Rithm Capital Corp.RITM

Rithm Capital Corp. Goodwill & Intangibles Disclosure

10-KFiled Feb 19, 20263 min read
GOODWILL AND INTANGIBLE ASSETS
As a result of acquisitions, the Company recognized intangible assets in the form of management contracts, customer relationships, purchased technology, trademarks and trade names, licenses and VOBA. The Company also recognized goodwill on certain acquisitions. Goodwill is presented within other assets on the consolidated balance sheets.

The following table summarizes the carrying value of goodwill by reportable segment:
Origination and ServicingResidential Transitional LendingAsset ManagementTotal
Balance at December 31, 2023$29,468 $55,731 $46,658 $131,857 
Impairment loss— — — — 
Measurement period adjustments (Note 3)
— — 1,975 1,975 
Balance at December 31, 202429,468 55,731 48,633 133,832 
Goodwill acquired— — 182,811 182,811 
Impairment loss— — — — 
Balance at December 31, 2025$29,468 $55,731 $231,444 $316,643 
Intangible Assets

The following table summarizes the acquired identifiable intangible assets:
December 31,
Estimated Useful Lives (Years)20252024
Gross Intangible Assets:
Management contracts
2 to 11
$347,415 $275,000 
Customer relationships
2 to 9
79,753 79,753 
Purchased technology
3 to 7
113,606 105,567 
Trademarks / Trade names(A)
1 to 11
13,999 10,259 
VOBA(B)
(B)2,401 — 
LicensesIndefinite27,084 21,365 
584,258 491,944 
Accumulated Amortization:
Management contracts58,420 30,940 
Customer relationships42,437 25,773 
Purchased technology106,171 97,259 
Trademarks / Trade names7,231 6,023 
214,259 159,995 
Intangible Assets, Net:
Management contracts288,995 244,060 
Customer relationships37,316 53,980 
Purchased technology7,435 8,308 
Trademarks / Trade names(A)
6,768 4,236 
VOBA(B)
2,401 — 
Licenses27,084 21,365 
Intangible Assets, Net$369,999 $331,949 
(A)Includes indefinite-lived intangible assets of $1.9 million as of December 31, 2025 and 2024.
(B)VOBA, an actuarial intangible asset arising from the Crestline Acquisition, is amortized on a basis consistent with the related policyholder liabilities over the remaining life of each contract.

The Company did not record any impairment loss on its intangible assets for the years ended December 31, 2025, 2024 and 2023.

The following table summarizes the amortization expense recorded by the Company related to its intangible assets. Amortization expense related to intangible assets is included in general and administrative in the consolidated statements of operations.
Year Ended December 31,
202520242023
Amortization expense$50,684 $79,817 $32,596 

The following table summarizes the expected future amortization expense for intangible assets as of December 31, 2025:
Year EndingAmortization Expense
2026$54,866 
202751,158 
202850,186 
202948,281 
203039,005 
2031 and thereafter
97,544 
$341,040 
Intangible Liabilities

The following table summarizes the acquired identifiable intangible liabilities recognized as a result of the Paramount acquisition on December 19, 2025:
Weighted-Average Useful Lives (Years)Year Ended December 31, 2025
Below-market leases
7.8
$125,760 
Accumulated amortization604 
Intangible Liabilities, Net$125,156 

The following table summarizes the amortization expense recorded by the Company related to its intangible liabilities. Amortization related to below-market leases is included in rental revenue, a component of other revenues in the consolidated statements of operations.
Year Ended December 31, 2025
Amortization expense$604 

The following table summarizes the expected future amortization for intangible liabilities as of December 31, 2025:
Year EndingAmortization
2026$17,793 
202717,657 
202815,803 
202913,715 
203011,884 
2031 and thereafter
48,304 
$125,156 

In connection with the Paramount Acquisition, the Company recognized intangible assets related to in-place leases and above-market leases, which are presented in real estate, net in the consolidated balance sheets. See Note 9 for further details.

Historical Timeline

Fiscal YearFiled
2025Feb 19, 2026Showing above
2024Feb 18, 2025
2023Feb 20, 2024
2022Feb 17, 2023

About Goodwill & Intangibles Disclosures

Goodwill and intangible asset disclosures reveal the premium paid in acquisitions and how management assesses whether that premium retains its value. Since goodwill is no longer amortized under US GAAP, the annual impairment test is the only mechanism that adjusts carrying values downward — making the assumptions behind that test critically important for investors.

Key signals: a history of goodwill impairments suggests management consistently overpays for acquisitions. Watch the gap between reporting unit fair value and carrying amount — when fair value exceeds carrying amount by less than 10-20%, a small decline in business performance could trigger a write-down. For finite-lived intangibles, examine useful life assumptions across customer relationships, technology, and trade names; aggressive estimates inflate near-term earnings. Compare total intangibles-to-total-assets ratios against peers to assess acquisition dependency. Rising goodwill as a percentage of equity can signal balance sheet fragility.

Other Available Disclosures

Income TaxesRevenueEarnings Per ShareFair ValuePP&ELeasesSegmentsDebtCommitmentsStock CompensationNew Standards