Q4 2025 Rithm Capital Corp Earnings Call Transcript
Key Points
- Rithm Capital Corp (RITM) reported a record fourth quarter from an Earnings Available for Distribution (EAD) perspective, showcasing the diversification of its platform.
- The Genesis business had a record year, producing nearly $5 billion in loans and increasing earnings by 250% since its acquisition in 2022.
- Newrez, the mortgage company, experienced a 13% year-over-year growth in earnings, highlighting strong performance in the mortgage sector.
- The company successfully executed transformative transactions in technology, including partnerships with Valon Technologies and HomeVision, enhancing their servicing and underwriting capabilities.
- Rithm Capital Corp (RITM) expanded its asset management business through acquisitions, including Crestline Asset Management, and launched new funds, contributing to a significant increase in assets under management.
- The San Francisco core portfolio's leased occupancy was down year-over-year, driven by large move-outs, indicating challenges in the commercial real estate market in that region.
- Despite a strong performance, the company faced mark-to-market volatility in its MSR business due to seasonal increases in delinquencies and advances.
- The competitive mortgage market has led to pressure on gain on sale margins, although Rithm Capital Corp (RITM) managed to maintain pricing discipline.
- The company is exploring capital raising for the Paramount acquisition, indicating potential liquidity constraints or the need for strategic partnerships.
- Rithm Capital Corp (RITM) remains in a REIT structure, which may limit its flexibility in capital allocation and growth strategies compared to a C-corp structure.
Good morning, and welcome to the Rithm Capital fourth quarter 2025 conference call. (Operator Instructions) Please also note today's event is being recorded. At this time, I'd like to turn the floor over to Emma Hoelke, Deputy General Counsel. Ma'am, please go ahead
Thank you, and good morning, everyone. I would like to thank you for joining us today for Rithm Capital's fourth quarter and full year 2025 earnings call. Joining me today are Michael Nierenberg, Chairman, CEO and President of Rithm Capital; Nick Santoro, Chief Financial Officer of Rithm Capital; and Baron Silverstein, President of NewRez.
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
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
