NOI margins have experienced a sharp contraction from 97.5% in 2023Q4 to 68.8% by 2026Q1, suggesting that operational costs are increasingly outpacing income 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 |
|---|
| Revenue | 5.61B | 5.69B | 4.74B | 3.76B | 1.67B | 2.9B | 1.45B | 2.89B | 2.37B | 1.95B | 1.17B | 674.08M | 477.84M | 140.22M | 42.16M |
| Revenue Growth % | 6.66% | 19.99% | 26.13% | 125.13% | -42.38% | 99.1% | -49.62% | 22.01% | 21.54% | 66.33% | 73.69% | 41.07% | 240.77% | 232.61% | - |
| Property Operating Expenses | 773.43M | 541.23M | 265.12M | 176.45M | 641.52M | 342.58M | 305.33M | 430.58M | 378.32M | 355.92M | 136.14M | 56.46M | 77.9M | 32.19M | 3.35M |
| Net Operating Income (NOI) | 4.84B | 5.14B | 4.47B | 3.58B | 1.03B | 2.55B | 1.15B | 2.46B | 1.99B | 1.59B | 1.03B | 617.62M | 399.94M | 108.03M | 38.81M |
| NOI Margin % | 86.22% | 90.48% | 94.41% | 95.3% | 61.56% | 88.17% | 79.01% | 85.09% | 84.02% | 81.72% | 88.37% | 91.62% | 83.7% | 77.04% | 92.05% |
| Operating Expenses | 2.65B | 2.61B | 1.38B | 1.43B | -1.01B | 1.14B | 1.72B | 830.16M | 371.19M | -101.78M | -38.09M | 51.33M | -160.56M | -80.19M | 6.58M |
| G&A Expenses | 943.38M | 0 | 1.41B | 1.02B | 1.5B | 1.34B | 662.63M | 346.34M | 160.63M | 26.98M | 14.59M | 38.96M | 27M | 9.97M | 5.88M |
| EBITDA | 2.34B | 2.64B | 3.13B | 2.18B | 2.06B | 1.42B | -565.83M | 1.63B | 1.62B | 1.69B | 1.07B | 566.29M | 560.5M | 188.22M | 32.22M |
| EBITDA Margin % | 41.78% | 46.45% | 65.96% | 58.09% | 123.41% | 49.06% | -38.89% | 56.34% | 68.33% | 86.95% | 91.63% | 84.01% | 117.3% | 134.23% | 76.43% |
| Depreciation & Amortization | 159.06M | 107.48M | 30M | 28.2M | 18.9M | 6.07M | 625K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| D&A / Revenue % | 2.83% | 1.89% | 0.63% | 0.75% | 1.13% | 0.21% | 0.04% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% |
| Operating Income | 2.19B | 2.53B | 3.1B | 2.15B | 2.04B | 1.41B | -566.45M | 1.63B | 1.62B | 1.69B | 1.07B | 566.29M | 560.5M | 188.22M | 32.22M |
| Operating Margin % | 38.95% | 44.56% | 65.32% | 57.34% | 122.28% | 48.85% | -38.94% | 56.34% | 68.33% | 86.95% | 91.63% | 84.01% | 117.3% | 134.23% | 76.43% |
| Interest Expense | 4M | 440M | 1.89B | 1.4B | 777.79M | 497.31M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Coverage | - | 2.83x | 1.64x | 1.54x | 2.62x | 2.94x | - | - | - | - | - | - | - | - | - |
| Non-Operating Income | 430.16M | 1.29B | 0 | 0 | 0 | -46.26M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Pretax Income | 903.84M | 806.38M | 1.21B | 752.83M | 1.26B | 963.81M | -1.34B | 647.7M | 931.1M | 1.18B | 621.63M | 270.88M | 465.06M | 265.62M | 41.25M |
| Pretax Margin % | 16.11% | 14.18% | 25.51% | 20.04% | 75.67% | 33.28% | -92.16% | 22.43% | 39.34% | 60.71% | 53.09% | 40.19% | 97.33% | 189.43% | 97.84% |
| Income Tax | 156.98M | 88.29M | 267.32M | 122.16M | 279.52M | 158.23M | 16.92M | 41.77M | -73.43M | 167.63M | 38.91M | -11M | 22.96M | 0 | 0 |
| Effective Tax Rate % | 17.37% | 10.95% | 22.11% | 16.23% | 22.13% | 16.42% | -1.26% | 6.45% | -7.89% | 14.18% | 6.26% | -4.06% | 4.94% | 0% | 0% |
| Net Income | 727.72M | 681.45M | 931.5M | 622.26M | 954.52M | 772.23M | -1.41B | 563.3M | 963.97M | 957.53M | 504.45M | 268.64M | 352.88M | 265.95M | 41.25M |
| Net Margin % | 12.97% | 11.98% | 19.66% | 16.56% | 57.2% | 26.66% | -96.95% | 19.51% | 40.73% | 49.17% | 43.09% | 39.85% | 73.85% | 189.66% | 97.84% |
| Net Income Growth % | 2.4% | -26.84% | 49.7% | -34.81% | 23.61% | 154.75% | -350.38% | -41.56% | 0.67% | 89.82% | 87.78% | -23.87% | 32.69% | 544.77% | - |
| Funds From Operations (FFO) | 886.78M | 788.92M | 961.5M | 650.46M | 973.42M | 778.3M | -1.41B | -112.49M | 744.58M | 383.7M | 309.1M | 154.17M | 352.88M | 265.95M | 41.25M |
| FFO Margin % | 15.8% | 13.88% | 20.29% | 17.31% | 58.33% | 26.87% | -96.9% | -3.9% | 31.46% | 19.7% | 26.4% | 22.87% | 73.85% | 189.66% | 97.84% |
| FFO Growth % | 214.55% | -17.95% | 47.82% | -33.18% | 25.07% | 155.21% | -1153.21% | -115.11% | 94.05% | 24.14% | 100.49% | - | - | - | - |
| FFO per Share | 1.57 | 1.40 | 1.92 | 1.34 | 2.02 | 1.66 | -3.39 | -0.28 | 2.17 | 1.26 | 1.30 | 0.76 | 2.53 | 2.07 | 0.33 |
| FFO Payout Ratio % | 74.28% | 81.53% | 61.16% | 87.77% | 57.35% | 48.29% | -23.58% | -718.1% | 88.89% | 148.61% | 140.22% | 196.55% | 64.51% | 23.32% | 0% |
| EPS (Diluted) | 1.29 | 1.04 | 1.67 | 1.10 | 1.80 | 1.51 | -3.27 | 1.34 | 2.81 | 3.15 | 2.12 | 1.32 | 2.53 | 2.07 | 0.33 |
| EPS Growth % | -9.08% | -37.72% | 51.82% | -38.89% | 19.21% | 146.18% | -344.03% | -52.31% | -10.79% | 48.58% | 60.61% | -47.83% | 22.22% | 527.27% | - |
| EPS (Basic) | - | 1.05 | 1.69 | 1.11 | 1.84 | 1.56 | -3.27 | 1.35 | 2.82 | 3.17 | 2.12 | 1.34 | 2.59 | 2.10 | 0.33 |
| Diluted Shares Outstanding | 565.93M | 564.69M | 499.6M | 483.72M | 481.64M | 467.67M | 415.51M | 408.99M | 343.14M | 304.38M | 238.49M | 202.91M | 139.57M | 128.68M | 126.51M |
Interest rate volatility exposure
As reported in recent financial filings, Rithm Capital's revenue growth has exhibited significant quarterly variance, swinging from a 137.5% surge in 2024Q3 to a 18.1% contraction in 2025Q3, reflecting the inherent instability of a business model transitioning between mortgage servicing and diversified asset management fee streams.
The erratic top-line performance suggests that the company remains highly sensitive to market-driven fair value adjustments rather than consistent organic growth. Investors should monitor whether the integration of the Sculptor platform can eventually provide a more predictable, fee-based revenue floor to offset the cyclicality of the mortgage servicing rights portfolio.
Based on the provided income statement data, Rithm Capital experienced a notable contraction in NOI margins, which fell from a peak of 97.5% in 2023Q4 to 68.8% by 2026Q1, indicating that the cost of maintaining its operational platform is increasingly outpacing property-level and servicing-related income generation.
This margin degradation appears to reflect the rising operational intensity required to manage the company's expanded asset base and consumer finance platforms. The trend suggests that the firm's current cost structure may be less scalable than previously anticipated, potentially pressuring future profitability if revenue growth does not accelerate to compensate for these higher overheads.
According to the company's reported figures, FFO per share has demonstrated extreme inconsistency, ranging from a negative $0.12 in 2023Q4 to a high of $0.59 in 2025Q2, highlighting the difficulty in maintaining a stable earnings profile amidst the firm's ongoing strategic pivot toward alternative asset management.
The wide swings in FFO suggest that the company's earnings quality is heavily influenced by non-recurring items and fair value marks rather than core operational cash flow. This volatility warrants further investigation into the sustainability of the dividend, as the current payout ratio may be subject to significant pressure during periods of earnings contraction.
Financial statements indicate that Rithm Capital's reliance on fair value accounting for its MSR portfolio creates a disconnect between GAAP net income and actual cash generation, as evidenced by the sharp divergence between net income and FFO metrics observed across the last ten quarters of reporting.
The frequent use of non-cash adjustments makes it difficult to ascertain the underlying health of the business, as reported earnings may be artificially inflated or deflated by market-driven valuation changes. Analysts should remain skeptical of headline EPS figures and focus instead on distributable earnings to better understand the firm's true capacity to generate cash.
Quick answers to the most common questions about buying RITM stock.
For fiscal year 2025, Rithm Capital Corp. (RITM) reported total revenue of $5.69B. This represents a 13386.8% increase compared to $42.2M in 2012.
Rithm Capital Corp. (RITM) is profitable, generating $681.4M in net income for the fiscal year ending 2025 with a net profit margin of 12.0%.
Rithm Capital Corp. (RITM) reported an operating income of $2.53B, resulting in an operating profit margin of 44.6%. This margin reflects the operational efficiency of the business before interest and taxes.
Rithm Capital Corp. (RITM) generated $5.14B in gross profit for the year, representing a gross profit margin of 90.5%. This demonstrates the company's core pricing power and production efficiency.