Rithm Capital (NYSE:RITM) Releases Earnings Results

Rithm Capital (NYSE:RITM) released its quarterly earnings data on Tuesday. The real estate investment trust reported $0.74 EPS for the quarter, topping the consensus estimate of $0.55 by $0.19, FiscalAI reports. Rithm Capital had a return on equity of 18.82% and a net margin of 17.08%.The company had revenue of $1.29 billion during the quarter, compared to the consensus estimate of $1.24 billion.

Here are the key takeaways from Rithm Capital’s conference call:

• Rithm now manages over $100 billion of investable assets after organic growth and acquisitions (including Crestline and Sculptor inflows), and launched new ABF/evergreen products and closed-end funds to expand fee-bearing asset management revenue.
• FY2025 results showed resilient profitability — $2.35 EAD per diluted share (12% YoY) and GAAP net income of $567 million — with Q4 EAD of $0.74 and higher book value despite >$600 million in dividends.
• Mortgage platform Newrez produced ~$1.1 billion pre-tax income (ex-MTM, +17% YoY) on $63 billion funded volume and announced strategic tech partnerships (Valon servicing OS and HomeVision underwriting) with minority equity stakes that management expects will materially boost efficiency and future earnings.
• Rithm acquired 13 Class A office buildings (~13 million sq ft) in New York and San Francisco at an average basis of ~$585 per sq ft (~40% below pre‑COVID), with strong NY leasing and improving SF demand; management plans JV/fund capital raises but the office sector recovery remains an execution risk.
• Q4 included conservative MSR mark-to-market charges driven by seasonal delinquencies, advances and a new FHA modification rule, creating near-term volatility and recent pressure on the equity, though management says MSR hedges and a steepening yield curve mitigate longer‑term risk.

Rithm Capital Trading Up 3.6%

Shares of Rithm Capital stock traded up $0.39 during trading hours on Tuesday, reaching $11.19. The stock had a trading volume of 6,584,256 shares, compared to its average volume of 9,887,203. The firm has a market capitalization of $6.20 billion, a price-to-earnings ratio of 7.67 and a beta of 1.20. Rithm Capital has a 1 year low of $9.13 and a 1 year high of $12.74. The company has a current ratio of 0.45, a quick ratio of 0.45 and a debt-to-equity ratio of 1.52. The firm has a 50 day simple moving average of $11.32 and a two-hundred day simple moving average of $11.55.

Rithm Capital Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Friday, January 30th. Stockholders of record on Wednesday, December 31st were issued a dividend of $0.25 per share. This represents a $1.00 dividend on an annualized basis and a dividend yield of 8.9%. The ex-dividend date was Wednesday, December 31st. Rithm Capital’s dividend payout ratio is presently 68.97%.

More Rithm Capital News

Here are the key news stories impacting Rithm Capital this week:

• Positive Sentiment: Q4 earnings beat — Rithm reported $0.74 EPS, topping consensus and helped by key transactions that boosted results. Rithm Capital Q4 earnings beat, helped by key transactions
• Positive Sentiment: Company press release: full Q4 and FY2025 results show strong execution and a ~19% full‑year EAD return on equity, reinforcing the beat and management’s positive tone. Rithm Capital Corp. Announces Fourth Quarter and Full Year 2025 Results
• Positive Sentiment: Strategic tech partnership — Rithm deepened its partnership with Valon (AI‑native mortgage servicing platform) to advance Newrez servicing capabilities, supporting potential fee/asset‑management upside. Rithm Capital Deepens Partnership With Valon; AI-Native Platform to Advance Newrez Servicing Capabilities
• Positive Sentiment: Minority equity stake in Valon announced — Rithm’s continued investment in Valon signals longer‑term strategic alignment with servicing tech that could expand recurring fee streams. Rithm Capital announces minority equity ownership in Valon Technologies
• Neutral Sentiment: Analyst/preview coverage emphasized watchpoints — previews focused on asset‑management revenues and interest income drivers ahead of results, helping frame investor expectations for sustainability of earnings. Rithm Capital Q4 earnings preview: Eyes on asset management revenues, interest income
• Neutral Sentiment: Investor materials available — Company provided press release, slide deck and conference‑call materials for deeper detail on drivers and one‑time items behind the beat. Review these for clarity on recurring vs. transaction-related earnings. View Press Release / Slide Deck
• Neutral Sentiment: Preferred issuance (RITM.PR.F) — Rithm launched an 8.75% fixed-rate reset preferred IPO, which raises capital but can affect perceived leverage and capital structure; monitor dilution/cost of capital implications. RITM.PR.F: An 8.75% Fixed-Rate Reset Preferred IPO From Rithm Capital

Insider Buying and Selling at Rithm Capital

In other news, CEO Michael Nierenberg sold 301,548 shares of the business’s stock in a transaction on Wednesday, November 5th. The shares were sold at an average price of $11.00, for a total transaction of $3,317,028.00. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, insider David Zeiden sold 19,285 shares of the company’s stock in a transaction on Friday, November 14th. The shares were sold at an average price of $11.11, for a total transaction of $214,256.35. Additional details regarding this sale are available in the official SEC disclosure. 0.44% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Rithm Capital

Several large investors have recently added to or reduced their stakes in RITM. Quadrant Capital Group LLC acquired a new position in shares of Rithm Capital during the third quarter worth approximately $82,000. Blair William & Co. IL bought a new position in shares of Rithm Capital during the 3rd quarter worth about $136,000. Aptus Capital Advisors LLC raised its position in shares of Rithm Capital by 10.3% during the third quarter. Aptus Capital Advisors LLC now owns 17,164 shares of the real estate investment trust’s stock valued at $195,000 after buying an additional 1,601 shares during the last quarter. B. Riley Wealth Advisors Inc. bought a new stake in shares of Rithm Capital in the second quarter valued at about $184,000. Finally, Geneos Wealth Management Inc. grew its position in Rithm Capital by 21.9% during the second quarter. Geneos Wealth Management Inc. now owns 8,574 shares of the real estate investment trust’s stock worth $97,000 after buying an additional 1,543 shares in the last quarter. 44.92% of the stock is currently owned by institutional investors.

Analysts Set New Price Targets

RITM has been the subject of several research analyst reports. Piper Sandler reaffirmed an “overweight” rating and set a $15.50 target price on shares of Rithm Capital in a research note on Monday, December 22nd. Weiss Ratings reiterated a “hold (c+)” rating on shares of Rithm Capital in a report on Monday, December 29th. Jones Trading reaffirmed a “buy” rating and set a $13.50 target price on shares of Rithm Capital in a research note on Thursday, October 30th. UBS Group began coverage on Rithm Capital in a research note on Thursday, January 8th. They issued a “buy” rating and a $16.00 price objective on the stock. Finally, Keefe, Bruyette & Woods reaffirmed an “outperform” rating on shares of Rithm Capital in a research report on Thursday, December 18th. Seven analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company’s stock. According to MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $14.71.

Rithm Capital Company Profile

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.