Company Overview - Rithm Capital Corp. (NYSE:RITM) is an asset manager that specializes in residential mortgage loans, rental properties, and consumer credit services [3]. Investment Sentiment - Jim Cramer expressed concerns about Rithm Capital, labeling it as "too risky" due to the lack of transparency regarding the assets the company holds. He advised against purchasing the stock without a clear understanding of its holdings [1].

Financial Data and Key Metrics Changes - The company reported earnings available for distribution of $2.35 per diluted share, representing a 12% year-over-year growth [13] - GAAP net income for the year was $567 million, with a return on equity of 8% [14] - Book value at the end of the year was reported at $7 billion, equating to $12.60 per common share, an increase from the previous year [15][16] Business Line Data and Key Metrics Changes - The Genesis business produced just under $5 billion in loans, with earnings up 250% since its acquisition in 2022 [8] - Newrez, the mortgage company, saw year-over-year earnings growth of 13% [8] - Sculptor's AUM grew from $34 billion to $38 billion, with gross inflows of $5.8 billion in 2025 [17][26] Market Data and Key Metrics Changes - The company manages over $100 billion in investable assets, with $63 billion in Rithm Asset Management AUM and $53 billion in balance sheet business [11] - The 10-year Treasury yield increased to approximately 4.30%, while mortgage rates have slightly decreased [16] - San Francisco recorded approximately 9 million sq ft of leasing activity, the strongest annual total since 2019, indicating a recovery in the market [37][39] Company Strategy and Development Direction - The company aims to grow prudently by creating alpha and results for clients, focusing on performance-driven asset management [6][11] - The acquisition of Paramount is seen as a transformational move into the commercial real estate space, with a focus on Class A office buildings [30][32] - Investments in technology and marketing are prioritized to enhance customer experience and operational efficiency [9][46] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the recovery in the San Francisco market, particularly driven by AI companies and a return to office momentum [35][39] - The company anticipates a continued steepening of the yield curve, which could benefit its operations [22] - Management remains cautious about competition in the mortgage space, emphasizing a disciplined approach to origination and market share [60][65] Other Important Information - The company has made significant investments in technology, including partnerships with Valon and HomeVision to enhance its servicing and underwriting capabilities [46][47] - The company has a strong focus on maintaining high-quality tenant relationships and enhancing amenities in its real estate portfolio [39] Q&A Session Summary Question: Can you detail the funded volumes, particularly the refi percentage? - The increase in refi volume was driven by market conditions, including a rally in late summer and tighter spreads, leading to expectations of continued growth in the first quarter [58][59] Question: What is the company's view on competition in the mortgage space? - The company acknowledges the competitive nature of the mortgage business but emphasizes its focus on maintaining margins and not engaging in irrational pricing wars [63][65] Question: How did the gain on sale margin improve in the retail channel? - The improvement was attributed to a favorable mix and timing of completions, alongside a focus on maintaining margins in the consumer direct channel [70]

Financial Data and Key Metrics Changes - The company reported earnings available for distribution of $2.35 per diluted share for 2025, representing a 12% year-over-year growth [13] - GAAP net income for Q4 was $53 million, or $0.09 per diluted share, with a 3% return on equity [14] - For the full year, GAAP net income was $567 million, with a return on equity of 8% [14] - Book value at the end of 2025 was reported at $7 billion, or $12.60 per common share, an increase from the previous year [15] Business Line Data and Key Metrics Changes - The Genesis business produced just under $5 billion in loans, with earnings up 250% since its acquisition in 2022 [8] - Newrez, the mortgage company, saw year-over-year earnings growth of 13% [8] - Sculptor's AUM grew from $34 billion to $38 billion in 2025, with gross inflows of $5.8 billion [17][26] Market Data and Key Metrics Changes - The 10-year treasury yield increased to approximately 4.30%, while mortgage rates have slightly decreased [16] - In San Francisco, leasing activity increased by 330% year-over-year, with the market showing signs of recovery [37] - The New York core portfolio's leased occupancy was 92.8%, up 780 basis points year-over-year [34] Company Strategy and Development Direction - The company aims to grow prudently by creating alpha and results for clients, focusing on performance-driven asset management [6] - The acquisition of Paramount is seen as a transformational move into the commercial real estate space, with a focus on Class A office buildings [30][32] - Investments in technology and marketing are prioritized to enhance customer experience and brand [9] Management's Comments on Operating Environment and Future Outlook - Management noted significant geopolitical risks but expressed optimism about the mortgage market's recovery and the potential for increased origination gains [21][22] - The company expects a 10% increase in production for 2026, aligning with market estimates [59] - Management emphasized the importance of maintaining pricing discipline and not chasing market share in a competitive environment [60][65] Other Important Information - The company has made significant investments in technology partnerships, including with Valon Technologies and HomeVision, to enhance operational efficiency [46][47] - The firm has a strong focus on maintaining relationships with tenants and brokers to secure renewals and fill vacancies in its real estate portfolio [39] Q&A Session Summary Question: Can you detail the funded volumes, particularly the refi percentage? - The increase in refi volume was driven by market conditions, with a notable rally in late summer and September leading to higher production [58] Question: What are the expectations for overall volumes in Q1? - The forecast for 2026 is expected to be up around 10%, with continued improvements in service and tools for homeowners [59] Question: Can you discuss competition in the mortgage space? - The mortgage business remains competitive, with some players being aggressive, but the company focuses on maintaining margins and not engaging in irrational pricing [63][65] Question: How did the retail channel perform in terms of gain on sale margin? - The improvement in margins was influenced by a mix shift and timing of MSR recapture, with a focus on maintaining overall margins [70] Question: How did wholesale volumes perform despite competition? - The company maintained a disciplined approach to margins while focusing on non-agency production, which has been a key growth area [72]

Financial Data and Key Metrics Changes - The company reported earnings available for distribution of $2.35 per diluted share for 2025, representing a 12% year-over-year growth [12] - GAAP net income for Q4 was $53 million, or $0.09 per diluted share, with a 3% return on equity [13] - For the full year, GAAP net income was $567 million, with a return on equity of 8% [13] - Book value at the end of 2025 was reported at $7 billion, or $12.60 per common share, an increase from the previous year [14] Business Line Data and Key Metrics Changes - The Genesis business produced just under $5 billion in loans, with earnings up 250% since its acquisition in 2022 [6] - Newrez, the mortgage company, saw year-over-year earnings growth of 13% [6] - Sculptor's AUM grew from $34 billion to $38 billion in 2025, with gross inflows of $5.8 billion [15][24] Market Data and Key Metrics Changes - The 10-year treasury yield increased to approximately 4.30%, while mortgage rates have slightly decreased [14] - In San Francisco, leasing activity increased by 330% year-over-year, reflecting a recovery in the market [36] - The New York core portfolio's leased occupancy was 92.8%, up 780 basis points year-over-year [34] Company Strategy and Development Direction - The company aims to grow prudently by creating alpha and results for clients, focusing on performance-driven asset management [5] - The acquisition of Paramount is seen as a strategic move to capitalize on dislocated office assets, with a focus on Class A office buildings in major cities [29] - The company plans to enhance its technology stack and marketing efforts to improve customer experience and brand [7] Management's Comments on Operating Environment and Future Outlook - Management noted significant geopolitical risks but expressed optimism about the mortgage market, anticipating increased production due to tighter mortgage basis [20] - The company expects a 10% increase in overall volumes for 2026, driven by improved service and tools for homeowners [59] - Management highlighted the importance of maintaining discipline in pricing and origination strategies amidst competitive pressures [62] Other Important Information - The company has made significant investments in technology partnerships, including with Valon Technologies and HomeVision, to enhance operational efficiency [45] - The firm ended the year with $1.7 billion in cash and liquidity after funding various business operations [15] Q&A Session Summary Question: Can you detail the funded volumes, particularly the refi percentage? - Management indicated that the increase in refi volume was a reflection of market conditions, particularly a rally in late summer and September, leading to higher production in January [58] Question: What are the expectations for production in 2026? - The company forecasts a 10% increase in production for 2026, aligning with market estimates, and aims to improve market share through enhanced service [59] Question: How does the company view competition in the mortgage space? - Management acknowledged the competitive nature of the mortgage business but emphasized their focus on maintaining margins and not engaging in irrational pricing wars [62]

Rithm Capital Quarterly Supplement Q4 2025 Q4 2025 Quarterly Supplement Will/EH reviewed Will reviewed Not reviewed Disclaimers IN GENERAL. This disclaimer applies to this document and the verbal or written comments of any person presenting it. This document, taken together with any such verbal or written comments, is referred to herein as the "Presentation." FORWARD-LOOKING STATEMENTS. Certain statements regarding Rithm Capital Corp. (together with its subsidiaries, "Rithm," "Rithm Capital," the "Company" ...

Financial 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].

(1) Full Year 2025 Financial Highlights: (1) | Q4 2025 | | Q3 2025 FY 2025 FY 2024 | | | | | --- | --- | --- | --- | --- | --- | | Summary Operating Results: | | | | | | | (1) | | | | | | | | $ | 0.09 | $ | 0.35 $ 1.04 | $ 1.67 | | GAAP Net Income per Diluted Common Share | | | | | | | GAAP Net Income (in millions) | $ | 53.1 | $ | 193.7 $ 567.2 $ 835.0 | | | Non-GAAP Results: | | | | | | | (1)(2) | | | | | | | | $ | 0.74 | $ | 0.54 $ 2.35 | $ 2.10 | | Earnings Available for Distribution per Diluted Common ...

Core Viewpoint - Rithm Capital Corp. is a real estate investment trust (REIT) that benefits from tax advantages and operates in asset management and servicing, which are crucial to its business model [1] Price Target Trends - Over the past year, Rithm Capital has seen a positive trend in its consensus price target, with the average price target rising from $14.75 a year ago to $16 last month, indicating positive sentiment among analysts [2] - The average price target for the last quarter was $15.17, reflecting an increase from the previous quarter, suggesting growing confidence in the company's performance or market conditions [2] - Raymond James has set a lower price target of $12.50 due to concerns over shaky servicing revenue, which could impact earnings [2] Analyst Sentiment - Analysts have become more optimistic about Rithm Capital's prospects, as indicated by the upward trend in the consensus price target [3] - The upcoming financial results for the fourth quarter and full year of 2025, scheduled for release on February 3, 2026, are critical for assessing the company's future growth and stability [3] - Broader economic indicators and company performance should be considered, especially in comparison to 17 other mREIT peers [3]

The upcoming report from Rithm (RITM) is expected to reveal quarterly earnings of $0.55 per share, indicating a decline of 8.3% compared to the year-ago period. Analysts forecast revenues of $1.26 billion, representing a decline of 40% year over year.Over the last 30 days, there has been no revision in the consensus EPS estimate for the quarter. This signifies the covering analysts' collective reconsideration of their initial forecasts over the course of this timeframe.Ahead of a company's earnings disclosu ...

Core Viewpoint - The article discusses the evaluation of new fixed-income financial products, specifically focusing on Rithm Capital's latest listed product and the methodologies used for IPO evaluation [1]. Group 1: Company Overview - Rithm Capital is highlighted as a key player in the fixed-income market, with a focus on identifying mispriced investments in fixed-income and closed-end funds [1]. - The company is led by Denislav Iliev, who has over 15 years of experience in day trading and manages a team of 40 analysts [1]. Group 2: Investment Strategies - The investment group Trade With Beta, led by Denislav Iliev, offers features such as frequent picks for mispriced preferred stocks and baby bonds, weekly reviews of over 1200 equities, IPO previews, and hedging strategies [1]. - The service includes an actively managed portfolio and a chat room for discussions among sophisticated traders and investors [1].