Monitor the Q2 2026 EAD trajectory and management commentary on the earnings call for signs of stabilization. The maintained $0.25 dividend appears covered but the sequential EAD decline warrants caution; a dividend cut risk may emerge if EAD continues to fall.
Price Chart
Executive Summary
Rithm Capital reported Q1 2026 revenue of $1.38B, beating consensus of $1.27B, driven by strong origination and servicing performance. However, the key non-GAAP metric Earnings Available for Distribution (EAD) fell 31% sequentially to $0.51 per share, raising concerns about distributable earnings sustainability despite the top-line beat.
Key Financial Metrics
Key Facts
- GAAP net income $67.8M ($0.12/diluted share) vs $53.1M ($0.09) in Q4 2025
- Earnings Available for Distribution $289.6M ($0.51/diluted share) vs $418.9M ($0.74) in Q4 2025, down 31%
- Revenue $1.38B vs consensus $1.27B (beat +8.7%)
- Common dividend maintained at $0.25/share, covered by EAD of $0.51
- Book value per common share $12.51
- Newrez segment pre-tax operating income $273.7M (excluding MSR MTM), up from $249.1M in Q4 2025
Financial Impact
Revenue beat by ~$110M, but EAD declined by ~$129M sequentially; net impact mixed.
Risk Factors
- Sequential decline in distributable earnings may pressure dividend sustainability
- Exposure to interest rate changes and mortgage servicing rights fair value volatility
- High leverage and asset-liability mismatch in investment portfolio
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 4 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001556593-26-000018 |
| Document: 0001556593-26-000018-index.html | 0001556593-26-000018 |
| Document: 0001556593-26-000018.txt | 0001556593-26-000018 |
| 8-K Data (Synthetic) | 0001556593-26-000018 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 23, 2026 2d ago | Institutional Cluster | $9.27 | awaiting T+60 | — | $9.27 (+0.00%) |
Oct 23, 2026 3d ago | 8-K | $8.77 | awaiting T+60 | — | $9.27 (+5.64%) |
Jul 28, 2026 12w ago | 8-K | $9.78 $8.55 | ▼ −12.58% | ▼ −16.93% | $9.27 (−5.27%) |
May 12, 2026 23w ago | 8-K | $24.89 | awaiting T+60 | — | $9.27 (−62.78%) |
May 11, 2026 24w ago | 8-K | $24.90 | awaiting T+60 | — | $9.27 (−62.79%) |
Apr 28, 2026 25w ago | 8-K | $24.71 $25.19 | ▲ +1.93% | ▼ −2.06% | $9.27 (−62.51%) |
US Market Status
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