Operating cash flow remains highly erratic, evidenced by a $2.0 billion outflow in 2025Q3 compared to a $1.4 billion inflow in 2025Q1, highlighting the difficulty in predicting true cash generation.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 |
|---|
| Cash from Operations | -2.46B | -762.62M | -2.19B | 693.6M | 5.75B | 2.88B | 1.86B | -1.62B | -1.23B | -899.72M | 560.8M | 320.76M | 155.37M | 152.94M | 41.86M |
| Operating CF Growth % | -940.39% | 65.1% | -415.05% | -87.94% | 99.48% | 55.39% | 214.38% | -32.01% | -36.61% | -260.44% | 74.83% | 106.45% | 1.59% | 265.38% | - |
| Operating CF / Revenue % | -43.79% | -13.41% | -46.12% | 18.46% | 344.73% | 99.57% | 127.58% | -56.19% | -51.93% | -46.2% | 47.9% | 47.59% | 32.52% | 109.07% | 99.29% |
| Net Income | 727.72M | 125.87M | 941.49M | 630.67M | 983.28M | 805.58M | -1.36B | 605.93M | 1B | 1.01B | 582.72M | 281.88M | 442.1M | 265.62M | 41.25M |
| Depreciation & Amortization | 92.64M | 0 | 0 | 0 | 0 | 6.07M | -184.18M | -675.79M | -219.39M | -573.83M | -195.35M | -114.47M | 0 | 0 | 0 |
| Stock-Based Compensation | 0 | 1.32B | 0 | 0 | 0 | 1.11M | 1.21M | 1.05M | 1.02M | 699K | 300K | 450K | 453K | 78K | 0 |
| Other Non-Cash Items | -2.87B | -2.15B | -3.01B | 296.76M | 4.24B | 1.1B | 3.15B | -1.67B | -2.32B | -1.51B | -115.91M | 3.92M | -361.83M | -133.6M | -45.79M |
| Working Capital Changes | -565.39M | -150.51M | -374.88M | -323.84M | 261.95M | 824.74M | 228.75M | 64.48M | 386.54M | 4.83M | 254.2M | 155.6M | 59.54M | 20.84M | 4.54M |
| Cash from Investing | 3.15B | 2.24B | -2.43B | 216.72M | 132.9M | 2.31B | 8.65B | -10.95B | -5.17B | -1.78B | -182.58M | -312.74M | -2.01B | -993.45M | 0 |
| Acquisitions (Net) | -1.06B | -1.06B | -603.78M | -306.77M | 0 | -1.17B | 539.89M | -1.22B | -123.19M | 1.66B | -55.52M | -960.72M | 94.11M | 297.2M | 0 |
| Purchase of Investments | -2.3B | -4.91B | -14.39B | -5.95B | -16.62B | -7.59B | -24.75B | -38.29B | -15.65B | -24.07B | -24.75B | -20.9B | -10.12B | -1.15B | 0 |
| Sale of Investments | 9.58B | 8.77B | 12.21B | 4.37B | 16.94B | 11.97B | 33.39B | 29.4B | 11.33B | 23.93B | 24.89B | 21.21B | 8.94B | 994.67M | 0 |
| Other Investing | -3.07B | -561.89M | 489.65M | -3.85B | -183.85M | -880.68M | 6.96M | 616.15M | 464.78M | -1.64B | 259.51M | 594.58M | -833.45M | -839.39M | 0 |
| Cash from Financing | -320.12M | -602.12M | 4.83B | -842.55M | -5.82B | -4.74B | -10.11B | 12.85B | 6.37B | 2.67B | -269.15M | 28.93M | 1.8B | 1.11B | 0 |
| Dividends Paid | -658.7M | -643.2M | -588.06M | -570.88M | -558.3M | -438.54M | -383.57M | -817.12M | -661.86M | -570.23M | -433.41M | -303.02M | -227.65M | -62.02M | 0 |
| Common Dividends | -658.7M | -643.2M | -588.06M | -570.88M | -558.3M | -375.87M | -332.48M | -807.79M | -661.86M | -570.23M | -433.41M | -303.02M | -227.65M | -62.02M | 0 |
| Debt Issuance (Net) | 4M | -1000K | 1000K | -1000K | -1000K | -1000K | -1000K | 1000K | 1000K | 1000K | -1000K | -1000K | 1000K | 1000K | 0 |
| Share Repurchases | 0 | -50M | 0 | 0 | -5.23M | 0 | -7.46M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -5.68B | 224.43M | 1.12B | 270.02M | 1.43B | 121.02M | -556.67M | 10.74B | 4.8B | -155.22M | -102.69M | -126.2M | 1.43B | 810.16M | 0 |
| Net Change in Cash | 372.4M | 871.6M | 220.71M | 67.77M | 67.72M | 447.97M | 389.54M | 275.86M | -30.97M | -7.65M | 109.06M | 36.95M | -59.01M | 1.11B | 41.86M |
| Exchange Rate Effect | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 840.51M | 0 |
| Cash at Beginning | 2.79B | 1.92B | 1.7B | 1.63B | 1.56B | 1.08B | 690.93M | 415.08M | 446.05M | 453.7M | 344.64M | 212.99M | 271.99M | -840.51M | 0 |
| Cash at End | 2.46B | 2.79B | 1.92B | 1.7B | 1.63B | 1.53B | 1.08B | 690.93M | 415.08M | 446.05M | 453.7M | 249.94M | 212.99M | 271.99M | 41.86M |
| Free Cash Flow | -2.46B | -762.62M | -2.32B | 693.6M | 5.75B | 2.86B | 1.32B | -3.07B | -2.42B | -2.56B | 32M | 68.64M | 61.26M | -144.26M | 41.86M |
| FCF Growth % | -685.45% | 67.08% | -433.97% | -87.94% | 101.09% | 117.38% | 142.83% | -26.79% | 5.38% | -8104.89% | -53.38% | 12.04% | 142.47% | -444.64% | - |
| FCF / Revenue % | -43.83% | -13.41% | -48.88% | 18.46% | 344.73% | 98.77% | 90.46% | -106.41% | -102.4% | -131.52% | 2.73% | 10.18% | 12.82% | -102.88% | 99.29% |
Interest rate volatility exposure
As reported in recent SEC filings, RITM's GAAP operating cash flow exhibits extreme volatility, with quarterly swings ranging from a $2.0 billion outflow in 2025Q3 to a $1.4 billion inflow in 2025Q1, highlighting the limited utility of GAAP metrics in assessing this mortgage-centric REIT's true performance.
The massive variance between GAAP operating cash flow and FFO suggests that working capital fluctuations, particularly related to mortgage servicing advances and fair value adjustments, heavily distort the cash flow statement. Investors should monitor this disconnect, as it implies that GAAP cash flow is an unreliable proxy for the company's ability to generate recurring earnings from its core servicing and investment platforms.
Based on the company's reported financial data, the dividend payout ratio relative to AFFO has fluctuated significantly, reaching a high of 2.22x in 2025Q1 and a low of 0.50x in 2025Q2, indicating that dividend sustainability is highly sensitive to the firm's quarterly earnings volatility.
While the 2026Q1 payout ratio of 0.85x suggests a temporary alignment between distributions and distributable cash, the historical inconsistency warrants caution. The reliance on AFFO as a primary coverage metric is essential, yet the firm's ongoing strategic transition may continue to create lumpy cash flows that challenge consistent dividend coverage.
According to financial statements, the divergence between GAAP Net Income and FFO is profound, with FFO/NI ratios reaching as high as 22.49 in 2025Q1, underscoring how non-cash fair value adjustments on MSRs and securities create significant noise in the company's reported bottom-line profitability.
This distortion suggests that GAAP Net Income is largely decoupled from the actual cash-generating capacity of the business. Analysts should prioritize FFO and AFFO to strip away these non-cash accounting impacts, as the GAAP figures appear to provide a misleading view of the firm's underlying operational health.
Financial disclosures indicate that RITM's cash flow statement often masks the liquidity requirements of its servicing platform, where the obligation to cover delinquent borrower payments can create sudden, non-linear cash outflows that are not captured by standard recurring maintenance capital expenditure metrics.
The periodic, large-scale swings in operating cash flow suggest that the firm's servicing advances act as a form of off-balance-sheet liquidity pressure. Investors should monitor the relationship between servicing volume and cash reserves, as these obligations may force the company to rely on external financing during periods of elevated borrower stress.
Quick answers to the most common questions about buying RITM stock.
Rithm Capital Corp. (RITM) generated $-762.6M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Rithm Capital Corp. (RITM) reported negative free cash flow of $762.6M in 2025, indicating capital requirements exceeded cash from operations.
Rithm Capital Corp. (RITM) spent $0.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Rithm Capital Corp. (RITM) returned $643.2M to shareholders via cash dividends and spent $50.0M on share repurchases. This shows the company's commitment to returning capital to its equity investors.