RITM-PA · Rithm Capital Corp.

Net income rose 30.3% to $102.7M from $78.8M, with diluted EPS expanding 71.4% to $0.12 from $0.07. Profitability benefited from the revenue surge outpacing expense growth, where period-to-period changes reflect fluctuations in assets under management, investments in systems, risk management, compliance infrastructure, and costs from launching products or integrating acquired businesses. In the Asset Management segment, expenses primarily comprise compensation for investment professionals, general administrative costs, technology, professional fees, and acquisition-related expenses where applicable. Losses on real estate and other securities arose from 10-year Treasury rate increases, while notes and bonds payable changes were mainly due to early debt extinguishment.

Operating cash flow declined to $100.7M from $1.4B YoY, highlighting cycle pressures in mortgage-related activities even as financing dynamics provided support. Management notes the current environment drives transaction activity primarily through liability management—recapitalizations and refinancings—rather than discretionary investment sales. Equity opportunities increasingly tie to capital structure complexity over traditional stabilized acquisitions, reflecting CRE market normalization expected through 2026 with differentiation by asset quality, sector fundamentals, and structure.