Rithm Capital (RITM) Q2 2025 earnings summary

Executive summary

• Achieved GAAP net income of $283.9 million ($0.53 per diluted share) in Q2 2025, with book value per share rising to $12.71 and total assets at $44.3 billion; AUM reached $36 billion, and the platform expanded through acquisitions and new partnerships.

• Earnings available for distribution were $291.1 million ($0.54 per diluted share), up 15% year-over-year, marking 23 consecutive quarters of EAD exceeding common dividends paid.

• Segment highlights include record origination at Genesis ($1.2 billion, up 49% YoY), NewRez funded $16.3 billion in mortgages, and Sculptor AUM grew to $36 billion with strong fundraising.

• Completed the acquisition of Computershare Mortgage Services Inc., resulting in a $27.4 million bargain purchase gain, and expanded external management of Rithm Property Trust.

• Strategy focuses on growing asset management, scaling credit, opportunistic M&A, and optimizing corporate structure for value recognition.

Financial highlights

• Q2 2025 GAAP net income was $283.9 million ($0.53 per diluted share), EAD was $291.1 million ($0.54 per share), and book value per share increased to $12.71 from $12.39 sequentially.

• Revenues reached $1.22 billion in Q2 2025, up from $1.16 billion in Q2 2024; total stockholders’ equity was $8.06 billion.

• Dividend of $0.25 per share (8.9% yield) was declared, with $132.6 million paid in Q2 2025.

• Cash and liquidity stood at $2.1 billion at quarter-end.

• Price/book value was 0.96x, and market cap was $6.5 billion versus $6.7 billion book value.

Outlook and guidance

• Management expects continued growth in asset management, origination, and recurring revenue streams, with a focus on scaling credit and insurance businesses.

• Sufficient liquidity is expected to meet needs over the next 12 months, with $1.6 billion in cash and equivalents as of June 30, 2025.

• Anticipates one or two Fed rate cuts this year, supporting a steeper yield curve and favorable market conditions.

• Ongoing technology and AI investments are expected to drive operational efficiencies.

• The company intends to maintain REIT status and continue distributing at least 90% of taxable income.