SEGMENT REPORTING (AS RESTATED)

12 Months Ended

Dec. 31, 2023

Segment Reporting [Abstract]

SEGMENT REPORTING (AS RESTATED)

SEGMENT REPORTING (AS RESTATED)

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 20) 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 4), 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.

As a result of the restatement, as discussed in Notes 3 and 28, the segment financial information was restated.

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 (As Restated)
Servicing fee revenue, net and interest income from MSRs and MSR financing receivables	$	1,488,911	$	370,446	$	—	$	—	$	—	$	1,859,357
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		115,206		—		—		—		1,293,673
Interest income	533,944		872,678		205,779		3,788		—		1,616,189
Gain on originated residential mortgage loans, held-for-sale, net	494,693		38,784		—		—		—		533,477
Other investment portfolio revenues	—		236,167		—		—		—		236,167
Asset management revenues	—		—		—		82,681		—		82,681
Total revenues	2,207,104		1,262,835		205,779		86,469		—		3,762,187
Interest expense and warehouse line fees	460,780		795,727		105,909		2,727		36,184		1,401,327
General and administrative	944,112		335,010		62,358		63,870		114,211		1,519,561
Total operating expenses	1,404,892		1,130,737		168,267		66,597		150,395		2,920,888
Realized and unrealized gains (losses), net	273		(29,289)		1,500		8,060		—		(19,456)
Other income (loss), net	(19,950)		(29,465)		6,209		557		(26,361)		(69,010)
Total other income (loss)	(19,677)		(58,754)		7,709		8,617		(26,361)		(88,466)
Income (loss) before income taxes	782,535		73,344		45,221		28,489		(176,756)		752,833
Income tax (benefit) expense	107,617		(7,457)		(5,122)		27,121		—		122,159
Net income (loss)	$	674,918	$	80,801	$	50,343	$	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	$	674,337	$	73,330	$	50,343	$	1,003	$	(266,335)	$	532,678

	Origination and Servicing		Investment Portfolio		Mortgage Loans Receivable		Asset Management		Corporate		Total
December 31, 2023 (As Restated)
Investments	$	9,413,923	$	13,322,960	$	1,879,319	$	226,486	$	—	$	24,842,688
Cash and cash equivalents	548,666		442,015		58,628		230,008		7,882		1,287,199
Restricted cash	195,490		144,169		30,233		8,156		—		378,048
Other assets	3,489,171		4,864,921		108,523		842,717		20,483		9,325,815
Goodwill	24,376		5,092		55,731		46,658		—		131,857
Assets of consolidated CFEs	—		3,044,850		365,698		340,929		—		3,751,477
Total assets	$	13,671,626	$	21,824,007	$	2,498,132	$	1,694,954	$	28,365	$	39,717,084
Debt	$	6,920,310	$	14,180,827	$	1,537,008	$	455,512	$	546,818	$	23,640,475
Other liabilities	3,224,989		2,004,220		23,608		345,999		213,121		5,811,937
Liabilities of consolidated CFEs	—		2,624,345		319,369		219,920		—		3,163,634
Total liabilities	10,145,299		18,809,392		1,879,985		1,021,431		759,939		32,616,046
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 (As Restated)
Servicing fee revenue, net and interest income from MSRs and MSR financing receivables	$	1,348,984	$	482,370	$	—	$	—	$	—	$	1,831,354
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		479,860		—		—		—		2,558,688
Interest income	326,634		566,232		145,315		—		278		1,038,459
Gain on originated residential mortgage loans, held-for-sale, net	1,127,282		(34,533)		—		—		—		1,092,749
Other investment portfolio revenues	—		230,905		—		—		—		230,905
Asset management revenues	—		—		—		—		—		—
Total revenues	3,532,744		1,242,464		145,315		—		278		4,920,801
Interest expense and warehouse line fees	325,056		365,211		50,980		—		36,546		777,793
General and administrative	1,638,989		354,122		64,277		—		497,375		2,554,763
Total operating expenses	1,964,045		719,333		115,257		—		533,921		3,332,556
Realized and unrealized gains (losses), net	(1,812)		(214,704)		36,390		—		67		(180,059)
Other income (loss), net	6,270		(144,728)		12,243		—		(19,170)		(145,385)
Total other income (loss)	4,458		(359,432)		48,633		—		(19,103)		(325,444)
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 (As Restated)
Investments	$	9,371,435	$	12,656,743	$	1,714,053	$	—	$	—	$	23,742,231
Cash and cash equivalents	604,191		666,810		52,441		—		13,066		1,336,508
Restricted cash	161,249		94,508		16,001		—		—		271,758
Other assets	2,428,832		3,720,905		169,894		—		28,043		6,347,674
Goodwill	24,376		5,092		55,731		—		—		85,199
Assets of consolidated entities	—		2,443,561		359,577		—		—		2,803,138
Total assets	$	12,590,083	$	19,587,619	$	2,367,697	$	—	$	41,109	$	34,586,508
Debt	$	6,660,484	$	12,962,616	$	1,420,661	$	—	$	545,056	$	21,588,817
Other liabilities	2,295,684		1,086,248		25,469		—		159,783		3,567,184
Liabilities of consolidated entities	—		2,107,173		313,266		—		—		2,420,439
Total liabilities	8,956,168		16,156,037		1,759,396		—		704,839		27,576,440
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 (As Restated)
Servicing fee revenue, net and interest income from MSRs and MSR financing receivables	$	950,962	$	607,861	$	—	$	—	$	—	$	1,558,823
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		336,357		—		—		—		981,060
Interest income	208,682		581,270		4,219		—		—		794,171
Gain on originated residential mortgage loans, held-for-sale, net	1,806,127		(18,276)		—		—		—		1,787,851
Other investment portfolio revenues	—		165,480		—		—		—		165,480
Asset management revenues	—		—		—		—		—		—
Total revenues	2,659,512		1,064,831		4,219		—		—		3,728,562
Interest expense and warehouse line fees	219,088		241,068		1,000		—		36,152		497,308
General and administrative	1,534,266		465,974		1,802		—		119,495		2,121,537
Total operating expenses	1,753,354		707,042		2,802		—		155,647		2,618,845
Realized and unrealized gains (losses), net	(12,162)		(136,817)		—		—		(171)		(149,150)
Other income (loss), net	(10,484)		12,687		—		—		1,038		3,241
Total other income (loss)	(22,646)		(124,130)		—		—		867		(145,909)
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