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RITHM CAPITAL CORP earnings calls

RITM · every analyst question and management's answer

Oct 23, 2026 earnings call — Platform strength: asset management and servicing

Earnings available for distribution were $315 million while asset management reached $60+ billion of third-party AUM.

Revenue $1.8B (est $1.5B) · EPS $0.55 (est $0.50)

Key quotes

"Today, we stand at $60+ billion of third party AUM"

— Michael Nierenberg (CEO·CHAIR) · Asset management growth

"We estimate annualized savings from our technology and AI investments approximately $125 million"

— Baron Silverstein (PRESIDENT) · Technology and AI savings

"Year to date, we have executed leases, and have leases pending on approximately 1 million square feet across our New York and San Francisco core portfolio with a weighted average initial rent of approximately $100 per square foot,"

— Peter Brindley · Elecor leasing and rents

Analyst Q&A 9

plans to grow assets and products

Q (Douglas Harter · BTIG): They asked how management plans to grow AUM and which products have the most momentum now.

A: Management said they are building distribution with big wirehouses and launching products through large banks. They expect growth in capital solutions, ABS, real estate, credit, and multistrat, and will pursue acquisitions and an infrastructure capability.

"The product areas around what I would say the wealth side are things such as capital solutions, which take advantages of dislocations in markets." — Michael Nierenberg (CEO·CHAIR)

mortgage gain-on-sale and book value

Q (Bose George · KBW): He asked whether the higher gain-on-sale margin was mix or true improvement and about gain-on-sale trends for locks in Sept/Oct. He also asked if book value is stable quarter-to-date.

A: Management said the direct-to-consumer mix (more HE and non-QM) lifted returns, while wholesale is under margin pressure amid competition. They noted a material decline in production from September to October of about 25%, and said book value is roughly unchanged.

"You know, we have seen a pretty material, I will say, decline in production coming from September to October, and you are you are likely going to see something close to about 25%." — Michael Nierenberg (CEO·CHAIR)

infrastructure M&A and mortgage cost savings timing

Q (Crispin Love · Piper Sandler): He asked whether infrastructure would be bought at scale or built internally and whether digital/data center investing is of interest. He also asked timing and ROE impact of the $125 million cost savings.

A: Management said infrastructure would likely require scale, similar to other large acquisitions, not a tiny build. On mortgage savings, AI and the Valon platform should drive efficiency, and they expect savings to start showing in 2027 and continue into 2028.

"Couple that with the investment and you know, this company, Valon, that we are working with, which is really a tech company." — Michael Nierenberg (CEO·CHAIR)

Genesis originations and SF occupancy

Q (Kenneth Lee · RBC): He asked for updated originations outlook for Genesis given rates, and what could drive higher leased occupancy at Elecor properties in San Francisco.

A: Management said they expect production around $6 billion to $6.5 billion, with multifamily lending a key growth area and a shift of production into SMAs or funds. For San Francisco, management cited manageable lease rollover and strong tenant demand (about 10 million square feet) and active leasing to improve occupancy.

"So our goal there, you look at the business, if we are going to do, I think, the production numbers we will probably do is something between $6 billion and $6.5 billion of production." — Michael Nierenberg (CEO·CHAIR)

MSR prepay speeds and offset to originations

Q (Trevor Cranston · Citizens JMP): He asked how much lower MSR prepay speeds could go in Q4 and whether servicing benefits plus expense savings offset origination pressure.

A: Management said prepayment speeds are near a floor and not likely to slow much from September levels. They view the amortization versus origination offset as favorable and called the business balanced, emphasizing focus on margins rather than chasing volume.

"So yeah. I mean, I think you are kind of getting to the floor on speeds." — Baron Silverstein (PRESIDENT)

servicing offset versus origination volumes

Q (Trevor Cranston): He followed up asking for clarification on how the servicing book offsets origination volumes.

A: Management said they view results across the entire company when weighing servicing versus origination, implying the firm-level view determines allocation and actions.

investment portfolio deployment and policy impact

Q (UBS): She asked whether new deployment levels will grow the investment portfolio or if focus is on securitizing and recycling capital, and about impacts from recent housing policy moves.

A: Management said it's both: they will recycle the investment portfolio and use the balance sheet to support originations while being opportunistic to deploy capital where attractive. They also said they support FHFA initiatives (like Vantage score pilots) and would pass any insurance-premium savings to homeowners.

"I think it is a combination where we will use our balance sheet to continue to support our origination businesses We are gonna be opportunistic and look for areas where we could do." — Michael Nierenberg (CEO·CHAIR)

technology importance and liquidity for opportunistic buys

Q (Jason Stewart · Compass Point): He asked how important technology is for NewRez vs peers and how they think about liquidity to buy episodic opportunities like non-QM pools.

A: Management said technology spending and personnel are significant, and outsourcing to tech experts plus the Valon partnership drive efficiency and will improve ROE; they also said they will bring third-party capital alongside balance-sheet investments and keep the balance sheet clean, with MSRs currently large.

"The partnership with Valon should be extremely significant across our entire business as we go forward." — Michael Nierenberg (CEO·CHAIR)

REIT buying opportunities and correspondent economics

Q (Henry Coffey · Wedbush): He asked whether distressed REITs are buying opportunities or a warning, and how economics work for originating in a 7%+ mortgage market in the correspondent channel.

A: Management said there are few sellers among commercial REITs and they will only buy if credit underwrites and they avoid taking others' problem assets. On correspondent, they said they will buy or originate when MSR valuations and gain-on-sale margins make it attractive; otherwise they prefer to deploy capital into asset management or Genesis for mid-teens returns.

"If MSRs are cheap, you do it. And if not, and this is you know, Barron and I are on the same page in this." — Michael Nierenberg (CEO·CHAIR)

AI-generated notes on the earnings call transcript. Quotes are taken from the transcript. This is not a FolioObs investment view.

RITHM CAPITAL CORP (RITM) · Earnings calendar

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