RITM earnings analysis
What we found in RITM's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Rithm posted $1.282 billion of Q2 revenue, down 7.4% sequentially but approximately 5.0% above Q2 2025, while GAAP common earnings fell to $20.193 million and GAAP diluted EPS was $0.04. Asset management, RTL originations, servicing fees and CRE revenue provided growth offsets, but lower MSR mark-to-market results materially reduced servicing revenue. Liquidity remains adequate at $1.664 billion of cash and cash equivalents, although the company faces $13.135 billion of debt maturities in the second half of 2026 and operating cash flow declined year over year. Item 1A states there were no material changes to the risk factors disclosed in the 2025 Form 10-K.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue lower sequentially but higher year over year
- Quarterly revenue was $1.282 billion, down $102.429 million sequentially from $1.385 billion as lower servicing revenue offset growth in asset management; six-month revenue rose $468.149 million year over year to $2.667 billion.
- Asset management incentive fees accelerated
- Asset-management revenue rose $35.641 million sequentially to $142.228 million, driven by a $36.085 million increase in incentive fees from Sculptor fund crystallizations and investment realizations. AUM was approximately $61 billion at June 30.
- Origination margins and production improved
- Mortgage origination volume increased to $15.902 billion from $15.473 billion sequentially, while gain-on-sale margin expanded 18 bps to 1.27%. Funded production increased $3.248 billion year over year in the first half.
- RTL portfolio growth remained strong
- Residential transitional lending continued to scale: quarterly originations reached $1.885 billion versus $1.608 billion in Q1, and portfolio carrying value grew to $5.071 billion from $3.915 billion at year-end 2025.
- Servicing fees grew with portfolio expansion
- The servicing portfolio increased $14.849 billion sequentially to $865.220 billion UPB. Servicing fee revenue and fees rose $35.349 million sequentially to $614.637 million.
- CRE leasing economics showed improvement
- Commercial real estate produced $182.130 million of quarterly revenue, while year-to-date leasing rents were 14.7% above the full-year 2025 average. The portfolio's same-store occupancy was 86.5% at June 30.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- GAAP earnings declined sharply
- Net income attributable to common stockholders fell $47.638 million sequentially to $20.193 million. GAAP diluted EPS was $0.04, versus earnings available for distribution of $0.60 per diluted share reported with results.
- MSR valuation and hedge results pressured revenue
- Servicing revenue, net declined $153.297 million sequentially to $221.762 million, primarily because hedged MSR mark-to-market was approximately $186.2 million lower as interest rates and prepayment speeds steadied.
- Cash generation weakened as investment outlays rose
- Operating cash flow was $274.774 million for the first six months, down $589.413 million year over year, while investing cash outflow was $1.974 billion, principally reflecting RTL originations and insurance-company investments.
- Near-term refinancing and margin exposure are sizable
- The company had $13.135 billion of contractual debt maturities in the second half of 2026, including $10.414 billion of recourse obligations. It also had margin exposure on $13.7 billion of secured financing agreements.
- Book value remains rate-sensitive
- Book value per common share declined to $12.33 at June 30 from $12.51 at March 31 and $12.71 a year earlier. Management's rate sensitivity estimates a 50-bp rate decline would reduce book value by $334.3 million.
- Consumer-loan delinquencies remain elevated
- Credit quality risk is elevated in parts of consumer lending: the Marcus portfolio had 58.3% of UPB 90+ days delinquent as of June 30, while the aggregate consumer portfolio's 90+ day delinquency was 14.8%.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $0.04
- Segment
- Origination and Servicing: servicing revenue, net of $221.762 million; gain on originated residential mortgage loans of $207.006 million; interest income of $252.496 million.
- Segment
- Residential Transitional Lending: interest income of $103.587 million; $1.885 billion of loans originated.
- Segment
- Asset Management: revenue of $142.228 million, including $90.485 million of management fees and $51.743 million of incentive fees.
- Segment
- Investment Portfolio: interest income of $85.428 million.
- Segment
- Commercial Real Estate: revenue of $182.130 million.
What they said about what is next.
No quantitative revenue or EPS guidance was provided. Management expects cash on hand, operating cash flow, and its ability to extend or refinance secured financings to meet anticipated liquidity needs over the next 12 months, but identifies refinancing of short-term borrowings as critical to this outlook.
The filing reads about the same as the one before it.
What came before.
- 10-Q · May 4, 2026
- Rithm Capital reported Q1 2026 financial results showcasing a robust revenue growth of 42% year-over-year, amounting to $1.38 billion, despite a slight miss in EPS at $0.51 against a consensus of $0.53. Management…
- 10-K · February 19, 2026
- Rithm Capital positions itself as a diversified real estate, credit and financial-services platform combining operating companies (Newrez, Genesis), balance-sheet investing and fee-based asset management (RAM, Sculptor,…
- 10-Q · October 31, 2025
- Rithm Capital reported Q3 2025 revenue of $1,105,523,000 (unaudited), up $106,085,000 versus Q3 2024 and producing diluted EPS of $0.35 versus $0.20 in Q3 2024. Operating profitability improved sharply (income before…
- 10-Q · May 2, 2025
- Rithm reported Q1 2025 revenue of $768.38M, down from $1,260.62M in Q1 2024 (a decline of ~39%), and diluted EPS of $0.07 versus $0.54 a year ago. Operating activity was mixed: an operating loss before other income of…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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