Rithm Capital Q2 Earnings Beat Estimates, Revenues Up Y/Y

Net income attributable to common stockholders (GAAP) was $20.2 million, down 92.9% from $283.9 million in the prior-year quarter.

RITM’s Q2 Revenues & Expenses Increase

Total revenues were $1.28 billion, up 5.4% year over year. The metric missed the Zacks Consensus Estimate of $1.46 billion by 12.1%.

Rithm Capital’s total operating expenses were $1.28 billion, up 34% year over year.

RITM’s Segment Performance & Business Momentum

Newrez posted pre-tax operating income of $307.6 million in the second quarter, excluding MSR mark-to-market loss, net of hedges, and other non-operating items of $194.5 million. This rose 11.8% from $275.1 million in the prior-year quarter.

Newrez generated a 22% annualized operating return on equity on $5.7 billion of average ending segment equity.

The total servicing unpaid principal balance reached $865.2 billion at the end of the quarter, including $268.4 billion in third-party servicing. Funded origination volume was $15.9 billion, down 2% year over year.

Genesis Capital recorded second-quarter origination volume of $1.9 billion, up 52% year over year and marking its strongest origination quarter. Genesis expanded its sponsor base by funding 125 new sponsors during the quarter, marking an increase of 46% year over year.

Rithm Asset Management had approximately $61 billion in assets under management as of June 30, 2026, up 69.4% from approximately $36 billion in the prior-year quarter. The increase was driven by $1.9 billion in gross inflows and new fund commitments.

Asset management revenues were approximately $141 million, up 48.4% year over year, driven by higher incentive fee income.

RITM’s Balance Sheet Expands

As of June 30, 2026, total assets were $54.11 billion, up 22.1% from $44.32 billion at June 30, 2025. Cash, cash equivalents and restricted cash increased 17.7% to $2.45 billion from $2.09 billion in the year-ago quarter.

Our Viewpoint on RITM

Rithm Capital’s second-quarter results reflected solid performance. The company continues to benefit from a diversified multi-engine platform spanning mortgage origination and servicing, asset management, residential lending and commercial real estate. Also, growth at Newrez, Genesis, Sculptor and Rithm Asset Management, along with the Crestline and Paramount acquisitions supports its long-term growth trajectory. However, higher compensation costs remain concerning.

RITM currently carries a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance & Earnings Dates of RITM Peers

Annaly Capital Management, Inc. NLY reported second-quarter 2026 earnings available for distribution (EAD) per average share of 79 cents, which beat the Zacks Consensus Estimate of 75 cents. The figure increased from 73 cents in the year-ago quarter.

NLY’s net interest income and net interest margin improved year over year in the reported quarter. Notably, the year-over-year increase in book value per common share was also encouraging. However, higher economic funding costs were concerning.

Ellington Financial LLC EFC is expected to post second-quarter 2026 results on Aug. 06.

Over the past seven days, the Zacks Consensus Estimate for EFC quarterly earnings has been unchanged at 46 cents per share.

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