Rithm Capital Corp. Announces Third Quarter 2025 Results

Rithm Capital Corp. (NYSE:RITM, "Rithm Capital, " "Rithm" or the "Company")) today reported the following information for the third quarter ended September 30, 2025.

"This quarter marks a pivotal step forward in Rithm Capital's journey, driven by strategic acquisitions, platform expansion, and a disciplined investment approach, as we continue building a diversified, asset management platform," said Michael Nierenberg, Chief Executive Officer of Rithm Capital. "The pending acquisition of Crestline meaningfully expands our offering into direct lending and insurance and together with Sculptor, delivers comprehensive product solutions for investors. Further, the pending acquisition of Paramount significantly enhances our commercial real estate expertise and expands our owner-operator model. These milestones deepen our capabilities across key investment verticals and unlock differentiated value for our investors and shareholders."

Financial Highlights:

• GAAP net income of $193.7 million, or $0.35 per diluted common share⁽¹⁾
• Earnings available for distribution of $296.9 million, or $0.54 per diluted common share⁽¹⁾⁽²⁾
• Common dividend of $138.5 million, or $0.25 per common share
• Book value per common share of $12.83⁽¹⁾

Business Highlights:

• Origination & Servicing:
  • Newrez LLC ("Newrez"), Rithm Capital's multichannel mortgage origination and servicing platform, posted pre-tax income of $295.1 million in Q3'25, excluding the net of hedge mortgage servicing rights ("MSRs") mark-to-market loss of $(61.0) million, up from $275.1 million in Q2'25, excluding the net of hedge MSRs mark-to-market gain of $29.9 million.
  • Newrez generated a 20% pre-tax return on equity ("ROE") on $6.2 billion of equity⁽³⁾⁽⁴⁾. Total servicing unpaid principal balance ("UPB") reached $878 billion, an increase of 7% YoY, which includes $282 billion UPB of third-party servicing, an increase of 21% YoY.
  • Origination funded production volume was $16.4 billion in Q3'25, an increase of 3% YoY.

• Investment Portfolio:
  • Rithm Capital completed a non-qualified mortgage securitization in the quarter totaling $483 million in UPB.
  • Rithm Capital entered into a forward flow agreement with Upgrade, Inc. to acquire $1 billion in home improvement loans ("HIL").
    • Acquired $234 million in HIL under the forward flow agreement in Q3'25 and, subsequent to quarter-end, acquired another $150 million in HIL.

• Residential Transitional Lending:
  • Rithm Capital's residential transitional lending platform, Genesis Capital LLC ("Genesis Capital"), recorded Q3'25 origination volume of $1.2 billion, an increase of 60% YoY, consistent with the record volume achieved in Q2'25.
  • Genesis Capital continued to expand its sponsor base, growing new sponsors by 71 in Q3'25, an 82% increase YoY.

• Asset Management:
  • Rithm Capital's alternative asset manager, Sculptor Capital Management Inc. ("Sculptor Capital"), grew to approximately $37 billion of assets under management ("AUM")⁽⁵⁾ as of September 30, 2025, including gross fundraising inflows of $1.4 billion across the Sculptor platform during the quarter.
  • Sculptor Capital also continued its active presence in the collateralized loan obligation markets with a successful issuance and reset in the European market contributing approximately $585 million of AUM in Q3'25.
  • Rithm Capital entered into a definitive agreement to acquire Crestline Management, L.P., a Fort Worth, TX based alternative asset manager with $18 billion in AUM as of June 30, 2025.
    • Investment strategies include direct lending, opportunistic credit, net asset value lending and insurance.
    • Closing is targeted for Q4'25, subject to customary closing conditions and approvals.
  • Rithm Capital entered into a definitive agreement to acquire Paramount Group, Inc. ("Paramount") (NYSE:PGRE), an owner and operator of Class A office properties in New York and San Francisco, for approximately $1.6 billion in cash consideration.
    • Closing is targeted for Q4'25, subject to customary closing conditions, including the approval of Paramount's common stockholders.

ADDITIONAL INFORMATION

For additional information that management believes to be useful for investors, please refer to the latest presentation posted on the Investors - News 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 Thursday, October 30, 2025 at 8:00 A.M. Eastern Time. A copy of the earnings release will be posted to the Investors - News section of Rithm Capital's website, www.rithmcap.com.

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 Third Quarter 2025 Earnings Call." In addition, participants are encouraged to pre-register for the conference call at https://dpregister.com/sreg/10203970/1002e07a6aa.

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 Thursday, November 6, 2025, by dialing 1-877-344-7529 (from within the U.S.) or 1-412-317-0088 (from outside of the U.S.); please reference access code "3226103".

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: (i) net realized and unrealized gains and losses on certain assets and liabilities; (ii) net other income and losses; (iii) non-capitalized transaction-related expenses; and (iv) deferred taxes.

The Company's definition of earnings available for distribution excludes certain realized and unrealized losses, which although they represent a part of the Company's recurring operations, are subject to significant variability and are generally limited to a potential indicator of future economic performance. Within net other income and losses, management primarily excludes (i) equity-based compensation expenses, (ii) non-cash deferred interest expense and (iii) amortization expense related to intangible assets, as management does not consider this non-cash activity to be a component of earnings available for distribution. With regard to non-capitalized transaction-related expenses, management does not view these costs as part of the Company's core operations, as they are considered by management to be similar to realized losses incurred at acquisition. Non-capitalized transaction related expenses generally relate to legal and valuation service costs, as well as other professional service fees, incurred when the Company acquires certain investments, as well as costs associated with the acquisition and integration of acquired businesses. Management also excludes deferred taxes because the Company believes deferred taxes are not representative of current 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. Earnings available for distribution excludes certain recurring items, such as gains and losses (including impairment and reserves as well as derivative activities) and non-capitalized transaction-related expenses, because they are not considered by management to be part of the Company's core operations for the reasons described herein. 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, multi-dimensional asset manager with significant experience managing credit and real estate assets. The firm combines deep institutional expertise with an entrepreneurial culture that drives innovation and disciplined growth across multiple market segments. Rithm's integrated investment platform spans residential and commercial lending, MSRs and structured credit. Through subsidiaries such as Newrez, Genesis Capital and Sculptor Capital Management, Rithm has established a unique owner-operator model, capable of sourcing, financing and actively managing debt and equity investments, to drive value for shareholders and fund investors.

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