Track market-moving stories before they get noisy

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.

NEW YORK--(BUSINESS WIRE)--Rithm Capital Corp. (NYSE:RITM, “Rithm Capital,” “Rithm” or the “Company”) announced today that it will release its second quarter 2026 financial results for the period ended June 30, 2026 on Tuesday, July 28, 2026 prior to the opening of the New York Stock Exchange. In addition, management will host a conference call on that same day at 8:00 a.m. Eastern Time. A copy of the earnings release will be posted to the Investors – Events & Presentations section of the C.

NEW YORK--(BUSINESS WIRE)-- #creditratingagency--KBRA assigns preliminary ratings to 10 classes of mortgage-backed notes from New Residential Mortgage Loan Trust 2026-NQM8 (NRMLT 2026-NQM8), a $480.2 million non-prime RMBS transaction sponsored by Rithm Capital Corp. (formerly New Residential Investment Corp.), a publicly traded (NYSE: RITM) real estate investment trust (REIT). The underlying mortgages in the subject pool were primarily originated by NewRez LLC (51.3%) and Champions LLC (20.3%). In addition, all loa.

This article compares RITM's recent dividend per share rates, yield percentages, and several dividend sustainability metrics to 17 mREIT peers. This includes an analysis of RITM's quarterly core earnings/earnings available for distribution (“EAD”) which directly impacts the company's dividend sustainability. This article also projects RITM's dividend sustainability for Q3 2026 – Q4 2026 (including specific per share amounts).

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 Corp. preferreds present differentiated risk/reward profiles across Series D, E, and F, each with distinct yield and convexity characteristics. RITM.PR.E offers a fixed-rate structure trading at par, with limited upside in declining rates and downside exposure if rates rise due to negative convexity. RITM.PR.D provides a speculative reset opportunity, potentially yielding above 10% if not redeemed, but carries the risk of early redemption given current market conditions.

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.

More News From Rithm Capital Corp.

Rithm Capital Corporation (RITM) offers six preferred stocks with varying coupons, call protections, and floating/fixed structures for diverse investor needs. RITM's preferred dividend coverage is nearly 6x, and total common equity coverage is just under 5x, indicating adequate risk buffers despite rising preferred obligations. Series E and F preferreds offer years of call protection, while Series D loses protection this fall; Series E is the only fixed coupon option.

NEW YORK--(BUSINESS WIRE)--Rithm Capital Corp. (NYSE: RITM; “Rithm Capital,” “Rithm” or the “Company”) today reported the following information for the first quarter ended March 31, 2026.

“Despite a challenging and volatile market environment, Rithm delivered strong Q1 results, with Newrez generating a 19% annualized operating ROE(3), Genesis posting 80% year-over-year origination growth, and our asset management platform growing to approximately $60 billion in AUM,” said Michael Nierenberg, CEO of Rithm Capital. “Our diversified owner-operator model is built to perform through disruption, and we are confident the current conditions create compelling opportunities to drive long-term value for our shareholders.”

Financial Highlights:

GAAP net income of $67.8 million, or $0.12 per diluted common share(1) Earnings available for distribution of $289.6 million, or $0.51 per diluted common share(1)(2) Common dividend of $139.6 million, or $0.25 per common share Book value per common share of $12.51(1) Q1 2026

Q4 2025

Summary Operating Results:

GAAP Net Income per Diluted Common Share(1)

$

0.12

$

0.09

GAAP Net Income (in millions)

$

67.8

$

53.1

Non-GAAP Results:

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

$

0.51

$

0.74

Earnings Available for Distribution(2) (in millions)

$

289.6

$

418.9

Common Dividend:

Common Dividend per Share

$

0.25

$

0.25

Common Dividend (in millions)

$

139.6

$

139.0

Business Highlights:

Origination & Servicing: Newrez LLC (“Newrez”), Rithm Capital’s multichannel mortgage origination and servicing platform, posted pre-tax operating income of $273.7 million in Q1’26, excluding mortgage servicing rights (“MSRs”) mark-to-market (“MTM”) loss, net of hedges, and other non-operating items of $(23.1) million, up from $249.1 million in Q4’25, excluding MSRs MTM loss, net of hedges, and other non-operating items of $(216.5) million. Newrez generated a 19% annualized operating return on equity (“ROE”)(3) on $5.7 billion of segment equity in Q1’26. Total servicing unpaid principal balance (“UPB”) reached $850 billion at the end of Q1’26, which includes $257 billion UPB of third-party servicing. Origination funded production volume was $15.5 billion in Q1’26, a decrease of 18% quarter over quarter (“QoQ”) and an increase of 31% year over year (“YoY”). Investment Portfolio: Rithm Capital completed four non-qualified mortgage securitizations in Q1’26 totaling $2.0 billion in UPB. Acquired $140 million in home improvement loans in Q1’26 under the previously announced forward flow agreement with Upgrade, Inc., bringing the total purchased to date through quarter-end to $667 million. Residential Transitional Lending: Rithm Capital’s residential transitional lending platform, Genesis Capital LLC (“Genesis Capital”), recorded Q1’26 origination volume of $1.6 billion, a YoY increase of 80%, continuing a series of record volume quarters. Genesis Capital continued to expand its sponsor base, growing new sponsors funded by 118 in Q1’26, a 258% increase YoY. Total sponsors funded for the first quarter of 2026 also expanded to 266, achieving 40% YoY growth. Asset Management: Rithm Asset Management, Rithm Capital’s alternative asset management platform, which primarily includes Sculptor Capital Management Inc. (“Sculptor Capital”) and Crestline Management, L.P. (“Crestline”), had approximately $59 billion of assets under management (“AUM”)(4) as of March 31, 2026, up from $35 billion at quarter end Q1’25, driven by the acquisition of Crestline and additional fund raising activity throughout the year. In Q1’26, Sculptor Capital committed over $1 billion to investments in its latest Real Estate Fund V, representing approximately 20% of capital raised since its inception, and it deployed over $2 billion in capital into corporate credit and asset-based finance investments. Sculptor Capital also continued its active presence in the collateralized loan obligation (“CLO”) markets with a new U.S. CLO for approximately $400 million of AUM in the first quarter of 2026. Crestline raised $100 million in net inflows in Q1’26 for its private perpetual business development company, Crestline Lending Solutions Fund, from institutional investors, bringing total commitments to over $500 million. Commercial Real Estate: Rebranded the Company’s commercial real estate platform Paramount Group to Elecor Properties (“Elecor”) to align the corporate brand with the vision to elevate the portfolio, properties and tenant experience. Elecor, Rithm Capital’s recently acquired owner and operator of Class A office properties in New York and San Francisco, witnessed continued leasing momentum with New York City lease occupancy increasing by 4.7% YoY, and with over 350k square feet of new lease activity, 74% of which is in the San Francisco portfolio. Refinanced 1325 Avenue of the Americas through a single-asset, single borrower commercial mortgage-backed securities financing. (1)

Per diluted common share calculations for both GAAP Net Income and Earnings Available for Distribution are based on 565,927,074 and 564,691,202 weighted average diluted shares for the quarters ended March 31, 2026 and December 31, 2025, respectively. The per share calculation of Book Value is based on 557,902,002 common shares outstanding as of March 31, 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)

Q1’26 annualized operating ROE is a non-GAAP measure. Q1’26 annualized operating ROE is calculated based on annualized pre-tax operating income of $273.7 million, excluding MSRs MTM loss, net of hedges, and other non-operating items of $(23.1) 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 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 - 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, April 28, 2026 at 8:00 A.M. Eastern Time. A copy of the earnings release will be posted to the Investors - Events & Presentations 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 First Quarter 2026 Earnings Call.” In addition, participants are encouraged to pre-register for the conference call at https://dpregister.com/sreg/10208453/103db8ca815.

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, May 5, 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 “2668521”.

Rithm Capital Corp. and Subsidiaries

Consolidated Statements of Operations (Unaudited)

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

  Three Months Ended

March 31,

2026

December 31,

2025

Revenues

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

$

579,288

$

570,070

Change in fair value of MSRs and MSR financing receivables, net of economic hedges (includes realization of cash flows of $(211,456) and $(232,554), respectively)

(204,229

)

(421,815

)

Servicing revenue, net

375,059

148,255

Interest income

461,877

500,814

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

208,250

203,731

Asset management revenue

106,587

359,489

Rental revenue

191,691

46,202

Other revenue

36,772

32,258

1,380,236

1,290,749

Expenses

Interest expense and warehouse line fees

430,662

422,821

General, administrative and operating

336,002

261,366

Compensation and benefits

378,410

453,932

Depreciation and amortization

92,644

35,985

1,237,718

1,174,104

Other Income (Loss)

Realized and unrealized gains (losses), net

(15,154

)

50,876

Other income (loss), net

26,876

38,804

11,722

89,680

Income before Income Taxes

154,240

206,325

Income tax expense (benefit)

44,762

115,747

Net Income

109,478

90,578

Non-controlling interests in income of consolidated subsidiaries

(146

)

1,234

Redeemable non-controlling interests in income of consolidated subsidiaries

6,946

4,353

Net Income Attributable to Rithm Capital Corp.

102,678

84,991

Change in redemption value of redeemable non-controlling interests

—

—

Dividends on preferred stock

34,847

31,875

Net Income Attributable to Common Stockholders

$

67,831

$

53,116

Net Income per Share of Common Stock

Basic

$

0.12

$

0.10

Diluted

$

0.12

$

0.09

Weighted Average Number of Shares of Common Stock Outstanding

Basic

556,720,287

555,021,130

Diluted

565,927,074

564,691,202

Dividends Declared per Share of Common Stock

$

0.25

$

0.25

Rithm Capital Corp. and Subsidiaries

Consolidated Balance Sheets

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

  March 31, 2026

(Unaudited)

December 31, 2025

Assets

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

$

10,859,933

$

10,359,141

Government and government-backed securities ($5,041,769 and $5,230,139 at fair value, respectively)

5,066,754

5,254,905

Residential mortgage loans ($5,083,003 and $5,752,169 at fair value, respectively)(A)

5,137,741

5,808,960

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

805,294

784,399

Residential transition loans, at fair value

3,197,813

2,699,864

Residential mortgage loans subject to repurchase

4,427,618

3,952,792

Real estate, net(A)

6,174,559

6,175,735

Insurance company investments, at fair value

1,021,920

906,454

Cash, cash equivalents and restricted cash(A)

2,368,374

2,656,938

Servicer advances receivable

2,865,556

3,090,613

Other assets ($3,018,569 and $2,707,456 at fair value, respectively)(A)

5,714,249

5,583,976

Assets of Consolidated Entities(A):

Investments, at fair value and other assets

5,734,733

5,789,349

Total Assets

$

53,374,544

$

53,063,126

Liabilities and Equity

Liabilities

Secured financing agreements(A)

$

13,923,496

$

13,763,802

Secured notes and bonds payable ($134,319 and $143,442 at fair value, respectively)(A)

14,827,171

15,203,770

Residential mortgage loan repurchase liability

4,427,618

3,952,792

Unsecured notes, net of issuance costs

1,424,635

1,421,088

Interest sensitive insurance contract liabilities

1,069,355

960,209

Dividends payable

179,104

178,900

Accrued expenses and other liabilities ($610,185 and $638,090 at fair value, respectively)(A)

3,085,378

3,349,643

Liabilities of Consolidated Entities(A):

Notes payable, at fair value and other liabilities

4,932,492

4,978,212

Total Liabilities

43,869,249

43,808,416

Commitments and Contingencies

Redeemable Noncontrolling Interests of Consolidated Subsidiaries

361,138

314,303

Stockholders’ Equity

Preferred stock, $0.01 par value, 100,000,000 shares authorized, 67,564,122 and 57,564,122 issued and outstanding, $1,689,104 and $1,439,104 aggregate liquidation preference, respectively

1,632,915

1,390,790

Common stock, $0.01 par value, 2,000,000,000 shares authorized, 557,902,002 and 555,880,947 issued and outstanding, respectively

5,579

5,559

Additional paid-in capital

6,998,267

6,982,991

Accumulated deficit

(99,976

)

(19,945

)

Accumulated other comprehensive income

73,292

71,092

Stockholders’ Equity in Rithm Capital Corp.

8,610,077

8,430,487

Non-controlling interests in equity of consolidated subsidiaries

534,080

509,920

Total Stockholders’ Equity

9,144,157

8,940,407

Total Liabilities and Equity

$

53,374,544

$

53,063,126

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; (iv) depreciation and amortization on real estate investment properties; (v) straight-line rental income on commercial real estate properties; and (vi) 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) non-cash deferred interest expense, (iii) amortization expense related to intangible assets and debt acquired below or above market prices and (iv) straight-line rental income on commercial real estate properties, 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):

Three Months Ended

March 31,

2026

December 31,

2025

Net income attributable to common stockholders - GAAP

$

67,831

$

53,116

Adjustments:

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

71,844

166,648

Other loss, net

15,633

26,330

Depreciation and amortization

87,280

27,824

Non-capitalized transaction-related expenses

8,330

33,373

Deferred taxes

38,718

111,614

Earnings available for distribution - Non-GAAP

$

289,636

$

418,905

Net income per diluted share

$

0.12

$

0.09

Earnings available for distribution per diluted share

$

0.51

$

0.74

Weighted average number of shares of common stock outstanding, diluted

565,927,074

564,691,202

SEGMENT INFORMATION

($ in thousands)

  First Quarter Ended March 31, 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

$

579,288

$

—

$

—

$

—

$

—

$

—

$

579,288

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

(204,229

)

—

—

—

—

—

(204,229

)

Servicing revenue, net

375,059

—

—

—

—

—

375,059

Interest income

234,877

87,659

38,897

95,967

1,832

2,645

461,877

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

194,972

—

—

13,278

—

—

208,250

Asset management revenue

—

—

104,818

—

1,769

—

106,587

Rental revenue

—

—

—

20,487

171,204

—

191,691

Other revenue

23,333

—

—

6,385

7,054

—

36,772

Total Revenue

828,241

87,659

143,715

136,117

181,859

2,645

1,380,236

Interest expense and warehouse line fees

215,797

35,659

6,173

76,555

58,462

38,016

430,662

Other segment expenses

151,269

6,537

49,811

25,109

84,000

19,276

336,002

Compensation and benefits

207,074

20,822

113,016

5,115

11,282

21,101

378,410

Depreciation and amortization

6,088

1,943

11,526

8,482

64,605

—

92,644

Total Operating Expenses

580,228

64,961

180,526

115,261

218,349

78,393

1,237,718

Realized and unrealized gains (losses), net

—

(606

)

(1,394

)

(13,034

)

(120

)

—

(15,154

)

Other income (loss), net

2,614

1,055

9,476

11,694

2,035

2

26,876

Total Other Income (Loss)

2,614

449

8,082

(1,340

)

1,915

2

11,722

Income (Loss) before Income Taxes

$

250,627

$

23,147

$

(28,729

)

$

19,516

$

(34,575

)

$

(75,746

)

$

154,240

Total Assets

$

28,311,493

$

4,505,746

$

4,504,047

$

9,905,297

$

5,902,572

$

245,389

$

53,374,544

Stockholders' Equity in Rithm Capital Corp.

$

5,797,840

$

934,217

$

1,282,840

$

1,564,567

$

1,249,074

$

(2,218,461

)

$

8,610,077

Fourth Quarter Ended December 31, 2025

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

$

570,070

$

—

$

—

$

—

$

—

$

—

$

570,070

Change in fair value of MSRs and MSR financing receivables, net of economic hedges (includes realization of cash flows of $(232,554))

(421,815

)

—

—

—

—

—

(421,815

)

Servicing revenue, net

148,255

—

—

—

—

—

148,255

Interest income

305,075

82,075

16,470

93,696

337

3,161

500,814

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

188,023

—

—

15,708

—

—

203,731

Asset management revenue

—

—

359,229

—

260

—

359,489

Rental revenue

—

—

—

20,369

25,833

—

46,202

Other revenue

24,556

—

—

6,602

1,100

—

32,258

Total Revenue

665,909

82,075

375,699

136,375

27,530

3,161

1,290,749

Interest expense and warehouse line fees

254,331

34,960

6,720

87,927

8,188

30,695

422,821

Other segment expenses

159,952

9,073

48,215

26,661

13,124

4,341

261,366

Compensation and benefits

213,425

17,583

187,273

795

14,285

20,571

453,932

Depreciation and amortization

6,171

1,939

8,594

8,927

10,354

—

35,985

Total Operating Expenses

633,879

63,555

250,802

124,310

45,951

55,607

1,174,104

Realized and unrealized gains (losses), net

—

6,829

3,565

40,464

18

—

50,876

Other income (loss), net

527

158

9,777

28,860

(520

)

2

38,804

Total Other Income (Loss)

527

6,987

13,342

69,324

(502

)

2

89,680

Income (Loss) before Income Taxes

$

32,557

$

25,507

$

138,239

$

81,389

$

(18,923

)

$

(52,444

)

$

206,325

Total Assets

$

27,459,943

$

4,057,146

$

4,514,978

$

10,687,181

$

5,885,235

$

458,643

$

53,063,126

Stockholders' Equity in Rithm Capital Corp.

$

5,566,600

$

881,484

$

1,365,165

$

1,664,739

$

1,068,309

$

(2,115,810

)

$

8,430,487

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. 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 Management, Rithm employs a unique owner-operator model to drive value for shareholders and investors. For more information, visit www.rithmcap.com.

More News From Rithm Capital Corp.

Rithm Capital delivers robust mREIT, office REIT, and alternative asset management monetization trends, better positioning the diversified company no matter the rate environment. For now, the mREIT segment enjoys rich net interest incomes and robust loan origination gains, aided by their fully hedged MSR portfolios working out as intended. RITM's diversification into asset management and office rentals are also top-line accretive, thanks to the expanded AUM and higher leasing/occupancy rates supporting its resilient growth prospects.

-

NEW YORK--(BUSINESS WIRE)--KBRA assigns preliminary ratings to 10 classes of mortgage-backed notes from New Residential Mortgage Loan Trust 2026-NQM6 (NRMLT 2026-NQM6), a $490.1 million non-prime RMBS transaction sponsored by Rithm Capital Corp. (formerly New Residential Investment Corp.), a publicly traded (NYSE: RITM) real estate investment trust (REIT). The underlying mortgages in the subject pool were primarily originated by NewRez LLC (62.7%). In addition, all loans will be serviced by NewRez LLC.

NRMLT 2026-NQM6 is collateralized by a pool of 930 residential mortgages seasoned approximately two months. Borrowers in NRMLT 2026-NQM6 possess a non-zero WA original credit score of 755 and exhibit a weighted average (WA) original loan-to-value (LTV) of 71.8% and a WA combined LTV (CLTV) of 71.8%.

KBRA’s rating approach incorporated loan-level analysis of the mortgage pool through its Residential Asset Loss Model (REALM), an examination of the results from third-party loan file due diligence, cash flow modeling analysis of the transaction’s payment structure, reviews of key transaction parties and an assessment of the transaction’s legal structure and documentation. This analysis is further described in our U.S. RMBS Rating Methodology.

To access ratings and relevant documents, click here.

Click here to view the report.

Related Publications

RMBS KCAT NRMLT 2026-NQM6 Tear Sheet Methodologies

RMBS: U.S. RMBS Rating Methodology Structured Finance: Global Structured Finance Counterparty Methodology Disclosures

Further information on key credit considerations, sensitivity analyses that consider what factors can affect these credit ratings and how they could lead to an upgrade or a downgrade, and ESG factors (where they are a key driver behind the change to the credit rating or rating outlook) can be found in the full rating report referenced above.

A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the Information Disclosure Form(s) located here.

Information on the meaning of each rating category can be located here.

Further disclosures relating to this rating action are available in the Information Disclosure Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at www.kbra.com.

About KBRA

Kroll Bond Rating Agency, LLC (KBRA), one of the major credit rating agencies (CRA), is a full-service CRA registered with the U.S. Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority. In addition, KBRA is designated as a Designated Rating Organization (DRO) by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized as a Qualified Rating Agency by Taiwan’s Financial Supervisory Commission and is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider (CRP) in the U.S.

Doc ID: 1014724

More News From Kroll Bond Rating Agency, LLC

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NEW YORK--(BUSINESS WIRE)--Rithm Capital Corp. (NYSE: RITM; “Rithm” or the “Company”) announced today that it plans to offer $500 million aggregate principal amount of senior unsecured notes due 2031 (the “notes”). The Company intends to use the net proceeds from this offering for general corporate purposes, which may include the repayment of certain indebtedness.

The notes have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the “Securities Act”), any state securities laws or the securities laws of any other jurisdiction, and may not be offered or sold in the United States absent registration or an applicable exemption from registration. Accordingly, the notes are being offered and sold only to persons reasonably believed to be qualified institutional buyers in accordance with Rule 144A under the Securities Act and, outside the United States, in reliance on Regulation S under the Securities Act.

This press release does not constitute an offer to sell, or the solicitation of an offer to buy, any security and shall not constitute an offer, solicitation or sale in any jurisdiction in which such offer, solicitation or sale would be unlawful.

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.

FORWARD-LOOKING STATEMENTS

This communication contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements relating to the Company’s intention to issue the notes and the intended use of proceeds of the offering. Forward-looking statements are not historical in nature and can be identified by words such as “believe,” “expect,” “anticipate,” “estimate,” “project,” “plan,” “continue,” “intend,” “should,” “would,” “could,” “goal,” “objective,” “will,” “may,” “seek,” or similar expressions or their negative forms. Forward-looking statements are subject to numerous assumptions, risks and uncertainties, which change over time and are beyond our control. Forward-looking statements speak only as of the date they are made. Rithm does not assume any duty or obligation to update or supplement any forward-looking statements. Because forward-looking statements are, by their nature, uncertain and subject to numerous assumptions, risks and uncertainties, actual results or future events, circumstances or developments could differ materially from those anticipated. Factors that could cause such differences include those set forth in the section entitled “Risk Factors” in Rithm’s most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q filed with the SEC, available at www.sec.gov. The list of factors is not exhaustive and additional risks may affect future results.

More News From Rithm Capital Corp.

Rithm Capital is evolving into a diversified investment firm, expanding its asset management and third-party investment services. RITM's core mortgage servicing rights benefit from a higher-for-longer rate environment, supporting distributable earnings and dividend stability. First-quarter 2026 distributable earnings of $0.51/share covered the $0.25 dividend with a robust 204% coverage ratio.

In the latest close session, Rithm (RITM - Free Report) was up +1.65% at $9.25. The stock's performance was ahead of the S&P 500's daily gain of 0.13%. On the other hand, the Dow registered a gain of 0.45%, and the technology-centric Nasdaq increased by 0.03%.

The real estate investment trust's shares have seen a decrease of 5.6% over the last month, not keeping up with the Finance sector's gain of 0.68% and the S&P 500's gain of 5.25%.

Analysts and investors alike will be keeping a close eye on the performance of Rithm in its upcoming earnings disclosure. The company is predicted to post an EPS of $0.54, indicating constancy compared to the equivalent quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $1.47 billion, showing a 20.68% escalation compared to the year-ago quarter.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $2.27 per share and revenue of $6.04 billion, indicating changes of -3.4% and +37.85%, respectively, compared to the previous year.

Investors should also pay attention to any latest changes in analyst estimates for Rithm. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.44% lower. Rithm currently has a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Rithm has a Forward P/E ratio of 4.01 right now. This represents a discount compared to its industry average Forward P/E of 10.77.

The Financial - Miscellaneous Services industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 108, which puts it in the top 45% of all 250+ industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.

Rithm Capital is a diversified origination, servicing, and asset management company, not a traditional agency-focused mortgage REIT. RITM's income is driven by fee and servicing businesses, with a large MSR portfolio naturally hedging book value against rising rates. The Buy rating is based on a reliable ~11% yield, covered roughly twice by distributable earnings, with discount closure optionality but no near-term catalyst.