RITMHIGH SIGNALFINANCIAL10-K

RITM shows massive 255% surge in Net Interest Income but concerning 25% decline in Net Income despite significant asset growth, indicating potential operational inefficiencies or margin compression.

The dramatic swing in Net Interest Income coupled with declining profitability suggests RITM may be struggling to effectively monetize its expanded asset base, which grew 15% to $53.1B. The substantial increase in outstanding shares (from 520M to 556M) indicates significant dilution, while the company's core profitability metrics are deteriorating despite revenue scale.

Comparing 2026-02-19 vs 2025-02-18View on EDGAR →
FINANCIAL ANALYSIS

RITM experienced dramatic financial restructuring with Net Interest Income exploding 255% to $347M and total assets expanding 15% to $53B, yet Net Income fell 25% to $697M and revenue declined 12% to $4.6B. Operating cash flow improved significantly from -$2.2B to -$1.3B, though remaining deeply negative, while the company increased dividend payments 16% despite profitability challenges. The mixed signals suggest a company in transition with substantial asset growth but declining operational efficiency and concerning cash generation issues.

FINANCIAL STATEMENT CHANGES
Net Interest Income
P&L
+255.4%
$97.6M→$346.9M

Net interest income grew 255.4% — benefiting from rate environment or loan book expansion.

Interest Expense
P&L
+79.7%
$791.0M→$1.4B

Interest expense surged 79.7% — significant debt increase or rising rates materially impacting earnings.

Operating Cash Flow
Cash Flow
+40.9%
-$2.2B→-$1.3B

Operating cash flow surged 40.9% — exceptional cash generation, highest quality earnings signal.

Cash & Equivalents
Balance Sheet
+26.7%
$1.5B→$1.8B

Cash grew 26.7% — improving liquidity position supports investment and shareholder returns.

Net Income
P&L
-25.2%
$931.5M→$697.1M

Net income declined 25.2% — review whether driven by operations, interest costs, or non-recurring items.

Dividends Paid
Cash Flow
+16.1%
$570.2M→$661.9M

Dividend payments increased 16.1% — management confidence in sustained cash generation.

Total Assets
Balance Sheet
+15.2%
$46.0B→$53.1B

Asset base grew 15.2% — expansion through organic growth, acquisitions, or capital deployment.

Total Liabilities
Balance Sheet
+14.8%
$38.2B→$43.8B

Liabilities increased 14.8% — monitor debt-to-equity ratio and interest coverage.

Revenue
P&L
-11.8%
$5.2B→$4.6B

Revenue softened 11.8% — monitor whether this is cyclical or structural.

LANGUAGE CHANGES
NEW — 2026-02-19
PRIOR — 2025-02-18
ADDED
Common stock, $0.01 par value per share: 555,892,415 shares outstanding as of February 13, 2026.
Such forward-looking statements relate to and are based on, among other things, the operating performance of our investments, the stability of our earnings, our financing needs, certain assumptions, future expectations, future plans and strategies, projections of results of operations, cash flows or financial condition, the size and/or attractiveness of market opportunities, the residential and commercial real estate markets and general economic conditions or other forward-looking information.
( Rithm Property Trust ) and Rithm Perpetual Life Residential Trust ( R-HOME ); risks related to our recent acquisitions of Crestline Management, L.P.
We also direct readers to other risks and uncertainties referenced under Part I, Item 1A.
SPECIAL NOTE REGARDING EXHIBITS In reviewing the agreements included as exhibits to this Annual Report on Form 10-K for the year ended December 31, 2025 (the Annual Report ), please remember they are included to provide you with information regarding their terms and are not intended to provide any other factual or disclosure information about Rithm Capital Corp.
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REMOVED
Common stock, $0.01 par value per share: 520,660,083 shares outstanding as of February 13, 2025.
Such forward-looking statements relate to, among other things, the operating performance of our investments, the stability of our earnings, our financing needs and the size, attractiveness of market opportunities and the residential real estate market and general economic conditions.
Forward-looking statements are based on certain assumptions, discuss future expectations, describe future plans and strategies, contain projections of results of operations, cash flows or financial condition or state other forward-looking information.
Securities and Exchange Commission (the SEC ) as investment advisers under Investment Advisers Act of 1940 (the Advisers Act ), including Sculptor and RCM GA Manager LLC ( RCM Manager ), which imposes limits on our operations; our ability to maintain our exclusion from registration under the Investment Company Act of 1940 (the 1940 Act ) and limits on our operations from maintaining such exclusion; our ability to maintain our qualification as a real estate investment trust ( REIT ) for the United States of America ( U.S.
) federal income tax purposes and limits on our operations from maintaining REIT status; risks related to the legislative/regulatory environment, including, but not limited to, the impact of regulation of corporate governance and public disclosure, changes in regulatory and accounting rules, U.S.
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