Rithm Capital (NYSE:RITM) Posts Earnings Results, Misses Expectations By $0.02 EPS

Key Points

• Rithm reported Q1 EPS of $0.51, missing consensus by $0.02 but beating on revenue at $1.38B; the quarter included GAAP net income of $67.8M, ~ $1.4B of liquidity, a ~$7B book value and a $0.25 quarterly dividend (≈10% yield).
• Operational momentum came from asset management and lending: Sculptor and Crestline growth (Sculptor ~ $37B AUM; Crestline ~ $20B), >$2B deployed in corporate credit and >$1B in ABF, while Newrez produced ~ $274M pre-tax income (ex‑MTM), ~19% ROE, and is targeting >$65M in annual expense savings.
• Market reaction and risks: shares slipped ~2.7% after the miss and management warned the company’s complexity and headline risks could pressure valuation, though analysts remain mostly bullish (average target ~$14.06, implying roughly ~37% upside).

Rithm Capital (NYSE:RITM - Get Free Report) announced its quarterly earnings results on Tuesday. The real estate investment trust reported $0.51 earnings per share for the quarter, missing the consensus estimate of $0.53 by ($0.02), FiscalAI reports. The business had revenue of $1.38 billion during the quarter, compared to the consensus estimate of $1.25 billion. Rithm Capital had a net margin of 15.55% and a return on equity of 19.74%.

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

• Rithm reported a solid quarter with $0.51 per diluted share (EAD), $289.6M in earnings (~17% ROE), GAAP net income of $67.8M, a book value of $7B ($12.51), ~ $1.4B of liquidity, and a $0.25 quarterly dividend (10.5% yield).
• Asset-management momentum continues: Sculptor raised a $4.6B real estate fund and ended Q1 with ~$37B AUM while Crestline contributes ~ $20B AUM, and the firm deployed >$2B in corporate credit plus >$1B in ABF investments in the quarter.
• Newrez performed strongly—~$274M pre-tax income (ex. MTM), ~19% ROE, $15.5B funded volume and an ~ $850B servicing portfolio—and expects material efficiency gains from AI/Valon and HomeVision partnerships (>$65M annual expense savings targeted).
• Elecor (formerly Paramount) shows leasing momentum and operational upside: a 9.9M sq ft core portfolio ~85.7% leased (NYC core >92%), identified roughly $40M of annual management EBITDA savings, and is executing JV financings and amenity-driven repositioning to lift rents and occupancy.
• Management admits the company is complex and may trade below sum-of-the-parts value, and industry headline risks (private-credit retail flows, consumer pressure, proposed build-to-rent rules) could create near-term investor confusion or valuation pressure despite stated opportunities.

Rithm Capital Trading Down 2.7%

Shares of NYSE RITM opened at $9.85 on Wednesday. The firm's 50 day moving average price is $9.78 and its 200-day moving average price is $10.65. The company has a market cap of $5.50 billion, a PE ratio of 9.47 and a beta of 1.19. Rithm Capital has a 52-week low of $8.43 and a 52-week high of $12.74. The company has a debt-to-equity ratio of 2.20, a quick ratio of 0.58 and a current ratio of 0.58.

Rithm Capital Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, April 30th. Shareholders of record on Monday, April 6th will be issued a $0.25 dividend. The ex-dividend date of this dividend is Monday, April 6th. This represents a $1.00 annualized dividend and a yield of 10.2%. Rithm Capital's payout ratio is 96.15%.

Analyst Ratings Changes

RITM has been the subject of a number of recent research reports. Piper Sandler lowered their price objective on shares of Rithm Capital from $15.00 to $14.00 and set an "overweight" rating for the company in a report on Thursday, April 2nd. Wall Street Zen upgraded Rithm Capital from a "hold" rating to a "buy" rating in a report on Saturday, March 7th. Capital One Financial set a $12.50 target price on Rithm Capital in a research note on Thursday, April 9th. BTIG Research restated a "buy" rating and set a $16.00 target price on shares of Rithm Capital in a report on Friday, April 10th. Finally, JonesTrading reaffirmed a "buy" rating and issued a $13.50 price target on shares of Rithm Capital in a research note on Tuesday. Seven investment analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company. According to MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average target price of $14.06.

Key Headlines Impacting Rithm Capital

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

• Positive Sentiment: Company reported stronger-than-expected revenue and robust segment performance (Genesis origination growth, Newrez operating ROE, asset management AUM growth), which supports medium-term earnings prospects. Rithm Capital Corp. Announces First Quarter 2026 Results
• Positive Sentiment: Management projects Genesis 2026 production of $6.5B–$7B and is targeting $150M–$175M EBITDA, signaling clearer multi-quarter growth drivers for the RTL/finance businesses. Rithm projects $6.5B-$7B 2026 production at Genesis while targeting $150M-$175M EBITDA
• Positive Sentiment: Street bullishness: JonesTrading reaffirmed a Buy with a $13.50 price target and consensus analyst targets imply ~37% upside, which could support demand if sentiment improves. Benzinga
• Neutral Sentiment: Paramount Group rebranded to Elecor Properties to reposition its office portfolio as a modern workplace operator — strategic for long-term value but likely slow to move near-term multiples. Rithm Capital’s Paramount Group Rebrands as Elecor Properties
• Neutral Sentiment: Full earnings/quarter call coverage and transcripts are available for deeper read of guidance, MSR valuation discussion and segment nuances — useful for investors deciding whether the EPS miss changes outlook. Rithm Capital Corp. (RITM) Q1 2026 Earnings Call Transcript
• Negative Sentiment: Quarterly EPS of $0.51 missed consensus (~$0.52–$0.53) and is being highlighted by market headlines; small EPS misses can trigger selling in the alternative-asset REIT space. Rithm (RITM) Lags Q1 Earnings Estimates
• Negative Sentiment: MarketWatch notes Rithm underperformed peers on the session, suggesting broad selling pressure or profit-taking after recent gains despite the revenue beat. Rithm Capital Corp. stock underperforms Tuesday when compared to competitors

Hedge Funds Weigh In On Rithm Capital

Hedge funds and other institutional investors have recently bought and sold shares of the stock. AQR Capital Management LLC boosted its holdings in Rithm Capital by 20.4% in the first quarter. AQR Capital Management LLC now owns 77,625 shares of the real estate investment trust's stock worth $889,000 after purchasing an additional 13,166 shares during the last quarter. NewEdge Advisors LLC lifted its holdings in shares of Rithm Capital by 5.3% during the 1st quarter. NewEdge Advisors LLC now owns 31,311 shares of the real estate investment trust's stock valued at $359,000 after buying an additional 1,585 shares during the period. Goldman Sachs Group Inc. lifted its holdings in Rithm Capital by 75.6% in the first quarter. Goldman Sachs Group Inc. now owns 1,539,483 shares of the real estate investment trust's stock valued at $17,627,000 after acquiring an additional 662,585 shares during the period. Geneos Wealth Management Inc. raised its holdings in Rithm Capital by 14.3% in the 1st quarter. Geneos Wealth Management Inc. now owns 7,031 shares of the real estate investment trust's stock worth $81,000 after purchasing an additional 881 shares during the period. Finally, M&T Bank Corp lifted its position in Rithm Capital by 13.9% during the second quarter. M&T Bank Corp now owns 26,173 shares of the real estate investment trust's stock valued at $296,000 after purchasing an additional 3,200 shares in the last quarter. Institutional investors own 44.92% of the company's stock.

Rithm Capital Company Profile

Rithm Capital Corporation is a specialty finance company that originates, acquires and manages structured credit investments collateralized by real estate assets in the United States. The company focuses primarily on senior floating-rate loans secured by multifamily, commercial, industrial and single-family rental properties, aiming to deliver attractive risk-adjusted yields through a diversified portfolio of floating-rate real estate debt.

In addition to senior loans, Rithm Capital invests in residential mortgage-backed securities, including agency and non-agency pools, as well as other real estate-related credit instruments.