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RWT

Redwood Trust, Inc.

RWT

Redwood Trust, Inc. • NYSE
$5.51 ▲ 0.73% (+0.04)
Market Cap $725.65 M
52w High $7.24
52w Low $4.68
Dividend Yield 0.72%
P/E -6.56
Volume 539.67K
Outstanding Shares 131.70M

Income Statement

Period Revenue Operating Expense Net Income Net Profit Margin Earnings Per Share EBITDA
Q3-2025 $61.4M ▲ $38.7M ▲ $500K ▲ 0.814% ▲ $-0.074 ▲ $287.379M ▲
Q2-2025 $46.6M ▼ $36.983M ▼ $-98.5M ▼ -211.373% ▼ $-0.75 ▼ $179.279M ▼
Q1-2025 $73.848M ▲ $37.471M ▲ $16.147M ▲ 21.865% ▲ $0.098 ▲ $266.52M ▲
Q4-2024 $30.879M ▼ $32.532M ▼ $-6.618M ▼ -21.432% ▼ $-0.073 ▼ $0 ▼
Q3-2024 $69.722M $36.008M $14.826M 21.264% $0.091 $247.915M

Balance Statement

Period Cash & Short-term Total Assets Total Liabilities Total Equity
Q3-2025 $510.693M ▲ $22.601B ▲ $21.602B ▲ $999.014M ▼
Q2-2025 $416.478M ▼ $21.333B ▲ $20.28B ▲ $1.053B ▼
Q1-2025 $464.52M ▲ $19.872B ▲ $18.688B ▲ $1.183B ▼
Q4-2024 $456.639M ▼ $18.258B ▼ $17.07B ▼ $1.188B ▼
Q3-2024 $459.034M $18.427B $17.204B $1.223B

Cash Flow Statement

Period Net Income Cash From Operations Cash From Investing Cash From Financing Net Change Free Cash Flow
Q3-2025 $-7.704M ▲ $-2.668B ▼ $1.284B ▲ $1.266B ▲ $-118.037M ▼ $-2.668B ▼
Q2-2025 $-98.492M ▼ $-2.113B ▼ $979.077M ▲ $1.236B ▼ $101.751M ▲ $-2.113B ▼
Q1-2025 $16.147M ▲ $-1.953B ▼ $658.757M ▼ $1.327B ▲ $33.548M ▲ $-1.953B ▼
Q4-2024 $-6.618M ▼ $-853.984M ▲ $1.001B ▲ $-160.052M ▼ $-13.04M ▲ $-853.984M ▲
Q3-2024 $14.826M $-2.088B $635.624M $1.439B $-13.413M $-2.088B

Five-Year Company Overview

Income Statement

Income Statement Earnings have been very up‑and‑down over the past five years, which is common for a mortgage REIT but still worth noting. The business swung from heavy losses during stressed periods to strong profitability in 2021, then back to weakness, with 2023 roughly at breakeven. The most recent year shows a notable improvement in underlying operating performance and profit before interest, with only a modest amount actually dropping to the bottom line. This suggests the core engine is working better, but results remain sensitive to funding costs, credit marks, and market conditions. Overall, the trend is toward recovery, but with a history of volatility that points to ongoing risk in earnings quality and predictability.

Balance Sheet

Balance Sheet The balance sheet is large and highly leveraged, which is typical for a mortgage REIT but still increases sensitivity to funding markets and asset values. Assets and debt have both grown meaningfully over the period, while equity has only inched up, leaving a relatively thin capital cushion compared with the size of the portfolio. Cash on hand is modest relative to total assets, so the company depends heavily on access to secured funding and capital markets. In simple terms, the structure can amplify returns in good times but also magnify stress if credit spreads widen or financing tightens.

Cash Flow

Cash Flow Reported operating cash flow has been sharply negative in most years, mirroring the pattern of a finance company that is actively growing or repositioning its loan and securities portfolios. There is essentially no traditional capital expenditure; all the cash movement is tied to buying and selling mortgage assets and managing funding. This means free cash flow is consistently negative, but that does not map neatly to health or distress the way it would for an industrial company. Still, it highlights a reliance on external financing and securitizations to support the business model and any balance‑sheet expansion.

Competitive Edge

Competitive Edge Redwood occupies a specialized niche in non‑agency mortgage finance, with a long track record in private-label securitizations and investor-focused loan products. Its platforms span jumbo mortgages, investor rental and bridge loans, and non‑traditional borrowers, giving it reach into segments that large banks and government agencies do not always serve well. The company benefits from deep relationships across lenders, investors, and capital partners, and from a flexible REIT structure that allows it to hold assets, originate loans, and issue securities. The flip side is that it competes in markets that can dry up quickly when rates move or credit fears rise, so its advantages are meaningful but tied closely to capital-market conditions.

Innovation and R&D

Innovation and R&D Innovation is a clear focus and a relative bright spot. Through its RWT Horizons venture arm, Redwood is investing in fintech, proptech, and data‑driven tools that can streamline underwriting, securitization, and property management. Efforts around blockchain for mortgage tracking, digital due diligence, and AI‑enabled analytics all aim to lower costs, speed decisions, and improve risk management. The company is also experimenting with newer product types, such as home equity investments and alternative-income mortgages, to reach underserved borrowers and investors. The payoff from these initiatives will take time to fully show up in results, but they suggest a forward‑looking culture in an industry that often moves slowly.

Summary

Redwood Trust is a specialized, innovation‑minded mortgage REIT with a history of volatile earnings, high leverage, and strong ties to the capital markets. Recent performance shows healthier underlying operations compared with the more turbulent years, though profits remain modest and sensitive to interest rates and credit conditions. The balance sheet structure can enhance returns but leaves limited room for error, making funding access and risk management critical. On the positive side, Redwood’s established franchises in non‑agency mortgages and investor lending, coupled with its venture‑backed technology initiatives, give it clear differentiation. Overall, this is a business with meaningful strengths in niche mortgage markets but one that is inherently exposed to macro swings and market liquidity, so results are likely to remain cyclical and occasionally volatile.

NEWS

November 17, 2025 · 5:23 PM UTC

Redwood Trust Prices $100 Million Senior Notes Offering

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October 29, 2025 · 4:15 PM UTC

Redwood Trust Reports Third Quarter 2025 Financial Results; Record Production Volumes Advance Transition to Core Operating Model

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October 15, 2025 · 4:15 PM UTC

Redwood Trust Announces Date of Third Quarter 2025 Financial Results Webcast and Conference Call

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