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Rithm Capital Corp.: Q1 FY2026 earnings call

What management said about Q1 FY2026, from the documents filed with the SEC on 28 April 2026: press release. The quarter’s numbers.

Key takeaways

  • GAAP net income rose to $67.8 million: Net income attributable to common stockholders was $67.8 million, or $0.12 per diluted share, against $53.1 million, or $0.09, in the fourth quarter of 2025. Source
  • Earnings available for distribution declined: The non-GAAP measure was $289.6 million, or $0.51 per diluted share, against $418.9 million, or $0.74, in the prior quarter. The company reconciles it to GAAP net income. Source
  • Newrez pre-tax operating income rose: Pre-tax operating income of $273.7 million excluded MSR mark-to-market loss, net of hedges, and other items of $(23.1) million; Q4 2025 was $249.1 million on $(216.5) million of such items. Source
  • Genesis origination volume up 80%: Genesis Capital recorded $1.6 billion of origination volume, up 80% year over year, which the release describes as continuing a series of record volume quarters. Source
  • AUM about $59 billion: Assets under management were about $59 billion at March 31, 2026, against $35 billion a year earlier, with the Crestline acquisition and fund raising cited as drivers. The Q4 release put Sculptor AUM at $38 billion. Source
  • Paramount Group rebranded as Elecor Properties: The platform was rebranded to align the corporate brand with the vision to elevate the portfolio, properties and tenant experience. Source
  • Pre-tax income fell to $154.2 million: Income before income taxes was $154.2 million against $206.3 million; income tax expense was $44.8 million against $115.7 million; realized and unrealized losses were $15.2 million. Source

“Despite a challenging and volatile market environment, Rithm delivered strong Q1 results, with Newrez generating a 19% annualized operating ROE”

Michael Nierenberg, CEO of Rithm Capital

What changed from last quarter

  • New: The commercial real estate platform Paramount Group was rebranded as Elecor Properties, which the release says aligns the corporate brand with the platform's vision. Source
  • New: Sculptor Capital and Crestline are reported together as Rithm Asset Management, a name the prior release did not use; the prior release described Sculptor Capital alone. Source

Earnings and per-share results

  • GAAP net income rose to $67.8 million: Net income attributable to common stockholders was $67.8 million, or $0.12 per diluted share, against $53.1 million, or $0.09, in the fourth quarter of 2025. Source
  • Earnings available for distribution declined: The non-GAAP measure was $289.6 million, or $0.51 per diluted share, against $418.9 million, or $0.74, in the prior quarter. The company reconciles it to GAAP net income. Source
  • Book value per share eased: Book value per common share was $12.51 at March 31, 2026, against $12.66 in the fourth quarter release. Source
  • Quarterly dividend unchanged at $0.25: The common dividend totaled $139.6 million, against $139.0 million in the fourth quarter, with dividends declared per share unchanged at $0.25. Source

Origination and servicing at Newrez

  • Newrez pre-tax operating income rose: Pre-tax operating income of $273.7 million excluded MSR mark-to-market loss, net of hedges, and other items of $(23.1) million; Q4 2025 was $249.1 million on $(216.5) million of such items. Source
  • Operating return on equity of 19%: The non-GAAP ROE is annualized pre-tax operating income divided by average Origination and Servicing segment ending equity of $5.7 billion. Source
  • Funded production fell from Q4: Origination funded production volume was $15.5 billion, down from $18.8 billion in Q4 2025 and up 31% year over year, according to the prior release's comparison. Source
  • Servicing book reached $850 billion: Total servicing UPB was $850 billion at March 31, 2026, including $257 billion of third-party servicing; the prior release gave $852 billion at year-end 2025. Source

“we are confident the current conditions create compelling opportunities to drive long-term value for our shareholders”

Michael Nierenberg, CEO of Rithm Capital

Genesis and investment portfolio

  • Genesis origination volume up 80%: Genesis Capital recorded $1.6 billion of origination volume, up 80% year over year, which the release describes as continuing a series of record volume quarters. Source
  • New sponsor count more than tripled: New sponsors funded rose to 118 in the quarter, up 258% year over year; total sponsors funded reached 266, up 40%. Source
  • Four non-QM securitizations completed: The company completed four non-qualified mortgage securitizations in the quarter, with $2.0 billion of UPB in total. Source

Asset management platform

  • AUM about $59 billion: Assets under management were about $59 billion at March 31, 2026, against $35 billion a year earlier, with the Crestline acquisition and fund raising cited as drivers. The Q4 release put Sculptor AUM at $38 billion. Source
  • Real Estate Fund V commitment: Sculptor Capital committed over $1 billion to its latest Real Estate Fund V and deployed over $2 billion into corporate credit and asset-based finance investments in the quarter. Source
  • Crestline lending fund gathers inflows: Crestline Lending Solutions Fund took $100 million of net inflows from institutional investors, bringing total commitments to over $500 million. Source
  • New U.S. CLO added: Sculptor Capital continued its CLO activity with a new U.S. CLO of about $400 million of AUM in the first quarter of 2026. Source

Commercial real estate and Elecor

  • Paramount Group rebranded as Elecor Properties: The platform was rebranded to align the corporate brand with the vision to elevate the portfolio, properties and tenant experience. Source
  • New York leases and occupancy gained: New York City lease occupancy rose 4.7% year over year, and new lease activity exceeded 350,000 square feet, 74% of it in the San Francisco portfolio. Source
  • 1325 Avenue of the Americas refinanced: The asset was refinanced through a single-asset, single-borrower commercial mortgage-backed securities financing. Source

Revenue, costs and segment results

  • Total revenue rose on rentals: Total revenue was $1,380.2 million against $1,290.7 million; rental revenue rose to $191.7 million from $46.2 million, while asset management revenue fell to $106.6 million from $359.5 million. Source
  • Expenses rose on depreciation: Total expenses were $1,237.7 million against $1,174.1 million; depreciation and amortization rose to $92.6 million from $36.0 million, and compensation and benefits fell to $378.4 million from $453.9 million. Source
  • Pre-tax income fell to $154.2 million: Income before income taxes was $154.2 million against $206.3 million; income tax expense was $44.8 million against $115.7 million; realized and unrealized losses were $15.2 million. Source
  • Segment pre-tax results diverged: Pre-tax income: Origination and Servicing $250.6 million; Residential Transitional Lending $23.1 million; Asset Management $(28.7) million; Investment Portfolio $19.5 million; Commercial Real Estate $(34.6) million; Corporate $(75.7) million. Source

Balance sheet and capital

  • Total assets and equity rose slightly: Total assets were $53.37 billion against $53.06 billion at December 31, 2025; the prior release showed $53.07 billion for that date. Total stockholders’ equity was $9.14 billion. Source
  • Preferred shares outstanding rose: Preferred shares outstanding rose to 67,564,122 from 57,564,122, with aggregate liquidation preference of $1.69 billion against $1.44 billion. Preferred dividends were $34.8 million against $31.9 million. Source
  • Common shares and diluted count rose: Weighted average diluted shares were 565,927,074 for the quarter, against 564,691,202 in the fourth quarter of 2025. Source
  • Secured funding and cash balances: Secured financing agreements were $13.92 billion against $13.76 billion, and secured notes and bonds payable were $14.83 billion against $15.20 billion; cash fell to $2.37 billion from $2.66 billion. Source

Figures management reported

FigureReported
New York City lease occupancy Sourceup 4.7% year over year
New lease activity Sourceover 350k square feet

Risks management discussed

  • External: Management described the market environment as challenging and volatile, and framed the quarter's results against that backdrop. Source
  • Financial: Mortgage servicing rights mark-to-market losses, net of hedges, are excluded from Newrez operating income, which the release reports as a separate item. Source

Earlier plans management reported on

  • Not stated: Management referred to the previously announced forward flow agreement with Upgrade, reporting $140 million of loans bought in the quarter and $667 million purchased to date. Source

Other quarters

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.