RITM-PA · Rithm Capital Corp.

Rithm Capital Corp. reported first quarter 2026 results demonstrating resilient performance across its diversified business model despite a challenging market environment. GAAP net income rose to $67.8 million ($0.12 per diluted share) from $53.1 million ($0.09 per diluted share) in the prior quarter, driven by strong operating contributions from its origination and servicing platform, Newrez, and continued growth in its residential transitional lending and asset management segments. Non-GAAP earnings available for distribution, a key metric for dividend coverage, totaled $289.6 million ($0.51 per diluted share), down from $418.9 million in Q4 2025, reflecting lower net interest income and higher expenses. The company maintained its common dividend at $0.25 per share, with $139.6 million paid in the quarter.

Newrez, the mortgage origination and servicing platform, posted pre-tax operating income of $273.7 million, excluding MSR mark-to-market losses and other non-operating items, up from $249.1 million in Q4 2025, and generated a 19% annualized operating return on equity on $5.7 billion of segment equity. Total servicing unpaid principal balance reached $850 billion, including $257 billion of third-party servicing. Origination funded production volume was $15.5 billion, down 18% quarter-over-quarter but up 31% year-over-year.

Genesis Capital, the residential transitional lending platform, recorded origination volume of $1.6 billion, an 80% year-over-year increase, continuing a series of record quarters. The platform expanded its sponsor base, funding 118 new sponsors in Q1 2026, a 258% increase year-over-year.

Rithm Asset Management, including Sculptor Capital and Crestline, had approximately $59 billion in AUM as of March 31, 2026, up from $35 billion a year earlier, driven by the Crestline acquisition and additional fundraising. Sculptor Capital committed over $1 billion to its Real Estate Fund V and deployed over $2 billion into corporate credit and asset-based finance investments. Crestline raised $100 million in net inflows for its private perpetual BDC.

In commercial real estate, the company rebranded its platform to Elecor Properties and reported continued leasing momentum, with New York City lease occupancy up 4.7% year-over-year and over 350k square feet of new lease activity. The company also refinanced 1325 Avenue of the Americas through a single-asset, single-borrower CMBS financing.

Management expressed confidence in the company's diversified owner-operator model to perform through disruption and create long-term shareholder value. No forward guidance was provided in the release.