Company: RITM-PC
Filing Date: 2025-08-01
Form Type: 10-Q
Source: 0001556593-25-000024
Chunk: 43

Company: Rithm Capital Corp.
Filing Date: 2025-08-01
Form: 10-Q
Item: Item 2
Chunk 43
---
 loans and other.

Three months ended June 30, 2025 compared to the three months ended March 31, 2025

Total other income (loss) was $41.2 million for the three months ended June 30, 2025, compared to $7.9 million for the three months ended March 31, 2025. The quarter-over-quarter increase was primarily due to a (i) $10.2 million increase in gains from consolidated CFEs, (ii) $9.7 million change from losses to gains from public equities, (iii) $4.8 million decrease in loss on consumer loans and (iv) $6.0 million release of escrow net of reserves related to an acquisition in 2021.

Six months ended June 30, 2025 compared to the six months ended June 30, 2024

Total other income (loss) was $49.1 million for the six months ended June 30, 2025, compared to $121.8 million in the prior year. The year-over-year decrease was primarily due to a (i) $24.3 million change from net gains to net losses related to derivative and hedging instruments, (ii) $21.0 million decrease in mark-to-market on Excess MSRs and (iii) $28.2 million bargain purchase gain recognized during the  six months ended June 30, 2024 from the acquisition of Computershare Mortgage Services Inc. and certain affiliated companies (“Computershare”).

Income Tax Expense (Benefit)

Three months ended June 30, 2025 compared to the three months ended March 31, 2025

Income tax expense increased $12.3 million, which represents the net of a $15.1 million current tax expense decrease and $27.4 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.

Six months ended June 30, 2025 compared to the six months ended June 30, 2024

Income tax expense decreased $180.6 million, which represents the net of an $11.6 million increase in current tax expense and $192.2 million decrease in deferred tax expense. The decrease in deferred tax expense was primarily driven by a decrease in the fair value of MSRs held within taxable entities, partially offset by tax expense generated from increased