables

570,070

579,281

2,294,969

1,993,319

Change in fair value of MSRs and MSR financing receivables, net of economic hedges (includes realization of cash flows of $(232,554), $(189,881), $(746,006) and $(602,241), respectively)

(421,815

)

(264,351

)

(1,174,549

)

(455,918

)

Servicing revenue, net

148,255

314,930

1,120,420

1,537,401

Interest income

500,814

453,786

1,874,315

1,949,790

Gain on originated residential mortgage loans, held-for-sale, net

203,731

196,308

729,526

682,535

Other revenues

78,460

55,628

238,927

227,472

Asset management revenues

359,489

84,871

627,040

520,294

1,290,749

1,105,523

4,590,228

4,917,492

Expenses

Interest expense and warehouse line fees

422,821

402,690

1,662,433

1,835,325

General and administrative

297,351

237,092

1,011,564

868,484

Compensation and benefits

453,932

299,073

1,318,879

1,134,768

1,174,104

938,855

3,992,876

3,838,577

Other Income (Loss)

Realized and unrealized gains (losses), net

50,876

53,393

125,867

72,639

Other income (loss), net

38,804

16,809

83,164

57,255

89,680

70,202

209,031

129,894

Income before Income Taxes

206,325

236,870

806,383

1,208,809

Income tax expense (benefit)

115,747

8,072

88,291

267,317

Net Income

90,578

228,798

718,092

941,492

Noncontrolling interests in income of consolidated subsidiaries

1,234

3,331

8,820

9,989

Redeemable noncontrolling interests in income of consolidated subsidiaries

4,353

3,929

12,215

—

Net Income Attributable to Rithm Capital Corp.

84,991

221,538

697,057

931,503

Change in redemption value of redeemable noncontrolling interests

—

15,611

—

Dividends on preferred stock

31,875

27,876

114,246

96,456

Net Income Attributable to Common Stockholders

53,116

193,662

567,200

835,047

Net Income per Share of Common Stock

Basic

0.10

0.36

1.05

1.69

Diluted

0.09

0.35

1.04

1.67

Weighted Average Number of Shares of Common Stock Outstanding

Basic

555,021,130

541,835,419

537,879,037

495,479,956

Diluted

564,691,202

551,295,686

546,091,491

499,597,670

Dividends Declared per Share of Common Stock

0.25

1.00

Rithm Capital Corp. and Subsidiaries

Consolidated Balance Sheets

($ in thousands, except share and per share data)

December 31,

2025

(Unaudited)

2024

Assets

Mortgage servicing rights and mortgage servicing rights financing receivables, at fair value

10,359,141

10,321,671

Government and government-backed securities ($5,230,139 and $9,711,346 at fair value, respectively)

5,254,905

9,736,116

Residential mortgage loans, held-for-sale ($5,427,481 and $4,307,571 at fair value, respectively) (A)

5,484,272

4,374,241

Residential mortgage loans, held-for-investment, at fair value

324,688

361,890

Consumer loans, held-for-investment, at fair value (A)

784,399

665,565

Residential transition loans, at fair value

2,699,864

2,178,075

Residential mortgage loans subject to repurchase

3,952,792

2,745,756

Real estate, net (A)

4,673,886

1,056,193

Insurance company investments, at fair value

906,454

—

Cash and cash equivalents (A)

1,847,626

1,458,743

Restricted cash (A)

809,312

308,443

Servicer advances receivable

3,090,613

3,198,921

Intangible assets, net

1,878,196

331,949

Other assets ($2,707,456 and $2,311,979 at fair value, respectively) (A)

5,216,432

4,203,568

Assets of Consolidated Entities (A):

Investments, at fair value and other assets

5,789,349

5,107,826

Total Assets

53,071,929

46,048,957

Liabilities and Equity

Liabilities

Secured financing agreements (A)

13,763,802

16,782,467

Secured notes and bonds payable ($143,442 and $185,460 at fair value, respectively) (A)

15,203,770

10,298,075

Residential mortgage loan repurchase liability

3,952,792

2,745,756

Unsecured notes, net of issuance costs

1,421,088

1,204,220

Interest sensitive insurance contract liabilities

960,209

—

Dividends payable

178,900

153,114

Accrued expenses and other liabilities ($638,090 and $525,486 at fair value, respectively) (A)

3,349,847

2,630,771

Liabilities of Consolidated Entities (A):

Notes payable, at fair value and other liabilities

4,978,212

4,348,244

Total Liabilities

43,808,620

38,162,647

Commitments and Contingencies

Redeemable Noncontrolling Interests of Consolidated Subsidiaries

314,303

—

Stockholders’ Equity

Preferred stock, $0.01 par value, 100,000,000 shares authorized, 57,564,122 and 51,964,122 issued and outstanding, $1,439,104 and $1,299,104 aggregate liquidation preference, respectively

1,390,790

1,257,254

Common stock, $0.01 par value, 2,000,000,000 shares authorized, 555,880,947 and 520,656,256 issued and outstanding, respectively

5,559

5,206

Additional paid-in capital

6,982,991

6,528,613

Retained earnings

(19,945

)

(46,985

)

Accumulated other comprehensive income

71,092

50,886

Stockholders’ Equity in Rithm Capital Corp.

8,430,487

7,794,974

Noncontrolling interests in equity of consolidated subsidiaries

518,519

91,336

Total Stockholders’ Equity

8,949,006

7,886,310

Total Liabilities and Equity

53,071,929

46,048,957

(A)

The Company's consolidated balance sheets include assets and liabilities of consolidated variable interest entities (“VIEs”) and certain other consolidated VIEs, including funds and collateralized financing entities (“CFEs”) that are presented separately within assets and liabilities of consolidated entities. VIE assets can only be used to settle obligations and liabilities of the VIEs. VIE creditors do not have recourse to Rithm Capital Corp.

NON-GAAP FINANCIAL MEASURES AND RECONCILIATION TO GAAP NET INCOME

The Company has four primary variables that impact its performance: (i) net interest margin on assets held within the investment portfolio; (ii) realized and unrealized gains or losses on assets held within the investment portfolio and operating companies, including any impairment or reserve for expected credit losses; (iii) income from the Company’s operating company investments; and (iv) the Company’s operating expenses and taxes.

“Earnings available for distribution” is a non-GAAP financial measure of the Company’s operating performance, which is used by management to evaluate the Company’s performance, excluding: (i) net realized and unrealized gains and losses on certain assets and liabilities; (ii) net other income and losses; (iii) non-capitalized transaction-related expenses; and (iv) deferred taxes.

The Company’s definition of earnings available for distribution excludes certain realized and unrealized losses, which although they represent a part of the Company’s recurring operations, are subject to significant variability and are generally limited to a potential indicator of future economic performance. Within net other income and losses, management primarily excludes (i) equity-based compensation expenses, (ii) severance costs, (iii) non-cash deferred interest expense, (iv) depreciation expense related to real estate properties and (v) amortization expense related to intangible assets, as management does not consider this non-cash activity to be a component of earnings available for distribution. With regard to non-capitalized transaction-related expenses, management does not view these costs as part of the Company’s core operations, as they are considered by management to be similar to realized losses incurred at acquisition. Non-capitalized transaction related expenses generally relate to legal and valuation service costs, as well as other professional service fees, incurred when the Company acquires certain investments, as well as costs associated with the acquisition and integration of acquired businesses. Management also excludes deferred taxes because the Company believes deferred taxes are not representative of current operations.

Management believes that the adjustments to compute “earnings available for distribution” specified above allow investors and analysts to readily identify and track the operating performance of the assets that form the core of the Company’s activity, assist in comparing the core operating results between periods and enable investors to evaluate the Company’s current core performance using the same financial measure that management uses to operate the business. Management also utilizes earnings available for distribution as a financial measure in its decision-making process relating to improvements to the underlying fundamental operations of the Company’s investments, as well as the allocation of resources between those investments, and management also relies on earnings available for distribution as an indicator of the results of such decisions. Earnings available for distribution excludes certain recurring items, such as gains and losses (including impairment and reserves as well as derivative activities) and non-capitalized transaction-related expenses, because they are not considered by management to be part of the Company’s core operations for the reasons described herein. As such, earnings available for distribution is not intended to reflect all of the Company’s activity and should be considered as only one of the factors used by management in assessing the Company’s performance, along with GAAP net income which is inclusive of all of the Company’s activities.

The Company views earnings available for distribution as a consistent financial measure of its portfolio’s ability to generate income for distribution to common stockholders. Earnings available for distribution does not represent and should not be considered as a substitute for, or superior to, net income or as a substitute for, or superior to, cash flows from operating activities, each as determined in accordance with GAAP, and the Company’s calculation of this financial measure may not be comparable to similarly entitled financial measures reported by other companies. Furthermore, to maintain qualification as a REIT, U.S. federal income tax law generally requires that the Company distribute at least 90% of its REIT taxable income annually, determined without regard to the deduction for dividends paid and excluding net capital gains. Because the Company views earnings available for distribution as a consistent financial measure of its ability to generate income for distribution to common stockholders, earnings available for distribution is one metric, but not the exclusive metric, that the Company’s board of directors uses to determine the amount, if any, and the payment date of dividends on common stock. However, earnings available for distribution should not be considered as an indication of the Company’s taxable income, a guaranty of its ability to pay dividends or as a proxy for the amount of dividends it may pay, as earnings available for distribution excludes certain items that impact its cash needs.

Reconciliation of Non-GAAP Measure to the Respective GAAP Measure

The table below provides a reconciliation of earnings available for distribution to the most directly comparable GAAP financial measure (dollars in thousands, except share and per share data):

Three Months Ended

Year Ended December 31,

December 31,

2025

September 30,

2025

2024

Net income (loss) attributable to common stockholders - GAAP

53,116

193,662

567,200

835,047

Adjustments:

Realized and unrealized (gains) losses, net, including MSR change in valuation inputs and assumptions

166,648

44,364

397,845

(181,070

)

Other (income) loss, net

54,154

43,248

203,037

142,285

Computershare Mortgage Acquisition:

Bargain purchase gain

—

(27,415

)

Non-recurring acquisition and restructuring expenses

—

14,936

Non-capitalized transaction-related expenses

33,373

11,735

53,775

12,286

Deferred taxes

111,614

3,883

60,348

254,402

Earnings available for distribution - Non-GAAP

418,905

296,892

1,282,205

1,050,471

Net income (loss) per diluted share

0.09

0.35

1.04

1.67

Earnings available for distribution per diluted share

0.74

0.54

2.35

2.10

Weighted average number of shares of common stock outstanding, diluted

564,691,202

551,295,686

546,091,491

499,597,670

SEGMENT INFORMATION

($ in thousands)

Fourth Quarter Ended December 31, 2025

Origination and Servicing

Residential Transitional Lending

Asset Management

Investment Portfolio

Corporate Category

Total

Servicing fee revenue, net and interest income from MSRs and MSR financing receivables

570,070

—

570,070

Change in fair value of MSRs and MSR financing receivables, net of economic hedges (includes realization of cash flows of $(232,554))

(421,815

)

—

(421,815

)

Servicing revenue, net

148,255

—

148,255

Interest income

305,075

82,075

16,807

93,696

3,161

500,814

Gain on originated residential mortgage loans, held-for-sale, net

188,023

—

15,708

—

203,731

Other revenues

24,556

—

26,933

26,971

—

78,460

Asset management revenues

—

359,489

—

359,489

Total Revenues

665,909

82,075

403,229

136,375

3,161

1,290,749

Interest expense and warehouse line fees

254,331

34,960

18,878

87,927

26,725

422,821

Other segment expenses

159,952

9,073

61,339

26,661

4,341

261,366

Compensation and benefits

213,425

17,583

201,558

795

20,571

453,932

Depreciation and amortization

6,171

1,939

18,948

8,927

—

35,985

Total Operating Expenses

633,879

63,555

300,723

124,310

51,637

1,174,104

Realized and unrealized gains (losses), net

—

6,829

3,583

40,464

—

50,876

Other income (loss), net

527

158

9,257

28,860

38,804

Total Other Income (Loss)

527

6,987

12,840

69,324

89,680

Income (Loss) before Income Taxes

32,557

25,507

115,346

81,389

(48,474

)

206,325

Income tax expense (benefit)

94,114

(59

)

24,873

(4,268

)

1,087

115,747

Net Income (Loss)

(61,557

)

25,566

90,473

85,657

(49,561

)

90,578

Noncontrolling interests in income (loss) of consolidated subsidiaries

976

—

(911

)

1,169

—

1,234

Redeemable noncontrolling interests in income of consolidated subsidiaries

—

1,907

—

2,446

4,353

Net Income (Loss) Attributable to Rithm Capital Corp.

(62,533

)

25,566

89,477

84,488

(52,007

)

84,991

Dividends on preferred stock

—

31,875

Net Income (Loss) Attributable to Common Stockholders

(62,533

)

25,566

89,477

84,488

(83,882

)

53,116

Total Assets

27,459,943

4,057,146

10,409,016

10,687,181

458,643

53,071,929

Stockholders' Equity in Rithm Capital Corp.

5,566,600

881,484

1,650,474

1,664,739

(1,332,810

)

8,430,487

Third Quarter Ended September 30, 2025

Origination and Servicing

Residential Transitional Lending

Asset Management

Investment Portfolio

Corporate Category

Total

Servicing fee revenue, net and interest income from MSRs and MSR financing receivables

579,281

—

579,281

Change in fair value of MSRs and MSR financing receivables, net of economic hedges (includes realization of cash flows of $(189,881))

(264,351

)

—

(264,351

)

Servicing revenue, net

314,930

—

314,930

Interest income

309,878

77,606

10,601

52,480

3,221

453,786

Gain on originated residential mortgage loans, held-for-sale, net

182,446

—

13,862

—

196,308

Other revenues

28,946

—

26,682

—

55,628

Asset management revenues

—

84,871

—

84,871

Total Revenues

836,200

77,606

95,472

93,024

3,221

1,105,523

Interest expense and warehouse line fees

254,253

36,785

6,181

78,767

26,704

402,690

Other segment expenses

141,525

5,112

26,926

19,248

21,151

213,962

Compensation and benefits

198,213

15,805

65,590

1,032

18,433

299,073

Depreciation and amortization

6,342

1,936

7,423

7,429

—

23,130

Total Operating Expenses

600,333

59,638

106,120

106,476

66,288

938,855

Realized and unrealized gains (losses), net

—

3,145

6,628

43,620

—

53,393

Other income (loss), net

(1,756

)

138

10,987

7,433

16,809

Total Other Income (Loss)

(1,756

)

3,283

17,615

51,053

70,202

Income (Loss) before Income Taxes

234,111

21,251

6,967

37,601

(63,060

)

236,870

Income tax expense (benefit)

7,754

(627

)

942

—

8,072

Net Income (Loss)

226,357

21,878

6,025

37,598

(63,060

)

228,798

Noncontrolling interests in income (loss) of consolidated subsidiaries

916

—

961

1,454

—

3,331

Redeemable noncontrolling interest in income of consolidated subsidiary

—

1,309

—

2,620

3,929

Net Income (Loss) Attributable to Rithm Capital Corp.

225,441

21,878

3,755

36,144

(65,680

)

221,538

Dividends on preferred stock

—

27,876

Net Income (Loss) Attributable to Common Stockholders

225,441

21,878

3,755

36,144

(93,556

)

193,662

Total Assets

29,143,691

3,944,081

2,835,646

10,741,474

500,502

47,165,394

Stockholders' Equity in Rithm Capital Corp.

6,180,238

941,029

924,367

1,739,359

(1,286,476

)

8,498,517

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

Certain information in this press release constitutes “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are not historical facts. They represent management’s current expectations regarding future events and are subject to a number of trends and uncertainties, many of which are beyond our control, which could cause actual results to differ materially from those described in the forward-looking statements. Accordingly, you should not place undue reliance on any forward-looking statements contained herein. For a discussion of some of the risks and important factors that could affect such forward-looking statements, see the sections entitled “Cautionary Statement Regarding Forward Looking Statements,” “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the Company’s most recent annual and quarterly reports and other filings filed with the U.S. Securities and Exchange Commission, which are available on the Company’s website ( www.rithmcap.com). New risks and uncertainties emerge from time to time, and it is not possible for Rithm Capital to predict or assess the impact of every factor that may cause its actual results to differ from those contained in any forward-looking statements. Forward-looking statements contained herein speak only as of the date of this press release, and Rithm Capital expressly disclaims any obligation to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in Rithm Capital's expectations with regard thereto or change in events, conditions or circumstances on which any statement is based.

ABOUT RITHM CAPITAL

Rithm Capital Corp. is a global alternative asset manager with significant experience managing credit and real estate assets. The firm combines deep institutional expertise with an entrepreneurial culture that drives innovation and disciplined growth across multiple market segments. Rithm’s integrated investment platform spans across asset-based finance, lending across residential and commercial real estate, mortgage servicing rights (MSRs) and structured credit. Through subsidiaries such as Newrez, Genesis Capital, Sculptor Capital Management, Crestline Management, and Paramount Group, Rithm has established a unique owner-operator model, capable of sourcing, financing, and actively managing debt and equity investments, to drive value for shareholders and investors.