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SEGMENT REPORTING
 3 Months Ended
Mar. 31, 2025
Segment Reporting [Abstract]  
SEGMENT REPORTING 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 title of the Mortgage Loans Receivable segment was changed to Residential Transitional Lending.

During the first quarter of 2025 and in future periods, new purchases of government and government-backed securities will be 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.

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 ServicingInvestment PortfolioResidential Transitional LendingAsset ManagementCorporate CategoryTotal
Three Months Ended March 31, 2025
Servicing fee revenue, net and interest income from MSRs and MSR financing receivables$570,801 $— $— $— $— $570,801 
Change in fair value of MSRs and MSR financing receivables (includes realization of cash flows of $(146,891))
(541,916)— — — — (541,916)
Servicing revenue, net28,885 — — — — 28,885 
Interest income292,561 71,790 66,508 9,413 988 441,260 
Gain on originated residential mortgage loans, held-for-sale, net151,494 8,295 — — — 159,789 
Other revenues25,738 25,035 — — — 50,773 
Asset management revenues— — — 87,672 — 87,672 
Total Revenues498,678 105,120 66,508 97,085 988 768,379 
Interest expense and warehouse line fees292,948 59,636 31,701 14,089 20,680 419,054 
Other segment expenses(A)
143,767 22,992 4,831 31,591 9,797 212,978 
Compensation and benefits172,702 1,162 14,391 65,330 17,882 271,467 
Depreciation and amortization7,659 7,954 1,567 7,384 4 24,568 
Total Operating Expenses617,076 91,744 52,490 118,394 48,363 928,067 
Realized and unrealized gains (losses), net208,538 3,094 2,043 (6,280)— 207,395 
Other income (loss), net(118)1,489 (141)7,838 5 9,073 
Total Other Income208,420 4,583 1,902 1,558 5 216,468 
Income (Loss) before Income Taxes90,022 17,959 15,920 (19,751)(47,370)56,780 
Income tax expense (benefit)(56,694)(8,512)(1,090)42,366 — (23,930)
Net Income (Loss)146,716 26,471 17,010 (62,117)(47,370)80,710 
Noncontrolling interests in income of consolidated subsidiaries354 728 — 4 — 1,086 
Redeemable noncontrolling interests in income of consolidated subsidiaries— — — 3 810 813 
Net Income (Loss) Attributable to Rithm Capital Corp.146,362 25,743 17,010 (62,124)(48,180)78,811 
Change in redemption value of redeemable noncontrolling interests— — — — 15,611 15,611 
Dividends on preferred stock— — — — 26,677 26,677 
Net Income (Loss) Attributable to Common Stockholders$146,362 $25,743 $17,010 $(62,124)$(90,468)$36,523 
(A)The Origination and Servicing segment’s other segment expenses primarily include expenses related to loan origination and servicing, information technology, occupancy and legal and professional services. The Investment Portfolio segment’s other segment expenses primarily include expenses related to loan servicing and property and maintenance. The Residential Transitional Lending segment’s other segment expenses primarily include expenses related to loan origination, occupancy and information technology. The Asset Management segment’s other segment expenses primarily include expenses related to legal and professional services, information technology and occupancy.
Origination and ServicingInvestment PortfolioResidential Transitional LendingAsset ManagementCorporate CategoryTotal
March 31, 2025
Investments$22,756,176 $3,502,073 $2,335,218 $— $— $28,593,467 
Cash and cash equivalents1,000,135 24,149 47,107 130,300 292,143 1,493,834 
Restricted cash174,176 52,068 34,673 19,971 230,810 511,698 
Other assets6,166,441 2,271,563 204,183 977,086 4,938 9,624,211 
Goodwill29,468 — 55,731 48,633 — 133,832 
Assets of consolidated CFEs(A)
— 2,718,096 990,168 1,264,537 — 4,972,801 
Total Assets$30,126,396 $8,567,949 $3,667,080 $2,440,527 $527,891 $45,329,843 
Debt$20,352,469 $4,252,015 $1,934,141 $451,192 $1,034,959 $28,024,776 
Other liabilities4,248,496 419,235 26,469 (12,881)251,701 4,933,020 
Liabilities of consolidated CFEs(A)
— 2,310,483 860,843 1,059,467 — 4,230,793 
Total Liabilities24,600,965 6,981,733 2,821,453 1,497,778 1,286,660 37,188,589 
Redeemable Noncontrolling Interests of Consolidated Subsidiaries— — — 25,604 230,810 256,414 
Total Stockholders’ Equity5,525,431 1,586,216 845,627 917,145 (989,579)7,884,840 
Noncontrolling interests in equity of consolidated subsidiaries9,100 58,688 — 40,928 — 108,716 
Stockholders’ Equity in Rithm Capital Corp.$5,516,331 $1,527,528 $845,627 $876,217 $(989,579)$7,776,124 
Investments in Equity Method Investees$25,179 $294,756 $14,407 $205,573 $— $539,915 
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.
Origination and ServicingInvestment PortfolioResidential Transitional LendingAsset ManagementCorporate CategoryTotal
Three Months Ended March 31, 2024
Servicing fee revenue, net and interest income from MSRs and MSR financing receivables$469,891 $— $— $— $— $469,891 
Change in fair value of MSRs and MSR financing receivables (includes realization of cash flows of $(116,839))
84,175 — — — — 84,175 
Servicing revenue, net554,066 — — — — 554,066 
Interest income275,205 89,959 64,720 4,909 2 434,795 
Gain (loss) on originated residential mortgage loans, held-for-sale, net145,869 (3,411)— — — 142,458 
Other revenues32,379 25,969 — — — 58,348 
Asset management revenues— — — 70,951 — 70,951 
Total Revenues1,007,519 112,517 64,720 75,860 2 1,260,618 
Interest expense and warehouse line fees288,856 70,392 32,414 7,621 10,544 409,827 
Other segment expenses(A)
114,506 21,541 3,187 23,922 9,944 173,100 
Compensation and benefits157,981 568 11,303 63,112 2,814 235,778 
Depreciation and amortization14,630 7,742 1,567 8,013 — 31,952 
Total Operating Expenses575,973 100,243 48,471 102,668 23,302 850,657 
Realized and unrealized gains (losses), net(65,257)2,687 24,566 (6,842)— (44,846)
Other income, net25 11,479 274 3,969 37 15,784 
Total Other Income (Loss)(65,232)14,166 24,840 (2,873)37 (29,062)
Income (Loss) before Income Taxes366,314 26,440 41,089 (29,681)(23,263)380,899 
Income tax expense (benefit)96,201 1,248 (333)(3,704)— 93,412 
Net Income (Loss)270,113 25,192 41,422 (25,977)(23,263)287,487 
Noncontrolling interests in income of consolidated subsidiaries55 2,037 — 1,360 — 3,452 
Net Income (Loss) Attributable to Rithm Capital Corp.270,058 23,155 41,422 (27,337)(23,263)284,035 
Dividends on preferred stock— — — — 22,395 22,395 
Net Income (Loss) Attributable to Common Stockholders$270,058 $23,155 $41,422 $(27,337)$(45,658)$261,640 
(A)The Origination and Servicing segment’s other segment expenses primarily include expenses related to loan origination and servicing, information technology, occupancy and legal and professional services. The Investment Portfolio segment’s other segment expenses primarily include expenses related to loan servicing and property and maintenance. The Residential Transitional Lending segment’s other segment expenses primarily include expenses related to loan origination, occupancy and information technology. The Asset Management segment’s other segment expenses primarily include expenses related to legal and professional services, information technology and occupancy.