Rithm Capital Q4 adjusted EPS beats expectations

Overview

• Alternative asset manager's Q4 adjusted EPS beat analyst expectations

• Company completed acquisitions of Crestline Management and Paramount Group

• Q4 GAAP net income decreased compared to Q3

Result Drivers

• ACQUISITIONS - Completion of Crestline Management and Paramount Group acquisitions expanded alternative asset management platform

• ORIGINATION GROWTH - Newrez increased Q4 origination funded production volume by 15% QoQ and 9% YoY

• NQM SECURITIZATIONS - Record non-qualified mortgage securitizations in Q4 and full year 2025 contributed to investment portfolio growth

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 10 "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 29.6% above its February 2 closing price of $10.80

• The stock recently traded at 5 times the next 12-month earnings vs. a P/E of 5 three months ago

Press Release: ID:nBw6T5PmSa

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.