Rithm Capital Corp. Announces Second Quarter 2026 Results

Rithm Capital Corp. Announces Second Quarter 2026 Results NEW YORK--( BUSINESS WIRE)--Rithm Capital Corp. (NYSE: RITM; “Rithm Capital,” “Rithm” or the “Company”) today reported the following information for the second quarter ended June 30, 2026.

“Rithm’s strong second quarter performance reflects the significant momentum of our owner-operator platform, which continues to prove its depth and durability,” said Michael Nierenberg, CEO of Rithm Capital. “Despite an uncertain macro environment, our asset management business reached $61 billion in AUM on $1.9 billion of gross inflows, while Genesis delivered its strongest origination quarter ever and Newrez posted a 22% annualized operating return on equity (3). With Elecor building strong leasing momentum, every pillar of our platform is performing. As our clients deepen their engagement with Rithm, we are confident in our positioning and the compelling opportunities ahead to deliver for our clients and shareholders.”

Financial Highlights:

Q2 2026

Q1 2026

Summary Operating Results:

GAAP Net Income per Diluted Common Share (1)

0.04

0.12

GAAP Net Income (in millions)

20.2

67.8

Non-GAAP Results:

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

0.60

0.51

Earnings Available for Distribution (2) (in millions)

338.9

289.6

Common Dividend:

Common Dividend per Share

0.25

Common Dividend (in millions)

139.6

Business Highlights:

(1)

Per diluted common share calculations for both GAAP Net Income and Earnings Available for Distribution are based on 568,262,330 and 565,927,074 weighted average diluted shares for the quarters ended June 30, 2026 and March 31, 2026, respectively. The per share calculation of Book Value is based on 558,407,031 common shares outstanding as of June 30, 2026.

(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)

Q2’26 annualized operating ROE is a non-GAAP measure. Q2’26 annualized operating ROE is calculated based on annualized pre-tax operating income of $307.6 million, excluding MSRs MTM loss, net of hedges, and other non-operating items of $(194.5) million, divided by the average Origination and Servicing segment ending equity of $5.7 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 direct lending, real estate and real estate funds, (ii) uncalled capital commitments and (iii) par value of structured credit vehicles (e.g., 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 affiliated funds/vehicles. 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 - Events & Presentations 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, July 28, 2026 at 8:00 A.M. Eastern Time.

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 2026 Earnings Call.” In addition, participants are encouraged to pre-register for the conference call at https://dpregister.com/sreg/10210777/10484ac0dde.

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, August 4, 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 “6182214”.

Rithm Capital Corp. and Subsidiaries

Consolidated Statements of Operations (Unaudited)

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

Three Months Ended

June 30,

2026

March 31,

2026

Revenues

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

614,637

579,288

Change in fair value of MSRs and MSR financing receivables, net of economic hedges (includes realization of cash flows of $(213,874) and $(211,456), respectively)

(392,875

)

(204,229

)

Servicing revenue, net

221,762

375,059

Interest income

474,595

461,877

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

207,006

208,250

Asset management revenue

142,228

106,587

Commercial real estate revenue

182,130

178,257

Other residential-related revenue

54,560

54,680

1,282,281

1,384,710

Expenses

Interest expense and warehouse line fees

464,114

450,063

General, administrative and operating

307,349

316,601

Compensation and benefits

410,477

378,410

Depreciation and amortization

93,547

92,644

1,275,487

1,237,718

Other Income (Loss)

Realized and unrealized gains (losses), net

56,305

(15,154

)

Other income, net

23,787

22,402

80,092

7,248

Income before Income Taxes

86,886

154,240

Income tax expense

18,973

44,762

Net Income

67,913

109,478

Non-controlling interests in income (loss) of consolidated subsidiaries

8,032

(146

)

Redeemable non-controlling interests in income of consolidated subsidiaries

3,590

6,946

Net Income Attributable to Rithm Capital Corp.

56,291

102,678

Dividends on preferred stock

36,098

34,847

Net Income Attributable to Common Stockholders

20,193

67,831

Net Income per Share of Common Stock

Basic

0.04

0.12

Diluted

0.04

0.12

Weighted Average Number of Shares of Common Stock Outstanding

Basic

558,346,329

556,720,287

Diluted

568,262,330

565,927,074

Dividends Declared per Share of Common Stock

0.25

Rithm Capital Corp. and Subsidiaries

Consolidated Balance Sheets (Unaudited)

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

June 30, 2026

March 31, 2026

Assets

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

11,091,483

10,859,933

Government and government-backed securities ($4,887,937 and $5,041,769 at fair value, respectively)

4,912,869

5,066,754

Residential mortgage loans ($4,241,244 and $5,083,003 at fair value, respectively) (A)

4,293,492

5,137,741

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

707,111

805,294

Residential transition loans, at fair value

3,832,312

3,197,813

Residential mortgage loans subject to repurchase

4,308,886

4,427,618

Real estate, net (A)

6,139,789

6,174,559

Insurance company investments, at fair value

1,119,524

1,021,920

Cash, cash equivalents and restricted cash (A)

2,454,708

2,368,374

Servicer advances receivable

2,751,593

2,865,556

Other assets ($3,037,780 and $3,018,569 at fair value, respectively) (A)

5,584,432

5,714,249

Assets of Consolidated Entities (A):

Investments, at fair value and other assets

6,912,669

5,734,733

Total Assets

54,108,868

53,374,544

Liabilities and Equity

Liabilities

Secured financing agreements (A)

13,677,512

13,923,496

Secured notes and bonds payable ($126,140 and $134,319 at fair value, respectively) (A)

14,363,446

14,827,171

Residential mortgage loan repurchase liability

4,308,886

4,427,618

Unsecured notes, net of issuance costs

1,902,627

1,424,635

Interest sensitive insurance contract liabilities

1,143,797

1,069,355

Dividends payable

185,032

179,104

Accrued expenses and other liabilities ($631,854 and $610,185 at fair value, respectively) (A)

3,104,711

3,085,378

Liabilities of Consolidated Entities (A):

Notes payable, at fair value and other liabilities

5,974,137

4,932,492

Total Liabilities

44,660,148

43,869,249

Commitments and Contingencies

Redeemable Non-controlling Interests of Consolidated Subsidiaries

397,306

361,138

Stockholders’ Equity

Preferred stock, $0.01 par value, 100,000,000 shares authorized, 67,564,122 and 67,564,122 issued and outstanding, $1,689,104 and $1,689,104 aggregate liquidation preference, respectively

1,632,915

Common stock, $0.01 par value, 2,000,000,000 shares authorized, 558,407,031 and 557,902,002 issued and outstanding, respectively

5,584

5,579

Additional paid-in capital

7,033,296

6,998,267

Accumulated deficit

(226,449

)

(99,976

)

Accumulated other comprehensive income

71,516

73,292

Stockholders’ Equity in Rithm Capital Corp.

8,516,862

8,610,077

Non-controlling interests in equity of consolidated subsidiaries

534,552

534,080

Total Stockholders’ Equity

9,051,414

9,144,157

Total Liabilities and Equity

54,108,868

53,374,544

(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 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:

In computing earnings available for distribution, the Company excludes the items listed above because management does not consider them representative of the Company's core operating performance or of cash available for distribution to stockholders. These adjustments generally fall into three categories: items that are non-cash in nature; items that, while a part of the Company's recurring operations, are subject to significant variability and are therefore generally limited to a potential indicator of future economic performance; and items that relate to the acquisition or integration of investments and businesses rather than to ongoing 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. 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

June 30,

2026

March 31,

2026

Net income attributable to common stockholders - GAAP

20,193

67,831

Adjustments:

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

181,110

71,844

Other loss, net

14,206

15,633

Depreciation and amortization

87,913

87,280

Non-capitalized transaction-related expenses

21,870

8,330

Deferred taxes

13,636

38,718

Earnings available for distribution - Non-GAAP

338,928

289,636

Net income per diluted share

0.04

0.12

Earnings available for distribution per diluted share

0.60

0.51

Weighted average number of shares of common stock outstanding, diluted

568,262,330

565,927,074

SEGMENT INFORMATION

($ in thousands)

Second Quarter Ended June 30, 2026

Origination

and

Servicing

Residential Transitional

Lending

Asset

Management

Investment

Portfolio

Commercial

Real Estate

Corporate