RITM

It has been about a month since the last earnings report for SoFi Technologies, Inc. (SOFI). Shares have added about 16.5% in that time frame, outperforming the S&P 500. But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is SoFi Technologies due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its latest earnings report in order to get a better handle on the important drivers. SoFi delivered second-quarter 2026 adjusted earnings per share (EPS) of 12 cents. The metric outpaced the Zacks Consensus Estimate by 9.1%. Adjusted net revenues increased 40% year over year to $1.21 billion. The figure surpassed the Zacks Consensus Estimate of $1.11 billion by 8.3%. Total net revenues were $1.22 billion, rising 43% year over year. Profitability also improved despite continued investment in growth initiatives. Adjusted EBITDA increased 44% to $357.8 million, and adjusted EBITDA margin reached 30% compared with 29% in the prior-year quarter. Net interest margin remained healthy at 5.98%, up 12 basis points year over year and 4 basis points sequentially. This supported a 52% increase in net interest income to $788.2 million. Management highlighted second-quarter 2026 as the company’s 19th consecutive quarter meeting the Rule of 40 benchmark. The Rule of 40 score was 70, based on 40% adjusted net revenue growth and a 30% adjusted EBITDA margin. Member acquisition remained one of the strongest indicators of platform momentum. SoFi added 1.1 million new members in the second quarter of 2026, bringing total members to 15.8 million, up 35% year over year. Product growth was even stronger. The company added a record 2.2 million products in the second quarter of 2026, bringing total products to 24.4 million, up 42% year over year. Products per member reached an all-time high of 1.54. The reported quarter marked the first time SoFi added twice as many products as members. Existing members opened 51% of new products, compared with 35% in second-quarter 2025, showing improving cross-buy trends across the platform. Management pointed to SoFi Plus and SoFi Coach as important drivers of deeper engagement. SoFi Plus surpassed 200,000 paid members, while SoFi Coach generated more than 500,000 conversations with more than 90% positive feedback. The Lending segment continued to drive consolidated performance in second-quarter 2026. Adjusted net revenue increased 59% year over year to $711.7 million, while contribution profit rose 63% to $399 million. Total loan originations reached a record $14.8 billion, up 69% year over year. Personal loan originations increased 54% to $10.7 billion, student loan originations surged 170% to $2.7 billion and home loan originations rose 74% to $1.4 billion. Credit metrics remained supportive. The personal loan net charge-off rate was 2.62%, down 21 basis points year over year and 41 basis points sequentially. Student loan net charge-offs were 0.61%, down 33 basis points year over year. The loan platform business also remained an important growth lever. SoFi sold or transferred $4.1 billion of personal and home loans, including $3.1 billion through the loan platform business. The Financial Services segment continued to broaden SoFi’s revenue base. Net revenues increased 29% year over year to $466.3 million, supported by deposit growth, interchange, brokerage and referral activity. Contribution profit rose 13% year over year to $212.7 million. Contribution margin declined to 46% from 52% in prior-year period, reflecting higher spending and investment in product innovation. As of June 30, 2026, deposits reached $45.5 billion, up 21% from Dec. 31, 2025. Deposits also increased $5.3 billion sequentially, supporting SoFi’s funding base and balance sheet flexibility. Transactional revenue trends were also strong. Interchange revenues increased 55% year over year, while brokerage revenues rose roughly 2.5 times year over year as SoFi Invest gained traction. The Technology Platform segment remained the weakest area in the reported quarter. Net revenues declined 23% year over year to $84.5 million, reflecting the impact of a large client that transitioned off the platform before year-end 2025. Contribution profit fell 65% year over year to $11.8 million. Contribution margin declined to 14% from 30% in prior-year quarter, underscoring the near-term pressure from lost scale and transition costs. Technology Platform accounts totaled 135 million, down 16% year over year but up 2 million sequentially. The sequential improvement suggests some stabilization, though the segment continues to lag SoFi’s stronger lending and financial services businesses. Management relaunched the business under the unified SoFi Tech Solutions brand. The platform now emphasizes processing, core ledger, payments hub and risk and fraud capabilities. SoFi ended the second quarter with $60.95 billion in total assets, up from $50.66 billion at Dec. 31, 2025. Loans held for sale increased 30% from year-end 2025 to $29.74 billion, reflecting continued loan origination growth. Capital levels remained strong. The total risk-based capital ratio was 18.8%, while available liquidity was $13.7 billion. Cash flow from operations was negative $6.2 billion, reflecting a high loan pipeline build. Management raised full-year 2026 adjusted net revenue guidance to $4.75 billion to $4.85 billion, implying 32-35% year-over-year growth. The prior outlook implid approximately 30% growth. The company maintained full-year 2026 guidance for adjusted EBITDA of approximately $1.6 billion, adjusted net income of approximately $825 million and adjusted EPS of approximately 60 cents. Management also continues to expect total members to increase by at least 30% year over year in fiscal 2026. Since the earnings release, investors have witnessed a downward trend in estimates review. Currently, SoFi Technologies has a poor Growth Score of F, however its Momentum Score is doing a lot better with a C. However, the stock was allocated a grade of F on the value side, putting it in the bottom 20% quintile for value investors. Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been broadly trending downward for the stock, and the magnitude of these revisions looks promising. Notably, SoFi Technologies has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months. SoFi Technologies belongs to the Zacks Financial - Miscellaneous Services industry. Another stock from the same industry, Rithm (RITM), has gained 1.4% over the past month. More than a month has passed since the company reported results for the quarter ended June 2026. Rithm reported revenues of $1.28 billion in the last reported quarter, representing a year-over-year change of +5.4%. EPS of $0.60 for the same period compares with $0.54 a year ago. Rithm is expected to post earnings of $0.51 per share for the current quarter, representing a year-over-year change of -5.6%. Over the last 30 days, the Zacks Consensus Estimate has changed -6.8%. Rithm has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of D. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report SoFi Technologies, Inc. (SOFI) : Free Stock Analysis Report Rithm Capital Corp. (RITM) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

A month has gone by since the last earnings report for Rithm (RITM). Shares have added about 0.9% in that time frame, underperforming the S&P 500. Will the recent positive trend continue leading up to its next earnings release, or is Rithm due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts. Rithm Capital posted second-quarter 2026 earnings available for distribution of 60 cents per share, beating the Zacks Consensus Estimate of 50 cents. The figure increased 11.1% from 54 cents in the prior-year quarter. Quarterly results reflected higher asset management revenues, interest income and commercial real estate revenues. Strong residential transitional lending originations were other positives. However, lower servicing revenues and higher operating expenses were the undermining factors. Net income attributable to common stockholders (GAAP) was $20.2 million, down 92.9% from $283.9 million in the prior-year quarter. Revenues & Expenses Increase Total revenues were $1.28 billion, up 5.4% year over year. The metric missed the Zacks Consensus Estimate of $1.46 billion by 12.1%. Rithm Capital’s total operating expenses were $1.28 billion, up 34% year over year. Segment Performance & Business Momentum Newrez posted pre-tax operating income of $307.6 million in the second quarter, excluding MSR mark-to-market loss, net of hedges, and other non-operating items of $194.5 million. This rose 11.8% from $275.1 million in the prior-year quarter. Newrez generated a 22% annualized operating return on equity on $5.7 billion of average ending segment equity. The total servicing unpaid principal balance reached $865.2 billion at the end of the quarter, including $268.4 billion in third-party servicing. Funded origination volume was $15.9 billion, down 2% year over year. Genesis Capital recorded second-quarter origination volume of $1.9 billion, up 52% year over year and marking its strongest origination quarter. Genesis expanded its sponsor base by funding 125 new sponsors during the quarter, marking an increase of 46% year over year. Rithm Asset Management had approximately $61 billion in assets under management as of June 30, 2026, up 69.4% from approximately $36 billion in the prior-year quarter. The increase was driven by $1.9 billion in gross inflows and new fund commitments. Asset management revenues were approximately $141 million, up 48.4% year over year, driven by higher incentive fee income. Balance Sheet Expands As of June 30, 2026, total assets were $54.11 billion, up 22.1% from $44.32 billion at June 30, 2025. Cash, cash equivalents and restricted cash increased 17.7% to $2.45 billion from $2.09 billion in the year-ago quarter. For 2026, management expects Genesis to generate $6.5-$7 billion of production and $150-$175 million of EBITDA. In the past month, investors have witnessed a downward trend in estimates revision. The consensus estimate has shifted -7.32% due to these changes. Currently, Rithm has a poor Growth Score of F, however its Momentum Score is doing a lot better with a B. Following the exact same course, the stock was allocated a score of B on the value side, putting it in the second quintile for value investors. Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Rithm has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months. Rithm belongs to the Zacks Financial - Miscellaneous Services industry. Another stock from the same industry, Moody's (MCO), has gained 6.5% over the past month. More than a month has passed since the company reported results for the quarter ended June 2026. Moody's reported revenues of $2.19 billion in the last reported quarter, representing a year-over-year change of +15.1%. EPS of $4.68 for the same period compares with $3.56 a year ago. Moody's is expected to post earnings of $4.26 per share for the current quarter, representing a year-over-year change of +8.7%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged. The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Moody's. Also, the stock has a VGM Score of D. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Rithm Capital Corp. (RITM) : Free Stock Analysis Report Moody's Corporation (MCO) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management attributes the quarter's success to the depth of their diversified platform, which now manages over $100 billion in total investable assets across balance sheet and third-party capital. The strategic pivot toward a third-party asset management model is accelerating, with AUM reaching $61 billion and 71% of that capital classified as longer-term. Performance in the real estate sector is driven by a 'low basis' entry strategy, acquiring Class A office assets at approximately 75% discounts to replacement costs in New York and San Francisco. Genesis Capital's growth is fueled by high demand for short-duration residential transitional loans, with quarterly production now matching what the firm previously achieved in a full year. Newrez performance was sustained by disciplined pricing and a focus on non-agency wholesale channels, intentionally avoiding market share battles that would compromise margins. The company is leveraging its $850 billion MSR portfolio as a natural hedge against the 'higher for longer' interest rate environment, which management believes plays to their core strengths. Operational efficiency is being prioritized through technology partnerships, including a planned transition to the Valon operating system expected to significantly reduce servicing costs per loan. Management expects to potentially double third-party AUM over the next few years by expanding product offerings in asset-based financing (ABF), direct lending, and insurance solutions. The Elecor real estate strategy assumes significant rent growth and occupancy gains in 2026 following the completion of major capital improvement projects in trophy office assets. Genesis Capital is projected to see continued expansion, particularly in the multifamily lending space, targeting a total addressable market that management believes is only 'scratching the surface'. The transition to the Valon servicing platform in early 2027 is estimated to deliver annual expense savings exceeding $65 million, reducing direct cost per loan by 21%. Future capital allocation will prioritize reinvestment into the business and fund growth over share buybacks or dividend increases, as management seeks to maximize long-term shareholder value through platform scaling. The company successfully rebranded its real estate operating arm to Elecor Properties (formerly Paramount) and achieved $44 million in management-level G&A efficiencies. A significant gap exists between GAAP net income ($0.04 per share) and Earnings Available for Distribution ($0.60 per share), primarily due to mark-to-market movements in MSR hedges. Management flagged potential headwinds in the Single-Family Rental (SFR) space due to regulatory 'noise' in Washington D.C., though they remain optimistic about the broader residential sector. The company is actively pursuing joint venture partners for specific real estate assets, such as 1301 Avenue of the Americas, to recycle capital and validate asset valuations. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management explicitly stated they are 'likely not going to buy back stock' despite the discount to book value, preferring to use capital to grow the asset management franchise. CEO Michael Nierenberg argued that historical buybacks in the sector haven't significantly moved stock prices and that the firm needs capital to scale its high-return operating businesses. Management clarified that while Sculptor incentive fees typically crystallize in Q4, the Q2 results included some off-cycle realizations. Excluding these incentive fees and one-time hedge gains, the core Earnings Available for Distribution (EAD) run rate is estimated at approximately $0.50 per share. Management noted that MSRs are currently 'negatively convexed,' meaning there is less room for error in valuation, leading to a more cautious approach to new production. While investing in AI for refinancing efficiency, management believes the market has not yet seen the full impact of these technologies on prepayment speeds or operational costs. Growth will be driven by shifting more production into third-party funds and insurance SMAs rather than just holding loans on the balance sheet. The company is expanding its focus toward larger multifamily loans (averaging $10 million to $11 million) to capture a larger share of the addressable market.

Rithm Capital Corp. RITM posted second-quarter 2026 earnings available for distribution of 60 cents per share, beating the Zacks Consensus Estimate of 50 cents. The figure increased 11.1% from 54 cents in the prior-year quarter. Quarterly results reflected higher asset management revenues, interest income and commercial real estate revenues. Strong residential transitional lending originations were other positives. However, lower servicing revenues and higher operating expenses were the undermining factors. Net income attributable to common stockholders (GAAP) was $20.2 million, down 92.9% from $283.9 million in the prior-year quarter. Total revenues were $1.28 billion, up 5.4% year over year. The metric missed the Zacks Consensus Estimate of $1.46 billion by 12.1%. Rithm Capital’s total operating expenses were $1.28 billion, up 34% year over year. Newrez posted pre-tax operating income of $307.6 million in the second quarter, excluding MSR mark-to-market loss, net of hedges, and other non-operating items of $194.5 million. This rose 11.8% from $275.1 million in the prior-year quarter. Newrez generated a 22% annualized operating return on equity on $5.7 billion of average ending segment equity. The total servicing unpaid principal balance reached $865.2 billion at the end of the quarter, including $268.4 billion in third-party servicing. Funded origination volume was $15.9 billion, down 2% year over year. Genesis Capital recorded second-quarter origination volume of $1.9 billion, up 52% year over year and marking its strongest origination quarter. Genesis expanded its sponsor base by funding 125 new sponsors during the quarter, marking an increase of 46% year over year. Rithm Asset Management had approximately $61 billion in assets under management as of June 30, 2026, up 69.4% from approximately $36 billion in the prior-year quarter. The increase was driven by $1.9 billion in gross inflows and new fund commitments. Asset management revenues were approximately $141 million, up 48.4% year over year, driven by higher incentive fee income. As of June 30, 2026, total assets were $54.11 billion, up 22.1% from $44.32 billion at June 30, 2025. Cash, cash equivalents and restricted cash increased 17.7% to $2.45 billion from $2.09 billion in the year-ago quarter. Rithm Capital’s second-quarter results reflected solid performance. The company continues to benefit from a diversified multi-engine platform spanning mortgage origination and servicing, asset management, residential lending and commercial real estate. Also, growth at Newrez, Genesis, Sculptor and Rithm Asset Management, along with the Crestline and Paramount acquisitions supports its long-term growth trajectory. However, higher compensation costs remain concerning. Rithm Capital Corp. price-consensus-eps-surprise-chart | Rithm Capital Corp. Quote RITM currently carries a Zacks Rank #4 (Sell). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Annaly Capital Management, Inc. NLY reported second-quarter 2026 earnings available for distribution (EAD) per average share of 79 cents, which beat the Zacks Consensus Estimate of 75 cents. The figure increased from 73 cents in the year-ago quarter. NLY’s net interest income and net interest margin improved year over year in the reported quarter. Notably, the year-over-year increase in book value per common share was also encouraging. However, higher economic funding costs were concerning. Ellington Financial LLC EFC is expected to post second-quarter 2026 results on Aug. 06. Over the past seven days, the Zacks Consensus Estimate for EFC quarterly earnings has been unchanged at 46 cents per share. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Rithm Capital Corp. (RITM) : Free Stock Analysis Report Ellington Financial Inc. (EFC) : Free Stock Analysis Report Annaly Capital Management Inc (NLY) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

NEW YORK, July 28, 2026--(BUSINESS WIRE)--Rithm Capital Corp. (NYSE: RITM; "Rithm Capital," "Rithm" or the "Company") today reported the following information for the second quarter ended June 30, 2026. "Rithm’s strong second quarter performance reflects the significant momentum of our owner-operator platform, which continues to prove its depth and durability," said Michael Nierenberg, CEO of Rithm Capital. "Despite an uncertain macro environment, our asset management business reached $61 billion in AUM on $1.9 billion of gross inflows, while Genesis delivered its strongest origination quarter ever and Newrez posted a 22% annualized operating return on equity(3). With Elecor building strong leasing momentum, every pillar of our platform is performing. As our clients deepen their engagement with Rithm, we are confident in our positioning and the compelling opportunities ahead to deliver for our clients and shareholders." Financial Highlights: GAAP net income of $20.2 million, or $0.04 per diluted common share(1) Earnings available for distribution of $338.9 million, or $0.60 per diluted common share(1)(2) Common dividend of $139.6 million, or $0.25 per common share Book value per common share of $12.33(1) Business Highlights: Asset Management: Commercial Real Estate: Investment Portfolio: Origination & Servicing: Residential Transitional Lending: ADDITIONAL INFORMATION For additional information that management believes to be useful for investors, please refer to the latest presentation posted on the Investors - Events & Presentations section of the Company’s website, www.rithmcap.com. Information on, or accessible through, our website is not a part of, and is not incorporated into, this press release. EARNINGS CONFERENCE CALL Rithm Capital’s management will host a conference call on Tuesday, July 28, 2026 at 8:00 A.M. Eastern Time. The conference call may be accessed by dialing 1-833-974-2382 (from within the U.S.) or 1-412-317-5787 (from outside of the U.S.) ten minutes prior to the scheduled start of the call; please reference "Rithm Capital Second Quarter 2026 Earnings Call." In addition, participants are encouraged to pre-register for the conference call at https://dpregister.com/sreg/10210777/10484ac0dde. A simultaneous webcast of the conference call will be available to the public on a listen-only basis at www.rithmcap.com. Please allow extra time prior to the call to visit the website and download any necessary software required to listen to the internet broadcast. A telephonic replay of the conference call will also be available two hours following the call’s completion through 11:59 P.M. Eastern Time on Tuesday, August 4, 2026, by dialing 1-855-669-9658 (from within the U.S.) or 1-412-317-0088 (from outside of the U.S.); please reference access code "6182214". NON-GAAP FINANCIAL MEASURES AND RECONCILIATION TO GAAP NET INCOME The Company has four primary variables that impact its performance: (i) net interest margin on assets held within the investment portfolio; (ii) realized and unrealized gains or losses on assets held within the investment portfolio and operating companies, including any impairment or reserve for expected credit losses; (iii) income from the Company’s operating company investments; and (iv) the Company’s operating expenses and taxes. "Earnings available for distribution" is a non-GAAP financial measure of the Company’s operating performance, which is used by management to evaluate the Company’s performance, excluding: Certain realized and unrealized gains and losses on (i) investments other than those that are acquired with the intent to sell or loans that are originated or acquired with the intent to sell, (ii) changes in valuation inputs and assumptions of MSRs, (iii) MSR economic hedges, other than any interest income associated with such instruments and (iv) extinguishment of debt; Certain other income and losses, primarily consisting of equity-based or non-recurring compensation expense, straight-line rental revenue, amortization of debt acquired below or above market prices, and certain net income or losses attributable to non-controlling and redeemable non-controlling interests; Depreciation and amortization on real estate investment properties and intangible assets; Non-capitalized transaction-related expenses, primarily consisting of legal, valuation and other professional service fees incurred in connection with certain investment acquisitions, as well as costs associated with the acquisition and integration of acquired businesses; and Deferred taxes. In computing earnings available for distribution, the Company excludes the items listed above because management does not consider them representative of the Company's core operating performance or of cash available for distribution to stockholders. These adjustments generally fall into three categories: items that are non-cash in nature; items that, while a part of the Company's recurring operations, are subject to significant variability and are therefore generally limited to a potential indicator of future economic performance; and items that relate to the acquisition or integration of investments and businesses rather than to ongoing operations. Management believes that the adjustments to compute "earnings available for distribution" specified above allow investors and analysts to readily identify and track the operating performance of the assets that form the core of the Company’s activity, assist in comparing the core operating results between periods and enable investors to evaluate the Company’s current core performance using the same financial measure that management uses to operate the business. Management also utilizes earnings available for distribution as a financial measure in its decision-making process relating to improvements to the underlying fundamental operations of the Company’s investments, as well as the allocation of resources between those investments, and management also relies on earnings available for distribution as an indicator of the results of such decisions. As such, earnings available for distribution is not intended to reflect all of the Company’s activity and should be considered as only one of the factors used by management in assessing the Company’s performance, along with GAAP net income which is inclusive of all of the Company’s activities. The Company views earnings available for distribution as a consistent financial measure of its portfolio’s ability to generate income for distribution to common stockholders. Earnings available for distribution does not represent and should not be considered as a substitute for, or superior to, net income or as a substitute for, or superior to, cash flows from operating activities, each as determined in accordance with GAAP, and the Company’s calculation of this financial measure may not be comparable to similarly entitled financial measures reported by other companies. Furthermore, to maintain qualification as a REIT, U.S. federal income tax law generally requires that the Company distribute at least 90% of its REIT taxable income annually, determined without regard to the deduction for dividends paid and excluding net capital gains. Because the Company views earnings available for distribution as a consistent financial measure of its ability to generate income for distribution to common stockholders, earnings available for distribution is one metric, but not the exclusive metric, that the Company’s board of directors uses to determine the amount, if any, and the payment date of dividends on common stock. However, earnings available for distribution should not be considered as an indication of the Company’s taxable income, a guaranty of its ability to pay dividends or as a proxy for the amount of dividends it may pay, as earnings available for distribution excludes certain items that impact its cash needs. Reconciliation of Non-GAAP Measure to the Respective GAAP Measure The table below provides a reconciliation of earnings available for distribution to the most directly comparable GAAP financial measure (dollars in thousands, except share and per share data): CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS Certain information in this press release constitutes "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are not historical facts. They represent management’s current expectations regarding future events and are subject to a number of trends and uncertainties, many of which are beyond our control, which could cause actual results to differ materially from those described in the forward-looking statements. Accordingly, you should not place undue reliance on any forward-looking statements contained herein. For a discussion of some of the risks and important factors that could affect such forward-looking statements, see the sections entitled "Cautionary Statement Regarding Forward Looking Statements," "Risk Factors" and "Management’s Discussion and Analysis of Financial Condition and Results of Operations" in the Company’s most recent annual and quarterly reports and other filings filed with the U.S. Securities and Exchange Commission, which are available on the Company’s website (www.rithmcap.com). New risks and uncertainties emerge from time to time, and it is not possible for Rithm Capital to predict or assess the impact of every factor that may cause its actual results to differ from those contained in any forward-looking statements. Forward-looking statements contained herein speak only as of the date of this press release, and Rithm Capital expressly disclaims any obligation to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in Rithm Capital's expectations with regard thereto or change in events, conditions or circumstances on which any statement is based. ABOUT RITHM CAPITAL Rithm Capital Corp. is a global alternative asset manager with significant experience managing credit and real estate assets. Rithm’s integrated platform spans asset-based finance, residential and commercial real estate lending, mortgage servicing rights, and structured credit. Through platforms including Elecor Properties, Newrez, Genesis Capital, Sculptor Capital Management, and Crestline Management, Rithm employs a unique owner-operator model to drive value for shareholders and investors. For more information, visit www.rithmcap.com. View source version on businesswire.com: https://www.businesswire.com/news/home/20260728452578/en/ Contacts Investor Relations [email protected]

Rithm (RITM) came out with quarterly earnings of $0.6 per share, beating the Zacks Consensus Estimate of $0.5 per share. This compares to earnings of $0.54 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +20.00%. A quarter ago, it was expected that this real estate investment trust would post earnings of $0.53 per share when it actually produced earnings of $0.51, delivering a surprise of -3.77%. Over the last four quarters, the company has surpassed consensus EPS estimates two times. Rithm, which belongs to the Zacks Financial - Miscellaneous Services industry, posted revenues of $1.28 billion for the quarter ended June 2026, missing the Zacks Consensus Estimate by 12.12%. This compares to year-ago revenues of $1.22 billion. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Rithm shares have lost about 15.3% since the beginning of the year versus the S&P 500's gain of 8.3%. While Rithm has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Rithm was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.55 on $1.47 billion in revenues for the coming quarter and $2.23 on $6.02 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Financial - Miscellaneous Services is currently in the bottom 31% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, Vinci Compass Investments (VINP), has yet to report results for the quarter ended June 2026. The results are expected to be released on August 11. This investments platform is expected to post quarterly earnings of $0.23 per share in its upcoming report, which represents a year-over-year change of +4.6%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Vinci Compass Investments' revenues are expected to be $56.05 million, up 31.7% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Rithm Capital Corp. (RITM) : Free Stock Analysis Report Vinci Compass Investments Ltd. (VINP) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Interested in Rithm Capital Corp.? Here are five stocks we like better. Rithm Capital reported strong second-quarter distributable earnings of $338.9 million, or $0.60 per diluted share, compared with GAAP net income of $20.2 million. Book value was $12.33 per share, liquidity totaled $2.1 billion, and the quarterly dividend remained $0.25 per share. Asset management is a major growth focus: Rithm oversees more than $100 billion in investable assets, including approximately $61 billion of third-party assets, and sees potential to double that figure within one to two years. Management is pursuing fundraising across private credit, real estate, infrastructure and insurance strategies. Operating businesses delivered broad-based gains. Newrez generated $308 million of pretax income, Genesis Capital’s pretax income rose 26% to about $42 million, and Newrez expects its planned Valon platform transition to generate more than $65 million in annual savings; however, Rithm does not currently plan to repurchase shares or increase its dividend. 3 Ultra-High Dividend Yield Stocks for the New Year Rithm Capital (NYSE:RITM) reported second-quarter earnings available for distribution of $338.9 million, or $0.60 per diluted share, while GAAP net income was $20.2 million, or $0.04 per diluted share. Chairman, Chief Executive Officer and President Michael Nierenberg said results reflected contributions from the company’s Newrez mortgage business, Genesis Capital lending platform, Sculptor and Crestline asset-management businesses, and Elecor Properties real estate portfolio. Book value was $6.9 billion, or $12.33 per share, at quarter-end, while the company reported $2.1 billion of cash and liquidity. Rithm paid a quarterly common dividend of $0.25 per share. Nierenberg said the difference between earnings available for distribution and GAAP income was partly related to hedges on the company’s mortgage servicing rights portfolio. → Volatility Is Back and These 3 Market Tollbooths Are Best Positioned to Profit Rithm said it manages more than $100 billion of investable assets between its balance sheet and third-party capital. Its third-party asset-management operations, including Sculptor, Crestline and Rithm-managed funds, oversee approximately $61 billion for more than 200 clients and limited partners. Nierenberg said 71% of the firm’s asset-management assets under management are longer-term capital. Sculptor’s multi-strategy fund generated an approximately 8% net return in the first half of 2026, according to the company. Nierenberg said the fund’s three-year net return was 12.3%, with volatility of 4.7%. He said the investment teams had reduced risk in response to market volatility. → This Tiny AI Supplier Could Be More Important Than the Chipmakers During the question-and-answer session, Nierenberg said Rithm sees the potential to double asset-management assets under management over the next one to two years, though he emphasized that the company is focused on investment performance rather than pursuing asset growth for its own sake. Current fundraising efforts are centered on asset-based finance, direct lending, capital solutions, multi-strategy investing, stabilized core real estate and real estate credit. The company is also developing insurance and infrastructure offerings and working with bank partners on private-wealth distribution, management said. → 2 Stocks Built to Thrive If Inflation Refuses to Fade Chief Financial Officer Nick Santoro said incentive fees at Sculptor during the quarter were driven by an off-cycle crystallization of incentive revenue. He said roughly 70% of Sculptor’s incentive revenue is typically recognized in the fourth quarter. Excluding the quarter’s Sculptor incentive income, Santoro said Rithm’s core earnings available for distribution run rate should be about $0.50 per share. Newrez, Rithm’s mortgage origination and servicing business, reported approximately $308 million in second-quarter pretax income excluding mark-to-market effects, up 12% from the prior quarter. The segment generated a 22% return on equity, according to President Baron Silverstein. Silverstein attributed the result to disciplined origination activity, higher servicing fees, increased recapture and lower amortization despite interest-rate volatility. Funded mortgage volume was $15.9 billion, up 1% quarter over quarter. Newrez also acquired $5 billion of mortgage servicing rights through co-issue transactions, up 45% from the prior quarter. Newrez said wholesale and consumer-direct channels represented 40% of total originations, up 11% from the previous quarter. Silverstein said the company maintained pricing discipline and did not pursue market share at the expense of returns. The company is investing in proprietary artificial-intelligence tools as well as technology partnerships with Valon and HomeVision. Newrez said its cost per loan is currently about one-third below the industry average and is projected to be 50% below the industry average after the Valon and HomeVision integrations. Management expects the transition to the Valon servicing platform in early 2027 to produce more than $65 million in annual expense savings, reducing direct cost per loan by 21% to $93. Newrez added eight third-party servicing clients during the quarter and boarded $27 billion of new loans. Silverstein said Ginnie Mae delinquencies were stable from the previous quarter and that overall delinquencies remained low by historical standards. Nierenberg said lower prepayments have supported MSR cash flows, though the company has been selective in deploying capital as MSR valuations remain relatively full. Rithm manages approximately $865 billion of owned and third-party MSRs, he said. Genesis Capital originated $1.9 billion during the quarter and produced approximately $42 million of pretax income, up about 26% from the prior quarter. Nierenberg said the residential transitional lending platform generated a 17% annualized operating return on equity. The Genesis portfolio had a loan-to-after-repaired-value ratio of approximately 63%, a loan-to-value ratio of 68%, and a loan-to-cost ratio of 76%. Construction loans represented about 50% of the portfolio, bridge loans accounted for about 34%, and renovation loans represented approximately 12%. Management said demand for Genesis’ short-duration, high-coupon lending products remains strong from insurance companies, funds and separately managed accounts. Nierenberg said the company expects additional growth in multifamily lending, where loan sizes average roughly $10 million to $11 million, while continuing to focus on sponsor quality and underwriting discipline. Elecor Properties, Rithm’s office real estate operation, owns 10 core assets totaling 9.9 million square feet in New York and San Francisco. The portfolio was 86.5% leased at quarter-end, with average in-place rent of $90 per square foot and a weighted average lease term of 8.3 years. Head of Real Estate Peter Brindley said Elecor executed or had pending leases for more than 681,000 square feet year to date, at weighted average initial rents of approximately $100 per square foot. The company also identified about $44 million of operating efficiencies since the acquisition. Elecor closed a $283 million commercial mortgage-backed securities financing for 1325 Avenue of the Americas during the quarter and refinanced 31 West 52nd Street after quarter-end. Management is evaluating potential joint ventures for select assets and financing options for unencumbered properties. Nierenberg said Rithm does not currently expect to repurchase shares or raise its dividend, preferring to retain and redeploy capital to expand the business. He said any repurchase decision would ultimately be made by the board. 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. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Rithm Capital Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

This article first appeared on GuruFocus. Investable Assets: Over $100 billion in investable assets managed. Permanent Capital: $9 billion in permanent capital. Mortgage Loans Originated: Approximately $65 billion in mortgage loans originated this year. Earnings Available for Distribution (EAD): $338.9 million or $0.60 per diluted share. GAAP Net Income: $20.2 million or $0.04 per diluted share. Book Value: $6.9 billion, approximately $12.33 per share. Common Stock Dividend: $0.25 per common share, yielding 10.6%. Cash and Liquidity: $2.1 billion at the end of Q2. Multi-Strat Fund Performance: Year-to-date performance up approximately 8%. Third-Party Assets Under Management (AUM): $61 billion. Genesis Capital Origination: $1.9 billion this quarter. Genesis Capital Pre-Tax Income: Approximately $42 million. Newrez Pre-Tax Income: Approximately $308 million, up 12% quarter over quarter. Newrez Funded Volume: $15.9 billion, up 1% quarter over quarter. Co-Issue MSR Acquisitions: $5 billion, up 45% quarter over quarter. Residential Investments: $6.6 billion in residential investments for the first half of 2026. Securitizations: $3.7 billion in securitizations, achieving an annual ROE of about 15%. Warning! GuruFocus has detected 6 Warning Signs with RITM. Is RITM fairly valued? Test your thesis with our free DCF calculator. Release Date: July 28, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Rithm Capital Corp (NYSE:RITM) reported a strong quarter with $338.9 million in EAD or $0.60 per diluted share. The company manages over $100 billion in investable assets, showcasing significant growth in its asset management business. Newrez, a leading mortgage company, reported a 22% ROE for the quarter, driven by disciplined origination strategies and higher servicing fees. Genesis Capital, a non-bank construction lender, showed significant growth with $1.9 billion in quarterly origination, up from $1.7 billion annually in 2022. The asset management business is expanding, with a focus on performance leading to more AUM and a diverse suite of product offerings for clients. GAAP net income was relatively low at $20.2 million or $0.04 per diluted share, impacted by hedges around the MSR portfolio. The common stock dividend yield of 10.6% is considered too high from the company's perspective. The real estate portfolio's San Francisco core portfolio's lease occupancy was only 60.9%, indicating challenges in that market. The company faces market volatility and higher interest rates, which could impact future performance. Despite strong performance, the stock is trading at a low valuation, and there are no immediate plans for stock buybacks or dividend increases. Q: Could you talk about the outlook for continuing to grow asset management? And as we look forward 12 months or 24 months, how much of that gets funded on Rithm's balance sheet versus with third-party capital? A: Michael Nierenberg, Chairman, CEO, and President: We see significant growth in our asset management business, potentially doubling AUM over the next couple of years. We're not in an AUM race; performance will lead to more AUM. As we grow our funds business, more will be funded by third-party capital, benefiting our equity holders. Q: Can you talk about any progress on raising third-party funds for Elecor or JVs? A: Michael Nierenberg: We are in discussions with third-party LPs and partners. We have an LOI for a partner on 1301 Sixth Avenue, likely closing by the end of Q3. We're investing in buildings to grow NOI and improve asset value, and we expect this business to grow. Q: Where are you seeing the most traction in terms of fundraising in the alts business? A: Michael Nierenberg: We're seeing inflows across the board, including direct lending, credit, and real estate. We're adding personnel to our capital formation groups and are optimistic about the asset management business's prospects. Q: Can you give more color on how realized cash flows trended in the MSR portfolio given the moving rates? A: Michael Nierenberg: Cash flows are trending higher due to fewer prepayments and less housing velocity. We're cautious about competition and gain on sale, focusing on higher-yielding portfolios. Q: What drove the incentive fees in Sculptor, and any outlook on where incentive fees could trend this year? A: Nicola Santoro, CFO: The incentive fee at Sculptor was due to an off-cycle crystallization of incentive revenue. Most incentive revenue comes in Q4, but off-cycle fees were recognized in Q2. Q: What is driving the origination strength in Genesis Capital, and how has it grown faster than the market? A: Michael Nierenberg: Demand for the product is high, driven by insurance company demand and fund demand. We've made investments in people and technology, and we expect significant growth in this business. Q: Can you share your outlook for the Newrez business in the current environment? A: Baron Silverstein, President of Newrez: Despite rate pressures, there's significant demand for housing and home equity products. We're focusing on product innovation and leveraging our origination business to drive earnings. Q: Is there any thought of a potential dividend increase given earnings exceeding the dividend? A: Michael Nierenberg: We prefer to redeploy capital for higher returns and business growth rather than increasing dividends. We're focused on long-term growth and shareholder value. For the complete transcript of the earnings call, please refer to the full earnings call transcript.