Key Takeaways RITM's Asset Management AUM reached $61 billion in Q2, up from $33 billion in 2023.Newrez's Q2 pre-tax operating income reached $307.6 million, while operating ROE improved to 22%.RITM had $2.4 billion of liquidity versus $40.2 billion of debt as of June 30, 2026.
Rithm Capital Corp. (RITM - Free Report) has gained 12.2% over the past month, sharpening the focus on whether operating momentum can keep supporting the rebound. RITM shares have outperformed the industry, which has gained 0.6% over the same period. The stock has also outperformed its peers, Annaly Capital Management, Inc. (NLY - Free Report) and PennyMac Mortgage Investment Trust (PMT - Free Report) , over the same period.
Price Performance
Image Source: Zacks Investment Research
Growth across asset management, Newrez and Genesis provides support for RITM’s operating performance. However, higher expenses, limited liquidity and mortgage-servicing volatility remain key risks. The recent share-price strength has yet to be matched by a meaningful improvement in earnings estimates.
RITM's One-Month Rally Meets a Mixed BackdropRITM's four-week gain of 12.2% contrasts with a 17.1% decline over the past 52 weeks. The Zacks Consensus Estimate for the current fiscal year has also moved 0.45% lower over the past four weeks, showing that price momentum has strengthened while the earnings-revision trend remains soft.
Mortgage-focused peers face similar rate sensitivity. Annaly reported a $109.4 billion portfolio in the second quarter of 2026, including a large Agency mortgage portfolio, while PennyMac invests primarily in residential mortgage loans and mortgage-related assets, including mortgage servicing rights.
Rithm's Fee-Based Growth Strengthens the StoryRithm’s Asset Management ended the second quarter with about $61 billion in assets under management (AUM), up from $33 billion in 2023. Rithm accelerated growth of its alternative asset management business by completing the acquisition of Sculptor Capital Management in November 2023.
The acquisition of Crestline in December 2025 added about $18 billion of AUM, while the platform has generated $10 billion of organic growth since 2023. Its asset management revenues increased 48.4% year over year to roughly $141 million, helped by higher incentive fee income.
AUM Growth Trend
Image Source: Rithm Capital Corp.
A larger fee-based contribution can broaden Rithm's earnings mix beyond balance-sheet-driven mortgage income. That shift could improve earnings durability over time if fundraising and investment performance continue to support asset growth.
RITM's Newrez Efficiency Gains Add SupportNewrez delivered $307.6 million in second-quarter pre-tax operating income, excluding mark-to-market and other non-operating items. Its annualized operating return on equity (ROE) improved to 22% from 19% in the first quarter, reflecting continued strength across the platform. Meanwhile, servicing unpaid principal balance increased to $865.2 billion.
Technology initiatives offer another efficiency lever. Management expects initiatives, HomeVision and ValonOS workflows to reduce direct fulfillment cost per loan to $787 in 2026 from $886 in 2025 and direct servicing cost per loan to $93 from $118.
Rithm Still Faces Liquidity and MSR RisksRithm had $2.4 billion of liquidity as of June 30, 2026, compared with $40.2 billion of total debt. The gap limits financial flexibility during periods of market stress, particularly as expenses remain elevated following platform expansion.
Mortgage servicing rights also create earnings volatility. In the second quarter of 2026, Rithm recorded a $392.9 million negative change in the fair value of mortgage servicing rights and related financing receivables, net of economic hedges.
RITM's Valuation Could Support Further UpsideRITM trades at 4.62X forward 12-month earnings, well below the 17.03X multiple for its Zacks sub-industry. That discount provides a valuation cushion and leaves room for multiple expansion if operating gains prove durable.
Price-to-Earnings F12M
Image Source: Zacks Investment Research
Rithm also trades below its five-year median forward P/E of 6.1X, indicating a discount to its historical valuation. It is also inexpensive compared with Annaly and PennyMac, which trade at forward 12-month P/E multiples of 7.59X and 7.26X, respectively.
The improving earnings outlook further supports the valuation case. The Zacks Consensus Estimate for 2026 and 2027 earnings has been revised upward over the past week, suggesting analysts are becoming more constructive as collections and portfolio revenues improve.
Estimate Revision Trend
Image Source: Zacks Investment Research
RITM's Signals Temper the Momentum CaseRITM's recent rally has more operating support than price action alone suggests, but the earnings-revision and balance-sheet signals remain mixed. Asset management growth and Newrez efficiency gains are constructive, while liquidity and mortgage-servicing volatility keep the near-term case balanced.
The stock currently carries a Zacks Rank #3 (Hold), which is consistent with a neutral near-term stance. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
The Value Score of B supports RITM's valuation case, but the Growth Score of F, Momentum Score of F and VGM Score of D show why caution still matters. The combination suggests RITM's case is strongest on valuation and operating momentum rather than a broad-based growth and momentum profile, making continued execution and balance-sheet discipline central to sustaining the current setup.
Rithm Capital má nízké ocenění, ale rostoucí náklady a vysoký dluh zůstávají rizikem. Ve 2Q 2026 investovatelná aktiva přesáhla 100 miliard USD, zatímco provozní náklady vzrostly o 34 % meziročně na 1,28 miliardy USD.
Key Takeaways RITM trades at 4.62X forward earnings, well below its 17.03X Zacks sub-industry multiple.RITM's investable assets exceeded $100 billion in Q2 2026, including $61 billion in AUMOperating expenses rose 34% y/y, while liquidity stood at $2.4 billion against $40.2 billion of debt.
Rithm Capital Corp. (RITM - Free Report) presents a balanced investment case. The stock appears inexpensive, while the company is broadening its earnings base through mortgage operations, residential lending and asset management.
However, higher expenses, limited liquidity and mortgage servicing rights exposure could constrain the upside. These risks keep the risk-reward profile balanced and suggest that the low valuation alone is not a sufficient bullish signal.
RITM's Valuation Looks Cheap on Forward EarningsRITM trades at 4.62X forward 12-month earnings, well below the 17.03X multiple for its Zacks sub-industry. The stock also trades below its five-year median forward multiple of 6.12X, reinforcing the valuation argument.
Price-to-Earnings F12M
Image Source: Zacks Investment Research
Annaly Capital Management, Inc. (NLY - Free Report) and Ellington Financial Inc. (EFC - Free Report) are part of the broader mortgage finance peer group, offering investors additional names for comparison. At present, NLY holds a forward 12-month P/E ratio of 7.59X, while EFC's forward 12-month P/E ratio stands at 6.79X.
That relative discount supports the value case and is consistent with RITM’s Value Score of B. Still, the low multiple could persist as investors remain cautious about leverage, higher costs and earnings volatility.
Rithm's Growth Engines Are BroadeningRithm has built a wider platform around Newrez, Genesis, Sculptor and Rithm Asset Management. Investable assets exceeded $100 billion in the second quarter of 2026, including $61 billion of assets under management (AUM).
The Crestline and Paramount acquisitions have strengthened its fee-based asset management capabilities and expanded its commercial real estate exposure. A larger fee-based business could reduce reliance on balance-sheet-driven mortgage income, although sustained growth will depend on investment performance and continued capital formation.
RITM's Expense and Liquidity Risks Stay ElevatedRithm’s cost structure has come under pressure as it continues to expand its platform. Total operating expenses rose 34% year over year to $1.28 billion in the second quarter. Higher compensation, benefits and integration costs could limit margin expansion if revenue growth does not keep pace.
Liquidity remains another constraint. Rithm had $2.4 billion of total liquidity against $40.2 billion of total debt as of June 30, 2026. This relatively limited liquidity buffer could reduce financial flexibility during periods of market stress or heightened volatility.
Rithm's Earnings Outlook Remains MixedThe Zacks Consensus Estimate points to a mixed earnings outlook. Earnings are projected to decline 3.8% year over year in 2026 before increasing 1.18% in 2027. However, estimates for both years have been revised upward over the past week, suggesting improving analyst sentiment.
Estimate Revision Trend
Image Source: Zacks Investment Research
Sales expectations are more encouraging. The Zacks Consensus Estimate for sales is pegged at $5.84 billion for 2026 and $6.34 billion for 2027, implying year-over-year growth of 33.21% and 8.66%, respectively.
Revenue Estimates
Image Source: Zacks Investment Research
RITM's Risk-Reward Case Calls for SelectivityRithm's trailing 12-month return on equity (ROE) stands at 19.86%, well above the industry's 5.70%, while its dividend yield is 9.65%. The strong profitability and income profile, along with a growing fee-based business, could appeal to value and income-oriented investors despite balance-sheet concerns.
Dividend Yield
Image Source: Zacks Investment Research
Peer context also highlights Rithm’s income profile. Annaly focuses on residential mortgage finance and offers a 12.83% dividend yield, while Ellington Financial invests across mortgage loans, mortgage-backed securities, consumer loans and other credit assets and offers an 11.4% yield. Rithm’s broader platform provides multiple earnings engines, although mortgage servicing rights volatility, rate sensitivity and higher costs remain key risks.
RITM's Mixed Signals Favor a Measured ViewRITM's inexpensive valuation and diversified operating platforms provide support, but rising expenses, heavy debt and mortgage servicing rights volatility argue against treating the stock as a straightforward bargain. The setup favors patience and selectivity rather than an aggressive buy decision based on valuation alone.
RITM currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. The stock has a Value Score of B, but its Growth Score of F, Momentum Score of F and VGM Score of D point to weaker growth and price-trend characteristics. This combination highlights RITM’s attractive valuation while reinforcing that the bullish case depends on improving earnings trends and continued execution.
Investor interest has been reflected in the stock’s recent performance. Over the past three months, RITM shares have gained 14%, against the industry’s decline of 0.1%. While the recent strength supports the value case, the stock’s mixed scores and elevated balance-sheet risks suggest that further gains will require sustained fundamental improvement.
Price Performance
Image Source: Zacks Investment Research
Rithm Capital udržel čtvrtletní dividendu 25 centů na akcii; zisk k rozdělení ve 2Q 2026 byl 60 centů na akcii. Firma ale čelí vyšším nákladům a má likviditu 2,4 miliardy USD proti dluhu 40,2 miliardy USD.
Key Takeaways RITM's 60-cent Q2 EAD per share more than doubled its 25-cent quarterly dividend.Asset management revenues rose 48.4% y/y to $141 million, with AUM reaching roughly $61 billion.RITM's $2.4 billion liquidity versus $40.2 billion debt raises concerns over dividend flexibility. Rithm Capital Corp. (RITM - Free Report) recently maintained its quarterly cash dividend at 25 cents per share, supporting a dividend yield of roughly 9.6%, well above the industry average of 1.6%. The significantly higher yield strengthens the stock’s income appeal.
Dividend Yield
Image Source: Zacks Investment Research
However, higher costs, elevated debt and mortgage-related volatility could pressure earnings and liquidity. For income-focused investors, the key question is whether RITM can sustain its attractive payout while managing these pressures.
RITM's Dividend Has Strong Earnings CoverageRithm’s earnings available for distribution have covered common dividends for 27 consecutive quarters, underscoring the consistency of its payout coverage.
In the second quarter of 2026, earnings available for distribution (EAD) were 60 cents per share, more than double the 25-cent quarterly dividend. The 35-cent per-share cushion provides solid coverage, despite lower GAAP earnings due to fair-value movements and other items.
Rithm's Fee-Based Growth Could Support the PayoutAsset management is becoming a larger contributor to Rithm’s earnings mix. Second-quarter asset management revenues increased 48.4% year over year to about $141 million, while assets under management (AUM) reached roughly $61 billion.
A larger fee-based business can broaden earnings sources beyond balance-sheet investing and mortgage activity. Continued asset growth and fee generation could add support for distributions, although the pace will depend on investment performance and capital formation.
RITM's Higher Costs Could Pressure Dividend FlexibilityRithm’s total operating expenses increased 34% year over year to $1.28 billion in the second quarter of 2026. The cost base has expanded following the Crestline and Paramount/Elecor acquisitions, while compensation, benefits and integration costs remain elevated.
Higher expenses could weigh on dividend flexibility. If revenue growth fails to keep pace with the expanded cost base, less excess earnings may be available to absorb market volatility or support shareholder distributions.
Rithm's Liquidity Position Adds a Key RiskRithm had about $2.4 billion of liquidity against $40.2 billion of total debt as of June 30, 2026. This liquidity-to-debt gap makes steady cash generation and continued access to financing important, particularly during periods of market volatility or economic stress.
While Rithm’s leverage supports a diversified operating platform, its liquidity position appears less robust than those of peers, Annaly Capital Management, Inc. (NLY - Free Report) and AGNC Investment Corp. (AGNC - Free Report) . NLY had $9.6 billion in assets available for financing as of June 30, 2026, including $5.5 billion in cash and unencumbered Agency MBS, while AGNC had $7.5 billion of liquidity. These stronger liquidity cushions provide greater balance-sheet flexibility during market stress, making Rithm’s sizable debt load a key risk even if distributable earnings remain sufficient to cover the dividend.
RITM's MSR Exposure Could Make Coverage VolatileNearly 20.5% of Rithm’s total assets were tied to mortgage servicing rights and related financing receivables as of June 30, 2026. The second quarter also included a $392.9 million negative fair-value adjustment on these assets, net of economic hedges.
This concentration leaves earnings exposed to interest-rate movements, mortgage spreads and prepayment trends, which can cause significant quarter-to-quarter swings. Annaly, with exposure to mortgage servicing rights, and AGNC Investment, focused primarily on Agency residential mortgage-backed securities, face similar sensitivity to changing market conditions. For Rithm, such volatility could make consistent earnings coverage of the dividend more challenging when conditions deteriorate.
RITM's Signals Keep the Income Case BalancedThe bottom line remains balanced. Rithm’s dividend is well covered by current distributable earnings, but rising costs, limited liquidity relative to debt and mortgage-servicing rights volatility remain key offsets. The 9.6% yield is attractive, but its sustainability depends on Rithm maintaining earnings power across its capital-intensive businesses.
RITM currently carries a Zacks Rank #3 (Hold), pointing to a neutral near-term earnings outlook. That fits a setup in which the dividend remains well supported, but investors may still want confirmation that earnings and liquidity can withstand market pressures. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Over the past three months, RITM shares have gained 14% against the industry’s 0.1% decline.
Price Performance
Image Source: Zacks Investment Research
Its Value Score of B supports the valuation and income profile, while its Growth Score of F and Momentum Score of F point to weaker growth and price-trend characteristics. The VGM Score of D keeps the broader style picture cautious, reinforcing the need to weigh payout strength against these offsets.
RITM-C má výnos kolem 9,16 %, ale je podle autora příliš drahá vůči RITM-A a RITM-B. Obchoduje se zhruba na 101,3 % cílové nákupní ceny, proto zůstává jen na držení.
During the last few months, we've written articles on three of Rithm Capital's (RITM) preferred shares on Seeking Alpha. We discussed:
RITM-D (RITM.PR.D) as one of our favorite fixed-to-reset preferred shares.
RITM-B (RITM.PR.B) when it dipped into our buy range with an attractive stripped yield.
RITM-A (RITM.PR.A) because of its high floating spread and stripped yield.
That Raises a Question Why aren’t we talking about RITM-C (RITM.PR.C)?
The answer isn't that RITM-C is a terrible preferred share. It simply has the habit of competing against three other preferred shares that usually offer investors a better deal. Those other three preferred shares all come from the same company.
Today, RITM-C is a good example of why relative valuation plays a major role in the preferred share space.
Current Valuation The REIT Forum
Our current rating on RITM-C is a hold.
We don't have any major concerns when it comes to Rithm Capital's preferred shares. I think they're a reasonable investment for many investors, if the price is right. If you’re not looking for securities that offer a big dividend yield, they're probably not a great fit for you. If you're looking for that kind of income, then I think any of these shares could work if the valuation is right. Consequently, we’re going to focus more on relative values than on evaluating the share by itself. If you’re looking for analysis of the underlying company, Seeking Alpha has many articles on RITM. Scott Kennedy also provides his research on RITM on The REIT Forum. The question is which Rithm preferred share has the best value. That's an important distinction.
Too many investors become attached to a specific ticker or a specific yield threshold. We are attached to which preferred share offers the best relative value. The ticker doesn't care if you like it. In the interest of transparency, I recently posted my latest 100 trades in preferred shares and baby bonds. I have placed a few more trades since then, but it gives you a clean look at our record with the securities.
As of writing this article, RITM-C trades at roughly 101.3% of our buy target, making it the most expensive preferred share from RITM in our view. That isn't enough by itself to make RITM-C a poor choice. However, once you consider the other three preferred shares, RITM-C is a tiny bit behind.
Same Company, Different Yields The REIT Forum
One of the nice things about covering preferred shares from the same company is that you don’t need to compare the issuers to each other. Credit quality is the same. Capital structure is the same. The management team is the same. With all those being the same, investors can focus more on pricing and the structure of the preferred share.
As of writing this article, RITM-C has:
A stripped yield of about 9.16%
A floating yield on price of about 9.27%
Are those good yields? Yes.
However, there starts to be a valuation problem when RITM-B currently offers a stripped yield around 9.65% and RITM-A has a stripped yield around 9.8%. For RITM-A, the negative yield to call becomes a problem, but it’s still close to our buy range.
That's roughly 50 basis points of additional income for the same underlying credit risk. RITM-A has a higher stripped yield at around 9.8%, but the negative yield to call is a problem. However, it’s still close to our buy range (closer than RITM-C).
Income investors frequently focus too much on whether or not the yield is “high.” We think it's more useful to ask what risks come with the yield and what other preferred shares offer with a similar risk level. That's where RITM-C has generally come up short.
Why Relative Valuation Matters One of the biggest advantages individual investors have is the ability to look at valuation. Institutional investors often have certain rules they follow based on their index and liquidity requirements. We don't. If two preferred shares are issued by the same company and one offers materially more yield while trading at a more attractive valuation, then we can jump on the opportunity.
We've spent a lot of time discussing relative value over the years. Sometimes the best investment decision isn’t finding a great company. Sometimes it's simply buying the best preferred share issued by the same company.
Those little differences compound over time.
How We View The Other Preferred Shares Readers who want to read about the other Rithm's preferred shares can look at our previous articles.
We recently covered RITM-B, which remains one of the more attractive floating-rate preferred shares in the mortgage REIT sector despite being in our hold range.
For investors interested in the fixed-to-reset feature, RITM-D remains a decent choice because of its upcoming reset and high yield if shares remain outstanding after call protection ends.
Several months ago we discussed RITM-A, which has one of the stronger floating spreads among the mortgage REIT preferred shares we cover.
In those three articles, we discussed why the three preferred shares stood out. Today's article is different.
RITM-C doesn't stand out. That's precisely why we're discussing it.
Sometimes investors learn just as much from understanding why we don’t particularly like a preferred share as from reading about one of our favorites. We believe the additional yield on RITM-A and RITM-B is significant enough to offset the moderate call risk for those shares. However, if prices were to swing a little bit, the relative valuation proposition would change.
Is RITM-C Doomed? Absolutely. Not. We don't dislike RITM-C because it’s a bad preferred share. If the share price declined enough, our opinion would change. And that’s the great thing about investing in preferred shares. Unlike looking at the common stocks, we usually aren't debating which preferred share has the best management team (though we do evaluate the risk of each individual company). Instead, we're comparing very similar investments.
The market will give investors opportunities. Sometimes that happens because one preferred share is materially more attractive than another. If that happens with RITM-C, we would happily swap into RITM-C. Currently, we have an allocation to RITM-D.
Final Thoughts RITM-C is a good preferred share. It just isn’t at a price we’d buy today. At current prices:
RITM-A: Closest to our buy range. While the annualized yield to call is negative, the actual dollar impact (based on prices recorded in our screenshot) would only be a few pennies.
RITM-B: Also close to our buy range while offering a materially higher stripped yield and floating yield than RITM-C.
RITM-C: A good preferred share, but currently the furthest above our buy target and therefore our least attractive choice today.
RITM-D: Also closer to our buy range than RITM-C and remains attractive because of its upcoming reset.
That leaves RITM-C in an awkward situation. There's nothing fundamentally wrong with the preferred share. It's simply too expensive relative to the other preferreds issued by RITM.
In my experience, that's more likely to happen when a few criteria are met:
Many preferred shares are trading relatively close to call value.
The share being evaluated has a lower coupon rate than other shares from the same company.
The shares are all floating. This last one is less precise, but lately it’s been included each time.
So in this case, we see RITM-C has the thinner spread over short-term rates. The price is modestly lower than RITM-A and RITM-B, but the difference in the share price was too small to accept the smaller yield. In the event the market were to become more concerned about credit quality (such as a recession), we would expect that many preferred shares would trade moderately lower. In that scenario, the shares with thinner spreads typically decline further. Consequently, we would expect RITM-A and RITM-B to be slightly less exposed to a decline in valuations than RITM-C if recessionary concerns came up.
Rithm Capital Corp. (RITM) Q2 2026 Earnings Call July 28, 2026 8:00 AM EDT
Company Participants
Emma Bolla - Deputy General Counsel of Corporate & Securities
Michael Nierenberg - Chairman, President & CEO
Peter Brindley
Baron Silverstein - President
Nicola Santoro - CFO, Chief Accounting Officer & Treasurer
Conference Call Participants
Douglas Harter - BTIG, LLC, Research Division
Jason Stewart - Compass Point Research & Trading, LLC, Research Division
Kenneth Lee - RBC Capital Markets, Research Division
Trevor Cranston - Citizens JMP Securities, LLC, Research Division
Crispin Love - Piper Sandler & Co., Research Division
Matthew Erdner - JonesTrading Institutional Services, LLC, Research Division
Michael Piccolo - Wedbush Securities Inc., Research Division
Presentation
Operator
Good morning, and welcome to the Rithm Capital Second Quarter 2026 Earnings Call. [Operator Instructions] Please note this event is being recorded.
I would now like to turn the conference over to Emma Hoelke, Deputy General Counsel. Please go ahead.
Emma Bolla
Deputy General Counsel of Corporate & Securities
Thank you, and good morning, everyone. I would like to thank you for joining us today for Rithm Capital's Second Quarter 2026 Earnings Call. Joining me today are Michael Nierenberg, Chairman, CEO and President of Rithm Capital; Nick Santoro, Chief Financial Officer of Rithm Capital; Baron Silverstein, President of Newrez; and Peter Brindley, Head of Real Estate at Elecor Properties.
Throughout the call, we are going to reference the earnings supplement that was posted this morning to the Rithm Capital website, www.rithmcap.com. If you've not already done so, I'd encourage you to download the presentation now. I would like to point out that certain statements made today will be forward-looking statements. These statements, by their nature, are uncertain and may differ materially from actual results.
I encourage you to review the disclaimers in our press release and earnings supplement regarding forward-looking statements and to review
Rithm vykázala EPS 0,6 USD na akcii, což překonalo odhad 0,5 USD a znamenalo překvapení +20,00 %. Tržby ale dosáhly 1,28 miliardy USD a odhad o 12,12 % minuly.
Rithm (RITM - Free Report) came out with quarterly earnings of $0.6 per share, beating the Zacks Consensus Estimate of $0.5 per share. This compares to earnings of $0.54 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +20.00%. A quarter ago, it was expected that this real estate investment trust would post earnings of $0.53 per share when it actually produced earnings of $0.51, delivering a surprise of -3.77%.
Over the last four quarters, the company has surpassed consensus EPS estimates two times.
Rithm, which belongs to the Zacks Financial - Miscellaneous Services industry, posted revenues of $1.28 billion for the quarter ended June 2026, missing the Zacks Consensus Estimate by 12.12%. This compares to year-ago revenues of $1.22 billion. The company has topped consensus revenue estimates three times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Rithm shares have lost about 15.3% since the beginning of the year versus the S&P 500's gain of 8.3%.
What's Next for Rithm?While Rithm has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Rithm was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.55 on $1.47 billion in revenues for the coming quarter and $2.23 on $6.02 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Financial - Miscellaneous Services is currently in the bottom 31% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Another stock from the same industry, Vinci Compass Investments (VINP - Free Report) , has yet to report results for the quarter ended June 2026. The results are expected to be released on August 11.
This investments platform is expected to post quarterly earnings of $0.23 per share in its upcoming report, which represents a year-over-year change of +4.6%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Vinci Compass Investments' revenues are expected to be $56.05 million, up 31.7% from the year-ago quarter.
The market expects Rithm (RITM - Free Report) to deliver a year-over-year decline in earnings on higher revenues when it reports results for the quarter ended June 2026. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.
The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on July 28. On the other hand, if they miss, the stock may move lower.
While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.
Zacks Consensus EstimateThis real estate investment trust is expected to post quarterly earnings of $0.50 per share in its upcoming report, which represents a year-over-year change of -7.4%.
Revenues are expected to be $1.46 billion, up 19.9% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 2.38% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Rithm?For Rithm, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -2.00%.
On the other hand, the stock currently carries a Zacks Rank of #4.
So, this combination makes it difficult to conclusively predict that Rithm will beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Rithm would post earnings of $0.53 per share when it actually produced earnings of $0.51, delivering a surprise of -3.77%.
Over the last four quarters, the company has beaten consensus EPS estimates two times.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Rithm doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Expected Results of an Industry PlayerAnother stock from the Zacks Financial - Miscellaneous Services industry, ChoiceOne Financial Services, Inc. (COFS - Free Report) , is soon expected to post earnings of $0.88 per share for the quarter ended June 2026. This estimate indicates a year-over-year change of -3.3%. Revenues for the quarter are expected to be $43.1 million, up 0.6% from the year-ago quarter.
The consensus EPS estimate for ChoiceOne Financial Services has remained unchanged over the last 30 days. However, a higher Most Accurate Estimate has resulted in an Earnings ESP of +2.27%.
When combined with a Zacks Rank of #3 (Hold), this Earnings ESP indicates that ChoiceOne Financial Services will most likely beat the consensus EPS estimate. The company beat consensus EPS estimates in each of the trailing four quarters.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Rithm Capital rozšířila správu aktiv na zhruba 59 miliard USD a tlačí na vyšší opakované poplatkové příjmy. Současně Newrez snížil náklady na obsluhu úvěru na 51 USD, ale firma dál čelí citlivosti na sazby.
Key Takeaways Rithm Capital expanded asset management to about $59B, aiming for more recurring fee income.RITM cut servicing costs per loan as technology initiatives target further efficiency gains in 2026.Rithm Capital still faces rate sensitivity as mortgage servicing rights drove a $204.2M fair-value decline. Rithm Capital Corp. (RITM - Free Report) is moving beyond a balance-sheet-heavy mortgage and real estate model. Its growth story now includes asset management, operating scale and technology-led efficiency at Newrez.
That shift matters because earnings still carry exposure to rates, mortgage servicing rights and fair-value swings. Investors may need to watch not only how much RITM earns, but how repeatable those earnings become.
How Rithm Capital Is Building Fee IncomeRithm Capital has been expanding its asset management platform across private credit, real estate, fund liquidity and other alternative strategies. The company had roughly $59 billion of assets under management as of March 31, 2026, up from $35 billion a year earlier.
Sculptor and Crestline are central to this push. Management has positioned the two as complementary platforms, with combined assets of roughly $60 billion managed and additional fundraising underway.
The strategy also fits Rithm Capital’s operating model. Newrez and Genesis can source asset-based finance opportunities that may feed investment products, giving the asset management arm a potential pipeline tied to businesses Rithm already controls.
Why RITM Wants More Scalable EarningsFee-centric operations can improve the quality of Rithm Capital’s earnings mix because they are less dependent on deploying balance-sheet capital. A larger asset management business could add recurring management fees and make growth more scalable.
That would be a meaningful contrast to income tied to mortgage assets, spreads and fair-value changes. Rithm Capital’s broader platform already spans mortgage origination and servicing, residential transitional lending, asset management, investment portfolio assets and commercial real estate.
Annaly Capital Management Inc. (NLY - Free Report) offers a useful industry comparison because it also operates in mortgage-related assets and mortgage servicing rights. PennyMac Mortgage Investment Trust (PMT - Free Report) , another mortgage-focused real estate investment trust, gives investors a second peer for judging how RITM’s platform breadth differs from more focused mortgage investment models. Viewed against NLY and PMT, RITM’s push toward asset management shows why scalability has become a more important part of its long-term earnings mix.
How Newrez Tech Could Change RITM MarginsNewrez remains Rithm Capital’s largest business and a core earnings engine. In the first quarter of 2026, it generated $273.7 million of pre-tax operating income, with $15.5 billion of funded production and $850 billion of servicing unpaid principal balance.
The next leg of the Newrez story is less about size alone and more about cost efficiency. Servicing costs per loan fell to $51 in the first quarter of 2026 from $54 in the prior quarter.
Technology is central to that margin effort. HomeVision automated underwriting tools, the ValonOS servicing transition and process automation are expected to reduce costs per loan over time. Management targets an additional 15% reduction from the current run rate in 2026.
Where Rithm Capital's Macro Exposure Still DominatesThe transition is still in progress, and macro exposure remains hard to ignore. As of March 31, 2026, nearly 20% of Rithm Capital’s total assets were directly tied to mortgage servicing rights and related financing receivables.
That exposure can work both ways. Higher rates generally support mortgage servicing rights valuations by reducing refinancing activity, but mortgage spreads, prepayment speeds and market volatility still affect results.
The first quarter showed how these forces can overshadow strategic progress. Rithm Capital reported a $204.2-million negative change in the fair value of mortgage servicing rights and related financing receivables, net of economic hedges.
How RITM's Ratings Reflect a Trend in ProgressThe bottom line is that Rithm Capital is building a more diversified, fee-oriented platform, but the stock does not yet carry the profile of a clear momentum story. The business mix is improving, while rate sensitivity and valuation swings remain major variables.
RITM currently carries a Zacks Rank #3 (Hold). That rank suggests a more balanced earnings estimate backdrop over the next one to three months rather than a clearly positive revision trend. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for 2026 and 2027 earnings has remained unchanged over the past month, pointing to a neutral setup.
Estimate Revision Trend
Image Source: Zacks Investment Research
The Style Scores reinforce that measured view. RITM has a Value Score of C, Growth Score of F, Momentum Score of D and VGM Score of F. Since Zacks Style Scores complement the Zacks Rank, weak Growth, Momentum and VGM readings indicate limited style-based support.
Over the past year, RITM shares have declined 18.1%, compared with the industry’s 19.1% decline.
Price Performance
Image Source: Zacks Investment Research
For now, RITM’s strategic direction is worth monitoring. The fee-income and technology-efficiency trends are encouraging, but the ratings and macro sensitivity argue for patience until estimate momentum or stock performance becomes more supportive.
Rithm Capital rozšířil aktiva vhodná k investování nad 100 miliard USD a aktiva ve správě dosáhla ve 1. čtvrtletí 2026 zhruba 59 miliard USD. Současně ale čelí vyšším nákladům, tlaku na likviditu a volatilitě mortgage servicing rights.
Key Takeaways Rithm Capital now spans servicing, lending, asset management, investments and commercial real estate.RITM grew investable assets above $100B as asset management reached about $59B by Q1'26.Rithm Capital faces higher costs, liquidity pressure and mortgage servicing rights volatility. Rithm Capital Corp. (RITM - Free Report) is no longer a narrow mortgage story. The company now blends mortgage origination and servicing, transitional lending, asset management, investment holdings and commercial real estate.
That broader platform gives RITM more earnings levers, but it also makes the stock harder to assess. Scale is visible, while costs, liquidity and rate sensitivity still shape the risk profile.
Rithm Capital Has More Than One Profit LeverRithm Capital reports five operating segments. Origination and Servicing remains the largest, with Newrez providing home loans and buying mortgages from other lenders.
Residential Transitional Lending, mainly through Genesis, adds construction, renovation and bridge loans. Asset Management brings fee-oriented exposure across private credit, real estate, fund liquidity and other alternative strategies.The Investment Portfolio adds exposure to mortgage and consumer credit assets. Commercial Real Estate adds Class A office properties. This mix creates more than one path to earnings.
Why RITM Is Expanding Beyond Mortgage CyclesThe logic is to reduce reliance on one housing or rate backdrop. Between the second quarter of 2025 and the first quarter of 2026, Rithm Capital expanded through Newrez, Genesis, Sculptor and Rithm Asset Management, while Crestline and Paramount added breadth.
That growth lifted investable assets beyond $100 billion. Asset management reached roughly $59 billion by the end of the first quarter of 2026, compared with $35 billion a year earlier. A larger asset-management business can make fee-related earnings a bigger part of the model.
How Newrez Still Anchors the Rithm Capital StoryNewrez remains the operating core. In the first quarter of 2026, it generated $273.7 million of pre-tax operating income, up from $249.1 million in the prior quarter.
Servicing scale is central to that earnings base. Servicing unpaid principal balance stood at $850 billion at the end of the first quarter of 2026, including $257 billion of third-party servicing.
Origination also remains meaningful. Funded production was $15.5 billion in the first quarter, down 18% sequentially but up 31% year over year, while total gain-on-sale margin improved to 1.44% from 1.37%.
Cost initiatives matter because scale is only valuable if margins hold. Servicing costs per loan declined to $51 from $54 in the prior quarter, and management is targeting further reductions through technology and automation.
Where Rithm Capital's Pressure Points RemainThe broader platform has come with a larger cost base. Total expenses were $1.24 billion in the first quarter, up from $419 million in the year-ago period, reflecting Elecor-related depreciation and amortization and higher operating expenses.
Liquidity is another concern. As of March 31, 2026, Rithm Capital had total liquidity of $1.4 billion, below total debt of $39.5 billion, including short-term and long-term debt.
Mortgage servicing rights still create volatility. Nearly 20% of total assets were directly tied to mortgage servicing rights and related financing receivables as of March 31, 2026.
That exposure matters because Rithm Capital reported a $204.2-million negative change in their fair value, net of economic hedges, in the first quarter. Integration is another test, as added scale must outpace fixed-cost pressure.
How Rithm Capital’s Ratings Match a Mixed SetupThe bottom line is that Rithm Capital has built a larger and more diversified financial platform, but the stock remains a balanced case rather than a clean growth story.
The stock has declined 18.1% over the past year compared with the industry’s fall of 19.9%, reflecting investor caution despite the company’s expanded platform and high dividend yield.
Price Performance
Image Source: Zacks Investment Research
The estimate picture also looks point to neutral setup. The Zacks consensus estimate for 2026 and 2027 earnings has been unchanged over the past month.
Estimate Revision Trend
Image Source: Zacks Investment Research
RITM currently carries a Zacks Rank #3 (Hold), which points to a neutral near-term setup. That fits a stock with visible operating scale and diversification benefits, but also cost, liquidity and rate-related risks that keep the investment case from looking cleaner. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Style Scores reinforce that mixed profile. RITM has a VGM Score of F, Value Score of C, Growth Score of F and Momentum Score of D. Since the Style Scores are designed to complement the Zacks Rank, the weak Growth, Momentum and VGM readings suggest investors are still waiting for stronger evidence that the broader platform can translate into better stock performance.
Investors tracking Rithm Capital can also compare it with Blackstone Mortgage Trust, Inc. (BXMT - Free Report) , a real estate finance company focused on commercial real estate debt investments. BXMT offers a useful comparison point because it also carries sensitivity to commercial real estate fundamentals and credit conditions.
NexPoint Real Estate Finance, Inc. (NREF - Free Report) is another relevant peer. The company originates, structures and invests in first mortgage loans, mezzanine loans, preferred equity and other structured financings tied to commercial real estate and multifamily assets. NREF's narrower real estate finance focus contrasts with Rithm’s broader mix of servicing, lending, asset management and investment portfolio exposure.
Rithm Capital nabízí dividendový výnos kolem 10,9 %, ale zůstává pod tlakem kvůli rizikům likvidity a expozici na mortgage servicing rights. Akcie se obchodují pod účetní hodnotou.
Key Takeaways Rithm Capital trades well below industry valuation levels and below book value.RITM has covered common dividends with earnings available for distribution for 26 straight quarters.Rithm Capital faces liquidity and mortgage servicing rights risks despite its income appeal. Rithm Capital Corp. (RITM - Free Report) gives income-focused investors plenty to notice. The stock trades at a low earnings multiple, carries a double-digit dividend yield and sits below book value.
That combination can signal opportunity, but it can also reflect risk. RITM’s leverage, liquidity position and exposure to mortgage-related assets make the discount harder to treat as a simple bargain.
Valuation Suggests RITM Is Trading at a Deep DiscountRITM is trading at 4.02X forward 12-month price-to-earnings, far below the industry average. The stock’s own history also shows that the valuation is near the low end of its five-year range. Over that period, RITM has traded as high as 8.71X forward earnings and as low as 3.81X, with a five-year median of 6.15X.
Price-to-Earnings F12M
Image Source: Zacks Investment Research
The book-value discount adds to that case. RITM’s price-to-book ratio is 0.68, compared with 3.23 for the industry.
How Rithm Capital Supports a Big DividendThe dividend is central to RITM’s appeal. Rithm Capital’s board announced a quarterly cash dividend of 25 cents per share on June 22, 2026, payable on July 31 to shareholders of record as of July 2.
That payout translates into an annualized dividend of $1.00 per share and a yield of roughly 10.9%. For income investors, that is difficult to ignore.
The payout also has operating support. Earnings available for distribution have exceeded common dividends for 26 consecutive quarters, helped by Rithm’s mix of mortgage origination and servicing, residential transitional lending, asset management and commercial real estate.
Annaly Capital Management Inc (NLY - Free Report) and Redwood Trust, Inc. (RWT - Free Report) appear in the same industry peer set, giving investors other mortgage and real estate finance names to compare against. NLY has a dividend yield of 12.6% while RWT has a dividend yield of 14.9%.
Why RITM Is Not an Easy Value CallDiscounted valuation does not automatically mean mispriced. RITM shares have declined 18.1% over the past year compared with the industry’s fall of 19.9%.
Price Performance
Image Source: Zacks Investment Research
The earnings revision backdrop is not giving investors much of a near-term catalyst either. Earnings estimates for 2026 and 2027 have been unchanged over the past month, and the stock is viewed as having limited upside potential in the near term because of weak fundamentals and the absence of positive estimate revisions.
Estimate Revision Trend
Image Source: Zacks Investment Research
What Rithm Capital's Debt Profile ImpliesThe balance sheet helps explain why investors may demand a discount. As of March 31, 2026, Rithm Capital had total liquidity of $1.4 billion, compared with total debt of $39.5 billion, including short-term and long-term debt.
That gap can matter during economic stress or market volatility. A weaker liquidity position could make it harder for the company to support its business if funding conditions tighten or asset values move sharply.
RITM also has meaningful exposure to mortgage servicing rights and mortgage-related assets. Nearly 20% of total assets were directly tied to mortgage servicing rights and related financing receivables as of March 31, 2026.
The sensitivity is visible in recent results. In the first quarter of 2026, Rithm recorded a $204.2-million negative change in the fair value of mortgage servicing rights and related financing receivables, net of economic hedges.
How RITM's Ratings Shape the Buy DebateThe bottom line is that RITM offers income and valuation appeal, but the risk profile keeps the buy case measured. The stock currently carries a Zacks Rank #3 (Hold), which points to a neutral short-term setup rather than a strong earnings-revision signal. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Style Scores add to that balanced view. RITM has a Value Score of C, which supports a moderate value argument but stops short of confirming the stock as a top-tier value setup. The weaker style readings are harder to overlook. RITM carries a Growth Score of F, a Momentum Score of D and a VGM Score of F. Those grades reinforce why the stock may fit cautious income seekers better than investors looking for clear growth or momentum strength.
Rithm Capital schválila dividendu za 2. čtvrtletí 2026: 0,25 USD na kmenovou akcii a další výplaty pro preferenční akcie. Kmenová dividenda je splatná 31. července 2026. Preferenční dividendy jsou splatné 17. srpna 2026.
NEW YORK--(BUSINESS WIRE)--Rithm Capital Corp. (NYSE:RITM, “Rithm Capital” or the “Company”) announced today that its Board of Directors (the “Board”) has declared its second quarter 2026 common and preferred stock dividends.
Common Stock Dividend
The Board declared a dividend of $0.25 per share of common stock for the second quarter 2026. The second quarter common stock dividend is payable on July 31, 2026, to shareholders of record on July 2, 2026.
Preferred Stock Dividends
In accordance with the terms of Rithm Capital’s Series A Cumulative Redeemable Preferred Stock (“Series A”), the Board declared a Series A dividend for the second quarter 2026 of $0.6206601 per share, which reflects a rate of 9.715%. The Series A Preferred Stock accrues dividends at a floating rate equal to three-month CME SOFR (plus a spread adjustment of 0.262%) plus a spread of 5.802%.
In accordance with the terms of Rithm Capital’s Series B Cumulative Redeemable Preferred Stock (“Series B”), the Board declared a Series B dividend for the second quarter 2026 of $0.6103101 per share, which reflects a rate of 9.553%. The Series B Preferred Stock accrues dividends at a floating rate equal to three-month CME SOFR (plus a spread adjustment of 0.262%) plus a spread of 5.640%.
In accordance with the terms of Rithm Capital’s Series C Cumulative Redeemable Preferred Stock (“Series C”), the Board declared a Series C dividend for the second quarter 2026 of $0.5674407 per share, which reflects a rate of 8.882%. The Series C Preferred Stock accrues dividends at a floating rate equal to three-month CME SOFR (plus a spread adjustment of 0.262%) plus a spread of 4.969%.
In accordance with the terms of Rithm Capital’s 7.000% Series D Fixed-Rate Reset Cumulative Redeemable Preferred Stock (“Series D”), the Board declared a Series D dividend for the second quarter 2026 of $0.4375000 per share.
In accordance with the terms of Rithm Capital’s 8.750% Series E Fixed-Rate Cumulative Redeemable Preferred Stock (“Series E”), the Board declared a Series E dividend for the second quarter 2026 of $0.5468750 per share.
In accordance with the terms of Rithm Capital’s 8.750% Series F Fixed-Rate Reset Cumulative Redeemable Preferred Stock (“Series F”), the Board declared a Series F dividend for the second quarter 2026 of $0.5468750 per share.
Dividends for the Series A, Series B, Series C, Series D, Series E, and Series F are payable on August 17, 2026, to preferred shareholders of record on August 1, 2026 (with an effective record date of July 31, 2026).
ABOUT RITHM CAPITAL
Rithm Capital Corp. is a global alternative asset manager with significant experience managing credit and real estate assets. Rithm’s integrated platform spans asset-based finance, residential and commercial real estate lending, mortgage servicing rights, and structured credit. Through platforms including Elecor Properties, Newrez, Genesis Capital, Sculptor Capital Management, and Crestline Investors, Rithm employs a unique owner-operator model to drive value for shareholders and investors.
