nrz-20250630

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2025

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

For the transition period from ________________to________________

Commission File Number: 001-35777


Rithm Capital Corp.
(Exact name of registrant as specified in its charter)

Delaware

45-3449660

(State or other jurisdiction of incorporation or organization)

(I.R.S. Employer Identification No.)

799 Broadway

New York

10003

(Address of principal executive offices)

(Zip Code)


(212)			850-7770
(Registrant’s telephone number, including area code)

None

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:


Title of each class:	Trading Symbol(s)	Name of each exchange on which registered:
Common Stock, $0.01 par value per share	RITM	New York Stock Exchange
7.50% Series A Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock	RITM PR A	New York Stock Exchange
7.125% Series B Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock	RITM PR B	New York Stock Exchange
6.375% Series C Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock	RITM PR C	New York Stock Exchange
7.00% Fixed-Rate Reset Series D Cumulative Redeemable Preferred Stock	RITM PR D	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

☒

Accelerated filer

☐

Non-accelerated filer

☐

Smaller reporting company

☐

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

Common stock, $0.01 par value per share: 530,292,171 shares outstanding as of July 29, 2025.

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS

This report contains certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, which statements involve substantial risks and uncertainties. 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. Forward-looking statements are generally identifiable by use of forward-looking terminology such as “may,” “will,” “plan,” “should,” “potential,” “intend,” “expect,” “endeavor,” “seek,” “anticipate,” “estimate,” “overestimate,” “underestimate,” “believe,” “could,” “project,” “predict,” “continue” or other similar words or expressions. Our ability to predict results or the actual outcome of future plans or strategies is inherently limited. Although we believe that the expectations reflected in such forward-looking statements are based on reasonable assumptions, our actual results, activities and performance could differ materially from those set forth in the forward-looking statements. These forward-looking statements involve risks, uncertainties and other factors that may cause our actual results in future periods to differ materially from forecasted results.

Our ability to implement our business strategy is subject to numerous risks, and the following is only a summary of the principal risks that may materially adversely affect our business, financial condition, results of operations and cash flows. The following should be read in conjunction with the more complete discussion of risk factors we face, which are set forth under Part I, Item 1A. “Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended December 31, 2024 and under Part II, Item 1A. “Risk Factors” of our Quarterly Report on Form 10-Q for the quarter ended March 31, 2025. These risks and factors include, among others:

•our ability to successfully operate our business strategies and generate sufficient revenue;

•the value of our investments, including the valuation methodologies used for certain assets in our funds, is based on various assumptions that could prove to be incorrect and could have a negative impact on our financial results;

•the risks related to our origination and servicing operations, including, but not limited to, compliance with applicable federal, state and local laws, regulations and other requirements, including changes in regulatory oversight; significant increases in loan delinquencies; compliance with the terms of related servicing agreements; financing related to servicer advances, mortgage servicing rights (“MSRs” and each mortgage servicing right, an “MSR”) and our origination business; expenses related to servicing high risk loans; unrecoverable or delayed recovery of servicing advances; foreclosure rates; servicer ratings; and termination of government mortgage refinancing programs;

•changes in general economic conditions, including the impacts of tariffs and inflation or other governmental changes, a general economic slowdown, increased market volatility or a severe recession in our industry or in the commercial finance, asset management and real estate sectors, including the impact on the value of our assets or the performance of our investments;

•competition within the finance, real estate and asset management industries;

•interest rate fluctuations and shifts in the yield curve;

•changes in interest rates and/or credit spreads, as well as the risks related to the success of any hedging strategy we may undertake in relation to such changes;

•the impact that risks associated with residential mortgage loans, including subprime mortgage loans, home equity lines of credit (“HELOCs”) and consumer loans, as well as risks associated with deficiencies in servicing and foreclosure practices, may have on the value of our MSRs, excess mortgage servicing rights (“Excess MSRs”), servicer advance investments, residential mortgage-backed securities (“RMBS”), residential mortgage loans, HELOCs and consumer loan portfolios;

•our reliance on, and counterparty concentration and default risks in, the servicers and subservicers we engage (“Servicing Partners”) and other third parties;

•the risks that default and recovery rates on our MSRs, Excess MSRs, servicer advance investments, servicer advance receivables, RMBS, residential mortgage loans, HELOCs and consumer loans deteriorate compared to our underwriting estimates;

•changes in prepayment rates on the loans underlying certain of our assets, including, but not limited to, our MSRs or Excess MSRs, as well as the risk that projected recapture rates on the loan pools underlying our MSRs or Excess MSRs are not achieved;

•servicer advances may not be recoverable or may take longer to recover than we expect, which could cause us to fail to achieve our targeted return on our servicer advance investments or MSRs;

•cybersecurity incidents and technology disruptions or failures, including risks related to the use of artificial intelligence by us and our customers;

•our dependence on counterparties and vendors to provide certain services and risks related to the exposure to counterparties that are unwilling or unable to honor contractual obligations, including their obligation to indemnify us, keep our information confidential or repurchase defective mortgage loans;

•the mortgage lending and origination- and servicing-related regulations promulgated by the Consumer Financial Protection Bureau, as well as other federal, state and local governmental and regulatory authorities and enforcement of such regulations;

•risks related to our Asset Management business, which includes, but is not limited to, Sculptor Capital Management, Inc. (together with its affiliates, “Sculptor”) and Sculptor’s funds, including, but not limited to, redemption risk, market risk, historical return-related risk, risks related to investment professionals, leverage risk, diligence risk, liquidity risk, risks related to the liquidation of the funds and loss of management fees, valuation risk, risks related to minority investments, foreign investment risk, regulatory risk, risks related to hedging, risks related to conflicts of interest and risk management and investment strategy risks, as well as any risks related to our management of Rithm Property Trust Inc. (“Rithm Property Trust”);

•risks associated with our Genesis Capital LLC (“Genesis”) business, including but not limited to, borrower risk, risks related to short-term loans and balloon payments, risks related to construction loans and concentration risk;

•risks associated with our single-family rental (“SFR”) business, including but not limited to the impact of seasonal fluctuations, regulation of the SFR industry, significant competition in the leasing market for quality residents and fixed costs related to the SFR industry, such as increasing property taxes, homeowners’ association (“HOA”) fees and insurance costs;

•risks related to the operations of our subsidiaries that are registered with the U.S. Securities and Exchange Commission (the “SEC”) as investment advisers under Investment Advisers Act of 1940, including Sculptor, RCM GA Manager LLC (“RCM Manager”) and Rithm Capital Advisors LLC, which imposes limits on our operations;

•our ability to maintain our exclusion from registration under the Investment Company Act of 1940 and limits on our operations from maintaining such exclusion;

•our ability to maintain our qualification as a real estate investment trust (“REIT”) for 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 regarding corporate governance and public disclosure, changes in regulatory and accounting rules, U.S. government programs intended to grow the economy, future changes to tax laws, regulatory supervision by the Financial Stability Oversight Council, the federal conservatorship of the Federal National Mortgage Association (“Fannie Mae”) and the Federal Home Loan Mortgage Corporation (“Freddie Mac”, and together with Fannie Mae, “GSEs”), legislation that permits modification of the terms of residential mortgage loans and the impact of uncertainty surrounding regulatory oversight in the current administration;

•the risk that actions by the GSEs, the Government National Mortgage Association (“Ginnie Mae” and, collectively with the GSEs, the “Agencies” and each of Fannie Mae, Freddie Mac and Ginnie Mae, an “Agency”) or other regulatory initiatives or actions may adversely affect returns from investments in MSRs and Excess MSRs and may lower gain on sale margins;

•risks associated with our indebtedness, including, but not limited to, our senior unsecured notes and related restrictive covenants and non-recourse long-term financing structures;

•our ability to obtain and maintain financing arrangements on terms favorable to us or at all, whether prompted by adverse changes in financing markets or otherwise;

•increased focus related to environmental, social and governance issues, including, but not limited to climate change and related regulations, and any impact such focus could have on our reputation;

•impact from any of our current or future acquisitions and our ability to successfully integrate the acquired assets, entities, employees and assumed liabilities;

•the impact of current or future legal proceedings and regulatory investigations and inquiries involving us, our Servicing Partners or other business partners;

•adverse market, regulatory or interest rate environments or our issuance of debt or equity, any of which may negatively affect the market price of our common stock;

•our ability to consummate future opportunities for acquisitions and dispositions of assets and financing transactions;

•our ability to pay distributions on our common stock;

•dilution experienced by our existing stockholders as a result of the conversion of the preferred stock into shares of common stock or the vesting of performance stock units and restricted stock units or other compensatory securities; and

•risks related to our ability to maintain effective internal control over financial reporting, including our ability to remediate any existing material weakness and the timing of any such remediation.

We also direct readers to other risks and uncertainties referenced under Part I, Item 1A. “Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended December 31, 2024 and under Part II, Item 1A. “Risk Factors” of our Quarterly Report on Form 10-Q for the quarter ended March 31, 2025. We caution that you should not place undue reliance on any of our forward-looking statements. Further, any forward-looking statement speaks only as of the date on which it is made. New risks and uncertainties arise from time to time, and it is impossible for us to predict those events or how they may affect us. Except as required by law, we are under no obligation (and expressly disclaim any obligation) to update or alter any forward-looking statement, whether written or oral, that we may make from time to time, whether as a result of new information, future events or otherwise.

SPECIAL NOTE REGARDING EXHIBITS

In reviewing the agreements included as exhibits to this Quarterly Report on Form 10-Q, 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. (together with its consolidated subsidiaries, the “Company”, “Rithm Capital” or “we”, “our” and “us”) or the other parties to the agreements. The agreements contain representations and warranties by each of the parties to the applicable agreement. These representations and warranties have been made solely for the benefit of the other parties to the applicable agreement and:

•should not in all instances be treated as categorical statements of fact, but rather as a way of allocating the risk to one of the parties if those statements proved to be inaccurate;

•have been qualified by disclosures that were made to the other party in connection with the negotiation of the applicable agreement, which disclosures are not necessarily reflected in the agreement;

•may apply standards of materiality in a way that is different from what may be viewed as material to you or other investors; and

•were made only as of the date of the applicable agreement or such other date or dates as may be specified in the agreement and are subject to more recent developments.

Accordingly, these representations and warranties may not describe the actual state of affairs as of the date they were made or at any other time. Additional information about the Company may be found elsewhere in this Quarterly Report on Form 10-Q and the Company’s other public filings, which are available without charge through the SEC’s website at http://www.sec.gov.

The Company acknowledges that, notwithstanding the inclusion of the foregoing cautionary statements, it is responsible for considering whether additional specific disclosures of material information regarding material contractual provisions are required to make the statements in this report not misleading.


RITHM CAPITAL CORP.
FORM 10-Q

INDEX

									PAGE
Part 1. Financial Information
Item 1. Financial Statements (Unaudited)									1
Consolidated Balance Sheets									1
Consolidated Statements of Operations									2
Consolidated Statements of Comprehensive Income									3
Consolidated Statements of Changes in Stockholders' Equity									4
Consolidated Statements of Cash Flows									7
Notes to Consolidated Financial Statements									9
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations									86
Item 3. Quantitative and Qualitative Disclosures About Market Risk									119
Item 4. Controls and Procedures									122
Part II. Other Information
Item 1. Legal Proceedings									122
Item 1A. Risk Factors									122
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds									122
Item 3. Defaults Upon Senior Securities									123
Item 4. Mine Safety Disclosures									123
Item 5. Other Information									123
Item 6. Exhibits									124
Signatures									125

PART 1. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS (UNAUDITED)


RITHM CAPITAL CORP. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(dollars in thousands, except share data)




	June 30, 2025 (Unaudited)		December 31, 2024
Assets
Mortgage servicing rights and mortgage servicing rights financing receivables, at fair value	$	10,360,063	$	10,321,671
Government and government-backed securities (includes $8,844,111 and $9,711,346 at fair value, respectively)	8,868,879		9,736,116
Residential mortgage loans, held-for-sale (includes $4,126,335 and $4,307,571 at fair value, respectively)(A)	4,187,301		4,374,241
Residential mortgage loans, held-for-investment, at fair value	343,333		361,890
Consumer loans held-for-investment, at fair value(A)	465,231		665,565
Residential transition loans, at fair value	2,497,764		2,178,075
Residential mortgage loans subject to repurchase	2,264,600		2,745,756
Single-family rental properties	1,002,261		1,028,295
Cash and cash equivalents(A)	1,600,948		1,458,743
Restricted cash(A)	485,402		308,443
Servicer advances receivable	2,713,742		3,198,921


Other assets (includes $2,611,330 and $2,311,979 at fair value, respectively)(A)	4,660,827		4,563,415
Assets of Consolidated CFEs(A):
Investments, at fair value and other assets	4,865,602		5,107,826
Total Assets	$	44,315,953	$	46,048,957
Liabilities and Equity
Liabilities
Secured financing agreements(A)	$	15,897,778	$	16,782,467
Secured notes and bonds payable (includes $160,433 and $185,460 at fair value, respectively)(A)	9,764,857		10,298,075
Residential mortgage loan repurchase liability	2,264,600		2,745,756
Unsecured notes, net of issuance costs	1,414,497		1,204,220

Dividends payable	160,967		153,114
Accrued expenses and other liabilities (includes $532,422 and $525,486 at fair value, respectively)(A)	2,361,386		2,630,771
Liabilities of Consolidated CFEs(A):
Notes payable, at fair value and other liabilities	4,131,696		4,348,244
Total Liabilities	35,995,781		38,162,647
Commitments and Contingencies (Note 26)
Redeemable Noncontrolling Interests of Consolidated Subsidiaries (Note 23)	260,963		—
Stockholders’ Equity
Preferred stock, $0.01 par value, 100,000,000 shares authorized, 49,964,122 and 51,964,122 issued and outstanding, $1,249,104 and $1,299,104 aggregate liquidation preference, respectively	1,207,254		1,257,254
Common stock, $0.01 par value, 2,000,000,000 shares authorized, 530,292,171 and 520,656,256 issued and outstanding, respectively	5,303		5,206
Additional paid-in capital	6,652,587		6,528,613
Retained earnings (accumulated deficit)	18,399		(46,985)
Accumulated other comprehensive income	64,840		50,886
Stockholders’ Equity in Rithm Capital Corp.	7,948,383		7,794,974
Noncontrolling interests in equity of consolidated subsidiaries	110,826		91,336
Total Stockholders’ Equity	8,059,209		7,886,310
Total Liabilities and Equity	$	44,315,953	$	46,048,957

(A)The Company's consolidated balance sheets include assets and liabilities of consolidated variable interest entities (“VIEs”) and certain other consolidated VIEs classified as collateralized financing entities (“CFEs”) that are presented separately and measured under the CFE election. VIE assets can only be used to settle obligations and liabilities of the VIEs. VIE creditors do not have recourse to Rithm Capital Corp. As of June 30, 2025 and December 31, 2024, total assets of such consolidated VIEs were $6.2 billion and $6.3 billion, respectively, and total liabilities of such consolidated VIEs were $4.9 billion and $5.2 billion, respectively. See Note 20 for further details.

See notes to consolidated financial statements.


RITHM CAPITAL CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(dollars in thousands, except share and per share data)




	Three Months Ended June 30,				Six Months Ended June 30,
	2025		2024		2025		2024
Revenues
Servicing fee revenue, net and interest income from MSRs and MSR financing receivables	$	574,817	$	498,978	$	1,145,618	$	968,869
Change in fair value of MSRs and MSR financing receivables, net of economic hedges (includes realization of cash flows of $(176,680), $(165,138), $(323,571) and $(281,977), respectively)	(155,005)		(141,884)		(488,383)		(122,966)
Servicing revenue, net	419,812		357,094		657,235		845,903
Interest income	478,455		478,653		919,715		913,448
Gain on originated residential mortgage loans, held-for-sale, net	169,698		153,741		329,487		296,199
Other revenues	54,066		56,500		104,839		114,848
Asset management revenues	95,008		109,433		182,680		180,384
	1,217,039		1,155,421		2,193,956		2,350,782
Expenses
Interest expense and warehouse line fees	417,868		465,944		836,922		875,771
General and administrative	239,575		214,474		477,121		419,526
Compensation and benefits	294,407		270,448		565,874		506,226
	951,850		950,866		1,879,917		1,801,523
Other Income (Loss)
Realized and unrealized gains, net	22,741		59,217		21,598		79,628
Other income, net	18,478		26,393		27,551		42,177
	41,219		85,610		49,149		121,805
Income before Income Taxes	306,408		290,165		363,188		671,064
Income tax expense (benefit)	(11,598)		51,648		(35,528)		145,060
Net Income	318,006		238,517		398,716		526,004
Noncontrolling interests in income of consolidated subsidiaries	3,169		2,961		4,255		6,413
Redeemable noncontrolling interests in income of consolidated subsidiaries	3,120		—		3,933		—
Net Income Attributable to Rithm Capital Corp.	311,717		235,556		390,528		519,591
Change in redemption value of redeemable noncontrolling interests	—		—		15,611		—
Dividends on preferred stock	27,818		22,395		54,495		44,790
Net Income Attributable to Common Stockholders	$	283,899	$	213,161	$	320,422	$	474,801

Net Income per Share of Common Stock
Basic	$	0.54	$	0.44	$	0.61	$	0.98
Diluted	$	0.53	$	0.43	$	0.60	$	0.97
Weighted Average Number of Shares of Common Stock Outstanding
Basic	530,171,540		486,721,836		527,154,950		485,029,307
Diluted	537,347,700		490,981,282		534,011,117		488,456,392

Dividends Declared per Share of Common Stock	$	0.25	$	0.25	$	0.50	$	0.50

See notes to consolidated financial statements.


RITHM CAPITAL CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)
(dollars in thousands)



	Three Months Ended June 30,				Six Months Ended June 30,
	2025		2024		2025		2024
Net Income	$	318,006	$	238,517	$	398,716	$	526,004
Other Comprehensive Income (Loss):
Unrealized gain on available-for-sale securities, net of tax	3,210		412		7,951		2,015
Cumulative translation adjustment, net of tax	3,353		(158)		6,003		(934)
Comprehensive Income	324,569		238,771		412,670		527,085
Comprehensive income attributable to noncontrolling interests	3,169		2,961		4,255		6,413
Comprehensive income attributable to redeemable noncontrolling interests	3,120		—		3,933		—
Comprehensive Income Attributable to Rithm Capital Corp.	$	318,280	$	235,810	$	404,482	$	520,672

See notes to consolidated financial statements.


RITHM CAPITAL CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY (UNAUDITED)
FOR THE THREE MONTHS ENDED JUNE 30, 2025 AND 2024
(dollars in thousands, except share and per share data)


	Preferred Stock			Common Stock			Additional Paid-in Capital		Retained Earnings (Accumulated Deficit)		Accumulated Other Comprehensive Income		Stockholders’ Equity in Rithm Capital Corp.		Noncontrolling Interests in Equity of Consolidated Subsidiaries		Total Stockholders’ Equity
	Shares	Amount		Shares	Amount
Balance at March 31, 2025	49,964,122	$	1,207,254	530,122,477	$	5,301	$	6,635,226	$	(129,934)	$	58,277	$	7,776,124	$	108,716	$	7,884,840
Dividends declared on common stock	—	—		—	—		—		(132,573)		—		(132,573)		—		(132,573)
Dividends declared on preferred stock	—	—		—	—		—		(27,818)		—		(27,818)		—		(27,818)
Capital contributions	—	—		—	—		—		—		—		—		1,662		1,662
Capital distributions	—	—		—	—		—		—		—		—		(2,721)		(2,721)


Director share grants and stock-based compensation	—	—		169,694	2		17,361		(2,993)		—		14,370		—		14,370


Comprehensive Income:
Net income, excluding amounts attributable to redeemable noncontrolling interests	—	—		—	—		—		311,717		—		311,717		3,169		314,886
Unrealized gain on available-for-sale securities, net of tax	—	—		—	—		—		—		3,210		3,210		—		3,210
Cumulative translation adjustment, net of tax	—	—		—	—		—		—		3,353		3,353		—		3,353
Total comprehensive income, excluding amounts attributable to redeemable noncontrolling interests													318,280		3,169		321,449
Balance at June 30, 2025	49,964,122	$	1,207,254	530,292,171	$	5,303	$	6,652,587	$	18,399	$	64,840	$	7,948,383	$	110,826	$	8,059,209


	Preferred Stock			Common Stock			Additional Paid-in Capital		Accumulated Deficit		Accumulated Other Comprehensive Income		Stockholders’ Equity in Rithm Capital Corp.		Noncontrolling Interests in Equity of Consolidated Subsidiaries		Total Stockholders’ Equity
	Shares	Amount		Shares	Amount
Balance at March 31, 2024	51,964,122	$	1,257,254	483,477,713	$	4,836	$	6,075,080	$	(232,119)	$	44,501	$	7,149,552	$	93,820	$	7,243,372
Dividends declared on common stock	—	—		—	—		—		(122,433)		—		(122,433)		—		(122,433)
Dividends declared on preferred stock	—	—		—	—		—		(22,395)		—		(22,395)		—		(22,395)
Capital contributions	—	—		—	—		—		—		—		—		30,297		30,297
Capital distributions	—	—		—	—		—		—		—		—		(7,015)		(7,015)
Issuance of common stock	—	—		6,097,793	60		69,190		—		—		69,250		—		69,250
Purchase of noncontrolling interest	—	—		—	—		—		—		—		—		(26,042)		(26,042)
Director share grants and stock-based compensation	—	—		156,916	1		18,602		(1,794)		—		16,809		—		16,809


Comprehensive Income:
Net income	—	—		—	—		—		235,556		—		235,556		2,961		238,517
Unrealized gain on available-for-sale securities, net of tax	—	—		—	—		—		—		412		412		—		412
Cumulative translation adjustment, net of tax	—	—		—	—		—		—		(158)		(158)		—		(158)
Total comprehensive income													235,810		2,961		238,771
Balance at June 30, 2024	51,964,122	$	1,257,254	489,732,422	$	4,897	$	6,162,872	$	(143,185)	$	44,755	$	7,326,593	$	94,021	$	7,420,614


RITHM CAPITAL CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY (UNAUDITED), CONTINUED
FOR THE SIX MONTHS ENDED JUNE 30, 2025
(dollars in thousands, except share and per share data)


	Preferred Stock			Common Stock			Additional Paid-in Capital		Retained Earnings (Accumulated Deficit)		Accumulated Other Comprehensive Income		Stockholders’ Equity in Rithm Capital Corp.		Noncontrolling Interests in Equity of Consolidated Subsidiaries		Total Stockholders’ Equity
	Shares	Amount		Shares	Amount
Balance at December 31, 2024	51,964,122	$	1,257,254	520,656,256	$	5,206	$	6,528,613	$	(46,985)	$	50,886	$	7,794,974	$	91,336	$	7,886,310
Dividends declared on common stock	—	—		—	—		—		(265,104)		—		(265,104)		—		(265,104)
Dividends declared on preferred stock	—	—		—	—		—		(54,495)		—		(54,495)		—		(54,495)
Capital contributions	—	—		—	—		—		—		—		—		21,863		21,863
Capital distributions	—	—		—	—		—		—		—		—		(6,628)		(6,628)
Issuance of common stock	—	—		9,020,000	90		107,322		—		—		107,412		—		107,412
Preferred stock repurchase	(2,000,000)	(50,000)		—	—		—		—		—		(50,000)		—		(50,000)
Director share grants and stock-based compensation	—	—		615,915	7		29,959		(5,545)		—		24,421		—		24,421
Fair value of SPAC warrants at issuance	—	—		—	—		2,304		—		—		2,304		—		2,304
Change in redemption value of redeemable noncontrolling interests	—	—		—	—		(15,611)		—		—		(15,611)		—		(15,611)
Comprehensive Income:
Net income, excluding amounts attributable to redeemable noncontrolling interests	—	—		—	—		—		390,528		—		390,528		4,255		394,783
Unrealized gain on available-for-sale securities, net of tax	—	—		—	—		—		—		7,951		7,951		—		7,951
Cumulative translation adjustment, net of tax	—	—		—	—		—		—		6,003		6,003		—		6,003
Total comprehensive income, excluding amounts attributable to redeemable noncontrolling interests													404,482		4,255		408,737
Balance at June 30, 2025	49,964,122	$	1,207,254	530,292,171	$	5,303	$	6,652,587	$	18,399	$	64,840	$	7,948,383	$	110,826	$	8,059,209


RITHM CAPITAL CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY (UNAUDITED), CONTINUED
FOR THE SIX MONTHS ENDED JUNE 30, 2024
(dollars in thousands, except share and per share data)


	Preferred Stock			Common Stock			Additional Paid-in Capital		Accumulated Deficit		Accumulated Other Comprehensive Income		Stockholders’ Equity in Rithm Capital Corp.		Noncontrolling Interests in Equity of Consolidated Subsidiaries		Total Stockholders’ Equity
	Shares	Amount		Shares	Amount
Balance at December 31, 2023	51,964,122	$	1,257,254	483,226,239	$	4,833	$	6,074,322	$	(373,141)	$	43,674	$	7,006,942	$	94,096	$	7,101,038
Dividends declared on common stock	—	—		—	—		—		(243,302)		—		(243,302)		—		(243,302)
Dividends declared on preferred stock	—	—		—	—		—		(44,790)		—		(44,790)		—		(44,790)
Capital contributions	—	—		—	—		—		—		—		—		32,435		32,435
Capital distributions	—	—		—	—		—		—		—		—		(12,881)		(12,881)
Issuance of common stock	—	—		6,097,793	60		69,190		—		—		69,250		—		69,250
Purchase of noncontrolling interest	—	—		—	—		—		—		—		—		(26,042)		(26,042)
Director share grants and stock-based compensation	—	—		408,390	4		19,360		(1,543)		—		17,821		—		17,821


Comprehensive Income:
Net income	—	—		—	—		—		519,591		—		519,591		6,413		526,004
Unrealized gain on available-for-sale securities, net of tax	—	—		—	—		—		—		2,015		2,015		—		2,015
Cumulative translation adjustment, net of tax	—	—		—	—		—		—		(934)		(934)		—		(934)
Total comprehensive income													520,672		6,413		527,085
Balance at June 30, 2024	51,964,122	$	1,257,254	489,732,422	$	4,897	$	6,162,872	$	(143,185)	$	44,755	$	7,326,593	$	94,021	$	7,420,614

See notes to consolidated financial statements.


RITHM CAPITAL CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(dollars in thousands)



	Six Months Ended June 30,
	2025		2024
Cash Flows From Operating Activities
Net income	$	398,716	$	526,004
Adjustments to reconcile net income to net cash flows from operating activities:
Change in fair value of investments, net	(7,920)		262,460
Change in fair value of secured notes and bonds payable	24,028		2,451
Gain on settlement of investments, net	(11,488)		(322,944)
Gain on sale of originated residential mortgage loans, held-for-sale, net	(329,487)		(296,199)
(Gain) loss on transfer of loans to real estate owned (“REO”)	(40)		(3,151)
Accretion and other amortization	(34,331)		(45,137)
Provision for (reversal of) credit losses on securities, loans and REO	(2,932)		1,268
Non-cash portions of servicing revenue, net	508,682		152,315
Deferred tax provision	(55,148)		145,217
Mortgage loans originated and purchased for sale, net of fees	(29,403,351)		(26,721,645)
Sales proceeds and loan repayment proceeds for residential mortgage loans, held-for-sale	29,143,670		24,615,975

Loan repayment proceeds of consolidated entities	493,817		191,962

Interest received from servicer advance investments, RMBS, loans and other	23,066		20,744
Interest received from reverse repurchase agreements	—		39,333

Loan originations and investment purchases of consolidated CFEs	(390,045)		(12,378)
Changes in:
Servicer advances receivable, net	463,308		240,698
Other assets	165,319		129,409
Accrued expenses and other liabilities	(121,677)		(126,322)
Net cash provided by (used in) operating activities	864,187		(1,199,940)


RITHM CAPITAL CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED), CONTINUED
(dollars in thousands)



	Six Months Ended June 30,
	2025	2024
Cash Flows From Investing Activities
Business acquisitions, net of cash acquired	—	(603,778)
Purchase of servicer advance investments	(350,377)	(400,652)
Purchase of Excess MSRs	—	(122,887)
Purchase of government-backed and other securities	(1,478,667)	(1,330,079)
Proceeds from sale of government-backed and other securities	1,291	—
Purchase of Treasury securities	(49,468)	(5,047,710)
Treasury sales and Treasury securities payable	2,013,706	4,673,753
Reverse repurchase agreements entered and repurchase agreements closed	(507,863)	(1,747,581)
Reverse repurchase agreements closed and repurchase agreements entered	503,863	2,020,226

Maturity of Treasury securities	50,000	25,000
Purchase of SFR properties, MSRs and other assets	(190,305)	(149,950)

Origination of residential transition loans	(1,709,128)	(1,324,448)
Draws on revolving consumer loans	(11,669)	(10,098)
Net settlement of derivatives and hedges	(52,075)	372,808
Return of investments in Excess MSRs	22,082	22,270
Return of investments in equity method investees	3,343	25,376
Principal repayments from servicer advance investments	376,142	419,513
Principal repayments from government, government-backed and other securities	361,622	400,802
Principal repayments from residential mortgage loans	22,140	24,022
Principal repayments from consumer loans	198,992	300,193
Principal repayments and sales proceeds of residential transition loans	766,439	798,720
Principal repayments and sales proceeds of investments of consolidated CFEs	607,445	236,753
Loan originations and investment purchases of consolidated CFEs	—	(4,766)
Settlement of sale of MSRs and MSR financing receivables	197	(2,404)
Proceeds from sale of REO	19,032	13,612
Net cash provided by (used in) investing activities	596,742	(1,411,305)


RITHM CAPITAL CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED), CONTINUED
(dollars in thousands)



	Six Months Ended June 30,
	2025		2024
Cash Flows From Financing Activities
Repayments of secured financing agreements	(32,257,543)		(39,071,785)
Repayments of warehouse credit facilities including those related to the initial consolidation of CLOs	(35,288,354)		(26,874,997)
Repayment of unsecured notes	(291,476)		(275,000)
Net settlement of margin deposits under repurchase agreements and derivatives	181,335		(502,647)
Repayments of secured notes and bonds payable	(3,812,544)		(2,959,966)
Deferred financing fees	(16,562)		(12,225)
Dividends paid on common and preferred stock	(316,178)		(286,596)
Borrowings under secured financing agreements	31,272,394		40,053,308
Borrowings under warehouse credit facilities	35,362,956		28,510,564
Borrowings under notes receivable financing	—		352,683
Borrowings under secured notes and bonds payable	3,284,314		2,353,384
Proceeds from issuance of unsecured senior notes	495,000		767,103
Proceeds from issuance of debt obligations of consolidated CFEs	—		874,615
Repayments of debt obligations of consolidated CFEs	(170,873)		(515,338)
Issuance of common stock	107,412		69,250
Repurchase of preferred stock	(50,000)		—
Net proceeds from issuance of Class A Units of SPAC	230,000		—
Contributions from noncontrolling and redeemable noncontrolling interests	49,323		32,435
Distributions to noncontrolling and redeemable noncontrolling interests	(7,058)		(12,881)

Purchase of noncontrolling interest	—		(26,042)
Net cash provided by (used in) financing activities	(1,227,854)		2,475,865

Net Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash	233,075		(135,380)
Cash, Cash Equivalents and Restricted Cash, Beginning of Period	1,917,809		1,697,095
Cash, Cash Equivalents and Restricted Cash, End of Period	$	2,150,884	$	1,561,715

Supplemental Disclosure of Cash Flow Information
Cash paid during the period for interest	$	898,609	$	838,256
Cash paid during the period for income taxes	16,582		2,956
Supplemental Schedule of Non-Cash Investing and Financing Activities
Dividends declared but not paid on common and preferred stock	160,967		143,199
Transfer from residential mortgage loans to REO and other assets	16,556		8,841
Real estate securities retained from loan securitizations	59,054		—
Residential mortgage loans subject to repurchase	2,264,600		1,905,625

See notes to consolidated financial statements.


RITHM CAPITAL CORP. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
(dollars in tables in thousands, except share and per share data)

1. BUSINESS AND ORGANIZATION

Rithm Capital Corp. (together with its consolidated subsidiaries, “Rithm Capital” or the “Company”) is a global asset manager focused on real estate, credit and financial services. Rithm Capital is a Delaware corporation and currently operates as an internally managed real estate investment trust (“REIT”).

Rithm Capital seeks to generate long-term value for its investors by using its investment expertise to identify, manage and invest in real estate related and other financial assets and through its broader asset management capabilities in order to provide investors with attractive risk-adjusted returns. The Company’s investments in real estate related assets include its equity interest in operating companies, including leading origination and servicing platforms held through wholly-owned subsidiaries, Newrez LLC (“Newrez”) and Genesis Capital LLC (“Genesis”), as well as investments in single-family rental (“SFR”) properties, title, appraisal and property preservation and maintenance businesses. The Company’s real estate related strategy involves opportunistically pursuing acquisitions and seeking to establish strategic partnerships that the Company believes enable it to maximize the value of its investments by offering products and services related to the lifecycle of each mortgage loan and underlying residential property or collateral. Rithm Capital’s asset management business primarily operates through its wholly-owned subsidiaries, Sculptor Capital Management, Inc. (“Sculptor”) and its affiliates, acquired on November 17, 2023, RCM GA Manager LLC (“RCM Manager”) and Rithm Capital Advisors LLC (“RCA”).

As of June 30, 2025, Rithm Capital conducted its business through the following segments: (i) Origination and Servicing, (ii) Investment Portfolio, (iii) Residential Transitional Lending and (iv) Asset Management.

Rithm Capital’s Origination and Servicing businesses operate through its wholly-owned subsidiaries Newrez and New Residential Mortgage LLC (“NRM”). The Company’s residential mortgage origination business sources and originates loans through four channels: Direct to Consumer, Retail/Joint Venture, Wholesale and Correspondent. Additionally, the Company’s servicing platform complements its origination business and offers its subsidiaries and third-party clients both performing and special servicing capabilities.

NRM and Newrez are licensed or otherwise eligible to service residential mortgage loans in all states within the United States of America (“U.S.”) and the District of Columbia. NRM and Newrez are also approved to service mortgage loans on behalf of investors, including the Federal National Mortgage Association (“Fannie Mae”) and the Federal Home Loan Mortgage Corporation (“Freddie Mac”, and together with Fannie Mae, “GSEs”), and in the case of Newrez, Government National Mortgage Association (“Ginnie Mae”, collectively with the GSEs, the “Agencies” and each of Fannie Mae, Freddie Mac and Ginnie Mae, an “Agency”). Newrez is also eligible to perform servicing on behalf of other servicers as a subservicer.

Newrez sells substantially all of the mortgage loans it originates into the secondary market. Newrez securitizes loans into residential mortgage-backed securities (“RMBS”) through the Agencies. Loans originated outside of the GSEs, guidelines of the Federal Housing Administration (“FHA”), U.S. Department of Agriculture or Department of Veterans Affairs (for loans securitized with Ginnie Mae) are sold to private investors and mortgage conduits. Newrez generally retains the right to service the underlying residential mortgage loans sold and securitized by Newrez. NRM and Newrez are required to conduct aspects of their operations in accordance with applicable policies and guidelines of such Agencies.

Rithm Capital also operates additional real estate related businesses through its wholly-owned subsidiaries, including: (i) Avenue 365 Lender Services, LLC, its title company, (ii) eStreet Appraisal Management LLC, its appraisal management company, (iii) Adoor LLC (“Adoor”), its company focused on the acquisition and management of SFR properties, (iv) Genesis, a lender for experienced developers and investors of residential real estate, which also supports the Adoor business, and (v) Guardian Asset Management (“Guardian”), a national provider of field services and property management services. In addition to these wholly-owned subsidiaries, Rithm Capital also has operations in (i) residential property management through Adoor Property Management LLC (“APM”) and (ii) commercial real estate through its joint venture with GreenBarn Investment Group, which provides acquisition and development opportunities, asset and property management, and leasing and construction support.


RITHM CAPITAL CORP. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
(dollars in tables in thousands, except share and per share data)

With respect to Rithm’s Asset Management business, Sculptor is a leading global alternative asset manager and provides asset management services and investment products across credit, real estate and multi-strategy platforms through commingled funds, separate accounts and other alternative investment vehicles. RCM Manager manages Rithm Property Trust Inc. (“Rithm Property Trust”), a publicly traded mortgage REIT, pursuant to a management agreement, dated June 11, 2024 (as amended by that First Amendment to the Management Agreement, dated as of October 18, 2024, the “Rithm Property Trust Management Agreement”), and RCA serves as an investment adviser to funds and managed accounts.

In the first quarter of 2025, Rithm Capital sponsored the $230.0 million initial public offering (“IPO”) of Rithm Acquisition Corp., a consolidated special purpose acquisition company (“SPAC”), formed for the purpose of entering into a business combination with one or more businesses, with a focus on businesses in the financial services, real estate and infrastructure sectors. See Note 20 for additional information.

Rithm Capital has elected and intends to qualify to be taxed as a REIT for U.S. federal income tax purposes. As such, Rithm Capital will generally not be subject to U.S. federal corporate income tax on that portion of its net income that is distributed to stockholders if it distributes at least 90% of its REIT taxable income to its stockholders by prescribed dates and complies with various other requirements. See Note 2 and Note 25 for additional information regarding Rithm Capital’s taxable REIT subsidiaries (“TRSs”).

2. BASIS OF PRESENTATION

Interim Financial Statements — The accompanying consolidated financial statements are prepared in accordance with U.S. generally accepted accounting principles (“GAAP” or “U.S. GAAP”). In the opinion of management, all adjustments considered necessary for a fair presentation of Rithm Capital’s financial position, results of operations and cash flows have been included and are of a normal and recurring nature. The consolidated financial statements include the accounts of Rithm Capital and its consolidated subsidiaries. All significant intercompany transactions and balances have been eliminated. Rithm Capital consolidates those entities in which it has control over significant operating, financing and investing decisions of the entity, as well as those entities classified as VIEs in which Rithm Capital is determined to be the primary beneficiary. For entities over which Rithm Capital exercises significant influence, but which do not meet the requirements for consolidation, Rithm Capital applies the equity method of accounting whereby it records its share of the underlying income of such entities unless a fair value option is elected. Distributions from such equity method investments are classified in the consolidated statements of cash flows based on the cumulative earnings approach, where all distributions up to cumulative earnings are classified as distributions of earnings.

Reclassifications — Certain prior period amounts in Rithm Capital’s consolidated financial statements and respective notes have been reclassified to be consistent with the current period presentation. In particular, the Company reclassified gains and losses related to certain derivatives and government and government-backed securities economically hedging mortgage servicing rights (“MSRs” and each, mortgage servicing right, an “MSR”) that were previously reported within realized and unrealized gains (losses), net, to the change in fair value of MSRs and MSR financing receivables, net of economic hedges line item on the consolidated statements of operations. Such reclassifications had no impact on net income, total assets, total liabilities, stockholders’ equity or cash position.

Risks and Uncertainties — In the normal course of its business, Rithm Capital primarily encounters two significant types of economic risk: credit risk and market risk. Credit risk is the risk of default on Rithm Capital’s investments that results from a borrower’s or counterparty’s inability or unwillingness to make contractually required payments. Market risk reflects changes in the value of investments due to changes in prepayment rates, interest rates, spreads or other market factors, including risks that impact the value of the collateral underlying Rithm Capital’s investments. Taking into consideration these risks along with estimated prepayments, financings, collateral values, payment histories and other information, Rithm Capital believes that the carrying values of its investments are reasonable. Furthermore, for each of the periods presented, a significant portion of Rithm Capital’s assets are dependent on its servicers’ and subservicers’ abilities to perform their servicing obligations with respect to the residential mortgage loans underlying Rithm Capital’s excess mortgage servicing rights (“Excess MSRs”), MSRs, MSR financing receivables, servicer advance investments, RMBS issued by either public trusts or private label securitization entities and loans. If a servicer or subservicer is terminated, Rithm Capital’s right to receive its portion of the cash flows related to interests in servicing related assets may also be terminated.


RITHM CAPITAL CORP. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
(dollars in tables in thousands, except share and per share data)

Use of Estimates — The preparation of consolidated financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect reported amounts in the consolidated financial statements and accompanying notes. Management believes that estimates utilized in preparation of the consolidated financial statements are reasonable. The most critical estimates include those related to fair value measurements of the Company’s assets and liabilities, the determination of whether or not to consolidate a VIE or a voting interest entity (“VOE”) and accounting for goodwill. Actual results could differ from those estimates and such differences could be material.

Redeemable Noncontrolling Interests — The Company recognizes redeemable noncontrolling interests at their redemption amount each reporting period. Changes in the redemption amount are recognized as they occur with an adjustment to the carrying value at the end of each reporting period through additional paid-in capital in an amount equal to the difference between the carrying value of the interests (adjusted for the earnings attributable to noncontrolling interest holders) and their redemption value. The accretion of the redeemable noncontrolling interest to redemption value is recorded within change in redemption value of redeemable noncontrolling interests in the consolidated statements of operations. The Class A ordinary shares of the consolidated SPAC and certain units issued by a consolidated entity have redemption rights that are considered to be outside of the Company’s control, and as a result, these shares are presented as redeemable noncontrolling interests of consolidated subsidiaries on the consolidated balance sheets. Profits and losses attributable to these interests are presented as redeemable noncontrolling interests in income of consolidated subsidiaries in the consolidated statements of operations. The redeemable noncontrolling interest related to the SPAC was initially recorded at the original issue price, net of offering costs and the initial fair value of separately traded warrants.

For the complete listing of the significant accounting policies, see Note 2 to the Company’s consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024.

Recent Accounting Pronouncements

Recently Adopted Accounting Standards

In March 2024, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2024-01, Compensation-Stock Compensation (Topic 718): Scope Application of Profits Interest and Similar Awards, to clarify the scope application of profits interest and similar awards by adding illustrative guidance to help entities determine whether profit interests and similar awards should be accounted for as share-based payment arrangements within the scope of ASC 718, Compensation-Stock Compensation. This ASU became effective for the Company on January 1, 2025. The adoption of the new standard did not have a material impact on the Company’s consolidated financial statements.

Recently Issued Accounting Standards Not Yet Adopted

In December 2023, the FASB issued ASU 2023-09, Improvements to Income Tax Disclosures (Topic 740), which focuses on income tax disclosures around effective tax rates and cash income taxes paid. This standard requires disaggregated information about a reporting entity’s effective tax rate reconciliation, including a tabular rate reconciliation for specified categories and additional information for reconciling items that meet a quantitative threshold. The standard also requires a summary of federal, state and local, and foreign income taxes paid, net of refunds received, as well as separate disclosure of payments made to jurisdictions representing 5% or more of total income taxes paid. The new disclosures specified by ASU 2023-09 are required in the Company’s annual financial statements beginning with the year ending December 31, 2025, with early adoption permitted. The Company expects the adoption of ASU 2023-09 will lead to additional income tax disclosures in its consolidated financial statements for the year ending December 31, 2025 and future annual periods.

In November 2024, the FASB issued ASU 2024-03, Income Statement - Reporting Comprehensive Income Expense Disaggregation Disclosures (Subtopic 220-40), and in January 2025, the FASB issued ASU 2025-01, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Clarifying the Effective Date. This standard requires public companies to disclose additional information about specific expense categories in the notes to financial statements at interim and annual reporting periods. The new standard, as clarified by ASU 2025-01, is effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027, with early adoption permitted. The Company is currently evaluating the potential impact on its consolidated financial statements upon adoption.


RITHM CAPITAL CORP. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
(dollars in tables in thousands, except share and per share data)

In May 2025, the FASB issued ASU 2025-03, Business Combinations (Topic 805) and Consolidation (Topic 810): Determining the Accounting Acquirer in the Acquisition of a Variable Interest Entity, which clarifies the guidance for identifying the accounting acquirer in business combinations effected primarily by exchanging equity interests when the legal acquiree is a VIE that meets the definition of a business. This ASU is effective for the Company on January 1, 2027, with early adoption permitted and is applied prospectively to acquisitions after the adoption date. The Company is currently evaluating the potential impact on its consolidated financial statements upon adoption.

3. BUSINESS ACQUISITIONS

Acquisition of Computershare Mortgage Services Inc.

Rithm Capital completed the acquisition of Computershare Mortgage Services Inc. (“Computershare”) and certain affiliated companies, including Specialized Loan Servicing LLC (“SLS”), and the simultaneous merger of SLS into Newrez on May 1, 2024 (the “Computershare Acquisition”). Rithm Capital accounted for this transaction using the acquisition method which requires, among other things, that the assets acquired and liabilities assumed be recognized at fair value as of the acquisition date.

Purchase Price Allocation

The following table summarizes the allocation of the total consideration paid to acquire the assets and assume the liabilities related to the Computershare Acquisition during the second quarter of 2024:


Total Consideration	$	715,458

Assets:
Residential mortgage loans, held-for-sale	2,402
Servicer advances receivable	269,484
Mortgage servicing rights, at fair value	700,207
Cash and cash equivalents	101,993
Restricted cash	2,271
Other assets(A)	83,056
Total Assets Acquired	1,159,413

Liabilities:
Accrued expenses and other liabilities	225,944
Secured notes and bonds payable	190,596
Total Liabilities Assumed	416,540

Net Assets	742,873

Bargain Purchase Gain	$	27,415

(A)Includes $16.0 million of intangible assets in the form of customer relationships. This intangible is being amortized over a finite life of 4.5 years.

Rithm Capital acquired 100% of the outstanding equity interests of Computershare and certain affiliated companies, including SLS, for cash consideration of $715.5 million. At the time of acquisition, SLS merged into Newrez. Upon completing the Computershare Acquisition, the consideration transferred for the acquired assets and assumed liabilities was determined to be less than the net assets acquired from Computershare, resulting in an economic gain (“Bargain Purchase”). Rithm Capital completed the required reassessment to validate that all assets acquired and liabilities assumed on the acquisition date had been identified and appropriately measured in accordance with ASC 805, Business Combinations. Based on the reassessment, the transaction resulted in a Bargain Purchase gain of $27.4 million, which has been included in other income (loss), net within the consolidated statements of operations for the year ended December 31, 2024. The Bargain Purchase gain was primarily driven by the change in fair value of the acquired MSRs between the signing and closing dates of the acquisition.


RITHM CAPITAL CORP. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
(dollars in tables in thousands, except share and per share data)

The estimate of fair value of assets and liabilities required the use of significant assumptions and estimates. Critical estimates included, but were not limited to, future expected cash flows, including projected revenues and expenses, and the applicable discount rates. These estimates were based on assumptions that management believes to be reasonable; however, actual results may differ materially from these estimates.

The results of Computershare’s operations have been included in the Company’s consolidated statements of operations from May 1, 2024 through June 30, 2024 and represent $33.6 million of revenue and $19.3 million of net income.

Acquisition-related costs are expensed in the period incurred. Rithm Capital recognized $14.9 million of Computershare Acquisition related costs that were expensed for the six months ended June 30, 2024. These costs were grouped and presented within compensation and benefits and general and administrative expenses in the consolidated statements of operations.

Intangible assets acquired consist of customer relationships. Rithm Capital amortizes finite-lived customer relationships on a straight-line basis over their respective useful lives. The weighted average life of the total acquired identifiable intangible assets is 4.5 years. The following table presents the details of identifiable intangible assets acquired:


	Estimated Useful Life	Amount
Customer Relationships	4.5	$	16,000
Total Identifiable Intangible Assets		$	16,000

Measurement Period Adjustments

The following table summarizes the provisional amounts recognized related to the Computershare Acquisition as of the acquisition date, as well as adjustments made during the measurement period to arrive at the final allocation of the total consideration paid for acquired assets and assumed liabilities:


	Preliminary Amounts as of the Acquisition Date		Subsequent Adjustments to Fair Value(A)		Final Amounts as of the Acquisition Date
Total Consideration	$	708,026	$	7,432	$	715,458

Assets:
Residential mortgage loans, held-for-sale	2,402		—		2,402
Servicer advances receivable	275,782		(6,298)		269,484
Mortgage servicing rights, at fair value	696,462		3,745		700,207
Cash and cash equivalents	102,011		(18)		101,993
Restricted cash	2,237		34		2,271
Other assets	84,028		(972)		83,056
Total Assets Acquired	1,162,922		(3,509)		1,159,413

Liabilities:
Accrued expenses and other liabilities	236,141		(10,197)		225,944
Secured notes and bonds payable	190,596		—		190,596
Total Liabilities Assumed	426,737		(10,197)		416,540

Net Assets	736,185		6,688		742,873

Bargain Purchase Gain	$	28,159	$	(744)	$	27,415

(A)The adjustment to total consideration was primarily driven by changes in valuation of MSRs acquired and resolutions with seller with respect to servicing fee receivables (as reflected in other assets) and legal obligations (as reflected in accrued expenses and other liabilities).


RITHM CAPITAL CORP. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
(dollars in tables in thousands, except share and per share data)

Unaudited Supplemental Pro Forma Financial Information

The following table presents unaudited pro forma combined revenues and income before income taxes for the three and six months ended June 30, 2024 prepared as if the Computershare Acquisition had been consummated on January 1, 2023:




Pro Forma	Three Months Ended June 30, 2024		Six Months Ended June 30, 2024
Revenues	$	1,172,239	$	2,484,622
Income before income taxes	293,203		694,194

The unaudited supplemental pro forma financial information reflects, among other things, financing adjustments, amortization of intangibles and transaction costs. The unaudited supplemental pro forma financial information has not been adjusted to reflect all conforming accounting policies. The unaudited supplemental pro forma financial information does not include any anticipated synergies or other anticipated benefits of the Computershare Acquisition and, accordingly, the unaudited supplemental pro forma financial information is not necessarily indicative of either future results of operations or results that might have been achieved had the Computershare Acquisition occurred on January 1, 2023.

4. SEGMENT REPORTING

Rithm Capital conducts its business and generates substantially all of its revenues primarily in the U.S. through operating segments that have been aggregated into the following reportable segments: (i) Origination and Servicing, (ii) Investment Portfolio, (iii) Residential Transitional Lending and (iv) Asset Management. Activities that are not directly attributable or not allocated to any of the reportable segments are reported under Corporate as a reconciling item to the Company’s consolidated financial statements. The activities within Corporate primarily consist of general and administrative expenses, corporate cash and related interest income, the Senior Unsecured Notes (as defined in Note 18) and related interest expense, and restricted cash and redeemable noncontrolling interest related to Class A ordinary shares of our consolidated SPAC.

In 2024, Rithm Capital reevaluated and revised the composition of its reportable segments based on the changes to its management reporting structure and performance assessment. MSR portfolio serviced by third-parties, government and government-backed securities, including corresponding hedges, servicer advances receivable and Guardian’s operations that were previously reflected within the Investment Portfolio segment are now reflected within the Origination and Servicing segment. Segment information for prior periods has been recast to reflect these changes. Additionally, the Mortgage Loans Receivable segment was renamed to Residential Transitional Lending.

Effective first quarter of 2025, new purchases of government and government-backed securities are reflected within the Investment Portfolio or the Origination and Servicing segment based on the nature of the business activity and performance assessment.

The structure of the reportable segments is differentiated by the nature of the Company’s business activities, which is consistent with the reporting structure of the Company’s internal organization, as well as by the financial information used by the Company’s chief operating decision maker (“CODM”) to make decisions regarding the Company’s business, including resource allocation and performance assessment. The Company’s CODM is the Chairman, Chief Executive Officer and President.

The Origination and Servicing segment generates revenue through servicing fee revenue, interest income and gain on originated and sold residential mortgage loans. The Investment Portfolio segment generates revenue from certain real estate securities, SFR properties, residential mortgage loans, consumer loans and certain ancillary and equity method investments primarily in the form of interest income and other investment portfolio revenues. The Residential Transitional Lending segment generates revenue through interest income related to the origination and management of a portfolio of short-term mortgage loans to fund the construction and development of, or investment in, residential properties. The Asset Management segment generates revenue through management and incentive fees based primarily on the assets under management (“AUM”) and performance of funds and accounts managed by the Company.


RITHM CAPITAL CORP. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
(dollars in tables in thousands, except share and per share data)

Income before income taxes is the measure of segment profit and loss that is determined in accordance with the measurement principles used in measuring the corresponding amounts in the consolidated financial statements and used by the CODM to evaluate segment results. It is also one of the factors considered in determining capital allocation among the segments, assessing performance for each segment and determining compensation for certain employees.

The following tables summarize segment financial information, including the Corporate category explained above, which in total reconciles to the same data for Rithm Capital on a consolidated basis:


	Origination and Servicing		Investment Portfolio		Residential Transitional Lending		Asset Management		Corporate Category		Total
Three Months Ended June 30, 2025
Servicing fee revenue, net and interest income from MSRs and MSR financing receivables	$	574,817	$	—	$	—	$	—	$	—	$	574,817
Change in fair value of MSRs and MSR financing receivables, net of economic hedges (includes realization of cash flows of $(176,680))	(155,005)		—		—		—		—		(155,005)
Servicing revenue, net	419,812		—		—		—		—		419,812
Interest income	309,940		82,143		75,405		7,841		3,126		478,455
Gain on originated residential mortgage loans, held-for-sale, net	168,438		1,260		—		—		—		169,698
Other revenues	27,439		26,627		—		—		—		54,066
Asset management revenues	—		—		—		95,008		—		95,008
Total Revenues	925,629		110,030		75,405		102,849		3,126		1,217,039
Interest expense and warehouse line fees	283,616		69,904		33,620		8,710		22,018		417,868
Other segment expenses(A)	146,989		22,162		5,234		26,487		14,909		215,781
Compensation and benefits	190,169		1,004		15,308		67,401		20,525		294,407
Depreciation and amortization	6,281		7,849		2,289		7,348		27		23,794
Total Operating Expenses	627,055		100,919		56,451		109,946		57,479		951,850
Realized and unrealized gains (losses), net	—		16,177		6,809		416		(661)		22,741
Other income (loss), net	6,435		8,841		(713)		5,124		(1,209)		18,478
Total Other Income (Loss)	6,435		25,018		6,096		5,540		(1,870)		41,219
Income (Loss) before Income Taxes	305,009		34,129		25,050		(1,557)		(56,223)		306,408
Income tax expense (benefit)	(11,647)		(1,507)		330		1,226		—		(11,598)
Net Income (Loss)	316,656		35,636		24,720		(2,783)		(56,223)		318,006
Noncontrolling interests in income of consolidated subsidiaries	981		1,533		—		655		—		3,169
Redeemable noncontrolling interests in income of consolidated subsidiaries	—		—		—		561		2,559		3,120
Net Income (Loss) Attributable to Rithm Capital Corp.	315,675		34,103		24,720		(3,999)		(58,782)		311,717

Dividends on preferred stock	—		—		—		—		27,818		27,818
Net Income (Loss) Attributable to Common Stockholders	$	315,675	$	34,103	$	24,720	$	(3,999)	$	(86,600)	$	283,899

(A)The Origination and Servicing segment’s other segment expenses primarily include expenses related to loan origination and servicing, information technology and property and maintenance. The Investment Portfolio segment’s other segment expenses primarily include expenses related to legal and professional services, loan servicing and property and maintenance. The Residential Transitional Lending segment’s other segment expenses primarily include expenses related to loan origination. The Asset Management segment’s other segment expenses primarily include expenses related to legal and professional services, information technology and occupancy.


RITHM CAPITAL CORP. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
(dollars in tables in thousands, except share and per share data)


	Origination and Servicing		Investment Portfolio		Residential Transitional Lending		Asset Management		Corporate Category		Total
Six Months Ended June 30, 2025
Servicing fee revenue, net and interest income from MSRs and MSR financing receivables	$	1,145,618	$	—	$	—	$	—	$	—	$	1,145,618
Change in fair value of MSRs and MSR financing receivables, net of economic hedges (includes realization of cash flows of $(323,571))	(488,383)		—		—		—		—		(488,383)
Servicing revenue, net	657,235		—		—		—		—		657,235
Interest income	602,501		153,933		141,913		17,254		4,114		919,715
Gain on originated residential mortgage loans, held-for-sale, net	319,932		9,555		—		—		—		329,487
Other revenues	53,177		51,662		—		—		—		104,839
Asset management revenues	—		—		—		182,680		—		182,680
Total Revenues	1,632,845		215,150		141,913		199,934		4,114		2,193,956
Interest expense and warehouse line fees	576,564		129,540		65,321		22,799		42,698		836,922
Other segment expenses(A)	290,756		45,154		10,065		58,078		24,706		428,759
Compensation and benefits	362,871		2,166		29,699		132,731		38,407		565,874
Depreciation and amortization	13,940		15,803		3,856		14,732		31		48,362
Total Operating Expenses	1,244,131		192,663		108,941		228,340		105,842		1,879,917
Realized and unrealized gains (losses), net	—		19,271		8,852		(5,864)		(661)		21,598
Other income (loss), net	6,317		10,330		(854)		12,962		(1,204)		27,551
Total Other Income (Loss)	6,317		29,601		7,998		7,098		(1,865)		49,149
Income (Loss) before Income Taxes	395,031		52,088		40,970		(21,308)		(103,593)		363,188
Income tax expense (benefit)	(68,341)		(10,019)		(760)		43,592		—		(35,528)
Net Income (Loss)	463,372		62,107		41,730		(64,900)		(103,593)		398,716
Noncontrolling interests in income of consolidated subsidiaries	1,335		2,261		—		659		—		4,255
Redeemable noncontrolling interests in income of consolidated subsidiaries	—		—		—		564		3,369		3,933
Net Income (Loss) Attributable to Rithm Capital Corp.	462,037		59,846		41,730		(66,123)		(106,962)		390,528
Change in redemption value of redeemable noncontrolling interests	—		—		—		—		15,611		15,611
Dividends on preferred stock	—		—		—		—		54,495		54,495
Net Income (Loss) Attributable to Common Stockholders	$	462,037	$	59,846	$	41,730	$	(66,123)	$	(177,068)	$	320,422


RITHM CAPITAL CORP. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
(dollars in tables in thousands, except share and per share data)


	Origination and Servicing		Investment Portfolio		Residential Transitional Lending		Asset Management		Corporate Category		Total
June 30, 2025
Investments	$	21,460,303	$	3,766,765	$	2,497,764	$	—	$	—	$	27,724,832
Cash and cash equivalents	1,044,115		24,943		67,078		111,218		353,594		1,600,948
Restricted cash	179,882		43,755		21,025		7,370		233,370		485,402
Other assets	5,895,066		2,376,924		156,817		1,073,222		3,308		9,505,337
Goodwill	29,468		—		55,731		48,633		—		133,832
Assets of consolidated CFEs(A)	—		2,645,929		989,398		1,230,275		—		4,865,602
Total Assets	$	28,608,834	$	8,858,316	$	3,787,813	$	2,470,718	$	590,272	$	44,315,953
Debt	$	18,685,960	$	4,589,739	$	2,073,586	$	471,585	$	1,256,262	$	27,077,132
Other liabilities	4,090,923		417,466		29,487		6,492		242,585		4,786,953
Liabilities of consolidated CFEs(A)	—		2,240,815		863,994		1,026,887		—		4,131,696
Total Liabilities	22,776,883		7,248,020		2,967,067		1,504,964		1,498,847		35,995,781
Redeemable Noncontrolling Interests of Consolidated Subsidiaries	—		—		—		27,594		233,369		260,963
Total Stockholders’ Equity	5,831,951		1,610,296		820,746		938,160		(1,141,944)		8,059,209
Noncontrolling interests in equity of consolidated subsidiaries	9,443		58,630		—		42,753		—		110,826
Stockholders’ Equity in Rithm Capital Corp.	$	5,822,508	$	1,551,666	$	820,746	$	895,407	$	(1,141,944)	$	7,948,383
Investments in Equity Method Investees	$	24,712	$	308,288	$	14,700	$	207,483	$	—	$	555,183

December 31, 2024
Total Assets	$	32,418,256	$	7,463,738	$	3,439,075	$	2,508,130	$	219,758	$	46,048,957

(A)Includes assets and liabilities of certain consolidated VIEs that meet the definition of CFEs. These assets can only be used to settle obligations and liabilities of such VIEs for which creditors do not have recourse to Rithm Capital Corp.


RITHM CAPITAL CORP. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
(dollars in tables in thousands, except share and per share data)


	Origination and Servicing		Investment Portfolio		Residential Transitional Lending		Asset Management		Corporate Category		Total
Three Months Ended June 30, 2024
Servicing fee revenue, net and interest income from MSRs and MSR financing receivables	$	498,978	$	—	$	—	$	—	$	—	$	498,978
Change in fair value of MSRs and MSR financing receivables, net of economic hedges (includes realization of cash flows of $(165,138))	(141,884)		—		—		—		—		(141,884)
Servicing revenue, net	357,094		—		—		—		—		357,094
Interest income	343,335		70,772		59,573		4,971		2		478,653
Gain (loss) on originated residential mortgage loans, held-for-sale, net	155,771		(2,030)		—		—		—		153,741
Other revenues	29,956		26,544		—		—		—		56,500
Asset management revenues	—		—		—		109,433		—		109,433
Total Revenues	886,156		95,286		59,573		114,404		2		1,155,421
Interest expense and warehouse line fees	344,729		62,079		29,106		8,333		21,697		465,944
Other segment expenses(A)	117,703		17,569		4,739		23,991		17,615		181,617
Compensation and benefits	187,987		344		9,113		51,982		21,022		270,448
Depreciation and amortization	16,536		7,305		1,567		7,449		—		32,857
Total Operating Expenses	666,955		87,297		44,525		91,755		60,334		950,866
Realized and unrealized gains, net	—		32,011		18,739		8,467		—		59,217
Other income (loss), net	27,336		(1,502)		(2,116)		2,675		—		26,393
Total Other Income	27,336		30,509		16,623		11,142		—		85,610
Income (Loss) before Income Taxes	246,537		38,498		31,671		33,791		(60,332)		290,165
Income tax expense	38,960		2,909		1,952		7,827		—		51,648
Net Income (Loss)	207,577		35,589		29,719		25,964		(60,332)		238,517
Noncontrolling interests in income of consolidated subsidiaries	1,016		1,110		—		835		—		2,961

Net Income (Loss) Attributable to Rithm Capital Corp.	206,561		34,479		29,719		25,129		(60,332)		235,556

Dividends on preferred stock	—		—		—		—		22,395		22,395
Net Income (Loss) Attributable to Common Stockholders	$	206,561	$	34,479	$	29,719	$	25,129	$	(82,727)	$	213,161


RITHM CAPITAL CORP. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
(dollars in tables in thousands, except share and per share data)


	Origination and Servicing		Investment Portfolio		Residential Transitional Lending		Asset Management		Corporate Category		Total
Six Months Ended June 30, 2024
Servicing fee revenue, net and interest income from MSRs and MSR financing receivables	$	968,869	$	—	$	—	$	—	$	—	$	968,869
Change in fair value of MSRs and MSR financing receivables, net of economic hedges (includes realization of cash flows of $(281,977))	(122,966)		—		—		—		—		(122,966)
Servicing revenue, net	845,903		—		—		—		—		845,903
Interest income	618,540		160,731		124,293		9,880		4		913,448
Gain on originated residential mortgage loans, held-for-sale, net	301,640		(5,441)		—		—		—		296,199
Other revenues	62,335		52,513		—		—		—		114,848
Asset management revenues	—		—		—		180,384		—		180,384
Total Revenues	1,828,418		207,803		124,293		190,264		4		2,350,782
Interest expense and warehouse line fees	633,585		132,471		61,520		15,954		32,241		875,771
Other segment expenses(A)	232,209		39,110		7,926		47,913		27,559		354,717
Compensation and benefits	345,968		912		20,416		115,094		23,836		506,226
Depreciation and amortization	31,166		15,047		3,134		15,462		—		64,809
Total Operating Expenses	1,242,928		187,540		92,996		194,423		83,636		1,801,523
Realized and unrealized gains, net	—		34,698		43,305		1,625		—		79,628
Other income (loss), net	27,361		9,977		(1,842)		6,644		37		42,177
Total Other Income	27,361		44,675		41,463		8,269		37		121,805
Income (Loss) before Income Taxes	612,851		64,938		72,760		4,110		(83,595)		671,064
Income tax expense	135,161		4,157		1,619		4,123		—		145,060
Net Income (Loss)	477,690		60,781		71,141		(13)		(83,595)		526,004
Noncontrolling interests in income of consolidated subsidiaries	1,071		3,147		—		2,195		—		6,413

Net Income (Loss) Attributable to Rithm Capital Corp.	476,619		57,634		71,141		(2,208)		(83,595)		519,591

Dividends on preferred stock	—		—		—		—		44,790		44,790
Net Income (Loss) Attributable to Common Stockholders	$	476,619	$	57,634	$	71,141	$	(2,208)	$	(128,385)	$	474,801


RITHM CAPITAL CORP. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
(dollars in tables in thousands, except share and per share data)

5. MORTGAGE SERVICING RIGHTS AND MSR FINANCING RECEIVABLES

The following table summarizes activity related to MSRs and MSR financing receivables:









Balance at December 31, 2024	$	10,321,671

Originations(A)	768,969
Sales	2,524
Change in Fair Value due to:
Realization of cash flows(B)	(326,043)
Change in valuation inputs and assumptions	(407,058)
Balance at June 30, 2025	$	10,360,063

(A)Represents MSRs retained on the sale of originated residential mortgage loans. Includes $72.7 million of MSRs capitalized through co-issue with third parties for the six months ended June 30, 2025.

(B)Based on the paydown of the underlying residential mortgage loans.

The following table summarizes components of servicing revenue, net:



	Three Months Ended June 30,				Six Months Ended June 30,
	2025		2024		2025		2024
Servicing fee revenue, net and interest income from MSRs and MSR financing receivables	$	518,371	$	453,989	$	1,045,181	$	884,103
Ancillary and other fees	56,446		44,989		100,437		84,766
Servicing fee revenue, net and fees	574,817		498,978		1,145,618		968,869
Change in Fair Value due to:
Realization of cash flows(A)	(176,680)		(165,138)		(323,571)		(281,977)
Change in valuation inputs and assumptions, net of realized gains (losses)(B)	(8,807)		97,240		(403,832)		298,254
Gains (losses) on MSR economic hedges	30,482		(73,986)		239,020		(139,243)
Servicing Revenue, Net	$	419,812	$	357,094	$	657,235	$	845,903

(A)Net of $1.3 million and $2.2 million of realization of cash flows related to MSR financing liability for the three months ended June 30, 2025 and 2024, respectively, and $2.5 million and $2.2 million for the six months ended June 30, 2025 and 2024, respectively (Note 12).

(B)Net of $8.0 million and $6.8 million of change in valuation inputs and assumptions related to MSR financing liability for the three months ended June 30, 2025 and 2024, respectively, and $3.2 million and $6.8 million for the six months ended June 30, 2025 and 2024, respectively (Note 12).

The following table summarizes MSRs and MSR financing receivables by type as of June 30, 2025 and December 31, 2024:


	UPB of Underlying Mortgages		Weighted Average Life (Years)(A)	Carrying Value(B)
June 30, 2025
GSE	$	380,862,890	6.5	$	6,301,384
Non-Agency	68,547,361		5.7	795,130
Ginnie Mae	143,313,085		6.3	3,263,549
Total / Weighted Average	$	592,723,336	6.4	$	10,360,063
December 31, 2024
GSE	$	383,014,320	6.5	$	6,413,199
Non-Agency	70,022,636		5.4	836,408
Ginnie Mae	137,177,395		6.4	3,072,064
Total / Weighted Average	$	590,214,351	6.4	$	10,321,671

(A)Represents the weighted average expected timing of the receipt of expected cash flows for this investment.

(B)Represents the fair value for this investment. As of June 30, 2025 and December 31, 2024, weighted average discount rates of 8.9% (range of 8.7% – 10.3%) were used to value Rithm Capital’s MSRs and MSR financing receivables.


RITHM CAPITAL CORP. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
(dollars in tables in thousands, except share and per share data)

Residential Mortgage Loans Subject to Repurchase

Rithm Capital, through Newrez, is an approved issuer of Ginnie Mae mortgage-backed securities (“MBS”) and originates and securitizes government-insured residential mortgage loans. As the issuer of the Ginnie Mae-guaranteed securitizations, Rithm Capital has the unilateral right to repurchase loans from the securitizations when they are delinquent for more than 90 days. Loans in forbearance that are three or more consecutive payments delinquent are included as delinquent loans permitted to be repurchased. As a result, once the delinquency criteria have been met and regardless of whether the repurchase option has been exercised, the Company recognizes delinquent loans as if they had been repurchased with a corresponding liability. As of June 30, 2025 and December 31, 2024, Rithm Capital reflected approximately $2.3 billion and $2.7 billion, respectively, in residential mortgage loans subject to repurchase and residential mortgage loan repurchase liability on its consolidated balance sheets. Rithm Capital may re-pool repurchased loans into new Ginnie Mae securitizations upon re-performance of the loan or otherwise sell to third-party investors. The Company does not change the accounting for MSRs related to previously sold loans upon re-recognizing loans eligible for repurchase. Rather, upon repurchase of a loan, the MSR is written off. As of June 30, 2025 and December 31, 2024, Rithm Capital holds approximately $0.4 billion and $0.5 billion, respectively, of such repurchased loans presented within residential mortgage loans, held-for-sale on the consolidated balance sheets.

Onity MSR Financing Receivable Transactions

Onity Group Inc. (formerly known as Ocwen Financial Corporation) (collectively with certain affiliates, “Onity”), and subsequently PHH Mortgage Corporation (“PHH”) (as successor through acquisition by Onity), and Rithm Capital entered into an agreement to transfer to Rithm Capital, Onity’s remaining interests in MSRs relating to loans with an aggregate unpaid principal balance (“UPB”) of approximately $110.0 billion and with respect to which Rithm Capital already held certain rights (“Rights to MSRs”). Additionally, Onity sold and transferred to Rithm Capital certain Rights to MSRs and other assets related to MSRs for loans with an UPB of approximately $86.8 billion, of which approximately $9.9 billion UPB, as of June 30, 2025, of underlying loans consents have not been received and all other conditions to transfer have not been met and, accordingly, are presented as MSR financing receivables within MSRs and MSR financing receivables, at fair value on the consolidated balance sheets.

Geographic Distributions

The table below summarizes the geographic distribution of the residential mortgage loans underlying the MSRs and MSR financing receivables:


	Percentage of Total Outstanding Unpaid Principal Amount


State Concentration	June 30, 2025		December 31, 2024
California	16.2	%	16.5	%
Florida	8.1	%	8.2	%
Texas	6.7	%	6.6	%
New York	5.7	%	5.7	%
Washington	5.1	%	5.2	%
New Jersey	4.0	%	4.1	%
Virginia	3.7	%	3.7	%
Maryland	3.4	%	3.4	%
Illinois	3.2	%	3.3	%
Georgia	3.1	%	3.1	%
Other U.S.	40.8	%	40.2	%
	100.0	%	100.0	%

Geographic concentrations of investments expose Rithm Capital to the risk of economic downturns within the relevant states. Any such downturn in a state where Rithm Capital holds significant investments could affect the underlying borrower’s ability to make mortgage payments and therefore could have a meaningful, negative impact on the MSRs.


RITHM CAPITAL CORP. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
(dollars in tables in thousands, except share and per share data)

Residential Mortgage Loan Servicing and Subservicing

Newrez performs servicing of residential mortgage loans for unaffiliated parties under servicing agreements. The servicing agreements do not meet the criteria to be recognized as a servicing right asset and, therefore, are not recognized in the consolidated balance sheets. The UPB of residential mortgage loans serviced for others as of June 30, 2025 and December 31, 2024 was $260.7 billion and $242.9 billion, respectively. Rithm Capital earned servicing revenue of $78.5 million and $51.0 million for the three months ended June 30, 2025 and 2024, respectively, and $154.5 million and $89.1 million for the six months ended June 30, 2025 and 2024, respectively, related to unaffiliated serviced loans presented within servicing revenue, net in the consolidated statements of operations.

In relation to certain owned MSRs, Rithm Capital engages unaffiliated licensed mortgage servicers as subservicers to perform the operational servicing duties, including recapture activities, in exchange for a subservicing fee, which is recognized as subservicing expense and presented in general and administrative in the consolidated statements of operations. As of June 30, 2025, PHH and Valon Mortgage, Inc. subserviced 5.8% and 3.8% of owned MSRs, respectively, with the remaining 90.4% of owned MSRs serviced by Newrez (Note 1).

Servicer Advances Receivable

In connection with Rithm Capital’s ownership of MSRs, the Company assumes the obligation to serve as a liquidity provider to initially fund servicer advances on the underlying pool of mortgages it services (Note 26). These servicer advances are recorded when advanced and are included in servicer advances receivable on the consolidated balance sheets.

The table below summarizes the type of advances included in the servicer advances receivable:




	June 30, 2025		December 31, 2024
Principal and interest advances	$	564,742	$	640,723
Escrow advances (taxes and insurance advances)	1,343,374		1,733,426
Foreclosure advances	935,467		950,092
Gross advance balance(A)(B)(C)	2,843,583		3,324,241
Reserves, impairment, unamortized discount, net of recovery accruals	(129,841)		(125,320)
Total Servicer Advances Receivable	$	2,713,742	$	3,198,921

(A)Includes $528.0 million and $673.7 million of servicer advances receivable related to GSE MSRs, respectively, recoverable either from the borrower or the Agencies.

(B)Includes $447.6 million and $529.3 million of servicer advances receivable related to Ginnie Mae MSRs, respectively, recoverable from either the borrower or Ginnie Mae. Expected losses for advances associated with Ginnie Mae loans in the MSR portfolio are considered in the MSR fair valuation through a non-reimbursable advance loss assumption.

(C)Expected losses for advances associated with loans in the MSR portfolio are considered in the MSR fair value through a non-reimbursable advance loss assumption.

Rithm Capital’s servicer advances receivable related to non-Agency MSRs generally have the highest reimbursement priority pursuant to the underlying servicing agreements (i.e., rank “top of the waterfall”), and Rithm Capital is generally entitled to repayment from the respective loan or REO liquidation proceeds before any interest or principal is paid on the notes issued by the trust. In most cases, advances in excess of the respective loan or REO liquidation proceeds may be recovered from pool-level proceeds. Furthermore, to the extent that advances are not recoverable by Rithm Capital as a result of the subservicer’s failure to comply with applicable requirements in the relevant servicing agreements, Rithm Capital has a contractual right to be reimbursed by the subservicer. For advances on loans that have been liquidated, sold, paid in full, modified or delinquent, the Company provisioned $120.0 million, or 4.2%, and $121.4 million, or 3.7%, for expected non-recovery of advances as of June 30, 2025 and December 31, 2024, respectively.

The following table summarizes servicer advances provision activity during the period:





Balance at December 31, 2024	$	121,396
Provision	21,856
Write-offs	(23,257)
Balance at June 30, 2025	$	119,995

See Note 18 regarding the financing of MSRs and servicer advances receivable.


RITHM CAPITAL CORP. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
(dollars in tables in thousands, except share and per share data)

6. GOVERNMENT AND GOVERNMENT-BACKED SECURITIES

Government and government-backed securities include Agency securities issued by the GSEs or Ginnie Mae and U.S. Treasury (“Treasury”) securities. The following table summarizes Agency and Treasury securities classified as available-for-sale (“AFS”) or measured under the Fair Value through Net Income (“FVO”) election:


	June 30, 2025														December 31, 2024
			Gross Unrealized							Weighted Average
	Outstanding Face Amount		Gains		Losses		Carrying Value(A)		Number of Securities	Coupon		Yield		Life (Years)(B)	Carrying Value(A)
Securities Designated as AFS:
Agency(C)(D)	$	67,150	$	—	$	—	$	60,066	1	3.5	%	3.5	%	11.3	$	60,135
Securities Measured at FVO:
Agency(C)	7,650,280		68,078		(8,257)		7,526,623		23	5.1	%	5.1	%	8.1	6,390,508
Treasury(C)	1,250,000		2,773		—		1,257,422		1	4.6	%	4.6	%	1.0	3,260,703
Total / Weighted Average	$	8,967,430	$	70,851	$	(8,257)	$	8,844,111	25	5.0	%	5.0	%	7.1	$	9,711,346

(A)Fair value is equal to the carrying value for all securities. See Note 19 regarding the fair value measurements.

(B)Based on the timing of expected principal reduction on the underlying assets.

(C)All fixed-rate as of June 30, 2025.

(D)Expected loss is realized through allowance for credit losses.

The following table summarizes Treasury securities classified as held-to-maturity (“HTM”):


	June 30, 2025												December 31, 2024
										Weighted Average
	Outstanding Face Amount		Amortized Cost / Carrying Value		Fair Value (A)		Unrecognized Gains /(Losses)		Number of Securities	Yield		Life (Years)	Amortized Cost / Carrying Value
Treasury Securities Designated as HTM:
Treasury	$	25,000	$	24,768	$	24,766	$	(2)	1	4.3	%	0.2	$	24,770

(A)See Note 19 regarding the fair value measurements.

The following table summarizes purchases and sales of Agency and Treasury securities:


	Three Months Ended June 30,								Six Months Ended June 30,
	2025				2024				2025				2024
	Treasury		Agency		Treasury(A)		Agency		Treasury(A)		Agency		Treasury(A)		Agency
Purchases:
Face	$	25,000	$	—	$	25,000	$	—	$	50,000	$	1,355,800	$	4,825,000	$	1,287,034
Purchase price	24,736		—		24,668		—		49,468		1,326,895		4,798,560		1,255,894

Sales:
Face	$	2,000,000	$	—	$	3,000,000	$	—	$	2,000,000	$	1,274	$	3,000,000	$	—
Amortized cost	2,002,734		—		2,976,259		—		2,002,734		1,349		2,976,259		—
Sale price	2,013,809		—		2,957,344		—		2,013,809		1,291		2,957,344		—
Gain (loss) on sale	11,075		—		(18,915)		—		11,075		(58)		(18,915)		—

(A)Excludes Treasury short sales. Refer to Note 17 for information regarding short sales.

As of June 30, 2025, Rithm Capital had no unsettled government and government-backed securities trades.

See Note 18 regarding the financing of government and government-backed securities.


RITHM CAPITAL CORP. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
(dollars in tables in thousands, except share and per share data)

7. RESIDENTIAL MORTGAGE LOANS

Rithm Capital accumulates its residential mortgage loan portfolio through originations, bulk acquisitions and the execution of call rights. Substantially all of the residential mortgage loan portfolio is serviced by Newrez.

Loans are accounted for based on Rithm Capital’s strategy and management’s intent and on whether the loan was credit-impaired at the date of acquisition. As of June 30, 2025, Rithm Capital accounts for loans based on the following categories:

•Loans held-for-investment (“HFI”), at fair value

•Loans held-for-sale (“HFS”), at lower of cost or fair value

•Loans HFS, at fair value

•Investments of consolidated CFEs represent mortgage loans held by certain mortgage securitization trusts where Rithm Capital is determined to be a primary beneficiary and, as a result, consolidates such trusts. The assets are measured based on the fair value of the more observable liabilities of such trusts under the CFE election. The obligations and liabilities of CFEs may only be satisfied with the assets of the respective consolidated CFEs, and creditors of the CFE do not have recourse to Rithm Capital Corp.

The following table summarizes residential mortgage loans outstanding by loan type:




	June 30, 2025								December 31, 2024
	Outstanding Face Amount		Carrying Value		Loan Count	Weighted Average Yield		Weighted Average Life (Years)(A)	Carrying Value
Investments of consolidated CFEs(B)	$	2,769,184	$	2,637,931	7,299	5.7	%	25.3	$	2,791,027
Residential mortgage loans, HFI, at fair value	371,253		343,333		7,017	7.9	%	4.7	361,890

Residential Mortgage Loans, HFS:
Acquired performing loans(C)	52,362		47,792		1,575	6.8	%	4.3	51,011
Acquired non-performing loans(D)	16,163		13,174		194	10.5	%	4.2	15,659
Total Residential Mortgage Loans, HFS	$	68,525	$	60,966	1,769	7.7	%	4.3	$	66,670

Residential Mortgage Loans, HFS, at Fair Value:
Acquired performing loans(C)(E)	682,059		682,947		2,075	6.2	%	10.7	408,421
Acquired non-performing loans(D)(E)	246,049		222,535		1,121	5.1	%	27.7	270,879
Originated loans	3,121,871		3,220,853		10,911	6.8	%	29.0	3,628,271
Total Residential Mortgage Loans, HFS, at Fair Value	$	4,049,979	$	4,126,335	14,107	6.6	%	25.8	$	4,307,571

(A)For loans classified as Level 3 in the fair value hierarchy, the weighted average life is based on the expected timing of the receipt of cash flows. For Level 2 loans, the weighted average life is based on the contractual term of the loan.

(B)Residential mortgage loans of consolidated CFEs are classified as Level 2 in the fair value hierarchy and valued based on the fair value of the more observable financial liabilities under the CFE election.

(C)Performing loans are generally placed on non-accrual status when principal or interest is 90 days or more past due.

(D)As of June 30, 2025, Rithm Capital has placed non-performing loans, HFS on non-accrual status, except as described in (E) below.

(E)Includes $162.3 million and $235.1 million UPB of Ginnie Mae early buyout options performing and non-performing loans, respectively, on accrual status as contractual cash flows are guaranteed by the FHA as of June 30, 2025.

See Note 18 regarding the financing of residential mortgage loans.

The following table summarizes the past due status and difference between the aggregate UPB and the aggregate carrying value of residential mortgage loans, HFS and residential mortgage loans, HFI, at fair value on the consolidated balance sheets:




	June 30, 2025						December 31, 2024
Days Past Due	UPB		Carrying Value		Carrying Value Over (Under) UPB		UPB		Carrying Value		Carrying Value Over (Under) UPB
Current	$	4,176,033	$	4,246,321	$	70,288	$	4,377,435	$	4,400,113	$	22,678
90+	313,724		284,313		(29,411)		369,118		336,018		(33,100)
Total	$	4,489,757	$	4,530,634	$	40,877	$	4,746,553	$	4,736,131	$	(10,422)


RITHM CAPITAL CORP. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
(dollars in tables in thousands, except share and per share data)

The following table summarizes the activity of residential mortgage loans, HFS and residential mortgage loans, HFI, at fair value on the consolidated balance sheets:


	Loans HFI, at Fair Value		Loans HFS, at Lower of Cost or Fair Value		Loans HFS, at Fair Value		Total













Balance at December 31, 2024	$	361,890	$	66,670	$	4,307,571	$	4,736,131
Originations	—		—		27,450,957		27,450,957
Sales	—		—		(29,550,058)		(29,550,058)
Purchases/additional fundings	—		—		1,952,393		1,952,393
Proceeds from repayments	(22,140)		(5,502)		(61,482)		(89,124)
Transfer of loans from (to) other assets(A)	—		(687)		19,464		18,777
Transfer of loans to REO	(1,418)		(345)		(457)		(2,220)


Valuation reversal on loans	—		830		—		830
Fair Value Adjustments due to:
Changes in instrument-specific credit risk	(1,304)		—		(4,204)		(5,508)
Other factors	6,305		—		12,151		18,456
Balance at June 30, 2025	$	343,333	$	60,966	$	4,126,335	$	4,530,634

(A)Includes receivable modifications resulting in transfers between other assets and residential mortgage loans.

Gain on Originated Residential Mortgage Loans, HFS, Net

Newrez originates conventional, government-insured and nonconforming residential mortgage loans for sale and securitization. In connection with the sale or securitization of loans to the GSEs or mortgage investors, Rithm Capital recognizes gain on sale within gain on originated residential mortgage loans, HFS, net in the consolidated statements of operations. See Note 20 for detail on Rithm Capital’s continuing involvement in residential mortgage loan securitizations.

The following table summarizes the components of gain on originated residential mortgage loans, HFS, net:


	Three Months Ended June 30,				Six Months Ended June 30,
	2025		2024		2025		2024
Loss on residential mortgage loans originated and sold, net(A)	$	(257,202)	$	(217,515)	$	(416,852)	$	(341,629)
Gain (loss) on settlement of residential mortgage loan origination derivative instruments(B)	24,980		10,077		37,769		(5,447)
MSRs retained on transfer of residential mortgage loans(C)	377,074		364,305		696,222		580,244
Other(D)	14,394		5,114		36,376		11,608
Realized gain on sale of originated residential mortgage loans, net	159,246		161,981		353,515		244,776
Change in fair value of residential mortgage loans	25,072		(8,907)		37,671		5,361
Change in fair value of interest rate lock commitments (Note 17)	16,135		(14,817)		39,228		(7,332)
Change in fair value of derivative instruments (Note 17)	(30,755)		15,484		(100,927)		53,394
Gain on Originated Residential Mortgage Loans, HFS, Net	$	169,698	$	153,741	$	329,487	$	296,199

(A)Includes residential mortgage loan origination fees of $248.3 million and $233.8 million in the three months ended June 30, 2025 and 2024, respectively, and $445.9 million and $411.5 million in the six months ended June 30, 2025 and 2024, respectively. Includes gain on residential mortgage loan securitizations accounted for as sales of $9.6 million and no gain or loss for the three months ended June 30, 2025 and 2024, respectively, and $25.0 million and no gain or loss for the six months ended June 30, 2025 and 2024, respectively.

(B)Represents settlement of forward securities delivery commitments utilized as an economic hedge for mortgage loans not included within forward loan sale commitments.

(C)Represents the initial fair value of the capitalized MSRs upon loan sales with servicing retained.

(D)Includes fees for services associated with the residential mortgage loan origination process.


RITHM CAPITAL CORP. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
(dollars in tables in thousands, except share and per share data)

8. CONSUMER LOANS

Rithm Capital’s consumer loan portfolio consists of (i) consumer loans acquired from Goldman Sachs Bank USA (the “Marcus loans” or “Marcus”) and (ii) consumer loans purchased from SpringCastle (the “SpringCastle loans” or “SpringCastle”) initially in a co-investment with an unaffiliated entity. On June 28, 2024, Rithm Capital acquired the remaining 46.5% interest in the SpringCastle loans from the co-investor for a total purchase price of $22.0 million. Following the acquisition, Rithm Capital holds a 100% interest in the SpringCastle loans.

The Marcus portfolio includes unsecured fixed-rate closed-end installment loans, and the SpringCastle portfolio includes open-end personal unsecured loans and personal homeowner loans. The Marcus loans are serviced by Systems and Services Technologies, Inc. and our internal loan servicing business at Newrez, and the SpringCastle loans are serviced by OneMain Holdings Inc.

The following table summarizes characteristics of the consumer loan portfolio classified as HFI and measured at fair value under the fair value option election:


	UPB		Carrying Value		Weighted Average Coupon		Weighted Average Expected Life (Years)
June 30, 2025
SpringCastle	$	181,962	$	190,138	18.0	%	3.7
Marcus	398,339		275,093		11.1	%	0.8
Total Consumer Loans	$	580,301	$	465,231	13.3	%	1.7
December 31, 2024
SpringCastle	$	208,306	$	219,308	18.1	%	3.8
Marcus	559,317		446,257		11.0	%	1.0
Total Consumer Loans	$	767,623	$	665,565	12.9	%	1.8

See Note 18 regarding the financing of consumer loans.

The following table summarizes the past due status and difference between the aggregate UPB and the aggregate carrying value of consumer loans:




	June 30, 2025						December 31, 2024
Days Past Due	UPB		Carrying Value(A)		Carrying Value Over (Under) UPB		UPB		Carrying Value(A)		Carrying Value Over (Under) UPB
SpringCastle:
Current	$	178,173	$	186,197	$	8,024	$	203,923	$	214,746	$	10,823
90+	3,789		3,941		152		4,383		4,562		179
Total SpringCastle	181,962		190,138		8,176		208,306		219,308		11,002

Marcus:
Current	$	259,947	$	260,727	$	780	$	438,712	$	438,712	$	—
90+	138,392		14,366		(124,026)		120,605		7,545		(113,060)
Total Marcus	398,339		275,093		(123,246)		559,317		446,257		(113,060)

	$	580,301	$	465,231	$	(115,070)	$	767,623	$	665,565	$	(102,058)

(A)Consumer loans are carried at fair value. See Note 19 regarding fair value measurements.


RITHM CAPITAL CORP. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
(dollars in tables in thousands, except share and per share data)

The following table summarizes the activity for consumer loans for the period:









Balance at December 31, 2024	$	665,565
Additional fundings(A)	11,669
Proceeds from repayments	(198,992)
Accretion of loan discount and premium amortization, net	6,700
Fair Value Adjustments due to:
Changes in instrument-specific credit risk	(6,388)
Other factors	(13,323)
Balance at June 30, 2025	$	465,231

(A)Represents draws on consumer loans with revolving privileges.

9. SINGLE-FAMILY RENTAL PROPERTIES

Rithm Capital invests in its SFR portfolio by acquiring and maintaining a geographically diversified portfolio of high-quality single-family homes and leasing them to high-quality residents.

SFR properties HFI are carried at cost less accumulated depreciation and impairment. SFR properties HFS are managed for near term sale and disposition and are measured at the lower of carrying value or fair value less estimated cost to sell. SFR properties HFI and HFS are presented within single-family rental properties on the consolidated balance sheets.

The following table summarizes the net carrying value of investments in SFR properties:




	June 30, 2025		December 31, 2024
Land	$	188,515	$	191,992
Building	754,078		767,966
Capital improvements	154,833		150,811
Total gross investment in SFR properties	1,097,426		1,110,769
Accumulated depreciation	(95,165)		(82,474)
Investment in SFR Properties, Net	$	1,002,261	$	1,028,295

Depreciation expense for the three months ended June 30, 2025 and 2024 totaled $7.3 million and $7.3 million, respectively, and $14.7 million and $15.0 million for the six months ended June 30, 2025 and 2024, respectively. Depreciation expense is included in general and administrative in the consolidated statements of operations.

As of June 30, 2025 and December 31, 2024, the carrying amount of the SFR properties includes capitalized acquisition costs of $6.9 million and $7.0 million, respectively.

The following table summarizes the activity for the period related to the net carrying value of investments in SFR properties:


	SFR Properties HFI		SFR Properties HFS		Total





Balance at December 31, 2024	$	989,002	$	39,293	$	1,028,295
Acquisitions and capital improvements	9,218		—		9,218
Transfers to (from) HFS/HFI	10,864		(10,864)		—
Dispositions	—		(20,537)		(20,537)
Depreciation expense	(14,715)		—		(14,715)
Balance at June 30, 2025	$	994,369	$	7,892	$	1,002,261

Rithm Capital generally rents its SFR properties under non-cancelable lease agreements with a term of one to two years.


RITHM CAPITAL CORP. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
(dollars in tables in thousands, except share and per share data)

The following table summarizes rental revenue and other variable revenue included in other revenues and other income (loss), net, respectively, on the consolidated statements of operations based on the specific lease terms for the period:


	Three Months Ended June 30,				Six Months Ended June 30,
	2025		2024		2025		2024
Rental revenue	$	19,492	$	18,920	$	38,895	$	37,869
Other variable revenue	2,555		1,066		4,885		1,659
Total Revenue	$	22,047	$	19,986	$	43,780	$	39,528

The following table summarizes the future minimum rental revenues under existing leases on SFR properties:


2026	$	30,432
2027 and thereafter	25,227
Total	$	55,659

The following table summarizes the activity for the period of the SFR portfolio by properties:


	SFR Properties HFI	SFR Properties HFS	Total




Balance at December 31, 2024	3,891	158	4,049

Transfer to (from) HFS/HFI	45	(45)	—
Disposition of SFR properties	—	(67)	(67)
Balance at June 30, 2025	3,936	46	3,982

See Note 18 regarding the financing of SFR properties.

10. RESIDENTIAL TRANSITION LOANS

Genesis specializes in originating and managing a portfolio of primarily short-term mortgage loans to fund the construction and development of, or investment in, residential properties.

The following table summarizes residential transition loans, at fair value and residential transition loans held by consolidated CFEs by loan type:


	Residential Transition Loans - Carrying Value(A)		Residential Transition Loans of Consolidated CFEs - Carrying Value(A)		Total Carrying Value		% of Portfolio		Loan Count	% of Portfolio		Weighted Average Yield		Weighted Average Original Life (Months)	Weighted Average Committed Loan Balance to Value(B)
June 30, 2025
Construction	$	1,072,844	$	449,253	$	1,522,097	44.0	%	528	34.4	%	11.4	%	18.9	72.2% / 61.9%
Bridge	1,137,869		367,342		1,505,211		43.4	%	542	35.4	%	9.8	%	25.0	65.9%
Renovation	287,051		150,866		437,917		12.6	%	463	30.2	%	10.0	%	15.0	83.4% / 68.6%
	$	2,497,764	$	967,461	$	3,465,225	100.0	%	1,533	100.0	%	10.5	%	20.7	N/A

December 31, 2024
Construction	$	935,142	$	492,071	$	1,427,213	45.4	%	490	31.9	%	11.4	%	20.0	72.7% / 62.2%
Bridge	972,443		363,946		1,336,389		42.6	%	600	39.1	%	10.0	%	23.9	66.6%
Renovation	270,490		106,175		376,665		12.0	%	445	29.0	%	10.5	%	12.8	82.8% / 68.2%
	$	2,178,075	$	962,192	$	3,140,267	100.0	%	1,535	100.0	%	10.7	%	20.4	N/A

(A)Residential transition loans are carried at fair value under the FVO election. Residential transition loans held by consolidated CFEs are classified as Level 3 and valued based on the more observable financial liabilities of consolidated CFEs. See Note 19 regarding fair value measurements.

(B)Weighted by commitment loan-to-value (“LTV”) for bridge loans, loan-to-cost and loan-to-after-repair-value for construction and renovation loans.


RITHM CAPITAL CORP. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
(dollars in tables in thousands, except share and per share data)

The following table summarizes the activity of loans included in residential transition loans, at fair value on the consolidated balance sheets:













Balance at December 31, 2024	$	2,178,075

Initial loan advances	1,172,259
Construction holdbacks and draws	536,868
Repayments and sales	(766,439)
Purchased loans discount amortization	32
Transfer of loans to REO	(5,565)
Transfers to assets of consolidated CFEs	(617,203)
Fair Value Adjustments due to:
Changes in instrument-specific credit risk	(15,818)
Other factors	15,555
Balance at June 30, 2025	$	2,497,764

The Company is subject to credit risk in connection with its investments in mortgage loans. The two primary components of credit risk are default risk, which is the risk that a borrower fails to make scheduled principal and interest payments, and severity risk, which is the risk of loss upon a borrower’s default on a mortgage loan or other secured or unsecured loan. Severity risk includes the risk of loss of value of the property or other asset, if any, securing the loan, as well as the risk of loss associated with taking over the property or other asset, if any, including foreclosure costs.

The following table summarizes the past due status and difference between the aggregate UPB and the aggregate carrying value of loans included in residential transition loans, at fair value on the consolidated balance sheets:




	June 30, 2025						December 31, 2024
Days Past Due	UPB		Carrying Value		Carrying Value Over (Under) UPB		UPB		Carrying Value		Carrying Value Over (Under) UPB
Current	$	2,446,520	$	2,454,473	$	7,953	$	2,117,479	$	2,128,802	$	11,323
90+	46,423		43,291		(3,132)		55,234		49,273		(5,961)
Total	$	2,492,943	$	2,497,764	$	4,821	$	2,172,713	$	2,178,075	$	5,362

See Note 18 regarding the financing of residential transition loans.

11. CASH AND CASH EQUIVALENTS AND RESTRICTED CASH

Rithm Capital considers all highly liquid short-term investments with maturities of 90 days or less when purchased to be cash equivalents. Substantially all amounts on deposit with major financial institutions exceed insured limits.

Restricted cash consists of cash collateral pledges related to secured financing and securitizations, lease obligations and cash proceeds held in a trust account from the IPO of the SPAC that can only be used for purposes of completing an initial business combination or redemption of the SPAC’s Class A ordinary shares as set forth in the SPAC trust agreement.

The following table provides a reconciliation of cash and cash equivalents and restricted cash reported on Rithm Capital’s consolidated balance sheets to the total of the same amounts shown in the consolidated statements of cash flows:




	June 30, 2025		December 31, 2024
Cash and cash equivalents	$	1,600,948	$	1,458,743
Restricted cash	485,402		308,443
Restricted cash of consolidated CFEs(A)	64,534		150,623
Total Cash and Cash Equivalents and Restricted Cash	$	2,150,884	$	1,917,809

(A) Presented within investments, at fair value and other assets on the consolidated balance sheets.


RITHM CAPITAL CORP. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
(dollars in tables in thousands, except share and per share data)

The following table summarizes restricted cash balances by reporting segment including corporate category:




	June 30, 2025		December 31, 2024
Investment Portfolio(A)	$	51,753	$	66,419
Origination and Servicing	179,882		207,724
Residential Transitional Lending(A)	29,329		40,727
Asset Management(A)	55,602		144,196
Corporate Category(B)	233,370		—
Total Restricted Cash	$	549,936	$	459,066

(A)Includes restricted cash related to consolidated CFEs presented within investments, at fair value and other assets on the consolidated balance sheets.

(B)Restricted cash in the corporate category relates to the cash held in a trust account related to the Company’s consolidated SPAC.


RITHM CAPITAL CORP. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
(dollars in tables in thousands, except share and per share data)

12. OTHER ASSETS AND LIABILITIES

Other assets and accrued expenses and other liabilities — other assets and accrued expenses and other liabilities on the consolidated balance sheets consist of the following:


	Other Assets					Accrued Expenses and Other Liabilities


	June 30, 2025		December 31, 2024			June 30, 2025		December 31, 2024
CLOs, at fair value	$	337,392	$	242,227	Accounts payable	$	148,054	$	133,037
Derivative and hedging assets (Note 17)	58,829		75,147		Accrued compensation and benefits	173,940		322,957
Due from related parties	42,549		35,198		Net deferred tax liability	732,222		786,141
Equity investments(A)	675,164		502,610		Derivative liabilities (Note 17)	95,339		52,610
Excess MSRs, at fair value (Note 13)	345,677		369,162		Escheat payable	187,404		187,830
Goodwill (Note 15)	133,832		133,832		MSR financing liability, at fair value	60,940		101,088
Income and fees receivable	74,658		208,672		Interest payable	199,244		260,931
Intangible assets (Note 15)	306,682		331,949		Lease liability (Note 16)	159,407		160,437
Loans receivable, at fair value(B)	8,038		31,580		Notes receivable financing(E)	376,143		371,788
Margin receivable, net(C)	220,697		414,404		Unearned income and fees	14,235		17,280
Non-Agency securities, at fair value	739,143		552,797		Other liabilities	214,458		236,672
Notes receivable, at fair value(D)	442,893		393,786			$	2,361,386	$	2,630,771
Operating lease ROU assets (Note 16)	103,646		99,224
Other receivables	172,324		178,651
Prepaid expenses	61,264		59,198
Principal and interest receivable	127,779		181,271
Property and equipment	75,802		70,495
REO	23,680		27,898
Servicer advance investments, at fair value (Note 14)	312,986		339,646
Servicing fee receivables	174,598		106,228
Warrants, at fair value	11,840		9,316
Other assets	211,354		200,124
	$	4,660,827	$	4,563,415

(A)Represents equity investments in (i) certain real estate redevelopment projects, (ii) various real estate services operating companies, (iii) funds managed by Sculptor, (iv) Credit Risk Transfer LLC (as defined in Note 19) that holds exposure in residential mortgage loan warehouse lines (measured at fair value under the FVO election), (v) Rithm Property Trust common and preferred securities, (vi) Newrez Joint Ventures (as defined in Note 20), (vii) APM and (viii) an energy fund managed by Rithm.

(B)Represents a loan made pursuant to a senior subordinated credit agreement to an entity affiliated with funds managed by an affiliate of the Company’s former external manager, FIG LLC (the “Former Manager”), an affiliate of Fortress Investment Group LLC. The loan is measured at fair value under the FVO election.

(C)Represents collateral posted as a result of changes in fair value of Rithm Capital’s (i) government and government-backed securities securing its secured financing agreements and (ii) derivative instruments.

(D)Represents notes receivable secured by commercial properties. The notes are measured at fair value under the FVO election.

(E)During the second quarter of 2024, the Company transferred an investment in a note receivable with a fair value of $365.0 million, subject to a repo financing of $323.5 million, from a third party to a nonconsolidated joint venture for cash consideration of $48.0 million. The transaction did not meet sale accounting under ASC 860 and, as a result, was treated as a secured borrowing for accounting purposes for which the Company elected the FVO and is included in accrued expenses and other liabilities in the consolidated balance sheets. The amount presented within notes receivable financing is comprised of the repo financing and the non-recourse liability in a secured borrowing. The Company continues to reflect the transferred note in other assets in the consolidated balance sheets, at fair value.


RITHM CAPITAL CORP. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
(dollars in tables in thousands, except share and per share data)

REO — REO assets are individual properties acquired by Rithm Capital through foreclosure or deed-in-lieu of foreclosure as a result of borrower default. REO assets are measured at the lower of cost or fair value, with valuation provision recorded in other income (loss), net in the consolidated statements of operations. REO assets are managed for prompt sale and disposition.

The following table presents activity for the period related to the carrying value of investments in REO:







Balance at December 31, 2024	$	27,898

Property received in satisfaction of loan	7,520
Sales(A)	(12,410)
Valuation reversal	672
Balance at June 30, 2025	$	23,680

(A)Recognized when control of the property has transferred to the buyer.

As of June 30, 2025, Rithm Capital had residential mortgage loans and residential transition loans that were in the process of foreclosure with UPBs of $38.9 million and $11.9 million, respectively.

Notes and Loans Receivable — The following table summarizes the activity for the period for notes and loans receivable:


	Notes Receivable		Loans Receivable		Total







Balance at December 31, 2024	$	393,786	$	31,580	$	425,366
Fundings	43,096		—		43,096
Payment in kind	2,145		1,458		3,603
Proceeds from repayments	—		(25,000)		(25,000)
Fair Value Adjustments due to:

Other factors(A)	3,866		—		3,866
Balance at June 30, 2025	$	442,893	$	8,038	$	450,931

(A)There were no fair value adjustments due to changes in instrument-specific credit risk in the current period.

The following table summarizes the past due status and difference between the aggregate UPB and the aggregate carrying value of notes and loans receivable:




	June 30, 2025						December 31, 2024
Days Past Due	UPB		Carrying Value(A)		Carrying Value Over (Under) UPB		UPB		Carrying Value(A)		Carrying Value Over (Under) UPB
Current	$	540,555	$	450,931	$	(89,624)	$	518,856	$	425,366	$	(93,490)
90+	—		—		—		—		—		—
Total	$	540,555	$	450,931	$	(89,624)	$	518,856	$	425,366	$	(93,490)

(A)Notes and loans receivable are carried at fair value. See Note 19 regarding fair value measurements.

13. EXCESS MORTGAGE SERVICING RIGHTS

Excess MSR assets include Rithm Capital’s ownership of Excess MSRs, and associated recapture agreements, acquired from and serviced by Mr. Cooper Group Inc. (“Mr. Cooper”). Prior to June 20, 2024, Rithm Capital owned certain pools of Excess MSRs directly and certain pools through a joint venture with the Former Manager (the “Fortress Excess MSR JV”).

On June 20, 2024, Rithm Capital, together with certain Sculptor nonconsolidated funds, acquired an Excess MSR portfolio from the Former Manager (including the Former Manager’s ownership in the Fortress Excess MSR JV) for approximately $124.0 million. A new joint venture with such Sculptor nonconsolidated funds was formed for the acquisition. Rithm Capital owns an 80.0% interest and manages the joint venture, and as a result, consolidates this joint venture. Following the acquisition from the Former Manager, all of Rithm Capital’s ownership in pools of Excess MSRs is consolidated and is presented in other assets at fair value on its consolidated balance sheets. See Note 20 for noncontrolling interests related to these Excess MSRs.

Mr. Cooper, as servicer, performs all of the servicing and advancing functions on the Company’s Excess MSR assets, retains the ancillary income and assumes servicing obligations and liabilities as the servicer of the underlying loans in the portfolio.


RITHM CAPITAL CORP. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
(dollars in tables in thousands, except share and per share data)

As part of the Computershare Acquisition (Note 3), Rithm Capital acquired MSRs owned by SLS underlying certain Excess MSRs owned by Rithm Capital. Accordingly, those Excess MSRs have been reclassified to full MSRs on Rithm Capital’s consolidated balance sheets.

Investments in Excess MSRs

The following table presents activity related to the investments in Excess MSRs measured at fair value:














Balance at December 31, 2024	$	369,162

Interest income	13,299

Proceeds from repayments	(35,134)
Proceeds from sales	(45)
Change in fair value	(1,605)
Balance at June 30, 2025	$	345,677

The following summarizes Rithm Capital’s investments in Excess MSRs:


	June 30, 2025									December 31, 2024
	UPB of Underlying Mortgages		Interest in Excess MSR		Weighted Average Life (Years)(A)	Amortized Cost Basis		Carrying Value(B)		Carrying Value(B)
			Rithm Capital(C)(D)	Mr. Cooper
Total	$	50,719,526	65.0% – 80.0% (68.6%)	20.0% – 35.0% (31.4%)	5.9	$	300,082	$	345,677	$	369,162

(A)Represents the weighted average expected timing of the receipt of expected cash flows for this investment.

(B)Carrying value represents the fair value of the pools and recapture agreements, as applicable.

(C)Amounts in parentheses represent weighted averages.

(D)Rithm Capital also invested in related servicer advance investments, including the base fee component of the related MSR as of June 30, 2025 and December 31, 2024 (Note 14) on $12.6 billion and $13.3 billion UPB, respectively, underlying these Excess MSRs.

The following summarizes the changes in fair value of Excess MSRs investments:


	Three Months Ended June 30,				Six Months Ended June 30,
	2025		2024		2025		2024
Original and recaptured pools	$	(690)	$	21,352	$	(1,605)	$	19,430

As of June 30, 2025 and December 31, 2024, weighted average discount rates of 8.4% were used to value Rithm Capital’s investments in Excess MSRs.

14. SERVICER ADVANCE INVESTMENTS

Servicer advance investments consist of arrangements to fund existing outstanding servicer advances and the requirement to purchase all future servicer advances made with respect to a specified pool of residential mortgage loans in exchange for the base fee component of the related MSR. Rithm Capital elected to record its servicer advance investments, including the right to the base fee component of the related MSRs, at fair value under the FVO election to provide users of the financial statements with better information regarding the effects of market factors. The Company’s servicer advance investments are presented in other assets on the consolidated balance sheets.

As part of the Computershare Acquisition (Note 3), Rithm Capital acquired certain MSRs owned by SLS underlying a certain servicer advance investment and, therefore, reclassified the servicer advance investment to MSRs and MSR financing receivables, at fair value and servicer advances receivable on its consolidated balance sheets.

Mr. Cooper also performs all of the servicing and advancing functions on the Company’s remaining servicer advance investments. See Note 13 for further details.

Rithm Capital owns its interest in servicer advance investments through a consolidated subsidiary, Advance Purchaser LLC (“Advance Purchaser”), in which it has an ownership interest of 89.3%. As of June 30, 2025, the noncontrolling third-party co-


RITHM CAPITAL CORP. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
(dollars in tables in thousands, except share and per share data)

investor and Rithm Capital have funded all their capital commitments. Advance Purchaser may recall $71.8 million and $601.0 million of capital distributed to the third-party co-investor and Rithm Capital, respectively. Neither the third-party co-investor nor Rithm Capital is obligated to fund amounts in excess of their respective capital commitments, regardless of the capital requirements of Advance Purchaser.

The following table summarizes servicer advance investments, including the right to the base fee component of the related MSRs:


	Amortized Cost Basis		Carrying Value(A)		Weighted Average Discount Rate		Weighted Average Yield		Weighted Average Life (Years)(B)
June 30, 2025
Servicer advance investments	$	302,338	$	312,986	6.5	%	6.8	%	7.6
December 31, 2024
Servicer advance investments	$	327,471	$	339,646	6.5	%	6.9	%	7.6

(A)Represents the fair value of the servicer advance investments, including the base fee component of the related MSRs.

(B)Represents the weighted average expected timing of the receipt of expected net cash flows for this investment.

The following table provides additional information regarding the servicer advance investments and related financing:


	UPB of Underlying Residential Mortgage Loans		Outstanding Servicer Advances		Servicer Advances to UPB of Underlying Residential Mortgage Loans		Face Amount of Secured Notes and Bonds Payable		LTV(A)				Cost of Funds(C)
									Gross		Net(B)		Gross		Net
June 30, 2025
Servicer advance investments(D)	$	12,580,445	$	276,702	2.2	%	$	240,656	84.7	%	82.7	%	6.2	%	5.9	%
December 31, 2024
Servicer advance investments(D)	$	13,316,828	$	298,945	2.2	%	$	258,183	85.0	%	82.9	%	6.3	%	5.9	%

(A)Based on outstanding servicer advances, excluding purchased but unsettled servicer advances.

(B)Ratio of face amount of borrowings to par amount of servicer advance collateral, net of any general reserve.

(C)Annualized measure of the cost associated with borrowings. Gross cost of funds primarily includes interest expense and facility fees. Net cost of funds excludes facility fees.

(D)The following table summarizes the types of advances included in servicer advance investments:




	June 30, 2025		December 31, 2024
Principal and interest advances	$	48,849	$	51,135
Escrow advances (taxes and insurance advances)	123,599		137,072
Foreclosure advances	104,254		110,738
Total	$	276,702	$	298,945

15. GOODWILL AND INTANGIBLE ASSETS

As a result of acquisitions, the Company recognized intangible assets in the form of management contracts, customer relationships, purchased technology, trademarks and trade names. The Company also recognized goodwill on certain acquisitions. Goodwill and intangible assets are presented within other assets on the consolidated balance sheets.

The following table summarizes the carrying value of goodwill by reportable segment:


	Origination and Servicing		Residential Transitional Lending		Asset Management		Total




Balance at December 31, 2024	$	29,468	$	55,731	$	48,633	$	133,832

Impairment loss	—		—		—		—

Balance at June 30, 2025	$	29,468	$	55,731	$	48,633	$	133,832


RITHM CAPITAL CORP. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
(dollars in tables in thousands, except share and per share data)

The following table summarizes the acquired identifiable intangible assets:




	Estimated Useful Lives (Years)	June 30, 2025		December 31, 2024
Gross Intangible Assets:
Management contracts	10	$	275,000	$	275,000
Customer relationships	2 to 9	79,753		79,753
Purchased technology	3 to 7	110,035		105,567
Trademarks / Trade names(A)	1 to 5	10,259		10,259
Licenses	Indefinite	21,365		21,365
		496,412		491,944
Accumulated Amortization:
Management contracts		44,566		30,940
Customer relationships		35,388		25,773
Purchased technology		103,163		97,259
Trademarks / Trade names		6,613		6,023
		189,730		159,995
Intangible Assets, Net:
Management contracts		230,434		244,060
Customer relationships		44,365		53,980
Purchased technology		6,872		8,308
Trademarks / Trade names(A)		3,646		4,236
Licenses		21,365		21,365
		$	306,682	$	331,949

(A)Includes indefinite-lived intangible assets of $1.9 million as of June 30, 2025 and December 31, 2024.

The Company did not record any impairment loss on its intangible assets for the three and six months ended June 30, 2025 and 2024.

The following table summarizes the amortization expense recorded by the Company related to its intangible assets. Amortization expense related to intangible assets is included in general and administrative in the consolidated statements of operations.


	Three Months Ended June 30,				Six Months Ended June 30,
	2025		2024		2025		2024
Amortization expense	$	12,707	$	22,462	$	26,155	$	42,380

The following table summarizes the expected future amortization expense for intangible assets as of June 30, 2025:


Year Ending	Amortization Expense
July 1 through December 31, 2025	$	23,596
2026	41,274
2027	37,053
2028	36,386
2029	35,898
2030	29,654
2031 and thereafter	79,580
	$	283,441


RITHM CAPITAL CORP. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
(dollars in tables in thousands, except share and per share data)

16. LEASES

Rithm Capital, through its wholly-owned subsidiaries, has non-cancelable operating leases on office space and data centers expiring through 2035. Rent expense, net of sublease income for the three months ended June 30, 2025 and 2024 totaled $7.5 million and $13.2 million, respectively, and $14.7 million and $25.7 million for the six months ended June 30, 2025 and 2024, respectively. The Company has leases that include renewal options and escalation clauses. The terms of the leases do not impose any financial restrictions or covenants.

Operating lease right-of-use (“ROU”) assets represent the right to use an underlying asset for the lease term and lease liabilities represent obligations to make lease payments arising from the lease. In addition, the Company has finance leases for computer hardware. As of June 30, 2025, the Company has pledged collateral related to its lease obligations of $7.4 million, which is presented as part of restricted cash on the consolidated balance sheets. Operating lease ROU assets and lease liabilities are presented as part of other assets and accrued expenses and other liabilities, respectively, on the consolidated balance sheets (Note 12).

The table below summarizes the future commitments under the non-cancelable leases:


Year Ending	Operating Leases		Finance Leases		Total
July 1 through December 31, 2025	$	22,973	$	—	$	22,973
2026	39,438		228		39,666
2027	40,459		228		40,687
2028	29,933		—		29,933
2029	28,155		—		28,155
2030 and thereafter	25,532		—		25,532
Total remaining undiscounted lease payments	186,490		456		186,946
Less: imputed interest	27,505		34		27,539
Total Remaining Discounted Lease Payments	$	158,985	$	422	$	159,407

The future commitments under the non-cancelable leases have not been reduced by the sublease rentals of $31.1 million due in the future periods.

Other information related to leases is summarized below:




	June 30, 2025		December 31, 2024
Weighted Average Remaining Lease Term (Years):
Operating leases	5.2		5.1
Finance leases	2.0		2.5

Weighted Average Discount Rate:
Operating leases	6.6	%	6.5	%
Finance leases	7.9	%	7.9	%


	Six Months Ended June 30,
Supplemental Information	2025		2024
Cash Paid for Amounts Included in the Measurement of Lease Liabilities:
Operating cash flows - operating leases	$	22,452	$	17,551
Operating cash flows - finance leases	3		4
Finance cash flows - finance leases	225		224
Supplemental Non-Cash Information on Lease Liabilities Arising from Obtaining ROU Assets:
ROU assets obtained in exchange for new operating lease liabilities	$	14,655	$	14,846

See Note 9 for further information on leases of SFR properties.


RITHM CAPITAL CORP. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
(dollars in tables in thousands, except share and per share data)

17. DERIVATIVES AND HEDGING

Rithm Capital enters into economic hedges including interest rate swaps, to-be-announced forward contract positions (“TBAs”), and futures to hedge a portion of its interest rate risk exposure. Interest rate risk is sensitive to many factors, including governmental monetary and tax policies, domestic and international economic and political considerations, as well as other factors. Rithm Capital’s credit risk with respect to economic hedges is the risk of default on Rithm Capital’s investments that results from a borrower’s or counterparty’s inability or unwillingness to make contractually required payments.

Rithm Capital may at times hold TBAs in order to mitigate Rithm Capital’s interest rate risk on certain specified MBS and MSRs. Amounts or obligations owed by or to Rithm Capital are subject to the right of set-off with the counterparty. As part of executing these trades, Rithm Capital may enter into agreements with its counterparties that govern the transactions for the purchases or sales made, including margin maintenance, payment and transfer, events of default, settlements and various other provisions. Changes in the value of economic hedges designed to protect against MBS and MSR fair value fluctuations, or hedging gains and losses, are reflected in the tables below.

As of June 30, 2025, Rithm Capital also held interest rate lock commitments (“IRLCs”), which represent a commitment to a particular interest rate provided the borrower is able to close the loan within a specified period, and forward loan sale and securities delivery commitments, which represent a commitment to sell specific residential mortgage loans at prices which are fixed as of the forward commitment date. Rithm Capital enters into forward loan sale and securities delivery commitments in order to hedge the exposure related to IRLCs and residential mortgage loans that are not covered by residential mortgage loan sale commitments.

Derivatives and economic hedges are recorded at fair value and presented in other assets or accrued expenses and other liabilities on the consolidated balance sheets, as follows:




	June 30, 2025		December 31, 2024
Derivative and Hedging Assets:
Interest rate swaps and futures(A)	$	4	$	6
IRLCs	52,084		21,496
TBAs	6,741		50,809
Foreign exchange forwards	—		2,836

	$	58,829	$	75,147
Derivative and Hedging Liabilities:
IRLCs	$	1,562	$	10,202
TBAs	59,689		15,628
Treasury short sales(B)	—		1,245
Other commitments(C)	28,480		25,521
Stock options	113		14
Foreign exchange forwards	2,350		—
Interest rate futures(A)	3,145		—
	$	95,339	$	52,610

(A)Net of $69.3 million and $42.0 million of related variation margin accounts as of as of June 30, 2025 and December 31, 2024, respectively.

(B)As of December 31, 2024, the carrying value represents the net of repurchase agreements and $503.9 million of related reverse repurchase agreement lending facilities used to borrow securities to effectuate short sales of Treasury securities.

(C)During the first quarter of 2024, a subsidiary of the Company entered into an agreement, classified as a derivative, with an affiliate, which could result in the subsidiary being required to make a payment under certain circumstances dependent upon amounts realized from an investment of the affiliate, subject to a maximum amount of $25.5 million. During the first quarter of 2025, the Company entered into a consolidated joint venture with a third party to invest in an affiliated fund. The third party’s interest is subject to a redemption right after a certain period. The Company separately accounts for the redemption right as a derivative with a fair value of $3.0 million as of June 30, 2025.


RITHM CAPITAL CORP. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
(dollars in tables in thousands, except share and per share data)

The following table summarizes notional amounts related to derivatives and hedging:




	June 30, 2025		December 31, 2024
Interest rate swaps(A)	$	8,395,000	$	8,995,000
Interest rate futures(B)	3,335,000		—
IRLCs	4,720,463		3,413,043
TBAs(C)	17,196,491		17,402,824
Other commitments	28,480		25,057
Foreign exchange forwards	68,215		17,300

(A)Includes $1.8 billion notional of receive Secured Overnight Financing Rate (“SOFR”)/pay fixed of 3.3% and $6.6 billion notional of receive fixed of 3.8%/pay SOFR with weighted average maturities of 90 months and 36 months, respectively, as of June 30, 2025. Includes $3.1 billion notional of receive SOFR/pay fixed of 3.6% and $5.9 billion notional of receive fixed of 3.8%/pay SOFR with weighted average maturities of 71 months and 32 months, respectively, as of December 31, 2024.

(B)Represents a $3.3 billion notional Eris SOFR swap future with weighted average maturity of 43 months that replicates cash flows of receive fixed/pay SOFR interest rate swaps.

(C)Represents the notional amount of Agency RMBS classified as derivatives.

The following table summarizes gain (loss) on derivatives and other hedging instruments and the related presentation on the consolidated statements of operations:


	Three Months Ended June 30,				Six Months Ended June 30,
	2025		2024		2025		2024
Servicing Revenue, Net:

TBAs	$	19,749	$	1,042	$	120,100	$	2,565
Interest rate swaps	(2,087)		(1,840)		(5,954)		8,904
Interest rate futures	3,210		—		9,191		—
Treasury short sales	—		12,952		—		41,297



	20,872		12,154		123,337		52,766
Gain (Loss) on Originated Residential Mortgage Loans, HFS, Net(A):
IRLCs	16,135		(14,817)		39,228		(7,332)
TBAs	(30,755)		15,484		(100,927)		53,394

	(14,620)		667		(61,699)		46,062
Realized and Unrealized Gains (Losses), Net(B):
Interest rate swaps	(4,200)		3,942		(12,667)		22,360



Other commitments	—		957		—		(16,140)
Stock options	(56)		—		(17)		—
Foreign exchange forwards	(3,970)		—		(5,357)		—
	(8,226)		4,899		(18,041)		6,220

Total Gain (Loss)	$	(1,974)	$	17,720	$	43,597	$	105,048

(A)Represents unrealized gain (loss).

(B)Excludes $25.0 million gain and $10.1 million gain for the three months ended June 30, 2025 and 2024, respectively, and $37.8 million gain and $5.4 million loss for the six months ended June 30, 2025 and 2024, respectively, reflected as gain (loss) on settlement of residential mortgage loan origination derivative instruments presented within gain on originated residential mortgage loans, HFS, net (Note 7) in the consolidated statements of operations.


RITHM CAPITAL CORP. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
(dollars in tables in thousands, except share and per share data)

18. DEBT OBLIGATIONS

The following table summarizes secured financing agreements, secured notes and bonds payable and also includes notes payable of consolidated CFEs:


	June 30, 2025															December 31, 2024
									Collateral
Debt Obligations/Collateral(C)	Outstanding Face Amount		Carrying Value(A)		Final Stated Maturity(B)	Weighted Average Funding Cost		Weighted Average Life (Years)	Outstanding Face		Amortized Cost Basis		Carrying Value		Weighted Average Life (Years)	Carrying Value(A)
Secured Financing Agreements:
Warehouse credit facilities - residential mortgage loans(D)	$	4,025,279	$	4,025,279	Jul-25 to Mar-28	5.7	%	0.6	$	4,436,455	$	4,533,953	$	4,502,103	23.8	$	4,235,333
Warehouse credit facilities - residential transition loans(E)	1,873,586		1,873,586		Dec-25 to Mar-28	6.7	%	1.5	2,181,576		2,186,402		2,186,402		1.1	1,547,307
Government and government-backed securities(F)	8,670,898		8,670,898		Jul-25 to Mar-26	4.6	%	0.3	8,967,430		8,788,443		9,030,840		7.1	9,782,976
Non-Agency securities(D)	871,386		871,386		Jul-25 to Oct-28	6.0	%	0.7	14,894,065		1,206,506		1,285,364		4.2	744,457
Excess MSRs(E)	223,241		222,689		Sep-26	6.7	%	1.2	50,719,526		282,966		325,337		6.0	222,452
CLOs(E)	229,361		227,906		Jan-30 to Apr-38	4.4	%	8.2	229,949		N/A		229,532		8.2	170,990
SFR properties and commercial(E)	6,034		6,034		Dec-26	6.8	%	1.5	N/A		10,785		10,785		N/A	78,952
Total secured financing agreements	15,899,785		15,897,778			5.2	%	0.7								16,782,467
Secured Notes and Bonds Payable:
MSRs(G)	5,723,470		5,706,822		Sep-25 to Nov-31	6.8	%	1.8	571,546,048		8,182,037		10,135,402		6.4	5,838,250
Servicer advance investments(H)	240,656		240,656		Mar-26	6.2	%	0.7	276,702		302,338		312,986		7.6	258,183
Servicer advances(H)	2,321,262		2,320,925		Sep-25 to Dec-26	6.8	%	0.7	2,706,174		2,684,416		2,684,416		0.7	2,629,802
Consumer loans(I)	403,296		381,654		Jun-28 to Sep-37	4.7	%	3.3	580,301		568,925		465,231		1.7	564,791
SFR properties(J)	819,074		799,356		Feb-27 to Mar-28	4.3	%	2.1	N/A		991,475		991,475		N/A	716,649
Residential transition loans(K)	200,000		200,000		Jul-26	5.8	%	1.0	230,554		230,554		231,693		0.5	200,000
Secured facility - asset management(M)	75,000		73,634		Nov-25	8.8	%	0.3	N/A		N/A		N/A		N/A	71,971
Other investments(E)	30,000		30,000		Feb-30	6.6	%	4.6	N/A		N/A		N/A		N/A	—
CLOs(E)	11,837		11,810		Jul-30	6.1	%	5.0	15,373		N/A		14,391		5.0	18,429
Total secured notes and bonds payable	9,824,595		9,764,857			6.5	%	1.6								10,298,075
Notes Payable of Consolidated CFEs:
Consolidated funds(L)	960,250		955,757		May-28 to Jan-38	5.8	%	10.2	1,041,106		N/A		1,073,302		5.0	959,958
Residential mortgage loans	2,358,418		2,232,484		Feb-41 to May-53	4.4	%	25.3	2,769,184		N/A		2,637,931		25.3	2,369,934
Residential transition loans	861,949		863,038		Mar-39 to Sep-39	6.2	%	13.9	943,271		N/A		967,461		0.9	859,023
Total notes payable of consolidated CFEs	4,180,617		4,051,279			5.1	%	19.5								4,188,915
Total / Weighted Average	$	29,904,997	$	29,713,914		5.6	%	3.6								$	31,269,457

(A)Net of deferred financing costs.

(B)Debt obligations with a stated maturity through the date of issuance of the consolidated financial statements were refinanced, extended or repaid.

(C)Associated with accrued interest payable of approximately $184.3 million and $239.4 million as of June 30, 2025 and December 31, 2024, respectively.

(D)Based on SOFR interest rates. Includes repurchase agreements and related collateral on non-Agency securities retained through consolidated securitizations.

(E)All SOFR- or Euro Interbank Offered Rate (EURIBOR)-based floating interest rates.

(F)Repurchase agreements are based on a fixed-rate. Collateral carrying value includes margin deposits.

(G)Includes $4.0 billion of MSR notes with an interest equal to the sum of (i) a floating rate index equal to SOFR and (ii) a margin ranging from 2.5% to 3.0%; and $1.7 billion of MSR notes with fixed interest rates ranging 3.1% to 7.4%. The outstanding face amount of the collateral represents the UPB of the residential mortgage loans underlying the MSRs and MSR financing receivables securing these notes.

(H)Includes $1.5 billion of debt with an interest rate equal to the sum of (i) a floating rate index equal to SOFR and (ii) a margin ranging from 1.6% to 3.0%; and $1.0 billion of debt with fixed interest rates ranging from 3.9% to 5.7%. Collateral includes servicer advance investments, as well as servicer advances receivable related to the MSRs and MSR financing receivables owned by NRM and Newrez.

(I)Includes (i) SpringCastle debt, which is primarily composed of the following classes of asset-backed notes held by third parties: $125.6 million UPB of Class A notes with a coupon of 2.0% and $53.0 million UPB of Class B notes with a coupon of 2.7% and (ii) $224.7 million of debt collateralized by the Marcus loans with an interest rate of SOFR plus a margin of 2.4%.

(J)Includes $819.1 million of fixed rate notes which bear interest ranging from 3.5% to 6.2%.

(K)Fixed rate note which bears interest of 5.8%.

(L)Includes notes payable of consolidated collateralized loan obligations (“CLOs”) and of a structured alternative investment solution. Weighted average rate is the effective rate for the senior notes with stated coupon rates. The subordinate notes with UPB of $32.0 million do not have a stated rate of interest. Weighted average life of a structured alternative investment solution is based on expected maturity.

(M)Fixed rate note which bears interest of 8.8%.


RITHM CAPITAL CORP. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
(dollars in tables in thousands, except share and per share data)

General

Certain of the debt obligations included above are obligations of Rithm Capital’s consolidated subsidiaries, which own the related collateral. In some cases, such collateral is not available to other creditors of Rithm Capital Corp. The obligations and liabilities of CFEs may only be satisfied with the assets of the respective consolidated CFEs, and creditors of the CFE do not have recourse to Rithm Capital Corp.

As of June 30, 2025, Rithm Capital has margin exposure on $15.9 billion of secured financing agreements. To the extent that the value of the collateral underlying these secured financing agreements declines, Rithm Capital may be required to post margin, which could significantly impact its liquidity.

The following table summarizes activities related to the carrying value of debt obligations:


	Servicer Advances and Excess MSRs(A)		MSRs		Government and Government-Backed and Other Securities		Residential Mortgage Loans and REO		Consumer Loans		SFR Properties and Commercial		Residential Transition Loans		Asset Management, CLOs and Consolidated Funds		Total




















Balance at December 31, 2024	$	3,110,437	$	5,838,250	$	10,527,433	$	6,605,267	$	564,791	$	795,601	$	2,606,330	$	1,221,348	$	31,269,457
Secured Financing Agreements:
Borrowings	—		—		31,272,394		33,460,231		—		—		1,843,175		59,550		66,635,350
Repayments	—		—		(32,257,543)		(33,670,285)		—		(72,918)		(1,516,896)		(28,255)		(67,545,897)
Foreign exchange ("FX") remeasurement	—		—		—		—		—		—		—		25,827		25,827
Capitalized deferred financing costs, net of amortization	237		—		—		—		—		—		—		(206)		31
Secured Notes and Bonds Payable:

Borrowings	1,418,518		1,750,504		30,000		—		—		79,119		—		6,173		3,284,314
Repayments	(1,745,210)		(1,872,872)		—		—		(181,737)		(663)		—		(12,062)		(3,812,544)
FX remeasurement	—		—		—		—		—		—		—		193		193
Unrealized (gain) loss on notes, fair value	—		—		—		—		(1,992)		—		—		—		(1,992)
Capitalized deferred financing costs, net of amortization	288		(9,060)		—		—		592		4,251		—		739		(3,190)
Notes Payable of Consolidated CFEs:


Repayments	—		—		—		(182,456)		—		—		—		—		(182,456)

Unrealized (gain) loss on notes, fair value	—		—		—		45,006		—		—		2,883		(4,200)		43,689
Capitalized deferred financing costs, net of amortization	—		—		—		—		—		—		1,132		—		1,132
Balance at June 30, 2025	$	2,784,270	$	5,706,822	$	9,572,284	$	6,257,763	$	381,654	$	805,390	$	2,936,624	$	1,269,107	$	29,713,914

(A)Rithm Capital net settles daily borrowings and repayments of the secured notes and bonds payable on its servicer advances.

Maturities

Contractual maturities of debt obligations, including the Senior Unsecured Notes (as defined below), as of June 30, 2025 are as follows:


Year Ending	Nonrecourse(A)		Recourse(B)		Total
July 1 through December 31, 2025	$	1,041,433	$	13,311,905	$	14,353,338
2026	2,251,035		5,159,892		7,410,927
2027	649,794		307,000		956,794
2028	752,994		448,441		1,201,435
2029	70,000		1,025,000		1,095,000
2030 and thereafter	5,632,503		530,000		6,162,503
	$	10,397,759	$	20,782,238	$	31,179,997

(A)Includes secured financing agreements, secured notes and bonds payable, unsecured notes net of issuance costs and notes payable of consolidated CFEs of $1.7 billion, $5.1 billion, $0.0 billion, and $3.2 billion, respectively.

(B)Includes secured financing agreements, secured notes and bonds payable, unsecured notes net of issuance costs and notes payable of consolidated CFEs of $14.4 billion, $5.3 billion, $1.3 billion, and $0.0 billion, respectively.


RITHM CAPITAL CORP. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
(dollars in tables in thousands, except share and per share data)

Borrowing Capacity

The following table represents borrowing capacity as of June 30, 2025:


Debt Obligations / Collateral	Borrowing Capacity		Balance Outstanding		Available Financing(A)
Secured Financing Agreements:
Residential mortgage loans, residential transition loans and SFR	$	6,773,316	$	2,623,262	$	4,150,054
Loan originations	6,077,000		3,281,636		2,795,364
CLOs	484,141		229,361		254,780
Excess MSRs	350,000		223,241		126,759

Secured Notes and Bonds Payable:
MSRs	6,898,522		5,723,470		1,175,052
Servicer advances	4,240,000		2,561,918		1,678,082
SFR	200,000		169,279		30,721

Liabilities of Consolidated CFEs:
Consolidated funds	52,500		—		52,500
	$	25,075,479	$	14,812,167	$	10,263,312

(A)Although available financing is uncommitted, Rithm Capital’s unused borrowing capacity is available if it has additional eligible collateral to pledge and meets other borrowing conditions as set forth in the applicable agreements, including any applicable advance rate.

Certain of the debt obligations are subject to customary loan covenants and event of default provisions, including event of default provisions triggered by certain specified declines in Rithm Capital’s equity or a failure to maintain a specified tangible net worth, liquidity or indebtedness to tangible net worth ratio. Rithm Capital was in compliance with all of its debt covenants as of June 30, 2025.

2030 Senior Unsecured Notes

On June 20, 2025, the Company issued $500.0 million aggregate principal amount of senior unsecured notes due on July 15, 2030 (the “2030 Senior Notes”) in a private offering for proceeds of approximately $495.0 million, net of commissions and estimated offering expenses payable by the Company. Interest on the 2030 Senior Notes accrues at the rate of 8.000% per annum with interest payable semi-annually in arrears on each of January 15th and July 15th, commencing on January 15, 2026.

The 2030 Senior Notes become redeemable in whole or in part at any time and from time to time, on or after July 15, 2027, at a price equal to the following fixed redemption prices (expressed as a percentage of principal amount of the 2030 Senior Notes to be redeemed):


Year	Price
2027	104.000	%
2028	102.000	%
2029 and thereafter	100.000	%

Prior to July 15, 2027, the Company is entitled at its option, at any time and from time to time, to redeem the 2030 Senior Notes in whole or in part at a price equal to 100% of the principal amount thereof, plus the applicable “make-whole” premium as of the applicable redemption date, and accrued but unpaid interest, if any, to, but excluding the applicable date of redemption. In addition, prior to July 15, 2027, the Company is entitled at its option on one or more occasions to redeem the 2030 Senior Notes in an aggregate principal amount not to exceed 40% of the aggregate principal amount of the 2030 Senior Notes originally issued at a redemption price of 108.000%, plus accrued but unpaid interest, if any, to, but not including, the applicable redemption date with the net cash proceeds from one or more Qualified Equity Offerings (as defined in the Indenture, dated June 20, 2025, by and between the Company and U.S. Bank Trust Company, National Association (the “Trustee”), pursuant to which the 2030 Senior Notes were issued (the “2030 Notes Indenture”)).


RITHM CAPITAL CORP. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
(dollars in tables in thousands, except share and per share data)

The Company incurred fees of approximately $5.4 million in relation to the issuance of the 2030 Senior Notes. These fees were capitalized as debt issuance cost and presented as part of unsecured notes, net of issuance costs on the consolidated balance sheets. In connection with the 2030 Senior Notes, for the three and six months ended June 30, 2025, the Company recognized interest expense of $1.1 million. As of June 30, 2025, the unamortized debt issuance cost was approximately $5.4 million.

The 2030 Senior Notes are senior unsecured obligations and rank equal in right of payment with all of the Company’s existing and future senior unsecured indebtedness and senior unsecured guarantees. At the time of issuance, the 2030 Senior Notes were not guaranteed by any of the Company’s subsidiaries and none of its subsidiaries are required to guarantee the 2030 Senior Notes in the future, except under limited specified circumstances.

The 2030 Senior Notes contain financial covenants and other non-financial covenants, including, among other things, limits on the ability of the Company and its restricted subsidiaries to incur certain indebtedness (subject to various exceptions), a requirement that the Company maintain Total Unencumbered Assets (as defined in the 2030 Notes Indenture) of not less than 120% of the aggregate principal amount of the outstanding unsecured debt of the Company, and imposes certain requirements in order for the Company to merge or consolidate with or transfer all or substantially all of its properties and assets to another person, in each case subject to certain qualifications set forth in the 2030 Notes Indenture. If the Company were to fail to comply with these covenants, after the expiration of the applicable cure periods, the debt maturity could be accelerated or other remedies could be sought by the lenders. As of June 30, 2025, the Company was in compliance with all covenants.

In the event of a Change of Control or Mortgage Business Triggering Event (each as defined in the 2030 Notes Indenture), each holder of the 2030 Senior Notes will have the right to require the Company to repurchase all or any part of such holder’s outstanding balance at a purchase price of 101% of the principal amount of the 2030 Senior Notes, plus accrued and unpaid interest, if any, to, but not including, the date of such repurchase.

2029 Senior Unsecured Notes

On March 19, 2024, the Company issued $775.0 million aggregate principal amount of senior unsecured notes due on April 1, 2029 (the “2029 Senior Notes”) in a private offering at an issue price of 98.981%. Interest on the 2029 Senior Notes accrues at the rate of 8.000% per annum with interest payable semi-annually in arrears on each of April 1st and October 1st, commencing on October 1, 2024.

The 2029 Senior Notes become redeemable in whole or in part at any time and from time to time, on or after April 1, 2026, at a price equal to the following fixed redemption prices (expressed as a percentage of principal amount of the 2029 Senior Notes to be redeemed):


Year	Price
2026	104.000	%
2027	102.000	%
2028 and thereafter	100.000	%

Prior to April 1, 2026, the Company is entitled at its option, at any time and from time to time, to redeem the 2029 Senior Notes in whole or in part at a price equal to 100% of the principal amount thereof, plus the applicable “make-whole” premium as of the applicable redemption date, and accrued but unpaid interest, if any, to, but excluding the applicable date of redemption. In addition, prior to April 1, 2026, the Company is entitled at its option on one or more occasions to redeem the 2029 Senior Notes in an aggregate principal amount not to exceed 40% of the aggregate principal amount of the 2029 Senior Notes originally issued at a redemption price of 108.000%, plus accrued but unpaid interest, if any, to, but not including, the applicable redemption date with the net cash proceeds from one or more Qualified Equity Offerings (as defined in the Indenture, dated March 19, 2024, pursuant to which the 2029 Senior Notes were issued (the “2029 Notes Indenture”)).


RITHM CAPITAL CORP. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
(dollars in tables in thousands, except share and per share data)

Proceeds from the issuance of the 2029 Senior Notes were approximately $759 million, net of discount and commissions and estimated offering expenses payable by the Company. The Company incurred fees of approximately $9.1 million in relation to the issuance of the 2029 Senior Notes. These fees were capitalized as debt issuance cost and presented as part of unsecured notes, net of issuance costs on the consolidated balance sheets. In connection with the 2029 Senior Notes, for the three months ended June 30, 2025 and 2024, the Company recognized interest expense of $15.5 million and $15.5 million, respectively, and $30.7 million and $17.5 million for the six months ended June 30, 2025 and 2024, respectively. As of June 30, 2025 and December 31, 2024, the unamortized discount and debt issuance cost was approximately $13.4 million and $14.8 million, respectively.

The 2029 Senior Notes are senior unsecured obligations and rank equal in right of payment with all of the Company’s existing and future senior unsecured indebtedness and senior unsecured guarantees. At the time of issuance, the 2029 Senior Notes were not guaranteed by any of the Company’s subsidiaries and none of its subsidiaries are required to guarantee the 2029 Senior Notes in the future, except under limited specified circumstances.

The 2029 Senior Notes contain financial covenants and other non-financial covenants, including, among other things, limits on the ability of the Company and its restricted subsidiaries to incur certain indebtedness (subject to various exceptions), a requirement that the Company maintain Total Unencumbered Assets (as defined in the 2029 Notes Indenture) of not less than 120% of the aggregate principal amount of the outstanding unsecured debt of the Company and imposes certain requirements in order for the Company to merge or consolidate with or transfer all or substantially all of its properties and assets to another person, in each case subject to certain qualifications set forth in the 2029 Notes Indenture. If the Company were to fail to comply with these covenants, after the expiration of the applicable cure periods, the debt maturity could be accelerated or other remedies could be sought by the lenders. As of June 30, 2025, the Company was in compliance with all covenants.

In the event of a Change of Control or Mortgage Business Triggering Event (each as defined in the 2029 Notes Indenture), each holder of the 2029 Senior Notes will have the right to require the Company to repurchase all or any part of such holder’s outstanding balance at a purchase price of 101% of the principal amount of the 2029 Senior Notes, plus accrued and unpaid interest, if any, to, but not including, the date of such repurchase.

2025 Senior Unsecured Notes

On September 16, 2020, the Company issued $550.0 million aggregate principal amount of senior unsecured notes due on October 15, 2025 (the “2025 Senior Notes” and, together with the 2030 Senior Notes and the 2029 Senior Notes, the “Senior Unsecured Notes”) in a private offering for net proceeds of $544.5 million. Interest on the 2025 Senior Notes accrued at the rate of 6.250% per annum with interest payable semi-annually in arrears on each April 15th and October 15th, commencing on April 15, 2021.

The notes became redeemable at any time and from time to time, on or after October 15, 2022 at certain fixed redemption prices. The Company was able to redeem the notes at a fixed redemption price of 100.000% after October 14, 2024 plus accrued and unpaid interest, if any, to, but not including, the applicable redemption date.

The Company incurred fees of approximately $8.3 million in relation to the issuance of the 2025 Senior Notes which were capitalized as debt issuance cost and are presented as part of unsecured notes, net of issuance costs on the consolidated balance sheets. In connection with the 2025 Senior Notes, for the three months ended June 30, 2025 and 2024, the Company recognized interest expense of $4.4 million and $4.3 million, respectively, and $8.6 million and $12.3 million for the six months ended June 30, 2025 and 2024, respectively. As of December 31, 2024, unamortized debt issuance costs were approximately $1.4 million. There were no unamortized debt issuance costs related to the 2025 Senior Notes as of June 30, 2025.

The 2025 Senior Notes were senior unsecured obligations and ranked equal in right of payment with all of the Company’s existing and future senior unsecured indebtedness and senior unsecured guarantees. At the time of issuance, the 2025 Senior Notes were not guaranteed by any of the Company’s subsidiaries and none of its subsidiaries were required to guarantee the 2025 Senior Notes at a later date, except under limited specified circumstances.


RITHM CAPITAL CORP. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
(dollars in tables in thousands, except share and per share data)

During the first quarter of 2024 and in connection with the issuance of the 2029 Senior Notes, the Company tendered for and repurchased $275.0 million aggregate principal amount of its 2025 Senior Notes for cash in a total amount of $282.4 million, inclusive of an early tender premium of $30 per $1,000 principal amount of 2025 Senior Notes and accrued and unpaid interest. Following such tender offer, $275.0 million aggregate principal amount of 2025 Senior Notes remained outstanding.

During the second quarter of 2025 and following the issuance of the 2030 Senior Notes, the Company redeemed the remaining $275.0 million aggregate principal amount of its 2025 Senior Notes for cash in a total amount of $278.7 million, inclusive of accrued and unpaid interest. On June 30, 2025, the 2025 Senior Notes Indenture and the Company’s obligations under the 2025 Senior Notes were satisfied and discharged. As a result of the redemption, the Company recognized a loss on extinguishment of debt of $0.7 million which is included in realized and unrealized gains (losses), net in the consolidated statement of operations.

Tax Receivable Agreement

At the time of its IPO in 2007, Sculptor entered into a tax receivable agreement (“TRA”) with the former holders of units in Sculptor’s operating partnerships (the “TRA Holders”). The TRA provides for the payment by Sculptor to the TRA Holders of a portion of the cash savings in U.S. federal, state and local income tax that Sculptor realizes as a result of certain tax benefits attributable to taxable acquisitions by Sculptor (and certain affiliates and successors) of Sculptor operating partnership units.

The TRA includes certain “change of control” assumptions that became applicable as a result of the Sculptor Acquisition, including the assumption that Sculptor (or its successor) has sufficient taxable income to use the relevant tax benefits. As a result, payments under the TRA will be calculated without regard to Sculptor’s ability to actually use tax assets (including net operating losses), the use of which may be significantly limited and may therefore exceed the actual tax savings to Sculptor of the associated tax assets.

The estimated undiscounted future payment under the TRA was $237.9 million as of June 30, 2025. The carrying value of the TRA liability measured at amortized cost was $158.2 million and $170.4 million as of June 30, 2025 and December 31, 2024, respectively, with interest expense recognized under the effective interest method. The TRA liability is recorded in unsecured notes, net of issuance costs on the consolidated balance sheets.

The table below presents the Company’s estimate as of June 30, 2025, of the maximum undiscounted amounts that would be payable under the TRA using the assumptions described above. In light of the numerous factors affecting Sculptor’s obligation to make such payments, the timing and amounts of any such actual payments may differ materially from those presented in the table.


Year Ending	Potential Payments Under TRA
July 1 through December 31, 2025	$	—
2026	17,513
2027	18,063
2028	16,697
2029	16,739
2030 and thereafter	168,928
	$	237,940

19. FAIR VALUE MEASUREMENTS

Fair value represents the price that would be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants as of the measurement date (i.e., an exit price). The Company holds a variety of assets and liabilities, certain of which are not publicly traded or that are otherwise illiquid. Significant judgment and estimation go into the assumptions that drive the fair value of these assets and liabilities. Due to the inherent uncertainty of valuations of investments that are determined to be illiquid or do not have readily ascertainable fair values, the estimates of fair value may differ from the values ultimately realized, and those differences can be material.


RITHM CAPITAL CORP. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
(dollars in tables in thousands, except share and per share data)

U.S. GAAP establishes a hierarchical disclosure framework that prioritizes and ranks the level of market price observability used in measuring financial instruments at fair value. Market price observability is impacted by a number of factors, including the type and the specific characteristics of the assets and liabilities, including existence and transparency of transactions between market participants. Assets and liabilities with readily available actively quoted prices or for which fair value can be measured from actively-quoted prices generally will have a higher degree of market price observability and lesser degree of judgment used in measuring fair value.

Assets and liabilities measured at fair value are classified and disclosed into one of the following categories based on the observability of inputs used in the determination of fair values:

Level 1 – Quoted prices in active markets for identical instruments.

Level 2 – Valuations based principally on other observable market parameters, including:

•Quoted prices in active markets for similar instruments,

•Quoted prices in less active or inactive markets for identical or similar instruments,

•Other observable inputs, such as interest rates, yield curves, volatilities, prepayment rates, loss severities, credit risks and default rates (“CDR”) and

•Market corroborated inputs (derived principally from or corroborated by observable market data).

Level 3 – Valuations based significantly on unobservable inputs.

Rithm Capital follows this hierarchy for its fair value measurements. The classifications are based on the lowest level of input that is significant to the fair value measurement.


RITHM CAPITAL CORP. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
(dollars in tables in thousands, except share and per share data)

The carrying values and fair values of assets and liabilities recorded at fair value on a recurring basis, as well as other financial instruments measured at amortized cost for which fair value is disclosed, as of June 30, 2025 were as follows:


	Principal Balance or Notional Amount		Carrying Value		Fair Value(E)
					Level 1		Level 2		Level 3		Net Asset Value (“NAV”)		Total
Assets:
Excess MSRs(A)	$	50,719,526	$	345,677	$	—	$	—	$	345,677	$	—	$	345,677
MSRs and MSR financing receivables(A)	592,723,336		10,360,063		—		—		10,360,063		—		10,360,063
Servicer advance investments	276,702		312,986		—		—		312,986		—		312,986
Government and government-backed securities(B)	8,992,430		8,868,879		1,282,188		7,586,689		—		—		8,868,877
Non-Agency securities	8,852,683		739,143		—		—		739,143		—		739,143
Residential mortgage loans, HFS	68,525		60,966		—		—		60,966		—		60,966
Residential mortgage loans, HFS, at fair value	4,049,979		4,126,335		—		4,100,440		25,895		—		4,126,335
Residential mortgage loans, HFI, at fair value	371,253		343,333		—		—		343,333		—		343,333
Residential mortgage loans subject to repurchase	2,264,600		2,264,600		—		2,264,600		—		—		2,264,600
Consumer loans	580,301		465,231		—		—		465,231		—		465,231
Derivative and hedging assets	17,499,607		58,829		—		6,745		52,084		—		58,829
Residential transition loans	2,492,943		2,497,764		—		—		2,497,764		—		2,497,764
Notes receivable	532,517		442,893		—		—		442,893		—		442,893
Loans receivable	8,038		8,038		—		—		8,038		—		8,038
Equity investment, at fair value	192,500		194,315		—		—		194,315		—		194,315
CLOs	339,429		337,392		—		249,627		87,765		—		337,392
Investments of consolidated CFEs - funds(C)	1,133,725		1,159,681		—		801,443		88		358,150		1,159,681
Investments of consolidated CFEs - loan securitizations(C)	3,712,455		3,605,392		—		2,637,931		967,461		—		3,605,392
Other assets	N/A		172,057		78,754		—		93,303		—		172,057
			$	36,363,574	$	1,360,942	$	17,647,475	$	16,997,005	$	358,150	$	36,363,572
Liabilities:
Secured financing agreements	$	15,899,785	$	15,897,778	$	—	$	15,669,872	$	231,119	$	—	$	15,900,991
Secured notes and bonds payable(D)	9,824,595		9,764,857		—		—		9,768,399		—		9,768,399
Unsecured notes, net of issuance costs	1,512,940		1,414,497		—		—		1,422,452		—		1,422,452
Residential mortgage loan repurchase liability	2,264,600		2,264,600		—		2,264,600		—		—		2,264,600
Derivative liabilities	16,244,042		95,339		113		65,184		30,042		—		95,339
MSR financing liability(A)	8,613,478		60,940		—		—		60,940				60,940
Notes receivable financing	371,446		376,143		—		—		381,128		—		381,128
Notes payable of consolidated CFEs - funds(C)	960,250		955,757		—		731,091		224,666		—		955,757
Notes payable of consolidated CFEs - loan securitizations(C)	3,220,367		3,095,522		—		2,232,484		863,038		—		3,095,522
			$	33,925,433	$	113	$	20,963,231	$	12,981,784	$	—	$	33,945,128

(A)The notional amount represents the total UPB of the residential mortgage loans underlying the MSRs, MSR financing receivables, Excess MSRs and MSR financing liability. Rithm Capital does not receive an excess mortgage servicing amount on non-performing loans in Agency portfolios.

(B)Includes Treasury securities classified as Level 1 and held at amortized cost basis of $24.8 million (see Note 6).

(C)Represents assets and notes issued by consolidated VIEs accounted for under the CFE election.

(D)Includes $160.4 million of SCFT 2020-A (as defined in Note 20) MBS as of June 30, 2025, for which the FVO for financial instruments was elected.

(E)The table excludes cash and other short-term receivables and payables for which the carrying value approximates fair value due to their short term nature and are classified within Level 1.


RITHM CAPITAL CORP. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
(dollars in tables in thousands, except share and per share data)

The carrying values and fair values of assets and liabilities recorded at fair value on a recurring basis, as well as other financial instruments for which fair value is disclosed, as of December 31, 2024 were as follows:


	Principal Balance or Notional Amount		Carrying Value		Fair Value(E)
					Level 1		Level 2		Level 3		NAV		Total
Assets:
Excess MSRs(A)	$	53,494,378	$	369,162	$	—	$	—	$	369,162	$	—	$	369,162
MSRs and MSR financing receivables(A)	590,214,351		10,321,671		—		—		10,321,671		—		10,321,671
Servicer advance investments	298,945		339,646		—		—		339,646		—		339,646
Government and government-backed securities(B)	9,947,189		9,736,116		3,285,478		6,450,643		—		—		9,736,121
Non-agency securities	8,962,730		552,797		—		—		552,797		—		552,797
Residential mortgage loans, HFS	75,872		66,670		—		—		66,670		—		66,670
Residential mortgage loans, HFS, at fair value	4,274,620		4,307,571		—		4,280,405		27,166		—		4,307,571
Residential mortgage loans, HFI, at fair value	396,061		361,890		—		—		361,890		—		361,890
Residential mortgage loans subject to repurchase	2,745,756		2,745,756		—		2,745,756		—		—		2,745,756
Consumer loans	767,623		665,565		—		—		665,565		—		665,565
Derivative and hedging assets	18,597,732		75,147		—		53,651		21,496		—		75,147
Residential transition loans	2,172,713		2,178,075		—		—		2,178,075		—		2,178,075
Notes receivable	487,276		393,786		—		—		393,786		—		393,786
Loans receivable	31,580		31,580		—		—		31,580		—		31,580
Equity investment, at fair value	192,500		194,410		—		—		194,410		—		194,410
CLOs	243,355		242,227		—		217,049		25,178		—		242,227
Investments of consolidated CFEs - funds(C)	1,108,903		1,118,359		—		—		785,253		333,106		1,118,359
Investments of consolidated CFEs - loan securitizations(C)	3,900,428		3,753,219		—		2,791,027		962,192		—		3,753,219
Other assets	N/A		113,224		17,831		—		95,393		—		113,224
			$	37,566,871	$	3,303,309	$	16,538,531	$	17,391,930	$	333,106	$	37,566,876
Liabilities:
Secured financing agreements	$	16,784,505	$	16,782,467	$	—	$	16,611,477	$	175,559	$	—	$	16,787,036
Secured notes and bonds payable(D)	10,353,561		10,298,075		—		—		10,318,385		—		10,318,385
Unsecured notes, net of issuance costs	1,302,492		1,204,220		—		—		1,229,408		—		1,229,408
Residential mortgage loan repurchase liability	2,745,756		2,745,756		—		2,745,756		—		—		2,745,756
Derivative liabilities	11,255,492		52,610		1,259		15,628		35,723		—		52,610
MSR financing liability(A)	15,271,757		101,088		—		—		101,088		—		101,088
Notes receivable financing	371,446		371,788		—		—		377,227		—		377,227
Notes payable of consolidated CFEs - funds(C)	1,182,640		959,958		—		—		959,958		—		959,958
Notes payable of consolidated CFEs - loan securitizations(C)	3,402,823		3,228,957		—		2,369,934		859,023		—		3,228,957
			$	35,744,919	$	1,259	$	21,742,795	$	14,056,371	$	—	$	35,800,425

(B)Includes Treasury Bills classified as Level 1 and held at amortized cost basis of $24.8 million (see Note 6).

(C)Represents assets and notes issued by consolidated VIEs accounted for under the CFE election.

(D)Includes $185.5 million of SCFT 2020-A (as defined in Note 20) MBS as of December 31, 2024, for which the FVO for financial instruments was elected.

(E)The table excludes cash and other short-term receivables and payables for which the carrying value approximates fair value due to their short term nature and are classified within Level 1.


RITHM CAPITAL CORP. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
(dollars in tables in thousands, except share and per share data)

The following tables summarize the changes in the Company’s Level 3 financial assets for the periods presented:


	Level 3
	Excess MSRs(A)		MSRs and MSR Financing Receivables(A)		Servicer Advance Investments		Non-Agency Securities		CLOs(B)		Residential Mortgage Loans		Consumer Loans		Other Assets(C)		Residential Transition Loans(D)		Total
Balance at March 31, 2025	$	354,923	$	10,133,041	$	321,531	$	639,458	$	457,276	$	444,684	$	554,168	$	748,583	$	3,273,750	$	16,927,414
Transfers:
Transfers out of Level 3(I)	—		—		—		—		(372,985)		—		—		—		—		(372,985)


Gain (Loss) Included in Net Income:
Credit losses on securities(E)	—		—		—		(705)		—		—		—		—		—		(705)
Servicing Revenue, Net(F):
Included in servicing revenue(F)	—		(194,819)		—		—		—		—		—		—		—		(194,819)
Fair Value Adjustments due to:
Other factors(E)	(690)		—		166		2,072		—		2,828		(2,514)		19,202		8,056		29,120
Instrument-specific credit risk(E)	—		—		—		—		—		(653)		(4,384)		—		(7,257)		(12,294)

Other income (loss), net(E)	—		—		—		—		(27,843)		322		—		9,246		—		(18,275)
Gains (losses) included in OCI(G)	—		—		—		3,210		—		—		—		—		—		3,210
Interest income	9,109		—		5,245		9,549		—		—		777		—		—		24,680
Purchases, Sales and Repayments:
Purchases, net(H)	—		—		164,021		113,890		61,459		299		—		6,668		—		346,337
Sales and settlement fundings	(45)		1,860		—		—		(30,054)		—		5,074		—		—		(23,165)
Proceeds from repayments	(17,620)		—		(177,977)		(28,331)		—		(16,117)		(87,890)		(20,149)		(738,568)		(1,086,652)
Originations and other	—		419,981		—		—		—		(1,169)		—		(2,959)		929,244		1,345,097
Balance at June 30, 2025	$	345,677	$	10,360,063	$	312,986	$	739,143	$	87,853	$	430,194	$	465,231	$	760,591	$	3,465,225	$	16,966,963

(A)Includes the recapture agreement for each respective pool, as applicable.

(B)Includes CLOs of consolidated CFEs classified as Level 3 in the fair value hierarchy.

(C)For the purpose of this table, the IRLC asset and liability positions and other commitment derivatives are shown net.

(D)Includes residential transition loans of consolidated CFEs classified as Level 3 in the fair value hierarchy.

(E)Gain (loss) recorded in earnings during the period is attributable to the change in unrealized gain (loss) relating to Level 3 assets still held at the reporting dates and realized gain (loss) recorded during the period.

(F)See Note 5 for further details on the components of servicing revenue, net.

(G)Gain (loss) included in unrealized gain (loss) on AFS securities, net in the consolidated statements of comprehensive income.

(H)Non-Agency securities includes securities retained through securitizations accounted for as sales.

(I)For the three months ended June 30, 2025, transfers out of Level 3 to Level 2 were primarily due to increased price transparency.


RITHM CAPITAL CORP. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
(dollars in tables in thousands, except share and per share data)


	Level 3
	Excess MSRs(A)		MSRs and MSR Financing Receivables(A)		Servicer Advance Investments		Non-Agency Securities		CLOs(B)		Residential Mortgage Loans		Consumer Loans		Other Assets(C)		Residential Transition Loans(D)		Total





















Balance at December 31, 2024	$	369,162	$	10,321,671	$	339,646	$	552,797	$	810,431	$	455,726	$	665,565	$	700,942	$	3,140,267	$	17,356,207
Transfers:
Transfers out of Level 3(I)	—		—		—		—		(785,253)		(858)		—		—		—		(786,111)
Transfers to Level 3	—		—		—		—		21,809		2,081		—		—		—		23,890

Gain (Loss) Included in Net Income:
Credit losses on securities(E)	—		—		—		(603)		—		—		—		—		—		(603)
Servicing Revenue, Net(F):
Included in servicing revenue(F)	—		(733,101)		—		—		—		—		—		—		—		(733,101)
Fair Value Adjustments due to:
Other factors(E)	(1,605)		—		(1,527)		3,976		—		12,840		(13,323)		42,736		11,066		54,163
Instrument-specific credit risk(E)	—		—		—		—		—		(6,450)		(6,388)		—		(15,818)		(28,656)

Other income (loss), net(E)	—		—		—		—		404		1,760		—		17,816		—		19,980
Gains (losses) included in OCI(G)	—		—		—		7,950		—		—		—		—		—		7,950
Interest income	13,299		—		10,600		16,572		—		—		6,700		119		—		47,290
Purchases, Sales and Repayments:
Purchases, net(H)	—		—		350,377		210,826		88,157		538		—		46,699		—		696,597
Sales and settlement fundings	(45)		2,524		—		—		(47,695)		(7,216)		11,669		—		—		(40,763)
Proceeds from repayments	(35,134)		—		(386,110)		(52,375)		—		(32,473)		(198,992)		(44,762)		(1,373,884)		(2,123,730)
Originations and other	—		768,969		—		—		—		4,246		—		(2,959)		1,703,594		2,473,850
Balance at June 30, 2025	$	345,677	$	10,360,063	$	312,986	$	739,143	$	87,853	$	430,194	$	465,231	$	760,591	$	3,465,225	$	16,966,963

(A)Includes the recapture agreement for each respective pool, as applicable.

(B)Includes CLOs of consolidated CFEs classified as Level 3 in the fair value hierarchy.

(C)For the purpose of this table, the IRLC asset and liability positions and other commitment derivatives are shown net.

(D)Includes residential transition loans of consolidated CFEs classified as Level 3 in the fair value hierarchy.

(F)See Note 5 for further details on the components of servicing revenue, net.

(G)Gain (loss) included in unrealized gain (loss) on AFS securities, net in the consolidated statements of comprehensive income.

(H)Non-Agency securities includes securities retained through securitizations accounted for as sales.

(I)For the six months ended June 30, 2025, transfers out of Level 3 to Level 2 were primarily due to increased price transparency.


RITHM CAPITAL CORP. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
(dollars in tables in thousands, except share and per share data)


	Level 3
	Excess MSRs(A)(J)		MSRs and MSR Financing Receivables(A)		Servicer Advance Investments		Non-Agency Securities		CLOs(B)		Residential Mortgage Loans(K)		Consumer Loans		Other Assets(C)		Residential Transition Loans(D)		Total
Balance at March 31, 2024	$	255,111	$	8,706,723	$	374,511	$	581,539	$	211,996	$	703,549	$	1,103,799	$	504,248	$	2,384,744	$	14,826,220
Transfers:
Transfers out of Level 3	—		—		(7,873)		—		—		(142,046)		—		—		—		(149,919)
Transfers to Level 3	—		—		—		—		—		1,283		—		—		—		1,283
Computershare Acquisition (Note 3)	(1,032)		697,494		—		—		—		—		—		—		—		696,462
Gain (Loss) Included in Net Income:
Credit losses on securities(E)	—		—		—		(252)		—		—		—		—		—		(252)
Servicing Revenue, Net(F):
Included in servicing revenue(F)	—		(76,924)		—		—		—		—		—		—		—		(76,924)
Fair Value Adjustments due to:
Other factors(E)	22,914		—		(1,727)		(2,860)		—		(874)		(12,599)		(1,650)		13,855		17,059
Instrument-specific credit risk(E)	—		—		—		—		—		19,919		(8,673)		—		(3,176)		8,070
Gain (loss) on settlement of investments, net(E)	(656)		—		—		—		—		—		—		—		—		(656)
Other income (loss), net(E)	—		—		—		939		4,646		2,524		—		(9,280)		—		(1,171)
Gains (losses) included in OCI(G)	—		—		—		278		(4,489)		—		—		—		—		(4,211)
Interest income	8,076		—		5,939		6,373		—		—		5,826		(209)		—		26,005
Purchases, Sales and Repayments:
Purchases, net(H)(I)	122,887		—		187,996		—		62,938		30,487		—		3,323		—		407,631
Sales and settlement fundings	—		1,733		—		—		—		(43,766)		5,985		—		—		(36,048)
Proceeds from repayments	(11,694)		—		(201,626)		(37,970)		(13,599)		(16,044)		(147,971)		(4,720)		(530,382)		(964,006)
Originations and other	—		364,305		—		—		—		(170,445)		—				676,328		870,188
Balance at June 30, 2024	$	395,606	$	9,693,331	$	357,220	$	548,047	$	261,492	$	384,587	$	946,367	$	491,712	$	2,541,369	$	15,619,731

(A)Includes the recapture agreement for each respective pool, as applicable.

(B)Includes CLOs of consolidated CFEs classified as Level 3 in the fair value hierarchy.

(C)For the purpose of this table, the IRLC asset and liability positions and other commitment derivatives are shown net.

(D)Includes residential transition loans of consolidated CFEs classified as Level 3 in the fair hierarchy.

(F)See Note 5 for further details on the components of servicing revenue, net.

(G)Gain (loss) included in unrealized gain (loss) on AFS securities, net in the consolidated statements of comprehensive income.

(H)Non-Agency securities includes securities retained through securitizations accounted for as sales.

(I)Net of purchase price adjustments and purchase price fully reimbursable from MSR sellers as a result of prepayment protection.

(J)Amounts include Rithm Capital’s portion of the Excess MSRs held by the respective joint ventures in which Rithm Capital has a 50% interest.

(K)For the three months ended June 30, 2024, transfers out of Level 3 to Level 2 were primarily due to increased price transparency.


RITHM CAPITAL CORP. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
(dollars in tables in thousands, except share and per share data)


	Level 3
	Excess MSRs(A)(J)		MSRs and MSR Financing Receivables(A)		Servicer Advance Investments		Non-Agency Securities		CLOs(B)		Residential Mortgage Loans(K)		Consumer Loans		Other Assets(C)		Residential Transition Loans(D)		Total
Balance at December 31, 2023	$	271,150	$	8,405,938	$	376,881	$	577,543	$	226,486	$	513,381	$	1,274,005	$	549,446	$	2,232,913	$	14,427,743
Transfers:
Transfers out of Level 3	—		—		(7,873)		—		—		(142,046)		—		—		—		(149,919)
Transfers to Level 3	—		—		—		—		—		1,389		—		—		—		1,389
Computershare Acquisition (Note 3)	(1,032)		697,494		—		—		—		—		—		—		—		696,462
Gain (Loss) Included in Net Income:
Credit losses on securities(E)	—		—		—		(914)		—		—		—		—		—		(914)
Servicing Revenue, Net(F):
Included in servicing revenue(F)	—		7,251		—		—		—		—		—		—		—		7,251
Fair Value Adjustments due to:
Other factors(E)	21,047		—		6,388		—		—		8,748		(19,755)		(67)		14,995		31,356
Instrument-specific credit risk(E)	—		—		—		—		—		15,893		(31,634)		—		10,557		(5,184)
Gain (loss) on settlement of investments, net(E)	(656)		—		—		—		36		—		—		—		—		(620)
Other income (loss), net(E)	—		—		—		939		4,646		4,348		—		(14,323)		—		(4,390)
Gains (losses) included in OCI(G)	—		—		—		1,880		(5,354)		—		—		—		—		(3,474)
Interest income	10,522		—		13,254		14,869		—		—		15,978		(62)		—		54,561
Purchases, Sales and Repayments:
Purchases, net(H)(I)	122,887		—		400,652		13,900		66,617		246,892		—		4,417		—		855,365
Sales and settlement fundings	—		2,404		—		—		—		(61,532)		10,098		—		—		(49,030)
Proceeds from repayments	(28,312)		—		(432,082)		(60,170)		(30,939)		(32,086)		(302,325)		(47,638)		(1,035,473)		(1,969,025)
Originations and other	—		580,244		—		—		—		(170,400)		—		(61)		1,318,377		1,728,160
Balance at June 30, 2024	$	395,606	$	9,693,331	$	357,220	$	548,047	$	261,492	$	384,587	$	946,367	$	491,712	$	2,541,369	$	15,619,731