Q2 2025 Rithm Capital Corp Earnings Call Transcript
Key Points
- Rithm Capital Corp (RITM) reported a strong quarter with a GAAP net income of $283.9 million, translating to $0.53 per diluted share.
- The company achieved a return on equity of 17% and earnings available for distribution of $291.1 million, or $0.54 per diluted share, representing an 18% return on equity.
- Rithm Capital Corp (RITM) has a robust asset management platform with $80 billion in managed assets and $8 billion in permanent capital.
- The company has seen significant growth in its Origination business, with Genesis achieving record production and Newrez becoming the fourth largest mortgage originator in the U.S.
- Rithm Capital Corp (RITM) continues to expand its asset management business, with inflows across real estate and asset-based finance products, and a new strategic partnership for residential transition loans.
- Despite strong performance, Rithm Capital Corp (RITM) feels undervalued in the market, with a stock price not reflecting the sum of its parts.
- The company faces margin compression in its Origination business due to market competition.
- Rithm Capital Corp (RITM) is cautious about credit markets, particularly on the corporate side, due to tight spreads.
- The company is challenged by the need to balance growing its asset management business while maintaining earnings at the corporate level.
- Rithm Capital Corp (RITM) is exploring M&A opportunities in the insurance sector but faces difficulties in finding appropriately valued targets.
Good day, and welcome to the Rithm Capital second-quarter 2025 earnings conference call. (Operator Instructions) Please note this event is being recorded.
I would now like to turn the conference over to Emma Bolla, Associate General Counsel. Please go ahead.
Thank you and good morning, everyone. I would like to thank you for joining us today for Rithm Capital's second-quarter 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're 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
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