Companies /Real Estate

Rithm Capital Corporation

NYSE: RITM Reit - Mortgage
$10.02
▲ $0.13 (+1.31%) today
Markets closed · 11:55pm ET

Q1 2025 Earnings

Reported Apr 25, 2025, 6:45am ET · SEC source
$0.07
Miss −85.01%
EPS · est. $0.47
$768.4M
Miss −36.90%
Revenue · est. $1.2B
−1.0%
Trailing market
RITM vs S&P since report
1 quarter
Consecutive EPS beats

Market Reaction

% change · around the report
0+0.6%+1.2%Apr 25Apr 25report 6:45am ETearnings+1.0%+1.3%
0+0.6%+1.2%Apr 25Apr 25earnings+1.0%+1.3%
RITM +1.3%S&P 500 +1.0%
0+0.6%+1.2%Apr 25Apr 25report 6:45am ETearnings+1.4%+1.3%
0+0.6%+1.2%Apr 25Apr 25earnings+1.4%+1.3%
RITM +1.3%NASDAQ +1.4%
0+5%+10%Apr 24May 2report 6:45am ETearnings+4.1%+12.6%
0+5%+10%Apr 24May 2earnings+4.1%+12.6%
RITM +12.6%S&P 500 +4.1%
0+5%+10%Apr 24May 2report 6:45am ETearnings+5.1%+12.6%
0+5%+10%Apr 24May 2earnings+5.1%+12.6%
RITM +12.6%NASDAQ +5.1%
+1.35%
Day of report
+4.08%
Next session
+7.02%
One week
+5.79%
30 days

S&P 500 over the same 30 days: +6.74%.

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 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

“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.”

Rithm Capital CEO, on the earnings call

RITM YoY Financials

Q1 2025 vs Q1 2024 · SEC filings Q1 2024 Q1 2025
$0$300.0M$600.0M$900.0M$928.9M$768.4MRevenue$284.0M$36.5MNet Income
$0$300.0M$600.0M$900.0MRevenueNet Income

RITM Revenue by Segment

Origination and Servicing$498.7M
Asset Management$97.1M
Investment Portfolio$105.1M
Residential Transitional Lending$66.5M

Figures from SEC filings and company reports. Not investment advice.