Rithm Capital Corp. (NYSE: RITM) is a global asset manager headquartered in New York City, focused on real estate, credit, and financial services. The company operates through three main segments: Origination and Servicing, Residential Transitional Lending, and Asset Management and Investment Portfolio. Its investment portfolio includes single-family rental properties, title, ...Rithm Capital Corp. (NYSE: RITM) is a global asset manager headquartered in New York City, focused on real estate, credit, and financial services. The company operates through three main segments: Origination and Servicing, Residential Transitional Lending, and Asset Management and Investment Portfolio. Its investment portfolio includes single-family rental properties, title, appraisal, and property preservation businesses, real estate securities, residential mortgage loans, collateralized loan obligations, consumer loans, excess mortgage servicing rights, and asset management investments. Rithm also originates and services government-sponsored enterprise (GSE) and government-guaranteed loans, as well as non-GSE and non-government guaranteed loans. The company qualifies as a real estate investment trust (REIT) for federal income tax purposes, distributing at least 90% of taxable income to stockholders. As of the latest data, Rithm Capital has approximately $33 billion in assets under management (AUM) and $54 billion in total assets on its balance sheet, with an employee count of around 7,240. The company was formerly known as New Residential Investment Corp. and changed its name to Rithm Capital Corp. in August 2022. It was incorporated in 2011 and launched in 2013 under Fortress Investment Group. The CEO, Michael Nierenberg, has led the company since 2013. Rithm's financial performance shows a market cap of approximately $5.69 billion, a price-to-earnings ratio of 16.7, and a dividend yield of 9.8%. The company focuses on generating long-term value through a diversified portfolio designed to perform across changing economic environments, with a rigorous risk management approach.
YoYYoY means Year-over-Year. It compares the latest annual value with the previous annual value to show long-term trend strength.
QoQQoQ means Quarter-over-Quarter. It compares the latest quarter with the immediately previous quarter to show short-term momentum changes.
RevenueThe total money that came through the front door from selling things, before paying a single bill. Think of it as the grand total of every credit card swipe from customers. (YoY compares this year to last year's performance, while QoQ compares the current three months to the previous three).
$5.7B
+20.0%
-7.1%
Net IncomeThe absolute bottom line. If the company paid every single supplier, employee, banker, and tax collector, this is the actual money left in their pocket at the end of the day.
$681.4M
-26.8%
-48.6%
Gross MarginThe basic markup. If they sell a $100 pair of sneakers, this percentage tells you how much of that price tag is profit right after paying for the rubber and shoelaces, but before paying for things like store rent or TV commercials.
+90.5%
-4.2%
-7.3%
Operating MarginThe 'day job' efficiency score. Out of every dollar a customer spends, this shows how many cents the company keeps after making the product AND paying for all the everyday corporate overhead (like salaries, marketing, and keeping the lights on).
+44.6%
-31.8%
-94.9%
Net MarginThe final take-home percentage. When you strip away every conceivable cost, tax, and interest payment, this is the exact number of cents the company truly gets to keep from every dollar in sales.
+12.0%
-39.0%
-44.7%
Free Cash FlowThe holy grail of corporate cash. It's the spendable, physical money left over after the business pays for its daily operations AND buys the big, expensive upgrades (like new factories or servers) it needs to survive. This is the 'free' money they can use to pay dividends or buy back stock.
$-762.6M
+67.1%
-32.1%
FCF MarginThe ultimate cash conversion rate. It shows how good the company is at turning regular sales directly into cold, hard, spendable cash. A high percentage means the business is an absolute cash-printing machine.
-13.4%
+72.6%
-26.9%
Debt / EquityThe financial risk gauge. It compares how much of the company's empire was built using borrowed money (loans) versus the owners' own money (shareholders). A high number means they are heavily leveraged and playing a riskier game; a low number means they are playing it safe.
469.4%
+11.6%
+2.2%
Current RatioThe 12-month survival check. It simply compares the cash they have right now (plus things they can quickly turn into cash) against the immediate bills they absolutely must pay this year. A score above 1 means they have enough in the wallet to cover the upcoming bills without panicking.
1.79x
—
-29.5%
Total AssetsThe absolute size of the company's empire. It bundles together absolutely everything of value they own—from the cash in the register and the inventory in the warehouse, to the software patents in the vault and the factories on the ground.
Operator : Good morning, and welcome to the Rithm Capital Second Quarter 2026 Earnings Call. note this event is being recorded. I would now like to turn the conference over to Emma Hoelke, Deputy General Counsel. Please go ahead.
Emma Hoelke : Thank you, and morning, everyone. I would like to thank you for joining us today for Rithm Capital's Second Quarter 2026 Earnings Call. Joining me today are Michael Nierenberg, Chairman, CEO and President of Rhythm Capital; Nick Santoro, Chief Financial Officer of Rhythm Capital; Baron Silverstein, President of NewRez; and Peter Brindley, Head of Real Estate at Elecor Properties. Throughout the call, we are going to reference the earnings supplement that was posted this morning to the Rithm Capital website, www.rithmcap.com. If you've not already done so, I'd encourage you to download the presentation now. I would like to point out that certain statements made today will be forward-looking statements. These statements, by their nature, are uncertain and may differ materially from actual results. I encourage you to review the disclaimers in our press release and earnings supplement regarding forward-looking statements and to review the risk factors contained in our annual and quarterly reports filed with the SEC. In addition, we will be discussing some non-GAAP financial measures during today's call. Reconciliations of these measures to the most directly comparable GAAP measures can be found in our earnings supplement. With that, I will turn the call over to Michael.
Michael Nierenberg : Thanks, Emma. Good morning, everyone, and thanks for joining our Rithm Q2 earnings call. The company had a terrific quarter, proving the power of the platform is working. All of our divisions, Newrez, Genesis, Sculptor, Crestline and Elecor, all delivering good results during the quarter. While the markets were extremely volatile, our results show the depth of our platform and the risk culture and experience of our investment teams. . Today, we feel the markets are different. We have a new Fed chair -- likelihood of higher rates for longer which plays extremely well for our business when you think about an $850 billion MSR portfolio. The time is now for firms like parts to differentiate ourselves with performance. Our investment professionals have been in the market for 20-plus years. We've seen the best and the worst of markets, and we will use that experience to do our best in providing alpha for our clients. Our ethos, risk management and performance first is how we think of our fiduciary responsibility to our clients and shareholders. The growth of our third-party business is something that is essential to us. When we acquired our management contract from Fortress in 2022, our goal was to build a formidable third-party business. I'm very proud of where we stand today. Our teams have Rithm, Sculptor and Crestline manage north of $60 billion in third-party assets with over 200-plus different clients and LPs. Between …
