# Rithm Capital Corp. (RITM) Q2 2025 Financial Results Summary
**Release Date:** July 28, 2025
Rithm Capital Corp. (NYSE: RITM) reported its financial results for the second quarter ended June 30, 2025. The following is a summary of the key financial metrics and business highlights from the report:
## Financial Highlights
– **GAAP Net Income:** $283.9 million, or $0.53 per diluted common share
– **Earnings Available for Distribution:** $291.1 million, or $0.54 per diluted common share
– **Common Dividend:** $132.6 million, or $0.25 per common share
– **Book Value per Common Share:** $12.71
### Comparative Performance:
– **GAAP Net Income per Diluted Common Share:**
– **Q2 2025:** $0.53
– **Q1 2025:** $0.07 (an increase of **657%** YoY)
– **GAAP Net Income:**
– **Q2 2025:** $283.9 million
– **Q1 2025:** $36.5 million (an increase of **676%** YoY)
– **Earnings Available for Distribution per Diluted Common Share:**
– **Q2 2025:** $0.54
– **Q1 2025:** $0.52 (an increase of **4%** YoY)
– **Earnings Available for Distribution:**
– **Q2 2025:** $291.1 million
– **Q1 2025:** $275.3 million (an increase of **6%** YoY)
– **Common Dividend:**
– **Q2 2025:** $132.6 million
– **Q1 2025:** $132.5 million (a marginal increase of **0.1%** YoY)
## Business Highlights
### Origination & Servicing
– Newrez LLC, Rithm’s mortgage origination and servicing platform, recorded pre-tax income of $275.1 million, down slightly from $270.1 million in Q1 2025.
– Excluded MSR mark-to-market adjustments led to fluctuations in reported pre-tax income.
– **Pre-Tax Return on Equity (ROE):** 19% on $5.8 billion of equity.
– **Total Servicing UPB:** Increased to $864 billion, a **7%** YoY growth, including $271 billion from third-party servicing (up **22%** YoY).
– **Origination Funded Production Volume:** Reached $16.3 billion in Q2, representing a **12%** YoY increase.
### Investment Portfolio
– Completed a $504 million non-qualified mortgage securitization.
– Invested $2.2 billion into residential mortgage assets, consisting of non-qualified loans and securities.
### Residential Transitional Lending
– Genesis Capital recorded pre-tax income of $26.9 million, despite a portfolio mark-to-market loss of $(1.8) million.
– **Origination Volume:** Achieved $1.2 billion, marking a **49%** YoY increase and a record quarterly performance.
– Expanded sponsor base to 195, reflecting a **30%** YoY growth.
### Asset Management
– Sculptor Capital Management grew to approximately $36 billion in assets under management (AUM).
– Achieved gross fundraising inflows of $1.7 billion in the quarter.
– Active participation in collateralized loan obligation markets with $525 million of activity in Q2 2025.
– Announced a strategic partnership to fund $500 million worth of residential transition loans, with potential upsizing to $1.5 billion.
## Conclusion
In summary, Rithm Capital’s Q2 2025 results demonstrate strong growth across its business lines. The reported increases in net income, earnings available for distribution, and origination production volume indicate resilient performance and effective strategic execution during the quarter. The company continues to prioritize long-term value creation for its investors and shareholders through its diversified platform.
| Three Months Ended | June 30, 2025 | March 31, 2025 |
|---|---|---|
| Revenues | ||
| Servicing fee revenue, net and interest income from MSRs and MSR financing | $574,817 | $570,801 |
| receivables | ||
| Change in fair value of MSRs and MSR financing receivables, net of economic | -155,005 | -333,378 |
| hedges (includes realization of cash flows of $(176,680) and $(146,891), | ||
| respectively) | ||
| Servicing revenue, net | 419,812 | 237,423 |
| Interest income | 478,455 | 441,260 |
| Gain on originated residential mortgage loans, held-for-sale, net | 169,698 | 159,789 |
| Other revenues | 54,066 | 50,773 |
| Asset management revenues | 95,008 | 87,672 |
| $1,217,039 | $976,917 | |
| Expenses | ||
| Interest expense and warehouse line fees | 417,868 | 419,054 |
| General and administrative | 239,575 | 237,546 |
| Compensation and benefits | 294,407 | 271,467 |
| $951,850 | $928,067 | |
| Other Income (Loss) | ||
| Realized and unrealized gains (losses), net | 22,741 | -1,143 |
| Other income (loss), net | 18,478 | 9,073 |
| $41,219 | $7,930 | |
| Income before Income Taxes | 306,408 | 56,780 |
| Income tax expense (benefit) | -11,598 | -23,930 |
| Net Income | 318,006 | 80,710 |
| Noncontrolling interests in income of consolidated subsidiaries | 3,169 | 1,086 |
| Redeemable noncontrolling interests in income of consolidated subsidiaries | 3,120 | 813 |
| Net Income Attributable to Rithm Capital Corp. | 311,717 | 78,811 |
| Change in redemption value of redeemable noncontrolling interests | — | 15,611 |
| Dividends on preferred stock | 27,818 | 26,677 |
| Net Income Attributable to Common Stockholders | $283,899 | $36,523 |
| Net Income per Share of Common Stock | ||
| Basic | $0.54 | $0.07 |
| Diluted | $0.53 | $0.07 |
| Weighted Average Number of Shares of Common Stock Outstanding | ||
| Basic | 530,171,540 | 524,104,842 |
| Diluted | 537,347,700 | 530,599,555 |
| Dividends Declared per Share of Common Stock | $0.25 | $0.25 |
| June 30, 2025 | March 31, 2025 | |
|---|---|---|
| Assets | ||
| Mortgage servicing rights and mortgage servicing rights financing | $10,360,063 | $10,133,041 |
| receivables, at fair value | ||
| Government and government-backed securities ($8,844,111 and | 8,868,879 | 11,048,701 |
| $11,023,935 at fair value, respectively) | ||
| Residential mortgage loans, held-for-sale ($4,126,335 and | 4,187,301 | 3,156,350 |
| $3,092,102 at fair value, respectively) | ||
| Residential mortgage loans, held-for-investment, at fair value | 343,333 | 354,003 |
| Consumer loans, held-for-investment, at fair value | 465,231 | 554,168 |
| Residential transition loans, at fair value | 2,497,764 | 2,335,218 |
| Residential mortgage loans subject to repurchase | 2,264,600 | 2,432,605 |
| Single-family rental properties | 1,002,261 | 1,011,986 |
| Cash and cash equivalents | 1,600,948 | 1,493,834 |
| Restricted cash | 485,402 | 511,698 |
| Servicer advances receivable | 2,713,742 | 2,874,515 |
| Other assets ($2,606,841 and $2,422,538 at fair value, | 4,660,827 | 4,450,923 |
| respectively) | ||
| Assets of consolidated CFEs(A): | ||
| Investments, at fair value and other assets | 4,865,602 | 4,972,801 |
| Total Assets | $44,315,953 | $45,329,843 |
| Liabilities and Equity | ||
| Liabilities | ||
| Secured financing agreements | $15,897,778 | $16,791,234 |
| Secured notes and bonds payable ($160,433 and $169,035 at | 9,764,857 | 10,025,948 |
| fair value, respectively) | ||
| Residential mortgage loan repurchase liability | 2,264,600 | 2,432,605 |
| Unsecured notes, net of issuance costs | 1,414,497 | 1,207,594 |
| Dividends payable | 160,967 | 157,405 |
| Accrued expenses and other liabilities ($464,143 and | 2,361,386 | 2,343,010 |
| 538,985 at fair value, respectively) | ||
| Liabilities of consolidated CFEs(A): | ||
| Notes payable, at fair value and other liabilities | 4,131,696 | 4,230,793 |
| Total Liabilities | $35,995,781 | $37,188,589 |
| Commitments and Contingencies | ||
| Redeemable Noncontrolling Interests of Consolidated Subsidiaries | 260,963 | 256,414 |
| Stockholders’ Equity | ||
| Preferred stock, $0.01 par value, 100,000,000 shares authorized | ||
| 49,964,122 and 49,964,122 issued and outstanding, $1,249,104 | 1,207,254 | 1,207,254 |
| and $1,249,104 aggregate liquidation preference, respectively | ||
| Common stock, $0.01 par value, 2,000,000,000 shares | 5,303 | 5,301 |
| authorized, 530,292,171 and 530,122,477 issued and | ||
| outstanding, respectively | ||
| Additional paid-in capital | 6,652,587 | 6,635,226 |
| Accumulated deficit | 18,399 | -129,934 |
| Accumulated other comprehensive income | 64,840 | 58,277 |
| Stockholders’ Equity in Rithm Capital Corp. | 7,948,383 | 7,776,124 |
| Noncontrolling interests in equity of consolidated subsidiaries | 110,826 | 108,716 |
| Total Stockholders’ Equity | 8,059,209 | 7,884,840 |
| Total Liabilities and Equity | $44,315,953 | $45,329,843 |
(A) Includes assets and liabilities of certain consolidated variable interest entities (“VIEs”) that meet the definition of collateralized financing entities (“CFEs”). These assets can only be used to settle obligations and liabilities of such VIEs for which creditors do not have recourse to Rithm Capital Corp.
