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:

• GAAP net income of $53.1 million, or $0.09 per diluted common share⁽¹⁾
• Earnings available for distribution of $418.9 million, or $0.74 per diluted common share⁽¹⁾⁽²⁾
• Common dividend of $139.0 million, or $0.25 per common share
• Book value per common share of $12.66⁽¹⁾

Full Year 2025 Financial Highlights:

• GAAP net income of $567.2 million, or $1.04 per diluted common share⁽¹⁾
• Earnings available for distribution of approximately $1.3 billion, or $2.35 per diluted common share⁽¹⁾⁽²⁾
• Common dividend of $542.6 million, or $1.00 per common share

Business Highlights:

• Origination & Servicing:
  • Newrez LLC (“Newrez”), Rithm Capital’s multichannel mortgage origination and servicing platform, posted pre-tax operating income of $249.1 million in Q4’25, excluding the net of hedge mortgage servicing rights (“MSRs”) mark-to-market (“MTM”) loss and other non-operating items of $(216.5) million, down from $314.9 million in Q3’25, excluding the net of hedge MSRs MTM loss and other non-operating items of $(80.8) million.
  • For the full year 2025, Newrez posted pre-tax operating income of $1.1 billion, excluding the net of hedge MSRs MTM loss and other non-operating items of $(467.5) million, up from $966.4 million in 2024, excluding the net of hedge MSRs MTM gain and other non-operating items of $146.4 million.
  • Newrez generated a 17% annualized operating return on equity (“ROE”) on $5.9 billion of equity⁽³⁾ in Q4’25. For the full year 2025, Newrez generated a 20% operating ROE on $5.8 billion of equity⁽³⁾.
  • Total servicing unpaid principal balance (“UPB”) reached $852 billion at year end 2025, an increase of 1% year over year (“YoY”), which includes $256 billion UPB of third-party servicing, an increase of 1% YoY.
  • Origination funded production volume was $18.8 billion in Q4’25, an increase of 15% quarter over quarter (“QoQ”) and 9% YoY, and $63.3 billion for the full year 2025, an increase of 7% YoY.

• Investment Portfolio:
  • Rithm Capital completed three non-qualified mortgage (“NQM”) securitizations in Q4’25 totaling $1.5 billion in UPB. For the full year 2025, Rithm Capital completed eight securitizations totaling $4.0 billion in UPB, achieving a record at Rithm Capital for NQM securitizations for both Q4’25 and for the full year 2025.
  • Acquired $294 million in home improvement loans in Q4’25 under the previously announced forward flow agreement with Upgrade, Inc.

• Residential Transitional Lending:
  • Rithm Capital’s residential transitional lending platform, Genesis Capital LLC (“Genesis Capital”), recorded Q4’25 and full year 2025 origination volume of $1.4 billion and $4.8 billion, respectively, a YoY increase of 17% and 33%, respectively, continuing a series of record volume quarters achieved in 2025.
  • Genesis Capital continued to expand its sponsor base, growing new sponsors by 96 in Q4’25, a 123% increase YoY. New sponsor activity for full year 2025 also expanded to 269, achieving 66% YoY growth.

• Asset Management:
  • Rithm Capital’s alternative asset manager, Sculptor Capital Management Inc. (“Sculptor Capital”), grew to approximately $38 billion of assets under management (“AUM”)⁽⁴⁾ as of December 31, 2025, including gross fundraising inflows of $5.8 billion across the Sculptor platform in 2025, a 16% YoY increase.
  • In Q4’25, Sculptor Capital closed on its latest Real Estate Fund V with $5.5 billion in commitments, making it the largest fund in Sculptor’s real estate fund series and building upon the company’s 20+ year track record.
  • Sculptor Capital also continued its active presence in the collateralized loan obligation markets with 14 transactions for the full year 2025, contributing approximately $1.8 billion in AUM.
  • Rithm Capital completed its previously announced acquisition of Crestline Management, L.P. (“Crestline”), a Fort Worth, TX based alternative asset manager on December 1, 2025. As of September 30, 2025, Crestline managed $18 billion in AUM⁽⁴⁾ across several complementary investment strategies, including direct lending, opportunistic credit, NAV-based lending and insurance.
  • Rithm Capital also completed its previously announced acquisition of Paramount Group, Inc., an owner and operator of Class A office properties in New York and San Francisco, on December 19, 2025.

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”.

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):

Contacts

Investor Relations
212-850-7770

[email protected]

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