Rithm Capital Corp. Q1 FY2026 earnings call

Credit markets: Activity levels robust, well-positioned to deploy capital, low software exposure, no notable credit defaults, no systemic risk in private credit. Asset management: Sculptor and Crestline as complementary strategies, global investors. Real estate: Elacor rebranded, New York ~93% leased, San Francisco active due to AI boom. Genesis Capital: Best quarter but won't sacrifice credit for production. New Res Mortgage:优异季度表现, 2026 strategy focuses on revenue growth and expense reduction. Investment portfolio: Active in non-QM business.

Asset management: Sculptor Real Estate Fund 5 committed $1 billion in Q1 2026 loans, Sculptor had gross inflows of $600 million, ending Q1 with $37 billion AUM; Crestline overall performance excellent, management fee revenue grew 16% y-o-y; Genesis Capital had best quarter in history, did $1.6 billion in Q1, added 118 new sponsors; New Res Mortgage servicing portfolio ended Q1 ~$850 billion, funded volume $15.5 billion, pre-tax income $274 million, 19% annualized operating ROE; Investment portfolio active in non-QM business, $2 billion securitization, $3 billion investment in mortgage assets, $6.67 billion purchase of home improvement loans since Q3.

Genesis Capital expects $6.5 - $7 billion production in 2026, $150 - $175 million EBITDA; New Res Mortgage to drive returns through revenue growth and operating expense reduction; Asset management to continue deploying capital to take advantage of market dislocations and expect asset management business growth to enhance FRE and company valuation.

Private credit retail products have education issues, some have redemption limits; Software exposure may affect institutional investor demand; Bank capital rule changes may impact mortgage and servicing markets; Consumer sentiment and policy changes may affect Genesis Capital business.

Q: Crispin Love asked about fundraising momentum in asset management business and simplifying the story.

A: Sculptor raised $4.6 billion, ABF adoption high, mortgage company story to be simplified, asset management business growth to separate from REIT.

Q: Bose George asked about gain on sale margin in New Res Mortgage.

A: Mix of factors, normalized margins.

Q: Doug Harder asked about ELICOR bringing in third-party capital.

A: Closed deal in Dec, created $40 million savings, doing JV relationships.

Q: Marissa Lobo asked about Genesis Capital construction loans.

A: Diligent underwriting, no real change in credit discipline.

Q: Trevor Cranston asked about bank capital rule changes impact.

A: Should help MBS market, banks likely to come back.

Q: Kenneth Lee asked about New Res Mortgage AI benefits and Crestline institutional investor demand.

A: AI benefits materialize in third quarter, institutional demand still exists for direct lending.

Q: Henry Coffee asked about business performance and depreciation.

A: Depreciation includes Elacor and Adore portfolio, Adore portfolio sold down retail.