Q1 25 EPS
$0.07
MISS 85.01%
Est. $0.47
Q1 25 Revenue
$768.4M
MISS 36.90%
Est. $1.22B
vs S&P Since Q1 25
-39.2%
TRAILING MARKET
RITM -3.5% vs S&P +35.6%
Market Reaction
Did RITM Beat Earnings? Q1 2025 Results
Rithm Capital delivered a sharply disappointing first quarter, posting GAAP earnings of just $0.07 per diluted share against a consensus estimate of $0.47, a miss of 85.01%, as revenue of $768.38 million fell 36.90% short of the $1.22 billion analyst… Read more Rithm Capital delivered a sharply disappointing first quarter, posting GAAP earnings of just $0.07 per diluted share against a consensus estimate of $0.47, a miss of 85.01%, as revenue of $768.38 million fell 36.90% short of the $1.22 billion analysts had expected and declined 17.3% year over year. The primary culprit was a $541.92 million negative mark-to-market adjustment on mortgage servicing rights and MSR financing receivables, a dramatic reversal from the $563.48 million positive mark recorded in Q4 2024 that effectively overwhelmed the underlying business performance. Stripping out that valuation swing, the picture looked considerably healthier; earnings available for distribution reached $275.26 million, or $0.52 per diluted share, and Newrez, the company's core mortgage platform, generated $270.10 million in pre-tax income while growing its total servicing portfolio to $845.00 billion in unpaid principal balance, up 30% year over year. The company maintained its quarterly common dividend at $0.25 per share despite the headline earnings pressure.
Key Takeaways
- • Largest-ever $878 million MSR-backed secured financing completed
- • Newrez total servicing UPB reached $845 billion, up 30% YoY
- • Third-party servicing UPB grew 110% YoY to $254 billion
- • Origination funded production volume of $11.8 billion, up 9% YoY
- • Genesis Capital origination volume of $895 million, up 7% YoY and record Q1 level
- • Sculptor Capital grew to approximately $35 billion AUM with $1.4 billion gross fundraising inflows
- • Negative MSR mark-to-market of $(541.9) million drove GAAP earnings decline
RITM YoY Financials
Q1 2025 vs Q1 2024, source: SEC Filings
RITM Revenue by Segment
With YoY comparisons, source: SEC Filings
“Rithm delivered strong performance in the first quarter despite a challenging macroeconomic environment, demonstrating the power of our diversified platform. The quarter was marked by several achievements that reinforced the strength of our innovative approach, including the largest-ever mortgage servicing rights debt issuance. Each of our core operating businesses, including our world-class asset management, origination, and servicing platforms, demonstrated steady growth, providing us confidence in our strategy and future prospects. This further validates our continued transformation into a multi-dimensional asset manager that is well-positioned to capitalize on the outstanding opportunities for our business and build long-term shareholder value.”
— Michael Nierenberg, Q1 2025 Earnings Press Release
RITM Earnings Trends
RITM vs Market 30 Day Price Reactions
30-day stock return vs benchmark after each earnings
RITM EPS Trend
Earnings per share: estimate vs actual
RITM Revenue Trend
Quarterly revenue: estimate vs actual
RITM Quarterly Results
5 quarters of earnings data
| Quarter | EPS Est. | EPS Act. | Surprise | Revenue | Rev. Surprise |
|---|---|---|---|---|---|
| Q1 26 MISS | $0.50 | $0.12 | -75.89% | $1.38B | +8.66% |
| Q4 25 BEAT FY | $0.58 | $0.74 | +27.15% | $1.29B | +3.70% |
| FY Full Year | $2.17 | $2.35 | +8.07% | $4.59B | +6.83% |
| Q3 25 BEAT | $0.52 | $0.54 | +3.85% | $1.11B | +3.46% |
| Q2 25 BEAT | $0.52 | $0.53 | +1.34% | $1.22B | +8.47% |
| Q1 25 MISS | $0.47 | $0.07 | -85.01% | $768.4M | -36.90% |