Rithm Capital GAAP Profit Rebounds on MSR Fair-Value Swing

The Tip Desk · October 24, 2026 · 3 min read

GAAP net income attributable to common stockholders was $217.1 million, or $0.38 a share, as servicing revenue, net, reached $716.6 million.

Rithm Capital Corp. (RITM) reported GAAP net income attributable to common stockholders of $217.1 million, or $0.38 a share, for the third quarter ended September 30, 2026, versus $20.2 million, or $0.04 a share, in the second quarter.

The swing in GAAP profit tracked mortgage servicing rights. Servicing revenue, net, rose to $716.6 million from $221.8 million after a $121.3 million change in fair value of MSRs and MSR financing receivables, net of economic hedges, compared with a $392.9 million loss in the prior quarter. Total revenue increased to $1.76 billion from $1.28 billion, and income before income taxes rose to $519.1 million from $86.9 million.

Earnings available for distribution, the non-GAAP measure the company uses to evaluate core operating performance, fell to $315.3 million, or $0.55 a share, from $338.9 million, or $0.60 a share. The common dividend remained $0.25 a share, or $139.6 million. Book value per common share was $12.51, up from $12.33 at June 30.

Origination and Servicing revenue rose to $1.21 billion from $704.2 million, and the segment’s pre-tax income rose to $604.8 million from $113.1 million. Newrez posted pre-tax operating income of $329.7 million excluding MSR mark-to-market and other non-operating items, up from $307.6 million, and generated a 24% annualized operating return on equity on $5.5 billion of average ending segment equity, versus 22% on $5.7 billion in the second quarter.

Origination funded production volume was $12.9 billion, a 19% sequential decline and a 21% year-over-year decline. Total servicing unpaid principal balance reached $878.9 billion, including $282.8 billion of third-party servicing.

Asset management revenue fell to $107.3 million from $142.2 million as incentive fees dropped to $14.4 million from $51.7 million; management fees rose to $91.6 million from $88.8 million. Rithm Asset Management had approximately $61 billion of assets under management as of September 30, consistent with quarter-end Q2, after $569 million of gross new capital and fund commitment inflows in the third quarter, bringing year-to-date gross inflows to $2.9 billion.

Genesis Capital recorded $1.5 billion of residential transition loan originations, a 25% year-over-year increase, after $1.6 billion in the prior quarter. New sponsors funded rose to 125, a 74% year-over-year increase. The company completed an inaugural $375 million securitization collateralized entirely by multifamily RTLs.

Commercial real estate revenue rose to $187.0 million from $182.1 million. Elecor increased year-to-date leasing activity to 1.0 million square feet, achieving rents 22% higher across the portfolio versus fiscal 2025, after 681 thousand square feet year-to-date in the prior quarter. The company closed a joint venture for 1301 Avenue of the Americas and a $515 million refinancing of 31 West 52nd Street.

The investment portfolio purchased $1.6 billion in UPB of non-qualified mortgage loans, completed two NQM securitizations totaling $975 million in UPB, acquired $521 million of home improvement loans under the Upgrade forward-flow agreement (bringing the total purchased through quarter-end to $1.5 billion), amended that agreement for an additional $1.2 billion in UPB, and completed a $306 million home-improvement securitization.

Chief executive Michael Nierenberg said the quarter reflected disciplined execution across the platform, with Newrez’s 24% annualized operating return on equity, Genesis year-to-date originations of $5.0 billion, and Elecor’s joint venture and 320,000 square feet of new leases.