SEGMENT REPORTING (Tables)

6 Months Ended

Jun. 30, 2024

Schedule of Segment Financial Information

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



	Origination and Servicing		Investment Portfolio		Mortgage Loans Receivable		Asset Management		Corporate		Total
Three Months Ended June 30, 2024
Servicing fee revenue, net and interest income from MSRs and MSR financing receivables	$	442,016	$	56,962	$	—	$	—	$	—	$	498,978
Change in fair value of MSRs and MSR financing receivables (includes realization of cash flows of $(165,138))	(127,401)		59,503		—		—		—		(67,898)
Servicing revenue, net	314,615		116,465		—		—		—		431,080
Interest income	178,445		235,662		59,573		4,971		2		478,653
Gain on originated residential mortgage loans, HFS, net	155,771		(2,030)		—		—		—		153,741
Other investment portfolio revenues	—		56,500		—		—		—		56,500
Asset management revenues	—		—		—		109,433		—		109,433
Total revenues	648,831		406,597		59,573		114,404		2		1,229,407
Interest expense and warehouse line fees	152,477		254,331		29,106		8,333		21,697		465,944
General and administrative	91,057		60,704		6,306		31,440		17,616		207,123
Compensation and benefits	184,853		3,478		9,113		51,982		21,022		270,448
Total operating expenses	428,387		318,513		44,525		91,755		60,335		943,515
Realized and unrealized gains (losses), net	—		(41,975)		18,739		8,467		—		(14,769)
Other income (loss), net	27,293		(8,810)		(2,116)		2,675		—		19,042
Total other income (loss)	27,293		(50,785)		16,623		11,142		—		4,273
Income (loss) before income taxes	247,737		37,299		31,671		33,791		(60,333)		290,165
Income tax expense (benefit)	38,960		2,909		1,952		7,827		—		51,648
Net income (loss)	208,777		34,390		29,719		25,964		(60,333)		238,517
Noncontrolling interests in income (loss) of consolidated subsidiaries	1,016		1,110		—		835		—		2,961
Dividends on preferred stock	—		—		—		—		22,395		22,395
Net income (loss) attributable to common stockholders	$	207,761	$	33,280	$	29,719	$	25,129	$	(82,728)	$	213,161



	Origination and Servicing		Investment Portfolio		Mortgage Loans Receivable		Asset Management		Corporate		Total
Six Months Ended June 30, 2024
Servicing fee revenue, net and interest income from MSRs and MSR financing receivables	$	839,494	$	129,375	$	—	$	—	$	—	$	968,869
Change in fair value of MSRs and MSR financing receivables (includes realization of cash flows of $(281,977))	(34,040)		50,317		—		—		—		16,277
Servicing revenue, net	805,454		179,692		—		—		—		985,146
Interest income	318,466		460,805		124,293		4,971		4		908,539
Gain on originated residential mortgage loans, HFS, net	301,640		(5,441)		—		—		—		296,199
Other investment portfolio revenues	—		114,848		—		—		—		114,848
Asset management revenues(A)	—		—		—		185,293		—		185,293
Total revenues	1,425,560		749,904		124,293		190,264		4		2,490,025
Interest expense and warehouse line fees	283,651		482,405		61,520		15,954		32,241		875,771
General and administrative	174,621		127,701		11,060		63,375		27,560		404,317
Compensation and benefits	338,659		8,221		20,416		115,094		23,836		506,226
Total operating expenses	796,931		618,327		92,996		194,423		83,637		1,786,314
Realized and unrealized gains (losses), net	—		(104,545)		43,305		1,625		—		(59,615)
Other income (loss), net	27,257		(5,128)		(1,842)		6,644		37		26,968
Total other income (loss)	27,257		(109,673)		41,463		8,269		37		(32,647)
Income (loss) before income taxes	655,886		21,904		72,760		4,110		(83,596)		671,064
Income tax expense (benefit)	135,161		4,157		1,619		4,123		—		145,060
Net income (loss)	520,725		17,747		71,141		(13)		(83,596)		526,004
Noncontrolling interests in income (loss) of consolidated subsidiaries	1,071		3,147		—		2,195		—		6,413
Dividends on preferred stock	—		—		—		—		44,790		44,790
Net income (loss) attributable to common stockholders	$	519,654	$	14,600	$	71,141	$	(2,208)	$	(128,386)	$	474,801

(A)Includes $4.9 million of asset management related interest income (Note 22).



	Origination and Servicing		Investment Portfolio		Mortgage Loans Receivable		Asset Management		Corporate		Total
June 30, 2024
Investments	$	11,635,825	$	13,633,989	$	2,049,266	$	—	$	—	$	27,319,080
Cash and cash equivalents	614,849		466,450		48,894		105,895		2,648		1,238,736
Restricted cash	153,526		94,085		36,020		13,324		—		296,955
Other assets	3,835,566		3,714,972		107,794		1,117,622		23,504		8,799,458
Goodwill	24,376		5,092		55,731		46,658		—		131,857
Assets of consolidated CFEs	—		3,359,187		519,604		354,012		—		4,232,803
Total assets	$	16,264,142	$	21,273,775	$	2,817,309	$	1,637,511	$	26,152	$	42,018,889
Debt	$	8,586,918	$	14,663,902	$	1,611,055	$	439,520	$	1,031,690	$	26,333,085
Other liabilities	3,669,928		551,537		21,963		234,000		211,929		4,689,357
Liabilities of consolidated CFEs	—		2,899,877		452,230		223,726		—		3,575,833
Total liabilities	12,256,846		18,115,316		2,085,248		897,246		1,243,619		34,598,275
Total equity	4,007,296		3,158,459		732,061		740,265		(1,217,467)		7,420,614
Noncontrolling interests in equity of consolidated subsidiaries	8,849		40,789		—		44,383		—		94,021
Total Rithm Capital stockholders’ equity	$	3,998,447	$	3,117,670	$	732,061	$	695,882	$	(1,217,467)	$	7,326,593
Investments in equity method investees	$	23,436	$	66,248	$	—	$	113,355	$	—	$	203,039

December 31, 2023 (As Restated)
Total Assets	$	13,671,626	$	21,824,007	$	2,498,132	$	1,694,954	$	28,365	$	39,717,084



	Origination and Servicing		Investment Portfolio		Mortgage Loans Receivable		Asset Management		Corporate		Total
Three Months Ended June 30, 2023 (As Restated)
Servicing fee revenue, net and interest income from MSRs and MSR financing receivables	$	359,854	$	105,493	$	—	$	—	$	—	$	465,347
Change in fair value of MSRs and MSR financing receivables (includes realization of cash flows of $(139,410))	45,767		(23,735)		—		—		—		22,032
Servicing revenue, net	405,621		81,758		—		—		—		487,379
Interest income	129,239		206,340		49,588		—		—		385,167
Gain on originated residential mortgage loans, HFS, net	144,318		34,266		—		—		—		178,584
Other investment portfolio revenues	—		59,209		—		—		—		59,209
Asset management revenues	—		—		—		—		—		—
Total revenues	679,178		381,573		49,588		—		—		1,110,339
Interest expense and warehouse line fees	110,219		181,085		24,359		—		8,572		324,235
General and administrative	75,538		85,624		4,440		—		16,316		181,918
Compensation and benefits	161,600		7,963		10,355		—		9,688		189,606
Total operating expenses	347,357		274,672		39,154		—		34,576		695,759
Realized and unrealized gains (losses), net	274		58,633		17,626		—		—		76,533
Other income (loss), net	(5,179)		(31,211)		(822)		—		(10,686)		(47,898)
Total other income (loss)	(4,905)		27,422		16,804		—		(10,686)		28,635
Income (loss) before income taxes	326,916		134,323		27,238				(45,262)		443,215
Income tax expense (benefit)	49,207		8,304		(981)		—		—		56,530
Net income (loss)	277,709		126,019		28,219		—		(45,262)		386,685
Noncontrolling interests in income (loss) of consolidated subsidiaries	386		6,503		—		—		—		6,889
Dividends on preferred stock	—		—		—		—		22,395		22,395
Net income (loss) attributable to common stockholders	$	277,323	$	119,516	$	28,219	$	—	$	(67,657)	$	357,401



	Origination and Servicing		Investment Portfolio		Mortgage Loans Receivable		Asset Management		Corporate		Total
Six Months Ended June 30, 2023 (As Restated)
Servicing fee revenue, net and interest income from MSRs and MSR financing receivables	$	709,278	$	225,726	$	—	$	—	$	—	$	935,004
Change in fair value of MSRs and MSR financing receivables (includes realization of cash flows of $(245,101))	8,241		(128,513)		—		—		—		(120,272)
Servicing revenue, net	717,519		97,213		—		—		—		814,732
Interest income	239,005		376,926		99,259		—		—		715,190
Gain on originated residential mortgage loans, HFS, net	252,539		35,313		—		—		—		287,852
Other investment portfolio revenues	—		117,353		—		—		—		117,353
Asset management revenues	—		—		—		—		—		—
Total revenues	1,209,063		626,805		99,259		—		—		1,935,127
Interest expense and warehouse line fees	221,288		338,995		50,198		—		17,969		628,450
General and administrative	156,370		160,317		8,569		—		24,141		349,397
Compensation and benefits	322,114		15,099		22,457		—		18,816		378,486
Total operating expenses	699,772		514,411		81,224		—		60,926		1,356,333
Realized and unrealized gains (losses), net	251		(6,250)		16,627		—		—		10,628
Other income (loss), net	(18,606)		(36,481)		891		—		(18,868)		(73,064)
Total other income (loss)	(18,355)		(42,731)		17,518		—		(18,868)		(62,436)
Income (loss) before income taxes	490,936		69,663		35,553		—		(79,794)		516,358
Income tax expense (benefit)	45,535		(2,736)		(3,075)		—		—		39,724
Net income (loss)	445,401		72,399		38,628		—		(79,794)		476,634
Noncontrolling interests in income (loss) of consolidated subsidiaries	344		5,245		—		—		—		5,589
Dividends on preferred stock	—		—		—		—		44,790		44,790
Net income (loss) attributable to common stockholders	$	445,057	$	67,154	$	38,628	$	—	$	(124,584)	426,255