Rithm Capital (NYSE:RITM) Releases Quarterly Earnings Results, Beats Estimates By $0.10 EPS

Rithm Capital (NYSE:RITM) announced its quarterly earnings results on Tuesday. The real estate investment trust reported $0.60 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.50 by $0.10, FiscalAI reports. The company had revenue of $1.28 billion for the quarter, compared to analysts’ expectations of $1.43 billion. Rithm Capital had a net margin of 14.44% and a return on equity of 19.48%.

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

• Q2 earnings were strong, with earnings available for distribution of $338.9 million, or $0.60 per diluted share, while book value was broadly stable at approximately $12.33 per share and liquidity stood at $2.1 billion.
• The third-party asset-management platform reached approximately $61 billion of AUM, up from virtually zero in 2023, with management targeting continued growth across credit, asset-backed finance, real estate, and multi-strategy products. The multi-strategy fund was up about 8% in the first half of 2026.
• Genesis Capital delivered $1.9 billion of quarterly originations, $42 million of pretax income, and a 17% annualized operating ROE. Management sees substantial growth potential, particularly in multifamily lending and fund-driven demand for residential transitional loans.
• Newrez generated approximately $308 million of second-quarter pretax income excluding mark-to-market items, up 12% quarter over quarter, with a 22% ROE. Management also expects the planned Valon servicing-system transition to produce more than $65 million in annual expense savings beginning in 2027.
• Elecor reported improving leasing trends, including 681,000 square feet signed or pending and stronger San Francisco occupancy, but the office portfolio remains 86.5% leased overall and requires significant capital improvements. Management is pursuing asset-level joint ventures and refinancing opportunities to support the strategy.

Rithm Capital Stock Up 5.9%

RITM opened at $9.78 on Wednesday. The firm has a 50 day moving average price of $9.23 and a 200-day moving average price of $9.86. The stock has a market capitalization of $5.46 billion, a price-to-earnings ratio of 8.97 and a beta of 1.14. The company has a quick ratio of 1.28, a current ratio of 1.28 and a debt-to-equity ratio of 4.02. Rithm Capital has a twelve month low of $8.43 and a twelve month high of $12.74.

Rithm Capital Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Friday, July 31st. Stockholders of record on Thursday, July 2nd will be issued a dividend of $0.25 per share. This represents a $1.00 annualized dividend and a dividend yield of 10.2%. The ex-dividend date of this dividend is Thursday, July 2nd. Rithm Capital’s payout ratio is presently 91.74%.

Trending Headlines about Rithm Capital

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

• Positive Sentiment: Adjusted earnings beat expectations: Earnings available for distribution were $0.60 per diluted share, up from $0.54 a year earlier and 20% above the $0.50 consensus estimate. The result supports confidence in Rithm’s recurring earnings power. Rithm Q2 Earnings Top Estimates
• Positive Sentiment: Asset-management momentum continued: Rithm Asset Management’s assets under management increased to approximately $61 billion from $59 billion in the first quarter. Management described the owner-operator platform as durable despite an uncertain macroeconomic environment. Q2 Earnings Call Highlights
• Positive Sentiment: Operating businesses delivered solid activity: Newrez generated $307.6 million in pre-tax operating income, excluding specified mortgage-servicing-rights mark-to-market and other non-operating items. Genesis Capital’s origination volume rose 52% year over year to $1.9 billion, while total origination volume increased 3% sequentially to $15.9 billion. Rithm Capital Second Quarter Results
• Positive Sentiment: Shareholder returns and valuation remained supportive: Rithm declared a $0.25 common dividend, and book value per common share was $12.33. Analysts at several brokerages set an average price target of $13.20, implying potential upside from recent trading levels. Brokerages Set Rithm Capital Target Price
• Neutral Sentiment: CEO Michael Nierenberg said the company remains focused on expanding asset management and evaluating opportunities across real estate, while discussing the sector’s uncertain outlook and broader macroeconomic challenges. Rithm Capital CEO on Real Estate Outlook
• Negative Sentiment: Revenue fell short of estimates: Quarterly revenue was $1.282 billion versus the $1.43 billion consensus forecast. GAAP net income attributable to common stockholders was only $20.2 million, or $0.04 per share, underscoring the difference between reported GAAP results and the stronger distribution-based earnings figure. Rithm Capital Q2 GAAP Net Income

Analyst Upgrades and Downgrades

A number of analysts have weighed in on RITM shares. BTIG Research reduced their price objective on shares of Rithm Capital from $16.00 to $13.00 and set a “buy” rating for the company in a research note on Tuesday, June 16th. Capital One Financial set a $12.50 price target on shares of Rithm Capital in a report on Thursday, April 9th. Wall Street Zen downgraded shares of Rithm Capital from a “hold” rating to a “sell” rating in a research report on Monday, July 6th. Citizens Jmp boosted their price objective on shares of Rithm Capital from $12.50 to $13.50 and gave the stock a “market outperform” rating in a report on Wednesday, May 20th. Finally, Royal Bank Of Canada lowered their price objective on Rithm Capital from $14.00 to $13.00 and set an “outperform” rating on the stock in a research report on Friday, May 1st. Ten equities research analysts have rated the stock with a Buy rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $13.20.

Insiders Place Their Bets

In other Rithm Capital news, Director David Saltzman sold 80,922 shares of the stock in a transaction dated Wednesday, May 20th. The stock was sold at an average price of $9.25, for a total value of $748,528.50. Following the transaction, the director owned 44,248 shares of the company’s stock, valued at approximately $409,294. This represents a 64.65% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Corporate insiders own 0.57% of the company’s stock.

Hedge Funds Weigh In On Rithm Capital

Institutional investors have recently made changes to their positions in the business. State Street Corp grew its position in Rithm Capital by 5.3% during the fourth quarter. State Street Corp now owns 10,557,874 shares of the real estate investment trust’s stock valued at $117,701,000 after buying an additional 530,607 shares during the period. Qube Research & Technologies Ltd grew its position in shares of Rithm Capital by 80.7% during the 3rd quarter. Qube Research & Technologies Ltd now owns 7,890,987 shares of the real estate investment trust’s stock valued at $89,878,000 after acquiring an additional 3,524,330 shares during the period. Wellington Management Group LLP grew its position in shares of Rithm Capital by 3.7% during the 4th quarter. Wellington Management Group LLP now owns 6,256,883 shares of the real estate investment trust’s stock valued at $68,200,000 after acquiring an additional 220,654 shares during the period. Morgan Stanley increased its stake in shares of Rithm Capital by 15.9% in the 4th quarter. Morgan Stanley now owns 6,079,402 shares of the real estate investment trust’s stock worth $66,266,000 after purchasing an additional 835,086 shares in the last quarter. Finally, Charles Schwab Investment Management Inc. raised its holdings in Rithm Capital by 5.0% in the 4th quarter. Charles Schwab Investment Management Inc. now owns 5,967,984 shares of the real estate investment trust’s stock worth $65,051,000 after purchasing an additional 284,623 shares during the period. Institutional investors own 44.92% of the company’s stock.

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.