Rithm Capital Corp.

Rithm Capital reported second-quarter earnings that exceeded Wall Street expectations, driven by strong inflows into its asset management business. Earnings available for distribution came in at $0.60 per share, beating the consensus estimate of $0.50 and up from $0.51 in the first quarter. Revenue of $1.28 billion missed the $1.42 billion consensus and declined from $1.38 billion in the prior quarter, though asset management revenue rose to $142.2 million from $106.6 million and commercial real estate revenue edged up to $182.1 million from $178.3 million. Assets under management in the asset management segment reached approximately $61 billion as of June 30, 2026, up from $59 billion at the end of the first quarter, including $1.9 billion of gross inflows and new fund commitments. The Newrez unit posted a 22% annualized operating return on equity on $5.7 billion of equity, while total servicing unpaid principal balance slipped to $865.2 billion from $875.0 billion. Book value per share declined to $12.33 from $12.51 at the end of the prior quarter.

Rithm Capital stock appears undervalued on earnings multiples, passing all six valuation tests, yet ongoing funding needs keep risk in focus. The company trades at a price-to-earnings ratio of 8.6 times, well below the mortgage REIT industry average of 12.0 times and a modelled fair P/E of 15.7 times. Recent activity, including a public equity raise at Rithm Property Trust and a US$500 million Manhattan office refinancing, highlights capital requirements that may weigh on sentiment. The key question is whether the current discount represents a genuine mispricing or a fair cushion for execution and funding risks.

Rithm Capital is moving beyond a balance-sheet-heavy mortgage and real estate model by expanding its asset management platform, which had roughly $59 billion of assets under management as of March 31, 2026, up from $35 billion a year earlier. Sculptor and Crestline are central to this push, with combined managed assets of roughly $60 billion and additional fundraising underway. The company aims to build more scalable, fee-based earnings that are less dependent on deploying balance-sheet capital, contrasting with income tied to mortgage assets and fair-value changes. Newrez, Rithm's largest business, generated $273.7 million of pre-tax operating income in the first quarter of 2026, while technology-driven cost efficiencies reduced servicing costs per loan to $51 from $54 in the prior quarter. However, macro exposure remains significant, with nearly 20% of total assets tied to mortgage servicing rights and related financing receivables, and the company reported a $204.2-million negative fair-value change in those assets during the quarter. RITM currently carries a Zacks Rank #3 (Hold), and shares have declined 18.1% over the past year.

S&P Global declared a third-quarter 2026 cash dividend of $0.97 per share, payable September 10 to shareholders of record August 26, with an annualized rate of $3.88. Applied Industrial Technologies declared a quarterly cash dividend of $0.51 per share, payable August 31 to shareholders of record August 14. Korn Ferry declared a cash dividend of $0.55 per share, payable July 31 to shareholders of record July 6, and noted it repurchased 1.2 million shares during the quarter, bringing fiscal 2026 buybacks to 1.8 million shares. Rithm Capital declared a second-quarter 2026 common stock dividend of $0.25 per share, payable July 31 to shareholders of record July 2. Reaves Utility Income Fund announced a 5% increase in its annual distribution to $2.52, paid monthly at $0.21 per share, representing an annualized distribution rate of 6.12% based on a market price of $41.18 and net asset value of $41.86 as of June 17.

Rithm Capital Corp. declared its second quarter 2026 common and preferred stock dividends. The common stock dividend is $0.25 per share, payable on July 31, 2026 to shareholders of record on July 2, 2026. Preferred dividends were declared for six series: Series A at $0.6206601 per share, Series B at $0.6103101, Series C at $0.5674407, Series D at $0.4375000, Series E at $0.5468750, and Series F at $0.5468750, all payable on August 17, 2026 to preferred shareholders of record on August 1, 2026 with an effective record date of July 31, 2026.