Rithm Capital (NYSE:RITM) Releases Earnings Results, Beats Estimates By $0.05 EPS

Rithm Capital (NYSE:RITM) posted its quarterly earnings results on Friday. The real estate investment trust reported $0.55 EPS for the quarter, topping analysts’ consensus estimates of $0.50 by $0.05, FiscalAI reports. The business had revenue of $1.76 billion during the quarter, compared to analysts’ expectations of $1.47 billion. Rithm Capital had a return on equity of 19.86% and a net margin of 9.20%.

Here are the key takeaways from Rithm Capital’s conference call:

• Strong third-quarter results included $0.55 of EAD per diluted share, $315 million of EAD, $217 million of GAAP net income, and a 24% operating ROE at NewRez; EAD has exceeded dividends for 28 consecutive quarters.
• NewRez’s approximately $880 billion MSR portfolio continued to benefit from higher interest rates and low prepayment speeds, while the servicing platform added 15 clients and roughly $80 billion of loan boardings year to date.
• Management expects about $125 million in annual NewRez savings from AI and technology investments, with HomeVision straight-through processing expected in the fourth quarter and migration to Valon’s servicing platform beginning in early 2027.
• Asset management momentum continued, with $569 million of new capital raised during the quarter, more than $60 billion of third-party AUM, and a target of $75 billion-$80 billion by the end of 2028; management highlighted strong demand for asset-backed finance, credit, and real estate strategies.
• Mortgage originations faced pressure from higher rates, with NewRez funded volume down 19% sequentially and management expecting roughly a 25% decline from September to October; gain-on-sale margins, particularly in wholesale, remain under competitive pressure.

Rithm Capital Stock Performance

NYSE:RITM traded up $0.71 on Friday, hitting $9.39. The stock had a trading volume of 15,799,855 shares, compared to its average volume of 7,393,574. The company has a quick ratio of 0.58, a current ratio of 0.58 and a debt-to-equity ratio of 2.19. Rithm Capital has a 52-week low of $8.31 and a 52-week high of $12.15. The business’s 50-day simple moving average is $9.40 and its two-hundred day simple moving average is $9.49. The stock has a market cap of $5.25 billion, a price-to-earnings ratio of 15.66, a price-to-earnings-growth ratio of 0.55 and a beta of 1.16.

Rithm Capital Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Friday, October 30th. Shareholders of record on Thursday, October 1st will be given a $0.25 dividend. This represents a $1.00 annualized dividend and a yield of 10.6%. The ex-dividend date of this dividend is Thursday, October 1st. Rithm Capital’s dividend payout ratio (DPR) is presently 166.67%.

Insider Activity

In other Rithm Capital news, Director Peggy Hebard sold 14,520 shares of the stock in a transaction on Thursday, August 20th. The shares were sold at an average price of $10.18, for a total transaction of $147,813.60. Following the completion of the transaction, the director owned 82,259 shares in the company, valued at $837,396.62. This trade represents a 15.00% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. 0.57% of the stock is owned by company insiders.

Key Headlines Impacting Rithm Capital

Here are the key news stories impacting Rithm Capital this week:

• Positive Sentiment: Adjusted earnings beat estimates: Earnings available for distribution were $0.55 per diluted share, above the $0.50 FactSet consensus and $0.51 Zacks estimate. This extended Rithm’s reported earnings-beat streak and represented a modest improvement from $0.54 a year earlier. Earnings Flash: Rithm Capital Q3 adjusted EPS
• Positive Sentiment: Revenue substantially exceeded expectations: Third-quarter revenue reached $1.76 billion, compared with the $1.47 billion FactSet forecast and $1.28 billion in the second quarter. The 37% sequential increase was driven in part by stronger net servicing revenue. Earnings Flash: Rithm Capital Q3 revenue
• Positive Sentiment: Operating performance and income improved: GAAP net income attributable to common shareholders was $217.1 million, or $0.38 per diluted share, versus $0.04 per share in the prior quarter. Newrez generated $329.7 million in pretax operating income, while Genesis Capital originated $1.5 billion of residential transition loans.
• Positive Sentiment: Dividend and asset-management scale support the investment case: Rithm declared a $0.25-per-share common dividend and ended the quarter with approximately $61 billion in assets under management. Management highlighted growth in fee-based earnings through new funds and continued platform expansion. Rithm Capital Third Quarter 2026 Results
• Neutral Sentiment: Analyst support remains constructive: Wedbush reaffirmed its “outperform” rating and set a $10 price target, suggesting further upside from recent trading levels, although the target does not guarantee future performance. Wedbush Rithm Capital rating

Analyst Ratings Changes

A number of research analysts have commented on the company. Weiss Ratings lowered Rithm Capital from a “hold (c-)” rating to a “sell (d+)” rating in a report on Friday, October 2nd. Wall Street Zen raised Rithm Capital from a “sell” rating to a “hold” rating in a research report on Saturday, August 1st. Piper Sandler dropped their price objective on Rithm Capital from $14.00 to $12.50 and set an “overweight” rating on the stock in a research note on Thursday, July 2nd. Wedbush reaffirmed an “outperform” rating and set a $10.00 price target on shares of Rithm Capital in a research report on Thursday. Finally, UBS Group cut their target price on shares of Rithm Capital from $14.50 to $14.00 and set a “buy” rating for the company in a research report on Friday, August 21st. Ten equities research analysts have rated the stock with a Buy rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $12.80.

About Rithm Capital

Rithm Capital Corp. is a real estate investment trust and financial services company focused primarily on residential real estate and mortgage-related investments. Formerly known as New Residential Investment Corp., the company adopted the Rithm Capital name in 2022.

Through its operating businesses and investment platforms, Rithm participates in mortgage servicing, mortgage origination, residential mortgage loans, mortgage servicing rights and other housing-related assets. Its businesses include Newrez, a mortgage platform that provides home loan origination, servicing and related services, as well as other investments connected to residential real estate and private lending.

Rithm primarily serves the U.S.