Rithm Capital Reports $54.11 Billion in Total Assets and $67.91 Million Net Income for Q2 2026

Rithm Capital Corp. reported total assets of $54.11 billion as of June 30, 2026, a slight increase from $53.06 billion at the end of the previous fiscal year. Total liabilities also saw an increase, reaching $44.66 billion from $43.81 billion. Stockholders' equity attributable to Rithm Capital Corp. stood at $8.52 billion, up from $8.43 billion at year-end 2025. For the three months ended June 30, 2026, the company reported net income of $67.91 million, a significant decrease from $318.01 million in the same period of the prior year. This decline is largely attributed to a substantial negative change in the fair value of mortgage servicing rights (MSRs) and MSR financing receivables, which amounted to a loss of $392.88 million compared to a loss of $155.01 million in the prior year's quarter.

The company's revenue for the three months ended June 30, 2026, was $1.28 billion, a modest increase from $1.22 billion in the comparable period of 2025. This growth was primarily driven by a $182.13 million increase in commercial real estate revenue, reflecting the acquisition of Elecor (formerly Paramount Group) in December 2025, and a $47.22 million increase in asset management revenue. However, this was partially offset by a $178.06 million decrease in servicing revenue, net, and a $392.88 million decrease in the change in fair value of MSRs and MSR financing receivables, net of economic hedges. Expenses also rose, with interest expense and warehouse line fees increasing by $46.25 million and general, administrative, and operating expenses by $91.57 million year-over-year for the quarter.

Rithm Capital's strategic initiatives during the period included the acquisition of Elecor (formerly Paramount Group) in December 2025 for approximately $1.8 billion, which expanded its commercial real estate portfolio, and the acquisition of Crestline Management, L.P. in December 2025 to enhance its asset management capabilities. The company also issued $500.0 million in senior unsecured notes due 2031 in May 2026. These strategic moves are aimed at diversifying the company's revenue streams and expanding its market presence.

Operationally, the company's Origination and Servicing segment, operating through Newrez LLC and New Residential Mortgage LLC, continued to be a significant contributor. As of June 30, 2026, Newrez serviced approximately $865.2 billion in UPB, serving approximately 4.0 million customers. The Residential Transitional Lending segment, through Genesis Capital LLC, originated loans with a total commitment of $7.39 billion as of June 30, 2026. The Asset Management segment managed approximately $61 billion in assets under management as of June 30, 2026. The Commercial Real Estate segment, bolstered by the Elecor acquisition, now includes a portfolio of Class A office properties in New York City and San Francisco, with a same-store leased occupancy of 86.5% as of June 30, 2026.

Looking ahead, Rithm Capital anticipates continued market volatility due to persistent inflation, fluctuating interest rates, and geopolitical tensions. The company's outlook is influenced by macroeconomic conditions, including the Federal Reserve's monetary policy, labor market trends, and the performance of the housing and commercial real estate markets. Rithm Capital intends to maintain its qualification as a REIT, which requires distributing at least 90% of its REIT taxable income annually. The company's liquidity is expected to be sufficient to meet its obligations over the next twelve months, supported by cash on hand, operating cash flow, and its ability to refinance secured financing agreements.