NEW YORK--(BUSINESS WIRE)--July 28, 2025--
Rithm Capital Corp. (NYSE: RITM; "Rithm Capital," "Rithm" or the "Company") today reported the following information for the second quarter ended June 30, 2025.
"Rithm's second-quarter results reflect our commitment to sustained performance" said Michael Nierenberg, Chief Executive Officer and President of Rithm. "Our diversified platform continues to deliver steady growth across our core operating businesses, including asset management, origination and servicing. We remain focused on delivering long-term value for our investors and shareholders as we expand our asset management capabilities, guided by a disciplined investment approach, positioned to seize compelling opportunities."
Financial Highlights:
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GAAP net income of $283.9 million, or $0.53 per diluted common
share(1)
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Earnings available for distribution of $291.1 million, or $0.54 per
diluted common share(1)(2)
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Common dividend of $132.6 million, or $0.25 per common share
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Book value per common share of $12.71(1)
Q2 2025 Q1 2025
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Summary Operating Results:
GAAP Net Income per Diluted Common Share(1) $ 0.53 $ 0.07
GAAP Net Income (in millions) $ 283.9 $ 36.5
Non-GAAP Results:
Earnings Available for Distribution per Diluted
Common Share(1)(2) $ 0.54 $ 0.52
Earnings Available for Distribution(2) (in millions) $ 291.1 $ 275.3
Common Dividend:
Common Dividend per Share $ 0.25 $ 0.25
Common Dividend (in millions) $ 132.6 $ 132.5
Business Highlights:
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Origination & Servicing:
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Newrez LLC ("Newrez"), Rithm Capital's multichannel mortgage
origination and servicing platform, posted pre-tax income of
$275.1 million in Q2'25, excluding the mortgage servicing rights
("MSRs") mark-to-market gain and related hedge impact of $29.9
million, down from $270.1 million in Q1'25, excluding the MSR
mark-to-market loss and related hedge impact of $(180.1) million.
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Newrez generated a 19% pre-tax return on equity ("ROE") on $5.8
billion of equity(3)(4). Total servicing unpaid principal balance
("UPB") reached $864 billion, an increase of 7% YoY, which
includes $271 billion UPB of third-party servicing, an increase of
22% YoY.
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Origination funded production volume was $16.3 billion in Q2'25,
an increase of 12% YoY.
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Investment Portfolio:
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Rithm Capital completed a non-qualified mortgage securitization
in the quarter totaling $504 million in UPB.
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Invested $2.2 billion in residential mortgage assets in the
quarter, including non-qualified residential mortgage loans,
residential transition loans and residential mortgage-backed
securities.
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Residential Transitional Lending:
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Rithm Capital's residential transitional lending platform,
Genesis Capital LLC ("Genesis Capital"), recorded pre-tax income
of $26.9 million in Q2'25, excluding portfolio mark-to-market loss
of $(1.8) million, and
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Q2'25 origination volume of $1.2 billion, an increase of 49% YoY,
and a record level for any quarter.
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Genesis Capital continued to expand its sponsor base, growing
sponsors to 195, a 30% increase YoY.
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Asset Management:
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Rithm Capital's alternative asset manager, Sculptor Capital
Management Inc. ("Sculptor Capital"), grew to approximately $36
billion of assets under management ("AUM")(5) as of June 30, 2025,
including gross fundraising inflows of $1.7 billion across the
Sculptor platform during the quarter.
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Sculptor Capital also continued its active presence in the
collateralized loan obligation markets with $525 million of
activity in Q2'25.
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As previously announced, Sculptor Capital held the final closing
for Sculptor's Tactical Credit Fund on April 1, 2025, bringing
total fund AUM to $900 million(5).
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Subsequent to the end of Q2'25, Rithm Capital announced that it
had entered into a strategic partnership with a large
institutional investor to fund the acquisition of $500 million of
residential transition loans, with the potential to upsize the
partnership to $1.5 billion in fundings.
(1) Per diluted common share calculations for both GAAP Net Income and
Earnings Available for Distribution are based on 537,347,700 and
530,599,555 weighted average diluted shares for the quarters ended June
30, 2025 and March 31, 2025, respectively. Per share calculations of
Book Value are based on 530,292,171 common shares outstanding as of
June 30, 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) Excludes full MSR mark-to-market and related hedge impact of $29.9
million.
(4) ROE is calculated based on annualized pre-tax income, excluding MSR
mark-to-market and related hedge adjustment, divided by the average
Origination and Servicing segment ending equity for the respective
period.
(5) AUM is estimated and refers to the assets for which Sculptor provides
investment management, advisory or certain other investment-related
services. This is generally equal to the sum of (i) net asset value of
the open-ended funds or gross asset value of Real Estate funds, (ii)
uncalled capital commitments, (iii) par value of collateralized loan
obligations. AUM includes amounts that are not subject to management
fees, incentive income or other amounts earned on AUM. AUM also
includes amounts that are invested in other Sculptor funds/vehicles.
Our calculation of AUM may differ from the calculations of other asset
managers, and as a result, may not be comparable to similar measures
presented by other asset managers. Our calculations of AUM are not
based on any definition set forth in the governing documents of the
investment funds and are not calculated pursuant to any regulatory
definitions.
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 Monday, July 28, 2025 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 Second Quarter 2025 Earnings Call." In addition, participants are encouraged to pre-register for the conference call at https://dpregister.com/sreg/10201660/ffa323429c.
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 Monday, August 4, 2025 by dialing 1-877-344-7529 (from within the U.S.) or 1-412-317-0088 (from outside of the U.S.); please reference access code "5582814".
Rithm Capital Corp. and Subsidiaries Consolidated Statements of Operations (Unaudited) ($ in thousands, except share and per share data) Three Months Ended ------------------------------ June 30, March 31, 2025 2025 ------------- --------------- 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 (includes realization of cash flows of $(176,680) and $(146,891), respectively) (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 ----------- -----------
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