SEGMENT REPORTING

12 Months Ended

Dec. 31, 2023

Segment Reporting [Abstract]

SEGMENT REPORTING

SEGMENT REPORTING

At December 31, 2023, Rithm Capital’s reportable segments included (i) Origination and Servicing, (ii) Investment Portfolio, (iii) Mortgage Loans Receivable, (iv) Asset Management and (v) Corporate. The Corporate segment primarily consists of general and administrative expenses, corporate cash and related interest income, unsecured senior notes (Note 19) and related interest expense.

In 2023, Rithm Capital reevaluated the composition and number of its reportable segments based on the significance of certain business activities to its operations and performance evaluation. Based on this reevaluation, the Company revised its presentation and composition of reportable segments. In conjunction with the Sculptor Acquisition (Note 3), the Company reevaluated portfolio management to reflect strategic growth as an asset manager, while maintaining its core business lines. The Asset Management segment is therefore added in 2023, to reflect operations of Sculptor. The Investment Portfolio consists of previously segregated segments (i) MSR Related Investments, (ii) Real Estate Securities, (iii) Properties and Residential Mortgage Loans, (iv) Consumer loans and (v) certain ancillary investments and equity method investments previously reflected within the Corporate segment. In addition, during the year ended December 31, 2023, Caliber was integrated into Newrez and the majority of the MSR portfolio is serviced by the Mortgage Company as a result of servicing transfers. To reflect the consolidation of assets and operations, the Mortgage Company is presented as one reportable segment within Origination and Servicing.

Segment information for prior periods have been restated to reflect these changes.

The following tables summarize segment financial information, which in total reconciles to the same data for Rithm Capital as a whole:

	Origination and Servicing		Investment Portfolio		Mortgage Loans Receivable		Asset Management		Corporate		Total
Year Ended December 31, 2023
Servicing fee revenue, net and interest income from MSRs and MSR financing receivables	$	1,488,911	$	371,344	$	—	$	—	$	—	$	1,860,255
Change in fair value of MSRs and MSR financing receivables (includes realization of cash flows of $(518,978))	(310,444)		(255,240)		—		—		—		(565,684)
Servicing revenue, net	1,178,467		116,104		—		—		—		1,294,571
Interest income	533,944		896,661		241,931		3,788		—		1,676,324
Gain on originated residential mortgage loans, held-for-sale, net	495,940		12,494		—		—		—		508,434
Other investment portfolio revenues	—		236,167		—		—		—		236,167
Asset management revenues	—		—		—		82,681		—		82,681
Total revenues	2,208,351		1,261,426		241,931		86,469		—		3,798,177
Interest expense	460,780		795,727		125,836		2,727		36,184		1,421,254
G&A and other	944,112		333,293		62,358		63,870		114,211		1,517,844
Total operating expenses	1,404,892		1,129,020		188,194		66,597		150,395		2,939,098
Realized and unrealized gains (losses), net	273		(30,843)		(14,726)		8,060		—		(37,236)
Other income (loss), net	(19,950)		(29,465)		6,209		557		(26,361)		(69,010)
Total other income (loss)	(19,677)		(60,308)		(8,517)		8,617		(26,361)		(106,246)
Income (loss) before income taxes	783,782		72,098		45,220		28,489		(176,756)		752,833
Income tax (benefit) expense	107,617		(7,457)		(5,122)		27,121		—		122,159
Net income (loss)	$	676,165	$	79,555	$	50,342	$	1,368	$	(176,756)	$	630,674
Noncontrolling interests in income (loss) of consolidated subsidiaries	581		7,471		—		365		—		8,417
Dividends on preferred stock	—		—		—		—		89,579		89,579
Net income (loss) attributable to common stockholders	$	675,584	$	72,084	$	50,342	$	1,003	$	(266,335)	$	532,678

	Origination and Servicing		Investment Portfolio		Mortgage Loans Receivable		Asset Management		Corporate		Total
December 31, 2023
Investments	$	9,413,923	$	13,743,465	$	2,232,913	$	226,486	$	—	$	25,616,787
Cash and cash equivalents	548,666		442,015		58,628		230,008		7,882		1,287,199
Restricted cash	195,490		144,169		37,805		8,156		—		385,620
Other assets	3,489,171		3,083,967		113,055		1,183,646		20,483		7,890,322
Goodwill	24,376		5,092		55,731		46,658		—		131,857
Total assets	$	13,671,626	$	17,418,708	$	2,498,132	$	1,694,954	$	28,365	$	35,311,785
Debt	$	6,920,310	$	14,180,827	$	1,856,006	$	455,512	$	546,818	$	23,959,473
Other liabilities	3,224,989		223,266		23,979		565,919		213,121		4,251,274
Total liabilities	10,145,299		14,404,093		1,879,985		1,021,431		759,939		28,210,747
Total equity	3,526,327		3,014,615		618,147		673,523		(731,574)		7,101,038
Noncontrolling interests in equity of consolidated subsidiaries	8,220		44,905		—		40,971		—		94,096
Total Rithm Capital stockholders’ equity	$	3,518,107	$	2,969,710	$	618,147	$	632,552	$	(731,574)	$	7,006,942
Investments in equity method investees	$	—	$	110,883	$	—	$	91,563	$	—	$	202,446

	Origination and Servicing		Investment Portfolio		Mortgage Loans Receivable		Asset Management		Corporate		Total
Year Ended December 31, 2022
Servicing fee revenue, net and interest income from MSRs and MSR financing receivables	$	1,348,984	$	482,980	$	—	$	—	$	—	$	1,831,964
Change in fair value of MSRs and MSR financing receivables (includes realization of cash flows of $(631,120))	729,844		(2,510)		—		—		—		727,334
Servicing revenue, net	2,078,828		480,470		—		—		—		2,559,298
Interest income	326,634		582,590		166,479		—		278		1,075,981
Gain on originated residential mortgage loans, held-for-sale, net	1,127,282		(41,050)		—		—		—		1,086,232
Other investment portfolio revenues	—		230,905		—		—		—		230,905
Asset management revenues	—		—		—		—		—		—
Total revenues	3,532,744		1,252,915		166,479		—		278		4,952,416
Interest expense	325,056		365,211		64,188		—		36,546		791,001
G&A and other	1,638,989		352,407		64,277		—		497,375		2,553,048
Total operating expenses	1,964,045		717,618		128,465		—		533,921		3,344,049
Realized and unrealized gains (losses), net	(1,812)		(226,870)		28,434		—		67		(200,181)
Other income (loss), net	6,270		(144,728)		12,243		—		(19,170)		(145,385)
Total other income (loss)	4,458		(371,598)		40,677		—		(19,103)		(345,566)
Income (loss) before income taxes	1,573,157		163,699		78,691		—		(552,746)		1,262,801
Income tax (benefit) expense	327,318		35,378		(7,792)		—		(75,388)		279,516
Net income (loss)	$	1,245,839	$	128,321	$	86,483	$	—	$	(477,358)	$	983,285
Noncontrolling interests in income (loss) of consolidated subsidiaries	2,716		26,050		—		—		—		28,766
Dividends on preferred stock	—		—		—		—		89,726		89,726
Net income (loss) attributable to common stockholders	$	1,243,123	$	102,271	$	86,483	$	—	$	(567,084)	$	864,793

	Origination and Servicing		Investment Portfolio		Mortgage Loans Receivable		Asset Management		Corporate		Total
December 31, 2022
Investments	$	9,371,435	$	12,993,131	$	2,064,028	$	—	$	—	$	24,428,594
Cash and cash equivalents	604,191		666,810		52,441		—		13,066		1,336,508
Restricted cash	161,249		94,508		25,369		—		—		281,126
Other assets	2,428,832		3,720,905		170,129		—		28,043		6,347,909
Goodwill	24,376		5,092		55,731		—		—		85,199
Total assets	$	12,590,083	$	17,480,446	$	2,367,698	$	—	$	41,109	$	32,479,336
Debt	$	6,660,484	$	12,962,616	$	1,733,579	$	—	$	545,056	$	21,901,735
Other liabilities	2,295,684		1,086,248		25,818		—		159,783		3,567,533
Total liabilities	8,956,168		14,048,864		1,759,397		—		704,839		25,469,268
Total equity	3,633,915		3,431,582		608,301		—		(663,730)		7,010,068
Noncontrolling interests in equity of consolidated subsidiaries	12,437		54,630		—		—		—		67,067
Total Rithm Capital stockholders’ equity	$	3,621,478	$	3,376,952	$	608,301	$	—	$	(663,730)	$	6,943,001
Investments in equity method investees	$	—	$	96,210	$	—	$	—	$	—	$	96,210

	Origination and Servicing		Investment Portfolio		Mortgage Loans Receivable		Asset Management		Corporate		Total
Year Ended December 31, 2021
Servicing fee revenue, net and interest income from MSRs and MSR financing receivables	$	950,962	$	608,592	$	—	$	—	$	—	$	1,559,554
Change in fair value of MSRs and MSR financing receivables (includes realization of cash flows of $(1,192,646))	(306,259)		(271,504)		—		—		—		(577,763)
Servicing revenue, net	644,703		337,088		—		—		—		981,791
Interest income	208,682		597,995		4,219		—		—		810,896
Gain on originated residential mortgage loans, held-for-sale, net	1,806,127		20,782		—		—		—		1,826,909
Other investment portfolio revenues	—		165,480		—		—		—		165,480
Asset management revenues	—		—		—		—		—		—
Total revenues	2,659,512		1,121,345		4,219		—		—		3,785,076
Interest expense	219,088		241,068		1,000		—		36,152		497,308
G&A and other	1,534,266		464,201		1,802		—		119,495		2,119,764
Total operating expenses	1,753,354		705,269		2,802		—		155,647		2,617,072
Realized and unrealized gains (losses), net	(12,162)		(195,104)		—		—		(171)		(207,437)
Other income (loss), net	(10,484)		12,687		—		—		1,038		3,241
Total other income (loss)	(22,646)		(182,417)		—		—		867		(204,196)
Income (loss) before income taxes	883,512		233,659		1,417		—		(154,780)		963,808
Income tax (benefit) expense	133,117		25,109		—		—		—		158,226
Net income (loss)	$	750,395	$	208,550	$	1,417	$	—	$	(154,780)	$	805,582
Noncontrolling interests in income (loss) of consolidated subsidiaries	11,298		22,058		—		—		—		33,356
Dividends on preferred stock	—		—		—		—		66,744		66,744
Net income (loss) attributable to common stockholders	$	739,097	$	186,492	$	1,417	$	—	$	(221,524)	$	705,482