Rithm (RITM - Free Report) reported $1.76 billion in revenue for the quarter ended September 2026, representing a year-over-year increase of 58.9%. EPS of $0.55 for the same period compares to $0.54 a year ago.
The reported revenue compares to the Zacks Consensus Estimate of $1.49 billion, representing a surprise of +17.71%. The company delivered an EPS surprise of +7.84%, with the consensus EPS estimate being $0.51.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how Rithm performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Revenues- Interest income: $479.59 million versus the two-analyst average estimate of $491.2 million. The reported number represents a year-over-year change of +5.7%.Revenues- Servicing revenue, net: $716.65 million versus $404.75 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +127.6% change.Revenues- Other residential-related revenue: $51.64 million versus the two-analyst average estimate of $48.23 million. The reported number represents a year-over-year change of -7.2%.Revenues- Asset management revenue: $107.35 million versus the two-analyst average estimate of $136.7 million. The reported number represents a year-over-year change of +26.5%.Revenues- Commercial real estate revenue: $187.04 million versus the two-analyst average estimate of $198.05 million.Revenues- Gain on originated residential mortgage loans, held-for-sale, net: $214.16 million versus the two-analyst average estimate of $232.05 million. The reported number represents a year-over-year change of +9.1%.View all Key Company Metrics for Rithm here>>>
Shares of Rithm have returned -4.8% over the past month versus the Zacks S&P 500 composite's -1.2% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term.
3 Ultra-High Dividend Yield Stocks for the New YearRithm Capital NYSE: RITM reported third-quarter earnings available for distribution of $315 million, or $0.55 per diluted share, while GAAP net income totaled $217 million, or $0.38 per diluted share. Chairman, Chief Executive Officer and President Michael Nierenberg said the company’s earnings available for distribution exceeded dividends paid for the 28th consecutive quarter.
The company reported book value of approximately $7 billion and said its common dividend was $0.25 per diluted share, representing an 11.2% yield cited during the call. Rithm ended the quarter with $1.9 billion of cash and liquidity.
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Nierenberg said the quarter occurred amid wider market spreads, higher interest rates and persistent geopolitical concerns. He attributed the company’s performance to its operating businesses, including mortgage platform Newrez and residential transition lender Genesis, as well as risk management and hedging activities.
Mortgage platform delivers 24% operating ROE Newrez generated approximately $330 million in third-quarter pretax income excluding mark-to-market items, up 7% from the prior quarter, according to Newrez President Baron Silverstein. The mortgage business produced a 24% annualized operating return on equity during the quarter and has delivered annualized operating ROEs in the high teens to low 20% range for 15 consecutive quarters, he said.
Newrez funded $12.9 billion of mortgages during the quarter, down 19% sequentially as higher interest rates reduced overall industry origination volumes. However, non-agency origination volumes rose 8% quarter over quarter and 30% year over year. Rithm said Newrez originated $5.1 billion of non-agency loans year to date, primarily in the non-QM category, a record for that product class.
Silverstein said the company continued to emphasize pricing discipline rather than pursuing market share. He noted that Newrez’s consumer-direct margin improvement reflected product mix, including fewer refinances and more home equity and non-QM loans, while competition continued to pressure wholesale margins.
Newrez’s servicing platform included approximately $879 billion to $880 billion of mortgage servicing rights at quarter-end. The company added 15 new third-party servicing clients and approximately $80 billion of new loan boardings year to date. Silverstein said prepayment speeds were approaching a floor, given normal turnover related to life events and loan seasoning.
Rithm expects technology and artificial intelligence investments to generate approximately $125 million in annualized savings at Newrez. The company said straight-through processing for eligible loans through its HomeVision co-development is expected to launch in the fourth quarter, while phased migration to ValonOS is expected in the first quarter of 2027. Nierenberg said the benefits of those initiatives are expected to begin emerging in 2027 and continue through 2028.
Asset management inflows and expansion plans Rithm said it managed more than $60 billion of third-party assets and roughly $110 billion of investable assets when including its balance sheet. The company raised $569 million of new asset-management capital during the quarter and reported nearly $3 billion of year-to-date gross inflows. Fee-paying assets under management represented about 76% of total AUM.
Nierenberg said Crestline completed the final close of its European Capital Solutions Fund with $625 million of commitments. He also said Rithm completed a first close for a new asset-backed finance fund with a U.S. pension fund and is seeing demand for asset-backed finance, residential credit, separately managed accounts, real estate and multi-strategy products.
The company expects organic asset-management growth to lift AUM to between $75 billion and $80 billion by the end of 2028. Nierenberg said Rithm also continues to evaluate acquisitions and views infrastructure as a potential future area of expansion, though he said the company would seek a scaled platform rather than build the business with only a small team.
Real estate leasing activity accelerates At Elecor Properties, formerly Paramount, Rithm reported approximately 1 million square feet of executed and pending leases year to date across its New York and San Francisco core portfolios. The weighted average initial rent was approximately $100 per square foot, 22% above the comparable rate for 2025 transactions.
Head of Real Estate Peter Brindley said Elecor signed 320,000 square feet of new leases during the quarter and formed a joint venture with a strategic partner for 1301 Avenue of the Americas. The building is currently 100% leased following a 113,000-square-foot renewal and expansion by a financial institution.
Elecor’s New York core portfolio was 88.6% leased at quarter-end. In San Francisco, leased occupancy reached 65%, up 590 basis points from the first quarter of 2026. Brindley said about 65% of the company’s year-to-date leasing occurred in San Francisco, with 96% involving companies new to the portfolio.
Nierenberg also highlighted the sale of an office property in Ballston, Virginia, acquired for approximately $26 million to $27 million and sold during the third quarter for more than $50 million. He said the transaction generated a 30% internal rate of return and a 1.6-times multiple on invested capital.
Genesis targets selective growth Genesis originated $1.5 billion of residential transition loans during the quarter, bringing year-to-date originations to $5 billion and above its full-year 2025 total. The business generated $33 million of pretax income, up 14% year over year, and an annualized ROE of about 13%.
Nierenberg said Genesis expects total production of roughly $6 billion to $6.5 billion, while identifying multifamily lending as a significant longer-term growth opportunity. He emphasized that Genesis is focused on loans to high-quality sponsors rather than volume growth for its own sake, noting that the platform’s delinquency rate was approximately 3%.
During the question-and-answer session, Nierenberg said Rithm expects its book value to be roughly unchanged quarter to date. He said the company intends to deploy its balance sheet selectively, including to support its origination businesses and asset-management products, while bringing in third-party capital for larger opportunities.
About Rithm Capital (NYSE:RITM)Rithm Capital Corp. is a real estate investment trust and financial services company focused primarily on residential real estate and mortgage-related investments. Formerly known as New Residential Investment Corp., the company adopted the Rithm Capital name in 2022.
Through its operating businesses and investment platforms, Rithm participates in mortgage servicing, mortgage origination, residential mortgage loans, mortgage servicing rights and other housing-related assets. Its businesses include Newrez, a mortgage platform that provides home loan origination, servicing and related services, as well as other investments connected to residential real estate and private lending.
Rithm primarily serves the U.S.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
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Rithm (RITM - Free Report) came out with quarterly earnings of $0.55 per share, beating the Zacks Consensus Estimate of $0.51 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 +7.84%. A quarter ago, it was expected that this real estate investment trust would post earnings of $0.5 per share when it actually produced earnings of $0.6, delivering a surprise of +20%.
Over the last four quarters, the company has surpassed consensus EPS estimates three times.
Rithm, which belongs to the Zacks Financial - Miscellaneous Services industry, posted revenues of $1.76 billion for the quarter ended September 2026, surpassing the Zacks Consensus Estimate by 17.71%. This compares to year-ago revenues of $1.11 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 20.4% since the beginning of the year versus the S&P 500's gain of 12%.
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 $0.64 on $1.7 billion in revenues for the coming quarter and $2.25 on $5.85 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 28% 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.
One other stock from the same industry, Axos Financial (AX - Free Report) , is yet to report results for the quarter ended September 2026. The results are expected to be released on October 29.
This bank holding company is expected to post quarterly earnings of $2.25 per share in its upcoming report, which represents a year-over-year change of +8.7%. The consensus EPS estimate for the quarter has been revised 0.4% lower over the last 30 days to the current level.
Axos Financial's revenues are expected to be $386.08 million, up 19.4% from the year-ago quarter.
NEW YORK--(BUSINESS WIRE)--Rithm Capital Corp. (NYSE: RITM; “Rithm Capital,” “Rithm” or the “Company”) today reported the following information for the third quarter ended September 30, 2026. “Rithm's strong third quarter results reflect disciplined execution across every part of our platform,” said Michael Nierenberg, CEO of Rithm Capital. “We continued to scale our asset management business, closing new funds and growing a more durable, fee-based earnings stream, while our operating companies.
Rithm Capital (RITM) has several preferred shares we cover. Today, we're revisiting one that wasn’t in our buy range last time: RITM-C (RITM.PR.C). It wasn't a bad preferred share. It was simply more expensive than other options.
We stated that if the price declined enough, we would be interested in shares.
Well… the price declined.
Apparently, the market decided to give us an attractive offer.
RITM-C is now in our buy range, with a stripped yield around 9.5%. That’s a nice combination from a preferred share carrying a risk rating of 2.5 on our scale from 1 to 5.
RITM-C Hops Into Our Buy Range In our previous article, RITM-C was trading at approximately 101.3% of our buy target.
Here’s how the valuation looks today:
The REIT Forum
RITM-C was recently trading around $24.43. Here’s our price targets:
Strong Buy Under: $23.19
Buy Under: $24.74
Overpriced: $25.53
At $24.43, shares are trading at approximately 98.7% of our buy target. While that’s not a huge discount it’s still decently under our buy under target. Investors buying at this price are also paying less than the call value of $25. That’s a nice change of pace with most of the lower risk preferred shares we cover trading over $25.
However, we're not buying a preferred share just because the price is below $25. We care about risk and relative valuation. A terrible preferred share doesn't magically become a great investment because it trades for $24.99.
9.5% Stripped Yield RITM-C currently offers:
Stripped yield: 9.5%
Current yield: 9.31%
Floating yield on price: 9.83%
Floating spread: 4.969%
The REIT Forum
Given the 2.5 risk rating, those are relatively attractive numbers. RITM-C originally carried a fixed coupon rate of 6.375%. That swapped to a floating rate on 2/15/2025. Rithm's filing states that RITM-C receives:
Three-month CME SOFR
A 0.261% spread adjustment
A 4.969% contractual spread
If short-term interest rates were to decline, RITM-C's dividend would generally decline as well. Investors shouldn't assume they'll continue collecting a yield around 9.5% indefinitely. If short-term rates decline, the dividend will generally decline with them. However, lately the major factor is rates rising. If RITM-C’s rate was reset today, it would drag the stripped yield up to 9.88%. That’s pretty good. It’s not the highest, but it’s pretty good for a risk rating of 2.5 and moderate upside to the call value. Since the rate floats, RITM-C could see the dividend rate increase a couple of times over the next year. 3-month SOFR is strongly correlated to the market’s expectation for the Fed Funds rate over that time. Currently the market believes the Federal Reserve will hike a few times.
Investors also need to consider the call risk. RITM-C is already callable, meaning the company could give a 30-day call notice at any point. However, this isn’t something investors need to be concerned about if they are purchasing shares below the call value of $25. We wouldn't suggest purchasing shares purely on the assumption that management is about to call them and hand you alpha.
What Changed Since Our Last Article The most important change wasn't the underlying company.
It was the price.
We spend a great deal of time comparing preferred shares and baby bonds at The REIT Forum. We recently wrote a guide on swapping preferred shares. The basic concept is simple. When two similar preferred shares get too far apart on valuation, investors can sell the more expensive share and move into the cheaper one.
For readers who want to see how often we actually do this, we also published our most recent 100 trades in preferred shares and baby bonds. We find these opportunities fairly often in the preferred shares of mortgage REITs.
We are always hunting for a better price.
Now we've got one.
This is something we emphasize frequently when discussing preferred shares. Our ratings aren't permanent. They're based on the price investors are paying relative to the risks and potential returns.
If an investment is too expensive, we can wait.
Sometimes the market eventually gives us the price we want.
Other times, it doesn't. That's fine too.
Final Thoughts We still think investors should compare the different preferred shares from Rithm rather than automatically purchasing whichever one happens to have the highest yield. As of writing this article, we believe RITM-C offers the most attractive valuation when compared to other RITM preferred shares. However, that can change very quickly.
RITM-A (RITM.PR.A) and RITM-B (RITM.PR.B) have higher floating spreads than RITM-C. That gives them an advantage if we are only comparing spreads.
RITM-D has a different structure. It's a fixed-rate reset preferred share, so investors need to evaluate its upcoming reset rather than treating it like other floating rate preferred shares that are constantly changing based on the current rate.
RITM-C no longer needs to sit on the sidelines.
We wanted a better price. The market delivered.
We've upgraded RITM-C from hold to buy.
However, I should tell you that presently I have my allocation focused on another share. I’ll be publishing an article about that one pretty soon.
Rithm (RITM - Free Report) ended the recent trading session at $8.44, demonstrating a -2.54% change from the preceding day's closing price. The stock trailed the S&P 500, which registered a daily gain of 0.41%. At the same time, the Dow lost 0.07%, and the tech-heavy Nasdaq gained 1.11%.
Shares of the real estate investment trust witnessed a loss of 7.38% over the previous month, trailing the performance of the Finance sector with its loss of 1.68%, and the S&P 500's gain of 1.46%.
The investment community will be paying close attention to the earnings performance of Rithm in its upcoming release. The company is slated to reveal its earnings on October 23, 2026. The company is forecasted to report an EPS of $0.5, showcasing a 7.41% downward movement from the corresponding quarter of the prior year. Meanwhile, the latest consensus estimate predicts the revenue to be $1.49 billion, indicating a 34.48% increase compared to the same quarter of the previous year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $2.25 per share and a revenue of $5.85 billion, representing changes of -4.26% and +33.44%, respectively, from the prior year.
Any recent changes to analyst estimates for Rithm should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, there's been a 0.59% fall in the Zacks Consensus EPS estimate. As of now, Rithm holds a Zacks Rank of #4 (Sell).
In terms of valuation, Rithm is presently being traded at a Forward P/E ratio of 3.85. This valuation marks a discount compared to its industry average Forward P/E of 10.82.
Also, we should mention that RITM has a PEG ratio of 0.55. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Financial - Miscellaneous Services industry had an average PEG ratio of 0.86 as trading concluded yesterday.
The Financial - Miscellaneous Services industry is part of the Finance sector. Currently, this industry holds a Zacks Industry Rank of 161, positioning it in the bottom 35% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
The October 2026 'Dogs of the Russell 3000' strategy highlights high-yield, fair-priced stocks with analyst-projected net gains up to 81.2% by October 2027. Top ten S-M Russell 3000 stocks offer yields from 10.1% to 19.6%, with all currently trading below projected annual dividends from $1,000 invested. Fifteen out of fifty-one S-M Russell 3000 high-yielders have negative free cash flow margins, signaling caution for dividend sustainability.
Wall Street expects a year-over-year decline in earnings on higher revenues when Rithm (RITM - Free Report) reports results for the quarter ended September 2026. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.
The earnings report, which is expected to be released on October 23, might help the stock move higher if these key numbers are better than expectations. 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 $1.49 billion, up 34.5% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 0.52% 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 -1.34%.
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?While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. 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 $0.5 per share when it actually produced earnings of $0.60, delivering a surprise of +20.00%.
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 PlayerPrimis Financial (FRST - Free Report) , another stock in the Zacks Financial - Miscellaneous Services industry, is expected to report earnings per share of $0.45 for the quarter ended September 2026. This estimate points to a year-over-year change of +60.7%. Revenues for the quarter are expected to be $51.21 million, up 24.9% from the year-ago quarter.
The consensus EPS estimate for Primis Financial has been revised 7.9% higher over the last 30 days to the current level. However, a higher Most Accurate Estimate has resulted in an Earnings ESP of +4.44%.
This Earnings ESP, combined with its Zacks Rank #4 (Sell), makes it difficult to conclusively predict that Primis Financial will beat the consensus EPS estimate. Over the last four quarters, the company surpassed EPS estimates just once.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
NEW YORK--(BUSINESS WIRE)--Rithm Capital Corp. (NYSE: RITM, “Rithm” or the “Company”), a global alternative asset manager, today announced the closing of NRMLT 2026-RTL1, a $375 million securitization backed entirely by multifamily loans originated and serviced by its subsidiary, Genesis Capital, LLC (“Genesis” or “Genesis Capital”). The transaction represents both Genesis's first multifamily-only securitization and the largest multifamily-only residential transition loan (“RTL”) securitization.
NEW YORK--(BUSINESS WIRE)--Rithm Capital Corp. (NYSE: RITM, “Rithm Capital,” “Rithm” or the “Company”) announced today that it will release its third quarter 2026 financial results for the period ended September 30, 2026, on Friday, October 23, 2026, prior to the opening of the New York Stock Exchange. In addition, management will host a conference call that same day at 8:00 a.m. Eastern Time. A copy of the earnings release will be posted to the Shareholders – Events & Presentations section.
Some mortgage REITs have quietly paid the same dividend through recessions, rate shocks, and market chaos, while others with even bigger yields are one bad quarter away from a cut. Knowing which is which changes everything.
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Mortgage REITs hold up in two tough settings. When inflation pushes rates higher, new mortgage assets pay bigger coupons. When a recession hits, government-backed collateral and heavy hedging help keep cash coming in. What separates the safer names is whether earnings actually cover the dividend. Annaly Capital Management (NYSE:NLY) sets the standard here: its earnings available for distribution beat its dividend for the ninth consecutive quarter. Below are five ultra-high-yield names, ranked from the strongest coverage to the one that needs the closest watch.
Annaly Capital Management: A Dividend Raise Backed by Nine Quarters of Coverage Annaly yields 15.6% on a forward annual payout of $3 per share, with the stock at $18.29. Management raised the quarterly dividend to $0.75 from $0.70 after second-quarter earnings available for distribution (EAD) came in at $0.79 per share, ahead of the $0.75 consensus.
Dividend safety: For a mortgage REIT, EAD does the job that free cash flow does for an industrial company. At Annaly, it has covered the payout for nine straight quarters. The balance sheet is run conservatively: economic leverage of 5.6 times, a 97% hedge ratio, and $8 billion in unencumbered assets, including $5.5 billion in cash and unencumbered agency MBS. Book value rose to $20.15 per share. The long-term dividend record includes several cuts. The payout held at $0.65 through 2023 and 2024 before rising to $0.70 and then $0.75.
Bull case: Annaly spreads its capital across agency MBS (57%), residential credit (22%), and mortgage servicing rights (21%). That mix gives protection on both fronts. Government agencies back agency bonds, so borrower defaults in a downturn don’t hit them. Servicing rights carry what management called “virtually no prepayment risk.” The agency portfolio’s weighted average coupon rose to 5.11%, so higher rates are already adding to income. On the earnings call, management said: “So generally, we feel very good about dividend coverage on a go-forward basis.”
Risk: The shares fell 16.62% over the past month. Even when the dividend holds, the share price moves with mortgage spreads and rate expectations.
Rithm Capital: The Widest Coverage Cushion in the Group Rithm Capital (NYSE:RITM) yields 11.5%, the lowest yield here, on an annual payout of $1 per share. The stock trades at $8.66.
Dividend safety: Second-quarter distributable earnings reached $0.60 per diluted share, beating the $0.50 consensus and easily covering the $0.25 quarterly dividend. Shareholders’ equity stands at $9.05 billion against $54.1 billion in total assets. The stock trades at 0.764 times book and a forward P/E of 4x. The dividend has been $0.25 every quarter since 2022. That came after a cut to $0.05 in 2020 and a steady rebuild.
Bull case: Rithm earns money from several businesses: originating and servicing loans, managing assets and lending, so it depends far less on interest spreads than a pure bond portfolio does. Assets under management reached $61 billion. Newrez posted a 22% annualized operating ROE, and Genesis Capital had a record quarter with $1.9 billion in originations, up 52% year over year. Rithm’s chief executive said in the second-quarter release that “every pillar of our platform is performing.” Analysts agree: four rate it a Strong Buy, seven a Buy, and none a Hold, with a consensus price target of $13.15.
Risk: Swings in servicing-rights values can wipe out GAAP earnings. For example, Rithm’s GAAP net income fell to $0.04 per share after $194.50 million in servicing-rights mark-to-market losses as rates declined.
AGNC Investment: 75 Straight Months of the Same Paycheck AGNC Investment (NASDAQ:AGNC) yields 16.4% and pays $0.12 per share monthly ($1.44 a year), with the stock at $8.66.
Dividend safety: Second-quarter EPS of $0.40 beat the $0.38 consensus and topped the 36 cents per share in dividends declared for the quarter. Management marked the 75th consecutive monthly dividend payment of 12 cents per share. Leverage averaged 7.4 times tangible equity, backed by $7.5 billion in unencumbered cash and agency MBS. Tangible book value rose 2.4% to $8.58. Over the long run, the monthly rate has come down from $0.22 in 2014 to today’s level.
Bull case: AGNC owns only agency MBS, which are backed by government agencies, so a recession doesn’t raise credit losses on the portfolio. The net interest spread stands at 2.00%. The company’s chief executive tied current returns directly to the dividend: “you’re getting ROEs when you’re leveraging them the way we leverage them at seven or seven and a half times, probably in the 15 to 17% range. So that aligns really well with the economics of our dividend.”
Risk: Book value can fall fast when spreads widen. In the first quarter, tangible book value dropped 5.6%, and the economic return was −1.6% after geopolitical shocks.
Starwood Property Trust: A $0.48 Dividend That Held Through 2020 Starwood Property Trust (NASDAQ:STWD) yields 14.8% on an annual payout of $1.92, with the stock at $12.95.
Dividend safety: No company here has a steadier payout record. Starwood has paid $0.48 every quarter from 2014 through its latest payment, with no cuts, including all four payments in 2020. Second-quarter distributable earnings came in at $0.40 per share, in line with estimates. Shareholders’ equity totals $6.50 billion. The average maturity of corporate debt was extended to 3.7 years, and the company repurchased $30 million of stock in the first half of the year. Shares trade at 0.837 times book and a forward P/E of 10x.
Bull case: The $17.3 billion commercial loan book gives Starwood scale. The company had deployed $6.7 billion at double-digit returns on equity through July. Chief Executive Barry Sternlicht said in the second-quarter release: “We expect to resolve nearly $900 million of underperforming assets by year-end or shortly thereafter, returning the trapped equity to higher use cases.” Analysts’ price target is $19.88.
Risk: Distributable earnings currently fall short of the $0.48 dividend. That gap needs to close as legacy assets are resolved, and the stock is down 21.22% year to date.
PennyMac Mortgage Investment Trust: The Biggest Yield Demands the Most Scrutiny PennyMac Mortgage Investment Trust (NYSE:PMT) yields 20.3% on an annual payout of $1.60, with the stock at $8.03.
Dividend safety: Coverage is the weakest in this group. Second-quarter EPS of $0.23 missed the $0.30 consensus and fell short of the $0.40 quarterly dividend. Management’s projected run rate of about $0.33 per quarter is still below the payout. Debt-to-equity leverage is 12.4x, liquidity is $517 million, and book value slipped to $14.83. The stock trades at 0.58 times book. The dividend was cut from $0.47 to $0.25 in 2020, then reset to $0.40 in 2023.
Bull case: PennyMac is selling $13 billion in unpaid principal of low-coupon agency servicing rights. It is redeploying that capital into private-label securitization bonds that target low- to mid-teens returns on equity. The fair value of its subordinate bonds rose 16% quarter over quarter to $853 million. The company’s chief executive described the goal as an effort to “strengthen the overall earnings power of our portfolio.”
Risk: If the shift into private-label credit takes longer than planned, a dividend cut is possible.
Coverage Separates Durable Income From Yield Traps Annaly and Rithm offer the cleanest coverage, with earnings above their dividends and diversified businesses that can handle both rising and falling rates. AGNC brings government-backed collateral and 75 months of identical monthly checks. Starwood’s payout has held for more than a decade but now depends on resolving legacy loans, and PennyMac’s 20.3% yield only holds up if its new strategy closes the earnings gap. A double-digit yield usually means the market suspects something, and we laid out the seven warning signs that confirm a cut is coming in a free dividend trap guide.
Contact [email protected] for any questions or corrections.
BELLINGHAM, Wash. & FORT WASHINGTON, Pa., Oct. 08, 2026 (GLOBE NEWSWIRE) -- eXp Realty®, the most agent-centric™ real estate brokerage on the planet and the core subsidiary of AGNT, Inc. (Nasdaq: AGNT), and Newrez, a leading homeownership company and one of the nation’s five largest nonbank mortgage lenders and primary mortgage servicers, today unveiled Revenos Mortgage, powered by Newrez, a new mortgage joint venture designed to serve eXp Realty agents and their clients. Announced at eXpcon in Salt Lake City, the joint venture brings together eXp’s national brokerage scale and agent network with Newrez’s mortgage expertise and servicing capabilities.
“What matters most in a real estate transaction is the agent-client relationship, and Revenos Mortgage is being built around that,” said Leo Pareja, CEO of eXp Realty. “eXp has always bet on creating infrastructure that gives our agents an edge no other brokerage can match. Revenos Mortgage is the next piece of that vision. Bringing Newrez’s lending support and technology, as a top originator and servicer in the country, into our ecosystem is how we build the connected future of real estate, finance, and technology, together.”
“Revenos Mortgage represents the next evolution of our local market strategy,” said Baron Silverstein, President of Newrez. “By combining eXp’s trusted local market expertise and Newrez's scaled mortgage platform, including a broad range of lending solutions, technology, and servicing capabilities, we can better support buyers throughout the homeownership journey. Together, we can provide value at every step and remain a trusted resource for homeowners long after the initial transaction is complete.”
Bringing Newrez’s mortgage and eXp’s real estate expertise together, the new joint venture, Revenos Mortgage, aims to create a more seamless homebuying experience from application through closing and beyond. This exciting partnership gives agents the products, expertise, and tools to support their clients, connecting them with financing and providing reliable, ongoing service as their needs evolve throughout the life of the loan.
eXp Realty and Newrez are working to integrate their platforms ahead of the planned launch of Revenos Mortgage in early 2027. Additional details will be shared in the coming months.
About AGNT, Inc.
Built by Agents. Built for Agents. AGNT, Inc. (Nasdaq: AGNT) is the global parent company of eXp Realty®, the most agent-centric™ real estate brokerage on the planet, NextHome, Inc., an award-winning national real estate franchise, FrameVR.io, a virtual collaboration platform, and SUCCESS® Enterprises, a leading personal development and media brand for entrepreneurs. Together, the AGNT platform provides a world-class multi-model operating system empowering independent agents, franchise owners, and team leaders across the Americas, Europe, the Middle East, Asia Pacific, and South Africa. As a publicly traded company, AGNT prioritizes transparency, innovation, and long-term value for agents, franchise owners, staff, and shareholders.
About Newrez
Newrez LLC (“Newrez”), a Rithm Capital Corp. (NYSE: RITM) company, is a top five nonbank mortgage lender and primary mortgage servicer, according to Inside Mortgage Finance®, dedicated to providing a customer-first experience throughout the homeownership journey. Newrez offers industry-leading servicing capabilities, delivering for homeowner customers from the Newrez portfolio and those of its third-party customers, as well as a robust origination model with presence in the wholesale, correspondent, consumer direct, and joint venture verticals. Newrez's mission is “to do everything possible to make home happen” through a wide array of products and services. Newrez was established in 2008 and is headquartered in Fort Washington, PA. To learn more about Newrez, visit www.newrez.com.
Safe Harbor and Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements made on behalf of AGNT, Inc. (“AGNT”) and Rithm Capital Corp. (“RITM”). Statements attributed to AGNT and its subsidiary, eXp Realty, LLC, reflect AGNT’s and its management’s current expectations, and statements attributed to RITM and its subsidiary Newrez LLC reflect RITM’s and its management’s current expectations; in each case, these statements involve known and unknown risks and uncertainties that could cause actual results to differ materially. These statements include, but are not limited to, statements regarding the anticipated scope, timing, and benefits of the partnership between eXp Realty and Newrez, including the broader lending and technology relationship described above; eXp Realty’s market position, agent and team performance, and ability to attract and retain top-producing agents in competitive housing markets; and Newrez’s mortgage origination and servicing business and its ability to support the partnership as anticipated. Important factors that may cause actual results to differ materially and adversely from those expressed in forward-looking statements include the parties’ ability to realize the anticipated benefits of the partnership on the timeline or in the manner anticipated, or at all; the ability to finalize the broader lending and technology relationship; real estate and mortgage market fluctuations, including changes in interest rates; changes in agent retention or recruitment, regulatory changes, and other risks detailed in AGNT’s and RITM’s respective filings with the Securities and Exchange Commission, including but not limited to each company’s most recently filed Quarterly Reports on Form 10-Q and Annual Report on Form 10-K. Neither AGNT nor RITM undertakes any obligation to update these statements except as required by law.
All trademarks are the property of their respective owners.
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/2d6ec81d-d6e3-4304-b909-4cc6dbb8573b
NEW YORK--(BUSINESS WIRE)-- #creditratingagency--KBRA assigns preliminary ratings to 10 classes of mortgage-backed notes from New Residential Mortgage Loan Trust 2026-NQM10 (NRMLT 2026-NQM10), a $494.0 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 (56.6%). In addition, all loans will be serviced by S.
NEW YORK--(BUSINESS WIRE)--Rithm Capital Corp. (NYSE: RITM) (“Rithm”), a global alternative asset manager, today announced the closing of a joint venture with a fund managed by DRA Advisors LLC (“DRA”) for the ownership of 1301 Avenue of the Americas, one of the flagship assets in the New York City office portfolio of Elecor Properties (“Elecor”), Rithm's real estate operating platform. Rithm, through Elecor, will continue to hold majority ownership of the asset and operate the building on beha.
In the latest close session, Rithm (RITM - Free Report) was down 2.08% at $8.93. The stock trailed the S&P 500, which registered a daily loss of 0.25%. On the other hand, the Dow registered a loss of 0.86%, and the technology-centric Nasdaq increased by 0.24%.
The stock of real estate investment trust has fallen by 7.79% in the past month, lagging the Finance sector's loss of 4.43% and the S&P 500's loss of 0.42%.
Market participants will be closely following the financial results of Rithm in its upcoming release. On that day, Rithm is projected to report earnings of $0.51 per share, which would represent a year-over-year decline of 5.56%. At the same time, our most recent consensus estimate is projecting a revenue of $1.47 billion, reflecting a 33.3% rise from the equivalent quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $2.26 per share and a revenue of $5.84 billion, indicating changes of -3.83% and +33.21%, respectively, from the former 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. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Right now, Rithm possesses a Zacks Rank of #2 (Buy).
Valuation is also important, so investors should note that Rithm has a Forward P/E ratio of 4.04 right now. This valuation marks a discount compared to its industry average Forward P/E of 11.02.
Investors should also note that RITM has a PEG ratio of 0.58 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. Financial - Miscellaneous Services stocks are, on average, holding a PEG ratio of 0.97 based on yesterday's closing prices.
The Financial - Miscellaneous Services industry is part of the Finance sector. Currently, this industry holds a Zacks Industry Rank of 101, positioning it in the top 42% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
SummaryRithm Capital Corp. offers six preferred stocks, with this analysis focused on Series D, E, and F, which are not yet callable.RITM’s preferred dividend coverage has declined post-COVID, with net income to preferred dividends now at 5.4x, but it remains adequate for risk assessment.The company’s portfolio is diversified across residential mortgage loans, consumer loans, MSRs, single-family rentals, business purpose loans, and structured products.Investors can choose among RITM’s preferreds based on fixed vs. floating rates, call protection, and coupon structure to tailor risk and yield exposure.I like the yield on the RITM Series E, and its recent price drop earns it a Buy rating over the Series F with the same coupon but a pending floating rate.Looking for more investing ideas like this one? Get them exclusively at iREIT®+HOYA Capital. Learn More » Andrzej Rostek/iStock via Getty Images
Introduction There are many Seeking Alpha followers of Rithm Capital Corp. (RITM). Along with the common stock, they offer investors six preferred stocks to pick from. For what I felt would be better analysis, I split
9.44K Followers
Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
Investors interested in Financial - Miscellaneous Services stocks are likely familiar with Rithm (RITM - Free Report) and Brookfield Asset Management (BAM - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Currently, Rithm has a Zacks Rank of #2 (Buy), while Brookfield Asset Management has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that RITM likely has seen a stronger improvement to its earnings outlook than BAM has recently. But this is just one factor that value investors are interested in.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
RITM currently has a forward P/E ratio of 4.02, while BAM has a forward P/E of 24.09. We also note that RITM has a PEG ratio of 0.57. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. BAM currently has a PEG ratio of 1.75.
Another notable valuation metric for RITM is its P/B ratio of 0.68. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, BAM has a P/B of 7.93.
Based on these metrics and many more, RITM holds a Value grade of B, while BAM has a Value grade of F.
RITM has seen stronger estimate revision activity and sports more attractive valuation metrics than BAM, so it seems like value investors will conclude that RITM is the superior option right now.
This article compares RITM's recent dividend per share rates, yield percentages, and several dividend sustainability metrics to 16 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 Q4 2026 – Q1 2027 (including specific per share amounts).
Key Takeaways S&P upgraded Rithm Capital's issuer credit rating to 'B ' from 'B', with a stable outlook.RITM's nonmortgage businesses reached nearly 33% of stockholders' equity and revenue as of June 2026.Newrez generated $581 million in first-half 2026 pretax income, up 7% year over year. S&P Global Ratings (S&P) upgraded the issuer credit rating of Rithm Capital Corp. (RITM - Free Report) to ‘B+’ from ‘B’, while maintaining a stable outlook. S&P also raised the rating on Rithm Capital’s senior unsecured notes to ‘B’ from ‘B-’.
The upgrade reflects RITM's continued efforts to scale and diversify its earnings streams through its asset management, residential transitional lending (RTL) and commercial real estate businesses. Meanwhile, the company's mortgage finance subsidiary, Newrez, has maintained stable earnings despite a challenging macroeconomic environment, supporting the rating action.
Why S&P Upgraded RITM's RatingDiversification Supports Earnings: Rithm Capital has continued to expand its nonmortgage finance businesses, increasing their contribution to the company’s overall business mix. As of June 30, 2026, asset management, RTLs and commercial real estate accounted for nearly 33% of the company’s stockholders’ equity and total revenues compared with 9% and 13%, respectively, for nonmortgage finance operations at 2022-end.
S&P expects continued growth in these businesses to drive higher contributions from management fees, net interest income and rental revenue. This is expected to reduce RITM’s reliance on mortgage finance operations and further diversify its earnings base.
Expanding Asset Management and RTL Businesses: The company’s asset management platform continued to expand, with assets under management (AUM) reaching approximately $61 billion as of June 30, 2026, up from $34 billion at 2024-end. Growth was supported by the acquisition of Crestline and organic expansion. While the platform’s earnings contribution remains modest due to its high-cost base, S&P expects higher AUM to improve operating leverage and support margin expansion.
Its Genesis platform, acquired in December 2021, also continued to expand its RTL business. The RTL loan portfolio increased to $3.8 billion as of June 30, 2026, from $2.7 billion at 2025-end. The business generated $60 million in pretax income in the first half of 2026, up from $41 million in the prior-year period, reflecting continued demand from institutional sponsors in the single-family and multifamily markets.
Its asset quality also remains stable, with past-due loans accounting for 2.5% of total unpaid principal balance as of June 30, 2026, compared with 3.7% at 2025-end. Going forward, S&P expects Rithm Capital to increasingly use third-party capital to fund originations, allowing the company to expand its asset management platform while reducing capital intensity.
Newrez Provides Stable Earnings: The company’s mortgage finance subsidiary, Newrez, continues to support its earnings profile despite challenging economic conditions. In the first half of 2026, Newrez generated approximately $581 million in pretax income, excluding mortgage servicing rights mark-to-market and hedging results, up 7% from the same period in 2025.
The improvement was driven by higher origination volumes and stable servicing revenue. Although Newrez incurred significant hedging losses in the second quarter of 2026 amid elevated interest-rate volatility, S&P expects some of these losses to reverse in the third quarter.
Looking ahead, high mortgage rates could continue to pressure mortgage origination volumes, particularly in the refinance market, while intensifying competition across the industry. Nevertheless, S&P expects Newrez to maintain relatively stable earnings through the interest-rate cycle, supported by disciplined origination pricing, favorable economics from its low-coupon servicing portfolio and ongoing cost-reduction initiatives.
Healthy Leverage and Liquidity Position: The company’s leverage remains within S&P’s expected range of 4.5X-6.5X on a sustained basis, with the debt-to-adjusted total equity (ATE) ratio at 5.7X as of June 30, 2026, up from 5.4X at 2025-end. The increase was primarily driven by higher asset-backed securities debt as the company expanded its securitization activities.
Meanwhile, liquidity remains adequate, with approximately $1.7 billion of cash and cash equivalents and another $400 million of available committed funding capacity as of June 30, 2026. S&P noted that RITM remains in compliance with its financial covenants and regulatory liquidity and net worth requirements, with adequate cushions. The company also has no unsecured debt maturities until 2029, providing additional funding flexibility.
Factors Influencing Future Ratings of RITMThe stable outlook reflects S&P's expectation that Rithm Capital will continue to increase its scale and business diversification while maintaining stable earnings and adequate liquidity. The agency expects debt to ATE to remain within the 4.5X-6.5X range.
However, rating pressure could emerge if RITM faces difficulty renewing funding facilities, increases its reliance on secured funding, allows debt-to-ATE to rise above 6.5X or shifts toward materially riskier assets. Conversely, an upgrade could become possible if it maintains access to funding, reduces reliance on secured financing, keeps debt-to-ATE below 4.5X and maintains a diversified asset mix, along with stable earnings and adequate liquidity.
RITM’s Price Performance & Zacks RankRITM shares have lost 0.7% in the past six months against the industry’s growth of 9.5%.
Image Source: Zacks Investment Research
At present, RITM carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Rating Action on Other BanksSimilar to RITM, in September 2026, S&P Global Ratings also upgraded the long-term issuer credit rating of Capital One Financial Corp. (COF - Free Report) to ‘BBB+’ from ‘BBB’, while maintaining a stable outlook. S&P also raised the long-term issuer credit rating of Capital One N.A. to ‘A-’ from ‘BBB+’ and affirmed its short-term issuer credit rating at ‘A-2’.
The upgrade reflects COF’s stronger franchise and progress in integrating Discover. S&P expects the acquisition to support card purchase volumes, fee income and revenue stability, while its auto-lending and corporate finance businesses provide additional diversification.
In the same month, Citizens Financial Group, Inc. (CFG - Free Report) announced that Fitch Ratings upgraded its and Citizens Bank N.A.'s long-term issuer default ratings (IDRs) to ‘A-’ from ‘BBB+’, while maintaining a stable outlook. Fitch also upgraded the companies’ viability ratings to ‘a-’ from ‘bbb+’ and affirmed their short-term IDRs at ‘F1’.
The upgrade reflects sustained improvements in earnings and profitability, supported by asset repricing, stable credit costs and growth in fee-generating businesses. Fitch also cited CFG’s diversified business model, strong deposit franchise, adequate capital and stable asset quality.
Rithm Capital Corp. offers six preferred stocks; this article focuses on the three currently callable series: A, B, and C. Recent FOMC rate hikes have increased RITM's cost of capital, raising the likelihood of preferred stock calls, especially for Series A and B. Series C, RITM.PR.C, maintains a Buy rating due to its relative yield, call protection, and risk/reward profile despite yielding 50-60 bps less than series A and B.
In the latest trading session, Rithm (RITM - Free Report) closed at $9.55, marking a +2.14% move from the previous day. The stock exceeded the S&P 500, which registered a gain of 1.49% for the day. On the other hand, the Dow registered a gain of 0.71%, and the technology-centric Nasdaq increased by 2.26%.
Coming into today, shares of the real estate investment trust had lost 8.24% in the past month. In that same time, the Finance sector lost 2.25%, while the S&P 500 gained 0.1%.
The investment community will be closely monitoring the performance of Rithm in its forthcoming earnings report. The company's earnings per share (EPS) are projected to be $0.51, reflecting a 5.56% decrease from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.47 billion, up 33.3% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $2.26 per share and revenue of $5.84 billion, indicating changes of -3.83% and +33.21%, respectively, compared to the previous year.
Investors should also take note of any recent adjustments to analyst estimates for Rithm. These recent revisions tend to reflect the evolving nature of short-term business trends. 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 exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Rithm currently has a Zacks Rank of #3 (Hold).
With respect to valuation, Rithm is currently being traded at a Forward P/E ratio of 4.14. This represents a discount compared to its industry average Forward P/E of 11.61.
It's also important to note that RITM currently trades at a PEG ratio of 0.59. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. As the market closed yesterday, the Financial - Miscellaneous Services industry was having an average PEG ratio of 0.97.
The Financial - Miscellaneous Services industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 156, which puts it in the bottom 37% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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 third 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 third quarter 2026. The third quarter common stock dividend is payable on October 30, 2026, to shareholders of record on October 1, 2026. Preferred Stock Dividends In accordance w.
NEW YORK--(BUSINESS WIRE)--Rithm Capital Corp. (NYSE: RITM, “Rithm” or the “Company”), a global alternative asset manager, today announced that Ann DeVries has joined the firm as Head of Investor Relations. In this role, Ms. DeVries will lead the development and execution of Rithm's investor relations strategy, overseeing engagement with current and prospective shareholders and the sell-side analyst community. Working closely with senior leadership and teams across the platform, she will commun.
The top ten SML Russell MHFS dogs are forecasted to deliver average net gains of 40.06% by September 2027, with yields up to 22.18%. All top-ten yielders are ideally priced, with annual dividends from $1K invested exceeding single share prices, meeting the 'dividend dog' standard. Fifteen of fifty-one SML Russell MHFS stocks show negative free cash flow margins, making their dividends less secure and riskier for income-focused investors.
Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?
Let's take a look at what these Wall Street heavyweights have to say about Rithm (RITM - Free Report) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.
Rithm currently has an average brokerage recommendation (ABR) of 1.36, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 11 brokerage firms. An ABR of 1.36 approximates between Strong Buy and Buy.
Of the 11 recommendations that derive the current ABR, eight are Strong Buy and two are Buy. Strong Buy and Buy respectively account for 72.7% and 18.2% of all recommendations.
Brokerage Recommendation Trends for RITM
Check price target & stock forecast for Rithm here>>>
While the ABR calls for buying Rithm, it may not be wise to make an investment decision solely based on this information. Several studies have shown limited to no success of brokerage recommendations in guiding investors to pick stocks with the best price increase potential.
Do you wonder why? As a result of the vested interest of brokerage firms in a stock they cover, their analysts tend to rate it with a strong positive bias. According to our research, brokerage firms assign five "Strong Buy" recommendations for every "Strong Sell" recommendation.
In other words, their interests aren't always aligned with retail investors, rarely indicating where the price of a stock could actually be heading. Therefore, the best use of this information could be validating your own research or an indicator that has proven to be highly successful in predicting a stock's price movement.
Zacks Rank, our proprietary stock rating tool with an impressive externally audited track record, categorizes stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), and is an effective indicator of a stock's price performance in the near future. Therefore, using the ABR to validate the Zacks Rank could be an efficient way of making a profitable investment decision.
Zacks Rank Should Not Be Confused With ABRIn spite of the fact that Zacks Rank and ABR both appear on a scale from 1 to 5, they are two completely different measures.
The ABR is calculated solely based on brokerage recommendations and is typically displayed with decimals (example: 1.28). In contrast, the Zacks Rank is a quantitative model allowing investors to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
It has been and continues to be the case that analysts employed by brokerage firms are overly optimistic with their recommendations. Because of their employers' vested interests, these analysts issue more favorable ratings than their research would support, misguiding investors far more often than helping them.
On the other hand, earnings estimate revisions are at the core of the Zacks Rank. And empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
Furthermore, the different grades of the Zacks Rank are applied proportionately across all stocks for which brokerage analysts provide earnings estimates for the current year. In other words, at all times, this tool maintains a balance among the five ranks it assigns.
Another key difference between the ABR and Zacks Rank is freshness. The ABR is not necessarily up-to-date when you look at it. But, since brokerage analysts keep revising their earnings estimates to account for a company's changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in indicating future price movements.
Is RITM a Good Investment?Looking at the earnings estimate revisions for Rithm, the Zacks Consensus Estimate for the current year has remained unchanged over the past month at $2.26.
Analysts' steady views regarding the company's earnings prospects, as indicated by an unchanged consensus estimate, could be a legitimate reason for the stock to perform in line with the broader market in the near term.
The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Rithm. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
It may therefore be prudent to be a little cautious with the Buy-equivalent ABR for Rithm.
In the latest close session, Rithm (RITM - Free Report) was down 2.05% at $9.57. The stock's performance was behind the S&P 500's daily loss of 0.45%. On the other hand, the Dow registered a loss of 0.63%, and the technology-centric Nasdaq decreased by 0.78%.
Heading into today, shares of the real estate investment trust had lost 4.78% over the past month, lagging the Finance sector's loss of 2.1% and the S&P 500's loss of 1.99%.
Market participants will be closely following the financial results of Rithm in its upcoming release. The company is forecasted to report an EPS of $0.51, showcasing a 5.56% downward movement from the corresponding quarter of the prior year. Alongside, our most recent consensus estimate is anticipating revenue of $1.47 billion, indicating a 33.3% upward movement from the same quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $2.26 per share and a revenue of $5.84 billion, representing changes of -3.83% and +33.21%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Rithm. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Rithm currently has a Zacks Rank of #3 (Hold).
Looking at valuation, Rithm is presently trading at a Forward P/E ratio of 4.32. This represents a discount compared to its industry average Forward P/E of 11.74.
It is also worth noting that RITM currently has a PEG ratio of 0.62. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. As the market closed yesterday, the Financial - Miscellaneous Services industry was having an average PEG ratio of 1.08.
The Financial - Miscellaneous Services industry is part of the Finance sector. At present, this industry carries a Zacks Industry Rank of 159, placing it within the bottom 36% of over 250 industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
Part 1 of this article compares Rithm Capital Corp.'s recent investment composition, leverage, hedging coverage ratio, quarterly BV, economic return (loss), and current valuation to 16 mREIT peers. Due to what has occurred during Q3 2026 (fluctuating rates/yields), understanding the composition of RITM's MSR/investment and derivatives portfolio is crucial in understanding current/future performance. My current RITM BV projection and updated price target are in the "Conclusions Drawn" section. With the recent sector sell-off, RITM is currently deemed notably undervalued (strong buy recommendation).
ARLINGTON, Va.--(BUSINESS WIRE)--Rithm Capital Corp. (“Rithm”), GreenBarn Investment Group (“GreenBarn”) and FarmViewVentures (“FarmView”) today announced the $56.25 million sale of 4075 Wilson Boulevard, a 188,014-square-foot Class A office property in Arlington's Ballston submarket, to Piedmont Realty Trust, Inc. The sale marks the culmination of a successful repositioning strategy undertaken by Rithm, GreenBarn and FarmView since acquiring the property in September 2024. During their ownersh.
Rithm's 10% dividend yield and 0.76x book valuation offer an attractive income opportunity. Sticky mortgage servicing earnings and growing asset management fees underpin the bullish thesis. Cumulative preferreds yield up to 9.8%, though hedging losses and narrowing coverage warrant monitoring.
Rithm (RITM - Free Report) ended the recent trading session at $9.95, demonstrating a -1.29% change from the preceding day's closing price. The stock's performance was behind the S&P 500's daily loss of 0.58%. Meanwhile, the Dow lost 1.18%, and the Nasdaq, a tech-heavy index, lost 0.32%.
Prior to today's trading, shares of the real estate investment trust had lost 0.3% lagged the Finance sector's gain of 0.23% and was narrower than the S&P 500's loss of 0.36%.
Analysts and investors alike will be keeping a close eye on the performance of Rithm in its upcoming earnings disclosure. The company's upcoming EPS is projected at $0.51, signifying a 5.56% drop compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $1.47 billion, indicating a 33.3% increase compared to the same quarter of the previous year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $2.26 per share and a revenue of $5.84 billion, signifying shifts of -3.83% and +33.21%, respectively, from the last year.
It is also important to note the recent changes to analyst estimates for Rithm. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, there's been a 1.8% rise in the Zacks Consensus EPS estimate. Rithm is holding a Zacks Rank of #3 (Hold) right now.
Looking at valuation, Rithm is presently trading at a Forward P/E ratio of 4.46. This valuation marks a discount compared to its industry average Forward P/E of 11.91.
One should further note that RITM currently holds a PEG ratio of 0.64. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. As the market closed yesterday, the Financial - Miscellaneous Services industry was having an average PEG ratio of 1.12.
The Financial - Miscellaneous Services industry is part of the Finance sector. This industry, currently bearing a Zacks Industry Rank of 157, finds itself in the bottom 37% echelons 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.
Public Employees Retirement System of Ohio bought a new position in shares of Rithm Capital Corp. (NYSE:RITM – Free Report) during the second quarter, according to its most recent filing with the SEC. The fund bought 158,510 shares of the real estate investment trust’s stock, valued at approximately $1,488,000.
A number of other hedge funds and other institutional investors also recently made changes to their positions in the stock. Curi Capital LLC raised its holdings in Rithm Capital by 0.7% in the 2nd quarter. Curi Capital LLC now owns 120,262 shares of the real estate investment trust’s stock worth $1,358,000 after purchasing an additional 829 shares in the last quarter. Geneos Wealth Management Inc. lifted its position in shares of Rithm Capital by 14.3% in the 1st quarter. Geneos Wealth Management Inc. now owns 7,031 shares of the real estate investment trust’s stock worth $81,000 after purchasing an additional 881 shares during the period. Fort Sheridan Advisors LLC boosted its stake in shares of Rithm Capital by 0.3% during the 4th quarter. Fort Sheridan Advisors LLC now owns 367,164 shares of the real estate investment trust’s stock valued at $4,002,000 after purchasing an additional 1,000 shares in the last quarter. Essex Financial Services Inc. boosted its stake in shares of Rithm Capital by 5.5% during the 4th quarter. Essex Financial Services Inc. now owns 19,699 shares of the real estate investment trust’s stock valued at $215,000 after purchasing an additional 1,021 shares in the last quarter. Finally, Meridian Financial Partners LLC increased its position in shares of Rithm Capital by 1.1% during the fourth quarter. Meridian Financial Partners LLC now owns 94,034 shares of the real estate investment trust’s stock valued at $1,105,000 after buying an additional 1,042 shares during the period. 44.92% of the stock is owned by hedge funds and other institutional investors.
Analyst Ratings Changes RITM has been the subject of a number of research reports. Citigroup reissued an “outperform” rating on shares of Rithm Capital in a research note on Wednesday, May 20th. Piper Sandler cut their price objective on Rithm Capital from $14.00 to $12.50 and set an “overweight” rating on the stock in a research report on Thursday, July 2nd. Wall Street Zen upgraded Rithm Capital from a “sell” rating to a “hold” rating in a report on Saturday, August 1st. BTIG Research decreased their target price on Rithm Capital from $16.00 to $13.00 and set a “buy” rating for the company in a research report on Tuesday, June 16th. Finally, Compass Point initiated coverage on Rithm Capital in a research note on Monday, June 8th. They issued a “buy” rating and a $14.00 target price for the company. Ten research analysts have rated the stock with a Buy rating and one has given a Hold rating to the company’s stock. According to data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average price target of $13.15.
Get Our Latest Stock Report on RITM Insider Activity In other news, Director Peggy Hebard sold 14,520 shares of the business’s stock in a transaction that occurred on Thursday, August 20th. The stock was sold at an average price of $10.18, for a total value of $147,813.60. Following the sale, the director directly owned 82,259 shares of the company’s stock, valued at $837,396.62. The trade was a 15.00% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Insiders own 0.57% of the company’s stock.
Rithm Capital Stock Up 0.2% Shares of Rithm Capital stock opened at $10.10 on Tuesday. The company has a debt-to-equity ratio of 2.19, a current ratio of 0.76 and a quick ratio of 0.76. The company has a 50-day moving average of $9.75 and a 200 day moving average of $9.64. The firm has a market cap of $5.64 billion, a price-to-earnings ratio of 16.83, a PEG ratio of 0.64 and a beta of 1.12. Rithm Capital Corp. has a 1 year low of $8.43 and a 1 year high of $12.74.
Rithm Capital (NYSE:RITM – Get Free Report) last posted its quarterly earnings data on Tuesday, July 28th. The real estate investment trust reported $0.60 EPS for the quarter, topping the consensus estimate of $0.50 by $0.10. Rithm Capital had a net margin of 9.20% and a return on equity of 19.86%. As a group, sell-side analysts anticipate that Rithm Capital Corp. will post 2.26 earnings per share for the current fiscal year.
Rithm Capital Announces Dividend The firm also recently announced a quarterly dividend, which was paid on Friday, July 31st. Stockholders of record on Thursday, July 2nd were issued a dividend of $0.25 per share. This represents a $1.00 annualized dividend and a dividend yield of 9.9%. The ex-dividend date was Thursday, July 2nd. Rithm Capital’s dividend payout ratio (DPR) is presently 166.67%.
About Rithm Capital (Free Report)
Rithm Capital Corporation is a specialty finance company that originates, acquires and manages structured credit investments collateralized by real estate assets in the United States. The company focuses primarily on senior floating-rate loans secured by multifamily, commercial, industrial and single-family rental properties, aiming to deliver attractive risk-adjusted yields through a diversified portfolio of floating-rate real estate debt.
In addition to senior loans, Rithm Capital invests in residential mortgage-backed securities, including agency and non-agency pools, as well as other real estate-related credit instruments.
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A month has gone by since the last earnings report for Rithm (RITM - Free Report) . Shares have added about 0.9% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Rithm due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Rithm Capital Q2 Earnings Beat Estimates, Revenues Up Y/YRithm Capital posted second-quarter 2026 earnings available for distribution of 60 cents per share, beating the Zacks Consensus Estimate of 50 cents. The figure increased 11.1% from 54 cents in the prior-year quarter.
Quarterly results reflected higher asset management revenues, interest income and commercial real estate revenues. Strong residential transitional lending originations were other positives. However, lower servicing revenues and higher operating expenses were the undermining factors.
Net income attributable to common stockholders (GAAP) was $20.2 million, down 92.9% from $283.9 million in the prior-year quarter.
Revenues & Expenses Increase
Total revenues were $1.28 billion, up 5.4% year over year. The metric missed the Zacks Consensus Estimate of $1.46 billion by 12.1%.
Rithm Capital’s total operating expenses were $1.28 billion, up 34% year over year.
Segment Performance & Business Momentum
Newrez posted pre-tax operating income of $307.6 million in the second quarter, excluding MSR mark-to-market loss, net of hedges, and other non-operating items of $194.5 million. This rose 11.8% from $275.1 million in the prior-year quarter.
Newrez generated a 22% annualized operating return on equity on $5.7 billion of average ending segment equity.
The total servicing unpaid principal balance reached $865.2 billion at the end of the quarter, including $268.4 billion in third-party servicing. Funded origination volume was $15.9 billion, down 2% year over year.
Genesis Capital recorded second-quarter origination volume of $1.9 billion, up 52% year over year and marking its strongest origination quarter. Genesis expanded its sponsor base by funding 125 new sponsors during the quarter, marking an increase of 46% year over year.
Rithm Asset Management had approximately $61 billion in assets under management as of June 30, 2026, up 69.4% from approximately $36 billion in the prior-year quarter. The increase was driven by $1.9 billion in gross inflows and new fund commitments.
Asset management revenues were approximately $141 million, up 48.4% year over year, driven by higher incentive fee income.
Balance Sheet Expands
As of June 30, 2026, total assets were $54.11 billion, up 22.1% from $44.32 billion at June 30, 2025. Cash, cash equivalents and restricted cash increased 17.7% to $2.45 billion from $2.09 billion in the year-ago quarter.
OutlookFor 2026, management expects Genesis to generate $6.5-$7 billion of production and $150-$175 million of EBITDA.
How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a downward trend in estimates revision.
The consensus estimate has shifted -7.32% due to these changes.
VGM ScoresCurrently, Rithm has a poor Growth Score of F, however its Momentum Score is doing a lot better with a B. Following the exact same course, the stock was allocated a score of B on the value side, putting it in the second quintile for value investors.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Rithm has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry PlayerRithm belongs to the Zacks Financial - Miscellaneous Services industry. Another stock from the same industry, Moody's (MCO - Free Report) , has gained 6.5% over the past month. More than a month has passed since the company reported results for the quarter ended June 2026.
Moody's reported revenues of $2.19 billion in the last reported quarter, representing a year-over-year change of +15.1%. EPS of $4.68 for the same period compares with $3.56 a year ago.
Moody's is expected to post earnings of $4.26 per share for the current quarter, representing a year-over-year change of +8.7%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Moody's. Also, the stock has a VGM Score of D.
Rithm Capital offers the best combination of strong dividend coverage (2.4x) and a substantial discount to book value (~0.82x). Annaly Capital earns a Buy rating for its consistent dividend coverage and improving fundamentals, despite trading above book value and thinner coverage. Dynex Capital and Armour Residential provide higher yields but lack sufficient earnings cushion, making their dividends less attractive relative to risk and valuation.
European Capital Solutions Fund II Exceeds Predecessor by Nearly 75% and Demonstrates Strong Demand for Crestline's Flexible, Partnership-Driven Approach to Value Creation
, /PRNewswire/ -- Crestline Management, L.P. ("Crestline"), a global alternative investment management firm, today announced the final close of Crestline European Capital Solutions Fund II ("ECSFII" or the "Fund") with $625 million in capital commitments, nearly 75 percent larger than Fund I. The Fund received strong support from both existing Crestline clients and new investor relationships globally, including a diverse group of public and private pension plans, insurance companies, sovereign wealth funds, and other institutional investors.
Consistent with the European Capital Solutions Strategy Crestline has employed since 2015, ECSFII originates, structures and finances tailored capital solutions – ranging from senior debt to structured equity – for asset-backed and lower-middle-market businesses across North and Western Europe. The strategy targets situations underpinned by tangible collateral, including hard assets such as real estate, infrastructure and transportation, financial and esoteric assets such as music royalties and litigation finance, as well as asset-heavy, often entrepreneur-led or family-owned companies seeking transitional capital. It is managed by Crestline's European Capital Solutions team, whose senior leadership has worked together for more than 20 years and has deployed approximately $2.0 billion across 45 transactions in Europe. Since launching in 2025, ECSFII has demonstrated strong early momentum, establishing a diversified portfolio with approximately 35 percent of the fund committed and a significant realization completed as of Q2'26.
"The successful close of ECSFII reflects the trust our investors have placed in us, and we are deeply grateful for their continued partnership and support," said Michael Guy, Executive Managing Director and Head of European Credit. "The European lower-middle-market continues to face a significant and persistent funding gap—one that requires creativity, speed and deep asset-level underwriting expertise. ECSFII was designed to address this opportunity. The Fund's early momentum reflects the experience, capabilities and relationships our team has developed over more than a decade, and we look forward to continuing to deliver for our investors."
"Crestline has spent well over a decade building relationships and a proprietary sourcing network in this market, which lets us access bilateral opportunities that are often difficult to replicate," said Keith Williams, Executive Managing Director and Chief Investment Officer of Crestline. "The financing needs of lower-middle-market European businesses continue to grow, and our hands-on approach to structuring is purpose-built to meet them. We are grateful for the support behind ECSFII, and we look forward to putting this capital to work and continuing to grow our European platform."
About Crestline Management, L.P.
Crestline is a global alternative investment management firm founded in 1997 and based in Fort Worth, Texas, with affiliate offices in London, New York, Tokyo, and Toronto. The firm has approximately $18 billion of credit assets under management (as of March 31, 2026) including its capital solutions, direct lending, and portfolio finance platforms. Crestline operates as part of Rithm Capital Corp. (NYSE: RITM), a global alternative asset manager with significant experience managing credit and real estate assets and an integrated platform that spans asset-based finance, residential and commercial real estate lending, mortgage servicing rights, and structured credit. For more information, visit www.crestlineinvestors.com.
Contact
Sam Cohen/Jonathan Warren
Gasthalter & Co.
212-257-4170
[email protected]
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.
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
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.
Analyst’s Disclosure: I/we have a beneficial long position in the shares of RITM, NLY, AGNC either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
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.
Analyst’s Disclosure: I/we have a beneficial long position in the shares of RITM either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
NEW YORK--(BUSINESS WIRE)-- #creditratingagency--KBRA assigns preliminary ratings to 10 classes of mortgage-backed notes from New Residential Mortgage Loan Trust 2026-NQM9 (NRMLT 2026-NQM9), a $494.5 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 (50.0%) and Champions Funding LLC (19.8%). In addition,.
Key Takeaways Rithm Capital beat Q2 earnings estimates, though revenues missed the consensus.RITM's asset management revenues rose y/y, while Genesis delivered record origination volume.Newrez's pre-tax operating income increased y/y, though servicing revenues declined. Rithm Capital Corp. (RITM - Free Report) posted second-quarter 2026 earnings available for distribution of 60 cents per share, beating the Zacks Consensus Estimate of 50 cents. The figure increased 11.1% from 54 cents in the prior-year quarter.
Quarterly results reflected higher asset management revenues, interest income and commercial real estate revenues. Strong residential transitional lending originations were other positives. However, lower servicing revenues and higher operating expenses were the undermining factors.
Net income attributable to common stockholders (GAAP) was $20.2 million, down 92.9% from $283.9 million in the prior-year quarter.
RITM’s Q2 Revenues & Expenses IncreaseTotal revenues were $1.28 billion, up 5.4% year over year. The metric missed the Zacks Consensus Estimate of $1.46 billion by 12.1%.
Rithm Capital’s total operating expenses were $1.28 billion, up 34% year over year.
RITM’s Segment Performance & Business MomentumNewrez posted pre-tax operating income of $307.6 million in the second quarter, excluding MSR mark-to-market loss, net of hedges, and other non-operating items of $194.5 million. This rose 11.8% from $275.1 million in the prior-year quarter.
Newrez generated a 22% annualized operating return on equity on $5.7 billion of average ending segment equity.
The total servicing unpaid principal balance reached $865.2 billion at the end of the quarter, including $268.4 billion in third-party servicing. Funded origination volume was $15.9 billion, down 2% year over year.
Genesis Capital recorded second-quarter origination volume of $1.9 billion, up 52% year over year and marking its strongest origination quarter. Genesis expanded its sponsor base by funding 125 new sponsors during the quarter, marking an increase of 46% year over year.
Rithm Asset Management had approximately $61 billion in assets under management as of June 30, 2026, up 69.4% from approximately $36 billion in the prior-year quarter. The increase was driven by $1.9 billion in gross inflows and new fund commitments.
Asset management revenues were approximately $141 million, up 48.4% year over year, driven by higher incentive fee income.
RITM’s Balance Sheet ExpandsAs of June 30, 2026, total assets were $54.11 billion, up 22.1% from $44.32 billion at June 30, 2025. Cash, cash equivalents and restricted cash increased 17.7% to $2.45 billion from $2.09 billion in the year-ago quarter.
Our Viewpoint on RITMRithm Capital’s second-quarter results reflected solid performance. The company continues to benefit from a diversified multi-engine platform spanning mortgage origination and servicing, asset management, residential lending and commercial real estate. Also, growth at Newrez, Genesis, Sculptor and Rithm Asset Management, along with the Crestline and Paramount acquisitions supports its long-term growth trajectory. However, higher compensation costs remain concerning.
RITM currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance & Earnings Dates of RITM PeersAnnaly Capital Management, Inc. (NLY - Free Report) reported second-quarter 2026 earnings available for distribution (EAD) per average share of 79 cents, which beat the Zacks Consensus Estimate of 75 cents. The figure increased from 73 cents in the year-ago quarter.
NLY’s net interest income and net interest margin improved year over year in the reported quarter. Notably, the year-over-year increase in book value per common share was also encouraging. However, higher economic funding costs were concerning.
Ellington Financial LLC (EFC - Free Report) is expected to post second-quarter 2026 results on Aug. 06.
Over the past seven days, the Zacks Consensus Estimate for EFC quarterly earnings has been unchanged at 46 cents per share.
Rithm Capital reported a strong Q2, with EAD of $0.60 per share, supporting a 19.7% ROE and a secure 10%+ dividend yield. RITM's diversified platform—mortgage origination/servicing, real estate private credit, and asset management—positions it for a potential valuation rerating if reclassified as an asset manager. Newrez posted a 212% QoQ earnings increase and Genesis achieved record originations, while asset management AUM surpassed $61B, driving fee-based growth.
3 Ultra-High Dividend Yield Stocks for the New YearRithm Capital NYSE: RITM reported second-quarter earnings available for distribution of $338.9 million, or $0.60 per diluted share, while GAAP net income was $20.2 million, or $0.04 per diluted share. Chairman, Chief Executive Officer and President Michael Nierenberg said results reflected contributions from the company’s Newrez mortgage business, Genesis Capital lending platform, Sculptor and Crestline asset-management businesses, and Elecor Properties real estate portfolio.
Book value was $6.9 billion, or $12.33 per share, at quarter-end, while the company reported $2.1 billion of cash and liquidity. Rithm paid a quarterly common dividend of $0.25 per share. Nierenberg said the difference between earnings available for distribution and GAAP income was partly related to hedges on the company’s mortgage servicing rights portfolio.
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Asset Management Expansion Rithm said it manages more than $100 billion of investable assets between its balance sheet and third-party capital. Its third-party asset-management operations, including Sculptor, Crestline and Rithm-managed funds, oversee approximately $61 billion for more than 200 clients and limited partners. Nierenberg said 71% of the firm’s asset-management assets under management are longer-term capital.
Sculptor’s multi-strategy fund generated an approximately 8% net return in the first half of 2026, according to the company. Nierenberg said the fund’s three-year net return was 12.3%, with volatility of 4.7%. He said the investment teams had reduced risk in response to market volatility.
During the question-and-answer session, Nierenberg said Rithm sees the potential to double asset-management assets under management over the next one to two years, though he emphasized that the company is focused on investment performance rather than pursuing asset growth for its own sake.
Current fundraising efforts are centered on asset-based finance, direct lending, capital solutions, multi-strategy investing, stabilized core real estate and real estate credit. The company is also developing insurance and infrastructure offerings and working with bank partners on private-wealth distribution, management said.
Chief Financial Officer Nick Santoro said incentive fees at Sculptor during the quarter were driven by an off-cycle crystallization of incentive revenue. He said roughly 70% of Sculptor’s incentive revenue is typically recognized in the fourth quarter. Excluding the quarter’s Sculptor incentive income, Santoro said Rithm’s core earnings available for distribution run rate should be about $0.50 per share.
Newrez Reports Higher Pretax Income Newrez, Rithm’s mortgage origination and servicing business, reported approximately $308 million in second-quarter pretax income excluding mark-to-market effects, up 12% from the prior quarter. The segment generated a 22% return on equity, according to President Baron Silverstein.
Silverstein attributed the result to disciplined origination activity, higher servicing fees, increased recapture and lower amortization despite interest-rate volatility. Funded mortgage volume was $15.9 billion, up 1% quarter over quarter. Newrez also acquired $5 billion of mortgage servicing rights through co-issue transactions, up 45% from the prior quarter.
Newrez said wholesale and consumer-direct channels represented 40% of total originations, up 11% from the previous quarter. Silverstein said the company maintained pricing discipline and did not pursue market share at the expense of returns.
The company is investing in proprietary artificial-intelligence tools as well as technology partnerships with Valon and HomeVision. Newrez said its cost per loan is currently about one-third below the industry average and is projected to be 50% below the industry average after the Valon and HomeVision integrations. Management expects the transition to the Valon servicing platform in early 2027 to produce more than $65 million in annual expense savings, reducing direct cost per loan by 21% to $93.
Newrez added eight third-party servicing clients during the quarter and boarded $27 billion of new loans. Silverstein said Ginnie Mae delinquencies were stable from the previous quarter and that overall delinquencies remained low by historical standards.
Nierenberg said lower prepayments have supported MSR cash flows, though the company has been selective in deploying capital as MSR valuations remain relatively full. Rithm manages approximately $865 billion of owned and third-party MSRs, he said.
Genesis Lending and Real Estate Activity Genesis Capital originated $1.9 billion during the quarter and produced approximately $42 million of pretax income, up about 26% from the prior quarter. Nierenberg said the residential transitional lending platform generated a 17% annualized operating return on equity.
The Genesis portfolio had a loan-to-after-repaired-value ratio of approximately 63%, a loan-to-value ratio of 68%, and a loan-to-cost ratio of 76%. Construction loans represented about 50% of the portfolio, bridge loans accounted for about 34%, and renovation loans represented approximately 12%.
Management said demand for Genesis’ short-duration, high-coupon lending products remains strong from insurance companies, funds and separately managed accounts. Nierenberg said the company expects additional growth in multifamily lending, where loan sizes average roughly $10 million to $11 million, while continuing to focus on sponsor quality and underwriting discipline.
Elecor Properties, Rithm’s office real estate operation, owns 10 core assets totaling 9.9 million square feet in New York and San Francisco. The portfolio was 86.5% leased at quarter-end, with average in-place rent of $90 per square foot and a weighted average lease term of 8.3 years.
Head of Real Estate Peter Brindley said Elecor executed or had pending leases for more than 681,000 square feet year to date, at weighted average initial rents of approximately $100 per square foot. The company also identified about $44 million of operating efficiencies since the acquisition.
Elecor closed a $283 million commercial mortgage-backed securities financing for 1325 Avenue of the Americas during the quarter and refinanced 31 West 52nd Street after quarter-end. Management is evaluating potential joint ventures for select assets and financing options for unencumbered properties.
Nierenberg said Rithm does not currently expect to repurchase shares or raise its dividend, preferring to retain and redeploy capital to expand the business. He said any repurchase decision would ultimately be made by the board.
About Rithm Capital (NYSE:RITM)Rithm Capital Corporation is a specialty finance company that originates, acquires and manages structured credit investments collateralized by real estate assets in the United States. The company focuses primarily on senior floating-rate loans secured by multifamily, commercial, industrial and single-family rental properties, aiming to deliver attractive risk-adjusted yields through a diversified portfolio of floating-rate real estate debt.
In addition to senior loans, Rithm Capital invests in residential mortgage-backed securities, including agency and non-agency pools, as well as other real estate-related credit instruments.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
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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
For the quarter ended June 2026, Rithm (RITM - Free Report) reported revenue of $1.28 billion, up 5.4% over the same period last year. EPS came in at $0.60, compared to $0.54 in the year-ago quarter.
The reported revenue compares to the Zacks Consensus Estimate of $1.46 billion, representing a surprise of -12.12%. The company delivered an EPS surprise of +20%, with the consensus EPS estimate being $0.50.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how Rithm performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Revenues- Interest income: $474.6 million compared to the $478.89 million average estimate based on two analysts. The reported number represents a change of -0.8% year over year.Revenues- Other revenues: $54.56 million compared to the $38.49 million average estimate based on two analysts. The reported number represents a change of +0.9% year over year.Revenues- Asset management revenue: $142.23 million versus $128.51 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +49.7% change.Revenues- Gain on originated residential mortgage loans, held-for-sale, net: $207.01 million versus the two-analyst average estimate of $241.78 million. The reported number represents a year-over-year change of +22%.View all Key Company Metrics for Rithm here>>>
Shares of Rithm have returned -2% over the past month versus the Zacks S&P 500 composite's +1.7% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term.
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.
