Rithm Capital Corp. · NYSE:RITM
Rithm Capital — Q2 2025 Earnings Presentation
45 slides from Rithm Capital's earnings presentation, Jul 28, 2025
Slide 1: Rithm Capital Quarterly Supplement Q2 2025
Rithm Capital Quarterly Supplement Q2 2025 Q2 2025 Quarterly Supplement
Slide 2: Disclaimers
Disclaimers IN GENERAL. This disclaimer applies to this document and the verbal or written comments of any person presenting it. This document, taken together with any such verbal or written comments, is referred to herein as the “Presentation.” FORWARD-LOOKING STATEMENTS. Certain statements regardi
Slide 3: Executive Summary
Executive Summary Diversified Alternative Asset Management Platform With approximately $80 billion in investable assets(1), Rithm Capital is a global asset manager with an integrated credit and real estate investment platform THE RITHM EDGE RITHM BY THE NUMBERS High-performing diversified asset mana
Slide 4: Financial Highlights
Executive Summary Financial Highlights • Strong quarterly results: Q2’25 EAD of $0.54 per share represents 15% year-over-year growth(1) • Stable earnings performance: 23 consecutive quarters for which EAD was greater than common dividends paid GAAP Net Income $283.9 $0.53 17% Million per Diluted Sha
Slide 5: Compelling Value Proposition
Executive Summary Compelling Value Proposition We believe a strategy centered on earnings growth and an increased focus on fee-related earnings (“FRE”) will lay a foundation for significant upside Potential to unlock value Grow Rithm Asset Market values Rithm by optimizing corporate Management to in
Slide 6: Rithm Trades Well Below the Intrinsic Value of Its Parts
Executive Summary Rithm Trades Well Below the Intrinsic Value of Its Parts*(1) Current valuation of 96% of book value understates the intrinsic value of Rithm’s core segments Current Valuation Illustrative SOTP Valuation(1) ($M, except per share data) $6.5 Billion CURRENT MARKET CAP(2) 0.96x Newrez
Slide 7: Rithm Asset Management’s Investment Strategies
Executive Summary Rithm Asset Management’s Investment Strategies Rithm Asset Management and its subsidiaries manage a wide range of alternative investment strategies that benefit from its core competencies and operating companies Themes Investment Strategies & Vehicles ✓ Broad ABF ✓ Opportunistic Cr
Slide 8: Quarter in Review
Executive Summary Quarter in Review Rithm demonstrated steady year-over-year growth in each of its segments in Q2’25 Rithm Asset Investment Management Portfolio ✓ Q2’25 originations of ✓ $36 billion of AUM at ✓ #3 US mortgage ✓ Executed Non-QM $1.2 billion, Sculptor, up $3.5 servicer and #4 US secur
Slide 9: Rithm is Well-Positioned to Execute Amid Market Conditions
Executive Summary Rithm is Well-Positioned to Execute Amid Market Conditions 1 Ongoing Resilience in Economy 3 Risk Appetite Remains High The US economic surprise index has inflected higher, US equities hover near all-time highs, and credit indicating economic data beating market spreads remain near
Slide 10: Executive Summary
Executive Summary Genesis (Residential Transitional Lending) Rithm Asset Management Newrez (Origination & Servicing) Investment Portfolio Q2 2025 Quarterly Supplement
Slide 11: Genesis Capital Business Highlights
Genesis Genesis Capital Business Highlights Record origination volumes driven by high-performing client franchise and expanding product suite Business Highlights Key Metrics • Q2’25 origination volume of $1.2 billion, a record quarter for the business +47% +49% ‒ New originations yielding 10.3% at f
Slide 12: Differentiated Model in Residential Transitional Lending
Genesis Differentiated Model in Residential Transitional Lending Bank retrenchment opens the door to further growth in premier RTL franchise Genesis’s Core Capabilities Portfolio Detail(1) Differentiated Business Model Construction Bridge Renovation ✓ Focused on long-term relationships with high-qua
Slide 13: Executive Summary
Executive Summary Genesis (Residential Transitional Lending) Rithm Asset Management Newrez (Origination & Servicing) Investment Portfolio Q2 2025 Quarterly Supplement
Slide 14: Sculptor Business Highlights
Asset Management Sculptor Business Highlights Strong investment performance and fundraising drove continued momentum in Q2’25 Business Highlights Key Metrics Robust fundraising with $1.7 billion of gross inflows in Q2’25, bringing gross inflows to $3.1 billion in H1’25 $36B 31-year • Closed on an ad
Slide 15: Rithm Property Trust Business Highlights
Asset Management Rithm Property Trust Business Highlights Rithm Property Trust (NYSE: RPT) is a real estate investment platform focused on commercial real estate (“CRE”) lending and opportunistic investing • Rithm transformed RPT into a CRE investment vehicle as part of a transaction in June 2024 –
Slide 16: Rithm Acquisition Corp. (NYSE: RAC)
Asset Management Rithm Acquisition Corp. (NYSE: RAC) Rithm Acquisition Corp., a special purpose acquisition company (“SPAC”), recently closed its initial public offering (“IPO”) of 23 million units at $10.00 per unit RAC, with Rithm’s Sponsorship, Is Well-Positioned to Identify a Target and Execute
Slide 17: Executive Summary
Executive Summary Genesis (Residential Transitional Lending) Rithm Asset Management Newrez (Origination & Servicing) Investment Portfolio Q2 2025 Quarterly Supplement
Slide 18: Newrez’s Diversified Business Model Delivered 19% ROE in Q2’25
Newrez Newrez’s Diversified Business Model Delivered 19% ROE in Q2’25(1)(2) Strong performance in both servicing and originations businesses Newrez Financial Results*(3) Key Metrics ($M) Q1’25 Q2’25 Servicing income excluding MTM $242.4 $233.6 $275M Q2’25 Pre-Tax Income Originations $65.1 $86.6 ex-M
Slide 19: Momentum Across Direct and Third-Party Originations
Newrez Momentum Across Direct and Third-Party Originations Continued growth in recapture and non-agency production Originations Business Highlights Originations Heavyweight • Q2’25 Pre-Tax Income of $87 million, up 33% QoQ • Production volume up 38% QoQ $16.3B • Maximizing gain on sale margins despi
Slide 20: Platform Investments Power Portfolio Recapture
Newrez Platform Investments Power Portfolio Recapture Digital, brand, and partnership investments drive growth New Initiatives Fuel Cross-Product Recapture Gains Refi Recapture Opportunity $177 ($B UPB) Platform Investment Recapture Impact 7%+ $40 Note Rate Brand positioning and marketing All Produc
Slide 21: Vertically Integrated Platform Supports Non-Agency Growth
Newrez Vertically Integrated Platform Supports Non-Agency Growth Delivering product and servicing excellence for third-party clients Non-Agency Production Special Servicing Excellence ($M) Current % of Completed Loan Workouts (Since 2020) 124% CAGR(1) $4,300 82% 82% 79% 74% H2’25 Forecast(1) 65% 67%
Slide 22: Operational Excellence Drives Client Growth & Portfolio Performance
Newrez Operational Excellence Drives Client Growth & Portfolio Performance Rezi AI, technology platform, and portfolio scale amplify servicing business efficiencies Servicing Business Highlights Total Servicing Portfolio*(3) • Q2’25 Pre-Tax Income of $234 million • Third-party servicing up 6.7% QoQ,
Slide 23: Rezi AI Investments Supercharge Technology Platform
Newrez Rezi AI Investments Supercharge Technology Platform Rezi AI is the engine transforming how Newrez serves homeowners by embedding intelligence and accelerating efficiency across every layer of the platform Self-Service Customer Service Customer Correspondence Comprehensive chatbot for Enhanced
Slide 24: Executive Summary
Executive Summary Genesis (Residential Transitional Lending) Rithm Asset Management Newrez (Origination & Servicing) Investment Portfolio Q2 2025 Quarterly Supplement
Slide 25: Investment Portfolio Business Highlights
Investment Portfolio Investment Portfolio Business Highlights Our investment and capital markets teams continue to execute on accretive asset acquisitions and innovative capital solutions Business Highlights Key Metrics • Executed Non-QM securitization in Q2’25, totaling $504 million UPB • Invested
Slide 26: Appendix
Appendix Q2 2025 Quarterly Supplement
Slide 27: Condensed Consolidated Balance Sheets
Appendix Condensed Consolidated Balance Sheets (dollars in thousands, except per share data) As of 6/30/2025 As of 3/31/2025 (Unaudited) (Unaudited) ASSETS Mortgage servicing rights and mortgage servicing rights financing receivables, at fair value $ 10,360,063 $ 10,133,041 Government and government
Slide 28: Book Value per Share Summary
Appendix Book Value per Share Summary Per Share Ending Q1’25 Book Value Per Share $12.39 Net Income (Net of Tax and Change in Fair Value) 0.89 MSR Realization of Cash Flows (0.33) Change in Valuation Inputs and Assumptions (0.02) GAAP Net Income 0.53 Common Dividend (0.25) Other Comprehensive Income
Slide 29: Consolidated Statements of Operations
Appendix Consolidated Statements of Operations Three Months Ended June 30, March 31, Unaudited (dollars in thousands) 2025 2025 Revenues Servicing fee revenue, net and interest income from MSRs and MSR financing receivables $ 574,817 $ 570,801 Change in fair value of MSRs and MSR financing receivabl
Slide 30: Segment Information (Q2’25)
Appendix Segment Information (Q2’25) ($ in thousands) Residential Origination Investment Transitional Asset Corporate Quarter Ended June 30, 2025 and Servicing Portfolio Lending Management Category Total Servicing fee revenue, net and interest income from MSRs and MSR financing receivables $ 574,817
Slide 31: Segment Information (Q1’25)
Appendix Segment Information (Q1’25) ($ in thousands) Residential Origination Investment Transitional Asset Corporate Quarter Ended March 31, 2025 and Servicing Portfolio Lending Management Category Total Servicing fee revenue, net and interest income from MSRs and MSR financing receivables $ 570,80
Slide 32: Mortgage Servicing Rights
Appendix Mortgage Servicing Rights (in thousands) Q1’25 Ending MSR Balance $ 10,133,041 Originations & other 419,981 Sales 1,860 Change in fair value due to: Realization of cash flows (178,001) Change in valuation inputs and assumptions (16,818) Q2’25 Ending MSR Balance $ 10,360,063 Q2 2025 - Servic
Slide 33: Origination and Servicing
Appendix Origination and Servicing Q2’24 Q3’24 Q4’24 Q1’25 Q2’25 Servicing Servicing Portfolio (UPB $B) In-House Servicing $518.5 $521.9 $524.8 $532.8 $536.3 On Behalf of Third-Parties $213.7 $223.4 $242.9 $244.2 $260.7 Serviced by Others 68.5 67.0 65.4 $58.3 $56.5 Whole Loan & Other $9.4 $9.4 $10.7
Slide 34: Owned MSR Portfolio
Appendix Owned MSR Portfolio* Full MSR Price & Multiples Full MSR Portfolio Speeds & Amortization ($M) 5.0x 5.0x 5.2x 5.0x 5.1x 4.8x 7.2% 7.6% 7.7% 6.2% 6.0% 5.1% 165 167 177 173 176 160 $182 $178 $146 $163 $148 $117 (1) (1) Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 Q2'25 Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 Q2'25 Ful
Slide 35: Unaudited GAAP Reconciliation of Earnings Available for Distribution
Appendix Unaudited GAAP Reconciliation of Earnings Available for Distribution Management uses Earnings Available for Distribution, which is a non-GAAP measure, as one measure of operating performance. Please see next slide for the definition of Earnings Available for Distribution and explanation of
Slide 36: Reconciliation of Non-GAAP Financial Measures
Appendix Reconciliation of Non-GAAP Financial Measures • 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 operati
Slide 37: Illustrative Sum of the Parts Valuation Detail
Appendix Illustrative Sum of the Parts Valuation Detail*(1) Residential Origination & Investment Asset Preferred Total Rithm $M, except per share data Transitional Corporate Servicing Portfolio Management Stock Book Value Lending GAAP Segment Equity $5,823 $1,552 $821 $895 ($1,142) ($1,207) $6,741 %
Slide 38: Illustrative Sum of the Parts Valuation Detail: Peer Analysis
Appendix Illustrative Sum of the Parts Valuation Detail: Peer Analysis*(1)(2) Mortgage Companies: Newrez Residential Transitional Lending: Genesis Market Cap Market Cap Company Ticker ROE P/BV ’25E P/E Company Ticker ROE P/BV ’25E P/E ($M) ($M) Mr. Cooper COOP $10,833 12% 2.1x 13.4x Velocity Financi
Slide 39: Endnotes
Endnotes Q2 2025 Quarterly Supplement
Slide 40: Endnotes
Endnotes Endnotes to Slide 3: Source: Company SEC filings and current financial information. Financial and market data as of June 30, 2025 unless otherwise noted. 1) Represents the sum of the investable assets, including investments in operating companies, across the Rithm platform, including (i) $4
Slide 41: Endnotes (Cont.)
Endnotes (Cont.) Endnotes to Slide 6: Source: Bloomberg, Company SEC filings and current financial information. Financial and market data as of June 30, 2025 unless otherwise noted. 1) Illustrative SOTP Valuation is based on management's current views, estimates, and valuation assumptions. Actual re
Slide 42: Endnotes (Cont.)
Endnotes (Cont.) Endnotes to Slide 15: Source: Company current financial information. Financial and market data as of June 30, 2025 unless otherwise noted. 1) Bloomberg data as of June 30, 2025 and publicly available SEC filings. 2) Rithm Capital Corp. had $7.9B of Stockholders’ Equity in Rithm Capi
Slide 43: Endnotes (Cont.)
Endnotes (Cont.) Endnotes to Slide 25: Source: Company financial information. Financial and market data as of June 30, 2025 unless otherwise noted. Endnotes to Slide 34: Source: Company SEC filings and current financial information. Financial and market data as of June 30, 2025 unless otherwise note
Slide 44: Abbreviations
Abbreviations This Presentation may include abbreviations, which have the following meanings: • 60+ DQ – Percentage of loans that are delinquent by 60 days or more • ABS – Asset-Backed Securities • AUM – Assets Under Management • BV – Book Value • BVPS – Book Value Per Share • CAGR – Compound Annual
Slide 45: Q2 2025 Quarterly Supplement
Q2 2025 Quarterly Supplement