Rithm Capital (RITM) Financials

Rithm Capital (NYSE: RITM) has demonstrated significant fluctuations and evolving financial dynamics over the last four years through Q1 2025. Below are the key trends and insights derived from their quarterly income statements, cash flow statements, and balance sheets.

• Consistent growth in consolidated net income from early 2023 through 2024, peaking in Q3 2024 with $684.55 million in net income from continuing operations.
• Strong operating cash flow in recent quarters, with net cash from continuing operating activities increasing notably to $1.42 billion in Q1 2025, supporting liquidity and operational sustainability.
• Increasing total assets over the period, growing from approximately $31.8 billion in Q1 2023 to over $45.3 billion by Q1 2025, reflecting business expansion.
• Mortgage servicing rights and loans held for sale constitute a large portion of assets, indicating significant involvement in mortgage-related activities which can generate fees and servicing income.
• Consistent payment of cash dividends at $0.25 per share each quarter, highlighting commitment to returning value to shareholders.

• Rithm Capital reports no interest income or expense since 2023, indicating a focus away from traditional interest-bearing assets or liabilities.
• High volatility in net realized and unrealized capital gains on investments, contributing substantially to total non-interest income but with considerable swings (e.g., $207 million gain in Q1 2025 versus a loss in previous quarters).
• Large amounts of issuance and repayment of debt each quarter, balancing out, likely reflecting active management of capital structure and financing needs.
• Weighted average shares outstanding have gradually increased from 478 million basic shares in Q1 2023 to 524 million by Q1 2025, slightly diluting EPS but providing capital through equity issuances.

• Net income attributable to common shareholders has been highly variable, including a significant net loss of $87.5 million in Q4 2023, indicating some periods of operational or market challenges.
• Significant non-interest expenses, particularly other operating expenses growing from around $471 million in Q1 2023 to $657 million by Q1 2025, which pressures profitability.
• Negative total non-interest income in Q4 2022 at over -$4 billion, likely reflecting substantial unrealized losses or impairments impacting total revenue negatively in that period.
• Non-controlling interest and preferred stock dividends consistently reduce net income available to common shareholders, with preferred dividends around $22-27 million quarterly, which is a notable cash outflow.
• Net cash from investing activities is consistently negative, reflecting substantial investment purchases outpacing sales, which though potentially growth-oriented, represents cash outflow that must be managed carefully.

Summary: Rithm Capital has exhibited strong growth in assets and cash from operations with regular dividend payments, which are positive signs for investors. However, earnings volatility, high operating expenses, and fluctuations in investment gains introduce risks. Careful monitoring of capital structure, dividend sustainability, and expense management will be important for future performance.