Rithm Capital Corp.RITM
NYSE•Real Estate•REIT - Mortgage
Rithm Capital Corp. operates as an asset manager focused on real estate, credit, and financial services in the United States. It operates through Origination and Servicing, Residential Transitional Lending, and Asset Management and Investment Portfolio. The company's investment portfolio primarily comprises of single-family rental properties, title, appraisal and property preservation and maintenance businesses; real estate securities, call rights, SFR properties, residential mortgage loans, collateralized loan obligations and consumer loans, excess mortgage servicing rights, servicer advance investments, and asset management related investments. It also provides government-sponsored enterprise (GSE) and government guaranteed loans; non-GSE or non-government guaranteed loans; and residential transitional lending. The company qualifies as a real estate investment trust for federal income tax purposes. It generally would not be subject to federal corporate income taxes if it distributes at least 90% of its taxable income to its stockholders. The company was formerly known as New Residential Investment Corp. and changed its name to Rithm Capital Corp. in August 2022. Rithm Capital Corp. was incorporated in 2011 and is based in New York, New York.
Rithm Capital Corp. (RITM) reported trailing twelve months revenue of $5.20B as of March 2026, a 11.0% increase year-over-year. Quarterly revenue reached $1.38B, reflecting continued top-line momentum.
Rithm Capital Corp. generated $720.92M in TTM net income, with quarterly EBITDA of $220.01M. The operating margin expanded from 6.2% to 9.2%, suggesting improving cost efficiency and pricing discipline.
The spread between operating margin (9.2%) and net margin (7.4%) indicates tight cost control with minimal non-operating drag. Net margin has narrowed from 10.3% a year ago, reflecting increased costs or interest expense.
RITM trades at a P/E of 7.1x (below the broader market average) and a P/S of 1.0x. The price-to-book ratio of 0.6x suggests the stock trades below its book value.
The company generated $100.69M in free cash flow over the trailing twelve months, a 92.9% decrease year-over-year, indicating cash generation ability. The balance sheet shows $53.37B in total assets with $35.16B in long-term debt against $8.61B in stockholders equity for a debt-to-equity ratio of 4.1, a relatively leveraged position. Data based on the most recent quarterly reports.
Competitive analysis based on 21 quarters of fundamental data
Operating margins are expanding at ~15.3%, suggesting durable pricing power and cost discipline.
ROE is positive at ~9.5% on average, adequate but below the threshold typically associated with wide moats.
Only 3 of the last 8 quarters had positive FCF — the business may require external capital to sustain operations.
Revenue has grown modestly overall (~15.8%) but trajectory is uneven, suggesting a competitive or cyclical business.
Data-driven red flags and warnings across 21 quarters
Margins are stable or improving at ~16.0% — no sign of cost or pricing stress.
Free cash flow has been negative in 5 of the last 8 quarters — earnings are not translating to cash.
D/E ratio is 4.1 — dangerously high. The company is heavily leveraged and vulnerable to rising rates or cash flow dips.
Revenue is stable or growing over recent quarters — demand appears durable.
5 of the last 8 quarters had negative FCF — inconsistent cash generation raises sustainability concerns.
Shares outstanding increased 14.4% — significant dilution, likely from stock compensation or capital raises.