Company: RITM-PC
Filing Date: 2025-10-31
Form Type: 10-Q
Source: 0001556593-25-000033
Chunk: 420

Company: Rithm Capital Corp.
Filing Date: 2025-10-31
Form: 10-Q
Item: Item 8
Chunk 420
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, consumer loans, residential transition loans and other.

Three months ended September 30, 2025 compared to the three months ended June 30, 2025

Total other income (loss) was $70.2 million for the three months ended September 30, 2025, compared to $41.2 million for the three months ended June 30, 2025. The quarter-over-quarter increase was primarily due to a $33.7 million change from losses to gains on consumer loans, partially offset by a $4.0 million decrease in gains from public equity investments.

Nine months ended September 30, 2025 compared to the nine months ended September 30, 2024

Total other income (loss) was $119.4 million for the nine months ended September 30, 2025, compared to $158.7 million in the prior year. The year-over-year decrease was primarily due to a (i) $19.9 million change from net gains to net losses related to derivative and hedging instruments, (ii) a $25.4 million decrease in gains from consolidated entities, and (iii) a $28.2 million bargain purchase gain recognized during the nine months ended September 30, 2024 from the acquisition of Computershare Mortgage Services Inc. and certain affiliated companies (“Computershare”). The total other income decrease was partially offset by (i) a $68.8 million shift from losses to gains on consumer loans driven by stronger performance and (ii) a $17.9 million increase in income from equity method investments driven by portfolio growth and performance.

Income Tax Expense (Benefit)

Three months ended September 30, 2025 compared to the three months ended June 30, 2025

Income tax expense increased $19.7 million, which represents the net of a $1.9 million current tax expense increase and $17.7 million deferred tax benefit decrease. The change in deferred tax benefit was primarily driven by changes in the fair value of MSRs held within taxable entities. Current tax expense is driven primarily by income from foreign operations.

Nine months ended September 30, 2025 compared to the nine months ended September 30, 2024

Income tax expense decreased $94.1 million, which represents the net of a $14.2 million increase in current tax expense and $108.3 million decrease in deferred tax expense. The decrease in deferred tax expense was primarily driven by a decrease in the fair value of MS