Third Quarter 2026
Filed Oct 23, 2026Q3 GAAP net income of $0.38 per diluted share; earnings available for distribution of $0.55 per diluted share
GAAP net income attributable to common stockholders was $217.1 million, or $0.38 per diluted common share, versus $20.2 million, or $0.04 per diluted common share, in Q2 2026. Total revenue was $1,756,422 (in thousands) versus $1,282,281 (in thousands), while earnings available for distribution was $315.3 million versus $338.9 million.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenueGAAP | $1.76B | – | – |
| Servicing fee revenue, net and interest income from MSRs and MSR financing receivablesGAAP | $595.4M | – | – |
| Change in fair value of MSRs and MSR financing receivables, net of economic hedgesGAAP | $121.3M | – | – |
| Servicing revenue, netGAAP | $716.6M | – | – |
| Interest incomeGAAP | $479.6M | – | – |
| Gain on originated residential mortgage loans, held-for-sale, netGAAP | $214.2M | – | – |
| Asset management revenueGAAP | $107.3M | – | – |
| Commercial real estate revenueGAAP | $187.0M | – | – |
| Other residential-related revenueGAAP | $51.64M | – | – |
| Total operating expensesGAAP | $1.28B | – | – |
| Interest expense and warehouse line feesGAAP | $480.8M | – | – |
| General, administrative and operating expensesGAAP | $320.9M | – | – |
| Compensation and benefitsGAAP | $382.4M | – | – |
| Depreciation and amortizationGAAP | $92.43M | – | – |
| Realized and unrealized gains, netGAAP | $19.75M | – | – |
| Other income, netGAAP | $19.41M | – | – |
| Income before Income TaxesGAAP | $519.1M | – | – |
| Income tax expenseGAAP | $257.8M | – | – |
| Net IncomeGAAP | $261.3M | – | – |
| Net Income Attributable to Rithm Capital Corp.GAAP | $253.3M | – | – |
| Net Income Attributable to Common StockholdersGAAP | $217.1M | – | – |
| Net Income per Share of Common Stock, basicGAAP | $0.39 | – | – |
| Net Income per Share of Common Stock, dilutedGAAP | $0.38 | – | – |
| Earnings available for distributionnon-GAAP | $315.3M | – | – |
| Earnings available for distribution per diluted common sharenon-GAAP | $0.55 | – | – |
| Common dividend per shareother | $0.25 | – | – |
| Common dividendother | $139.6M | – | – |
| Book value per common shareother | $12.51 | – | – |
| Origination and Servicing total revenueGAAP | $1.21B | – | – |
| Residential Transitional Lending total revenueGAAP | $103.6M | – | – |
| Asset Management total revenueGAAP | $145.8M | – | – |
| Investment Portfolio total revenueGAAP | $108.1M | – | – |
| Commercial Real Estate total revenueGAAP | $190.4M | – | – |
| Corporate Category total revenueGAAP | $2.65M | – | – |
| Newrez pre-tax operating income, excluding mortgage servicing rights mark-to-market gain, net of hedges, and other non-operating itemsnon-GAAP | $329.7M | – | – |
| Newrez annualized operating return on equitynon-GAAP | 24% | – | – |
| Genesis Capital Q3'26 origination volume of residential transition loansother | $1.5B | – | 25% |
| Origination funded production volumeother | $12.9B | decrease of 19% | decrease of 21% |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Origination and ServicingServicing revenue, net was $716,649 (in thousands); gain on originated residential mortgage loans, held-for-sale, net was $203,793 (in thousands). | $1.21B | – | – |
| Residential Transitional LendingInterest income was $103,594 (in thousands). | $103.6M | – | – |
| Asset ManagementManagement fees were $91,637 (in thousands) and incentive fees were $14,386 (in thousands). | $145.8M | – | – |
| Investment PortfolioInterest income was $71,999 (in thousands), gain on originated residential mortgage loans, held-for-sale, net was $10,364 (in thousands), and other residential-related revenue was $25,773 (in thousands). | $108.1M | – | – |
| Commercial Real EstateCommercial real estate revenue was $187,041 (in thousands). | $190.4M | – | – |
| Corporate CategoryInterest income was $2,653 (in thousands). | $2.65M | – | – |
Capital returns
- Common dividend of $139.6 million, or $0.25 per common share.
- Dividends declared per share of common stock were $0.25.
What drove it
- The change in fair value of MSRs and MSR financing receivables, net of economic hedges was $121,277 (in thousands), compared with $(392,875) (in thousands) in Q2 2026.
- Rithm Asset Management had approximately $61 billion of AUM as of September 30, 2026, consistent with quarter end Q2'26.
- $569 million of gross new capital and fund commitment inflows in Q3'26 brought year-to-date gross inflows to $2.9 billion.
- Elecor Properties increased year-to-date leasing activity to 1.0 million square feet, achieving rents 22% higher across the portfolio as compared to FY 2025.
- Newrez total servicing UPB reached $878.9 billion, including $282.8 billion UPB of third-party servicing.
- Rithm purchased $1.6 billion in UPB of NQM loans and sponsored and completed two NQM securitizations totaling $975 million in UPB.
- Rithm acquired $521 million in home improvement loans under the Upgrade forward flow agreement, bringing the total purchased through quarter-end to $1.5 billion.
Concerns
- Earnings available for distribution was $315.3 million, or $0.55 per diluted common share, compared with $338.9 million, or $0.60 per diluted common share, in Q2 2026.
- Asset management revenue was $107,345 (in thousands), compared with $142,228 (in thousands) in Q2 2026; incentive fees were $14,386 (in thousands), compared with $51,743 (in thousands).
- Origination funded production volume was $12.9 billion, a decrease of 19% quarter over quarter and a decrease of 21% YoY.
- Income tax expense was $257,819 (in thousands), compared with $18,973 (in thousands) in Q2 2026.
- Interest expense and warehouse line fees were $480,834 (in thousands), compared with $464,114 (in thousands) in Q2 2026.
What to watch
- The amended Upgrade forward flow agreement allows for the purchase of an additional $1.2 billion in UPB of home improvement loans.
- Rithm completed a $375 million securitization collateralized entirely by multifamily RTLs and a $306 million securitization of home improvement loans.
- The joint venture for 1301 Avenue of the Americas, under which Rithm will continue to hold a significant interest in the asset and operate the building on behalf of the joint venture.
- Newrez servicing UPB, third-party servicing UPB, funded production volume, and the MSR mark-to-market result, net of hedges.
- Asset management gross new capital and fund commitment inflows and AUM.
Balance sheet and cash flow
- Cash, cash equivalents and restricted cash were $2,449,322 (in thousands) as of September 30, 2026, compared with $2,454,708 (in thousands) as of June 30, 2026.
- Total Assets were $56,661,330 (in thousands) as of September 30, 2026, compared with $54,108,868 (in thousands) as of June 30, 2026.
- Total Liabilities were $47,124,374 (in thousands) as of September 30, 2026, compared with $44,660,148 (in thousands) as of June 30, 2026.
- Secured financing agreements were $14,235,647 (in thousands) as of September 30, 2026, compared with $13,677,512 (in thousands) as of June 30, 2026.
- Secured notes and bonds payable were $14,011,438 (in thousands) as of September 30, 2026, compared with $14,363,446 (in thousands) as of June 30, 2026.
- Unsecured notes, net of issuance costs were $1,907,153 (in thousands) as of September 30, 2026, compared with $1,902,627 (in thousands) as of June 30, 2026.
- Total Stockholders’ Equity was $9,141,357 (in thousands) as of September 30, 2026, compared with $9,051,414 (in thousands) as of June 30, 2026.
- Stockholders’ Equity in Rithm Capital Corp. was $8,620,062 (in thousands) as of September 30, 2026, compared with $8,516,862 (in thousands) as of June 30, 2026.
- Operating cash flow and free cash flow were not reported.
Analysis
Rithm reported GAAP net income attributable to common stockholders of $217.1 million, or $0.38 per diluted common share, compared with $20.2 million, or $0.04 per diluted common share, in Q2 2026. Total revenue was $1,756,422 (in thousands), compared with $1,282,281 (in thousands), while total operating expenses were $1,276,490 (in thousands), compared with $1,275,487 (in thousands). The largest reported revenue movement was servicing revenue, net of $716,649 (in thousands), compared with $221,762 (in thousands), alongside a $121,277 (in thousands) change in fair value of MSRs and MSR financing receivables, net of economic hedges, compared with $(392,875) (in thousands).
Origination and Servicing generated total revenue of $1,205,852 (in thousands), compared with $704,211 (in thousands), and Newrez reported pre-tax operating income of $329.7 million excluding MSRs mark-to-market gain, net of hedges, and other non-operating items. Newrez generated a 24% annualized operating ROE on $5.5 billion of average ending segment equity. Servicing UPB reached $878.9 billion, including $282.8 billion of third-party servicing, while origination funded production volume was $12.9 billion, a decrease of 19% quarter over quarter and a decrease of 21% YoY.
The other operating businesses reported distinct trends. Asset Management total revenue was $145,759 (in thousands), compared with $168,740 (in thousands), as incentive fees were $14,386 (in thousands), compared with $51,743 (in thousands). The platform had approximately $61 billion of AUM, consistent with quarter end Q2'26, and reported $569 million of Q3'26 gross new capital and fund commitment inflows. Residential Transitional Lending total revenue was $103,594 (in thousands), while Genesis recorded $1.5 billion of Q3'26 RTL originations, a 25% YoY increase. Commercial Real Estate total revenue was $190,428 (in thousands), supported by $187,041 (in thousands) of commercial real estate revenue.
Earnings available for distribution was $315.3 million, or $0.55 per diluted common share, compared with $338.9 million, or $0.60 per diluted common share, in Q2 2026. The Company declared a common dividend of $139.6 million, or $0.25 per common share, and reported book value per common share of $12.51. Cash, cash equivalents and restricted cash were $2,449,322 (in thousands), total assets were $56,661,330 (in thousands), and total liabilities were $47,124,374 (in thousands) at September 30, 2026. The release provided no forward financial guidance.
Management, verbatim
Rithm’s strong third quarter results reflect disciplined execution across every part of our platform. We continued to scale our asset management business, closing new funds and growing a more durable, fee-based earnings stream, while our operating companies delivered: Newrez generated a 24% annualized operating return on equity, Genesis reached year-to-date originations of $5.0 billion, and Elecor expanded its third-party capital base by executing a joint venture for a core NYC property, while signing 320,000 square feet of new leases. Our businesses continue to perform, and the strength and breadth of our platform position us well as we enter the fourth quarter with significant momentum and opportunity ahead for our shareholders, clients, and partners.
Michael Nierenberg, CEO of Rithm Capital
Not in the filing
stated, not guessed- Prior-year comparative figures for the consolidated statements of operations
- Gross margin
- Operating income
- Operating cash flow
- Free cash flow
- Forward financial guidance
- Prior outlook for comparison
- Share repurchases
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.