Rithm Capital (RITM) Q4 2025 earnings summary

Executive summary

• Ended 2025 with over $100 billion in investable assets, driven by record earnings available for distribution (EAD) and strong year-over-year growth in asset management and mortgage businesses.

• Expanded platform through key acquisitions, including Crestline Asset Management and Paramount, enhancing diversification and recurring revenue streams.

• Genesis and Newrez delivered record origination and earnings, with Genesis originations at $4.8 billion and Newrez pre-tax income up 17% year-over-year.

• Significant investments in technology and leadership, including partnerships with Valon and HomeVision to enhance servicing and origination efficiency.

• Closed key transactions, expanded client franchise, and maintained solid earnings, positioning for growth in 2026.

Financial highlights

• Full-year 2025 EAD: $2.35 per diluted share, up 12% year-over-year; Q4 EAD: $0.74 per diluted share.

• GAAP net income for 2025: $567 million ($1.04 per diluted share); Q4 GAAP net income: $53 million ($0.09 per share).

• Book value per share at year-end: $12.66; dividend yield at 9.2% with $1.00 per share paid in FY25.

• Paid over $600 million in dividends in 2025; cumulative dividends since inception exceed $6 billion.

• Ended year with $1.7 billion in cash and liquidity after funding all business needs, including Paramount acquisition.

Outlook and guidance

• Entering 2026 well-positioned for growth, leveraging scale, diversity, and proprietary insight to capture strategic opportunities.

• Expecting 2026 mortgage production to increase by 10%, with higher home purchase and refinance volumes anticipated.

• Continued focus on disciplined growth, performance-driven asset management, and expanding product offerings for LPs and shareholders.

• Agency MBS and office CRE valuations expected to revert higher, benefiting portfolio valuations.

• Anticipate further growth in ABF and non-agency origination, leveraging technology and market trends.