Asset manager Rithm Capital's Q2 adjusted EPS edges past estimates

Rithm Capital

28/07/2025 11:56

Overview

Rithm Capital Q2 adjusted EPS of $0.54 beats analyst expectations, per LSEG data

Company announces strategic partnership for $500 mln residential transition loans

Rithm Capital sees steady growth in asset management and mortgage origination

Outlook

Company plans to expand asset management capabilities

Result Drivers

MORTGAGE ORIGINATION - Newrez LLC posted pre-tax income of $275.1 mln, with origination funded production volume increasing 12% YoY

ASSET MANAGEMENT GROWTH - Sculptor Capital's AUM grew to $36 bln, with $1.7 bln in gross fundraising inflows

INVESTMENT ACTIVITY - Completed $504 mln non-qualified mortgage securitization and invested $2.2 bln in residential mortgage assets

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Net Servicing Revenue
$419.81 mln
Q2 Adjusted EPS
Beat
$0.54
$0.52 (8 Analysts)
Q2 EPS
$0.53
Q2 Net Income
$283.90 mln
Q2 Dividend
$0.25


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 11 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

The average consensus recommendation for the specialized reits peer group is "buy"

Wall Street's median 12-month price target for Rithm Capital Corp is $14.00, about 12.9% above its July 25 closing price of $12.19

The stock recently traded at 6 times the next 12-month earnings vs. a P/E of 6 three months ago

Press Release: ID:nBw3RvShQa

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)