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Here are 1-3 brief analogies for Rithm Capital (RITM):

1. Like a specialized residential mortgage bank that's structured as a REIT.

2. Similar to a Blackstone Group, but entirely focused on investing in residential mortgages and mortgage companies, structured as a REIT.

3. Imagine a Berkshire Hathaway for the residential mortgage industry, owning lenders, servicers, and mortgage assets, and operating as a REIT.

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• Mortgage Servicing Rights (MSRs): Rithm Capital invests in the contractual rights to service mortgage loans for lenders.
• Mortgage Origination: Through its portfolio companies, Rithm Capital originates new mortgage loans for consumers.
• Mortgage Servicing: Through its portfolio companies, Rithm Capital provides services related to the administration and collection of mortgage payments.
• Residential Mortgage-Backed Securities (RMBS): The company invests in securities collateralized by residential mortgage loans.
• Properties and Loans: The company invests in real estate properties and various other loan types.
• Consumer Loans: The company invests in loans provided directly to consumers for personal use.

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Rithm Capital (RITM) primarily serves individual customers. Based on its operations through Origination, Servicing, Mortgage Loans, and Consumer Loans segments, its major customer categories are:

1. Residential Mortgage Borrowers: Individuals and families seeking to obtain new mortgage loans for purchasing homes or refinancing existing mortgages.
2. Consumer Loan Borrowers: Individuals seeking various types of non-mortgage personal loans.
3. Existing Homeowners (for Servicing): Individuals who have outstanding mortgage loans (whether originated by Rithm Capital or acquired by the company) and interact with its servicing operations for payment processing, escrow management, and general loan inquiries.

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Michael Nierenberg, Chief Executive Officer, President and Chairman

Mr. Nierenberg was appointed Chief Executive Officer and President of Rithm Capital in November 2013 and Chairman of the Board in May 2016. He has been with the company since 2013. Prior to Rithm Capital, he served as Managing Director and Head of Global Mortgages and Securitized Products at Bank of America Merrill Lynch, joining in November 2008. He previously led Global Securitized Products at J.P. Morgan and was a member of their investment bank's management committee. Mr. Nierenberg spent fourteen years at Bear Stearns in senior leadership positions, including Head of Interest Rate and Foreign Exchange Trading operations, Co-Head of Structured Products, and Co-Head of Mortgage-Backed Securities Trading, and was a member of Bear Stearns's Board of Directors from 2006 to 2008. He also spent seven years at Lehman Brothers, where he was instrumental in building the company's adjustable-rate mortgage business. Mr. Nierenberg became CEO of New Residential (which later became Rithm Capital) when it was a mortgage REIT at Fortress Investment Group, a private equity firm, where he quarterbacked the firm's mortgage-related assets. Rithm Capital originated as a spin-off from Newcastle Investment in 2013, with Mr. Nierenberg serving as its founding CEO.

Nick Santoro, Chief Financial Officer and Chief Accounting Officer

Mr. Santoro has served as the Chief Financial Officer, Chief Accounting Officer, and Treasurer of Rithm Capital since 2015. Before joining Rithm Capital, he was the Chief Accounting Officer at FXCM, Inc. from 2012 to September 2015. In this role, he was responsible for directing financial reporting, accounting, tax, and financial planning activities. From 2005 to 2012, Mr. Santoro was employed by Financial Guaranty Insurance Company, where he served as principal financial officer starting in 2008. He is a certified public accountant.

Varun Wadhawan, Managing Director, Corporate Strategy and M&A

Mr. Wadhawan has been a Managing Director at Rithm Capital since 2016. He leads Corporate Strategy and Mergers & Acquisitions for the company and has played a key role in the acquisition of various operating businesses. Prior to joining Rithm Capital, he spent 10 years at Bank of America Merrill Lynch in the Financial Institutions Investment Banking Group, where he executed numerous M&A and capital raising transactions. He also previously worked at American Express and KPMG. Mr. Wadhawan received an M.B.A. from Cornell University, is a member of the Institute of Chartered Accountants of India, and holds the Chartered Financial Analyst designation. He originally joined the company as a Managing Director in the Private Equity division of Fortress Investment Group, Rithm Capital's former external manager.

Charles Sorrentino, Managing Director, Head of Investments

Mr. Sorrentino has worked for Rithm Capital as a Managing Director since 2015. He serves as the Head of Investments and is responsible for managing all assets under management. Mr. Sorrentino possesses over 20 years of experience in capital markets. He spent 14 years in various senior leadership roles at Bank of America Merrill Lynch, and prior to that, he worked at Prudential Securities. He originally joined the company as a Managing Director in the Private Equity division of Fortress Investment Group, Rithm Capital's former external manager.

Sanjeev Khanna, Managing Director

Mr. Khanna is a Managing Director at Rithm Capital. Before joining Fortress Investment Group, Rithm Capital's former external manager, he served as a business leader at Morgan Stanley for over 20 years, working in various structured finance, fixed income, and capital markets groups. Mr. Khanna holds a B.S. in Industrial Engineering from Columbia University.

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Key Risks to Rithm Capital (RITM)

1. Interest Rate Risk and Market Volatility: As a company that invests significantly in mortgage servicing rights (MSRs), residential mortgage-backed securities (RMBS), and various loans, Rithm Capital's profitability and asset valuations are highly sensitive to changes in interest rates. Rising interest rates can decrease the value of certain mortgage-related assets and increase the company's borrowing costs, while falling interest rates can lead to increased mortgage prepayments, impacting MSR values. The company operates within a volatile market environment where fluctuating stock prices are influenced by various internal and external pressures.
2. Credit Risk and Housing Market Conditions: Rithm Capital's portfolio includes residential securities, mortgage loans, consumer loans, and single-family rental properties. Consequently, the company is exposed to the performance of the broader housing market and the creditworthiness of borrowers. A downturn in the housing market, characterized by declining property values or increased defaults on mortgage and consumer loans, would directly and negatively impact the value of its investments and could lead to higher credit losses.
3. High Levels of Debt: Rithm Capital carries significant indebtedness, including senior unsecured notes and non-recourse long-term financing. This substantial debt level can constrain the company's financial flexibility and its ability to react to market changes or pursue new investment opportunities due to associated restrictive covenants. High debt also translates to increased interest expenses, which can reduce profitability and limit the cash flow available for distribution to shareholders.

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• Expansion of the Alternative Asset Management Platform: Rithm Capital is significantly expanding its asset management capabilities, notably through the acquisition and integration of Sculptor Capital Management and Crestline Management. This strategy focuses on increasing Assets Under Management (AUM) by attracting institutional investors and launching new funds across various strategies, including multi-strategy credit, real estate, and MSR-focused funds. The company is also exploring new investment verticals such as energy transition and infrastructure. This growth in fee-paying AUM is critical to reducing cyclicality and growing stable earnings.
• Diversification and Growth in Mortgage Origination: The company is re-weighting its mortgage origination channels to diversify volumes away from refinance cycles. This involves a strategic focus on purchase, builder, non-agency (including non-qualified mortgage, jumbo, and DSCR loans), and correspondent channels. Rithm's Newrez unit has shown strong performance, with a focus on non-agency production demonstrating significant year-over-year growth.
• Consolidation and Scale in Mortgage Servicing: Rithm Capital is committed to growing and consolidating its mortgage servicing business. The acquisition of Specialized Loan Servicing (SLS) significantly expanded its servicing unpaid principal balance (UPB), combining with Newrez and Caliber to create one of the largest non-bank servicers in the U.S.. This consolidation aims to generate scale synergies and enhance servicing EBITDA.
• Strategic Mergers & Acquisitions and Internal Asset Generation: Rithm Capital actively pursues strategic acquisitions and bolt-on opportunities to widen fee pools and cross-sell opportunities. This includes evaluating targets in specialty servicing, mortgage technology/analytics, and niche credit origination (e.g., single-family rental, small-balance commercial real estate). Furthermore, the company emphasizes internally manufacturing assets, such as non-qualified mortgage loans and residential transitional loans through its Genesis Capital platform, to better manage asset quality and enhance control over asset creation.

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Share Repurchases

• In February 2025, Rithm Capital's Board of Directors authorized new stock repurchase programs of up to $200 million for common stock and up to $100 million for preferred stock, valid through December 31, 2025. These new programs replaced previous authorizations of the same amounts that expired at the end of 2024.
• During the first quarter of 2025, the company redeemed 2,000,000 shares of its Series A preferred stock for $50.0 million.

Share Issuance

• In September 2025, Rithm Capital completed a public offering of 7,600,000 shares of its 8.75% Series E Fixed-Rate Cumulative Redeemable Preferred Stock, generating gross proceeds of approximately $190,000,000. The proceeds were intended for investments and general corporate purposes.
• For the three months ended March 31, 2025, Rithm Capital issued 9.0 million shares of common stock under an "at-the-market" equity offering program, part of an authorization of up to $500.0 million.
• The number of shares outstanding for Rithm Capital increased by 9.31% to 0.546 billion in 2025, 3.28% to 0.5 billion in 2024, and 0.43% to 0.484 billion in 2023.

Outbound Investments

• In December 2025, Rithm Capital completed the acquisition of Crestline Management, L.P., an alternative investment manager with approximately $17 billion in assets under management.
• Also in December 2025, Rithm Capital finalized the acquisition of Paramount Group, Inc., a real estate investment trust focused on Class A office properties in New York City and San Francisco, for $1.6 billion.
• In November 2023, Rithm Capital completed the acquisition of Sculptor Capital Management for $720 million.

Capital Expenditures

• Rithm Capital's annual capital expenditures were $72.913 million for the period ending December 31, 2025.
• Annual capital expenditures were $458.236 million in 2024 and $106.351 million in 2023.