Rithm Capital Corp. Announces Third Quarter 2026 Results

Rithm Capital Corp. Announces Third 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 third quarter ended September 30, 2026.

“Rithm’s strong third quarter results reflect disciplined execution across every part of our platform,” said Michael Nierenberg, CEO of Rithm Capital. “We continued to scale our asset management business, closing new funds and growing a more durable, fee-based earnings stream, while our operating companies delivered: Newrez generated a 24% annualized operating return on equity (3), Genesis reached year-to-date originations of $5.0 billion, and Elecor expanded its third-party capital base by executing a joint venture for a core NYC property, while signing 320,000 square feet of new leases. Our businesses continue to perform, and the strength and breadth of our platform position us well as we enter the fourth quarter with significant momentum and opportunity ahead for our shareholders, clients, and partners.”

Financial Highlights:

Q3 2026

Q2 2026

Summary Operating Results:

GAAP Net Income per Diluted Common Share (1)

0.38

0.04

GAAP Net Income (in millions)

217.1

20.2

Non-GAAP Results:

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

0.55

0.60

Earnings Available for Distribution (2) (in millions)

315.3

338.9

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 572,817,609 and 568,262,330 weighted average diluted shares for the quarters ended September 30, 2026 and June 30, 2026, respectively. The per share calculation of Book Value is based on 558,407,031 common shares outstanding as of September 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)

Q3’26 annualized operating ROE is a non-GAAP measure. It is calculated by annualizing Q3’26 pre-tax operating income of $329.7 million (which excludes MSRs MTM gain, net of hedges, and other non-operating items of $275.2 million) dividing by average Origination and Servicing segment ending equity of $5.5 billion.

(4)

AUM is estimated and refers to the value of assets for which Rithm Capital and its affiliates provide discretionary investment management, advisory services or real estate asset management. 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. Effective July 1, 2026, Rithm Capital revised its AUM calculation methodology to include assets subject to real estate asset management services and exclude certain other assets. Prior periods have been conformed, with no impact on reported AUM.

ADDITIONAL INFORMATION

For additional information that management believes to be useful for investors, please refer to the latest presentation posted on the Shareholders - 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 Friday, October 23, 2026 at 8:00 A.M. Eastern Time to review the Company’s results for the quarter ended September 30, 2026.

The webcast of the conference call may be accessed at https://events.q4inc.com/attendee/976436235. Please allow extra time prior to the call to visit the website and download any software required to listen to the internet broadcast. In addition, participants are encouraged to pre-register for the conference call at https://events.q4inc.com/analyst/976436235?pwd=0lyfjeVL.

An audio replay of the conference call will also be available two hours following the call’s completion through 11:59 P.M. Eastern Time on Friday, October 22, 2027, in the Events & Presentations section of the Company’s website or using the same link as the webcast at https://events.q4inc.com/attendee/976436235.

Rithm Capital Corp. and Subsidiaries

Consolidated Statements of Operations (Unaudited)

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

Three Months Ended

September 30,

2026

June 30,

2026

Revenues

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

595,372

614,637

Change in fair value of MSRs and MSR financing receivables, net of economic hedges (includes realization of cash flows of $(186,553) and $(213,874), respectively)

121,277

(392,875

)

Servicing revenue, net

716,649

221,762

Interest income

479,592

474,595

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

214,157

207,006

Asset management revenue

107,345

142,228

Commercial real estate revenue

187,041

182,130

Other residential-related revenue

51,638

54,560

1,756,422

1,282,281

Expenses

Interest expense and warehouse line fees

480,834

464,114

General, administrative and operating

320,862

307,349

Compensation and benefits

382,366

410,477

Depreciation and amortization

92,428

93,547

1,276,490

1,275,487

Other Income (Loss)

Realized and unrealized gains, net

19,746

56,305

Other income, net

19,415

23,787

39,161

80,092

Income before Income Taxes

519,093

86,886

Income tax expense

257,819

18,973

Net Income

261,274

67,913

Non-controlling interests in income of consolidated subsidiaries

3,733

8,032

Redeemable non-controlling interests in income of consolidated subsidiaries

4,256

3,590

Net Income Attributable to Rithm Capital Corp.

253,285

56,291

Dividends on preferred stock

36,159

36,098

Net Income Attributable to Common Stockholders

217,126

20,193

Net Income per Share of Common Stock

Basic

0.39

0.04

Diluted

0.38

0.04

Weighted Average Number of Shares of Common Stock Outstanding

Basic

558,407,031

558,346,329

Diluted

572,817,609

568,262,330

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)

September 30, 2026

June 30, 2026

Assets

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

12,187,706

11,091,483

Government and government-backed securities ($4,487,253 and $4,887,937 at fair value, respectively)

4,512,203

4,912,869

Residential mortgage loans ($4,660,524 and $4,241,244 at fair value, respectively) (A)

4,707,366

4,293,492

Consumer loans, at fair value (A)

826,960

707,111

Residential transition loans, at fair value

3,890,850

3,832,312

Residential mortgage loans subject to repurchase

4,594,747

4,308,886

Real estate, net (A)

4,900,278

6,139,789

Insurance company investments, at fair value

1,198,971

1,119,524

Cash, cash equivalents and restricted cash (A)

2,449,322

2,454,708

Servicer advances receivable

2,791,248

2,751,593

Other assets ($3,146,478 and $3,037,780 at fair value, respectively) (A)

6,029,271

5,584,432

Assets of Consolidated Entities (A):

Investments, at fair value and other assets

8,572,408

6,912,669

Total Assets

56,661,330

54,108,868

Liabilities and Equity

Liabilities

Secured financing agreements (A)

14,235,647

13,677,512

Secured notes and bonds payable ($119,148 and $126,140 at fair value, respectively) (A)

14,011,438

14,363,446

Residential mortgage loan repurchase liability

4,594,747

4,308,886

Unsecured notes, net of issuance costs

1,907,153

1,902,627

Interest sensitive insurance contract liabilities

1,206,009

1,143,797

Dividends payable

190,451

185,032

Accrued expenses and other liabilities ($662,232 and $631,854 at fair value, respectively) (A)

3,484,410

3,104,711

Liabilities of Consolidated Entities (A):

Notes payable, at fair value and other liabilities

7,494,519

5,974,137

Total Liabilities

47,124,374

44,660,148

Commitments and Contingencies

Redeemable Non-controlling Interests of Consolidated Subsidiaries

395,599

397,306

Stockholders’ Equity

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

1,632,915

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

5,584

Additional paid-in capital

7,068,996

7,033,296

Accumulated deficit

(154,522

)

(226,449

)

Accumulated other comprehensive income

67,089

71,516

Stockholders’ Equity in Rithm Capital Corp.

8,620,062

8,516,862

Non-controlling interests in equity of consolidated subsidiaries

521,295

534,552

Total Stockholders’ Equity

9,141,357

9,051,414

Total Liabilities and Equity

56,661,330

54,108,868

(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

September 30,

2026

June 30,

2026

Net income attributable to common stockholders - GAAP

217,126

20,193

Adjustments:

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

(269,759

)

181,110

Other loss, net

6,623

14,206

Depreciation and amortization

86,284

87,913

Non-capitalized transaction-related expenses

20,302

21,870

Deferred taxes

254,722

13,636

Earnings available for distribution - Non-GAAP

315,298

338,928

Net income per diluted share

0.38

0.04

Earnings available for distribution per diluted share

0.55

0.60

Weighted average number of shares of common stock outstanding, diluted

572,817,609

568,262,330

SEGMENT INFORMATION

($ in thousands)

Third Quarter Ended September 30, 2026

Origination and Servicing

Residential Transitional Lending

Asset Management

Investment Portfolio

Commercial Real Estate

Corporate Category

Total

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

595,372

—

595,372

Change in fair value of MSRs and MSR financing receivables, net of economic hedges (includes realization of cash flows of $(186,553))

121,277

—

121,277

Servicing revenue, net

716,649

—

716,649

Interest income

259,545

103,594

39,736

71,999

2,065

2,653

479,592

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

203,793

—

10,364

—

214,157

Management fees

—

91,637

—

1,322

—

92,959

Incentive fees

—

14,386

—

14,386

Asset management revenue

—

106,023

—

1,322

—

107,345

Commercial real estate revenue

—

187,041

—

187,041

Other residential-related revenue

25,865

—

25,773

—

51,638

Total Revenue

1,205,852

103,594

145,759

108,136

190,428

2,653

1,756,422

Interest expense and warehouse line fees

230,843

50,134

29,015

65,440

65,751

39,651

480,834

Other segment expenses

148,472

7,256

32,997

32,440

84,960

14,737

320,862

Compensation and benefits

213,618

23,489

123,558

5,054

6,208

10,439

382,366

Depreciation and amortization

4,852

2,078

11,738

5,743

68,097

(80

)

92,428

Total Operating Expenses

597,785

82,957

197,308

108,677

225,016

64,747

1,276,490

Realized and unrealized gains (losses), net

—

2,581

(23,648

)

13,598

27,215

—

19,746

Other income (loss), net

(3,251

)

1,071

6,414

11,007

1,931

2,243

19,415

Total Other Income (Loss)

(3,251

)

3,652

(17,234

)

24,605

29,146

2,243

39,161

Income (Loss) before Income Taxes

604,816

24,289

(68,783

)

24,064

(5,442

)

(59,851

)

519,093

Total Assets

29,209,893

5,415,188

4,453,860

12,232,274

4,873,489

476,626

56,661,330

Stockholders' Equity in Rithm Capital Corp.

5,405,211

1,019,643

1,278,905

1,632,030

1,128,787

(1,844,514

)

8,620,062

Second Quarter Ended June 30, 2026

Origination and Servicing

Residential Transitional Lending

Asset Management

Investment Portfolio

Commercial Real Estate

Corporate Category

Total

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

614,637

—

614,637

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

(392,875

)

—

(392,875

)

Servicing revenue, net

221,762

—

221,762

Interest income

252,496

103,587

28,208

85,428

2,185

2,691

474,595

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

204,731

—

2,275

—

207,006

Management fees

—

88,789

—

1,696

—

90,485

Incentive fees

—

51,743

—

51,743

Asset management revenue

—

140,532

—

1,696

—

142,228

Commercial real estate revenue

—

182,130

—

182,130

Other residential-related revenue

25,222

—

29,338

—

54,560

Total Revenue

704,211

103,587

168,740

117,041

186,011

2,691

1,282,281

Interest expense and warehouse line fees

225,634

43,742

23,231

70,007

61,836

39,664

464,114

Other segment expenses

146,211

5,469

33,082

31,711

78,640

12,236

307,349

Compensation and benefits

214,708

22,740

130,211

6,688

11,474

24,656

410,477

Depreciation and amortization

5,474

1,966

12,040

7,184

66,803

93,547

Total Operating Expenses

592,027

73,917

198,564

115,590

218,753

76,636

1,275,487

Realized and unrealized gains, net

7,031

26,448

22,751

—

56,305

Other income (loss), net

879

314

17,404

7,295

(2,114

)

23,787

Total Other Income (Loss)

936

7,345

43,852

30,046

(2,096

)

80,092

Income (Loss) before Income Taxes

113,120

37,015

14,028

31,497

(34,838

)

(73,936

)

86,886

Total Assets

26,890,344

5,060,530

4,371,258

11,531,136

5,883,187

372,413

54,108,868

Stockholders' Equity in Rithm Capital Corp.

5,492,541

1,017,409

1,319,373

1,582,256

1,218,777

(2,113,494

)

8,516,862

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. (NYSE: RITM) is a New York-based global alternative asset manager with deep experience across credit, real estate, and other alternative strategies. The firm pairs institutional expertise with an entrepreneurial culture that looks for opportunity early and pursues it with discipline. Rithm combines an asset management platform with a family of operating companies, giving it direct insight into many of the markets in which it invests. That owner-operator approach is built to deliver enduring performance for clients, partners, and shareholders. For more information, visit www.rithmcap.com.