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Rithm Capital RITM

Rithm Capital scores weak on business quality (1.4 of 10). Here is why, in plain words, and what our sealed record shows.

Last price$8.64Oct 10, 2026
Business qualityWeak
Next earningsNov 3, 2026, before the open
Insiders, 90 daysSelling

Why it matters

  1. What Rithm Capital does

    Rithm Capital manages mortgage servicing rights and originates residential loans, generating income from interest and fees paid by borrowers. The firm is expanding its asset management footprint through joint ventures like its recent partnership with DRA Advisors for office ownership.

  2. What it does best

    Rithm extracts yield from complex mortgage servicing rights, generating a gross margin of 67.7% that outpaces peers like NLY at 37.8%. This scale requires deep servicing platforms that are costly for rivals to replicate from scratch.

  3. The main risk

    Heavy reliance on debt-financed mortgage assets creates vulnerability, with total debt reaching $35.4B against $1.8B of cash. If mortgage defaults surge or liquidity tightens, servicing cash flows face severe compression.

Quality, check by check

Scored against its own industry, from company filings.

ProfitabilityWeak

Operating margins sit at 13.1% while FCF margins are deeply negative at negative 43.7%. Scale does not currently translate into efficient conversion of revenue to cash.

MoatWeak

The firm lacks a durable economic moat, ranking in the bottom quartile for sector growth and showing a meager 5.5% ROE. Rivals can easily compete for mortgage assets without proprietary locks.

GrowthSlow

Revenue growth is contracting at negative 6.4%, declining from previous annual levels and lagging the sector where it sits in the bottom decile at the 6th percentile.

Financial healthWeak

Debt-to-equity sits at 4.2x while free cash flow sits at negative $2.3B, driven by negative operating cash flow of $1.9B. The balance sheet is softening under heavy capital intensity.

Insiders

Executives and directors, from SEC Form 4 filings we read ourselves. Open market trades only; grants, option exercises and pre-planned sales left out.

1 sold $148K outside pre-planned sales.

Our sealed record on RITM

Verdicts appear here 30 days after we publish them; members see today's. Each one is in the nightly ledger, fingerprinted the night it was made.

The first sealed verdicts appear here on Oct 11, 2026.

Questions

Is RITM a good business?

Rithm Capital scores weak on the Cluenex quality check (1.4 of 10), measured against its own industry. Profitability is weak, moat weak, growth slow and financial health weak.

Are insiders buying RITM?

In the last 90 days of SEC Form 4 filings: 1 sold $148K outside pre-planned sales.

When does RITM report earnings?

Nov 3, 2026, before the open.

For members

See RITM today

  • Today's verdict on RITM, and why
  • Fair value with cautious, base and optimistic cases
  • The exact price that would change the verdict
  • Which stocks each signal names, the night it fires
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Cite this page: Cluenex, “Rithm Capital (RITM)”, https://cluenex.com/stocks/ritm/, data as of Oct 10, 2026.