Rithm Capital Corp. (NYSE:RITM) reported fourth-quarter results on Tuesday that came in well ahead of earnings expectations, helping lift its shares despite a shortfall on revenue.
The alternative asset manager’s stock rose about 3% in pre-market trading following the announcement.
The company delivered adjusted earnings of $0.74 per share for the quarter, comfortably above the analyst consensus of $0.58. Revenue totaled $1.29 billion, however, missing expectations of $1.37 billion.
For the full year 2025, Rithm Capital Corp. posted adjusted earnings of $2.35 per share, up from $2.10 in 2024, translating into a 19% return on equity based on earnings available for distribution.
“2025 was a year of strategic progress for Rithm, marked by disciplined execution and consistent performance across every segment of our business,” said Michael Nierenberg, Chief Executive Officer of Rithm Capital. “Our Q4 results underscore the durable momentum we have built.”
Operationally, the Origination & Servicing division generated pre-tax operating income of $249.1 million in the fourth quarter, excluding mark-to-market losses on mortgage servicing rights. Total servicing unpaid principal balance stood at $852 billion at year-end, up 1% year on year. Origination funded production volume reached $18.8 billion in Q4, representing a 15% increase quarter on quarter and a 9% rise from a year earlier.
During the quarter, Rithm completed several strategic acquisitions, including Crestline Management and Paramount Group, expanding its alternative asset management platform to more than $100 billion in investable assets. The company also completed three non-qualified mortgage securitizations totaling $1.5 billion in the fourth quarter.
Rithm maintained its quarterly dividend at $0.25 per share, equivalent to an annual payout of $1.00 per share.