Rithm Capital Corp. (NYSE: RITM) reported first‑quarter 2026 results on April 28, 2026, with revenue of $1.38 billion and GAAP net income per diluted share of $0.51. The earnings per share of $0.51 matched the consensus estimate of $0.51 and exceeded the $0.50 estimate, giving the company a $0.01 or 2% beat. The company also disclosed earnings available for distribution of $0.51 per share, a figure that aligns with analyst expectations.
Revenue of $1.38 billion surpassed the consensus estimate of $1.27 billion, an 8.5% beat that reflects robust demand in the company’s core servicing and asset‑management businesses. The strong performance was driven by a 19% annualized operating return on equity in the Newrez segment and an 80% year‑over‑year growth in origination volume for Genesis, which together lifted overall top line.
Segment analysis shows Newrez generated a 19% annualized operating ROE, while Genesis posted 80% YoY origination growth. The asset‑management platform, which includes Sculptor Capital Management and Crestline Management, ended the quarter with $59 billion in assets under management, up from $55 billion a year earlier, underscoring the company’s expanding investment footprint.
Comparing to prior periods, Q1 2025 GAAP net income was $36.5 million ($0.07 per diluted share) and Q4 2025 net income was $53.1 million ($0.09 per diluted share). The current quarter’s earnings represent a significant acceleration in profitability, with EPS rising from $0.07 to $0.51 and net income increasing from $36.5 million to $1.38 billion.
Margin analysis indicates a compression in net profit margin, which fell from 22.5% in the prior year to 15% in the current quarter. The decline reflects pricing pressure in the servicing business and higher operating costs, but the company’s cost‑control initiatives and higher‑margin asset‑management revenue helped mitigate the impact.
CEO Michael Nierenberg said, 'Despite a challenging and volatile market environment, Rithm delivered strong Q1 results, with Newrez generating a 19% annualized operating ROE, Genesis posting 80% year‑over‑year origination growth, and our asset‑management platform growing to approximately $60 billion in AUM.' He added that the company would not sacrifice credit quality for AUM growth, emphasizing underwriting discipline amid competitive lending conditions.
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