Rithm Capital Q2 Profit Falls to $20M, EPS $0.04; Asset Management Revenue Jumps 34%
RITM is trading near its 52-week low of $8.43 (11% above the low).
Summary
Rithm Capital's Q2 net income dropped to $20.2M, or $0.04 per share, a sharp decline from the prior quarter's substantial profit. The drop comes despite distributable earnings of $0.60 per share comfortably covering the $0.25 dividend. Asset management revenue surged 34% quarter-over-quarter to $141M on higher incentive fees and $1.9B in gross inflows, while Genesis Capital posted record origination volume of $1.9B, up 52% year-over-year. The mixed results—strong operating metrics but weak bottom line—follow a Q1 that benefited from acquisitions and a preferred stock offering. The stock closed at $9.23 on July 27, well below the $13 median analyst target.
At the time of this announcement, RITM was trading at $9.35 on NYSE in the Finance sector, with a market capitalization of approximately $5.2B. The 52-week trading range was $8.43 to $12.74. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Reuters.