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EQUITY AND EARNINGS PER SHARE | 3 Months Ended
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Mar. 31, 2025
Earnings Per Share [Abstract] |
EQUITY AND EARNINGS PER SHARE | EQUITY AND EARNINGS PER SHARE Equity and Dividends Rithm Capital’s certificate of incorporation authorizes 2.0 billion shares of common stock, par value $0.01 per share, and 100.0 million shares of preferred stock, par value $0.01 per share. On August 5, 2022, Rithm Capital entered into a Distribution Agreement to sell shares of its common stock, par value $0.01 per share, having an aggregate offering price of up to $500.0 million, from time to time, through an “at-the-market” equity offering program (the “ATM Program”). During the three months ended March 31, 2025, 9.0 million shares of common stock were issued under the ATM Program. In February 2025, Rithm Capital’s board of directors renewed the Company’s stock repurchase program, authorizing the repurchase of up to $200.0 million of its common stock and $100.0 million of its preferred stock for the period from January 1, 2025 through December 31, 2025. The objective of the stock repurchase program is to seek flexibility to return capital when deemed accretive to stockholders. Repurchases can be made from time to time through open market purchases or privately negotiated transactions, pursuant to one or more plans established pursuant to Rule 10b5-1 under the Securities Exchange Act of 1934 or by means of one or more tender offers, in each case, as permitted by securities laws and other legal requirements. During the three months ended March 31, 2025, the Company did not repurchase any shares of its common stock and redeemed 2,000,000 shares of its 7.50% Series A Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock for $50.0 million at a redemption price equal to $25.00 per share plus accumulated and unpaid distributions. On September 24, 2024, in a public offering, Rithm Capital issued 30.0 million shares of its common stock at a par value of $0.01 per share for gross proceeds of $340.2 million, before deducting estimated offering costs. Purchases and sales of Rithm Capital’s securities by the Company’s officers and directors are subject to the Rithm Capital Corp. Insider Trading Compliance Policy. The table below summarizes the Company’s outstanding preferred shares:
|  | Number of Shares |  | Liquidation Preference(A) |  |  |  |  |  | Dividends Declared per Share
|  | March 31, 2025 |  | December 31, 2024 |  | March 31, 2025 |  | December 31, 2024 |  | Issuance Discount |  | Carrying Value(C) |  | Three Months Ended March 31, |  |
Series(B) |  |  |  |  |  |  |  | 2025 |  | 2024 |  |  |  |  |  |
Series A, issued July 2019(D)(F)(H) |  | 4,200,068 |  |  | 6,200,068 |  |  | $ | 105,002 |  |  | $ | 155,002 |  |  | 3.15 | % |  | $ | 99,822 |  |  | $ | 0.64 |  |  | $ | 0.47 |  |  |  |  |  |  |
Series B, issued August 2019(D)(F) |  | 11,260,712 |  |  | 11,260,712 |  |  | 281,518 |  |  | 281,518 |  |  | 3.15 | % |  | 272,654 |  |  | 0.63 |  |  | 0.45 |  |  |  |  |  |  |
Series C, issued February 2020(D)(G) |  | 15,903,342 |  |  | 15,903,342 |  |  | 397,584 |  |  | 397,584 |  |  | 3.15 | % |  | 385,289 |  |  | 0.59 |  |  | 0.40 |  |  |  |  |  |  |
Series D, 7.00% issued September 2021(E) |  | 18,600,000 |  |  | 18,600,000 |  |  | 465,000 |  |  | 465,000 |  |  | 3.15 | % |  | 449,489 |  |  | 0.44 |  |  | 0.44 |  |  |  |  |  |  |
Total |  | 49,964,122 |  |  | 51,964,122 |  |  | $ | 1,249,104 |  |  | $ | 1,299,104 |  |  |  |  | $ | 1,207,254 |  |  | $ | 2.30 |  |  | $ | 1.76 |  |  |  |  |  |  |
(A)Each series has a liquidation preference or par value of $25.00 per share. (B)Under certain circumstances upon a change of control, our Series A, Series B, Series C and Series D are convertible to shares of our common stock. (C)Carrying value reflects par value less discount and issuance costs. (D)Fixed-to-floating rate cumulative redeemable preferred. (E)Fixed-rate reset cumulative redeemable preferred. (F)Effective August 15, 2024, dividends on the Series A and Series B accumulate at a floating rate. For the first quarter 2025 dividends, the Series A accrued dividends at a percentage of the $25.00 liquidation preference per share of the Series A equal to a three-month Chicago Mercantile Exchange (“CME”) SOFR, plus a spread adjustment of 0.261%, plus a spread of 5.802% and dividends on the Series B accumulated at a percentage of the $25.00 liquidation preference per share of the Series B preferred shares equal to a three-month CME SOFR, plus a spread adjustment of 0.261%, plus a spread of 5.640%. (G)Effective February 15, 2025, dividends on the Series C accumulate at a floating rate. For the first quarter 2025 dividends, the Series C accrued dividends at a percentage of the $25.00 liquidation preference per share of the Series C equal to a three-month CME SOFR, plus a spread adjustment of 0.261%, plus a spread of 4.969%. (H)The Company redeemed 2.0 million shares on the redemption date of March 28, 2025. On March 21, 2025, Rithm Capital’s board of directors declared first quarter 2025 preferred dividends of $0.64 per share of Series A, $0.63 per share of Series B, $0.59 per share of Series C and $0.44 per share of Series D cumulative redeemable preferred stock, or approximately $2.7 million, $7.1 million, $9.4 million and $8.1 million, respectively. Common dividends have been declared as follows:
|  |  |  | Per Share |  |
Declaration Date |  | Payment Date |  | Quarterly Dividend |  | Total Amounts Distributed (millions)
March 20, 2024 |  | April 2024 |  | $ | 0.25 |  |  | $ | 120.9 |
June 18, 2024 |  | July 2024 |  | 0.25 |  |  | 122.4 |
September 20, 2024 |  | November 2024 |  | 0.25 |  |  | 129.9 |
December 16, 2024 |  | January 2025 |  | 0.25 |  |  | 130.2 |
March 21, 2025 |  | April 2025 |  | 0.25 |  |  | 132.5 |
Warrants of Consolidated SPAC At the time of IPO in February 2025, the SPAC issued 220,000 warrants to the Sponsor and 7,666,667 warrants to third parties. The warrants become exercisable 30 days after the consummation of a Business Combination (as defined in the Warrant Agreement) and will expire five years following such consummation, or earlier upon redemption or liquidation. The initial exercise price per share of each warrant is $11.50. The warrants are subject to other customary terms common for instruments of this type. The Company eliminates the SPAC warrants it holds in consolidation. Such warrants are indexed to the SPAC's Class A ordinary shares and meet conditions for equity classification. Accordingly, the SPAC warrants are classified as equity and accounted for as a component of additional paid-in capital at the time of issuance on the Company's consolidated balance sheets. Earnings Per Share Rithm Capital is required to present both basic and diluted earnings per share (“EPS”). Basic EPS is calculated by dividing net income by the weighted average number of shares of common stock outstanding for the period. Diluted EPS is calculated using the treasury stock method by dividing net income by the weighted average number of shares of common stock outstanding plus the additional dilutive effect, if any, of common stock equivalents during each period. The effect of dilutive securities is presented net of tax. The following table summarizes the basic and diluted EPS calculations:
|  | Three Months Ended March 31, |  |
|  | 2025 |  | 2024 |  |  |  |  |  |
Net Income |  | $ | 80,710 |  |  | $ | 287,487 |  |  |  |  |  |  |
Noncontrolling interests in income of consolidated subsidiaries |  | 1,086 |  |  | 3,452 |  |  |  |  |  |  |
Redeemable noncontrolling interests in income of consolidated subsidiaries |  | 813 |  |  | — |  |  |  |  |  |  |
Net Income Attributable to Rithm Capital Corp. |  | 78,811 |  |  | 284,035 |  |  |  |  |  |  |
Change in redemption value of redeemable noncontrolling interests |  | 15,611 |  |  | — |  |  |  |  |  |  |
Dividends on preferred stock |  | 26,677 |  |  | 22,395 |  |  |  |  |  |  |
Net Income Attributable to Common Stockholders |  | $ | 36,523 |  |  | $ | 261,640 |  |  |  |  |  |  |
Basic weighted average shares of common stock outstanding |  | 524,104,842 |  | 483,336,777 |  |  |  |  |  |
Effect of Dilutive Securities(A)(B): |  |  |  |  |  |  |  |  |  |
Stock options |  | 149 |  | 897,800 |  |  |  |  |  |
Restricted stock |  | 170,438 |  | 274,754 |  |  |  |  |  |
Time-based RSU awards |  | 2,842,044 |  | 816,310 |  |  |  |  |  |
Performance-based RSU awards |  | 2,050,152 |  | 605,860 |  |  |  |  |  |
Time vesting Class B Profit Units |  | 472,973 |  | — |  |  |  |  |  |
Performance vesting Class B Profit Units |  | 958,957 |  | — |  |  |  |  |  |
Diluted Weighted Average Shares of Common Stock Outstanding |  | 530,599,555 |  | 485,931,501 |  |  |  |  |  |
Basic Earnings per Share Attributable to Common Stockholders |  | $ | 0.07 |  |  | $ | 0.54 |  |  |  |  |  |  |
Diluted Earnings per Share Attributable to Common Stockholders |  | $ | 0.07 |  |  | $ | 0.54 |  |  |  |  |  |  |
(A)Certain stock options that could potentially dilute basic EPS in the future were not included in the computation of diluted EPS for the periods where they were out-of-the-money or a loss has been recorded, because they would have been anti-dilutive for the period presented. (B)Awards related to stock-based compensation were included to the extent dilutive and issuable under the relevant time and/or performance measures.

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